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| Washington (State or other jurisdiction of incorporation or organization) | 91-1815009 (IRS Employer Identification No.) | |
| 1101 S. Boone Street Aberdeen, Washington 98520-5244 (360) 533-8870 (Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices) | |
PART I | FINANCIAL INFORMATION | 3 |
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ITEM 1. | FINANCIAL STATEMENTS (UNAUDITED) | 3 |
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| CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2013 AND DECEMBER 31, 2012 | 3 |
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| CONDENSED CONSOLIDATED STATEMENTS OF INCOME THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 | 4 |
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| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 | 5 |
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| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 | 6 |
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| CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 | 7 |
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| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 8 |
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ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 32 |
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ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 44 |
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ITEM 4. | CONTROLS AND PROCEDURES | 45 |
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PART II | OTHER INFORMATION | 45 |
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ITEM 1. | LEGAL PROCEEDINGS | 45 |
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ITEM 1A. | RISK FACTORS | 45 |
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ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 45 |
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ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | 45 |
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ITEM 4. | MINE SAFETY DISCLOSURES | 45 |
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ITEM 5. | OTHER INFORMATION | 46 |
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ITEM 6. | EXHIBITS | 46 |
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| SIGNATURES | 46 |
| | September 30, 2013 | | December 31, 2012 | | ||
Assets | | | | | | | |
Cash and due from banks | | $ | 15,494 | | $ | 14,168 | |
Interest bearing deposits in banks | | | 54,163 | | | 42,687 | |
Certificates of deposits held for investment | | | 1,735 | | | 2,985 | |
Investment securities available-for-sale (amortized cost of $92,557 and $59,658) | | | 91,742 | | | 61,106 | |
Investment securities held-to-maturity (fair value of $2,409 and $6,985) | | | 2,387 | | | 6,937 | |
Federal Home Loan Bank stock, at cost | | | 3,041 | | | 3,126 | |
Loans held for sale | | | 7,266 | | | 12,950 | |
Loans | | | 486,700 | | | 448,196 | |
Allowance for credit losses | | | (8,806) | | | (9,358) | |
Loans, net | | | 477,894 | | | 438,838 | |
| | | | | | | |
Premises and equipment | | | 16,398 | | | 14,593 | |
Other real estate owned | | | 4,334 | | | 4,679 | |
Accrued interest receivable | | | 2,320 | | | 2,079 | |
Cash surrender value of life insurance | | | 18,126 | | | 17,784 | |
Goodwill | | | 12,168 | | | 11,282 | |
Other intangible assets | | | 1,494 | | | 1,268 | |
Other assets | | | 7,186 | | | 9,112 | |
| | | | | | | |
Total assets | | $ | 715,748 | | $ | 643,594 | |
| | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | |
Deposits: | | | | | | | |
Demand, non-interest bearing | | $ | 156,164 | | $ | 115,138 | |
Savings and interest-bearing demand | | | 326,775 | | | 295,100 | |
Time, interest-bearing | | | 135,979 | | | 138,005 | |
Total deposits | | | 618,918 | | | 548,243 | |
| | | | | | | |
Accrued interest payable | | | 182 | | | 213 | |
Short-term borrowings | | | | | | 3,000 | |
Long-term borrowings | | | 10,000 | | | 7,500 | |
Junior subordinated debentures | | | 13,403 | | | 13,403 | |
Other liabilities | | | 4,909 | | | 4,514 | |
Total liabilities | | | 647,412 | | | 576,873 | |
| | | | | | | |
Commitments and Contingencies (Note 7) | | | | | | | |
| | | | | | | |
Shareholders' Equity | | | | | | | |
Common Stock (par value $1); 25,000,000 shares authorized; 10,121,853 shares issued and outstanding at September 30, 2013 and December 31, 2012 | | | 10,122 | | | 10,122 | |
Additional paid-in capital | | | 41,449 | | | 41,366 | |
Retained earnings | | | 17,754 | | | 14,812 | |
Accumulated other comprehensive income (loss) | | | (989) | | | 421 | |
Total shareholders' equity | | | 68,336 | | | 66,721 | |
| | | | | | | |
Total liabilities and shareholders' equity | | $ | 715,748 | | $ | 643,594 | |
3 | ||
| | Three Months Ended September 30, | | Nine Months Ended September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
Interest and dividend income | | | | | | | | | | | | | |
Loans | | $ | 6,116 | | $ | 6,292 | | $ | 18,158 | | $ | 19,390 | |
Investment securities and FHLB dividends | | | 455 | | | 440 | | | 1,233 | | | 1,378 | |
Deposits with banks and federal funds sold | | | 34 | | | 19 | | | 85 | | | 55 | |
Total interest and dividend income | | | 6,605 | | | 6,751 | | | 19,476 | | | 20,823 | |
| | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | |
Deposits | | | 474 | | | 686 | | | 1,573 | | | 2,259 | |
Other borrowings | | | 116 | | | 143 | | | 354 | | | 462 | |
Total interest expense | | | 590 | | | 829 | | | 1,927 | | | 2,721 | |
| | | | | | | | | | | | | |
Net Interest Income | | | 6,015 | | | 5,922 | | | 17,549 | | | 18,102 | |
Provision for (recapture of) credit losses | | | | | | | | | (450) | | | 400 | |
Net interest income after provision for credit losses | | | 6,015 | | | 5,922 | | | 17,999 | | | 17,702 | |
| | | | | | | | | | | | | |
Non-interest Income | | | | | | | | | | | | | |
Service charges on deposits | | | 440 | | | 406 | | | 1,281 | | | 1,256 | |
Net gain (loss) on sales of other real estate owned | | | 18 | | | (18) | | | 43 | | | 293 | |
Gain on sales of loans | | | 1,128 | | | 1,501 | | | 4,306 | | | 3,501 | |
Gain on sales of investments available-for-sale, net | | | 14 | | | 65 | | | 401 | | | 164 | |
Net other-than-temporary impairment losses (net of $7, $20, $2 and $50 respectively, recognized in other comprehensive income before taxes) | | | (4) | | | (160) | | | (38) | | | (265) | |
Earnings on bank owned life insurance | | | 105 | | | 130 | | | 342 | | | 388 | |
Other operating income | | | 531 | | | 519 | | | 1,698 | | | 1,363 | |
Total non-interest income | | | 2,232 | | | 2,443 | | | 8,033 | | | 6,700 | |
| | | | | | | | | | | | | |
Non-interest Expense | | | | | | | | | | | | | |
Salaries and employee benefits | | | 4,098 | | | 4,101 | | | 12,983 | | | 11,823 | |
Occupancy and equipment | | | 706 | | | 614 | | | 1,957 | | | 1,865 | |
Other real estate owned write-downs | | | 176 | | | 364 | | | 636 | | | 698 | |
Other real estate owned operating costs | | | 67 | | | 101 | | | 276 | | | 401 | |
Professional services | | | 198 | | | 178 | | | 696 | | | 514 | |
FDIC and State assessments | | | 129 | | | 135 | | | 395 | | | 468 | |
Data processing | | | 449 | | | 355 | | | 1,688 | | | 1,048 | |
Other | | | 1,266 | | | 1,222 | | | 3,749 | | | 3,762 | |
Total non-interest expense | | | 7,089 | | | 7,070 | | | 22,380 | | | 20,579 | |
| | | | | | | | | | | | | |
Income before income taxes | | | 1,158 | | | 1,295 | | | 3,652 | | | 3,823 | |
Income taxes | | | 249 | | | 280 | | | 710 | | | 717 | |
| | | | | | | | | | | | | |
Net Income | | $ | 909 | | $ | 1,015 | | $ | 2,942 | | $ | 3,106 | |
| | | | | | | | | | | | | |
Earnings per common share: | | | | | | | | | | | | | |
Basic | | $ | 0.09 | | $ | 0.10 | | $ | 0.29 | | $ | 0.31 | |
Diluted | | $ | 0.09 | | $ | 0.10 | | $ | 0.29 | | $ | 0.31 | |
Weighted Average shares outstanding: | | | | | | | | | | | | | |
Basic | | | 10,121,853 | | | 10,121,853 | | | 10,121,853 | | | 10,121,853 | |
Diluted | | | 10,194,826 | | | 10,122,224 | | | 10,179,928 | | | 10,122,145 | |
4 | ||
| | Three Months Ended September 30, | | Nine Months Ended September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
Net income | | $ | 909 | | $ | 1,015 | | $ | 2,942 | | $ | 3,106 | |
| | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Net unrealized gain (losses) on investment securities | | | 509 | | | 500 | | | (1,494) | | | 532 | |
Defined benefit plans | | | 28 | | | 29 | | | 84 | | | 88 | |
| | | | | | | | | | | | | |
Other Comprehensive Income (Loss) | | | 537 | | | 529 | | | (1,410) | | | 620 | |
| | | | | | | | | | | | | |
Comprehensive Income | | $ | 1,446 | | $ | 1,544 | | $ | 1,532 | | $ | 3,726 | |
5 | ||
| | 2013 | | 2012 | | ||
OPERATING ACTIVITIES | | | | | | | |
Net income | | $ | 2,942 | | $ | 3,106 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | | | |
Provision for (recapture of) credit losses | | | (450) | | | 400 | |
Depreciation and amortization | | | 1,710 | | | 1,094 | |
Origination of loans held for sale | | | (201,278) | | | (184,171) | |
Proceeds of loans held for sale | | | 211,204 | | | 180,265 | |
Gain on sales of loans | | | (4,306) | | | (3,501) | |
Gain on sale of investments available-for-sale | | | (401) | | | (164) | |
Net OTTI losses recognized in earnings | | | 38 | | | 265 | |
Net gain on sale of other real estate owned | | | (43) | | | (293) | |
Net (gain) loss on sale of premises and equipment | | | 18 | | | (5) | |
Increase in accrued interest receivable | | | (241) | | | (239) | |
Decrease in accrued interest payable | | | (33) | | | (1,255) | |
Other real estate owned write-downs | | | 636 | | | 698 | |
Other, net | | | 2,977 | | | (130) | |
Net cash provided by (used in) operating activities | | | 12,773 | | | (3,930) | |
| | | | | | | |
INVESTING ACTIVITIES | | | | | | | |
Net (increase)/decrease in interest bearing balances with banks | | | (11,476) | | | 303 | |
Net decrease in certificates of deposits held for investment | | | 1,250 | | | | |
Purchase of securities available-for-sale | | | (48,892) | | | (15,806) | |
Proceeds from maturities of investments held-to-maturity | | | 4,549 | | | 176 | |
Proceeds from sales of securities available-for-sale | | | 7,237 | | | 6,334 | |
Proceeds from maturities of securities available-for-sale | | | 8,467 | | | 6,010 | |
Proceeds from sales of government loan pools | | | | | | 1,215 | |
Net (increase) decrease in loans made to customers, net of principal collections | | | (36,395) | | | 5,675 | |
Proceeds from sales of other real estate owned | | | 1,343 | | | 3,402 | |
Purchase of premises and equipment, and additions to other real estate owned | | | (2,012) | | | (844) | |
Cash received in acquisition, net of cash paid | | | 31,941 | | | | |
Net cash provided by (used in) investing activities | | | (43,988) | | | 6,465 | |
| | | | | | | |
FINANCING ACTIVITIES | | | | | | | |
Net increase in deposits | | | 33,041 | | | 132 | |
Repayment of short-term borrowings | | | (3,000) | | | | |
Proceeds from issuance of long-term debt | | | 2,500 | | | 2,500 | |
Repayment of long-term borrowings | | | | | | (2,500) | |
Net decrease in secured borrowings | | | | | | (522) | |
Net cash provided by (used in) financing activities | | | 32,541 | | | (390) | |
| | | | | | | |
Net increase in cash and due from banks | | | 1,326 | | | 2,145 | |
| | | | | | | |
Cash and due from Banks | | | | | | | |
Beginning of period | | | 14,168 | | | 12,607 | |
| | | | | | | |
End of period | | $ | 15,494 | | $ | 14,752 | |
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | | | | | | | |
Cash payments for: | | | | | | | |
Interest | | $ | 1,958 | | $ | 3,976 | |
Income taxes | | | 440 | | | 1,411 | |
| | | | | | | |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | | | | | | | |
Change in fair value of securities available-for-sale, net of tax | | $ | (1,494) | | $ | 532 | |
Transfer of loans held for sale to loans held for investment | | | 64 | | | | |
Other real estate owned acquired in settlement of loans | | | (1,591) | | | (2,485) | |
Financed sale of other real estate owned | | | | | | 783 | |
Reclass of long-term borrowings to short-term borrowings | | | | | | 3,000 | |
6 | ||
| | Shares of Common Stock | | | Common Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | |
| | | | | | | | | | | | | | | | | | |
Balance January 1, 2012 | | 10,121,853 | | $ | 10,122 | | $ | 41,342 | | $ | 12,051 | | $ | (245) | | $ | 63,270 | |
| | | | | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | 3,106 | | | | | | 3,106 | |
| | | | | | | | | | | | | | | | | | |
Other comprehensive income | | | | | | | | | | | | | | 620 | | | 620 | |
| | | | | | | | | | | | | | | | | | |
Stock compensation expense | | | | | | | | 18 | | | | | | | | | 18 | |
| | | | | | | | | | | | | | | | | | |
Balance September 30, 2012 | | 10,121,853 | | $ | 10,122 | | $ | 41,360 | | $ | 15,157 | | $ | 375 | | $ | 67,014 | |
| | | | | | | | | | | | | | | | | | |
Balance January 1, 2013 | | 10,121,853 | | $ | 10,122 | | $ | 41,366 | | $ | 14,812 | | $ | 421 | | $ | 66,721 | |
| | | | | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | 2,942 | | | | | | 2,942 | |
| | | | | | | | | | | | | | | | | | |
Other comprehensive loss | | | | | | | | | | | | | | (1,410) | | | (1,410) | |
| | | | | | | | | | | | | | | | | | |
Stock compensation expense | | | | | | | | 83 | | | | | | | | | 83 | |
| | | | | | | | | | | | | | | | | | |
Balance September 30, 2013 | | 10,121,853 | | $ | 10,122 | | $ | 41,449 | | $ | 17,754 | | $ | (989) | | $ | 68,336 | |
7 | ||
| | Three Months Ended September 30, | | Nine Months Ended September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
Basic: | | | | | | | | | | | | | |
Net income | | $ | 909 | | $ | 1,015 | | $ | 2,942 | | $ | 3,106 | |
Weighted average shares outstanding | | | 10,121,853 | | | 10,121,853 | | | 10,121,853 | | | 10,121,853 | |
Basic earnings per share | | $ | 0.09 | | $ | 0.10 | | $ | 0.29 | | $ | 0.31 | |
| | | | | | | | | | | | | |
Diluted: | | | | | | | | | | | | | |
Net income | | $ | 909 | | $ | 1,015 | | $ | 2,942 | | $ | 3,106 | |
Weighted average shares outstanding | | | 10,121,853 | | | 10,121,853 | | | 10,121,853 | | | 10,121,853 | |
Effect of dilutive stock options | | | 72,973 | | | 371 | | | 58,075 | | | 292 | |
Weighted average shares outstanding assuming dilution | | | 10,194,826 | | | 10,122,224 | | | 10,179,928 | | | 10,122,145 | |
Diluted earnings per share | | $ | 0.09 | | $ | 0.10 | | $ | 0.29 | | $ | 0.31 | |
8 | ||
Securities Held-to-Maturity | | | Amortized Cost | | | Unrealized Gains | | | Unrealized Losses | | | Fair Value | |
| | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | |
State and municipal securities | | $ | 2,217 | | $ | 9 | | $ | | | $ | 2,226 | |
Agency MBS | | | 170 | | | 13 | | | | | | 183 | |
Total | | $ | 2,387 | | $ | 22 | | $ | | | $ | 2,409 | |
| | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | |
State and municipal securities | | $ | 6,716 | | $ | 32 | | $ | | | $ | 6,748 | |
Agency MBS | | | 221 | | | 16 | | | | | | 237 | |
Total | | $ | 6,937 | | $ | 48 | | $ | | | $ | 6,985 | |
Securities Available-for-Sale | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | | ||||
| | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | |
U.S. Government securities | | $ | 8,889 | | $ | 49 | | $ | 79 | | $ | 8,859 | |
State and municipal securities | | | 32,417 | | | 896 | | | 488 | | | 32,825 | |
Agency MBS | | | 48,311 | | | 291 | | | 1,318 | | | 47,284 | |
Non-agency MBS | | | 2,349 | | | 5 | | | 175 | | | 2,179 | |
Corporate bonds | | | 591 | | | 4 | | | | | | 595 | |
Total | | $ | 92,557 | | $ | 1,245 | | $ | 2,060 | | $ | 91,742 | |
| | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | |
U.S. Government securities | | $ | 5,922 | | $ | 36 | | $ | 6 | | $ | 5,952 | |
State and municipal securities | | | 25,254 | | | 1,691 | | | 39 | | | 26,906 | |
Agency MBS | | | 22,113 | | | 249 | | | 203 | | | 22,159 | |
Non-agency MBS | | | 2,804 | | | 12 | | | 272 | | | 2,544 | |
Corporate bonds | | | 3,565 | | | | | | 20 | | | 3,545 | |
Total | | $ | 59,658 | | $ | 1,988 | | $ | 540 | | $ | 61,106 | |
9 | ||
| | | Less than 12 Months | | 12 months or More | | Total | | |||||||||||
Available-for-Sale | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | |
| | | | | | | | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | |
U.S. Government securities | | $ | 4,608 | | $ | 79 | | $ | | | $ | | | $ | 4,608 | | $ | 79 | |
State and municipal securities | | | 12,848 | | | 488 | | | | | | | | | 12,848 | | | 488 | |
Agency MBS | | | 32,262 | | | 1,285 | | | 1,512 | | | 33 | | | 33,774 | | | 1,318 | |
Non-agency MBS | | | 437 | | | 4 | | | 1,737 | | | 171 | | | 2,174 | | | 175 | |
Total | | $ | 50,155 | | $ | 1,856 | | $ | 3,249 | | $ | 204 | | $ | 53,404 | | $ | 2,060 | |
| | | | | | | | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | | | | | | | |
U.S. Government securities | | $ | 2,688 | | $ | 6 | | $ | | | $ | | | $ | 2,688 | | $ | 6 | |
State and municipal securities | | | 1,896 | | | 39 | | | | | | | | | 1,896 | | | 39 | |
Agency MBS | | | 11,890 | | | 198 | | | 370 | | | 5 | | | 12,260 | | | 203 | |
Non-agency MBS | | | | | | | | | 1,909 | | | 272 | | | 1,909 | | | 272 | |
Corporate bonds | | | 1,957 | | | 20 | | | | | | | | | 1,957 | | | 20 | |
Total | | $ | 18,431 | | $ | 263 | | $ | 2,279 | | $ | 277 | | $ | 20,710 | | $ | 540 | |
10 | ||
| | September 30, 2013 | | December 31, 2012 | | ||
| | | | | | | |
Commercial | | $ | 94,471 | | $ | 87,278 | |
Residential real estate: | | | | | | | |
Residential 1-4 family | | | 85,625 | | | 77,497 | |
Multi-family | | | 13,846 | | | 7,744 | |
Commercial real estate: | | | | | | | |
Construction and land development | | | 29,538 | | | 31,411 | |
Commercial real estate owner occupied | | | 106,670 | | | 109,783 | |
Commercial real estate non owner occupied | | | 115,290 | | | 103,014 | |
Farmland | | | 24,002 | | | 24,544 | |
Consumer | | | 18,366 | | | 7,782 | |
Less unearned income | | | (1,108) | | | (857) | |
| | | | | | | |
Total Loans | | $ | 486,700 | | $ | 448,196 | |
Allowance for Credit Losses | | | Commercial | | | Commercial Real Estate (“CRE”) | | | Residential Real Estate | | | Consumer | | | Unallocated | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Three months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 809 | | $ | 3414 | | $ | 813 | | $ | 638 | | $ | 3,288 | | $ | 8,962 | |
Charge-offs | | | (40) | | | (37) | | | (29) | | | (79) | | | | | | (185) | |
Recoveries | | | 20 | | | 5 | | | 3 | | | 1 | | | | | | 29 | |
Provision for (recapture of) credit losses | | | 45 | | | 164 | | | (16) | | | 149 | | | (342) | | | | |
| | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 834 | | $ | 3,546 | | $ | 771 | | $ | 709 | | $ | 2,946 | | $ | 8,806 | |
| | | | | | | | | | | | | | | | | | | |
Nine months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 923 | | $ | 4,098 | | $ | 829 | | $ | 531 | | $ | 2,977 | | $ | 9,358 | |
Charge-offs | | | (40) | | | (83) | | | (95) | | | (145) | | | | | | (363) | |
Recoveries | | | 35 | | | 220 | | | 4 | | | 2 | | | | | | 261 | |
Provision for (recapture of) credit losses | | | (84) | | | (689) | | | 33 | | | 321 | | | (31) | | | (450) | |
| | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 834 | | $ | 3,546 | | $ | 771 | | $ | 709 | | $ | 2,946 | | $ | 8,806 | |
11 | ||
Allowance for Credit Losses | | Commercial | | Commercial Real Estate (“CRE”) | | Residential Real Estate | | Consumer | | Unallocated | | Total | | ||||||
| | | | | | | | | | | | | | | | | | | |
Three months ended September 30, 2012 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,105 | | $ | 6,858 | | $ | 819 | | $ | 600 | | $ | 1,682 | | $ | 11,064 | |
Charge-offs | | | (10) | | | | | | (275) | | | (161) | | | | | | (446) | |
Recoveries | | | | | | 535 | | | | | | 4 | | | | | | 539 | |
Provision for (recapture of) credit losses | | | 102 | | | (756) | | | 254 | | | 71 | | | 329 | | | | |
| | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 1,197 | | $ | 6,637 | | $ | 798 | | $ | 514 | | $ | 2,011 | | $ | 11,157 | |
| | | | | | | | | | | | | | | | | | | |
Nine months ended September 30, 2012 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,012 | | $ | 6,803 | | $ | 1,046 | | $ | 642 | | $ | 1,624 | | $ | 11,127 | |
Charge-offs | | | (67) | | | (694) | | | (395) | | | (294) | | | | | | (1,450) | |
Recoveries | | | 23 | | | 888 | | | 162 | | | 7 | | | | | | 1,080 | |
Provision for (recapture of) credit losses | | | 229 | | | (360) | | | (15) | | | 159 | | | 387 | | | 400 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 1,197 | | $ | 6,637 | | $ | 798 | | $ | 514 | | $ | 2,011 | | $ | 11,157 | |
| | | | | | | | | | | | | | | | | | | |
Twelve months ended December 31, 2012 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,012 | | $ | 6,803 | | $ | 1,046 | | $ | 642 | | $ | 1,624 | | $ | 11,127 | |
Charge-offs | | | (67) | | | (827) | | | (576) | | | (309) | | | | | | (1,779) | |
Recoveries | | | 23 | | | 917 | | | 162 | | | 8 | | | | | | 1,110 | |
Provision for (recapture of) credit losses | | | (45) | | | (2,795) | | | 197 | | | 190 | | | 1,353 | | | (1,100) | |
| | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 923 | | $ | 4,098 | | $ | 829 | | $ | 531 | | $ | 2,977 | | $ | 9,358 | |
12 | ||
September 30, 2013 | | | Commercial | | | Commercial Real Estate (“CRE”) | | | Residential Real Estate | | | Consumer | | | Unallocated | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Allowance for Credit Losses: | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | | 834 | | | 3,546 | | | 771 | | | 709 | | | 2,946 | | | 8,806 | |
| | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | 766 | | $ | 6,378 | | $ | 871 | | $ | 2,368 | | $ | | | $ | 10,383 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | | 93,705 | | | 269,122 | | | 98,600 | | | 15,998 | | | | | | 477,425 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 94,471 | | $ | 275,500 | | $ | 99,471 | | $ | 18,366 | | $ | | | $ | 487,808 | |
Less unearned income | | | | | | | | | | | | | | | | | | (1,108) | |
| | | | | | | | | | | | | | | | | | | |
Ending balance total loans | | | | | | | | | | | | | | | | | $ | 486,700 | |
| | | | | | | | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Allowance for Credit Losses: | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | | 923 | | | 4,098 | | | 829 | | | 531 | | | 2,977 | | | 9,358 | |
| | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | 2,219 | | $ | 11,697 | | $ | 868 | | $ | | | $ | | | $ | 14,784 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | | 85,059 | | | 257,055 | | | 84,373 | | | 7,782 | | | | | | 434,269 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 87,278 | | $ | 268,752 | | $ | 85,241 | | $ | 7,782 | | $ | | | $ | 449,053 | |
Less unearned income | | | | | | | | | | | | | | | | | | (857) | |
| | | | | | | | | | | | | | | | | | | |
Ending balance total loans | | | | | | | | | | | | | | | | | $ | 448,196 | |
13 | ||
| | Pass | | Other Loans Especially Mentioned | | Substandard | | Doubtful | | Total | | |||||
| | | | | | | | | | | | | | | | |
Commercial | | $ | 89,893 | | $ | 3,257 | | $ | 1,311 | | $ | 10 | | $ | 94,471 | |
| | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | |
Construction and development | | | 27,075 | | | 957 | | | 1,506 | | | | | | 29,538 | |
Residential 1-4 family | | | 81,675 | | | 616 | | | 3,334 | | | | | | 85,625 | |
Multi-family | | | 13,846 | | | | | | | | | | | | 13,846 | |
CRE owner occupied | | | 101,197 | | | 1,445 | | | 4,028 | | | | | | 106,670 | |
CRE non owner occupied | | | 96,851 | | | 15,935 | | | 2,504 | | | | | | 115,290 | |
Farmland | | | 22,425 | | | 569 | | | 1,008 | | | | | | 24,002 | |
Total real estate | | | 343,069 | | | 19,522 | | | 12,380 | | | | | | 374,971 | |
| | | | | | | | | | | | | | | | |
Consumer | | | 18,306 | | | 14 | | | 46 | | | | | | 18,366 | |
| | | | | | | | | | | | | | | | |
Subtotal | | $ | 451,268 | | $ | 22,793 | | $ | 13,737 | | $ | 10 | | $ | 487,808 | |
Less unearned income | | | | | | | | | | | | | | | (1,108) | |
| | | | | | | | | | | | | | | | |
Total loans | | | | | | | | | | | | | | $ | 486,700 | |
14 | ||
| | Pass | | Other Loans Especially Mentioned | | Substandard | | Doubtful | | Total | | |||||
| | | | | | | | | | | | | | | | |
Commercial | | $ | 82,899 | | $ | 979 | | $ | 3,368 | | $ | 32 | | $ | 87,278 | |
| | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | |
Construction and development | | | 27,209 | | | 603 | | | 3,355 | | | 244 | | | 31,411 | |
Residential 1-4 family | | | 72,414 | | | 2,016 | | | 3,067 | | | | | | 77,497 | |
Multi-family | | | 7,744 | | | | | | | | | | | | 7,744 | |
CRE owner occupied | | | 103,444 | | | 1,844 | | | 4,495 | | | | | | 109,783 | |
CRE non owner occupied | | | 84,610 | | | 12,346 | | | 6,058 | | | | | | 103,014 | |
Farmland | | | 23,511 | | | | | | 1,033 | | | | | | 24,544 | |
Total real estate | | | 318,932 | | | 16,809 | | | 18,008 | | | 244 | | | 353,993 | |
| | | | | | | | | | | | | | | | |
Consumer | | | 7,740 | | | | | | 42 | | | | | | 7,782 | |
| | | | | | | | | | | | | | | | |
Subtotal | | $ | 409,571 | | $ | 17,788 | | $ | 21,418 | | $ | 276 | | $ | 449,053 | |
Less unearned income | | | | | | | | | | | | | | | (857) | |
| | | | | | | | | | | | | | | | |
Total loans | | | | | | | | | | | | | | $ | 448,196 | |
| | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | 3 Month Average Recorded Investment | | 9 Month Average Recorded Investment | | 3 Months Interest Income Recognized | | 9 Months Interest Income Recognized | | |||||||
| | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 766 | | $ | 766 | | $ | | | $ | 984 | | $ | 1,440 | | $ | 1 | | $ | 6 | |
Residential real estate | | | 871 | | | 1,102 | | | | | | 1,233 | | | 1,150 | | | 9 | | | 19 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | |
CRE owner occupied | | | 1,787 | | | 1,787 | | | | | | 2,327 | | | 2,674 | | | | | | 24 | |
CRE non-owner occupied | | | 4,591 | | | 6,791 | | | | | | 4,584 | | | 5,349 | | | 9 | | | 32 | |
Construction and development | | | 1,413 | | | 3,685 | | | | | | 1,435 | | | 1,626 | | | 20 | | | 60 | |
Farmland | | | 955 | | | 955 | | | | | | 955 | | | 960 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | | | | | | | | | | 5 | | | 2 | | | | | | | |
Residential real estate | | | | | | | | | | | | 100 | | | 50 | | | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 766 | | | 766 | | | | | | 984 | | | 1,440 | | | 1 | | | 6 | |
Consumer | | | | | | | | | | | | 5 | | | 2 | | | | | | 1 | |
Residential real estate | | | 871 | | | 1,102 | | | | | | 1,333 | | | 1,200 | | | 9 | | | 19 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | |
CRE owner occupied | | | 1,787 | | | 1,787 | | | | | | 2,327 | | | 2,674 | | | | | | 24 | |
CRE non-owner occupied | | | 4,591 | | | 6,791 | | | | | | 4,584 | | | 5,349 | | | 9 | | | 32 | |
Construction and development | | | 1,413 | | | 3,685 | | | | | | 1,435 | | | 1,626 | | | 20 | | | 60 | |
Farmland | | | 955 | | | 955 | | | | | | 955 | | | 960 | | | | | | | |
Total | | $ | 10,383 | | $ | 15,086 | | $ | | | $ | 11,623 | | $ | 13,251 | | $ | 39 | | $ | 142 | |
15 | ||
| | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | 3 Month Average Recorded Investment | | 9 Month Average Recorded Investment | | 3 Months Interest Income Recognized | | 9 Months Interest Income Recognized | | |||||||
| | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 776 | | $ | 786 | | $ | | | $ | 692 | | $ | 653 | | $ | 9 | | $ | 24 | |
Consumer | | | | | | | | | | | | 113 | | | 56 | | | | | | | |
Residential real estate | | | 768 | | | 983 | | | | | | 734 | | | 728 | | | 4 | | | 13 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | |
CRE owner occupied | | | 2,086 | | | 2,086 | | | | | | 1,110 | | | 791 | | | | | | 2 | |
CRE non-owner occupied | | | 2,326 | | | 2,419 | | | | | | 2,365 | | | 2,641 | | | 32 | | | 54 | |
Construction and development | | | 1,576 | | | 3,855 | | | | | | 1,640 | | | 2,936 | | | 18 | | | 53 | |
| | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | | | | | | | | | | | | | | 121 | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | |
CRE non-owner occupied | | | 3,485 | | | 3,997 | | | 1,781 | | | 3,485 | | | 3,556 | | | | | | | |
Construction and development | | | | | | | | | | | | 92 | | | 189 | | | | | | 12 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 776 | | | 786 | | | | | | 692 | | | 653 | | | 9 | | | 24 | |
Consumer | | | | | | | | | | | | 113 | | | 56 | | | | | | | |
Residential real estate | | | 768 | | | 983 | | | | | | 734 | | | 849 | | | 4 | | | 13 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | |
CRE owner occupied | | | 2,086 | | | 2,086 | | | | | | 1,110 | | | 791 | | | | | | 2 | |
CRE non-owner occupied | | | 5,811 | | | 6,416 | | | 1,781 | | | 5,850 | | | 6,197 | | | 32 | | | 54 | |
Construction and development | | | 1,576 | | | 3,855 | | | | | | 1,732 | | | 3,125 | | | 18 | | | 65 | |
Total | | $ | 11,017 | | $ | 14,126 | | $ | 1,781 | | $ | 10,231 | | $ | 11,671 | | $ | 63 | | $ | 158 | |
| | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Average Recorded Investment | | Interest Income Recognized | | |||||
| | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | |
Commercial | | $ | 2,219 | | $ | 2,219 | | $ | | | $ | 966 | | $ | 30 | |
Consumer | | | | | | | | | | | | 45 | | | | |
Residential real estate | | | 868 | | | 1,100 | | | | | | 756 | | | 17 | |
Commercial real estate: | | | | | | | | | | | | | | | | |
CRE owner occupied | | | 3,134 | | | 3,166 | | | | | | 1,259 | | | 2 | |
CRE non-owner occupied | | | 5,795 | | | 6,401 | | | | | | 3,272 | | | 84 | |
Construction and development | | | 1,792 | | | 4,053 | | | | | | 2,707 | | | 81 | |
Farmland | | | 976 | | | 976 | | | | | | 195 | | | | |
| | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | |
Residential real estate | | | | | | | | | | | | 97 | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | |
CRE - non-owner occupied | | | | | | | | | | | | 2,845 | | | | |
Construction and development | | | | | | | | | | | | 189 | | | 12 | |
| | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | |
Commercial | | | 2,219 | | | 2,219 | | | | | | 966 | | | 30 | |
Consumer | | | | | | | | | | | | 45 | | | | |
Residential real estate | | | 868 | | | 1,100 | | | | | | 853 | | | 17 | |
Commercial real estate: | | | | | | | | | | | | | | | | |
CRE owner occupied | | | 3,134 | | | 3,166 | | | | | | 1,259 | | | 2 | |
CRE non-owner occupied | | | 5,795 | | | 6,401 | | | | | | 6,117 | | | 84 | |
Construction and development | | | 1,792 | | | 4,053 | | | | | | 2,896 | | | 93 | |
Farmland | | | 976 | | | 976 | | | | | | 195 | | | | |
Total | | $ | 14,784 | | $ | 17,915 | | $ | | | $ | 12,331 | | $ | 226 | |
16 | ||
| | Current | | 30-59 Days Past Due | | 60-89 Days Past Due | | Greater Than 90 Days Past Due and Still Accruing | | Total Past Due | | Non- accrual Loans | | Total Loans | | |||||||
| | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 93,905 | | $ | 52 | | $ | | | $ | 54 | | $ | 106 | | $ | 460 | | $ | 94,471 | |
| | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | |
Construction & development | | | 28,125 | | | | | | | | | | | | | | | 1,413 | | | 29,538 | |
Residential 1-4 family | | | 84,078 | | | 387 | | | 203 | | | 167 | | | 757 | | | 790 | | | 85,625 | |
Multi-family | | | 13,846 | | | | | | | | | | | | | | | | | | 13,846 | |
CRE owner occupied | | | 104,852 | | | 87 | | | | | | | | | 87 | | | 1,731 | | | 106,670 | |
CRE non-owner occupied | | | 112,810 | | | | | | | | | | | | | | | 2,480 | | | 115,290 | |
Farmland | | | 23,010 | | | 37 | | | | | | | | | 37 | | | 955 | | | 24,002 | |
Total real estate | | | 366,721 | | | 511 | | | 203 | | | 167 | | | 881 | | | 7,369 | | | 374,971 | |
| | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 18,361 | | | 5 | | | | | | | | | 5 | | | | | | 18,366 | |
| | | | | | | | | | | | | | | | | | | | | | |
Less unearned income | | | (1,108) | | | | | | | | | | | | | | | | | | (1,108) | |
| | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 477,879 | | $ | 568 | | $ | 203 | | $ | 221 | | $ | 992 | | $ | 7,829 | | $ | 486,700 | |
| | Current | | 30-59 Days Past Due | | 60-89 Days Past Due | | Greater Than 90 Days Past Due and Still Accruing | | Total Past Due | | Non- accrual Loans | | Total Loans | | |||||||
| | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 85,243 | | $ | 107 | | $ | 27 | | $ | | | $ | 134 | | $ | 1,901 | | $ | 87,278 | |
| | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | |
Construction & development | | | 29,619 | | | | | | | | | | | | | | | 1,792 | | | 31,411 | |
Residential 1-4 family | | | 75,102 | | | 1,505 | | | 90 | | | | | | 1,595 | | | 800 | | | 77,497 | |
Multi-family | | | 7,744 | | | | | | | | | | | | | | | | | | 7,744 | |
CRE owner occupied | | | 105,936 | | | | | | | | | | | | | | | 3,847 | | | 109,783 | |
CRE non-owner occupied | | | 96,567 | | | 652 | | | | | | | | | 652 | | | 5,795 | | | 103,014 | |
Farmland | | | 23,435 | | | 133 | | | | | | | | | 133 | | | 976 | | | 24,544 | |
Total real estate | | | 338,403 | | | 2,290 | | | 90 | | | | | | 2,380 | | | 13,210 | | | 353,993 | |
| | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 7,773 | | | 8 | | | | | | | | | 8 | | | 1 | | | 7,782 | |
| | | | | | | | | | | | | | | | | | | | | | |
Less unearned income | | | (857) | | | | | | | | | | | | | | | | | | (857) | |
| | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 430,562 | | $ | 2,405 | | $ | 117 | | $ | | | $ | 2,522 | | $ | 15,112 | | $ | 448,196 | |
17 | ||
| | Current TDRs | | Subsequently Defaulted TDRs | | ||||||||||||
Nine months ended September 30, 2013 | | Number of Contracts | | Pre-TDR Outstanding Recorded Investment | | Post-TDR Outstanding Recorded Investment | | Number of Contracts | | Pre-TDR Outstanding Recorded Investment | | Post-TDR Outstanding Recorded Investment | | ||||
| | | | | | | | | | | | | | | | | |
Commercial | | 1 | | $ | 335 | | $ | 306 | | | | $ | | | $ | | |
Residential real estate | | 2 | | | 272 | | | 227 | | | | | | | | | |
CRE owner occupied | | 1 | | | 59 | | | 56 | | | | | | | | | |
CRE non-owner occupied | | 1 | | | 2,180 | | | 2,110 | | | | | | | | | |
Construction & development | | 3 | | | 2,972 | | | 1,413 | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Ending balance (1) | | 8 | | $ | 5,818 | | $ | 4,112 | | | | $ | | | $ | | |
18 | ||
| | Net Unrealized Gains and Losses on Investment Securities | | Defined Benefit Plans | | Total | | |||
| | | | | | | | | | |
Balance, January 1, 2013 | | $ | 956 | | $ | (535) | | $ | 421 | |
| | | | | | | | | | |
Other comprehensive loss before reclassifications | | | (1,254) | | | 84 | | | (1,170) | |
Amounts reclassified from AOCI | | | (240) | | | | | | (240) | |
Net current period other comprehensive income (loss) | | | (1,494) | | | 84 | | | (1,410) | |
| | | | | | | | | | |
Balance, September 30, 2013 | | $ | (538) | | $ | (451) | | $ | (989) | |
| | | | | | | | | | |
Balance, January 1, 2012 | | $ | 420 | | $ | (665) | | $ | (245) | |
| | | | | | | | | | |
Other comprehensive loss before reclassifications | | | 465 | | | 88 | | | 553 | |
Amounts reclassified from AOCI | | | 67 | | | | | | 67 | |
Net current period other comprehensive income (loss) | | | 532 | | | 88 | | | 620 | |
| | | | | | | | | | |
Balance, September 30, 2012 | | $ | 952 | | $ | (577) | | $ | 375 | |
Details about Accumulated Other Comprehensive Income Components | | Amount Reclassified from AOCI | | Affected Line Item in the Statement Where Net Income is Presented | | ||||
| | Three Months Ended September 30, 2013 | | Nine Months Ended September 30, 2013 | | | | ||
Net Unrealized Gains and Losses on Investment Securities | | $ | (14) | | $ | (401) | | Gain on sales of investments available for sale | |
| | | 4 | | | 38 | | Net OTTI losses | |
| | | 3 | | | 123 | | Income tax expense | |
| | $ | (7) | | $ | (240) | | Net of tax | |
19 | ||
Three Months Ended September 30, 2013 | | Before Tax | | Tax Effect | | Net of Tax | | |||
| | | | | | | | | | |
Net unrealized losses on investment securities: | | | | | | | | | | |
Net unrealized losses arising during the period | | $ | 781 | | $ | 265 | | $ | 516 | |
Less: reclassification adjustment for net gains including OTTI losses realized in net income | | | (10) | | | (3) | | | (7) | |
Net unrealized losses on investment securities | | | 771 | | | 262 | | | 509 | |
Defined Benefit Plans: | | | | | | | | | | |
Amortization of unrecognized prior service costs and net actuarial gains/losses | | | 43 | | | 15 | | | 28 | |
| | | | | | | | | | |
Other Comprehensive Loss | | $ | 814 | | $ | 277 | | $ | 537 | |
| | | | | | | | | | |
Nine Months Ended September 30, 2013 | | | | | | | | | | |
Net unrealized losses on investment securities: | | | | | | | | | | |
Net unrealized losses arising during the period | | $ | (1,901) | | $ | (647) | | $ | (1,254) | |
Less: reclassification adjustment for net gains including OTTI losses realized in net income | | | (363) | | | (123) | | | (240) | |
Net unrealized losses on investment securities | | | (2,264) | | | (770) | | | (1,494) | |
Defined Benefit Plans: | | | | | | | | | | |
Amortization of unrecognized prior service costs and net actuarial gains/losses | | | 128 | | | 44 | | | 84 | |
| | | | | | | | | | |
Other Comprehensive Loss | | $ | (2,136) | | $ | (726) | | $ | (1,410) | |
| | | | | | | | | | |
Three Months Ended September 30, 2012 | | | | | | | | | | |
Net unrealized gains on investment securities: | | | | | | | | | | |
Net unrealized gains arising during the period | | $ | 663 | | $ | 226 | | $ | 437 | |
Less: reclassification adjustment for net gains including OTTI losses realized in net income | | | 95 | | | 32 | | | 63 | |
Net unrealized gains on investment securities | | | 758 | | | 258 | | | 500 | |
Defined Benefit Plans: | | | | | | | | | | |
Amortization of unrecognized prior service costs and net actuarial gains/losses | | | 44 | | | 15 | | | 29 | |
| | | | | | | | | | |
Other Comprehensive Income | | $ | 802 | | $ | 273 | | $ | 529 | |
| | | | | | | | | | |
Nine Months Ended September 30, 2012 | | | | | | | | | | |
Net unrealized gains on investment securities: | | | | | | | | | | |
Net unrealized gains arising during the period | | $ | 907 | | $ | 308 | | $ | 599 | |
Less: reclassification adjustment for net gains realized in net income | | | 101 | | | 34 | | | 67 | |
Net unrealized gains on investment securities | | | 806 | | | 274 | | | 532 | |
Defined Benefit Plans: | | | | | | | | | | |
Amortization of unrecognized prior service costs and net actuarial gains/losses | | | 133 | | | 45 | | | 88 | |
| | | | | | | | | | |
Other Comprehensive Income | | $ | 939 | | $ | 319 | | $ | 620 | |
20 | ||
Grant period ended | | Expected Life | | Risk Free Interest Rate | | Expected Volatility | | Dividend Yield | | Average Fair Value | | ||||
| | | | | | | | | | | | | | | |
September 30, 2013 | | 6.5 years | | 1.35 | % | | 23.04 | % | | 4.14 | % | | $ | 0.57 | |
September 30, 2012 | | 6.5 years | | 1.34 | % | | 22.43 | % | | | % | | $ | 0.77 | |
| | Shares | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term ( Years) | | Aggregate Intrinsic Value | | ||
September 30, 2013 | | | | | | | | | | | |
| | | | | | | | | | | |
Outstanding beginning of period | | 537,107 | | $ | 11.28 | | | | | | |
Granted | | 183,500 | | | 5.03 | | | | | | |
Exercised | | | | | | | | | | | |
Forfeited | | (33,275) | | | 9.25 | | | | | | |
Expired | | (64,337) | | | 11.36 | | | | | | |
| | | | | | | | | | | |
Outstanding end of period | | 622,995 | | $ | 9.54 | | 5.4 | | $ | 114 | |
| | | | | | | | | | | |
Exercisable end of period | | 313,245 | | $ | 13.25 | | 2.7 | | $ | 4 | |
21 | ||
| | Shares | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term ( Years) | | Aggregate Intrinsic Value | | ||
September 30, 2012 | | | | | | | | | | | |
| | | | | | | | | | | |
Outstanding beginning of period | | 586,448 | | $ | 11.32 | | | | | | |
Granted | | 10,500 | | | 5.00 | | | | | | |
Exercised | | | | | | | | | | | |
Forfeited | | (12,550) | | | 10.44 | | | | | | |
Expired | | (47,291) | | | 10.57 | | | | | | |
| | | | | | | | | | | |
Outstanding end of period | | 537,107 | | $ | 11.28 | | 4.3 | | $ | | |
| | | | | | | | | | | |
Exercisable end of period | | 368,727 | | $ | 13.26 | | 2.9 | | $ | | |
| | 2013 | | 2012 | | ||||||
| | Shares | | Weighted Average Fair Value | | Shares | | Weighted Average Fair Value | | ||
| | | | | | | | | | | |
Non-vested beginning of period | | 147,280 | | $ | 0.31 | | 174,740 | | $ | 0.37 | |
Granted | | 183,500 | | | 0.57 | | 10,500 | | | 0.77 | |
Vested | | (2,275) | | | 0.65 | | (10,950) | | | 1.69 | |
Forfeited | | (18,755) | | | 0.40 | | (5,910) | | | 0.27 | |
| | | | | | | | | | | |
Non-vested end of period | | 309,750 | | $ | 0.45 | | 168,380 | | $ | 0.32 | |
22 | ||
| | Shares | | Weighted average grant price | | Weighted average remaining contractual terms (in years) | | |
| | | | | | | | |
Outstanding, January 1, 2013 | | 16,059 | | | | | | |
Granted | | 35,476 | | $ | 4.93 | | | |
Forfeited | | (1,511) | | | | | | |
| | | | | | | | |
Outstanding, September 30, 2013 | | 50,024 | | | | | 2.2 | |
| | | | | | | | |
Outstanding, January 1, 2012 | | | | | | | | |
Granted | | 7,274 | | $ | 4.15 | | | |
Forfeited | | (545) | | | | | | |
| | | | | | | | |
Outstanding, September 30, 2012 | | 6,729 | | | | | 2.5 | |
| | September 30, | | December 31, | | ||
| | 2013 | | 2012 | | ||
| | | | | | | |
Commitments to extend credit | | $ | 100,403 | | $ | 84,493 | |
Standby letters of credit | | | 1,738 | | | 1,975 | |
23 | ||
24 | ||
25 | ||
September 30, 2013 | | Readily Available Market Inputs Level 1 | | Observable Market Inputs Level 2 | | Significant Unobservable Inputs Level 3 | | Total | | ||||
| | | | | | | | | | | | | |
Securities available-for-sale | | | | | | | | | | | | | |
U.S. Government securities | | $ | | | $ | 8,859 | | $ | | | $ | 8,859 | |
State and municipal securities | | | | | | 31,862 | | | 963 | | | 32,825 | |
Agency MBS | | | | | | 47,284 | | | | | | 47,284 | |
Non-agency MBS | | | | | | 2,179 | | | | | | 2,179 | |
Corporate bonds | | | | | | 595 | | | | | | 595 | |
| | | | | | | | | | | | | |
Total | | $ | | | $ | 90,779 | | $ | 963 | | $ | 91,742 | |
| | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Securities available-for-sale | | | | | | | | | | | | | |
U.S. Government securities | | $ | | | $ | 5,952 | | $ | | | $ | 5,952 | |
State and municipal securities | | | | | | 25,807 | | | 1,099 | | | 26,906 | |
Agency MBS | | | | | | 22,159 | | | | | | 22,159 | |
Non-agency MBS | | | | | | 2,544 | | | | | | 2,544 | |
Corporate bonds | | | 1,957 | | | 1,588 | | | | | | 3,545 | |
| | | | | | | | | | | | | |
Total | | $ | 1,957 | | $ | 58,050 | | $ | 1,099 | | $ | 61,106 | |
26 | ||
| | Three months ended September 30, | | Nine months ended September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
Balance beginning of period | | $ | 977 | | $ | 1,069 | | $ | 1,099 | | $ | 1,140 | |
Principal payments | | | (10) | | | | | | (10) | | | | |
Included in other comprehensive income (loss) | | | (4) | | | 2 | | | (126) | | | (69) | |
| | | | | | | | | | | | | |
Balance end of period | | $ | 963 | | $ | 1,071 | | $ | 963 | | $ | 1,071 | |
27 | ||
| | Readily Available Market Inputs Level 1 | | Observable Market Inputs Level 2 | | Significant Unobservable Inputs Level 3 | | Total | | ||||
September 30, 2013 | | | | | | | | | | | | | |
Impaired loans | | $ | | | $ | | | $ | 61 | | $ | 61 | |
OREO | | $ | | | $ | | | $ | 1,856 | | $ | 1,856 | |
| | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | |
Impaired loans | | $ | | | $ | | | $ | 5,053 | | $ | 5,053 | |
OREO | | $ | | | $ | | | $ | 4,807 | | $ | 4,807 | |
| | Fair Value | | Valuation Technique | | Significant Unobservable Inputs | | Range (Weighted Average) | | |
| | | | | | | | | | |
Impaired Loans | | $ | 61 | | Appraised value Sales comparison approach | | Adjustment for market conditions | | 0-10% (3%) | |
| | | | | | | | | | |
OREO | | $ | 1,856 | | Appraised value - Sales comparison approach | | Adjustment for market conditions | | 0-10% (3%) | |
28 | ||
29 | ||
September 30, 2013 | | Carrying Amount | | Level 1 | | Level 2 | | Level 3 | | Total Fair Value | | |||||
| | | | | | | | | | | | | | | | |
Financial Assets | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 69,657 | | $ | 69,657 | | $ | | | $ | | | $ | 69,657 | |
Certificates of deposits held for investment | | | 1,735 | | | | | | 1,735 | | | | | | 1,735 | |
Securities available-for sale | | | 91,742 | | | | | | 90,779 | | | 963 | | | 91,742 | |
Securities held-to-maturity | | | 2,387 | | | | | | 2,409 | | | | | | 2,409 | |
Federal Home Loan Bank Stock | | | 3,041 | | | | | | 3,041 | | | | | | 3,041 | |
Loans held for sale | | | 7,266 | | | | | | 7,258 | | | | | | 7,258 | |
Loans, net | | | 477,894 | | | | | | | | | 442,329 | | | 442,329 | |
| | | | | | | | | | | | | | | | |
Financial Liabilities | | | | | | | | | | | | | | | | |
Deposits | | $ | 618,918 | | $ | 482,836 | | $ | 137,025 | | $ | | | $ | 619,861 | |
Long-term borrowings | | | 10,000 | | | | | | 10,206 | | | | | | 10,206 | |
Junior subordinated debentures | | | 13,403 | | | | | | | | | 7,769 | | | 7,769 | |
December 31, 2012 | | Carrying Amount | | Level 1 | | Level 2 | | Level 3 | | Total Fair Value | | |||||
| | | | | | | | | | | | | | | | |
Financial Assets | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 56,855 | | $ | 56,855 | | $ | | | $ | | | $ | 56,855 | |
Certificates of deposits held for investment | | | 2,985 | | | 2,985 | | | | | | | | | 2,985 | |
Securities available-for sale | | | 61,106 | | | 1,957 | | | 58,050 | | | 1,099 | | | 61,106 | |
Securities held-to-maturity | | | 6,937 | | | | | | 6,985 | | | | | | 6,985 | |
Federal Home Loan Bank Stock | | | 3,126 | | | | | | 3,126 | | | | | | 3,126 | |
Loans held for sale | | | 12,950 | | | | | | 12,977 | | | | | | 12,977 | |
Loans, net | | | 438,838 | | | | | | | | | 401,224 | | | 401,224 | |
| | | | | | | | | | | | | | | | |
Financial Liabilities | | | | | | | | | | | | | | | | |
Deposits | | $ | 548,243 | | $ | | | $ | 549,504 | | $ | | | $ | 549,504 | |
Short-term borrowings | | | 3,000 | | | | | | 3,042 | | | | | | 3,042 | |
Long-term borrowings | | | 7,500 | | | | | | 7,765 | | | | | | 7,765 | |
Junior subordinated debentures | | | 13,403 | | | | | | | | | 8,318 | | | 8,318 | |
30 | ||
Fair value of net assets acquired | | $ | 37,533 | |
Cash paid for deposit premium | | | (976) | |
Liabilities assumed | | | (37,684) | |
| | | | |
Goodwill and intangible assets recorded | | $ | (1,127) | |
Cash and cash equivalents | | $ | 31,941 | |
Loans receivable | | | 3,989 | |
Premises and equipment | | | 604 | |
Goodwill and intangible assets | | | 1,127 | |
Other assets | | | 23 | |
| | | | |
Total assets | | $ | 37,684 | |
| | | | |
Deposits and accrued interest payable | | $ | 37,636 | |
Deferred tax liability | | | 47 | |
Other liabilities | | | 1 | |
Equity | | | | |
| | | | |
Total liabilities and shareholders’ equity | | $ | 37,684 | |
31 | ||
32 | ||
33 | ||
34 | ||
| | 2013 | | | 2012 | | ||||||||||||||
| | | | | Interest | | | | | | | | | Interest | | | | | ||
(dollars in thousands) | | Average | | Income | | Avg | | | Average | | Income | | Avg | | ||||||
| | Balance | | (Expense) | | Rate | | | Balance | | (Expense) | | Rate | | ||||||
Interest Earning Assets | | | | | | | | | | | | | | | | | | | | |
Loans (1) | | $ | 489,056 | | $ | 6,162* | | | 5.04 | % | | $ | 482,172 | | $ | 6,374* | | | 5.29 | % |
Taxable securities | | | 60,221 | | | 221 | | | 1.47 | | | | 29,626 | | | 186 | | | 2.51 | |
Tax-exempt securities | | | 32,302 | | | 355* | | | 4.40 | | | | 27,897 | | | 385* | | | 5.52 | |
Federal Home Loan Bank Stock | | | 3,065 | | | 1 | | | 0.13 | | | | 3,181 | | | | | | | |
Interest earning balances with banks | | | 48,530 | | | 33 | | | 0.27 | | | | 29,838 | | | 19 | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | $ | 633,174 | | $ | 6,772 | | | 4.28 | % | | $ | 572,714 | | $ | 6,964 | | | 4.86 | % |
| | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 12,362 | | | | | | | | | | 10,948 | | | | | | | |
Bank premises and equipment (net) | | | 16,167 | | | | | | | | | | 14,726 | | | | | | | |
Other real estate owned | | | 4,070 | | | | | | | | | | 6,286 | | | | | | | |
Other assets | | | 39,350 | | | | | | | | | | 42,680 | | | | | | | |
Allowance for credit losses | | | (8,917) | | | | | | | | | | (11,030) | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 696,206 | | | | | | | | | $ | 636,324 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest Bearing Liabilities | | | | | | | | | | | | | | | | | | | | |
Savings and interest bearing demand | | $ | 322,605 | | $ | (166) | | | 0.21 | % | | $ | 286,210 | | $ | (253) | | | 0.35 | % |
Time deposits | | | 138,762 | | | (307) | | | 0.88 | | | | 142,661 | | | (433) | | | 1.21 | |
Total deposits | | | 461,367 | | | (473) | | | 0.41 | | | | 428,871 | | | (686) | | | 0.64 | |
| | | | | | | | | | | | | | | | | | | | |
Short-term borrowings | | | | | | | | | | | | | 3,000 | | | (22) | | | 2.93 | |
Long-term borrowings | | | 10,000 | | | (54) | | | 2.16 | | | | 7,500 | | | (51) | | | 2.72 | |
Secured borrowings | | | | | | | | | | | | | 220 | | | (1) | | | 1.82 | |
Junior subordinated debentures | | | 13,403 | | | (62) | | | 1.85 | | | | 13,403 | | | (69) | | | 2.06 | |
Total borrowings | | | 23,403 | | | (116) | | | 1.98 | | | | 24,123 | | | (143) | | | 2.37 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 484,770 | | $ | (589) | | | 0.49 | % | | $ | 452,994 | | $ | (829) | | | 0.73 | % |
| | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | 138,875 | | | | | | | | | | 112,364 | | | | | | | |
Other liabilities | | | 4,958 | | | | | | | | | | 4,512 | | | | | | | |
Shareholders’ equity | | | 67,603 | | | | | | | | | | 66,454 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 696,206 | | | | | | | | | $ | 636,324 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | $ | 6,183* | | | | | | | | | $ | 6,135* | | | | |
Net interest spread | | | | | | | | | 3.91 | % | | | | | | | | | 4.28 | % |
Net interest margin | | | | | | | | | 3.80 | % | | | | | | | | | 4.14 | % |
Tax equivalent adjustment | | | | | $ | 168* | | | | | | | | | $ | 213* | | | | |
* Tax equivalent basis 34% tax rate used | | | | | | | | | | | | | | | | | | | | |
35 | ||
| | 2013 | | | 2012 | | ||||||||||||||
| | | | | Interest | | | | | | | | | Interest | | | | | ||
(dollars in thousands) | | Average | | Income | | | Avg | | | Average | | Income | | | Avg | | ||||
| | Balance | | (Expense) | | | Rate | | | Balance | | (Expense) | | | Rate | | ||||
Interest Earning Assets | | | | | | | | | | | | | | | | | | | | |
Loans (1) | | $ | 480,404 | | $ | 18,323* | | | 5.09 | % | | $ | 480,367 | | $ | 19,625* | | | 5.45 | % |
Taxable securities | | | 49,411 | | | 471 | | | 1.27 | | | | 30,336 | | | 633 | | | 2.78 | |
Tax-exempt securities | | | 32,634 | | | 1,153* | | | 4.71 | | | | 26,895 | | | 1,129* | | | 5.60 | |
Federal Home Loan Bank Stock | | | 3,094 | | | 1 | | | 0.04 | | | | 3,182 | | | | | | | |
Interest earning balances with banks | | | 39,671 | | | 85 | | | 0.29 | | | | 30,270 | | | 55 | | | 0.24 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | $ | 605,214 | | $ | 20,033 | | | 4.41 | % | | $ | 571,050 | | $ | 21,442 | | | 5.01 | % |
| | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 11,478 | | | | | | | | | | 10,264 | | | | | | | |
Bank premises and equipment (net) | | | 15,547 | | | | | | | | | | 14,798 | | | | | | | |
Other real estate owned | | | 4,086 | | | | | | | | | | 7,340 | | | | | | | |
Other assets | | | 41,203 | | | | | | | | | | 41,284 | | | | | | | |
Allowance for credit losses | | | (9,218) | | | | | | | | | | (11,011) | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 668,310 | | | | | | | | | $ | 634,725 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest Bearing Liabilities | | | | | | | | | | | | | | | | | | | | |
Savings and interest bearing demand | | $ | 311,792 | | $ | (547) | | | 0.23 | % | | $ | 289,776 | | $ | (856) | | | 0.39 | % |
Time deposits | | | 136,863 | | | (1,026) | | | 1.00 | | | | 146,931 | | | (1,403) | | | 1.27 | |
Total deposits | | | 448,655 | | | (1,573) | | | 0.47 | | | | 436,707 | | | (2,259) | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | | |
Short-term borrowings | | | 406 | | | (9) | | | 2.96 | | | | 2,595 | | | (57) | | | 2.93 | |
Long-term borrowings | | | 9,660 | | | (159) | | | 2.19 | | | | 7,905 | | | (166) | | | 2.80 | |
Secured borrowings | | | | | | | | | | | | | 551 | | | (18) | | | 4.36 | |
Junior subordinated debentures | | | 13,403 | | | (186) | | | 1.85 | | | | 13,403 | | | (221) | | | 2.20 | |
Total borrowings | | | 23,469 | | | (354) | | | 2.01 | | | | 24,454 | | | (462) | | | 2.52 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 472,124 | | $ | (1,927) | | | 0.54 | % | | $ | 461,161 | | $ | (2,721) | | | 0.79 | % |
| | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | 123,868 | | | | | | | | | | 103,308 | | | | | | | |
Other liabilities | | | 4,596 | | | | | | | | | | 5,014 | | | | | | | |
Shareholders’ equity | | | 67,722 | | | | | | | | | | 65,242 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 668,310 | | | | | | | | | $ | 634,725 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | $ | 18,106* | | | | | | | | | $ | 18,721* | | | | |
Net interest spread | | | | | | | | | 3.99 | % | | | | | | | | | 4.37 | % |
Net interest margin | | | | | | | | | 3.87 | % | | | | | | | | | 4.23 | % |
Tax equivalent adjustment | | | | | $ | 557* | | | | | | | | | $ | 619* | | | | |
* Tax equivalent basis 34% tax rate used | | | | | | | | | | | | | | | | | | | | |
36 | ||
37 | ||
38 | ||
SUMMARY OF NON-PERFORMING ASSETS | | September 30, | | | December 31, | | | September 30, | | |||
(in thousands) | | 2013 | | | 2012 | | | 2012 | | |||
| | | | | | | | | | | | |
Accruing loans past due 90 days or more | | $ | 221 | $ | | $ | 770 | |||||
| | | | | | | | | | | | |
Non-accrual loans: | | | | | | | | | | | | |
Construction, land development and other land loans | | | 1,413 | | | | 1,792 | | | | 1,576 | |
Residential real estate 1-4 family | | | 790 | | | | 800 | | | | 768 | |
Commercial real estate | | | 4,211 | | | | 9,642 | | | | 7,897 | |
Farmland | | | 955 | | | | 976 | | | | | |
Commercial and industrial | | | 460 | | | | 1,901 | | | | 777 | |
Installment | | | | | | | 1 | | | | | |
Total non-accrual loans (1) | | | 7,829 | | | | 15,112 | | | | 11,018 | |
| | | | | | | | | | | | |
Total non-performing loans | | | 8,050 | | 15,112 | | 11,788 | |||||
| | | | | | | | | | | | |
OREO | | | 4,334 | | | | 4,679 | | | | 5,803 | |
| | | | | | | ||||||
Total Non-Performing Assets (2) | $ | 12,384 | $ | 19,791 | $ | 17,591 | ||||||
| | | | | | | ||||||
Troubled debt restructured loans on accrual status | | $ | 2,699 | $ | 444 | $ | 126 | |||||
Allowance for credit losses | | $ | 8,806 | $ | 9,358 | | $ | 11,157 | ||||
Allowance for credit losses to non-performing loans | | | 109.39 | % | | | 61.92 | % | | | 94.65 | % |
Allowance for credit losses to non-performing assets | | | 71.11 | % | | | 47.28 | % | | | 63.42 | % |
Non-performing loans to total loans (3) | | | 1.65 | % | | | 3.37 | % | | | 2.53 | % |
Non-performing assets to total assets | | | 1.73 | % | | | 3.08 | % | | | 2.73 | % |
39 | ||
40 | ||
| | September 30, | | December 31, | | ||
| | 2013 | | 2012 | | ||
| | | | | | | |
Commercial | | $ | 94,471 | | $ | 87,278 | |
Residential real estate: | | | | | | | |
Residential 1-4 family | | | 85,625 | | | 77,497 | |
Multi-family | | | 13,846 | | | 7,744 | |
Commercial real estate: | | | | | | | |
Construction and land development | | | 29,538 | | | 31,411 | |
Commercial real estate owner occupied | | | 106,670 | | | 109,783 | |
Commercial real estate non owner occupied | | | 115,290 | | | 103,014 | |
Farmland | | | 24,002 | | | 24,544 | |
Consumer | | | 18,366 | | | 7,782 | |
Less unearned income | | | (1,108) | | | (857) | |
Total Loans | | | 486,700 | | | 448,196 | |
Allowance for credit losses | | | (8,806) | | | (9,358) | |
| | | | | | | |
Net Loans | | $ | 477,894 | | $ | 438,838 | |
41 | ||
| | September 30, | | December 31, | | ||
| | 2013 | | 2012 | | ||
| | | | | | | |
Demand, non-interest bearing | | $ | 156,164 | | $ | 115,138 | |
Interest bearing demand | | | 135,808 | | | 125,758 | |
Money market | | | 118,087 | | | 106,849 | |
Savings | | | 72,880 | | | 62,493 | |
Time, interest bearing | | | 135,979 | | | 138,005 | |
| | | | | | | |
Total deposits | | $ | 618,918 | | $ | 548,243 | |
42 | ||
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| | Company | | | Bank | | | Requirements | | |||||||||||||||
| | September 30, 2013 | | | December 31, 2012 | | | September 30, 2013 | | | December 31, 2012 | | | Adequately Capitalized | | | Well Capitalized | | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | 10.04 | % | | | 10.69 | % | | | 10.04 | % | | | 10.69 | % | | | 4 | % | | | 5 | % |
Tier 1 risk-based capital ratio | | | 13.59 | % | | | 14.95 | % | | | 13.59 | % | | | 14.96 | % | | | 4 | % | | | 6 | % |
Total risk-based capital ratio | | | 14.84 | % | | | 16.21 | % | | | 14.85 | % | | | 16.22 | % | | | 8 | % | | | 10 | % |
44 | ||
45 | ||
| PACIFIC FINANCIAL CORPORATION | | |
| | | |
DATED: November 14, 2013 | By: | /s/ Dennis A. Long | |
| | Dennis A. Long | |
| | Chief Executive Officer | |
| | | |
| By: | /s/ Denise Portmann | |
| | Denise Portmann | |
| | Chief Financial Officer | |
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EXHIBIT NO. | | EXHIBIT |
| | |
31.1 | | Certification of CEO under Rule 13a 14(a) of the Exchange Act. |
31.2 | | Certification of CFO under Rule 13a 14(a) of the Exchange Act. |
32 | | Certification of CEO and CFO under 18 U.S.C. Section 1350. |
101. | | INS XBRL Instance Document * |
101. | | SCH XBRL Taxonomy Extension Schema Document * |
101. | | CAL XBRL Taxonomy Extension Calculation Linkbase Document * |
101. | | DEF XBRL Taxonomy Extension Definition Linkbase Document * |
101. | | LAB XBRL Taxonomy Extension Label Linkbase Document * |
101. | | PRE XBRL Taxonomy Extension Presentation Linkbase Document * |
47 | ||