Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Feb. 24, 2014 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'UNITED BANCSHARES INC /PA | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000944792 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 1,068,588 |
Entity Public Float | $0 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Incorporation, Date of Incorporation | 8-Apr-93 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ' | ' |
Cash and due from banks | $2,340,002 | $2,363,166 |
Interest-bearing deposits with banks | 306,776 | 306,033 |
Federal funds sold | 3,143,000 | 7,567,000 |
Cash and cash equivalents | 5,789,778 | 10,236,199 |
Investment securities: | ' | ' |
Available-for-sale, at fair value | 9,579,979 | 1,027,293 |
Held-to-maturity, at amortized cost (fair value of $12,485,687 at December 31, 2012) | ' | 11,895,037 |
Loans held for sale, at fair value | 1,645,832 | ' |
Loans, net of unearned discounts and deferred fees ($446,523 at fair value at December 31, 2013) | 42,710,625 | 41,501,555 |
Less allowance for loan losses | -839,133 | -1,203,942 |
Net loans | 41,871,492 | 40,297,613 |
Bank premises and equipment, net | 649,159 | 562,729 |
Accrued interest receivable | 256,262 | 309,971 |
Other real estate owned | 433,087 | 775,407 |
Intangible assets | 0 | 135,733 |
Prepaid expenses and other assets | 525,466 | 375,524 |
Total assets | 60,751,055 | 65,615,506 |
Liabilities: | ' | ' |
Demand deposits, noninterest-bearing | 14,526,988 | 14,324,970 |
Demand deposits, interest-bearing | 14,131,452 | 15,526,344 |
Savings deposits | 12,988,388 | 14,239,216 |
Time deposits, under $100,000 | 6,683,499 | 7,243,593 |
Time deposits, $100,000 and over | 8,779,518 | 9,642,620 |
Total deposits | 57,109,845 | 60,976,743 |
Accrued interest payable | 12,722 | 30,500 |
Accrued expenses and other liabilities | 418,604 | 368,278 |
Total liabilities | 57,541,171 | 61,375,521 |
Commitments and Contingencies (Notes 5, 10, and 14) | ' | ' |
Shareholders' equity: | ' | ' |
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 136,842 issued and outstanding | 1,368 | 1,368 |
Common stock, $0.01 par value; 2,000,000 shares authorized; 876,921 issued and outstanding | 8,769 | 8,769 |
Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value; 191,667 issued and outstanding | 1,917 | 1,917 |
Additional paid-in-capital | 14,749,852 | 14,749,852 |
Accumulated deficit | -11,224,976 | -10,556,078 |
Accumulated other comprehensive (loss) income (net unrealized (loss) gain on available-for-sale securities) | -327,046 | 34,157 |
Total shareholders' equity | 3,209,884 | 4,239,985 |
Total liabilities and shareholders' equity | $60,751,055 | $65,615,506 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Held-to-maturity, fair value | $0 | $12,485,687 |
Loans, fair value | $446,523 | $0 |
Preferred stock, par value per share | $0.01 | $0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 136,842 | 136,842 |
Preferred stock, shares outstanding | 136,842 | 136,842 |
Preferred stock, noncumulative dividend rate | 6.00% | 6.00% |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, shares issued | 876,921 | 876,921 |
Common stock, shares outstanding | 876,921 | 876,921 |
Class B Non-voting common stock | ' | ' |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 191,667 | 191,667 |
Common stock, shares outstanding | 191,667 | 191,667 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Interest income: | ' | ' |
Interest and fees on loans | $2,609,683 | $2,627,890 |
Interest on investment securities | 274,005 | 439,166 |
Interest on federal funds sold | 14,111 | 17,074 |
Interest on time deposits with other banks | 752 | 642 |
Total interest income | 2,898,551 | 3,084,772 |
Interest expense: | ' | ' |
Interest on time deposits | 48,573 | 83,300 |
Interest on demand deposits | 28,319 | 48,447 |
Interest on savings deposits | 6,710 | 7,118 |
Total interest expense | 83,602 | 138,865 |
Net interest income | 2,814,949 | 2,945,907 |
Provision for loan losses | 75,137 | 453,000 |
Net interest income after provision for loan losses | 2,739,812 | 2,492,907 |
Noninterest income: | ' | ' |
Customer service fees | 403,349 | 400,162 |
ATM fee income | 259,751 | 318,503 |
Loan syndication fee income | 153,300 | 145,000 |
Net loss on sale of other real estate | -7,528 | -8,273 |
Gain on sale of bank premises | ' | 526,990 |
Gain on sale of investment securities | 378,248 | ' |
Net change in fair value of financial instruments | 153,959 | ' |
Gain on sale of loans | ' | 69,163 |
Other income | 65,998 | 73,194 |
Total noninterest income | 1,407,077 | 1,524,739 |
Noninterest expense: | ' | ' |
Salaries, wages and employee benefits | 1,569,087 | 1,554,497 |
Occupancy and equipment | 991,560 | 1,066,031 |
Office operations and supplies | 295,876 | 304,946 |
Marketing and public relations | 102,441 | 73,448 |
Professional services | 340,054 | 317,880 |
Data processing | 451,833 | 472,737 |
Loan and collection costs | 103,382 | 107,072 |
Other real estate owned, net | 211,764 | 348,908 |
Deposit insurance assessments | 136,652 | 114,786 |
Other operating | 613,138 | 673,588 |
Total noninterest expense | 4,815,787 | 5,033,893 |
Net loss before income taxes | -668,898 | -1,016,247 |
Provision for income taxes | ' | ' |
Net loss | -668,898 | -1,016,247 |
Net loss per common share-basic and diluted | ($0.63) | ($0.95) |
Weighted average number of common shares | 1,068,588 | 1,068,588 |
Comprehensive Loss | ' | ' |
Net loss | -668,898 | -1,016,247 |
Unrealized losses on available for sale securities | -361,203 | -4,684 |
Total comprehensive loss | ($1,030,101) | ($1,020,931) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Series A preferred stock | Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated comprehensive income (loss) | Total |
Equity Balance, beginning of period, Value at Dec. 31, 2011 | $1,368 | $10,686 | $14,749,852 | ($9,539,831) | $38,841 | $5,260,916 |
Equity Balance, beginning of period, Shares at Dec. 31, 2011 | 136,842 | 1,068,588 | ' | ' | ' | ' |
Net loss | ' | ' | ' | -1,016,247 | ' | -1,016,247 |
Other comprehensive loss, net of tax | ' | ' | ' | ' | -4,684 | -4,684 |
Equity Balance, end of period, Value at Dec. 31, 2012 | $1,368 | $10,686 | $14,749,852 | ($10,556,078) | $34,157 | $4,239,985 |
Equity Balance, end of period, Shares at Dec. 31, 2012 | 136,842 | 1,068,588 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($668,898) | ($1,016,247) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Provision for loan losses | 75,137 | 453,000 |
Net loss on sale of other real estate | 7,528 | 8,273 |
Gain on sale of loans | ' | -69,163 |
Gain on sale of securities | -378,248 | ' |
Gain on sale of bank premises | ' | -526,990 |
Amortization of premiums on investments | 58,418 | 117,544 |
Amortization of core deposit intangible | 135,733 | 178,078 |
Depreciation on fixed assets | 152,659 | 220,281 |
Write-down of other real estate owned | 157,406 | 232,298 |
SBA loans originated for sale | -1,491,873 | ' |
Net change in fair value of financial instruments | -153,959 | ' |
Decrease in accrued interest receivable and other assets | 81,671 | 122,372 |
(Decrease) increase in accrued interest payable and other liabilities | 32,548 | -56,769 |
Net cash used in operating activities | -1,991,878 | -337,323 |
Cash flows from investing activities: | ' | ' |
Purchase of available-for-sale investment securities | -7,699,811 | ' |
Purchase of held-to-maturity investment securities | ' | -5,110,337 |
Proceeds from maturity and principal reductions of available-for-sale investment securities | 3,091,040 | 244,186 |
Proceeds from maturity and principal reductions of held-to-maturity investment securities | ' | 10,311,762 |
Proceeds from sale of available-for sale investment securities | 7,731,846 | ' |
Proceeds from sale of other real estate owned | 177,386 | 425,528 |
Net increase in loans | -1,649,017 | -841,001 |
Proceeds from sale of loans | ' | 637,621 |
Proceeds from sale of bank premises | ' | 874,943 |
Purchase of bank premises and equipment | -239,089 | -142,793 |
Net cash provided by investing activities | 1,412,355 | 6,399,909 |
Cash flows from financing activities: | ' | ' |
Net decrease in deposits | -3,866,898 | -10,323,715 |
Net cash used in financing activities | -3,866,898 | -10,323,715 |
Net decrease in cash and cash equivalents | -4,446,421 | -4,261,130 |
Cash and cash equivalents at beginning of year | 10,236,199 | 14,497,329 |
Cash and cash equivalents at end of year | 5,789,778 | 10,236,199 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid during the year for interest | 101,380 | 166,726 |
Noncash transfer of loans to other real estate owned | ' | 157,116 |
Noncash transfer of investment securities from held-to-maturity to available-for-sale | $11,895,037 | ' |
1_Summary_of_Significant_Accou
1. Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
1. Summary of Significant Accounting Policies | ' | |||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
United Bancshares, Inc. (“the Company”) is the holding company for United Bank of Philadelphia (the “Bank”). The Company was incorporated under the laws of the Commonwealth of Pennsylvania on April 8, 1993 and provides financial services through the Bank. | ||||
Principles of Consolidation | ||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany transactions and balances have been eliminated. | ||||
Management’s Use of Estimates | ||||
The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities and consideration of impairment of other intangible assets. | ||||
Marketing and Advertising | ||||
Marketing and advertising costs are expensed as incurred. | ||||
Statement of Cash Flows | ||||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks that mature within 90 days and federal funds sold on an overnight basis. Changes in loans made to and deposits received from customers are reported on a net basis. | ||||
Securities | ||||
Bonds, notes, and debentures for which the Company has both the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investment securities that would be held for indefinite periods of time but not necessarily to maturity, including securities that would be used as part of the Bank’s asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors are classified as “Available for Sale.” These securities are carried at fair value, with any temporary unrealized gains or losses reported as a separate component of other comprehensive income, net of the related income tax effect. Gains and losses on the sale of such securities are accounted for on the specific identification basis in the statements of operations on the trade date. | ||||
If transfers between the available-for-sale and held-to-maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer. For securities transferred to available-for-sale from held-to-maturity, unrealized gains and losses as of the date of the transfer are recognized in accumulated other comprehensive loss as a separate component of shareholders’ equity. For securities transferred into the held-to-maturity portfolio from available-for-sale, unrealized gains and losses as of the date of the transfer continue to be reported in accumulated other comprehensive loss, and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount. | ||||
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value. Debt securities that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive income. In evaluating whether impairment is temporary or other-than-temporary, management first considers whether the Bank intends to sell the security or it is more-likely-than-not that the Bank will be required to sell the security prior to recovery. In these circumstances, the loss is determined to be other-than-temporary and the difference between the security’s fair value and its amortized cost is reflected as a loss in the statement of operations. If management does not intend to sell the security and likely will not be required to sell the security prior to forecasted recovery, management evaluates whether it expects to recover the entire amortized cost of the debt security or if there is a credit loss. In evaluating whether there is a credit loss, management considers various qualitative factors which include (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in the fair value, and (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events. If, based on an analysis of these factors, management concludes that there is a credit loss, then management calculates the expected cash flows and records a loss in earnings equal to the difference between the amortized cost of the debt security and the expected cash flows. The portion of the decline in fair value that is due to factors other than credit loss is recognized in other comprehensive income. No investment securities held by the Bank as of December 31, 2013 and 2012 were subjected to a write-down due to credit related other-than-temporary impairment. Interest income from securities adjusted for the amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the contractual lives of the related securities. Realized gains and losses, determined using the amortized cost value of the specific securities sold, are included in noninterest income in the statement of operations. | ||||
Transfers of Financial Assets | ||||
Transfers of financial assets are accounted for as sales when all the components meet the definition of a participating interest and when control over the assets has been surrendered. A participating interest generally represents (1) a proportionate (pro rata) ownership interest in an entire financial assets, (2) a relationship where from the date of transfer all cash flows received from the entire financial asset are divided proportionately among the participating interest holders in an amount equal to their share of ownership, (3) the priority of cash flows has certain characteristics, including no reduction in priority, subordination of interest, or recourse to the transferor other than standard representation or warranties, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. 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. | ||||
Loans Held for Sale | ||||
From time to time, the Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market. These loans are classified as held-for-sale and carried at estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. For the year ended December 31, 2013, the Bank recorded a net change in fair value of financial instruments of totaling approximately $154,000 related to the guaranteed portion of two SBA loans totaling approximately $1,492,000. | ||||
Loans | ||||
The Bank has both the positive intent and ability to hold the majority of its loans to maturity. These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses. Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount. It is the Bank’s policy to discontinue the accrual of interest income when a default of principal or interest exists for a period of 90 days except when, in management’s judgment, the loan is well collateralized and in the process of collection. Interest received on nonaccrual loans is either applied against principal or reported as interest income according to management’s judgment as to collectability of principal. When interest accruals are discontinued, unpaid accrued interest previously credited to income is reversed and the loan is classified as impaired. | ||||
Loans Held at Fair Value | ||||
From time to time, the Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market. Management has elected to carry these loans at fair value. Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries. | ||||
Non-accrual and Past Due Loans | ||||
Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due. The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more. If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||
Unearned discount is amortized over the weighted average maturity of the related mortgage loan portfolio. Loan origination and commitment fees and certain direct loan origination costs are deferred, and the net amount is amortized as an adjustment of the related loan’s yield. The Bank is amortizing these amounts over the contractual life of the loan. | ||||
For purchased loans, the discount remaining after the loan loss allocation is being amortized over the remaining life of the purchased loans using the interest method. | ||||
Allowance for Loan Losses | ||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses. Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance. When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition. Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance. | ||||
Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process. Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination. It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term. | ||||
The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Bank does not allocate reserves for unfunded commitments to fund lines of credit. | ||||
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank will identify and assess loans that may be impaired through any of the following processes: | ||||
· During regularly scheduled meetings of the Asset Quality Committee | ||||
· During regular reviews of the delinquency report | ||||
· During the course of routine account servicing, annual review, or credit file update | ||||
· Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable LTV ratio | ||||
Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | ||||
Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures. | ||||
Bank Premises and Equipment | ||||
Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Amortization of leasehold improvements is computed over the shorter of the related lease term or the useful life of the assets. | ||||
Income Taxes | ||||
The liability method is used in accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent on generating sufficient taxable income in the future. | ||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. It is the Bank’s policy to recognize interest and penalties related to unrecognized tax liabilities within income tax expense in the statement of operations. | ||||
The Bank does not have an accrual for uncertain tax positions as of December 31, 2013 or 2012, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. | ||||
Loss Per Share (“EPS”) | ||||
Basic EPS excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. | ||||
Off-Balance-Sheet Financial Instruments | ||||
In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the financial statements when they become payable. | ||||
Intangible Assets | ||||
On September 24, 1999, the Bank acquired four branches from First Union Corporation with deposits totaling $31.5 million. As a result of the acquisition, the Bank recorded a core deposit intangible of $2,449,488. The core deposit intangible was amortized over 14 years. | ||||
2013 | 2012 | |||
Core Deposit Premium (cost) | $2,449,488 | $2,449,488 | ||
Less accumulated amortization | -2,449,488 | -2,313,755 | ||
$- | $135,733 | |||
Amortization of the intangible totaled approximately $136,000 and $178,000 for the years ended December 31, 2013 and 2012, respectively, and is fully amortized at December 31, 2013. Intangible assets are reviewed for possible impairment when events or changed circumstances may affect the underlying basis of the net asset. Such reviews include an analysis of current results and take into consideration the discounted value of projected operating cash flows. No impairment has been recognized. | ||||
Other Real Estate Owned | ||||
Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value, net of estimated cost to sell, at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less the cost to sell. Revenue and expenses from operations and changes in valuation allowance are charged to operations. The Bank had approximately $433,000 and $775,000 in foreclosed real estate as of December 31, 2013 and 2012, respectively. | ||||
Segments | ||||
The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the other. For example, commercial lending is dependent upon the ability of the Bank to fund it with retail deposits and other borrowings and to manage interest rate and credit risk. This situation is also similar for consumer and residential mortgage lending. Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. | ||||
Reclassifications | ||||
Certain reclassifications have been made to the prior years’ financial statements to conform to the 2013 presentation, with no impact on earnings or shareholders’ equity. | ||||
Comprehensive Loss | ||||
Comprehensive loss includes net loss as well as certain other items that result in a change to equity during the period. The components of other comprehensive loss are as follows: | ||||
31-Dec-13 | ||||
Before tax | Tax | Net of tax | ||
amount | benefit | Amount | ||
Unrealized loss on securities: | ||||
Unrealized holding loss arising during period | ($539,109) | $177,906 | ($361,203) | |
Less: reclassification adjustment for gains (losses) | ||||
realized in net loss | - | - | - | |
Other comprehensive loss, net | ($539,109) | $177,906 | ($361,203) | |
31-Dec-12 | ||||
Before tax | Tax | Net of tax | ||
amount | benefit | Amount | ||
Unrealized loss on securities | ||||
Unrealized holding loss arising during period | ($6,990) | $2,307 | ($4,684) | |
Less: reclassification adjustment for gains (losses) | ||||
realized in net loss | - | - | - | |
Other comprehensive loss, net | ($6,990) | $2,307 | ($4,684) | |
Recent Accounting Pronouncements | ||||
In February 2013, the FASB issued an update (ASU 2013-02 – Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income) which requires entities to disclose, for items reclassified out of accumulated other comprehensive income (“AOCI”) and into net income in their entirety, the effect of the reclassification on each affected net income line item and, for AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required U.S. GAAP disclosures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2012; early adoption is allowed. The disclosures required by the adoption of this guidance in 2013 are included in the notes of these financial statements. | ||||
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in ASU 2013-11 include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this Update are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company is currently evaluating the impact of these amendments. | ||||
ASU 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan though completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments require interim and annual disclosure of both the amount of the foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact of this amendment. |
2_Cash_and_Due_From_Bank_Balan
2. Cash and Due From Bank Balances | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
2. Cash and Due From Bank Balances | ' |
2. CASH AND DUE FROM BANK BALANCES | |
The Bank maintains various deposit accounts with other banks to meet normal fund transaction requirements and to compensate other banks for certain correspondent services. The withdrawal or usage restrictions of these balances did not have a significant impact on the operations of the Bank as of December 31, 2013. Reserve balances were $100,000 as of December 31, 2013 and 2012. |
3_Investments
3. Investments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes | ' | ||||||||
3. Investments | ' | ||||||||
3. INVESTMENTS | |||||||||
The amortized cost, gross unrealized holding gains and losses, and estimated fair value of the available-for-sale and held-to-maturity investment securities by major security type at December 31, 2013 and 2012 are as follows: | |||||||||
(In 000’s) | 2013 | ||||||||
Gross | Gross | ||||||||
Amortized | Unrealized | unrealized | Fair | ||||||
Cost | Gains | losses | value | ||||||
Available-for-sale: | |||||||||
U.S. Government agency securities | $4,097 | $- | -295 | $3,802 | |||||
Government Sponsored Enterprises residential mortgage-backed securities | $5,841 | 36 | -228 | 5,649 | |||||
Investments in money market funds | 129 | - | - | 129 | |||||
$10,067 | $36 | ($523) | $9,580 | ||||||
2012 | |||||||||
Gross | Gross | ||||||||
Amortized | Unrealized | unrealized | Fair | ||||||
Cost | Gains | losses | Value | ||||||
Available-for-sale: | |||||||||
Government Sponsored Enterprises residential mortgage-backed securities | $847 | $51 | $- | $898 | |||||
Investments in money market funds | 129 | - | - | 129 | |||||
$976 | $51 | $- | $1,027 | ||||||
Held-to-maturity: | |||||||||
U.S. Government agency securities | $3,605 | $159 | ($4) | $3,760 | |||||
Government Sponsored Enterprises residential mortgage-backed securities | 8,290 | 437 | -1 | 8,726 | |||||
$11,895 | $596 | ($5) | $12,486 | ||||||
In 2013, $1,250,000 in U.S. Government agencies securities were called. There were no gross losses from these transactions during 2013. In 2012, $7,725,000 in U.S. Government agencies securities were called. There was $2,571 in gross losses from these transactions during 2012. | |||||||||
In May 2013, the Bank transferred its entire held to maturity portfolio to available for sale. This transfer was made to improve capital ratios and liquidity by allowing for the disposition of securities, if necessary. In May and June 2013, the Bank sold securities with a book value totaling approximately $7.4 million and recognized a gain of approximately $378,000. Proceeds from the sale were reinvested in replacement securities. No securities were sold during 2012. | |||||||||
The table below indicates the length of time individual securities held-to-maturity have been in a continuous unrealized loss position at December 31, 2013 (in thousands): | |||||||||
Number | Less than 12 months | 12 months or longer | Total | ||||||
Description of | of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||
Securities | securities | value | Losses | Value | Losses | value | losses | ||
U.S. Government | |||||||||
agency securities | 15 | $3,576 | ($270) | $225 | ($25) | $3,801 | $(295 | ) | |
Mortgage backed | |||||||||
securities | 21 | $4,777 | ($228) | «R7JPASLX»$]- | $- | $4,777 | $(228 | ) | |
Total temporarily | |||||||||
impaired investment | |||||||||
securities | 36 | $8,353 | ($498) | $225 | ($25) | $8,578 | $(523 | ) | |
The table below indicates the length of time individual securities held-to-maturity have been in a continuous unrealized loss position at December 31, 2012 (in thousands): | |||||||||
Number | Less than 12 months | 12 months or longer | Total | ||||||
Description of | of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||
Securities | securities | value | Losses | Value | Losses | value | Losses | ||
U.S. Government | |||||||||
agency securities | 3 | $746 | ($4) | $- | $- | $746 | ($4) | ||
Mortgage backed | |||||||||
securities | 2 | $253 | ($1) | $- | $- | $253 | ($1) | ||
Total temporarily | |||||||||
impaired investment | |||||||||
securities | 5 | $999 | ($5) | $- | $- | $999 | ($5) | ||
U.S. Government and Agency Securities. Unrealized losses on the Company’s investments in direct obligations of U.S. government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2013 and 2012. | |||||||||
Residential Government Sponsored Enterprise Mortgage-Backed Securities. Unrealized losses on the Company’s investment in government sponsored enterprise mortgage-backed securities were caused by interest rate increases. The Company purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2013 and 2012. | |||||||||
The Company has a process in place to identify debt securities that could potentially have a credit impairment that is other than temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. On a quarterly basis, we review all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. The Company considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value. | |||||||||
Maturities of investment securities classified as available-for-sale at December 31, 2013 were as follows. Expected maturities may differ from contractual maturities because the underlying mortgages supporting mortgage backed securities may be prepaid without any penalties. Consequently, mortgage-backed securities are not presented by maturity category. | |||||||||
(In 000’s) | |||||||||
Amortized | Fair | ||||||||
Cost | Value | ||||||||
Available-for-sale: | |||||||||
Due in one year | $- | $- | |||||||
Due after one year through five years | - | - | |||||||
Due after five years through ten years | 4,097 | 3,802 | |||||||
Government-sponsored enterprises | 5,841 | 5,649 | |||||||
residential mortgage-backed securities | |||||||||
Total debt securities | 9,938 | 9,451 | |||||||
Investments in money market funds | 129 | 129 | |||||||
$10,067 | $9,580 | ||||||||
As of December 31, 2013 and 2012, investment securities with a carrying value of $7,210,399 and $10,041,655, respectively, were pledged as collateral to secure public deposits and contingent borrowing at the Discount Window. |
4_Loans_and_Allowance_For_Loan
4. Loans and Allowance For Loan Losses | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes | ' | |||||||
4. Loans and Allowance For Loan Losses | ' | |||||||
4. LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||
The composition of the net loans is as follows: | ||||||||
December 31, | December 31, | |||||||
(In 000's) | 2013 | 2012 | ||||||
Commercial and industrial: | ||||||||
Commercial | $1,658 | $1,462 | ||||||
SBA loans | 585 | 125 | ||||||
Asset-based | 2,067 | 2,147 | ||||||
Total commercial and industrial | 4,310 | 3,734 | ||||||
Commercial real estate: | ||||||||
Commercial mortgages | 17,343 | 14,720 | ||||||
SBA loans | 566 | 621 | ||||||
Construction | 2,456 | 3,398 | ||||||
Religious organizations | 12,597 | 12,642 | ||||||
Total commercial real estate | 32,962 | 31,381 | ||||||
Home equity loans | ||||||||
Home equity lines of credit | 1,176 | 1,453 | ||||||
1-4 family residential mortgages | 24 | 26 | ||||||
Home equity loans | 2,709 | 3,140 | ||||||
Total consumer real estate | 3,909 | 4,619 | ||||||
Total real estate | 36,871 | 36,000 | ||||||
Consumer and other: | ||||||||
Consumer installment | 16 | 30 | ||||||
Student loans | 1,366 | 1,588 | ||||||
Other | 148 | 150 | ||||||
Total consumer and other | 1,530 | 1,768 | ||||||
Loans, net | $42,711 | $41,502 | ||||||
At December 31, 2013 and 2012, unamortized net deferred fees totaled $100,962 and $107,803, respectively, and are included in the related loan accounts. At December 31, 2013 and 2012, the unearned discount totaled $27,182 and $29,660, respectively, and is included in the related loan accounts. | ||||||||
Loan Origination/Risk Management. The Bank has lending policies and procedures in place to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with periodic reports related to loan origination, asset quality, concentrations of credit, loan delinquencies and non-performing and emerging problem loans. Diversification in the portfolio is a means of managing risk with fluctuations in economic conditions. | ||||||||
Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate prudently to service the projected debt. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Bank’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable. The Bank may also seek credit enhancements for commercial and industrial loans from the Small Business Administration, Department of Transportation or other available programs. Generally, the Bank utilizes an advance formula for loans secured by eligible accounts receivable and other available programs to mitigate risk. | ||||||||
Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These loans are viewed as cash flow loans first and secondarily as loans secured by real estate. Commercial real estate loans typically have higher principal amounts and the repayment of these loans is dependent on the successful operation of property securing the loan or business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The Bank tracks the level of owner occupied versus non-owner occupied loans. Typically, owner-occupied real estate loans represent less risk for the Bank. | ||||||||
The Bank’s commercial real estate loans are largely concentrated in loans to religious organizations. These loans are generally made to these organizations are primarily for expansion and repair of church facilities (construction loans). The source of repayment is viewed as cash flow from tithes and offerings and secondarily as loans secured by real estate. | ||||||||
The Bank’s construction lending has primarily involved lending for construction of commercial properties although the Bank does lend funds for construction of single-family residences. Construction loans are underwritten utilizing feasibility studies, independent appraisals, analysis of lease rates, and the financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates can be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Loan proceeds are disbursed during the construction phase according to a draw schedule based on the stage of completion. Construction projects are inspected by contracted inspectors or bank personnel. These loans are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, regulations of real property, general economic conditions and the availability of long-term financing. | ||||||||
Consumer loans are underwritten after an analysis of the borrower’s past and present financial information including credit score, personal financial statements, tax returns and other information deemed necessary to calculate debt service ratios that determine the ability of a borrower to repay the loan. Minimum debt service ratios have been established by policy. Underwriting standards for home equity loans are also heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80% and documentation requirements. | ||||||||
The Bank performs an annual loan review by an independent third party firm that reviews and validates the credit risk program. The results of these reviews are presented to the board and management. The loan review process reinforces the risk identification and assessment decisions made by lenders and credit administration personnel, as well as the Bank’s policies and procedures. | ||||||||
Concentrations of Credit. The Bank’s loan portfolio is concentrated in commercial real estate and commercial and industrial loans. Approximately $16.5 million of these loans are secured by owner occupied commercial real estate as of December 31, 2013. The Bank continues to have a significant concentration in lending to religious organizations for which total loans at December 31, 2013 were $12.6 million, or 33.8%, of the commercial portfolio. | ||||||||
Related Party Loans. In the ordinary course of business, the Bank granted loans to certain directors, executive officers and there affiliates (collectively referred to as “related parties”). These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. Disaffiliations include directors who do not stand for re-election and are no longer affiliated with the Bank. Activity in related party loans is presented in the following table. | ||||||||
2013 | 2012 | |||||||
Balance outstanding at December 31, | $1,572,026 | $1,702,648 | ||||||
Principal additions | 65,800 | 30,000 | ||||||
Disaffiliations | -718,007 | - | ||||||
Principal reductions | (60,958 | -160,623 | ||||||
Balance outstanding at December 31, | $858,861 | $1,572,026 | ||||||
Non-accrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due. The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more. If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Interest on loans past due 90 days or more ceases to accrue except for loans that are well collateralized and in the process of collection. When a loan is placed on nonaccrual status, previously accrued and unpaid interest is reversed out of income. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||||||
An age analysis of past due loans, segregated by class of loans, as of December 31, 2013 is as follows: | ||||||||
(In 000's) | Accruing | |||||||
Loans | Loans 90 or | |||||||
30-89 Days | More Days | Total Past | Current | |||||
Past Due | Past Due | Nonaccrual | Due Loans | Loans | Total Loans | |||
Commercial and industrial: | ||||||||
Commercial | $- | $- | $444 | $444 | $1,214 | $1,658 | ||
SBA loans | - | - | 130 | 130 | 455 | 585 | ||
Asset-based | - | - | - | - | 2,067 | 2,067 | ||
Total Commercial and industrial | - | - | 574 | 574 | 3,736 | 4,310 | ||
Commercial real estate: | ||||||||
Commercial mortgages | 22 | 442 | 630 | 1,094 | 16,249 | 17,343 | ||
SBA loans | 184 | - | - | 184 | 382 | 566 | ||
Construction | - | - | - | - | 2,456 | 2,456 | ||
Religious organizations | - | - | 629 | 629 | 11,968 | 12,597 | ||
Total Commercial real estate | 206 | 442 | 1,259 | 1,907 | 31,055 | 32,962 | ||
Consumer real estate: | ||||||||
Home equity loans | 209 | 147 | 115 | 471 | 705 | 1,176 | ||
Home equity lines of credit | - | - | - | - | 24 | 24 | ||
1-4 family residential mortgages | 125 | - | 242 | 367 | 2,342 | 2,709 | ||
Total consumer real estate | 334 | 147 | 357 | 838 | 3,071 | 3,909 | ||
Total real estate | 540 | 589 | 1,616 | 2,745 | 34,126 | 36,871 | ||
Consumer and other: | ||||||||
Consumer installment | - | - | - | - | 16 | 16 | ||
Student loans | 87 | 141 | - | 228 | 1,138 | 1,366 | ||
Other | 5 | - | - | 5 | 143 | 148 | ||
Total consumer and other | 92 | 141 | - | 233 | 1,297 | 1,530 | ||
Total loans | $632 | $730 | $2,190 | $3,552 | $39,159 | $42,711 | ||
An age analysis of past due loans, segregated by class of loans, as of December 31, 2012 follows: | ||||||||
(In 000's) | Accruing | |||||||
Loans | Loans 90 or | |||||||
30-89 Days | More Days | Total Past | Current | |||||
Past Due | Past Due | Nonaccrual | Due Loans | Loans | Total Loans | |||
Commercial and industrial: | ||||||||
Commercial | $15 | $- | $873 | 888 | $574 | $1,462 | ||
SBA loans | - | - | - | - | 125 | 125 | ||
Asset-based | 83 | - | 99 | 182 | 1,965 | 2,147 | ||
Total Commercial and industrial | 98 | - | 972 | 1,070 | 2,664 | 3,734 | ||
Commercial real estate: | ||||||||
Commercial mortgages | 306 | - | 649 | 955 | 13,765 | 14,720 | ||
SBA loans | - | - | - | - | 621 | 621 | ||
Construction | - | - | - | - | 3,398 | 3,398 | ||
Religious organizations | - | - | 674 | 674 | 11,968 | 12,642 | ||
Total Commercial real estate | 306 | - | 1,323 | 1,629 | 29,752 | 31,381 | ||
Consumer real estate: | ||||||||
Home equity loans | 274 | 44 | 63 | 381 | 1,072 | 1,453 | ||
Home equity lines of credit | - | 26 | - | 26 | - | 26 | ||
1-4 family residential mortgages | 69 | - | 226 | 295 | 2,845 | 3,140 | ||
Total consumer real estate | 343 | 70 | 289 | 702 | 3,917 | 4,619 | ||
Total real estate | 649 | 70 | 1,612 | 2,331 | 33,669 | 36,000 | ||
Consumer and other: | ||||||||
Consumer installment | - | - | - | - | 30 | 30 | ||
Student loans | 87 | 141 | - | 228 | 1,360 | 1,588 | ||
Other | 5 | - | - | 5 | 145 | 150 | ||
Total consumer and other | 92 | 141 | - | 233 | 1,535 | 1,768 | ||
Total loans | $839 | $211 | $2,584 | $3,634 | $37,867 | $41,502 | ||
Impaired Loans. The Bank identifies a loan as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement. The Bank recognizes interest income on impaired loans under the cash basis when the collateral on the loan is sufficient to cover the outstanding obligation to the Bank. If these factors do not exist, the Bank will record interest payments on the cost recovery basis. | ||||||||
In accordance with guidance provided by ASC 310-10, Accounting by Creditors for Impairment of a Loan, management employs one of three methods to determine and measure impairment: the Present Value of Future Cash Flow Method; the Fair Value of Collateral Method; or the Observable Market Price of a Loan Method. To perform an impairment analysis, the Company reviews a loan’s internally assigned grade, its outstanding balance, guarantors, collateral, strategy, and a current report of the action being implemented. Based on the nature of the specific loans, one of the impairment methods is chosen for the respective loan and any impairment is determined, based on criteria established in ASC 310-10. | ||||||||
The Company makes partial charge-offs of impaired loans when the impairment is deemed permanent and is considered a loss. To date, these charge-offs have only included the unguaranteed portion of Small Business Administration (“SBA”) loans. Specific reserves are allocated to cover “other-than-permanent” impairment for which the underlying collateral value may fluctuate with market conditions. During the years ended December 31, 2013 and 2012, there were no partial charge-offs of impaired loans. | ||||||||
Consumer real estate and other loans are not individually evaluated for impairment, but collectively evaluated, because they are pools of smaller balance homogeneous loans. | ||||||||
Year-end 2013 impaired loans are set forth in the following table. | ||||||||
(In 000’s) | Unpaid | Recorded | Recorded | Total | Average | Interest | ||
Contractual | Investment | Investment | recognized | |||||
Principal | With No | With | Recorded | Related | Recorded | on impaired | ||
Balance | Allowance | Allowance | Investment | Allowance | Investment | loans | ||
Commercial and industrial: | ||||||||
Commercial | $444 | $47 | $397 | $444 | $330 | $446 | $- | |
SBA loans | 48 | - | 48 | 48 | 48 | 49 | 1 | |
Asset-based | - | - | - | - | - | - | - | |
Total Commercial and industrial | 492 | 47 | 445 | 492 | 378 | 495 | 1 | |
Commercial real estate: | ||||||||
Commercial mortgages | 630 | 630 | - | 630 | - | 579 | - | |
SBA Loans | 130 | 130 | - | 130 | - | 161 | 2 | |
Religious Organizations | 630 | 630 | - | 630 | - | 630 | - | |
Total Commercial real estate | 1,390 | 1,390 | - | 1,390 | - | 1,370 | 2 | |
Total Loans | $1,882 | $1,437 | $445 | $1,882 | $378 | $1,865 | $3 | |
Year-end 2012 impaired loans are set forth in the following table. | ||||||||
(In 000’s) | Unpaid | Recorded | Recorded | Total | Average | Interest | ||
Contractual | Investment | Investment | recognized | |||||
Principal | With No | With | Recorded | Related | Recorded | on impaired | ||
Balance | Allowance | Allowance | Investment | Allowance | Investment | loans | ||
Commercial and industrial: | ||||||||
Commercial | $873 | $78 | $795 | $873 | $695 | $541 | $11 | |
SBA loans | 49 | - | 49 | 49 | 49 | 29 | - | |
Asset-based | 99 | - | 99 | 99 | 99 | 119 | - | |
Total Commercial and industrial | 1,021 | 78 | 943 | 1,021 | 843 | 689 | 11 | |
Commercial real estate: | ||||||||
Commercial mortgages | 649 | 649 | - | 649 | - | 681 | 1 | |
SBA Loans | - | - | - | - | - | - | - | |
Religious Organizations | 674 | 674 | - | 674 | - | 420 | 27 | |
Total Commercial real estate | 1,323 | 1,323 | - | 1,323 | - | 1,101 | 28 | |
Total Loans | $2,344 | $1,401 | $943 | $2,344 | $843 | $1,790 | $39 | |
Credit Quality Indicators. For commercial loans, management uses internally assigned risk ratings as the best indicator of credit quality. Each loan’s internal risk weighting is assigned at origination and updated at least annually and more frequently if circumstances warrant a change in risk rating. The Bank uses a 1 through 8 loan grading system that follows regulatory accepted definitions as follows: | ||||||||
· | Risk ratings of “1” through “3” are used for loans that are performing and meet and are expected to continue to meet all of the terms and conditions set forth in the original loan documentation and are generally current on principal and interest payments. Loans with these risk ratings are reflected as “Good/Excellent” and “Satisfactory” in the following table. | |||||||
· | Risk ratings of “4” are assigned to “Pass/Watch” loans which may require a higher degree of regular, careful attention. Borrowers may be exhibiting weaker balance sheets and positive but inconsistent cash flow coverage. Borrowers in this classification generally exhibit a higher level of credit risk and are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Loans with this rating would not normally be acceptable as new credits unless they are adequately secured and/or carry substantial guarantors. Loans with this rating are reflected as “Pass” in the following table. | |||||||
· | Risk ratings of “5” are assigned to “Special Mention” loans that do not presently expose the Bank to a significant degree of risks, but have potential weaknesses/deficiencies deserving Management’s closer 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. No loss of principal or interest is envisioned. Borrower is experiencing adverse operating trends, which potentially could impair debt, services capacity and may necessitate restructuring of credit. Secondary sources of repayment are accessible and considered adequate to cover the Bank's exposure. However a restructuring of the debt should result in repayment. The asset is currently protected, but is potentially weak. This category may include credits with inadequate loan agreements, control over the collateral or an unbalanced position in the balance sheet which has not reached a point where the liquidation is jeopardized but exceptions are considered material. These borrowers would have limited ability to obtain credit elsewhere. | |||||||
· | Risk ratings of “6” are assigned to ‘Substandard” loans which are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets must have a well-defined weakness. They are characterized by the distinct possibility that some loss is possible if the deficiencies are not corrected. The borrower’s recent performance indicated an inability to repay the debt, even if restructured. Primary source of repayment is gone or severely impaired and the Bank may have to rely upon the secondary source. Secondary sources of repayment (e.g., guarantors and collateral) should be adequate for a full recovery. Flaws in documentation may leave the bank in a subordinated or unsecured position when the collateral is needed for the repayment. | |||||||
· | Risk ratings of “7” are assigned to “Doubtful” loans which have all the weaknesses inherent in those classified “Substandard” with the added characteristic that the weakness makes the collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. The borrower's recent performance indicates an inability to repay the debt. Recovery from secondary sources is uncertain. The possibility of a loss is extremely high, but because of certain important and reasonably- specific pending factors, its classification as a loss is deferred. | |||||||
· | Risk rating of “8” are assigned to “Loss” loans which are considered non-collectible and do not warrant classification as active assets. They are recommended for charge-off if attempts to recover will be long term in nature. This classification does not mean that an asset has no recovery or salvage value, but rather, that it is not practical or desirable to defer writing off the loss, although a future recovery may be possible. Loss should always be taken in the period in which they surface and are identified as non-collectible as a result there is no tabular presentation. | |||||||
For consumer and residential mortgage loans, management uses performing versus nonperforming as the best indicator of credit quality. Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to contractual terms is in doubt. These credit quality indicators are updated on an ongoing basis. A loan is placed on nonaccrual status as soon as management believes there is doubt as to the ultimate ability to collect interest on a loan. | ||||||||
The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above. | ||||||||
(In 000's) | Commercial Loans, December 31, 2013 | |||||||
Good/ Excellent | Satisfactory | Pass | Special Mention | Substandard | Doubtful | Total | ||
Commercial and industrial: | ||||||||
Commercial | $250 | $743 | $220 | - | $52 | $393 | $1,658 | |
SBA loans | - | 497 | - | 40 | 48 | - | 585 | |
Asset-based | - | 1,897 | 124 | 46 | - | - | 2,067 | |
250 | 3,137 | 344 | 86 | 100 | 393 | $4,310 | ||
Commercial real estate: | ||||||||
Commercial mortgages | - | 15,232 | 883 | - | 912 | 316 | 17,343 | |
SBA Loans | - | 265 | 171 | - | 130 | - | 566 | |
Construction | - | 2,456 | - | - | - | - | 2,456 | |
Religious organizations | - | 10,414 | 931 | 623 | 629 | - | 12,597 | |
- | 28,367 | 1,985 | 623 | 1,671 | 316 | 32,962 | ||
Total commercial loans | $250 | $31,504 | $2,329 | $709 | $1,771 | $709 | $37,272 | |
Residential Mortgage and Consumer Loans December 31, 2013 | ||||||||
- Performing/Nonperforming | ||||||||
Performing | Nonperforming | Total | ||||||
Consumer Real Estate: | ||||||||
Home equity | $1,061 | $115 | $1,176 | |||||
Home equity line of credit | 24 | - | 24 | |||||
1-4 family residential mortgages | 2,467 | 242 | 2,709 | |||||
3,552 | 357 | 3,909 | ||||||
Consumer Other: | ||||||||
Consumer Installment | 16 | - | 16 | |||||
Student loans | 1,366 | - | 1,366 | |||||
Other | 148 | - | 148 | |||||
1,530 | - | 1,530 | ||||||
Total consumer loans | $5,082 | $357 | $5,439 | |||||
Total loans | $42,711 | |||||||
(In 000's) | ||||||||
Commercial Loans, December 31, 2012 | ||||||||
Good/ Excellent | Satisfactory | Pass | Special Mention | Substandard | Doubtful | Total | ||
Commercial and industrial: | ||||||||
Commercial | $250 | $104 | $15 | $220 | $480 | $393 | $1,462 | |
SBA loans | - | 27 | - | 49 | 49 | - | 125 | |
Asset-based | - | 1,869 | 125 | 54 | 99 | - | 2,147 | |
250 | 2,000 | 140 | 323 | 628 | 393 | 3,734 | ||
Commercial real estate: | ||||||||
Commercial mortgages | - | 12,678 | 1,322 | - | 403 | 317 | 14,721 | |
SBA Loans | - | 621 | - | - | - | - | 621 | |
Construction | - | 2,767 | - | - | 631 | - | 3,398 | |
Religious organizations | - | 8,183 | 3,623 | 162 | 674 | - | 12,642 | |
- | 24,349 | 4,945 | 162 | 1,708 | 317 | 31,381 | ||
Total commercial loans | $250 | $26,249 | $5,085 | $485 | $2,336 | $710 | $33,115 | |
Residential Mortgage and Consumer Loans December 31, 2012 | ||||||||
- Performing/Nonperforming | ||||||||
Performing | Nonperforming | Total | ||||||
Consumer Real Estate: | ||||||||
Home equity | $1,390 | $63 | $1,453 | |||||
Home equity line of credit | 26 | - | 26 | |||||
1-4 family residential mortgages | 2,914 | 226 | 3,140 | |||||
4,330 | 289 | 4,619 | ||||||
Consumer Other: | ||||||||
Consumer Installment | 30 | - | 30 | |||||
Student loans | 1,588 | - | 1,588 | |||||
Other | 150 | - | 150 | |||||
1,768 | - | 1,768 | ||||||
Total consumer loans | $6,098 | $289 | $6,387 | |||||
Total loans | $41,502 | |||||||
Allowance for loan losses. The determination of the allowance for loan losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance is the accumulation of three components that are calculated based on various independent methodologies that are based on management’s estimates. The three components are as follows: | ||||||||
· Specific Loan Evaluation Component – Includes the specific evaluation of impaired loans. | ||||||||
· Historical Charge-Off Component – Applies a rolling, eight-quarter historical charge-off rate to all pools of non-classified loans. | ||||||||
· Qualitative Factors Component – The loan portfolio is broken down into multiple homogenous sub classifications, upon which multiple factors (such as delinquency trends, economic conditions, concentrations, growth/volume trends, and management/staff ability) are evaluated, resulting in an allowance amount for each of the sub classifications. The sum of these amounts comprises the Qualitative Factors Component. | ||||||||
All of these factors may be susceptible to significant change. There has been no change in qualitative factors during the year ending December 31, 2013 except for commercial and industrial loans for which there was an increase as a result of unfavorable trends. However, the average rolling eight quarter net loss factors have declined during the period in each portfolio segment as a result of a lower level of net charge-offs in 2013, with the exception of the factor for commercial and industrial loans that increased as a result of unfavorable trends. To the extent actual outcomes differ from management’s estimates, additional provisions for loan losses may be required that would adversely impact earnings in future periods. | ||||||||
According to the Bank’s policy, a loss (“charge-off”) is to be recognized and charged to the allowance for loan losses as soon as a loan is recognized as uncollectible. All credits that are 90 days or more past due must be analyzed for the Bank’s ability to collect the outstanding principal and/or interest. Once a loss is known to exist, the charge-off approval process must be followed for all loan types. An analysis of the activity in the allowance for loan losses for the years 2013 and 2012 is as follows: | ||||||||
(in 000's) | For the Year Ended December 31, 2013 | |||||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||||
Beginning balance | $891 | $308 | $5 | $- | $1,204 | |||
Provision for loan losses | 113 | (106) | 50 | 18 | 75 | |||
Charge-offs | (524) | - | (5) | (10) | (539) | |||
Recoveries | 3 | 78 | 9 | 9 | 99 | |||
Net charge-offs | (521) | 78 | 4 | (1) | (440) | |||
Ending balance | $483 | $280 | $59 | $17 | $839 | |||
(in 000's) | For the Year Ended December 31, 2012 | |||||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||||
Beginning balance | $387 | $412 | $68 | - | $867 | |||
Provision for loan losses | 560 | (112) | - | 5 | 453 | |||
Charge-offs | -56 | - | -80 | -21 | -157 | |||
Recoveries | - | 8 | 17 | 16 | 41 | |||
Net charge-offs | (56) | 8 | (63) | (5) | (116) | |||
Ending balance | $891 | $308 | $5 | - | $1,204 | |||
(in 000's) | As of December 31, 2013 | |||||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||||
Period-end amount allocated to: | ||||||||
Loans individually evaluated for impairment | $378 | $- | $- | $- | $378 | |||
Loans collectively evaluated for impairment | 105 | 280 | 59 | 17 | 461 | |||
$483 | $280 | $59 | $17 | $839 | ||||
Loans, ending balance: | ||||||||
Loans individually evaluated for impairment | $492 | $1,390 | $- | $- | $1,882 | |||
Loans collectively evaluated for impairment | 3,818 | 31,572 | 3,909 | 1,530 | 40,829 | |||
Total | $4,310 | $32,962 | $3,909 | $1,530 | $42,711 | |||
(in 000's) | As of December 31, 2012 | |||||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||||
Period-end amount allocated to: | ||||||||
Loans individually evaluated for impairment | $843 | - | - | - | $843 | |||
Loans collectively evaluated for impairment | 48 | 308 | 5 | - | 361 | |||
$891 | $308 | $5 | - | $1,204 | ||||
Loans, ending balance: | ||||||||
Loans individually evaluated for impairment | $1,021 | $1,323 | - | - | 2,344 | |||
Loans collectively evaluated for impairment | 2,713 | 30,058 | 4,619 | 1,768 | 39,158 | |||
Total | $3,734 | $31,381 | $4,619 | $1,768 | $41,502 | |||
Troubled debt restructurings (“TDRs”). TDRs occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider, such as a below market interest rate, extending the maturity of a loan, or a combination of both. The Company made modifications to certain loans in its commercial loan portfolio that included the term out of lines of credit to begin the amortization of principal. The terms of these loans do not include any financial concessions and are consistent with the current market. Management reviews all loan modifications to determine whether the modification qualifies as a TDR (i.e. whether the creditor has been granted a concession or is experiencing financial difficulties). Based on this review and evaluation, none of the loans modified during 2013 and 2012 met the criteria of a TDR. In addition, the Company had no loans classified as TDRs at December 31, 2013 and 2012. |
5_Bank_Premises_and_Equipment
5. Bank Premises and Equipment | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
5. Bank Premises and Equipment | ' | |||
5. BANK PREMISES AND EQUIPMENT | ||||
The major classes of bank premises and equipment and the total accumulated depreciation are as follows at December 31: | ||||
(In 000’s) | Estimated | |||
useful life | 2013 | 2012 | ||
Buildings and leasehold improvements | 10-15 years | $781 | $874 | |
Furniture and equipment | 3- 7 years | 1,107 | 775 | |
$1,888 | $1,649 | |||
Less accumulated depreciation | ($1,239) | ($1,086) | ||
649 | 563 | |||
Depreciation expense on fixed assets totaled $152,659 and $220,281 for the years ended December 31, 2013 and 2012, respectively. | ||||
The Bank leases other facilities and other equipment under non-cancelable operating lease agreements. The amount of expense for operating leases for the years ended December 31, 2013 and 2012 was $507,700 and $465,800, respectively. Future minimum lease payments under operating leases are as follows: | ||||
(In 000’s) | ||||
Operating leases | ||||
Year ending December 31, | ||||
2014 | $454 | |||
2015 | 446 | |||
2016 | 460 | |||
2017 | 397 | |||
2018 | 406 | |||
Thereafter | 1,631 | |||
Total minimum lease payments | $3,794 | |||
In April 2013, the Bank renegotiated and extended its lease for the corporate and retail space located at the Graham Building for 10 years. |
6_Other_Real_Estate_Owned
6. Other Real Estate Owned | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
6. Other Real Estate Owned | ' | ||
6. OTHER REAL ESTATE OWNED | |||
Other real estate owned (“OREO”) consists of properties acquired as a result of deed in-lieu-of foreclosure and foreclosures. Properties or other assets are classified as OREO and are reported at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of assets are capitalized, and costs relating to holding the property are charged to expense. | |||
The following schedule reflects the components of other real estate owned at December 31, 2013 and 2012: | |||
(in 000’s) | 2013 | 2012 | |
Commercial real estate | $191 | $206 | |
Residential real estate | 242 | 569 | |
Total | $433 | $775 | |
A summary of the change in other real estate owned follows: | |||
Year Ended | Year Ended | ||
(in 000’s) | 31-Dec-13 | 31-Dec-12 | |
Beginning Balance | $775 | $1,285 | |
Additions, transfers from loans | - | 156 | |
Sales | -185 | -434 | |
590 | 1,007 | ||
Less: write-downs | -157 | -232 | |
Ending Balance | $433 | $775 | |
The following table details the components of net expense of other real estate owned. | |||
(in 000’s) | Year ended | Year ended | |
31-Dec-13 | 31-Dec-12 | ||
Insurance | $16 | $24 | |
Legal fees | - | 5 | |
Maintenance | 9 | 3 | |
Professional fees | - | 8 | |
Real estate taxes | 24 | 99 | |
Utilities | 5 | 21 | |
Transfer-in write-up | - | -43 | |
Impairment charges | 157 | 232 | |
Total | $211 | $349 |
7_Deposits
7. Deposits | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
7. Deposits | ' | ||
7. DEPOSITS | |||
At December 31, 2013, the scheduled maturities of time deposits (certificates of deposit) are as follows: | |||
(In 000’s) | |||
2014 | $14,383 | ||
2015 | 677 | ||
2016 | 143 | ||
2017 | 110 | ||
2018 | 107 | ||
Thereafter | 43 | ||
$15,463 | |||
At December 31, 2013, the Company has a significant deposit relationship with the City of Philadelphia for which deposits totaled approximately $5 million. |
8_Borrowings
8. Borrowings | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
8. Borrowings | ' |
8. BORROWINGS | |
At December 31, 2013, the Bank has the ability to borrow up to $500,000 on a fully secured basis at the Discount Window of the Federal Reserve Bank for which the Bank currently has $750,000 in securities. As of December 31, 2013 and 2012, the Bank had no borrowings outstanding. |
9_Income_Taxes
9. Income Taxes | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
9. Income Taxes | ' | ||
9. INCOME TAXES | |||
At December 31, 2013, the Bank has net operating loss carry forwards of approximately $9,400,000 for income tax purposes that expire in 2020 through 2034. | |||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. For financial reporting purposes, a valuation allowance of $3,679,289 and $3,460,103 as of December 31, 2013 and 2012, respectively, has been recognized to offset the net deferred tax assets related to the cumulative temporary differences and the tax loss carry forwards. Significant components of the Bank’s net deferred tax assets are as follows: | |||
December 31, | |||
2013 | 2012 | ||
Deferred tax assets(liabilities): | |||
Provision for loan losses | $191,387 | $333,853 | |
Unrealized (loss) gain on investment securities | 161,082 | -16,824 | |
Depreciation | 31,199 | 94,393 | |
Net operating carryforwards | 3,198,011 | 2,897,243 | |
Other, net | 258,692 | 134,614 | |
Valuation allowance for deferred tax assets | -3,679,289 | -3,460,103 | |
Net deferred tax assets (liabilities) | $161,082 | ($16,824) | |
2013 | 2012 | ||
Effective rate reconciliation: | |||
Tax at statutory rate (34%) | ($227,425) | ($345,524) | |
Nondeductible expenses | 6,070 | 6,507 | |
Increase in valuation allowance | 219,186 | 405,335 | |
Other | 2,169 | -66,318 | |
Total tax expense | $- | $- | |
At December 31, 2013, no valuation allowance was recorded for the deferred tax asset related to the unrealized holding losses on securities available-for-sale because the Company had the intent and the ability to hold these securities until recovery of the unrealized losses, which may be at maturity. The Company will continue to monitor its deferred tax position and may make changes to the valuation allowance recorded as circumstances change. | |||
Management has evaluated the Bank’s tax positions and concluded that the Bank has taken no uncertain tax positions that require adjustment to the financial statements. With few exceptions, the Bank is no longer subject to income tax examinations by the U.S. federal, state or local tax authorities for the years before 2010. |
10_Financial_Instrument_Commit
10. Financial Instrument Commitments | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
10. Financial Instrument Commitments | ' | ||
10. FINANCIAL INSTRUMENT COMMITMENTS | |||
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 include commitments to extend credit and letters of credit, which are conditional commitments issued by the Bank to guarantee the performance of an obligation of a customer to a third party. Both arrangements have credit risk essentially the same as that involved in extending loans and are subject to the Bank’s normal credit policies. Collateral may be obtained based on management’s assessment of the customer. | |||
The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments is represented by the contractual amount of those instruments. | |||
A summary of the Bank’s financial instrument commitments is as follows: | |||
2013 | 2012 | ||
Commitments to extend credit | $10,278,928 | $9,484,309 | |
Outstanding letters of credit | 1,050,832 | 1,173,374 | |
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 and unused credit card lines. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. | |||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
11_Fair_Value_Measurements
11. Fair Value Measurements | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
11. Fair Value Measurements | ' | |||||
11. FAIR VALUE MEASUREMENTS | ||||||
The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic of FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Bank's various assets and liabilities. 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. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. | ||||||
The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried or disclosed at fair value in three levels as follows: | ||||||
Level 1 | ||||||
o Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||
Level 2 Inputs | ||||||
o Quoted prices for similar assets or liabilities in active markets. | ||||||
o Quoted prices for identical or similar assets or liabilities in markets that are not active. | ||||||
o Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.” | ||||||
Level 3 Inputs | ||||||
o Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities. | ||||||
o These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | ||||||
An asset’s or liability’s financial categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. | ||||||
Fair Value on a Recurring Basis | ||||||
Securities Available for Sale: Where quoted prices are available in an active market, securities would be classified within Level 1 of the valuation hierarchy. Level 1 securities include money market funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities include U.S. agency securities and mortgage backed agency securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. | ||||||
Loans Held for Sale. Fair values are estimated by using actual quoted market bids on a loan by loan basis. | ||||||
Loans Held at Fair Value. Fair values are estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries. | ||||||
Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. | ||||||
(in 000’s) | Fair Value Measurements at Reporting Date Using: | |||||
Assets/Liabilities Measured at Fair Value at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||
31-Dec-13 | ||||||
Investment securities available-for-sale: | ||||||
U.S. Government agency securities | $3,802 | $- | $3,802 | - | ||
Government Sponsored Enterprises residential mortgage-backed securities | 5,649 | - | $5,649 | - | ||
Money Market Funds | 129 | 129 | - | - | ||
Total | $9,580 | $129 | $9,541 | - | ||
Loans held for sale | $1,646 | $- | $1,646 | - | ||
Loans held at fair value | $447 | $- | $- | $447 | ||
When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs. These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows: | ||||||
(in 000’s) | ||||||
Assets measured at fair value | Fair value | Principal valuation techniques | Significant observable inputs | Range of inputs | ||
Loans held at fair value: | $447 | Discounted cash flow | Constant prepayment rate | 7.74% to 7.985% | ||
Weighted average discount rate | 9.106% to 9.111% | |||||
Weighted average life | 4.04 yrs to 4.08 yrs | |||||
Average projected default rate | 18% | |||||
Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period. | ||||||
The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value for the year ended December 31, 2013: | ||||||
(in 000’s) | Loans held at fair value | |||||
Balance at December 31, 2012 | $- | |||||
Origination of loans | 491 | |||||
Principal repayments | - | |||||
Change in fair value of financial instruments | -45 | |||||
Balance at December 31, 2013 | $447 | |||||
(in 000’s) | Fair Value Measurements at Reporting Date Using: | |||||
Assets/Liabilities Measured at | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||
Fair Value at | (Level 1) | |||||
31-Dec-12 | ||||||
Investment securities available-for-sale: | ||||||
Government Sponsored Enterprises residential mortgage-backed securities | $898 | $- | $898 | - | ||
Money Market Funds | 129 | 129 | - | - | ||
Total | $1,027 | $129 | $898 | |||
As of December 31, 2013 and 2012, the fair value of the Bank’s available-for-sale securities portfolio was approximately $9,580,000 and $1,027,000, respectively. All the residential mortgage-backed securities were issued or guaranteed by the Government National Mortgage Association (“GNMA”), the Federal National Mortgage Association (“FNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”). The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States. The valuation of AFS securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar instruments and model-based valuation techniques for which the significant assumptions can be corroborated by market data. There were no transfers between Level 1 and Level 2 assets during the years ended December 31, 2013 or 2012. | ||||||
Fair Value on a Nonrecurring Basis | ||||||
Certain assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). | ||||||
Impaired Loans (net of specific reserves): The carrying value of certain impaired loans is derived in accordance with FASB ASC Topic 310, “Receivables”. Impairment is determined based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Appraised and reported values for collateral dependent | ||||||
Other real estate owned: Other real estate owned (“OREO”) consists of properties acquired as a result of foreclosures and deeds in-lieu-of foreclosure. Properties are classified as OREO and are reported at the lower of cost or fair value less cost to sell. The valuation allowance for OREO at December 31, 2013 and 2012 was approximately $157,000 and $233,000, respectively. | ||||||
The following table presents the assets and liabilities carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2013, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2013. | ||||||
Carrying Value at December 31, 2013: | ||||||
(in 000’s) | Quoted Prices in Active markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total fair value gain (loss) during the year ended | ||
(Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | |||
Total | ||||||
Impaired Loans | $1,304 | - | - | $1,304 | -59 | |
Other real estate owned | 433 | - | - | 433 | (157) | |
The following table presents the assets carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2012, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2012. | ||||||
Carrying Value at December 31, 2012: | ||||||
(in 000’s) | Quoted Prices in Active markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total fair value gain (loss) during the year ended | ||
(Level 1) | (Level 2) | (Level 3) | 31-Dec-12 | |||
Total | ||||||
Impaired Loans | $1,501 | - | - | $1,501 | ($843) | |
Other real estate owned | 775 | - | - | 775 | (232) | |
Fair Value of Financial Instruments | ||||||
FASB ASC Topic 825 “Disclosure About Fair Value of Financial Instruments”, requires the disclosure of the fair value of financial instruments. The methodology for estimating the fair value of financial assets that are measured on a recurring or non recurring basis are discussed above. | ||||||
The following methods and assumptions were used by the Bank in estimating its fair value disclosures for other financial instruments: | ||||||
Cash and cash equivalents, accrued interest receivable, and accrued interest payable: The carrying amounts reported in the balance sheet approximates fair value. | ||||||
Investment securities: Fair values for investment securities available for sale are as described above. Investment securities held to maturity are determined in a similar manner. | ||||||
Loans Held for Sale. Fair values for loans held for sale are estimated by using actual quoted market bids on a loan by loan basis. | ||||||
Loans (other than impaired loans): The fair value of loans was estimated using a discounted cash flow analysis, which considered estimated prepayments, amortizations, and non performance risk. Prepayments and discount rates were based on current marketplace estimates and rates. | ||||||
Loans Held at Fair Value. The fair value of loans was estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, default and voluntary prepayments as well as loan specific assumptions for losses and recoveries. | ||||||
Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are equal to the amounts payable on demand at the reporting date (e.g., their carrying amounts). The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate the fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation. The Treasury Yield Curve was utilized for discounting cash flows as it approximates the average marketplace certificate of deposit rates across the relevant maturity spectrum. | ||||||
Commitments to extend credit: The carrying amounts for commitments to extend credit approximate fair value as such commitments are not substantially different from the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparts. Such amounts were not significant. | ||||||
The fair value of financial instruments at year-end are presented below: | ||||||
(in 000’s) | ||||||
Level in | 2013 | 2012 | ||||
Value | Carrying | Fair | Carrying | Fair | ||
Assets: | Hierarchy | Amount | Value | Amount | Value | |
Cash and cash equivalents | Level 1 | $5,790 | $5,790 | $10,236 | $10,236 | |
Available for sale securities | -1 | 9,580 | 9,580 | 1,027 | 1,027 | |
Held to maturity securities | Level 2 | - | - | 11,895 | 12,486 | |
Loans held for sale | Level 2 | 1,646 | 1,646 | - | - | |
Loans, net of allowance for loan losses | -2 | 42,711 | 43,304 | 41,502 | 40,325 | |
Interest receivable | Level 2 | 256 | 256 | 310 | 310 | |
Liabilities: | ||||||
Demand deposits | Level 2 | 28,658 | 28,658 | 29,851 | 29,851 | |
Savings deposits | Level 2 | 12,988 | 12,988 | 14,239 | 14,239 | |
Time deposits | Level 2 | 15,463 | 15,472 | 16,886 | 16,902 | |
Interest Payable | Level 2 | 13 | 13 | 30 | 30 | |
(1) Level 1 for money market funds; Level 2 for all other securities. | ||||||
(2) Level 2 for non-impaired loans; Level 3 for impaired loans; Level 3 for $447,000 held at fair value. |
12_Consolidated_Financial_Info
12. Consolidated Financial Information-parent Company Only | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
12. Consolidated Financial Information-parent Company Only | ' | ||
12. CONSOLIDATED FINANCIAL INFORMATION—PARENT COMPANY ONLY | |||
Condensed Balance Sheets | |||
(Dollars in thousands) | 2013 | 2012 | |
Assets: | |||
Cash and cash equivalents | $- | $- | |
Investment in United Bank of Philadelphia | 3,210 | 4,240 | |
Total assets | $3,210 | $4,240 | |
Shareholders’ equity: | |||
Series A preferred stock | 1 | 1 | |
Common stock | 11 | 11 | |
Additional paid-in capital | 14,750 | 14,750 | |
Accumulated deficit | -11,225 | -10,556 | |
Net unrealized holding gains on securities available-for-sale | (327) | 34 | |
Total shareholders’ equity | $3,210 | $4,240 | |
Condensed Statements of Operations | |||
Years ended December 31, | |||
(Dollars in thousands) | 2013 | 2012 | |
Other Expenses | $- | ($20) | |
Equity in net loss of subsidiary | -669 | -996 | |
Net loss | ($669) | ($1,016) | |
Condensed Statements of Cash Flows | |||
Years ended December 31, | |||
(Dollars in thousands) | 2013 | 2012 | |
Cash flows from operating activities: | |||
Net loss | ($669) | ($1,016) | |
Adjustments: | |||
Equity in net loss of subsidiary | 669 | 996 | |
Net cash used in operating activities | - | -20 | |
Cash and cash equivalents at beginning of year | - | 20 | |
Cash and cash equivalents at end of year | $- | $- | |
13_Regulatory_Matters_and_Goin
13. Regulatory Matters and Going Concern | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Notes | ' | ||||||
13. Regulatory Matters and Going Concern | ' | ||||||
13. REGULATORY MATTERS AND GOING CONCERN | |||||||
The Bank engages in the commercial banking business, with a particular focus on serving African Americans, Hispanics and women, and is subject to substantial competition from financial institutions in the Bank’s service area. As a bank holding company and a banking subsidiary, the Company and the Bank, respectively, are subject to regulation by the FDIC and the Pennsylvania Department of Banking (“PADOB”) and are required to maintain capital requirements established by those regulators. Effective January 1, 2010, the FDIC became the Bank’s primary regulator after it voluntarily surrendered its Federal Reserve Membership. | |||||||
Prompt corrective actions may be taken by those regulators against banks that do not meet minimum capital requirements. Prompt corrective actions range from restriction or prohibition of certain activities to the appointment of a receiver or conservator of an institution’s net assets. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices, the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total Tier I capital (as defined in the regulations) for capital adequacy purposes to risk-weighted assets (as defined). | |||||||
Although the bank meets the framework to be considered “well capitalized” as setforth in tables below, the most recent notification as of September 30, 2013, from the FDIC and PADOB categorized the Bank as “adequately capitalized” under the regulatory framework for prompt and corrective action due to the Consent Orders described below. The Bank’s growth and other operating factors such as the need for additional provisions to the allowance for loans losses may have an adverse effect on its capital ratios. | |||||||
The Company and the Bank’s actual capital amounts and ratios are as follows: | |||||||
To be well capitalized under prompt corrective | |||||||
For capital adequacy purposes | action provisions | ||||||
Actual | |||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||
As of December 31, 2013: | |||||||
Total capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | $4,067 | 9.48% | $3,427 | 8.00% | N/A | ||
Bank | 4,067 | 9.48% | 3,427 | 8.00% | $4,284 | 10.00% | |
Tier I capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | 3,525 | 8.22% | 1,713 | 4.00% | N/A | ||
Bank | 3,525 | 8.22% | 1,713 | 4.00% | 2,570 | 6.00% | |
Tier I capital to average assets: | |||||||
Consolidated | 3,525 | 5.67% | 2,485 | 4.00% | N/A | ||
Bank | 3,525 | 5.%67 | 2,485 | 4.00% | 3,107 | 5.00% | |
To be well capitalized under prompt corrective | |||||||
For capital adequacy purposes | action provisions | ||||||
Actual | |||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||
As of December 31, 2012: | |||||||
Total capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | $4,584 | 11.16% | $3,287 | 8.00% | N/A | ||
Bank | 4,584 | 11.16% | 3,287 | 8.00% | $4,109 | 10.00% | |
Tier I capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | 4,070 | 9.91 | 1,644 | 4.00% | N/A | ||
Bank | 4,070 | 9.91% | 1,644 | 4.00% | 2,465 | 6.00% | |
Tier I capital to average assets: | |||||||
Consolidated | 4,070 | 6.00% | 2,715 | 4.00% | N/A | ||
Bank | 4,070 | 6.00% | 2,715 | 4.00% | 3,394 | 5.00% | |
On January 31, 2012, the Bank entered into stipulations consenting to the issuance of Consent Orders with the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (“Department”). The material terms of the Consent Orders are identical. The Consent Orders require the Bank to: | |||||||
· | increase participation of the Bank’s board of directors in the Bank’s affairs by having the board assume full responsibility for approving the Bank’s policies and objectives and for supervising the Bank’s management; | ||||||
· | have and retain qualified management, and notify the FDIC and the Department of any changes in the Bank’s board of directors or senior executive officers; | ||||||
· | retain a bank consultant acceptable to the FDIC and the Department to develop a written analysis and assessment of the Bank’s management needs and thereafter formulate a written management plan; | ||||||
· | formulate and implement written profit and budget plans for each year during which the orders are in effect; | ||||||
· | develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually; | ||||||
· | develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period; | ||||||
· | formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its current regulatory examination; | ||||||
· | eliminate all assets classified as “Loss” at its current regulatory examination; | ||||||
· | revise the Bank’s loan policy to establish and monitor procedures for adherence to the loan policy and to eliminate credit administration and underwriting deficiencies identified at its current regulatory examination; | ||||||
· | develop a comprehensive policy and methodology for determining the allowance for loan and lease losses; | ||||||
· | develop an interest rate risk policy and procedures to identify, measure, monitor and control the nature and amount of interest rate risk the Bank takes; | ||||||
· | revise its liquidity and funds management policy and update and review the policy annually; | ||||||
· | refrain from accepting any brokered deposits; | ||||||
· | refrain from paying cash dividends without prior approval of the FDIC and the Department; | ||||||
· | establish an oversight committee of the board of directors of the Bank with the responsibility to ensure the Bank’s compliance with the orders, and | ||||||
· | prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders. | ||||||
The Consent Orders will remain in effect until modified or terminated by the FDIC and the Department and do not restrict the Bank from transacting its normal banking business. The Bank will continue to serve its customers in all areas including making loans, establishing lines of credit, accepting deposits and processing banking transactions. Customer deposits remain fully insured to the highest limits set by the FDIC. The FDIC and the Department did not impose or recommend any monetary penalties in connection with the Consent Orders. | |||||||
As of December 31, 2013, the Bank’s tier one leverage capital ratio was 5.67% and its total risk based capital ratio was 9.48%. These ratios are below the levels required by the Consent Orders. Management is in the process of addressing all matters outlined in the Consent Orders. The Bank has increased the participation of the Bank’s Board of Directors in the Bank’s affairs and has established an oversight committee of the Board of Directors of the Bank with the responsibility to insure the Bank’s compliance with the Consent Orders. Management has developed the written plans and policies required by the Consent Orders. Management believes that the Bank will continue to endeavor to comply with the terms and conditions of the Orders and will continue to operate as an independent financial institution for the foreseeable future. | |||||||
The uncertainty surrounding the Bank’s ability to comply with the Consent Orders gives rise to substantial doubt about the Bank’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Bank is unable to continue as a going concern. |
14_Commitments_and_Contingenci
14. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
14. Commitments and Contingencies | ' |
14. COMMITMENTS AND CONTINGENCIES | |
The Bank is a defendant in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company. |
15_Earnings_Per_Share_Computat
15. Earnings Per Share Computation | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
15. Earnings Per Share Computation | ' | |||
15. EARNINGS PER SHARE COMPUTATION | ||||
Net loss per common share is calculated as follows: | ||||
Year ended December 31, 2013 | ||||
Loss | Shares | Per share | ||
(numerator) | (denominator) | amount | ||
Net loss | ($668,898) | |||
Basic EPS | ||||
Loss attributable to common stockholders | ($668,898) | 1,068,588 | ($0.63) | |
Diluted EPS | ||||
Loss attributable to common stockholders | ($668,898) | 1,068,588 | ($0.63) | |
Year ended December 31, 2012 | ||||
Loss | Shares | Per share | ||
(numerator) | (denominator) | amount | ||
Net loss | ($1,016,247) | |||
Basic EPS | ||||
Loss attributable to common stockholders | ($1,016,247) | 1,068,588 | ($0.95) | |
Diluted EPS | ||||
Loss attributable to common stockholders | ($1,016,247) | 1,068,588 | ($0.95) | |
There were no common stock equivalents for the years December 31, 2013 and 2012. | ||||
The preferred stock is non cumulative and the Company is restricted from paying dividends. Therefore, no effect of the preferred stock is included in the earnings per share calculations. |
1_Summary_of_Significant_Accou1
1. Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Policies | ' | |||
Principles of Consolidation | ' | |||
Principles of Consolidation | ||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany transactions and balances have been eliminated. | ||||
Management's Use of Estimates | ' | |||
Management’s Use of Estimates | ||||
The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities and consideration of impairment of other intangible assets. | ||||
Marketing and Advertising | ' | |||
Marketing and Advertising | ||||
Marketing and advertising costs are expensed as incurred. | ||||
Statement of Cash Flows | ' | |||
Statement of Cash Flows | ||||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks that mature within 90 days and federal funds sold on an overnight basis. Changes in loans made to and deposits received from customers are reported on a net basis. | ||||
Securities | ' | |||
Securities | ||||
Bonds, notes, and debentures for which the Company has both the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investment securities that would be held for indefinite periods of time but not necessarily to maturity, including securities that would be used as part of the Bank’s asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors are classified as “Available for Sale.” These securities are carried at fair value, with any temporary unrealized gains or losses reported as a separate component of other comprehensive income, net of the related income tax effect. Gains and losses on the sale of such securities are accounted for on the specific identification basis in the statements of operations on the trade date. | ||||
If transfers between the available-for-sale and held-to-maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer. For securities transferred to available-for-sale from held-to-maturity, unrealized gains and losses as of the date of the transfer are recognized in accumulated other comprehensive loss as a separate component of shareholders’ equity. For securities transferred into the held-to-maturity portfolio from available-for-sale, unrealized gains and losses as of the date of the transfer continue to be reported in accumulated other comprehensive loss, and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount. | ||||
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value. Debt securities that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive income. In evaluating whether impairment is temporary or other-than-temporary, management first considers whether the Bank intends to sell the security or it is more-likely-than-not that the Bank will be required to sell the security prior to recovery. In these circumstances, the loss is determined to be other-than-temporary and the difference between the security’s fair value and its amortized cost is reflected as a loss in the statement of operations. If management does not intend to sell the security and likely will not be required to sell the security prior to forecasted recovery, management evaluates whether it expects to recover the entire amortized cost of the debt security or if there is a credit loss. In evaluating whether there is a credit loss, management considers various qualitative factors which include (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in the fair value, and (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events. If, based on an analysis of these factors, management concludes that there is a credit loss, then management calculates the expected cash flows and records a loss in earnings equal to the difference between the amortized cost of the debt security and the expected cash flows. The portion of the decline in fair value that is due to factors other than credit loss is recognized in other comprehensive income. No investment securities held by the Bank as of December 31, 2013 and 2012 were subjected to a write-down due to credit related other-than-temporary impairment. Interest income from securities adjusted for the amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the contractual lives of the related securities. Realized gains and losses, determined using the amortized cost value of the specific securities sold, are included in noninterest income in the statement of operations. | ||||
Transfers of Financial Assets | ' | |||
Transfers of Financial Assets | ||||
Transfers of financial assets are accounted for as sales when all the components meet the definition of a participating interest and when control over the assets has been surrendered. A participating interest generally represents (1) a proportionate (pro rata) ownership interest in an entire financial assets, (2) a relationship where from the date of transfer all cash flows received from the entire financial asset are divided proportionately among the participating interest holders in an amount equal to their share of ownership, (3) the priority of cash flows has certain characteristics, including no reduction in priority, subordination of interest, or recourse to the transferor other than standard representation or warranties, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. 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. | ||||
Loans Held For Sale | ' | |||
Loans Held for Sale | ||||
From time to time, the Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market. These loans are classified as held-for-sale and carried at estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. For the year ended December 31, 2013, the Bank recorded a net change in fair value of financial instruments of totaling approximately $154,000 related to the guaranteed portion of two SBA loans totaling approximately $1,492,000. | ||||
Loans | ' | |||
Loans | ||||
The Bank has both the positive intent and ability to hold the majority of its loans to maturity. These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses. Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount. It is the Bank’s policy to discontinue the accrual of interest income when a default of principal or interest exists for a period of 90 days except when, in management’s judgment, the loan is well collateralized and in the process of collection. Interest received on nonaccrual loans is either applied against principal or reported as interest income according to management’s judgment as to collectability of principal. When interest accruals are discontinued, unpaid accrued interest previously credited to income is reversed and the loan is classified as impaired. | ||||
Loans Held At Fair Value | ' | |||
Loans Held at Fair Value | ||||
From time to time, the Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market. Management has elected to carry these loans at fair value. Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries. | ||||
Non-accrual and Past Due Loans | ' | |||
Non-accrual and Past Due Loans | ||||
Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due. The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more. If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||
Unearned discount is amortized over the weighted average maturity of the related mortgage loan portfolio. Loan origination and commitment fees and certain direct loan origination costs are deferred, and the net amount is amortized as an adjustment of the related loan’s yield. The Bank is amortizing these amounts over the contractual life of the loan. | ||||
For purchased loans, the discount remaining after the loan loss allocation is being amortized over the remaining life of the purchased loans using the interest method. | ||||
Allowance For Loan Losses | ' | |||
Allowance for Loan Losses | ||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses. Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance. When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition. Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance. | ||||
Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process. Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination. It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term. | ||||
The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Bank does not allocate reserves for unfunded commitments to fund lines of credit. | ||||
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank will identify and assess loans that may be impaired through any of the following processes: | ||||
· During regularly scheduled meetings of the Asset Quality Committee | ||||
· During regular reviews of the delinquency report | ||||
· During the course of routine account servicing, annual review, or credit file update | ||||
· Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable LTV ratio | ||||
Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | ||||
Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures. | ||||
Bank Premises and Equipment | ' | |||
Bank Premises and Equipment | ||||
Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Amortization of leasehold improvements is computed over the shorter of the related lease term or the useful life of the assets. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
The liability method is used in accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent on generating sufficient taxable income in the future. | ||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. It is the Bank’s policy to recognize interest and penalties related to unrecognized tax liabilities within income tax expense in the statement of operations. | ||||
The Bank does not have an accrual for uncertain tax positions as of December 31, 2013 or 2012, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. | ||||
Loss Per Share ("eps") | ' | |||
Loss Per Share (“EPS”) | ||||
Basic EPS excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. | ||||
Off-balance-sheet Financial Instruments | ' | |||
Off-Balance-Sheet Financial Instruments | ||||
In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the financial statements when they become payable. | ||||
Intangible Assets | ' | |||
Intangible Assets | ||||
On September 24, 1999, the Bank acquired four branches from First Union Corporation with deposits totaling $31.5 million. As a result of the acquisition, the Bank recorded a core deposit intangible of $2,449,488. The core deposit intangible was amortized over 14 years. | ||||
2013 | 2012 | |||
Core Deposit Premium (cost) | $2,449,488 | $2,449,488 | ||
Less accumulated amortization | -2,449,488 | -2,313,755 | ||
$- | $135,733 | |||
Amortization of the intangible totaled approximately $136,000 and $178,000 for the years ended December 31, 2013 and 2012, respectively, and is fully amortized at December 31, 2013. Intangible assets are reviewed for possible impairment when events or changed circumstances may affect the underlying basis of the net asset. Such reviews include an analysis of current results and take into consideration the discounted value of projected operating cash flows. No impairment has been recognized. | ||||
Other Real Estate Owned | ' | |||
Other Real Estate Owned | ||||
Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value, net of estimated cost to sell, at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less the cost to sell. Revenue and expenses from operations and changes in valuation allowance are charged to operations. The Bank had approximately $433,000 and $775,000 in foreclosed real estate as of December 31, 2013 and 2012, respectively. | ||||
Segments | ' | |||
Segments | ||||
The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the other. For example, commercial lending is dependent upon the ability of the Bank to fund it with retail deposits and other borrowings and to manage interest rate and credit risk. This situation is also similar for consumer and residential mortgage lending. Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. | ||||
Reclassifications | ' | |||
Reclassifications | ||||
Certain reclassifications have been made to the prior years’ financial statements to conform to the 2013 presentation, with no impact on earnings or shareholders’ equity. | ||||
Comprehensive Loss | ' | |||
Comprehensive Loss | ||||
Comprehensive loss includes net loss as well as certain other items that result in a change to equity during the period. The components of other comprehensive loss are as follows: | ||||
31-Dec-13 | ||||
Before tax | Tax | Net of tax | ||
amount | benefit | Amount | ||
Unrealized loss on securities: | ||||
Unrealized holding loss arising during period | ($539,109) | $177,906 | ($361,203) | |
Less: reclassification adjustment for gains (losses) | ||||
realized in net loss | - | - | - | |
Other comprehensive loss, net | ($539,109) | $177,906 | ($361,203) | |
31-Dec-12 | ||||
Before tax | Tax | Net of tax | ||
amount | benefit | Amount | ||
Unrealized loss on securities | ||||
Unrealized holding loss arising during period | ($6,990) | $2,307 | ($4,684) | |
Less: reclassification adjustment for gains (losses) | ||||
realized in net loss | - | - | - | |
Other comprehensive loss, net | ($6,990) | $2,307 | ($4,684) | |
Recent Accounting Pronouncements | ' | |||
Recent Accounting Pronouncements | ||||
In February 2013, the FASB issued an update (ASU 2013-02 – Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income) which requires entities to disclose, for items reclassified out of accumulated other comprehensive income (“AOCI”) and into net income in their entirety, the effect of the reclassification on each affected net income line item and, for AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required U.S. GAAP disclosures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2012; early adoption is allowed. The disclosures required by the adoption of this guidance in 2013 are included in the notes of these financial statements. | ||||
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in ASU 2013-11 include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this Update are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company is currently evaluating the impact of these amendments. | ||||
ASU 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan though completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments require interim and annual disclosure of both the amount of the foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact of this amendment. |
1_Summary_of_Significant_Accou2
1. Summary of Significant Accounting Policies: Intangible Assets: Schedule of Intangible Assets (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Intangible Assets | ' | ||
2013 | 2012 | ||
Core Deposit Premium (cost) | $2,449,488 | $2,449,488 | |
Less accumulated amortization | -2,449,488 | -2,313,755 | |
$- | $135,733 |
1_Summary_of_Significant_Accou3
1. Summary of Significant Accounting Policies: Comprehensive Loss: Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Comprehensive Income (Loss) | ' | |||
31-Dec-13 | ||||
Before tax | Tax | Net of tax | ||
amount | benefit | Amount | ||
Unrealized loss on securities: | ||||
Unrealized holding loss arising during period | ($539,109) | $177,906 | ($361,203) | |
Less: reclassification adjustment for gains (losses) | ||||
realized in net loss | - | - | - | |
Other comprehensive loss, net | ($539,109) | $177,906 | ($361,203) | |
31-Dec-12 | ||||
Before tax | Tax | Net of tax | ||
amount | benefit | Amount | ||
Unrealized loss on securities | ||||
Unrealized holding loss arising during period | ($6,990) | $2,307 | ($4,684) | |
Less: reclassification adjustment for gains (losses) | ||||
realized in net loss | - | - | - | |
Other comprehensive loss, net | ($6,990) | $2,307 | ($4,684) |
3_Investments_Schedule_of_Avai
3. Investments: Schedule of Available-for-sale Securities Reconciliation (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||
(In 000’s) | 2013 | ||||
Gross | Gross | ||||
Amortized | Unrealized | unrealized | Fair | ||
Cost | Gains | losses | value | ||
Available-for-sale: | |||||
U.S. Government agency securities | $4,097 | $- | -295 | $3,802 | |
Government Sponsored Enterprises residential mortgage-backed securities | $5,841 | 36 | -228 | 5,649 | |
Investments in money market funds | 129 | - | - | 129 | |
$10,067 | $36 | ($523) | $9,580 | ||
2012 | |||||
Gross | Gross | ||||
Amortized | Unrealized | unrealized | Fair | ||
Cost | Gains | losses | Value | ||
Available-for-sale: | |||||
Government Sponsored Enterprises residential mortgage-backed securities | $847 | $51 | $- | $898 | |
Investments in money market funds | 129 | - | - | 129 | |
$976 | $51 | $- | $1,027 |
3_Investments_Heldtomaturity_S
3. Investments: Held-to-maturity Securities (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Held-to-maturity Securities | ' | ||||
Held-to-maturity: | |||||
U.S. Government agency securities | $3,605 | $159 | ($4) | $3,760 | |
Government Sponsored Enterprises residential mortgage-backed securities | 8,290 | 437 | -1 | 8,726 | |
$11,895 | $596 | ($5) | $12,486 |
3_Investments_Schedule_of_Unre
3. Investments: Schedule of Unrealized Loss on Investments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||
Number | Less than 12 months | 12 months or longer | Total | ||||||
Description of | of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||
Securities | securities | value | Losses | Value | Losses | value | losses | ||
U.S. Government | |||||||||
agency securities | 15 | $3,576 | ($270) | $225 | ($25) | $3,801 | $(295 | ) | |
Mortgage backed | |||||||||
securities | 21 | $4,777 | ($228) | «R7JPASLX»$]- | $- | $4,777 | $(228 | ) | |
Total temporarily | |||||||||
impaired investment | |||||||||
securities | 36 | $8,353 | ($498) | $225 | ($25) | $8,578 | $(523 | ) | |
The table below indicates the length of time individual securities held-to-maturity have been in a continuous unrealized loss position at December 31, 2012 (in thousands): | |||||||||
Number | Less than 12 months | 12 months or longer | Total | ||||||
Description of | of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||
Securities | securities | value | Losses | Value | Losses | value | Losses | ||
U.S. Government | |||||||||
agency securities | 3 | $746 | ($4) | $- | $- | $746 | ($4) | ||
Mortgage backed | |||||||||
securities | 2 | $253 | ($1) | $- | $- | $253 | ($1) | ||
Total temporarily | |||||||||
impaired investment | |||||||||
securities | 5 | $999 | ($5) | $- | $- | $999 | ($5) |
3_Investments_Investments_Clas
3. Investments: Investments Classified by Contractual Maturity Date (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Investments Classified by Contractual Maturity Date | ' | ||
Amortized | Fair | ||
Cost | Value | ||
Available-for-sale: | |||
Due in one year | $- | $- | |
Due after one year through five years | - | - | |
Due after five years through ten years | 4,097 | 3,802 | |
Government-sponsored enterprises | 5,841 | 5,649 | |
residential mortgage-backed securities | |||
Total debt securities | 9,938 | 9,451 | |
Investments in money market funds | 129 | 129 | |
$10,067 | $9,580 | ||
4_Loans_and_Allowance_For_Loan1
4. Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | ||
December 31, | December 31, | ||
(In 000's) | 2013 | 2012 | |
Commercial and industrial: | |||
Commercial | $1,658 | $1,462 | |
SBA loans | 585 | 125 | |
Asset-based | 2,067 | 2,147 | |
Total commercial and industrial | 4,310 | 3,734 | |
Commercial real estate: | |||
Commercial mortgages | 17,343 | 14,720 | |
SBA loans | 566 | 621 | |
Construction | 2,456 | 3,398 | |
Religious organizations | 12,597 | 12,642 | |
Total commercial real estate | 32,962 | 31,381 | |
Home equity loans | |||
Home equity lines of credit | 1,176 | 1,453 | |
1-4 family residential mortgages | 24 | 26 | |
Home equity loans | 2,709 | 3,140 | |
Total consumer real estate | 3,909 | 4,619 | |
Total real estate | 36,871 | 36,000 | |
Consumer and other: | |||
Consumer installment | 16 | 30 | |
Student loans | 1,366 | 1,588 | |
Other | 148 | 150 | |
Total consumer and other | 1,530 | 1,768 | |
Loans, net | $42,711 | $41,502 |
4_Loans_and_Allowance_For_Loan2
4. Loans and Allowance For Loan Losses: Schedule of Activity in Related Party Loans (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Activity in Related Party Loans | ' | ||
2013 | 2012 | ||
Balance outstanding at December 31, | $1,572,026 | $1,702,648 | |
Principal additions | 65,800 | 30,000 | |
Disaffiliations | -718,007 | - | |
Principal reductions | (60,958 | -160,623 | |
Balance outstanding at December 31, | $858,861 | $1,572,026 |
4_Loans_and_Allowance_For_Loan3
4. Loans and Allowance For Loan Losses: Past Due Financing Receivables (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Tables/Schedules | ' | ||||||
Past Due Financing Receivables | ' | ||||||
(In 000's) | Accruing | ||||||
Loans | Loans 90 or | ||||||
30-89 Days | More Days | Total Past | Current | ||||
Past Due | Past Due | Nonaccrual | Due Loans | Loans | Total Loans | ||
Commercial and industrial: | |||||||
Commercial | $- | $- | $444 | $444 | $1,214 | $1,658 | |
SBA loans | - | - | 130 | 130 | 455 | 585 | |
Asset-based | - | - | - | - | 2,067 | 2,067 | |
Total Commercial and industrial | - | - | 574 | 574 | 3,736 | 4,310 | |
Commercial real estate: | |||||||
Commercial mortgages | 22 | 442 | 630 | 1,094 | 16,249 | 17,343 | |
SBA loans | 184 | - | - | 184 | 382 | 566 | |
Construction | - | - | - | - | 2,456 | 2,456 | |
Religious organizations | - | - | 629 | 629 | 11,968 | 12,597 | |
Total Commercial real estate | 206 | 442 | 1,259 | 1,907 | 31,055 | 32,962 | |
Consumer real estate: | |||||||
Home equity loans | 209 | 147 | 115 | 471 | 705 | 1,176 | |
Home equity lines of credit | - | - | - | - | 24 | 24 | |
1-4 family residential mortgages | 125 | - | 242 | 367 | 2,342 | 2,709 | |
Total consumer real estate | 334 | 147 | 357 | 838 | 3,071 | 3,909 | |
Total real estate | 540 | 589 | 1,616 | 2,745 | 34,126 | 36,871 | |
Consumer and other: | |||||||
Consumer installment | - | - | - | - | 16 | 16 | |
Student loans | 87 | 141 | - | 228 | 1,138 | 1,366 | |
Other | 5 | - | - | 5 | 143 | 148 | |
Total consumer and other | 92 | 141 | - | 233 | 1,297 | 1,530 | |
Total loans | $632 | $730 | $2,190 | $3,552 | $39,159 | $42,711 | |
An age analysis of past due loans, segregated by class of loans, as of December 31, 2012 follows: | |||||||
(In 000's) | Accruing | ||||||
Loans | Loans 90 or | ||||||
30-89 Days | More Days | Total Past | Current | ||||
Past Due | Past Due | Nonaccrual | Due Loans | Loans | Total Loans | ||
Commercial and industrial: | |||||||
Commercial | $15 | $- | $873 | 888 | $574 | $1,462 | |
SBA loans | - | - | - | - | 125 | 125 | |
Asset-based | 83 | - | 99 | 182 | 1,965 | 2,147 | |
Total Commercial and industrial | 98 | - | 972 | 1,070 | 2,664 | 3,734 | |
Commercial real estate: | |||||||
Commercial mortgages | 306 | - | 649 | 955 | 13,765 | 14,720 | |
SBA loans | - | - | - | - | 621 | 621 | |
Construction | - | - | - | - | 3,398 | 3,398 | |
Religious organizations | - | - | 674 | 674 | 11,968 | 12,642 | |
Total Commercial real estate | 306 | - | 1,323 | 1,629 | 29,752 | 31,381 | |
Consumer real estate: | |||||||
Home equity loans | 274 | 44 | 63 | 381 | 1,072 | 1,453 | |
Home equity lines of credit | - | 26 | - | 26 | - | 26 | |
1-4 family residential mortgages | 69 | - | 226 | 295 | 2,845 | 3,140 | |
Total consumer real estate | 343 | 70 | 289 | 702 | 3,917 | 4,619 | |
Total real estate | 649 | 70 | 1,612 | 2,331 | 33,669 | 36,000 | |
Consumer and other: | |||||||
Consumer installment | - | - | - | - | 30 | 30 | |
Student loans | 87 | 141 | - | 228 | 1,360 | 1,588 | |
Other | 5 | - | - | 5 | 145 | 150 | |
Total consumer and other | 92 | 141 | - | 233 | 1,535 | 1,768 | |
Total loans | $839 | $211 | $2,584 | $3,634 | $37,867 | $41,502 | |
4_Loans_and_Allowance_For_Loan4
4. Loans and Allowance For Loan Losses: Impaired Loans (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Tables/Schedules | ' | |||||||
Impaired Loans | ' | |||||||
(In 000’s) | Unpaid | Recorded | Recorded | Total | Average | Interest | ||
Contractual | Investment | Investment | recognized | |||||
Principal | With No | With | Recorded | Related | Recorded | on impaired | ||
Balance | Allowance | Allowance | Investment | Allowance | Investment | loans | ||
Commercial and industrial: | ||||||||
Commercial | $444 | $47 | $397 | $444 | $330 | $446 | $- | |
SBA loans | 48 | - | 48 | 48 | 48 | 49 | 1 | |
Asset-based | - | - | - | - | - | - | - | |
Total Commercial and industrial | 492 | 47 | 445 | 492 | 378 | 495 | 1 | |
Commercial real estate: | ||||||||
Commercial mortgages | 630 | 630 | - | 630 | - | 579 | - | |
SBA Loans | 130 | 130 | - | 130 | - | 161 | 2 | |
Religious Organizations | 630 | 630 | - | 630 | - | 630 | - | |
Total Commercial real estate | 1,390 | 1,390 | - | 1,390 | - | 1,370 | 2 | |
Total Loans | $1,882 | $1,437 | $445 | $1,882 | $378 | $1,865 | $3 | |
Year-end 2012 impaired loans are set forth in the following table. | ||||||||
(In 000’s) | Unpaid | Recorded | Recorded | Total | Average | Interest | ||
Contractual | Investment | Investment | recognized | |||||
Principal | With No | With | Recorded | Related | Recorded | on impaired | ||
Balance | Allowance | Allowance | Investment | Allowance | Investment | loans | ||
Commercial and industrial: | ||||||||
Commercial | $873 | $78 | $795 | $873 | $695 | $541 | $11 | |
SBA loans | 49 | - | 49 | 49 | 49 | 29 | - | |
Asset-based | 99 | - | 99 | 99 | 99 | 119 | - | |
Total Commercial and industrial | 1,021 | 78 | 943 | 1,021 | 843 | 689 | 11 | |
Commercial real estate: | ||||||||
Commercial mortgages | 649 | 649 | - | 649 | - | 681 | 1 | |
SBA Loans | - | - | - | - | - | - | - | |
Religious Organizations | 674 | 674 | - | 674 | - | 420 | 27 | |
Total Commercial real estate | 1,323 | 1,323 | - | 1,323 | - | 1,101 | 28 | |
Total Loans | $2,344 | $1,401 | $943 | $2,344 | $843 | $1,790 | $39 | |
4_Loans_and_Allowance_For_Loan5
4. Loans and Allowance For Loan Losses: Bank Loans by Class (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Tables/Schedules | ' | |||||||
Bank Loans by Class | ' | |||||||
The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above. | ||||||||
(In 000's) | Commercial Loans, December 31, 2013 | |||||||
Good/ Excellent | Satisfactory | Pass | Special Mention | Substandard | Doubtful | Total | ||
Commercial and industrial: | ||||||||
Commercial | $250 | $743 | $220 | - | $52 | $393 | $1,658 | |
SBA loans | - | 497 | - | 40 | 48 | - | 585 | |
Asset-based | - | 1,897 | 124 | 46 | - | - | 2,067 | |
250 | 3,137 | 344 | 86 | 100 | 393 | $4,310 | ||
Commercial real estate: | ||||||||
Commercial mortgages | - | 15,232 | 883 | - | 912 | 316 | 17,343 | |
SBA Loans | - | 265 | 171 | - | 130 | - | 566 | |
Construction | - | 2,456 | - | - | - | - | 2,456 | |
Religious organizations | - | 10,414 | 931 | 623 | 629 | - | 12,597 | |
- | 28,367 | 1,985 | 623 | 1,671 | 316 | 32,962 | ||
Total commercial loans | $250 | $31,504 | $2,329 | $709 | $1,771 | $709 | $37,272 | |
Residential Mortgage and Consumer Loans December 31, 2013 | ||||||||
- Performing/Nonperforming | ||||||||
Performing | Nonperforming | Total | ||||||
Consumer Real Estate: | ||||||||
Home equity | $1,061 | $115 | $1,176 | |||||
Home equity line of credit | 24 | - | 24 | |||||
1-4 family residential mortgages | 2,467 | 242 | 2,709 | |||||
3,552 | 357 | 3,909 | ||||||
Consumer Other: | ||||||||
Consumer Installment | 16 | - | 16 | |||||
Student loans | 1,366 | - | 1,366 | |||||
Other | 148 | - | 148 | |||||
1,530 | - | 1,530 | ||||||
Total consumer loans | $5,082 | $357 | $5,439 | |||||
Total loans | $42,711 | |||||||
(In 000's) | ||||||||
Commercial Loans, December 31, 2012 | ||||||||
Good/ Excellent | Satisfactory | Pass | Special Mention | Substandard | Doubtful | Total | ||
Commercial and industrial: | ||||||||
Commercial | $250 | $104 | $15 | $220 | $480 | $393 | $1,462 | |
SBA loans | - | 27 | - | 49 | 49 | - | 125 | |
Asset-based | - | 1,869 | 125 | 54 | 99 | - | 2,147 | |
250 | 2,000 | 140 | 323 | 628 | 393 | 3,734 | ||
Commercial real estate: | ||||||||
Commercial mortgages | - | 12,678 | 1,322 | - | 403 | 317 | 14,721 | |
SBA Loans | - | 621 | - | - | - | - | 621 | |
Construction | - | 2,767 | - | - | 631 | - | 3,398 | |
Religious organizations | - | 8,183 | 3,623 | 162 | 674 | - | 12,642 | |
- | 24,349 | 4,945 | 162 | 1,708 | 317 | 31,381 | ||
Total commercial loans | $250 | $26,249 | $5,085 | $485 | $2,336 | $710 | $33,115 | |
Residential Mortgage and Consumer Loans December 31, 2012 | ||||||||
- Performing/Nonperforming | ||||||||
Performing | Nonperforming | Total | ||||||
Consumer Real Estate: | ||||||||
Home equity | $1,390 | $63 | $1,453 | |||||
Home equity line of credit | 26 | - | 26 | |||||
1-4 family residential mortgages | 2,914 | 226 | 3,140 | |||||
4,330 | 289 | 4,619 | ||||||
Consumer Other: | ||||||||
Consumer Installment | 30 | - | 30 | |||||
Student loans | 1,588 | - | 1,588 | |||||
Other | 150 | - | 150 | |||||
1,768 | - | 1,768 | ||||||
Total consumer loans | $6,098 | $289 | $6,387 | |||||
Total loans | $41,502 |
4_Loans_and_Allowance_For_Loan6
4. Loans and Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Allowance for Credit Losses on Financing Receivables | ' | |||||
(in 000's) | For the Year Ended December 31, 2013 | |||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||
Beginning balance | $891 | $308 | $5 | $- | $1,204 | |
Provision for loan losses | 113 | (106) | 50 | 18 | 75 | |
Charge-offs | (524) | - | (5) | (10) | (539) | |
Recoveries | 3 | 78 | 9 | 9 | 99 | |
Net charge-offs | (521) | 78 | 4 | (1) | (440) | |
Ending balance | $483 | $280 | $59 | $17 | $839 | |
(in 000's) | For the Year Ended December 31, 2012 | |||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||
Beginning balance | $387 | $412 | $68 | - | $867 | |
Provision for loan losses | 560 | (112) | - | 5 | 453 | |
Charge-offs | -56 | - | -80 | -21 | -157 | |
Recoveries | - | 8 | 17 | 16 | 41 | |
Net charge-offs | (56) | 8 | (63) | (5) | (116) | |
Ending balance | $891 | $308 | $5 | - | $1,204 | |
(in 000's) | As of December 31, 2013 | |||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | $378 | $- | $- | $- | $378 | |
Loans collectively evaluated for impairment | 105 | 280 | 59 | 17 | 461 | |
$483 | $280 | $59 | $17 | $839 | ||
Loans, ending balance: | ||||||
Loans individually evaluated for impairment | $492 | $1,390 | $- | $- | $1,882 | |
Loans collectively evaluated for impairment | 3,818 | 31,572 | 3,909 | 1,530 | 40,829 | |
Total | $4,310 | $32,962 | $3,909 | $1,530 | $42,711 | |
(in 000's) | As of December 31, 2012 | |||||
Commercial and industrial | Commercial real estate | Consumer real estate | Consumer and other loans | Total | ||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | $843 | - | - | - | $843 | |
Loans collectively evaluated for impairment | 48 | 308 | 5 | - | 361 | |
$891 | $308 | $5 | - | $1,204 | ||
Loans, ending balance: | ||||||
Loans individually evaluated for impairment | $1,021 | $1,323 | - | - | 2,344 | |
Loans collectively evaluated for impairment | 2,713 | 30,058 | 4,619 | 1,768 | 39,158 | |
Total | $3,734 | $31,381 | $4,619 | $1,768 | $41,502 | |
5_Bank_Premises_and_Equipment_
5. Bank Premises and Equipment: Bank Premises and Equipment (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Bank Premises and Equipment | ' | |||
(In 000’s) | Estimated | |||
useful life | 2013 | 2012 | ||
Buildings and leasehold improvements | 10-15 years | $781 | $874 | |
Furniture and equipment | 3- 7 years | 1,107 | 775 | |
$1,888 | $1,649 | |||
Less accumulated depreciation | ($1,239) | ($1,086) | ||
649 | 563 |
5_Bank_Premises_and_Equipment_1
5. Bank Premises and Equipment: Schedule of Future minimum lease payments under operating leases (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
Tables/Schedules | ' | |
Schedule of Future minimum lease payments under operating leases | ' | |
(In 000’s) | ||
Operating leases | ||
Year ending December 31, | ||
2014 | $454 | |
2015 | 446 | |
2016 | 460 | |
2017 | 397 | |
2018 | 406 | |
Thereafter | 1,631 | |
Total minimum lease payments | $3,794 |
6_Other_Real_Estate_Owned_Comp
6. Other Real Estate Owned: Components of Other Real Estate Owned (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Components of Other Real Estate Owned | ' | ||
(in 000’s) | 2013 | 2012 | |
Commercial real estate | $191 | $206 | |
Residential real estate | 242 | 569 | |
Total | $433 | $775 |
6_Other_Real_Estate_Owned_Othe
6. Other Real Estate Owned: Other Real Estate Owned (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Other Real Estate Owned | ' | ||
A summary of the change in other real estate owned follows: | |||
Year Ended | Year Ended | ||
(in 000’s) | 31-Dec-13 | 31-Dec-12 | |
Beginning Balance | $775 | $1,285 | |
Additions, transfers from loans | - | 156 | |
Sales | -185 | -434 | |
590 | 1,007 | ||
Less: write-downs | -157 | -232 | |
Ending Balance | $433 | $775 |
6_Other_Real_Estate_Owned_Comp1
6. Other Real Estate Owned: Components of Net Expense of Other Real Estate (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Components of Net Expense of Other Real Estate | ' | ||
(in 000’s) | Year ended | Year ended | |
31-Dec-13 | 31-Dec-12 | ||
Insurance | $16 | $24 | |
Legal fees | - | 5 | |
Maintenance | 9 | 3 | |
Professional fees | - | 8 | |
Real estate taxes | 24 | 99 | |
Utilities | 5 | 21 | |
Transfer-in write-up | - | -43 | |
Impairment charges | 157 | 232 | |
Total | $211 | $349 |
7_Deposits_Schedule_of_Maturit
7. Deposits: Schedule of Maturities of Time Deposits (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Maturities of Time Deposits | ' | ||
(In 000’s) | |||
2014 | $14,383 | ||
2015 | 677 | ||
2016 | 143 | ||
2017 | 110 | ||
2018 | 107 | ||
Thereafter | 43 | ||
$15,463 |
9_Income_Taxes_Schedule_of_Def
9. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Deferred Tax Assets and Liabilities | ' | ||
December 31, | |||
2013 | 2012 | ||
Deferred tax assets(liabilities): | |||
Provision for loan losses | $191,387 | $333,853 | |
Unrealized (loss) gain on investment securities | 161,082 | -16,824 | |
Depreciation | 31,199 | 94,393 | |
Net operating carryforwards | 3,198,011 | 2,897,243 | |
Other, net | 258,692 | 134,614 | |
Valuation allowance for deferred tax assets | -3,679,289 | -3,460,103 | |
Net deferred tax assets (liabilities) | $161,082 | ($16,824) |
9_Income_Taxes_Schedule_of_Eff
9. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||
2013 | 2012 | ||
Effective rate reconciliation: | |||
Tax at statutory rate (34%) | ($227,425) | ($345,524) | |
Nondeductible expenses | 6,070 | 6,507 | |
Increase in valuation allowance | 219,186 | 405,335 | |
Other | 2,169 | -66,318 | |
Total tax expense | $- | $- | |
10_Financial_Instrument_Commit1
10. Financial Instrument Commitments: Schedule of Financial Instruments Owned and Pledged as Collateral (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Financial Instruments Owned and Pledged as Collateral | ' | ||
2013 | 2012 | ||
Commitments to extend credit | $10,278,928 | $9,484,309 | |
Outstanding letters of credit | 1,050,832 | 1,173,374 |
11_Fair_Value_Measurements_Sch
11. Fair Value Measurements: Schedule of Fair Value of Assets on a Recurring Basis (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Fair Value of Assets on a Recurring Basis | ' | ||||
(in 000’s) | Fair Value Measurements at Reporting Date Using: | ||||
Assets/Liabilities Measured at Fair Value at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||
31-Dec-13 | |||||
Investment securities available-for-sale: | |||||
U.S. Government agency securities | $3,802 | $- | $3,802 | - | |
Government Sponsored Enterprises residential mortgage-backed securities | 5,649 | - | $5,649 | - | |
Money Market Funds | 129 | 129 | - | - | |
Total | $9,580 | $129 | $9,541 | - | |
Loans held for sale | $1,646 | $- | $1,646 | - | |
Loans held at fair value | $447 | $- | $- | $447 | |
When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs. These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows: | |||||
(in 000’s) | |||||
Assets measured at fair value | Fair value | Principal valuation techniques | Significant observable inputs | Range of inputs | |
Loans held at fair value: | $447 | Discounted cash flow | Constant prepayment rate | 7.74% to 7.985% | |
Weighted average discount rate | 9.106% to 9.111% | ||||
Weighted average life | 4.04 yrs to 4.08 yrs | ||||
Average projected default rate | 18% | ||||
Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period. | |||||
The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value for the year ended December 31, 2013: | |||||
(in 000’s) | Loans held at fair value | ||||
Balance at December 31, 2012 | $- | ||||
Origination of loans | 491 | ||||
Principal repayments | - | ||||
Change in fair value of financial instruments | -45 | ||||
Balance at December 31, 2013 | $447 | ||||
(in 000’s) | Fair Value Measurements at Reporting Date Using: | ||||
Assets/Liabilities Measured at | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||
Fair Value at | (Level 1) | ||||
31-Dec-12 | |||||
Investment securities available-for-sale: | |||||
Government Sponsored Enterprises residential mortgage-backed securities | $898 | $- | $898 | - | |
Money Market Funds | 129 | 129 | - | - | |
Total | $1,027 | $129 | $898 | ||
11_Fair_Value_Measurements_Sch1
11. Fair Value Measurements: Schedule of Fair Value of Assets on a Nonrecurring Basis (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Fair Value of Assets on a Nonrecurring Basis | ' | |||||
The following table presents the assets and liabilities carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2013, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2013. | ||||||
Carrying Value at December 31, 2013: | ||||||
(in 000’s) | Quoted Prices in Active markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total fair value gain (loss) during the year ended | ||
(Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | |||
Total | ||||||
Impaired Loans | $1,304 | - | - | $1,304 | -59 | |
Other real estate owned | 433 | - | - | 433 | (157) | |
The following table presents the assets carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2012, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2012. | ||||||
Carrying Value at December 31, 2012: | ||||||
(in 000’s) | Quoted Prices in Active markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total fair value gain (loss) during the year ended | ||
(Level 1) | (Level 2) | (Level 3) | 31-Dec-12 | |||
Total | ||||||
Impaired Loans | $1,501 | - | - | $1,501 | ($843) | |
Other real estate owned | 775 | - | - | 775 | (232) |
11_Fair_Value_Measurements_Sch2
11. Fair Value Measurements: Schedule of Fair Value of Assets and Liabilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Fair Value of Assets and Liabilities | ' | |||||
(in 000’s) | ||||||
Level in | 2013 | 2012 | ||||
Value | Carrying | Fair | Carrying | Fair | ||
Assets: | Hierarchy | Amount | Value | Amount | Value | |
Cash and cash equivalents | Level 1 | $5,790 | $5,790 | $10,236 | $10,236 | |
Available for sale securities | -1 | 9,580 | 9,580 | 1,027 | 1,027 | |
Held to maturity securities | Level 2 | - | - | 11,895 | 12,486 | |
Loans held for sale | Level 2 | 1,646 | 1,646 | - | - | |
Loans, net of allowance for loan losses | -2 | 42,711 | 43,304 | 41,502 | 40,325 | |
Interest receivable | Level 2 | 256 | 256 | 310 | 310 | |
Liabilities: | ||||||
Demand deposits | Level 2 | 28,658 | 28,658 | 29,851 | 29,851 | |
Savings deposits | Level 2 | 12,988 | 12,988 | 14,239 | 14,239 | |
Time deposits | Level 2 | 15,463 | 15,472 | 16,886 | 16,902 | |
Interest Payable | Level 2 | 13 | 13 | 30 | 30 |
12_Consolidated_Financial_Info1
12. Consolidated Financial Information-parent Company Only: Condensed Balance Sheet (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Condensed Balance Sheet | ' | ||
Condensed Balance Sheets | |||
(Dollars in thousands) | 2013 | 2012 | |
Assets: | |||
Cash and cash equivalents | $- | $- | |
Investment in United Bank of Philadelphia | 3,210 | 4,240 | |
Total assets | $3,210 | $4,240 | |
Shareholders’ equity: | |||
Series A preferred stock | 1 | 1 | |
Common stock | 11 | 11 | |
Additional paid-in capital | 14,750 | 14,750 | |
Accumulated deficit | -11,225 | -10,556 | |
Net unrealized holding gains on securities available-for-sale | (327) | 34 | |
Total shareholders’ equity | $3,210 | $4,240 |
12_Consolidated_Financial_Info2
12. Consolidated Financial Information-parent Company Only: Condensed Statements of Operations (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Condensed Statements of Operations | ' | ||
Condensed Statements of Operations | |||
Years ended December 31, | |||
(Dollars in thousands) | 2013 | 2012 | |
Other Expenses | $- | ($20) | |
Equity in net loss of subsidiary | -669 | -996 | |
Net loss | ($669) | ($1,016) |
12_Consolidated_Financial_Info3
12. Consolidated Financial Information-parent Company Only: Condensed Statements of Cash Flows (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Condensed Statements of Cash Flows | ' | ||
Condensed Statements of Cash Flows | |||
Years ended December 31, | |||
(Dollars in thousands) | 2013 | 2012 | |
Cash flows from operating activities: | |||
Net loss | ($669) | ($1,016) | |
Adjustments: | |||
Equity in net loss of subsidiary | 669 | 996 | |
Net cash used in operating activities | - | -20 | |
Cash and cash equivalents at beginning of year | - | 20 | |
Cash and cash equivalents at end of year | $- | $- |
13_Regulatory_Matters_and_Goin1
13. Regulatory Matters and Going Concern: Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Tables/Schedules | ' | ||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ' | ||||||
To be well capitalized under prompt corrective | |||||||
For capital adequacy purposes | action provisions | ||||||
Actual | |||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||
As of December 31, 2013: | |||||||
Total capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | $4,067 | 9.48% | $3,427 | 8.00% | N/A | ||
Bank | 4,067 | 9.48% | 3,427 | 8.00% | $4,284 | 10.00% | |
Tier I capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | 3,525 | 8.22% | 1,713 | 4.00% | N/A | ||
Bank | 3,525 | 8.22% | 1,713 | 4.00% | 2,570 | 6.00% | |
Tier I capital to average assets: | |||||||
Consolidated | 3,525 | 5.67% | 2,485 | 4.00% | N/A | ||
Bank | 3,525 | 5.%67 | 2,485 | 4.00% | 3,107 | 5.00% | |
To be well capitalized under prompt corrective | |||||||
For capital adequacy purposes | action provisions | ||||||
Actual | |||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||
As of December 31, 2012: | |||||||
Total capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | $4,584 | 11.16% | $3,287 | 8.00% | N/A | ||
Bank | 4,584 | 11.16% | 3,287 | 8.00% | $4,109 | 10.00% | |
Tier I capital to risk- | |||||||
weighted assets: | |||||||
Consolidated | 4,070 | 9.91 | 1,644 | 4.00% | N/A | ||
Bank | 4,070 | 9.91% | 1,644 | 4.00% | 2,465 | 6.00% | |
Tier I capital to average assets: | |||||||
Consolidated | 4,070 | 6.00% | 2,715 | 4.00% | N/A | ||
Bank | 4,070 | 6.00% | 2,715 | 4.00% | 3,394 | 5.00% |
15_Earnings_Per_Share_Computat1
15. Earnings Per Share Computation: Schedule of Earnings Per Shares Basic and Diluted (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Earnings Per Shares Basic and Diluted | ' | |||
Year ended December 31, 2013 | ||||
Loss | Shares | Per share | ||
(numerator) | (denominator) | amount | ||
Net loss | ($668,898) | |||
Basic EPS | ||||
Loss attributable to common stockholders | ($668,898) | 1,068,588 | ($0.63) | |
Diluted EPS | ||||
Loss attributable to common stockholders | ($668,898) | 1,068,588 | ($0.63) | |
Year ended December 31, 2012 | ||||
Loss | Shares | Per share | ||
(numerator) | (denominator) | amount | ||
Net loss | ($1,016,247) | |||
Basic EPS | ||||
Loss attributable to common stockholders | ($1,016,247) | 1,068,588 | ($0.95) | |
Diluted EPS | ||||
Loss attributable to common stockholders | ($1,016,247) | 1,068,588 | ($0.95) | |
1_Summary_of_Significant_Accou4
1. Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Entity Incorporation, Date of Incorporation | 8-Apr-93 |
1_Summary_of_Significant_Accou5
1. Summary of Significant Accounting Policies: Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 1999 | |
Details | ' | ' | ' |
Acquired Bank Deposits Prior to Acquisition | ' | ' | $31,500,000 |
Amortization of core deposit intangible | $135,733 | $178,078 | ' |
1_Summary_of_Significant_Accou6
1. Summary of Significant Accounting Policies: Intangible Assets: Schedule of Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Core Deposit Premium (cost) | $2,449,488 | $2,449,488 |
Less accumulated amortization | -2,449,488 | -2,313,755 |
Intangible Assets, Net (Excluding Goodwill), Total | $0 | $135,733 |
1_Summary_of_Significant_Accou7
1. Summary of Significant Accounting Policies: Other Real Estate Owned (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Foreclosed real estate | $433,000 | $775,000 |
1_Summary_of_Significant_Accou8
1. Summary of Significant Accounting Policies: Comprehensive Loss: Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Unrealized holding loss arising during period, before tax amount | ($539,109) | ($6,990) |
Unrealized holding loss arising during period, tax benefit | 177,906 | 2,307 |
Unrealized holding loss arising during period, net of tax amount | -361,203 | -4,684 |
Less: reclassification adjustment for gains (losses) realized in net loss, before tax amount | ' | ' |
Less: reclassification adjustment for gains (losses) realized in net loss, tax benefit | ' | ' |
Less: reclassification adjustment for gains (losses) realized in net loss, net of tax amount | ' | ' |
Other comprehensive loss, net, before tax amount | -539,109 | -6,990 |
Other comprehensive loss, net, tax benefit | 177,906 | 2,307 |
Other comprehensive loss, net, net after tax amount | ($361,203) | ($4,684) |
2_Cash_and_Due_From_Bank_Balan1
2. Cash and Due From Bank Balances (Details) (USD $) | Dec. 31, 2013 |
Details | ' |
Reserve balances, due from banks | $100,000 |
3_Investments_Schedule_of_Avai1
3. Investments: Schedule of Available-for-sale Securities Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Available-for-sale Securities, Amortized Cost Basis | $10,067,000 | $976,000 |
Available-for-sale Securities, Gross Unrealized Gain | 36,000 | 51,000 |
Available-for-sale Securities, Gross Unrealized Loss | -523,000 | ' |
Available-for-sale, at fair value | 9,579,979 | 1,027,293 |
US Government Agencies Debt Securities | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 4,097,000 | ' |
Available-for-sale Securities, Gross Unrealized Gain | ' | ' |
Available-for-sale Securities, Gross Unrealized Loss | -295,000 | ' |
Available-for-sale, at fair value | 3,802,000 | ' |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 5,841,000 | 847,000 |
Available-for-sale Securities, Gross Unrealized Gain | 36,000 | 51,000 |
Available-for-sale Securities, Gross Unrealized Loss | -228,000 | ' |
Available-for-sale, at fair value | 5,649,000 | 898,000 |
Money Market Funds | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 129,000 | 129,000 |
Available-for-sale Securities, Gross Unrealized Gain | ' | ' |
Available-for-sale Securities, Gross Unrealized Loss | ' | ' |
Available-for-sale, at fair value | $129,000 | $129,000 |
3_Investments_Heldtomaturity_S1
3. Investments: Held-to-maturity Securities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $11,895,000 | ' |
Held-to-maturity Securities, Unrecognized Holding Gain | 596,000 | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | -5,000 | ' |
Held-to-maturity, fair value | 12,485,687 | 0 |
US Government Agencies Debt Securities | ' | ' |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 3,605,000 | ' |
Held-to-maturity Securities, Unrecognized Holding Gain | 159,000 | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | -4,000 | ' |
Held-to-maturity, fair value | 3,760,000 | ' |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ' | ' |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 8,290,000 | ' |
Held-to-maturity Securities, Unrecognized Holding Gain | 437,000 | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | -1,000 | ' |
Held-to-maturity, fair value | $8,726,000 | ' |
3_Investments_Details
3. Investments (Details) (USD $) | 2 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Held-to-maturity, at amortized cost (fair value of $12,485,687 at December 31, 2012) | ' | ' | $11,895,037 |
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | ' | 0 | 2,571 |
Held-to-maturity Securities, Sold Security, at Carrying Value | 7,400,000 | ' | ' |
Held-to-maturity Securities, Sold Security, Realized Gain (Loss) | 378,000 | ' | ' |
Held-to-maturity Securities Pledged as Collateral | ' | 7,210,399 | 10,041,655 |
US Government Agencies Debt Securities | ' | ' | ' |
Held-to-maturity, at amortized cost (fair value of $12,485,687 at December 31, 2012) | ' | $1,250,000 | $7,725,000 |
3_Investments_Schedule_of_Unre1
3. Investments: Schedule of Unrealized Loss on Investments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Held-to-maturity, Securities in Unrealized Loss Positions, Number of securities | 36 | 5 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $8,353 | $999 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -498 | -5 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 8,578 | 999 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss | -523 | -5 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 225 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | -25 | ' |
US Government Agencies Debt Securities | ' | ' |
Held-to-maturity, Securities in Unrealized Loss Positions, Number of securities | 15 | 3 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,576 | 746 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -270 | -4 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 3,801 | 746 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss | -295 | -4 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 225 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | -25 | 0 |
Collateralized Mortgage Backed Securities | ' | ' |
Held-to-maturity, Securities in Unrealized Loss Positions, Number of securities | 21 | 2 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,777 | 253 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -228 | -1 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 4,777 | 253 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss | -228 | -1 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | ' | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | ' | ' |
3_Investments_Investments_Clas1
3. Investments: Investments Classified by Contractual Maturity Date (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Amortized Cost, due in one year | ' | ' |
Fair Value, due in one year | ' | ' |
Amortized Cost, due after one year through five years | ' | ' |
Fair Value, due after one year through five years | ' | ' |
Amortized Cost, due after five years through ten years | 4,097,000 | ' |
Fair Value, due after five years through ten years | 3,802,000 | ' |
Available-for-sale Securities, Amortized Cost Basis | 10,067,000 | 976,000 |
Available-for-sale, at fair value | 9,579,979 | 1,027,293 |
Available-for-sale Debt Securities, Amortized Cost Basis | 9,938,000 | ' |
Available-for-sale Securities, Debt Securities | 9,451,000 | ' |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 5,841,000 | 847,000 |
Available-for-sale, at fair value | 5,649,000 | 898,000 |
Money Market Funds | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 129,000 | 129,000 |
Available-for-sale, at fair value | $129,000 | $129,000 |
4_Loans_and_Allowance_For_Loan7
4. Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial and industrial | $4,310,000 | $3,734,000 |
Commercial real estate | 32,962,000 | 31,381,000 |
Consumer real estate | 3,909,000 | 4,619,000 |
Total Real estate | 36,871,000 | 36,000,000 |
Consumer loans other | 1,530,000 | 1,768,000 |
Loans, net | 42,711,000 | 41,502,000 |
Commercial And Industrial | Commercial | ' | ' |
Commercial and industrial | 1,658,000 | 1,462,000 |
Commercial And Industrial | SBA Loans | ' | ' |
Commercial and industrial | 585,000 | 125,000 |
Commercial And Industrial | Asset Based Loans | ' | ' |
Commercial and industrial | 2,067,000 | 2,147,000 |
Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 566,000 | 621,000 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 17,343,000 | 14,720,000 |
Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 2,456,000 | 3,398,000 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 12,597,000 | 12,642,000 |
Consumer Real Estate | Home Equity Line of Credit | ' | ' |
Consumer real estate | 1,176,000 | 1,453,000 |
Consumer Real Estate | Family Residential Mortgage | ' | ' |
Consumer real estate | 24,000 | 26,000 |
Consumer Real Estate | Home Equity Loans | ' | ' |
Consumer real estate | 2,709,000 | 3,140,000 |
Consumer And Other Loans | Consumer Installment | ' | ' |
Consumer loans other | 16,000 | 30,000 |
Consumer And Other Loans | Student Loans | ' | ' |
Consumer loans other | 1,366,000 | 1,588,000 |
Consumer And Other Loans | Other | ' | ' |
Consumer loans other | $148,000 | $150,000 |
4_Loans_and_Allowance_For_Loan8
4. Loans and Allowance For Loan Losses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Loans and Leases Receivable, Deferred Income | $100,962 | $107,803 |
Unearned discount | 27,182 | 29,660 |
Commercial real estate | 32,962,000 | 31,381,000 |
Owner Occupied | ' | ' |
Commercial real estate | $16,500,000 | ' |
Religious Organizations | ' | ' |
Loans Receivable Portfolio Percentage (by segment) | 33.80% | ' |
4_Loans_and_Allowance_For_Loan9
4. Loans and Allowance For Loan Losses: Schedule of Activity in Related Party Loans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Balance outstanding, starting | $1,572,026 | $1,702,648 |
Principal additions | 65,800 | 30,000 |
Disafilliations | -718,007 | 0 |
Principal Reductions | -60,958 | -160,623 |
Balance outstanding, ending | $858,861 | $1,572,026 |
Recovered_Sheet1
4. Loans and Allowance For Loan Losses: Past Due Financing Receivables (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | $632 | $839 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 730 | 211 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,190 | 2,584 |
Financing Receivable, Recorded Investment, Past Due | 3,552 | 3,634 |
Financing Receivable, Recorded Investment, Current | 39,159 | 37,867 |
Total Loans | 42,711 | 41,502 |
Commercial And Industrial | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 98 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 574 | 972 |
Financing Receivable, Recorded Investment, Past Due | 574 | 1,070 |
Financing Receivable, Recorded Investment, Current | 3,736 | 2,664 |
Total Loans | 4,310 | 3,734 |
Commercial And Industrial | Commercial | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 15 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 444 | 873 |
Financing Receivable, Recorded Investment, Past Due | 444 | 888 |
Financing Receivable, Recorded Investment, Current | 1,214 | 574 |
Total Loans | 1,658 | 1,462 |
Commercial And Industrial | SBA Loans | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 130 | 0 |
Financing Receivable, Recorded Investment, Past Due | 130 | 0 |
Financing Receivable, Recorded Investment, Current | 455 | 125 |
Total Loans | 585 | 125 |
Commercial And Industrial | Asset Based Loans | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 83 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 99 |
Financing Receivable, Recorded Investment, Past Due | 0 | 182 |
Financing Receivable, Recorded Investment, Current | 2,067 | 1,965 |
Total Loans | 2,067 | 2,147 |
Commercial Real Estate Portfolio Segment | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 206 | 306 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 442 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,259 | 1,323 |
Financing Receivable, Recorded Investment, Past Due | 1,907 | 1,629 |
Financing Receivable, Recorded Investment, Current | 31,055 | 29,752 |
Total Loans | 32,962 | 31,381 |
Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 184 | 0 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Past Due | 184 | 0 |
Financing Receivable, Recorded Investment, Current | 382 | 621 |
Total Loans | 566 | 621 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 22 | 306 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 442 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 630 | 649 |
Financing Receivable, Recorded Investment, Past Due | 1,094 | 955 |
Financing Receivable, Recorded Investment, Current | 16,249 | 13,765 |
Total Loans | 17,343 | 14,720 |
Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 2,456 | 3,398 |
Total Loans | 2,456 | 3,398 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 629 | 674 |
Financing Receivable, Recorded Investment, Past Due | 629 | 674 |
Financing Receivable, Recorded Investment, Current | 11,968 | 11,968 |
Total Loans | 12,597 | 12,642 |
Consumer Real Estate | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 334 | 343 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 147 | 70 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 357 | 289 |
Financing Receivable, Recorded Investment, Past Due | 838 | 702 |
Financing Receivable, Recorded Investment, Current | 3,071 | 3,917 |
Total Loans | 3,909 | 4,619 |
Consumer Real Estate | Home Equity Line of Credit | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 26 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Past Due | 0 | 26 |
Financing Receivable, Recorded Investment, Current | 24 | 0 |
Total Loans | 24 | 26 |
Consumer Real Estate | Home Equity Loans | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 209 | 274 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 147 | 44 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 115 | 63 |
Financing Receivable, Recorded Investment, Past Due | 471 | 381 |
Financing Receivable, Recorded Investment, Current | 705 | 1,072 |
Total Loans | 1,176 | 1,453 |
Consumer Real Estate | Family Residential Mortgage | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 125 | 69 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 242 | 226 |
Financing Receivable, Recorded Investment, Past Due | 367 | 295 |
Financing Receivable, Recorded Investment, Current | 2,342 | 2,845 |
Total Loans | 2,709 | 3,140 |
Total Real Estate | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 540 | 649 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 589 | 70 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,616 | 1,612 |
Financing Receivable, Recorded Investment, Past Due | 2,745 | 2,331 |
Financing Receivable, Recorded Investment, Current | 34,126 | 33,669 |
Total Loans | 36,871 | 36,000 |
Consumer And Other Loans | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 92 | 92 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 141 | 141 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Past Due | 233 | 233 |
Financing Receivable, Recorded Investment, Current | 1,297 | 1,535 |
Total Loans | 1,530 | 1,768 |
Consumer And Other Loans | Consumer Installment | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 16 | 30 |
Total Loans | 16 | 30 |
Consumer And Other Loans | Student Loans | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 87 | 87 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 141 | 141 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Past Due | 228 | 228 |
Financing Receivable, Recorded Investment, Current | 1,138 | 1,360 |
Total Loans | 1,366 | 1,588 |
Consumer And Other Loans | Other | ' | ' |
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due | 5 | 5 |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Past Due | 5 | 5 |
Financing Receivable, Recorded Investment, Current | 143 | 145 |
Total Loans | $148 | $150 |
Recovered_Sheet2
4. Loans and Allowance For Loan Losses: Impaired Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired Financing Receivable, Unpaid Principal Balance | $1,882 | $2,344 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,437 | 1,401 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 445 | 943 |
Impaired Financing Receivable, Recorded Investment | 1,882 | 2,344 |
Impaired Financing Receivable, Related Allowance | 378 | 843 |
Impaired Financing Receivable, Average Recorded Investment | 1,865 | 1,790 |
Impaired Financing Receivable, Interest Income, Accrual Method | 3 | 39 |
Commercial And Industrial | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 492 | 1,021 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 47 | 78 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 445 | 943 |
Impaired Financing Receivable, Recorded Investment | 492 | 1,021 |
Impaired Financing Receivable, Related Allowance | 378 | 843 |
Impaired Financing Receivable, Average Recorded Investment | 495 | 689 |
Impaired Financing Receivable, Interest Income, Accrual Method | 1 | 11 |
Commercial And Industrial | Commercial | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 444 | 873 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 47 | 78 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 397 | 795 |
Impaired Financing Receivable, Recorded Investment | 444 | 873 |
Impaired Financing Receivable, Related Allowance | 330 | 695 |
Impaired Financing Receivable, Average Recorded Investment | 446 | 541 |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 11 |
Commercial And Industrial | SBA Loans | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 48 | 49 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 48 | 49 |
Impaired Financing Receivable, Recorded Investment | 48 | 49 |
Impaired Financing Receivable, Related Allowance | 48 | 49 |
Impaired Financing Receivable, Average Recorded Investment | 49 | 29 |
Impaired Financing Receivable, Interest Income, Accrual Method | 1 | 0 |
Commercial And Industrial | Asset Based Loans | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 99 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 99 |
Impaired Financing Receivable, Recorded Investment | 0 | 99 |
Impaired Financing Receivable, Related Allowance | 0 | 99 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 119 |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 |
Commercial Real Estate Portfolio Segment | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 1,390 | 1,323 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,390 | 1,323 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 1,390 | 1,323 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 1,370 | 1,101 |
Impaired Financing Receivable, Interest Income, Accrual Method | 2 | 28 |
Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 130 | 0 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 130 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 130 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 161 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method | 2 | 0 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 630 | 649 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 630 | 649 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 630 | 649 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 579 | 681 |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 1 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 630 | 674 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 630 | 674 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 630 | 674 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 630 | 420 |
Impaired Financing Receivable, Interest Income, Accrual Method | $0 | $27 |
Recovered_Sheet3
4. Loans and Allowance For Loan Losses: Bank Loans by Class (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial real estate | $32,962,000 | $31,381,000 |
Consumer real estate | 3,909,000 | 4,619,000 |
Consumer loans other | 1,530,000 | 1,768,000 |
Total loans | 42,711,000 | 41,502,000 |
Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 566,000 | 621,000 |
Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 17,343,000 | 14,720,000 |
Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 2,456,000 | 3,398,000 |
Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 12,597,000 | 12,642,000 |
Good Excellent | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 250,000 | 250,000 |
Good Excellent | Commercial And Industrial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 250,000 | 250,000 |
Good Excellent | Commercial And Industrial | Commercial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 250,000 | 250,000 |
Good Excellent | Commercial And Industrial | SBA Loans | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 0 | 0 |
Good Excellent | Commercial And Industrial | Asset Based | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 0 | 0 |
Good Excellent | Commercial Real Estate Portfolio Segment | ' | ' |
Commercial real estate | 0 | 0 |
Good Excellent | Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 0 | 0 |
Good Excellent | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 0 | 0 |
Good Excellent | Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 0 | 0 |
Good Excellent | Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 0 | 0 |
Satisfactory | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 31,504,000 | 26,249,000 |
Satisfactory | Commercial And Industrial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 3,137,000 | 2,000,000 |
Satisfactory | Commercial And Industrial | Commercial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 743,000 | 104,000 |
Satisfactory | Commercial And Industrial | SBA Loans | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 497,000 | 27,000 |
Satisfactory | Commercial And Industrial | Asset Based | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 1,897,000 | 1,869,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | ' | ' |
Commercial real estate | 28,367,000 | 24,349,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 265,000 | 621,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 15,232,000 | 12,678,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 2,456,000 | 2,767,000 |
Satisfactory | Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 10,414,000 | 8,183,000 |
Pass | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 2,329,000 | 5,085,000 |
Pass | Commercial And Industrial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 344,000 | 140,000 |
Pass | Commercial And Industrial | Commercial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 220,000 | 15,000 |
Pass | Commercial And Industrial | SBA Loans | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 0 | 0 |
Pass | Commercial And Industrial | Asset Based | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 124,000 | 125,000 |
Pass | Commercial Real Estate Portfolio Segment | ' | ' |
Commercial real estate | 1,985,000 | 4,945,000 |
Pass | Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 171,000 | 0 |
Pass | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 883,000 | 1,322,000 |
Pass | Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 0 | 0 |
Pass | Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 931,000 | 3,623,000 |
Special Mention | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 709,000 | 485,000 |
Special Mention | Commercial And Industrial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 86,000 | 323,000 |
Special Mention | Commercial And Industrial | Commercial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 0 | 220,000 |
Special Mention | Commercial And Industrial | SBA Loans | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 40,000 | 49,000 |
Special Mention | Commercial And Industrial | Asset Based | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 46,000 | 54,000 |
Special Mention | Commercial Real Estate Portfolio Segment | ' | ' |
Commercial real estate | 623,000 | 162,000 |
Special Mention | Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 0 | 0 |
Special Mention | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 0 | 0 |
Special Mention | Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 0 | 0 |
Special Mention | Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 623,000 | 162,000 |
Substandard | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 1,771,000 | 2,336,000 |
Substandard | Commercial And Industrial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 100,000 | 628,000 |
Substandard | Commercial And Industrial | Commercial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 52,000 | 480,000 |
Substandard | Commercial And Industrial | SBA Loans | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 48,000 | 49,000 |
Substandard | Commercial And Industrial | Asset Based | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 0 | 99,000 |
Substandard | Commercial Real Estate Portfolio Segment | ' | ' |
Commercial real estate | 1,671,000 | 1,708,000 |
Substandard | Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 130,000 | 0 |
Substandard | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 912,000 | 403,000 |
Substandard | Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 0 | 631,000 |
Substandard | Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 629,000 | 674,000 |
Doubtful | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 709,000 | 710,000 |
Doubtful | Commercial And Industrial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 393,000 | 393,000 |
Doubtful | Commercial And Industrial | Commercial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 393,000 | 393,000 |
Doubtful | Commercial And Industrial | SBA Loans | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 0 | 0 |
Doubtful | Commercial And Industrial | Asset Based | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 0 | 0 |
Doubtful | Commercial Real Estate Portfolio Segment | ' | ' |
Commercial real estate | 316,000 | 317,000 |
Doubtful | Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 0 | 0 |
Doubtful | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 316,000 | 317,000 |
Doubtful | Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 0 | 0 |
Doubtful | Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 0 | 0 |
Total | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 37,272,000 | 33,115,000 |
Consumer real estate | 3,909,000 | 4,619,000 |
Consumer loans other | 1,530,000 | 1,768,000 |
Total consumer loans | 5,439,000 | 6,387,000 |
Total | Commercial And Industrial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 4,310,000 | 3,734,000 |
Total | Commercial And Industrial | Commercial | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 1,658,000 | 1,462,000 |
Total | Commercial And Industrial | SBA Loans | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 585,000 | 125,000 |
Total | Commercial And Industrial | Asset Based | ' | ' |
Loans and Leases Receivable, Gross, Commercial | 2,067,000 | 2,147,000 |
Total | Commercial Real Estate Portfolio Segment | ' | ' |
Commercial real estate | 32,962,000 | 31,381,000 |
Total | Commercial Real Estate Portfolio Segment | SBA Loans | ' | ' |
Commercial real estate | 566,000 | 621,000 |
Total | Commercial Real Estate Portfolio Segment | Commercial Mortgages | ' | ' |
Commercial real estate | 17,343,000 | 14,721,000 |
Total | Commercial Real Estate Portfolio Segment | Construction | ' | ' |
Commercial real estate | 2,456,000 | 3,398,000 |
Total | Commercial Real Estate Portfolio Segment | Religious Organizations | ' | ' |
Commercial real estate | 12,597,000 | 12,642,000 |
Total | Consumer Real Estate | Home Equity | ' | ' |
Consumer real estate | 1,176,000 | 1,453,000 |
Total | Consumer Real Estate | Home Equity Line Of Credit | ' | ' |
Consumer real estate | 24,000 | 26,000 |
Total | Consumer Real Estate | 1-4 Family Residential Mortgages | ' | ' |
Consumer real estate | 2,709,000 | 3,140,000 |
Total | Consumer And Other Loans | Consumer Installment | ' | ' |
Consumer loans other | 16,000 | 30,000 |
Total | Consumer And Other Loans | Student Loans | ' | ' |
Consumer loans other | 1,366,000 | 1,588,000 |
Total | Consumer And Other Loans | Other | ' | ' |
Consumer loans other | 148,000 | 150,000 |
Performing | ' | ' |
Consumer real estate | 3,552,000 | 4,330,000 |
Consumer loans other | 1,530,000 | 1,768,000 |
Total consumer loans | 5,082,000 | 6,098,000 |
Performing | Consumer Real Estate | Home Equity | ' | ' |
Consumer real estate | 1,061,000 | 1,390,000 |
Performing | Consumer Real Estate | Home Equity Line Of Credit | ' | ' |
Consumer real estate | 24,000 | 26,000 |
Performing | Consumer Real Estate | 1-4 Family Residential Mortgages | ' | ' |
Consumer real estate | 2,467,000 | 2,914,000 |
Performing | Consumer And Other Loans | Consumer Installment | ' | ' |
Consumer loans other | 16,000 | 30,000 |
Performing | Consumer And Other Loans | Student Loans | ' | ' |
Consumer loans other | 1,366,000 | 1,588,000 |
Performing | Consumer And Other Loans | Other | ' | ' |
Consumer loans other | 148,000 | 150,000 |
Nonperforming | ' | ' |
Consumer real estate | 357,000 | 289,000 |
Consumer loans other | 0 | 0 |
Total consumer loans | 357,000 | 289,000 |
Nonperforming | Consumer Real Estate | Home Equity | ' | ' |
Consumer real estate | 115,000 | 63,000 |
Nonperforming | Consumer Real Estate | Home Equity Line Of Credit | ' | ' |
Consumer real estate | 0 | 0 |
Nonperforming | Consumer Real Estate | 1-4 Family Residential Mortgages | ' | ' |
Consumer real estate | 242,000 | 226,000 |
Nonperforming | Consumer And Other Loans | Consumer Installment | ' | ' |
Consumer loans other | 0 | 0 |
Nonperforming | Consumer And Other Loans | Student Loans | ' | ' |
Consumer loans other | 0 | 0 |
Nonperforming | Consumer And Other Loans | Other | ' | ' |
Consumer loans other | $0 | $0 |
Recovered_Sheet4
4. Loans and Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Beginning balance | $1,204,000 | $867,000 |
Provision for loan losses | 75,000 | 453,000 |
Charge-offs | -539,000 | -157,000 |
Recoveries | 99,000 | 41,000 |
Net charge-offs | -440,000 | -116,000 |
Ending balance | 839,000 | 1,204,000 |
Period-end amount allocated to loans individually evaluated for impairment | 378,000 | 843,000 |
Period-end amount allocated to loans collectively evaluated for impairment | 461,000 | 361,000 |
Total allocation | 839,000 | 1,204,000 |
Loans, ending balance: Loans individually evaluated for impairment | 1,882,000 | 2,344,000 |
Loans, ending balance: Loans collectively evaluated for impairment | 40,829,000 | 39,158,000 |
Total | 42,710,625 | 41,501,555 |
Commercial And Industrial | ' | ' |
Beginning balance | 891,000 | 387,000 |
Provision for loan losses | 113,000 | 560,000 |
Charge-offs | -524,000 | -56,000 |
Recoveries | 3,000 | 0 |
Net charge-offs | -521,000 | -56,000 |
Ending balance | 483,000 | 891,000 |
Period-end amount allocated to loans individually evaluated for impairment | 378,000 | 843,000 |
Period-end amount allocated to loans collectively evaluated for impairment | 105,000 | 48,000 |
Total allocation | 483,000 | 891,000 |
Loans, ending balance: Loans individually evaluated for impairment | 492,000 | 1,021,000 |
Loans, ending balance: Loans collectively evaluated for impairment | 3,818,000 | 2,713,000 |
Total | 4,310,000 | 3,734,000 |
Commercial Real Estate Portfolio Segment | ' | ' |
Beginning balance | 308,000 | 412,000 |
Provision for loan losses | -106,000 | -112,000 |
Charge-offs | 0 | 0 |
Recoveries | 78,000 | 8,000 |
Net charge-offs | 78,000 | 8,000 |
Ending balance | 280,000 | 308,000 |
Period-end amount allocated to loans individually evaluated for impairment | 0 | 0 |
Period-end amount allocated to loans collectively evaluated for impairment | 280,000 | 308,000 |
Total allocation | 280,000 | 308,000 |
Loans, ending balance: Loans individually evaluated for impairment | 1,390,000 | 1,323,000 |
Loans, ending balance: Loans collectively evaluated for impairment | 31,572,000 | 30,058,000 |
Total | 32,962,000 | 31,381,000 |
Consumer Real Estate | ' | ' |
Beginning balance | 5,000 | 68,000 |
Provision for loan losses | 50,000 | 0 |
Charge-offs | -5,000 | -80,000 |
Recoveries | 9,000 | 17,000 |
Net charge-offs | 4,000 | -63,000 |
Ending balance | 59,000 | 5,000 |
Period-end amount allocated to loans individually evaluated for impairment | 0 | 0 |
Period-end amount allocated to loans collectively evaluated for impairment | 59,000 | 5,000 |
Total allocation | 59,000 | 5,000 |
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 |
Loans, ending balance: Loans collectively evaluated for impairment | 3,909,000 | 4,619,000 |
Total | 3,909,000 | 4,619,000 |
Consumer And Other Loans | ' | ' |
Beginning balance | 0 | 0 |
Provision for loan losses | 18,000 | 5,000 |
Charge-offs | -10,000 | -21,000 |
Recoveries | 9,000 | 16,000 |
Net charge-offs | -1,000 | -5,000 |
Ending balance | 17,000 | 0 |
Period-end amount allocated to loans individually evaluated for impairment | 0 | 0 |
Period-end amount allocated to loans collectively evaluated for impairment | 17,000 | 0 |
Total allocation | 17,000 | 0 |
Loans, ending balance: Loans individually evaluated for impairment | 0 | 0 |
Loans, ending balance: Loans collectively evaluated for impairment | 1,530,000 | 1,768,000 |
Total | $1,530,000 | $1,768,000 |
5_Bank_Premises_and_Equipment_2
5. Bank Premises and Equipment: Bank Premises and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Leaseholds and Leasehold Improvements | Leaseholds and Leasehold Improvements | Leaseholds and Leasehold Improvements | Leaseholds and Leasehold Improvements | Furniture and Fixtures | Furniture and Fixtures | Furniture and Fixtures | Furniture and Fixtures | |||
Minimum | Maximum | Minimum | Maximum | |||||||
Property, Plant and Equipment, Gross | $1,888,000 | $1,649,000 | $781,000 | $874,000 | ' | ' | $1,107,000 | $775,000 | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | '10 years | '15 years | ' | ' | '3 years | '7 years |
Less accumulated depreciation | -1,239,000 | -1,086,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, Total | $649,159 | $562,729 | ' | ' | ' | ' | ' | ' | ' | ' |
5_Bank_Premises_and_Equipment_3
5. Bank Premises and Equipment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Depreciation on fixed assets | $152,659 | $220,281 |
Operating Leases, Rent Expense | $507,700 | $465,800 |
5_Bank_Premises_and_Equipment_4
5. Bank Premises and Equipment: Schedule of Future minimum lease payments under operating leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Details | ' |
2014 | $454 |
2015 | 446 |
2016 | 460 |
2017 | 397 |
2018 | 406 |
Thereafter | 1,631 |
Total minimum lease payments | $3,794 |
6_Other_Real_Estate_Owned_Comp2
6. Other Real Estate Owned: Components of Other Real Estate Owned (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other real estate owned | $433,087 | $775,407 | $1,285,000 |
Commercial Real Estate | ' | ' | ' |
Other real estate owned | 191,000 | 206,000 | ' |
Residential Real Estate | ' | ' | ' |
Other real estate owned | $242,000 | $569,000 | ' |
6_Other_Real_Estate_Owned_Othe1
6. Other Real Estate Owned: Other Real Estate Owned (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Other Real Estate, Beginning Balance | $775,407 | $1,285,000 |
Additions, transfers from loans | 0 | 156,000 |
Sales | -185,000 | -434,000 |
Other Real Estate, Period Increase (Decrease) | 590,000 | 1,007,000 |
Less: write-downs | -157,000 | -232,000 |
Other Real Estate, Ending Balance | $433,087 | $775,407 |
6_Other_Real_Estate_Owned_Comp3
6. Other Real Estate Owned: Components of Net Expense of Other Real Estate (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Professional fees | $340,054 | $317,880 |
Transfer-in write-up | -157,000 | -232,000 |
Impairment charges (net) | 157,406 | 232,298 |
Other Real Estate | ' | ' |
Insurance | 16,000 | 24,000 |
Legal Fees | 0 | 5,000 |
Cost of Property Repairs and Maintenance | 9,000 | 3,000 |
Professional fees | 0 | 8,000 |
Real estate taxes | 24,000 | 99,000 |
Utilities | 5,000 | 21,000 |
Transfer-in write-up | 0 | -43,000 |
Impairment charges (net) | 157,000 | 232,000 |
Total | $211,000 | $349,000 |
7_Deposits_Schedule_of_Maturit1
7. Deposits: Schedule of Maturities of Time Deposits (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Details | ' |
2014 | $14,383 |
2015 | 677 |
2016 | 143 |
2017 | 110 |
2018 | 107 |
Thereafter | 43 |
Time Deposits, Total | $15,463 |
7_Deposits_Details
7. Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Total deposits | $57,109,845 | $60,976,743 |
City Of Philadelphia | ' | ' |
Total deposits | $5,000,000 | ' |
8_Borrowings_Details
8. Borrowings (Details) (Secured Borrowing Federal Reserve, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Secured Borrowing Federal Reserve | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $500,000 | ' |
Securities Held as Collateral, at Fair Value | 750,000 | ' |
Line of Credit Facility, Amount Outstanding | $0 | $0 |
9_Income_Taxes_Details
9. Income Taxes (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Operating Loss Carryforwards | 9,400,000 |
Minimum | ' |
Operating Loss Carryforwards, Expiration Date | 31-Dec-20 |
Maximum | ' |
Operating Loss Carryforwards, Expiration Date | 31-Dec-34 |
9_Income_Taxes_Schedule_of_Def1
9. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets (liabilities): | ' | ' |
Provision for loan losses | $191,387 | $333,853 |
Unrealized (loss) gain on investment securities | 161,082 | -16,824 |
Depreciation | 31,199 | 94,393 |
Net operating carryforwards | 3,198,011 | 2,897,243 |
Other, net | 258,692 | 134,614 |
Valuation allowance for deferred tax assets | -3,679,289 | -3,460,103 |
Net deferred tax assets (liabilities) | $161,082 | ($16,824) |
9_Income_Taxes_Schedule_of_Eff1
9. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Effective rate reconciliation | ' | ' |
Tax at statutory rate (34%) | ($227,425) | ($345,524) |
Nondeductible expenses | 6,070 | 6,507 |
Increase in valuation allowance | 219,186 | 405,335 |
Other | 2,169 | -66,318 |
Total tax expense | ' | ' |
10_Financial_Instrument_Commit2
10. Financial Instrument Commitments: Schedule of Financial Instruments Owned and Pledged as Collateral (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Outstanding letters of credit | $1,050,832 | $1,173,374 |
Commitments to Extend Credit | ' | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $10,278,928 | $9,484,309 |
11_Fair_Value_Measurements_Sch3
11. Fair Value Measurements: Schedule of Fair Value of Assets on a Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
US Government Agencies Debt Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Money Market Funds | Money Market Funds | Loans Held for Sale | Loans Held at Fair Value | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | |||
US Government Agencies Debt Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Money Market Funds | Money Market Funds | Loans Held for Sale | Loans Held at Fair Value | US Government Agencies Debt Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Money Market Funds | Money Market Funds | Loans Held for Sale | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | US Government Agencies Debt Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Money Market Funds | Money Market Funds | Loans Held for Sale | Loans Held at Fair Value | ||||||||||||||||
Minimum | Maximum | |||||||||||||||||||||||||||||||||||||
Assets, Fair Value Disclosure, Recurring | $9,580,000 | $1,027 | $3,802,000 | $5,649,000 | $898,000 | $129,000 | $129,000 | $1,646,000 | $447,000 | $129,000 | $129,000 | ' | ' | ' | $129,000 | $129,000 | ' | ' | $9,541,000 | $898,000 | $3,802,000 | $5,649,000 | $898,000 | ' | ' | $1,646,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $447,000 |
Fair Value Measurements, Valuation Techniques | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Discounted cash flow | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Prepayment Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.74% | 7.99% | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.11% | 9.11% | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Expected Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 14 days | '4 years 29 days | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Probability of Default | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, Starting | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Origination of loans | ' | ' | ' | ' | ' | ' | ' | ' | 491,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal repayments | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Change in fair value of financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | -45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, Ending | ' | ' | ' | ' | ' | ' | ' | ' | $447,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
11_Fair_Value_Measurements_Det
11. Fair Value Measurements (Details) (Other Real Estate Owned, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Real Estate Owned | ' | ' |
Real Estate Owned, Valuation Allowance | $157,000 | $233,000 |
11_Fair_Value_Measurements_Sch4
11. Fair Value Measurements: Schedule of Fair Value of Assets on a Nonrecurring Basis (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired Loans, Carrying Value | ' | ' |
Total fair value gain (loss) during the year | ($59) | ($843) |
Assets, Fair Value Disclosure, Nonrecurring | 1,304 | 1,501 |
Other Real Estate Owned | ' | ' |
Total fair value gain (loss) during the year | -157 | -232 |
Assets, Fair Value Disclosure, Nonrecurring | 433 | 775 |
Fair Value, Inputs, Level 1 | Impaired Loans, Carrying Value | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 | Other Real Estate Owned | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | Impaired Loans, Carrying Value | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | Other Real Estate Owned | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 | Impaired Loans, Carrying Value | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 1,304 | 1,501 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $433 | $775 |
11_Fair_Value_Measurements_Sch5
11. Fair Value Measurements: Schedule of Fair Value of Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Cash and cash equivalents | $5,789,778 | $10,236,199 | $14,497,329 | ||
Available for sale securities | 9,579,979 | 1,027,293 | ' | ||
Held to maturity securities | ' | 11,895,037 | ' | ||
Held to maturity securities | 0 | 12,485,687 | ' | ||
Loans held for sale | 1,645,832 | ' | ' | ||
Loans, net of allowance for loan losses | 42,710,625 | 41,501,555 | ' | ||
Interest receivable | 256,262 | 309,971 | ' | ||
Savings deposits | 12,988,388 | 14,239,216 | ' | ||
Time deposits | 15,463,000 | ' | ' | ||
Accrued interest payable | 12,722 | 30,500 | ' | ||
Carrying Amount | ' | ' | ' | ||
Available for sale securities | 9,580,000 | [1] | 1,027,000 | [1] | ' |
Loans, net of allowance for loan losses | 42,711,000 | [2] | 41,502,000 | [2] | ' |
Carrying Amount | Fair Value, Inputs, Level 1 | ' | ' | ' | ||
Cash and cash equivalents | 5,790,000 | 10,236,000 | ' | ||
Carrying Amount | Fair Value, Inputs, Level 2 | ' | ' | ' | ||
Held to maturity securities | 0 | 11,895,000 | ' | ||
Loans held for sale | 1,645,832 | 0 | ' | ||
Interest receivable | 256,000 | 310,000 | ' | ||
Demand Deposits | 28,658,000 | 29,851,000 | ' | ||
Savings deposits | 12,988,000 | 14,239,000 | ' | ||
Time deposits | 15,463,000 | 16,886,000 | ' | ||
Accrued interest payable | 13,000 | 30,000 | ' | ||
Fair Value | ' | ' | ' | ||
Available for sale securities | 9,580,000 | [1] | 1,027,000 | [1] | ' |
Loans, net of allowance for loan losses | 43,304,000 | [2] | 40,325,000 | [2] | ' |
Fair Value | Fair Value, Inputs, Level 1 | ' | ' | ' | ||
Cash and Cash Equivalents | 5,790,000 | 10,236,000 | ' | ||
Fair Value | Fair Value, Inputs, Level 2 | ' | ' | ' | ||
Held to maturity securities | 0 | 12,486,000 | ' | ||
Loans held for sale | 1,645,832 | 0 | ' | ||
Interest receivable | 256,000 | 310,000 | ' | ||
Demand Deposits | 28,658,000 | 29,851,000 | ' | ||
Savings deposits | 12,988,000 | 14,239,000 | ' | ||
Time deposits | 15,472,000 | 16,902,000 | ' | ||
Accrued interest payable | $13,000 | $30,000 | ' | ||
[1] | Level 1 for money market funds; Level 2 for all other securities. | ||||
[2] | Level 2 for non-impaired loans; Level 3 for impaired loans; Level 3 for $447,000 held at fair value. |
12_Consolidated_Financial_Info4
12. Consolidated Financial Information-parent Company Only: Condensed Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and cash equivalents | $5,789,778 | $10,236,199 | $14,497,329 |
Total assets | 60,751,055 | 65,615,506 | ' |
Series A preferred stock | 1,368 | 1,368 | ' |
Common stock | 8,769 | 8,769 | ' |
Additional paid-in-capital | 14,749,852 | 14,749,852 | ' |
Accumulated deficit | -11,224,976 | -10,556,078 | ' |
Net unrealized holding gains on securities available for sale | -327,046 | 34,157 | ' |
Total shareholders' equity | 3,209,884 | 4,239,985 | 5,260,916 |
Parent Company | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 20,000 |
Investment in United Bank of Philadelphia | 3,210,000 | 4,240,000 | ' |
Total assets | 3,210,000 | 4,240,000 | ' |
Series A preferred stock | 1,000 | 1,000 | ' |
Common stock | 11,000 | 11,000 | ' |
Additional paid-in-capital | 14,750,000 | 14,750,000 | ' |
Accumulated deficit | -11,225,000 | -10,556,000 | ' |
Net unrealized holding gains on securities available for sale | -327,000 | 34,000 | ' |
Total shareholders' equity | $3,210,000 | $4,240,000 | ' |
12_Consolidated_Financial_Info5
12. Consolidated Financial Information-parent Company Only: Condensed Statements of Operations (Details) (Parent Company, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Parent Company | ' | ' |
Other Expenses | $0 | ($20) |
Equity in net loss of subsidiary | -669 | -996 |
Net loss | ($669) | ($1,016) |
12_Consolidated_Financial_Info6
12. Consolidated Financial Information-parent Company Only: Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net cash used in operating activities | ($1,991,878) | ($337,323) |
Cash and cash equivalents at beginning of year | 10,236,199 | 14,497,329 |
Cash and cash equivalents at end of year | 5,789,778 | 10,236,199 |
Parent Company | ' | ' |
Net loss | -669,000 | -1,016,000 |
Equity in net loss of subsidiary | 669,000 | 996,000 |
Net cash used in operating activities | 0 | -20,000 |
Cash and cash equivalents at beginning of year | 0 | 20,000 |
Cash and cash equivalents at end of year | $0 | $0 |
13_Regulatory_Matters_and_Goin2
13. Regulatory Matters and Going Concern: Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Entities | ' | ' |
Total capital to risk-weighted assets: | ' | ' |
Actual Amount | $4,067 | $4,584 |
Actual Ratio | 9.48% | 11.16% |
For capital adequacy purposes, amount | 3,427 | 3,287 |
For capital adequacy purposes, ratio | 8.00% | 8.00% |
To be well capitalized under prompt corrective action provisions, amount | ' | ' |
Tier I capital to risk-weighted assets: | ' | ' |
To be well capitalized under prompt corrective action provisions, ratio | 3,525 | 4,070 |
Actual Ratio | 8.22% | 9.91% |
For capital adequacy purposes, amount | 1,713 | 1,644 |
For capital adequacy purposes, ratio | 4.00% | 4.00% |
To be well capitalized under prompt corrective action provisions, amount | ' | ' |
Tier I capital to average assets: | ' | ' |
To be well capitalized under prompt corrective action provisions, ratio | 3,525 | 4,070 |
Actual Ratio | 5.67% | 6.00% |
For capital adequacy purposes, amount | 2,485 | 2,715 |
For capital adequacy purposes, ratio | 4.00% | 4.00% |
To be well capitalized under prompt corrective action provisions, amount | ' | ' |
Bank | ' | ' |
Total capital to risk-weighted assets: | ' | ' |
Actual Amount | 4,067 | 4,584 |
Actual Ratio | 9.48% | 11.16% |
For capital adequacy purposes, amount | 3,427 | 3,287 |
For capital adequacy purposes, ratio | 8.00% | 8.00% |
To be well capitalized under prompt corrective action provisions, amount | 4,284 | 4,109 |
To be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier I capital to risk-weighted assets: | ' | ' |
To be well capitalized under prompt corrective action provisions, ratio | 3,525 | 4,070 |
Actual Ratio | 8.22% | 9.91% |
For capital adequacy purposes, amount | 1,713 | 1,644 |
For capital adequacy purposes, ratio | 4.00% | 4.00% |
To be well capitalized under prompt corrective action provisions, amount | 2,570 | 2,465 |
To be well capitalized under prompt corrective action provisions, ratio | 6.00% | 6.00% |
Tier I capital to average assets: | ' | ' |
To be well capitalized under prompt corrective action provisions, ratio | 3,525 | 4,070 |
Actual Ratio | 5.00% | 6.00% |
For capital adequacy purposes, amount | 2,485 | 2,715 |
For capital adequacy purposes, ratio | 4.00% | 4.00% |
To be well capitalized under prompt corrective action provisions, amount | $3,107 | $3,394 |
To be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
13_Regulatory_Matters_and_Goin3
13. Regulatory Matters and Going Concern (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Description of Regulatory Requirements, Prompt Corrective Action | '· develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period; · formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its current regulatory examination; |
15_Earnings_Per_Share_Computat2
15. Earnings Per Share Computation: Schedule of Earnings Per Shares Basic and Diluted (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Net loss | ($668,898) | ($1,016,247) |
Loss attributable to common stockholders, basic (numerator) | -668,898 | -1,016,247 |
Weighted Average Number of Shares Outstanding, Basic (denominator) | 1,068,588 | ' |
Earnings Per Share, Basic | ($0.63) | ' |
Loss attributable to common stockholders, diluted (numerator) | ($668,898) | ($1,016,247) |
Weighted Average Number of Shares Outstanding, Diluted (denominator) | 1,068,588 | 1,068,588 |
Earnings Per Share, Diluted | ($0.63) | ($0.95) |
Weighted Average Number of Shares Outstanding, Diluted (denominator) | 1,068,588 | 1,068,588 |
15_Earnings_Per_Share_Computat3
15. Earnings Per Share Computation (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Common stock equivalents | 0 | 0 |