Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2013 | |
Document and Entity Information | |
Entity Registrant Name | FIRST COMMUNITY CORP /SC/ |
Entity Central Index Key | 932781 |
Document Type | S-4 |
Document Period End Date | 30-Jun-13 |
Amendment Flag | FALSE |
Entity Filer Category | Smaller Reporting Company |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||||||||
ASSETS | ||||||||
Cash and due from banks | $9,727 | $11,517 | $10,599 | |||||
Interest-bearing bank balances | 14,155 | 6,779 | 5,512 | |||||
Federal funds sold and securities purchased under agreements to resell | 405 | 412 | 381 | |||||
Investment securities - available for sale | 223,646 | 203,445 | 201,032 | |||||
Other investments, at cost | 2,269 | 2,527 | 5,637 | |||||
Loans held for sale | 5,789 | 9,658 | 3,725 | |||||
Loans | 341,089 | 332,111 | 324,913 | 324,311 | ||||
Less, allowance for loan losses | 4,439 | 4,534 | 4,621 | 4,742 | 4,745 | 4,699 | 4,911 | 4,854 |
Net loans | 336,650 | 327,490 | 319,612 | |||||
Property, furniture and equipment-net | 17,255 | 17,258 | 17,483 | |||||
Bank owned life insurance | 11,024 | 10,868 | 10,974 | |||||
Other real estate owned | 2,824 | 3,987 | 7,351 | 6,904 | ||||
Intangible assets | 65 | 160 | 365 | |||||
Goodwill | 571 | 571 | 571 | |||||
Other assets | 8,805 | 8,253 | 10,645 | |||||
Total assets | 633,185 | 602,925 | 593,887 | |||||
Deposits: | ||||||||
Non-interest bearing demand | 105,478 | 97,526 | 83,572 | |||||
NOW and money market accounts | 186,778 | 150,874 | 136,483 | |||||
Savings | 47,238 | 41,100 | 34,048 | |||||
Time deposits less than $100,000 | 102,311 | 111,182 | 128,616 | |||||
Time deposits $100,000 and over | 67,814 | 74,295 | 81,866 | |||||
Total deposits | 509,619 | 474,977 | 464,585 | |||||
Securities sold under agreements to repurchase | 15,650 | 15,900 | 13,616 | |||||
Federal Home Loan Bank Advances | 34,335 | 36,344 | 43,862 | |||||
Junior subordinated debt | 15,464 | 15,464 | 17,913 | |||||
Other liabilities | 5,289 | 6,057 | 6,015 | |||||
Total liabilities | 580,357 | 548,742 | 545,991 | |||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred stock, par value $1.00 per share; 10,000,000 shares authorized; 0 and 11,350 issued and outstanding at December 31, 2012 and 2011 | 11,137 | |||||||
Common stock, par value $1.00 per share; 10,000,000 shares authorized; issued and outstanding 5,227,300 at December 31, 2012 and 3,307,531 at December 31, 2011 | 5,293 | 5,227 | 3,308 | |||||
Common stock warrants issued | 50 | 50 | 560 | |||||
Nonvested restricted stock | -593 | -152 | ||||||
Additional paid in capital | 62,151 | 61,615 | 49,165 | |||||
Accumulated deficit | -13,193 | -14,915 | -17,603 | |||||
Accumulated other comprehensive income | -880 | 2,104 | 2,358 | 1,475 | 2,192 | 1,329 | ||
Total shareholders' equity | 52,828 | 54,183 | 49,296 | 47,896 | 41,797 | 41,440 | ||
Total liabilities and shareholders' equity | $633,185 | $602,925 | $593,887 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED BALANCE SHEETS | |||
Preferred stock, par value (in dollars per share) | $1 | $1 | $1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 | 11,350 |
Preferred stock, shares outstanding | 0 | 0 | 11,350 |
Common stock, par value (in dollars per share) | $1 | $1 | $1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,293,116 | 5,227,300 | 3,307,531 |
Common stock, shares outstanding | 5,293,116 | 5,227,300 | 3,307,531 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Interest income: | |
Loans, including fees | $18,361 |
Investment securities-taxable | 3,832 |
Investment securities-non taxable | 725 |
Other short term investments | 84 |
Total interest income | 23,002 |
Interest expense: | |
Deposits | 3,122 |
Securities sold under agreement to repurchase | 35 |
Other borrowed money | 2,271 |
Total interest expense | 5,428 |
Net interest income | 17,574 |
Provision for loan losses | 496 |
Net interest income after provision for loan losses | 17,078 |
Non-interest income: | |
Deposit service charges | 1,562 |
Mortgage origination fees | 4,242 |
Investment advisory fees and non-deposit commissions | 651 |
Gain on sale of securities | 26 |
Gain (loss) on sale of other assets | -89 |
Other-than-temporary-impairment write-down on securities | -200 |
Fair value gain (loss) adjustments | -58 |
Loss on early extinguishment of debt | -217 |
Other | 2,038 |
Total non-interest income | 7,955 |
Non-interest expense: | |
Salaries and employee benefits | 11,152 |
Occupancy | 1,358 |
Equipment | 1,168 |
Marketing and public relations | 478 |
FDIC Insurance assessments | 597 |
Other real estate expense | 1,010 |
Amortization of intangibles | 204 |
Other | 3,478 |
Total non-interest expense | 19,445 |
Net income before tax | 5,588 |
Income taxes | 1,620 |
Net income | 3,968 |
Preferred stock dividends | 557 |
Preferred stock redemption costs | 119 |
Net income available to common shareholders | $3,292 |
Basic earnings per common share (in dollars per share) | $0.79 |
Diluted earnings per common share (in dollars per share) | $0.79 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
Net income | $1,203 | $1,021 | $1,220 | $928 | $799 | $1,071 | $957 | $726 | $570 | $2,241 | $1,727 | $3,968 | $3,324 | $1,854 |
Other comprehensive income (loss): | ||||||||||||||
Unrealized gain (loss) during the period on available-for-sale securities, net of tax of $471, $1,964 and $564, respectively | -2,896 | -742 | -3,140 | -4 | 914 | 3,751 | -1,065 | |||||||
Less: Reclassification adjustment for gain included in net income, net of tax of $9, $201, and $289, respectively | -88 | 25 | -98 | 18 | -17 | -374 | -537 | |||||||
Reclassification adjustment for other-than-temporary-impairment on securities net of tax benefit of $68, $104 and $546, respectively | 132 | 132 | 193 | 1,014 | ||||||||||
Other comprehensive income (loss) | -2,984 | -717 | -3,238 | 146 | 1,029 | 3,570 | -588 | |||||||
Comprehensive income (loss) | ($1,781) | $211 | ($997) | $1,873 | $4,997 | $6,894 | $1,266 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||
Unrealized gain (loss) during the period on available-for-sale securities, tax expense | $1,492 | $394 | $1,617 | $2 | $471 | $1,964 | $564 |
Reclassification adjustment for gain included in net income, tax (expense) benefit | 45 | -13 | 50 | -9 | 9 | 201 | 289 |
Reclassification adjustment for other-than-temporary-impairment on securities, tax benefit | $0 | $68 | $68 | $104 | $546 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Preferred Stock | Common Stock | Common Stock Warrants | Additional Paid-in Capital | Nonvested Restricted Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (loss) |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2009 | $41,440 | $10,939 | $3,252 | $509 | $48,873 | ($79) | ($20,401) | ($1,653) |
Balance (in shares) at Dec. 31, 2009 | 3,252 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 1,854 | 1,854 | ||||||
Other comprehensive income (loss) net of tax of $561, $2,061 and $307 for the year ended on 2012, 2011 and 2010, respectively | -588 | -588 | ||||||
Amortization of compensation on restricted stock | 79 | 79 | ||||||
Dividends: Common ($0.16, $0.16 and $0.16 per share for the years 2012, 2011 and 2010, respectively) | -521 | -521 | ||||||
Preferred stock | -568 | 96 | -664 | |||||
Dividend reinvestment plan | 101 | 18 | 83 | |||||
Dividend reinvestment plan (in shares) | 18 | |||||||
Balance at Dec. 31, 2010 | 41,797 | 11,035 | 3,270 | 509 | 48,956 | -19,732 | -2,241 | |
Balance (in shares) at Dec. 31, 2010 | 3,270 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 3,324 | 3,324 | ||||||
Other comprehensive income (loss) net of tax of $561, $2,061 and $307 for the year ended on 2012, 2011 and 2010, respectively | 3,570 | 3,570 | ||||||
Issuance of stock warrants | 51 | 51 | ||||||
Issuance of restricted stock | 91 | 23 | 133 | -65 | ||||
Issuance of restricted stock (in shares) | 23 | |||||||
Amortization of compensation on restricted stock | 65 | 65 | ||||||
Dividends: Common ($0.16, $0.16 and $0.16 per share for the years 2012, 2011 and 2010, respectively) | -525 | -525 | ||||||
Preferred stock | -568 | 102 | -670 | |||||
Dividend reinvestment plan | 91 | 15 | 76 | |||||
Dividend reinvestment plan (in shares) | 15 | |||||||
Balance at Dec. 31, 2011 | 47,896 | 11,137 | 3,308 | 560 | 49,165 | -17,603 | 1,329 | |
Balance (in shares) at Dec. 31, 2011 | 3,308 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 1,727 | 1,727 | ||||||
Other comprehensive income (loss) net of tax of $561, $2,061 and $307 for the year ended on 2012, 2011 and 2010, respectively | 146 | 146 | ||||||
Issuance of restricted stock | 33 | 239 | -272 | |||||
Issuance of restricted stock (in shares) | 33 | |||||||
Amortization of compensation on restricted stock | 30 | 30 | ||||||
Dividends: Common ($0.16, $0.16 and $0.16 per share for the years 2012, 2011 and 2010, respectively) | -264 | -264 | ||||||
Preferred stock | -337 | -337 | ||||||
Accretion and redemption costs | 54 | 54 | ||||||
Dividend reinvestment plan | 44 | 5 | 39 | |||||
Dividend reinvestment plan (in shares) | 5 | |||||||
Balance at Jun. 30, 2012 | 49,296 | 11,191 | 3,346 | 560 | 49,443 | -242 | -16,477 | 1,475 |
Balance (in shares) at Jun. 30, 2012 | 3,346 | |||||||
Balance at Dec. 31, 2011 | 47,896 | 11,137 | 3,308 | 560 | 49,165 | -17,603 | 1,329 | |
Balance (in shares) at Dec. 31, 2011 | 3,308 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 3,968 | 3,968 | ||||||
Other comprehensive income (loss) net of tax of $561, $2,061 and $307 for the year ended on 2012, 2011 and 2010, respectively | 1,029 | 1,029 | ||||||
Repurchase of stock warrants | -298 | -510 | 212 | |||||
Issuance of restricted stock | 33 | 239 | -272 | |||||
Issuance of restricted stock (in shares) | 33 | |||||||
Amortization of compensation on restricted stock | 120 | 120 | ||||||
Issuance of common stock net of expenses of $1,200 | 13,792 | 1,875 | 11,917 | |||||
Issuance of common stock net of expenses of $1,200 (in shares) | 1,875 | |||||||
Dividends: Common ($0.16, $0.16 and $0.16 per share for the years 2012, 2011 and 2010, respectively) | -605 | -605 | ||||||
Preferred stock | -475 | -475 | ||||||
Redemption of preferred stock | -11,285 | -11,285 | ||||||
Accretion and redemption costs | -52 | 148 | -200 | |||||
Dividend reinvestment plan | 93 | 11 | 82 | |||||
Dividend reinvestment plan (in shares) | 11 | |||||||
Balance at Dec. 31, 2012 | 54,183 | 5,227 | 50 | 61,615 | -152 | -14,915 | 2,358 | |
Balance (in shares) at Dec. 31, 2012 | 5,227 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 2,241 | 2,241 | ||||||
Other comprehensive income (loss) net of tax of $561, $2,061 and $307 for the year ended on 2012, 2011 and 2010, respectively | -3,238 | -3,238 | ||||||
Issuance of restricted stock | 60 | 493 | -553 | |||||
Issuance of restricted stock (in shares) | 60 | |||||||
Amortization of compensation on restricted stock | 112 | 112 | ||||||
Dividends: Common ($0.16, $0.16 and $0.16 per share for the years 2012, 2011 and 2010, respectively) | -519 | -519 | ||||||
Dividend reinvestment plan | 49 | 6 | 43 | |||||
Dividend reinvestment plan (in shares) | 6 | |||||||
Balance at Jun. 30, 2013 | $52,828 | $5,293 | $50 | $62,151 | ($593) | ($13,193) | ($880) | |
Balance (in shares) at Jun. 30, 2013 | 5,293 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Consolidated Statements of Changes in Shareholders' Equity | |
Other comprehensive income, tax | $564 |
Issuance of common stock, expenses | $1,200 |
Dividends: Common stock (in dollars per share) | $0.16 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities: | |||
Net income | $3,968 | $3,324 | $1,854 |
Adjustments to reconcile net income to net cash provided in operating activities: | |||
Depreciation | 862 | 841 | 882 |
Premium amortization | 3,112 | 1,968 | 1,421 |
Provision for loan losses | 496 | 1,420 | 1,878 |
Writedowns of other real estate owned | 317 | 261 | 333 |
Loss on sale of other real estate owned | 89 | 155 | 3 |
Originations of HFS loans | -134,275 | -60,488 | |
Sales of HFS loans | 128,342 | 56,763 | |
Amortization of intangibles | 204 | 517 | 621 |
Gain on sale of securities | -26 | -575 | -827 |
Other-than-temporary-impairment charges on securities | 200 | 297 | 1,560 |
Net decrease in fair value option instruments and derivatives | 58 | 166 | 581 |
Writedown of land | 170 | ||
Loss on early extinguishment of debt | 217 | 188 | |
Decrease in other assets | 2,260 | 1,214 | 1,016 |
Increase in accounts payable | 38 | 496 | 336 |
Net cash provided from operating activities | 6,032 | 6,547 | 9,658 |
Cash flows from investing activities: | |||
Proceeds from sale of securities available-for-sale | 59,012 | 56,003 | 85,456 |
Purchase of investment securities available-for-sale and other investments | -103,245 | -103,040 | -140,374 |
Maturity of investment securities available-for-sale | 43,144 | 40,441 | 42,910 |
Purchase of investment securities held-to-maturity | -10 | ||
Maturity/call of investment securities held-to-maturity | 8,874 | ||
(Increase) decrease in loans | -11,312 | 241 | -4,778 |
Proceeds from sale of other real estate owned | 5,728 | 3,020 | 3,208 |
Proceeds from sale of land | 10 | ||
Purchase of property and equipment | -806 | -308 | -242 |
Net cash provided (used) in investing activities | -7,479 | -3,633 | 4,600 |
Cash flows from financing activities: | |||
Increase in deposit accounts | 10,392 | 9,242 | 5,710 |
Advances from the Federal Home Loan Bank | 1,500 | 7,500 | |
Repayment of advances from the Federal Home Loan Bank | -9,235 | -31,921 | -5,232 |
Increase (decrease) in securities sold under agreements to repurchase | 2,284 | 929 | -7,990 |
Decrease in other borrowings | -120 | -44 | |
Proceeds from issuance of subordinated note payable | 2,500 | ||
Repayment of subordinated note payable | -2,500 | ||
Proceeds from sale Common Stock | 13,792 | ||
Redemption of Preferred Stock | -11,073 | ||
Repurchase of stock warrants | -510 | ||
Dividend reinvestment plan | 93 | 182 | 101 |
Dividends paid: Common Stock | -605 | -525 | -522 |
Preferred Stock | -475 | -670 | -664 |
Net cash provided from financing activities | 3,663 | -12,883 | -8,641 |
Net increase in cash and cash equivalents | 2,216 | -9,969 | 5,617 |
Cash and cash equivalents at beginning of period | 16,492 | 26,461 | 20,844 |
Cash and cash equivalents at end of period | 18,708 | 16,492 | 26,461 |
Cash paid during the period for: | |||
Interest | 6,023 | 7,706 | 9,413 |
Non-cash investing and financing activities: | |||
Unrealized (loss) gain on securities available-for-sale | 1,029 | 3,570 | -588 |
Transfer of loans to foreclosed property | 2,770 | 3,889 | 7,278 |
Transfer of HTM securities to AFS securities | $46,244 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||
Basis of Presentation | |||||||||
ORGANIZATION AND BASIS OF PRESENTATION | Note 1 — Basis of Presentation | Note 1—ORGANIZATION AND BASIS OF PRESENTATION | |||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | The consolidated financial statements include the accounts of First Community Corporation (the "Company") and its wholly owned subsidiary, First Community Bank (the "Bank"). The Company owns all of the common stock of FCC Capital Trust I. All material intercompany transactions are eliminated in consolidation. The Company was organized on November 2, 1994, as a South Carolina corporation, and was formed to become a bank holding company. The Bank opened for business on August 17, 1995. FCC Capital Trust I is an unconsolidated special purpose subsidiary organized for the sole purpose of issuing trust preferred securities. | ||||||||
The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax impact, at the dates and for the periods indicated (in thousands). All amounts are net of income taxes. | |||||||||
Three months | |||||||||
ended June 30, | |||||||||
2013 | 2012 | ||||||||
Beginning Balance | $ | 2,104 | $ | 2,192 | |||||
Other comprehensive loss before reclassifications(a) | (2,896 | ) | (742 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss)(a) | (88 | ) | 25 | ||||||
Net current-period other comprehensive income loss | (2,984 | ) | (717 | ) | |||||
Ending Balance | $ | (880 | ) | $ | 1,475 | ||||
Six months | |||||||||
ended June 30, | |||||||||
2013 | 2012 | ||||||||
Beginning Balance | $ | 2,358 | $ | 1,329 | |||||
Other comprehensive loss before reclassifications(a) | (3,140 | ) | (4 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss)(a) | (98 | ) | 150 | ||||||
Net current-period other comprehensive income (loss) | (3,238 | ) | 146 | ||||||
Ending Balance | $ | (880 | ) | $ | 1,475 | ||||
(a) All other comprehensive income (loss) and reclassifications are related to available-for-sale securities. | |||||||||
In the opinion of management, all adjustments necessary to fairly present the consolidated financial position and consolidated results of operations have been made. All such adjustments are of a normal, recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements and notes thereto are presented in accordance with the instructions for Form 10-Q. The information included in the Company’s 2012 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2013, should be referred to in connection with these unaudited interim financial statements. | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2012 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Use of Estimates | |
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. These principles require 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 that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. The estimation process includes management's judgment as to future losses on existing loans based on an internal review of the loan portfolio, including an analysis of the borrower's current financial position, the consideration of current and anticipated economic conditions and the effect on specific borrowers. In determining the collectability of loans management also considers the fair value of underlying collateral. Various regulatory agencies, as an integral part of their examination process, review the Company's allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors it is possible that the allowance for loan losses could change materially. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash on hand, due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell. Generally federal funds are sold for a one-day period and securities purchased under agreements to resell mature in less than 90 days. | |
Investment Securities | |
Investment securities are classified as either held-to-maturity, available-for-sale or trading securities. In determining such classification, securities that the Company has the positive intent and ability to hold to maturity are classified as held-to maturity and are carried at amortized cost. Securities classified as available-for-sale are carried at estimated fair values with unrealized gains and losses included in shareholders' equity on an after tax basis. Trading securities are carried at estimated fair value with unrealized gains and losses included in Non-interest income (See Note 4). | |
Gains and losses on the sale of available-for-sale securities and trading securities are determined using the specific identification method. Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are judged to be other than temporary are written down to fair value and charged to income in the Consolidated Statement of Income. | |
Premiums and discounts are recognized in interest income using the interest method over the period to maturity. | |
Mortgage Loans Held for Sale | |
The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company's loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company's name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in price with the investors on the same day that the loan was locked in with the Company's customers. Therefore, these loans present very little market risk for the Company. | |
The Company usually delivers to, and receives funding from, the investor within 30 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a "best efforts" basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. As a result of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is the same as the value of the loan amount at its origination. These loans are classified as Level 2. | |
Loans and Allowance for Loan Losses | |
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest is recognized over the term of the loan based on the loan balance outstanding. Fees charged for originating loans, if any, are deferred and offset by the deferral of certain direct expenses associated with loans originated. The net deferred fees are recognized as yield adjustments by applying the interest method. | |
The allowance for loan losses is maintained at a level believed to be adequate by management to absorb potential losses in the loan portfolio. Management's determination of the adequacy of the allowance is based on an evaluation of the portfolio, past loss experience, economic conditions and volume, growth and composition of the portfolio. | |
The Company considers a loan to be impaired when, based upon current information and events, it is believed that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that are considered impaired are accounted for at the lower of carrying value or fair value. The accrual of interest on impaired loans is discontinued when, in management's opinion, the borrower may be unable to meet payments as they become due, generally when a loan becomes 90 days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received first to principal and then to interest income. | |
Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the asset's estimated useful life. Estimated lives range up to 39 years for buildings and up to 10 years for furniture, fixtures and equipment. | |
Goodwill and Other Intangible Assets | |
Goodwill represents the cost in excess of fair value of net assets acquired (including identifiable intangibles) in purchase transactions. Other intangible assets represent premiums paid for acquisitions of core deposits (core deposit intangibles). Core deposit intangibles are being amortized on a straight-line basis over seven years. Goodwill and identifiable intangible assets are reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The annual valuation is performed on September 30 of each year. | |
Other Real Estate Owned | |
Other real estate owned includes real estate acquired through foreclosure. Other real estate owned is carried at the lower of cost (principal balance at date of foreclosure) or fair value minus estimated cost to sell. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent changes in the valuation allowance, and gains or losses on disposal are included in other expenses. | |
Comprehensive Income | |
The Company reports comprehensive income in accordance with ASC 220, "Comprehensive Income." ASC 220 requires that all items that are required to be reported under accounting standards as comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. The disclosures requirements have been included in the Company's consolidated statements of comprehensive income. | |
Mortgage Origination Fees | |
Mortgage origination fees relate to activities comprised of accepting residential mortgage applications, qualifying borrowers to standards established by investors and selling the mortgage loans to the investors under pre-existing commitments. The loans are funded by the investor at closing and the related fees received by the Company for these services are recognized at the time the loan is closed. | |
Advertising Expense | |
Advertising and public relations costs are generally expensed as incurred. External costs incurred in producing media advertising are expensed the first time the advertising takes place. External costs relating to direct mailing costs are expensed in the period in which the direct mailings are sent. | |
Income Taxes | |
A deferred income tax liability or asset is recognized for the estimated future effects attributable to differences in the tax bases of assets or liabilities and their reported amounts in the financial statements as well as operating loss and tax credit carry forwards. The deferred tax asset or liability is measured using the enacted tax rate expected to apply to taxable income in the period in which the deferred tax asset or liability is expected to be realized. | |
In 2006, the FASB issued guidance related to Accounting for Uncertainty in Income Taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB ASC topic 740-10, "Income Taxes". It also prescribes a recognition threshold and measurement of a tax position taken or expected to be taken in an enterprise's tax return. | |
Stock Based Compensation Cost | |
The Company accounts for stock based compensation under the fair value provisions of the accounting literature. Compensation expense is recognized in salaries and employee benefits. | |
The fair value of each grant is estimated on the date of grant using the Black-Sholes option pricing model. No options were granted in 2012, 2011 or 2010. | |
Earnings Per Common Share | |
Basic earnings per common share ("EPS") excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock and common stock equivalents. Common stock equivalents consist of stock options and warrants and are computed using the treasury stock method. | |
Subsequent Events | |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued and all material subsequent events have been either recognized or disclosed in the notes to the financial statements. | |
Segment Information | |
ASC Topic 280-10, "Segment Reporting," requires selected segment information of operating segments based on a management approach. The Company operates as one business segment. | |
Recently Issued Accounting Standards | |
In September 2011, the Intangibles topic was amended to permit an entity to consider qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. These amendments were effective for the Company on January 1, 2012. | |
In April 2011 the FASB issued ASU 2011-02 to assist creditors with their determination of when a restructuring is a Troubled Debt Restructuring ("TDR"). The determination is based on whether the restructuring constitutes a concession and whether the debtor is experiencing financial difficulties as both events must be present. The new guidance was effective for the Company beginning January 1, 2012 and did not have a material effect on the Company's TDR determinations. | |
In April 2011, the criteria used to determine effective control of transferred assets in the Transfers and Servicing topic of the ASC was amended by ASU 2011-03. The requirement for the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms and the collateral maintenance implementation guidance related to that criterion were removed from the assessment of effective control. The other criteria to assess effective control were not changed. The amendments were effective for the Company on January 1, 2012 and had no effect on the financial statements. | |
ASU 2011-04 was issued in May 2011 to amend the Fair Value Measurement topic of the ASC by clarifying the application of existing fair value measurement and disclosure requirements and by changing particular principles or requirements for measuring fair value or for disclosing information about fair value measurements. The amendments were effective for the Company beginning January 1, 2012 and had no effect on the financial statements. | |
The Comprehensive Income topic of the ASC was amended in June 2011. The amendment eliminates the option to present other comprehensive income as a part of the statement of changes in stockholders' equity and requires consecutive presentation of the statement of net income and other comprehensive income. The amendments were applicable to the Company on January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements. Companies should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect prior to the amendments while FASB finalizes its conclusions regarding future requirements. | |
In July 2012, the Intangibles topic was amended to permit an entity to consider qualitative factors to determine whether it is more likely than not that indefinite-lived intangible assets are impaired. If it is determined to be more likely than not that indefinite-lived intangible assets are impaired, then the entity is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The amendments are not expected to have a material effect on the Company's financial statements. | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. | |
Risk and Uncertainties | |
In the normal course of business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on a different basis, than its interest-earning assets. Credit risk is the risk of default on the Company's loan and investment portfolios that results from borrowers' or issuer's inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans and investments and the valuation of real estate held by the Company. | |
The Company is subject to regulations of various governmental agencies (regulatory risk). These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances and operating restrictions from regulators' judgments based on information available to them at the time of their examination. | |
Reclassifications | |
Certain captions and amounts in the 2011 and 2010 consolidated financial statements were reclassified to conform to the 2012 presentation. | |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2012 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | Note 3—BUSINESS COMBINATIONS |
The Bank expanded its residential mortgage business unit with the acquisition of the assets of Palmetto South Mortgage Corporation ("Palmetto South"), effective July 31, 2011. Palmetto South, which operates as a division of the Bank, offers mortgage loan products for home purchase or refinance in the South Carolina market area. The acquisition price will be paid during a three year earn out period with the actual amount calculated based on the achievement of certain profitability metrics. The earn out terms over the three year period provide for contingent consideration which ranges from $0 to $1.2 million based upon annual net income. Management anticipates the amount will be approximately $600 thousand based upon recent past operating results and as such a contingent liability was recognized for this amount when considering business combination accounting rules. The purchase price of operating assets was $22 thousand. This acquisition was not considered material to the financial statements. | |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | Note 3—Investment Securities | Note 4—INVESTMENT SECURITIES | ||||||||||||||||||||||||||||||||||||||
The amortized cost and estimated fair values of investment securities are summarized below: | The amortized cost and estimated fair values of investment securities are summarized below: | |||||||||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE: | AVAILABLE-FOR-SALE: | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | (Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||
Gains | Losses | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||||||
June 30, 2013: | Gains | Losses | ||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,518 | $ | 1 | $ | 57 | $ | 1,462 | December 31, 2012: | |||||||||||||||||||||||||||||||
Mortgage-backed securities | 122,527 | 1,492 | 1,370 | 122,649 | Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | |||||||||||||||||||||||||||
Small Business Administration pools | 56,886 | 711 | 293 | 57,304 | Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | |||||||||||||||||||||||||||||||
State and local government | 41,753 | 108 | 1,939 | 39,922 | Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | |||||||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 2 | 42 | 2,309 | State and local government | 31,483 | 936 | 46 | 32,373 | |||||||||||||||||||||||||||||||
$ | 225,033 | $ | 2,314 | $ | 3,701 | $ | 223,646 | Corporate and other securities | 2,349 | 53 | 1 | 2,401 | ||||||||||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | $ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | ||||||||||||||||||||||||
Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | ||||||||||||||||||||||||||||||||||||
Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | December 31, 2011: | |||||||||||||||||||||||||||||||||||
State and local government | 31,483 | 936 | 46 | 32,373 | Government sponsored enterprises | $ | 31 | $ | 3 | $ | — | $ | 34 | |||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 53 | 1 | 2,401 | Mortgage-backed securities | 141,103 | 2,876 | 2,348 | 141,631 | |||||||||||||||||||||||||||||||
$ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | Small Business Administration pools | 35,889 | 634 | 44 | 36,479 | ||||||||||||||||||||||||||||
State and local government | 19,617 | 871 | — | 20,488 | ||||||||||||||||||||||||||||||||||||
During the six months ended June 30, 2013 and June 30, 2012, the Company received proceeds of $3.5 million and $49.1 million, respectively, from the sale of investment securities available-for-sale. Gross realized gains amounted to $148.4 thousand for the six months ended June 30, 2013 and there were no gross realized losses for the same period. For the six months ended June 30, 2012, gross realized gains amounted to $2.0 million and gross realized losses amounted to $2.1 million. During the three months ended June 30, 2013 and June 30, 2012, the Company received proceeds of $ 1.7 million and $44.8 million, respectively, from the sale of investment securities available-for-sale. Gross realized gains amounted to $133 thousand for the three months ended June 30, 2013 and there were no gross realized losses for the same period. For the three months ended June 30, 2012, gross realized gains amounted to $1.9 million and gross realized losses amounted to $1.9 million. | Corporate and other securities | 2,432 | 54 | 86 | 2,400 | |||||||||||||||||||||||||||||||||||
At June 30, 2013, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.0 million, mutual funds at $829.9 thousand, foreign debt of $59.5 thousand, and Corporate preferred stock in the amount of $416.8 thousand. At December 31, 2012, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.0 million, mutual funds at $884.5 thousand, foreign debt of $59.7 thousand, Federal Home Loan Mortgage Corporation preferred stock of $30.0 thousand and Corporate preferred stock in the amount of $416.8 thousand. | $ | 199,072 | $ | 4,438 | $ | 2,478 | $ | 201,032 | ||||||||||||||||||||||||||||||||
Other investments, at cost, include Federal Home Loan Bank (“FHLB”) stock in the amount of $2.3 million and $2.5 million at June 30, 2013 and December 31, 2012 respectively. | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2012, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.0 million, mutual funds at $884.5 thousand, foreign debt of $59.7 thousand, Federal Home Loan Mortgage Corporation preferred stock of $30.0 thousand and Corporate preferred stock in the amount of $416.7 thousand. At December 31, 2011, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.4 million, mutual funds at $904.9 thousand, foreign debt of $59.6 thousand and Federal Home Loan Mortgage Corporation preferred stock of $20.9 thousand | ||||||||||||||||||||||||||||||||||||||||
During the three month period ended June 30, 2012 and during the three and six month periods ended June 30, 2013, the Company did not record any other-than-temporary impairment (OTTI) losses. During the six month period ended June 30, 2012, the Company recorded OTTI losses on available-for-sale securities as follows: | ||||||||||||||||||||||||||||||||||||||||
Other investments, at cost include Federal Home Loan Bank ("FHLB") stock in the amount of $2.5 million at December 31, 2012 and FHLB and Federal Reserve stock in the amount of $1.8 million and $3.8 million at December 31, 2011, respectively. | ||||||||||||||||||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||||||||||||||||||
ended June 30, | For the year ended December 31, 2012, proceeds from the sale of securities available-for-sale amounted to $55.8 million, gross realized gains amounted to $2.2 million and gross realized losses amounted to $2.1million. For the year ended December 31, 2011, proceeds from the sale of securities available-for-sale amounted to $56.0 million, gross realized gains amounted to $2.6 million and gross realized losses amounted to $2.0 million. For the year ended December 31, 2010, proceeds from the sale of securities available-for-sale amounted to $85.5 million, gross realized gains amounted to $2.5 million and gross realized losses amounted to $1.7 million. The tax provision applicable to the net realized gain was approximately $9.0 thousand, $201.0 thousand, and $289.0 thousand for 2012, 2011 and 2010, respectively. | |||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available-for- | The amortized cost and fair value of investment securities at December 31, 2012, by contractual maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. | ||||||||||||||||||||||||||||||||||||||
sale securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | Available-for-sale | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 200 | (Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||||||||||||
During 2013 and 2012, OTTIs occurred for which only a portion was attributed to credit loss and recognized in earnings. The remainder was reported in other comprehensive income. The following is an analysis of amounts relating to credit losses on debt securities recognized in earnings during the six months ended June 30, 2013 and 2012. | Due in one year or less | $ | 26,725 | $ | 26,722 | |||||||||||||||||||||||||||||||||||
Due after one year through five years | 83,068 | 84,630 | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Due after five years through ten years | 30,565 | 31,161 | ||||||||||||||||||||||||||||||||||||
Available | Available | Due after ten years | 59,569 | 60,932 | ||||||||||||||||||||||||||||||||||||
for | for | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Sale | Sale | $ | 199,927 | $ | 203,445 | ||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 271 | $ | 930 | ||||||||||||||||||||||||||||||||||||
Securities with an amortized cost of $29.0 million and fair value of $30.3 million at December 31, 2012, were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Securities with an amortized cost of $35.1 million and fair value of $36.6 million at December 31, 2011, were pledged to secure FHLB advances, public deposits, demand notes due the Treasury and securities sold under agreements to repurchase. | ||||||||||||||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | — | 173 | ||||||||||||||||||||||||||||||||||||||
The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||||||||||
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | — | 27 | ||||||||||||||||||||||||||||||||||||||
Other-than-temporary-impairment previously recognized on securities sold | — | (679 | ) | |||||||||||||||||||||||||||||||||||||
Realized losses during the period | (46 | ) | (136 | ) | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 225 | $ | 315 | December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||||||||
In evaluating the non-agency mortgage-backed securities, relevant assumptions, such as prepayment rate, default rate and loss severity on a loan level basis, are used in determining the expected recovery of the contractual cash flows. The balance of the underlying portfolio cash flows are evaluated using ongoing assumptions for loss severities, prepayment rates and default rates. The ongoing assumptions for average prepayment rate, default rate and severity used in the valuations were approximately 16.7%, 7.6%, and 50.9%, respectively. The underlying collateral on substantially all of these securities is fixed rate residential first mortgages located throughout the United States. The underlying collateral includes various percentages of owner-occupied as well as investment related single-family, 2-4 family and condominium residential properties. The securities were purchased at various discounts to par value. Based on the assumptions used in valuing the securities, the Company believes the existing discount and remaining subordinated collateral provide coverage against future credit losses on the downgraded securities for which no OTTI has been recognized. | Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | ||||||||||||||||||||||||||||
The following table shows gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position at June 30, 2013 and December 31, 2012. | Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | |||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | State and local government | 2,599 | 46 | — | — | 2,599 | 46 | |||||||||||||||||||||||||||||||
June 30, 2013 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | |||||||||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | |||||||||||||||||||||||||||
Government Sponsored Enterprises | $ | 1,444 | $ | 57 | $ | — | $ | — | $ | 1,444 | $ | 57 | ||||||||||||||||||||||||||||
Small Business Administration Pools | 21,213 | 289 | 882 | 4 | 22,095 | 293 | ||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | 53,766 | 1,330 | 3,118 | 35 | 56,884 | 1,365 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | 64 | 1 | 983 | 4 | 1,047 | 5 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | 871 | 41 | 50 | 1 | 921 | 42 | ||||||||||||||||||||||||||||||||||
State and local government | 29,518 | 1,939 | — | — | 29,518 | 1,939 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
Total | $ | 106,876 | $ | 3,657 | $ | 5,033 | $ | 44 | $ | 111,909 | $ | 3,701 | December 31, 2011 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | Government Sponsored Enterprise mortgage-backed securities | $ | 25,113 | $ | 163 | $ | 3,269 | $ | 24 | $ | 28,382 | $ | 187 | |||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | Small Business Administration pools | 6,108 | 38 | 2,203 | 6 | 8,311 | 44 | ||||||||||||||||||||||||||||||
Available-for-sale securities: | Non-agency mortgage-backed securities | 574 | 3 | 13,275 | 2,158 | 13,849 | 2,161 | |||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | Corporate bonds and other | 940 | 60 | 524 | 26 | 1,464 | 86 | |||||||||||||||||||||
Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | Total | $ | 32,735 | $ | 264 | $ | 19,271 | $ | 2,214 | $ | 52,006 | $ | 2,478 | |||||||||||||||||||||
State and local government | 2,599 | 46 | — | — | 2,599 | 46 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | ||||||||||||||||||||||||||||||||||
Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | Government Sponsored Enterprise, Mortgage Backed Securities: Throughout 2008 and continuing through 2012, the bond markets and many institutional holders of bonds came under a great deal of stress partially as a result of increasing delinquencies in the mortgage lending market. At December 31, 2012, the Company owns mortgage-backed securities ("MBSs") including collateralized mortgage obligations ("CMOs") with an amortized cost of $107.3 million and approximate fair value of $109.4 million issued by government sponsored enterprises ("GSEs"). Current economic conditions have impacted MBSs issued by GSEs such as the Federal Home Loan Mortgage Corporation (the "FHLMC") and the Federal National Mortgage Association (the "FNMA"). These entities have experienced increasing delinquencies in the underlying loans that make up the MBSs and CMOs. As of December 31, 2012 and 2011, all of the MBSs issued by GSEs are classified as "Available for Sale." Unrealized losses on certain of these investments are not considered to b e "other than temporary," and we have the intent and ability to hold these until they mature or recover the current book value. The contractual cash flows of the investments are guaranteed by the GSE. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company's investment. Because the Company does not intend to sell these securities and it is more likely than not the Company will not be required sell these securities before a recovery of its amortized cost, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at December 31, 2012. | |||||||||||||||||||||||||||
Government Sponsored Enterprise, Mortgage-Backed Securities: At June 30, 2013, the Company owned mortgage-backed securities (“MBSs”), including collateralized mortgage obligations (“CMOs”), with an amortized cost of $119.9 million and approximate fair value of $120.0 million issued by government sponsored enterprises (“GSEs”). As of June 30, 2013 and December 31, 2012, all of the MBSs issued by GSEs were classified as “Available for Sale.” Unrealized losses on certain of these investments are not considered to be “other than temporary,” and we have the intent and ability to hold these until they mature or recover the current book value. The contractual cash flows of the investments are guaranteed by the GSE. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the Company does not intend to sell these securities and it is more likely than not the Company will not be required sell these securities before a recovery of its amortized cost, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at June 30, 2013. | Non-agency Mortgage Backed Securities: The Company also holds private label mortgage-backed securities ("PLMBSs"), including CMOs, at December 31, 2012 with an amortized cost of $3.1 million and approximate fair value of $2.7 million. Management monitors each of these securities on a quarterly basis to identify any deterioration in the credit quality, collateral values and credit support underlying the investments. | |||||||||||||||||||||||||||||||||||||||
Non-agency mortgage—backed securities: The Company also held private label mortgage-backed securities (“PLMBSs”), including CMOs, at June 30, 2013 with an amortized cost of $2.7 million and approximate fair value of $2.7 million. Management monitors each of these securities on a quarterly basis to identify any deterioration in the credit quality, collateral values and credit support underlying the investments. | During the year ended December 31, 2012, the Company identified two PLMBs with a fair value of $2.5 million that it considered other-than-temporarily-impaired. As prescribed by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 320-10-65, the Company recognized an impairment charge in earnings of $199.8 thousand (credit component) during year ended December 31, 2012. The $199.8 thousand represents the estimated credit losses on these securities for the year ended December 31, 2012. One of the securities identified as other-than-temporarily-impaired during the year ended December 31, 2012 was subsequently sold after the impairment was recognized. | |||||||||||||||||||||||||||||||||||||||
During the three and six months ended June 30, 2013, no OTTI charges were recorded in earnings for the PLMBS portfolio. During the six months ended June 30, 2012, the Company identified two PLMBS with a fair value of $2.5 million that it considered other-than-temporarily-impaired. As prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10-65, the Company recognized an impairment charge in earnings of $199.8 thousand (credit component) during the six months ended June 30, 2012. The $199.8 thousand represents the estimated credit losses on these securities for the six months ended June 30, 2012. One of the securities identified as other-than-temporarily-impaired during the six months ended June 30, 2012 was subsequently sold after the impairment was recognized. The credit losses were estimated by projecting the expected cash flows estimating prepayment speeds, increasing defaults and collateral loss severities. The credit loss portion of the impairment charge represents the difference between the present value of the expected cash flows and the amortized cost basis of the securities. During the three months ended June 30, 2012, no OTTI charges were recorded in earnings for the PLMBS portfolio. | For the year ended December 31, 2011, we recognized impairment charges on three PLMBs investments whereby the credit component was $293 thousand recognized through earnings and the amount recognized through other comprehensive income amounted to $(35) thousand. For the year ended December 31, 2010, we recognized impairment charges on nine PLMBs investments whereby the credit component was $477 thousand recognized through earnings and the amount recognized through other comprehensive income amounted to $2.9 million. For the year ended December 31, 2009, we recognized the credit impairment charges of $491 thousand as the credit component on five PLMBs securities through earnings and $1.7 million through other comprehensive income. The PLMBs continue to experience high levels of delinquencies in the underlying loans that make up the PLMBSs, and as a result we could experience additional OTTI in the future. | |||||||||||||||||||||||||||||||||||||||
The following table summarizes as of June 30, 2013 the number of CUSIPs, par value, carrying value and fair value of the non-agency MBSs/CMOs by credit rating. The credit rating reflects the lowest credit rating by any major rating agency. | As prescribed by FASB ASC 320-10-35 for the year ended December 31, 2012 and 2011, the Company recognized the credit component of OTTI on debt securities in earnings and the non-credit component in other comprehensive income (OCI) for those securities in which the Company does not intend to sell the security and it is more likely than not the Company will not be required to sell the securities prior to recovery. | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Corporate Bonds: Corporate bonds held by the Company are reviewed on a quarterly basis to identify downgrades by rating agencies as well as deterioration of the underlying collateral or the issuer's ability to service the debt obligation. As of December 31, 2012, the Company owns one corporate bond which is rated above investment grade. The Company does not consider this investment to be OTTI. | |||||||||||||||||||||||||||||||||||||||
Credit | Number | Par | Amortized | Fair | During the twelve months ended December 31, 2011, the Company recorded $4.0 thousand in OTTI charges on a preferred term security. During the third quarter of 2011, the Company sold this security and recorded an additional realized loss of $455 thousand. This loss was offset by the sale of two municipal bonds with a recorded gain of $488 thousand. During the fourth quarter of 2011, the Company sold an SLM Corporation bond that was rated below investment grade with a book value of $1 million and recorded a $73.0 thousand loss. | |||||||||||||||||||||||||||||||||||
Rating | of | Value | Cost | Value | ||||||||||||||||||||||||||||||||||||
CUSIPs | State and Local Governments and Other: Management monitors these securities on a quarterly basis to identify any deterioration in the credit quality. Included in the monitoring is a review of the credit rating, a financial analysis and certain demographic data on the underlying issuer. The Company does not consider these securities to be OTTI at December 31, 2012. | |||||||||||||||||||||||||||||||||||||||
AA | 2 | $ | 198 | $ | 198 | $ | 201 | |||||||||||||||||||||||||||||||||
A1 | 1 | 324 | 324 | 343 | During the years ended December 31, 2012, December 31, 2011 and December 31, 2010, the Company recorded OTTI losses on held-to-maturity and available-for-sale securities as follows: | |||||||||||||||||||||||||||||||||||
A3 | 1 | 281 | 281 | 283 | ||||||||||||||||||||||||||||||||||||
BBB | 3 | 240 | 240 | 237 | ||||||||||||||||||||||||||||||||||||
Baa1 | 1 | 65 | 65 | 64 | Year ended | |||||||||||||||||||||||||||||||||||
Baa2 | 1 | 33 | 33 | 33 | December 31, | |||||||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 1,847 | 1,528 | 1,542 | 2012 | |||||||||||||||||||||||||||||||||||
Total | 13 | $ | 2,988 | $ | 2,669 | $ | 2,703 | (Dollars in thousands) | Available- | |||||||||||||||||||||||||||||||
for-sale | ||||||||||||||||||||||||||||||||||||||||
Corporate Bonds: Corporate bonds held by the Company are reviewed on a quarterly basis to identify downgrades by rating agencies as well as deterioration of the underlying collateral or the issuer’s ability to service the debt obligation. As of June 30, 2013, the Company owns one corporate bond which is rated above investment grade. The Company does not consider this investment to be OTTI. | securities | |||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | ||||||||||||||||||||||||||||||||||||||
Small Business Administration Pools: These pools are guaranteed pass-thru with the full faith and credit of the United States government. Because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider the investments to be OTTI at June 30, 2013. | OTTI recognized in other comprehensive income (non-credit component) | 215 | ||||||||||||||||||||||||||||||||||||||
State and Local Governments and Other: Management monitors these securities on a quarterly basis to identify any deterioration in the credit quality. Included in the monitoring is a review of the credit rating, a financial analysis and certain demographic data on the underlying issuer. The Company does not consider these securities to be OTTI at June 30, 2013. | Net impairment losses recognized in earnings (credit component) | $ | 200 | |||||||||||||||||||||||||||||||||||||
The amortized cost and fair value of investment securities at June 30, 2013 by contractual maturity are as follows. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. MBSs are based on average life at estimated prepayment speeds. | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Value | Year ended | ||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 20,260 | $ | 20,442 | December 31, | |||||||||||||||||||||||||||||||||||
Due after one year through five years | 86,248 | 86,729 | 2011 | |||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 88,107 | 86,334 | (Dollars in thousands) | Available- | ||||||||||||||||||||||||||||||||||||
Due after ten years | 30,418 | 30,141 | for-sale | |||||||||||||||||||||||||||||||||||||
$ | 225,033 | $ | 223,646 | securities | ||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 262 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | (35 | ) | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 297 | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Held-to- | Available- | Total | |||||||||||||||||||||||||||||||||||||
maturity | for-sale | |||||||||||||||||||||||||||||||||||||||
mortgage- | securities | |||||||||||||||||||||||||||||||||||||||
backed | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 108 | $ | 4,310 | 4,418 | |||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | — | 2,858 | 2,858 | |||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 108 | $ | 1,452 | $ | 1,560 | ||||||||||||||||||||||||||||||||||
During 2012, 2011 and 2010, OTTIs occurred for which only a portion is attributed to credit loss and recognized in earnings. The remainder was reported in other comprehensive income. The following is a roll forward analysis of amounts relating to credit losses on debt securities recognized in earnings during the twelve months ended December 31, 2012, December 31, 2011 and December 31, 2010. | ||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2012, there were two non-agency mortgage backed securities with OTTI in which $200 thousand of OTTI representing the credit loss was recognized in earnings. The Company uses a third party to obtain information about the structure in order to assist in determining how the underlying cash flows will be distributed to each security. The following is a rollforward analysis of amounts relating to credit losses recognized in earnings: | ||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available | Available | Available | Held to | ||||||||||||||||||||||||||||||||||||
for Sale | for Sale | for Sale | maturity | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 930 | $ | 2,143 | $ | 545 | $ | 132 | ||||||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | 173 | 50 | 291 | 98 | ||||||||||||||||||||||||||||||||||||
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | 27 | 247 | 1,161 | 10 | ||||||||||||||||||||||||||||||||||||
Realized losses during the period | (180 | ) | (1,510 | ) | (94 | ) | — | |||||||||||||||||||||||||||||||||
Other-than-temporary impairment previously recognized in securities sold | (679 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Transfer to available-for-sale | — | — | 240 | (240 | ) | |||||||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 271 | $ | 930 | $ | 2,143 | $ | — | ||||||||||||||||||||||||||||||||
In evaluating the non-agency mortgage backed securities, relevant assumptions, such as prepayment rate, default rate and loss severity on a loan level basis, are used in determining the expected recovery of the contractual cash flows. The balance of the underlying portfolio cash flows are evaluated using ongoing assumptions for loss severities, prepayment rates and default rates. The ongoing assumptions for average prepayment rate, default rate and severity used in the valuations were approximately 13.7%, 8.0%, and 50.4%, respectively. The underlying collateral on substantially all of these securities are fixed rate residential first mortgages located throughout the United States. The underlying collateral includes various percentages of owner-occupied, as well as, investment related single-family, 2-4 family and condominium residential properties. The securities were purchased at various discounts to par value. Based on the assumptions used in valuing the securities, the existing discount and remaining subordinated collateral provide coverage against future credit losses on the downgraded securities for which no OTTI has been recognized. | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes as of December 31, 2012 the number of CUSIPs, carrying value and fair value of the non-agency mortgage-backed securities/CMOs by credit rating. The credit rating reflects the lowest credit rating by any major rating agency. All non-agency mortgage-backed /CMO securities are in the super senior or senior tranche. | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Credit Rating | Number | Par | Amortized | Fair | ||||||||||||||||||||||||||||||||||||
of | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
CUSIPs | ||||||||||||||||||||||||||||||||||||||||
AA | 2 | $ | 264 | $ | 264 | $ | 268 | |||||||||||||||||||||||||||||||||
A1 | 1 | 380 | 380 | 374 | ||||||||||||||||||||||||||||||||||||
A3 | 1 | 320 | 320 | 318 | ||||||||||||||||||||||||||||||||||||
A | 2 | 72 | 72 | 71 | ||||||||||||||||||||||||||||||||||||
BBB | 1 | 231 | 231 | 225 | ||||||||||||||||||||||||||||||||||||
Baa1 | 1 | 71 | 71 | 72 | ||||||||||||||||||||||||||||||||||||
Baa2 | 1 | 97 | 97 | 96 | ||||||||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 2,008 | 1,653 | 1,291 | ||||||||||||||||||||||||||||||||||||
Total | 13 | $ | 3,443 | $ | 3,088 | $ | 2,715 | |||||||||||||||||||||||||||||||||
LOANS
LOANS | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | Note 4—Loans | Note 5—LOANS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans summarized by category as of June 30, 2013 and December 31, 2012 are as follows: | Loans summarized by category are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 20,908 | $ | 20,924 | (Dollars in thousands) | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Commercial, financial and agricultural | $ | 20,924 | $ | 20,608 | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | 15,232 | 13,052 | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 38,363 | 38,892 | Construction | 13,052 | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 233,769 | 226,575 | Mortgage-residential | 38,892 | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage-commercial | 226,575 | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 25,437 | 27,173 | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 7,380 | 5,495 | Home equity | 27,173 | 27,976 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 341,089 | $ | 332,111 | Other | 5,495 | 5,335 | |||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2013 and December 31, 2012, there were $5.8 million and $9.7 million, respectively, of residential mortgage loans held for sale at fair value. These loans are originated with firm purchase commitments from various investors at the time the loans are closed. Generally, funds are received and the loans transferred to the investors within three to seven business days. | Total | $ | 332,111 | $ | 324,311 | |||||||||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses for the six months and three months ended June 30, 2013 and 2012 was as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses was as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,621 | $ | 4,699 | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 250 | 301 | Balance at the beginning of year | $ | 4,699 | $ | 4,911 | $ | 4,854 | |||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (523 | ) | (307 | ) | Provision for loan losses | 496 | 1,420 | 1,878 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 91 | 49 | Charged off loans | (742 | ) | (1,696 | ) | (1,948 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | Recoveries | 168 | 64 | 127 | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Balance at end of year | $ | 4,621 | $ | 4,699 | $ | 4,911 | |||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,534 | $ | 4,745 | The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the years ended December 31, 2012 and December 31, 2011 follows: | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 100 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (209 | ) | (95 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 14 | 21 | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||
The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the six months ended June 30, 2013 and the year ended December 31, 2012 is as follows: | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Beginning balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | ||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Charge-offs | 258 | — | 112 | 293 | — | 79 | — | 742 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | Recoveries | 42 | — | 86 | — | 3 | 37 | — | 168 | |||||||||||||||||||||||||||||||||||
2013 | Provisions | 223 | — | (253 | ) | 140 | (124 | ) | 2 | 508 | 496 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2012 | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | Ending balance | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | |||||||||||||||||||
Charge-offs | 7 | — | 36 | 397 | 44 | 39 | — | 523 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 20 | — | 62 | — | 1 | 8 | — | 91 | Ending balances: | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (87 | ) | 25 | 58 | 157 | (131 | ) | 110 | 118 | 250 | Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | Collectively evaluated for impairment | 338 | — | 235 | 1,322 | 400 | 17 | 2,309 | 4,621 | |||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Ending balance-total | $ | 20,924 | $ | 13,052 | $ | 38,892 | $ | 226,575 | $ | 27,173 | $ | 5,495 | $ | — | $ | 332,111 | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | — | $ | — | $ | 5 | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 37 | — | 357 | 5,772 | — | 10 | — | 6,176 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 264 | 25 | 314 | 1,082 | 226 | 96 | 2,427 | 4,434 | Collectively evaluated for impairment | 20,887 | 13,052 | 38,535 | 220,803 | 27,173 | 5,485 | — | 325,935 | |||||||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 20,908 | $ | 15,232 | $ | 38,363 | $ | 233,769 | $ | 25,437 | $ | 7,380 | $ | — | $ | 341,089 | ||||||||||||||||||||||||||||||||||||
Ending balances: | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 84 | — | 721 | 5,759 | — | 7 | — | 6,571 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||||||||||
Residential | Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 20,824 | $ | 15,232 | $ | 37,642 | $ | 228,010 | $ | 25,437 | $ | 7,373 | $ | — | $ | 334,518 | 2011 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Beginning balance | $ | 681 | $ | 905 | $ | 465 | $ | 1,404 | $ | 325 | $ | 88 | $ | 1,043 | $ | 4,911 | ||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Charge-offs | 265 | — | 186 | 861 | 285 | 99 | — | 1,696 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | Recoveries | 31 | — | 5 | — | 5 | 23 | — | 64 | |||||||||||||||||||||||||||||||||||
2012 | Provisions | (116 | ) | (905 | ) | 230 | 932 | 476 | 45 | 758 | 1,420 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2011 | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | Ending balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | |||||||||||||||||||
Charge-offs | 62 | — | 30 | 178 | — | 37 | — | 307 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 25 | — | 9 | — | 2 | 13 | — | 49 | Ending balances: | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (45 | ) | — | 106 | 16 | (78 | ) | 12 | 290 | 301 | Individually evaluated for impairment | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 2 | |||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | Collectively evaluated for impairment | 330 | — | 514 | 1,474 | 521 | 57 | 1,801 | 4,697 | |||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Ending balance-total | $ | 20,608 | $ | 11,767 | $ | 38,337 | $ | 220,288 | $ | 27,976 | $ | 5,335 | $ | — | $ | 324,311 | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 45 | — | 622 | 8,667 | — | 19 | — | 9,353 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 249 | — | 599 | 1,313 | 445 | 45 | 2,091 | 4,742 | Collectively evaluated for impairment | $ | 20,563 | $ | 11,767 | $ | 37,715 | $ | 211,621 | $ | 27,976 | $ | 5,316 | $ | — | $ | 314,958 | |||||||||||||||||||||||||||
Loans receivable: | Loans outstanding and available lines of credit to bank directors, executive officers and their related business interests amounted to $10.9 million and $11.3 million at December 31, 2012 and 2011, respectively. Repayments on these loans during the year ended December 31, 2012 were $855 thousand, and loans made amounted to $230 thousand. Repayments on these loans during the year ended December 31, 2011 were $577 thousand, and loans made amounted to $1.2 million. Related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 19,741 | $ | 12,302 | $ | 38,779 | $ | 221,880 | $ | 26,945 | $ | 5,266 | $ | — | $ | 324,913 | ||||||||||||||||||||||||||||||||||||
The following table presents at December 31, 2012, 2011 and 2010, loans individually evaluated and considered impaired under FAS ASC 310 "Accounting by Creditors for Impairment of a Loan." Impairment includes performing troubled debt restructurings. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 24 | — | 581 | 8,650 | — | 28 | — | 9,283 | ||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 19,717 | $ | 12,302 | $ | 38,198 | $ | 213,230 | $ | 26,945 | $ | 5,238 | $ | — | $ | 315,630 | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||
Total loans considered impaired at year end | $ | 6,176 | $ | 9,353 | $ | 9,587 | ||||||||||||||||||||||||||||||||||||||||||||||
Loans outstanding to bank directors, executive officers and their related business interests amounted to $9.7 million and $11.3 million at June 30, 2013 and June 30, 2012, respectively. Repayments on these loans during the six months ended June 30, 2013 were $2.1 million and loans made amounted to $500 thousand. Repayments on these loans during the six months ended June 30, 2012 were $208 thousand and loans made amounted to $77 thousand. Related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. | Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | $ | — | $ | 148 | $ | 378 | ||||||||||||||||||||||||||||||||||||||||||||||
The detailed activity in the allowance for loan losses as of and for the three months ended June 30, 2013 and the three months ended June 30, 2012 is as follows: | Related allowance | $ | — | $ | 2 | $ | 96 | |||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | $ | 6,176 | $ | 9,205 | $ | 9,209 | ||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Average impaired loans | $ | 6,704 | $ | 9,926 | $ | 10,576 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Amount of interest earned during period of impairment | $ | 179 | $ | 397 | $ | 323 | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2013 | The following tables are by loan category and present at December 31, 2012 and December 31, 2011 loans individually evaluated and considered impaired under FAS ASC 310 "Accounting by Creditors for Impairment of a Loan." Impairment includes performing troubled debt restructurings. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2013 | $ | 409 | $ | 21 | $ | 199 | $ | 1,075 | $ | 236 | $ | 78 | $ | 2,516 | $ | 4,534 | ||||||||||||||||||||||||||||||||||||
Charge-offs | — | — | 32 | 162 | 2 | 13 | — | 209 | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||||
Recoveries | 9 | — | 1 | — | 1 | 3 | — | 14 | December 31, 2012 | Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||||||||||||
Provisions | (154 | ) | 4 | 151 | 169 | (9 | ) | 28 | (89 | ) | 100 | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | With no allowance recorded: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | Mortgage-residential | 357 | 381 | — | 442 | 1 | ||||||||||||||||||||||||||||||||||||||
2012 | Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | ||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2012 | $ | 307 | $ | — | $ | 500 | $ | 1,430 | $ | 566 | $ | 53 | $ | 1,889 | $ | 4,745 | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||
Charge-offs | 62 | — | 17 | — | — | 16 | — | 95 | Other | 10 | 10 | — | 21 | — | ||||||||||||||||||||||||||||||||||||||
Recoveries | 13 | — | 2 | — | — | 6 | — | 21 | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (9 | ) | — | 114 | (117 | ) | (121 | ) | 2 | 202 | 71 | Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | Real estate: | |||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
The following table presents at June 30, 2013 and December 31, 2012 loans individually evaluated and considered impaired under FAS ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings. | Mortgage-residential | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total loans considered impaired | $ | 6,571 | $ | 6,176 | Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired for which there is a related allowance for loan loss: | Total: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | 57 | — | Commercial | 37 | 50 | — | 53 | — | ||||||||||||||||||||||||||||||||||||||||||||
Related allowance | 5 | — | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | 6,514 | 6,176 | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Average impaired loans | 7,719 | 6,704 | Mortgage-residential | 357 | 381 | — | 442 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables are by loan category and present at June 30, 2013, June, 2012 and December 31, 2012 loans individually evaluated and considered impaired under FAS ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings. | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | $ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | $ | — | ||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 664 | 679 | — | 749 | 15 | 744 | 12 | December 31, 2011 | Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||||||
Consumer: | With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Commercial | $ | 12 | $ | 19 | $ | — | $ | 21 | $ | — | ||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Mortgage-residential | 622 | 650 | — | 656 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | Mortgage-commercial | 8,552 | 8,975 | — | 9,066 | 382 | |||||||||||||||||||||||||||||||||||||||
Real estate: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 57 | 57 | 5 | 56 | 7 | 58 | 2 | Other | 19 | 19 | — | 30 | 1 | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Commercial | 33 | 33 | 1 | 36 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Mortgage-commercial | 115 | 115 | 1 | 117 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | Consumer: | |||||||||||||||||||||||||||||||||||||||
Real estate: | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 721 | 736 | 5 | 805 | 22 | 802 | 14 | Total: | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Commercial | 45 | 52 | 1 | 57 | 2 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | Mortgage-residential | 622 | 650 | — | 656 | 4 | ||||||||||||||||||||||||||||||||||||||||
$ | 6,571 | $ | 7,256 | $ | 5 | $ | 7,719 | $ | 127 | $ | 7,847 | $ | 30 | Mortgage-commercial | 8,667 | 9,090 | 1 | 9,183 | 390 | |||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Three months ended | Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | Other | 19 | 19 | — | 30 | 1 | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | $ | 9,353 | $ | 9,811 | $ | 2 | $ | 9,926 | $ | 397 | |||||||||||||||||||||||||||||||||||
With no allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | ||||||||||||||||||||||||||||||||||||||
Real estate: | The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be "Pass" rated loans. As of December 31, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of December 31, 2012 and December 31, 2011, no loans were classified as doubtful. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | (Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | — | — | December 31, 2012 | Mention | |||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | — | Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | |||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Mortgage—residential | 36,493 | 1,677 | 722 | — | 38,892 | |||||||||||||||||||||||||||||||||||||||
Mortgage—commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | Home Equity | 26,604 | 124 | 445 | — | 27,173 | ||||||||||||||||||||||||||||||||
Real estate: | Other | 5,475 | 3 | 17 | — | 5,495 | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | ||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | |||||||||||||||||||||||||||||||||||||||||||||
$ | 9,283 | $ | 9,750 | $ | — | $ | 10,316 | $ | 144 | $ | 12,446 | $ | 70 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | December 31, 2011 | Mention | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Commercial, financial & agricultural | $ | 19,827 | $ | 499 | $ | 282 | $ | — | $ | 20,608 | ||||||||||||||||||||||||||||||||||||
December 31, 2012 | Investment | Balance | Allowance | Investment | Recognized | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | Construction | 6,764 | — | 5,003 | — | 11,767 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | Mortgage—residential | 37,063 | 305 | 969 | — | 38,337 | ||||||||||||||||||||||||||||||||||||
Real estate: | Mortgage—commercial | 200,984 | 8,009 | 11,295 | — | 220,288 | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | Home Equity | 27,692 | 38 | 246 | — | 27,976 | |||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | Other | 5,311 | 5 | 19 | — | 5,335 | |||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | Total | $ | 297,641 | $ | 8,856 | $ | 17,814 | $ | — | $ | 324,311 | ||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | At December 31, 2012 and 2011, non-accrual loans totaled $4.7 million and $5.4 million, respectively. The gross interest income which would have been recorded under the original terms of the non-accrual loans amounted to $352 thousand and $224 thousand in 2012 and 2011, respectively. Interest recorded on non-accrual loans in 2012 and 2011 amounted to $112 thousand and $163 thousand, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Troubled debt restructurings ("TDRs") that are still accruing are included in impaired loans at December 31, 2012 and 2011 amounted to $1.5 million and $3.9 million, respectively. Interest earned during 2012 and 2011 on these loans amounted to $123 thousand and $234 thousand, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | Loans greater than 90 days delinquent and still accruing interest at December 31, 2012 and 2011 amounted to $55 thousand and $25 thousand, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | The following tables are by loan category and present loans past due and on non-accrual status as of December 31, 2012 and December 31, 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | |||||||||||||||||||||||||||||||||||||||||||||
Total: | December 31, 2012 | Past Due | Past Due | 90 Days and | Due | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 37 | 50 | — | 53 | — | Accruing | ||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | |||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | Construction | — | — | — | — | — | 13,052 | 13,052 | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | Mortgage—residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage—commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | ||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | |||||||||||||||||||||||||||||||||||||||
$ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | |||||||||||||||||||||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: | Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | |||||||||||||||||||||||||||||||||||||
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | (Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2011 | Past Due | Past Due | 90 Days and | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2013 and December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of June 30, 2013 and December 31, 2012, no loans were classified as doubtful. | Accruing | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 147 | $ | 123 | $ | — | $ | 12 | $ | 282 | $ | 20,326 | $ | 20,608 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Pass | Mention | Substandard | Doubtful | Total | Construction | — | — | — | — | — | 11,767 | 11,767 | |||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,741 | $ | 52 | $ | 115 | $ | — | $ | 20,908 | Mortgage—residential | 391 | 95 | — | 623 | 1,109 | 37,228 | 38,337 | ||||||||||||||||||||||||||||||||||
Real estate: | Mortgage—commercial | 1,382 | 966 | 25 | 4,749 | 7,122 | 213,166 | 220,288 | ||||||||||||||||||||||||||||||||||||||||||||
Construction | 12,182 | 1,222 | 1,828 | — | 15,232 | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 35,900 | 1,186 | 1,277 | — | 38,363 | Home equity | 45 | — | — | — | 45 | 27,931 | 27,976 | |||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 217,627 | 5,899 | 10,243 | — | 233,769 | Other | 42 | 18 | — | 19 | 79 | 5,256 | 5,335 | |||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 25,156 | 139 | 142 | — | 25,437 | Total | $ | 2,007 | $ | 1,202 | $ | 25 | $ | 5,403 | $ | 8,637 | $ | 315,674 | $ | 324,311 | ||||||||||||||||||||||||||||||||
Other | 7,357 | 14 | 9 | — | 7,380 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 318,963 | $ | 8,512 | $ | 13,614 | $ | — | $ | 341,089 | ||||||||||||||||||||||||||||||||||||||||||
As a result of adopting the amendments in ASU 2011-02, the Bank reassessed all restructurings that occurred on or after the beginning of the fiscal year of adoption (January 1, 2011) to determine whether they are considered TDRs under the amended guidance. The Bank identified as TDRs certain loans for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying those loans as TDRs, the Bank identified them as impaired under the guidance in ASC 310-10-35. The amendments in ASU 2011-02 require prospective application of the impairment measurement guidance in ASC 310-10-35 for those loans newly identified as impaired. At December 31, 2012, the recorded investment in loans for which the allowance was previously measured under a general allowance methodology and are now impaired under ASC 310-10-35 was $3.3 million, and no allowance for loan losses was associated with those loans. At December 31, 2011, the recorded investment in loans for which the allowance was previously measured under a general allowance methodology and are now impaired under ASC 310-10-35 was $7.7 million, and a $2 thousand allowance for loan losses was associated with those loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | |||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Pass | Mention | Substandard | Doubtful | Total | The following table, by loan category, present loans determined to be TDRs during the twelve month period ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | For the twelve months ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 36,493 | 1,677 | 722 | — | 38,892 | Troubled Debt | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||
Consumer: | (Dollars in thousands) | Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 26,604 | 124 | 445 | — | 27,173 | Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||
Other | 5,475 | 3 | 17 | — | 5,495 | Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | Mortgage—Commercial | 1 | $ | 40 | $ | 40 | ||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 40 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2013 and December 31, 2012, non-accrual loans totaled $6.0 million and $4.7 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that are still accruing and included in impaired loans at June 30, 2013 and December 31, 2012 amounted to $593 thousand and $1.5 million, respectively. Troubled debt restructurings in nonaccrual status at June 30, 2013 and December 31, 2012 amounted to $2.2 million and $1.8 million, respectively. | Mortgage—Commercial | 2 | $ | 596 | $ | 596 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans greater than ninety days delinquent and still accruing interest at December 31, 2012 amounted to $55 thousand. There were no loans greater than ninety days delinquent and still accruing interest at June 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 636 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
The following tables are by loan category and present loans past due and on non-accrual status as of June 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | During the twelve month ended December 31, 2012, the Company modified three loans that were considered to be TDRs. The payment and interest rate were lowered for two of these loans and the payment was modified to interest only for one loan. | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Days | Past Due | than 90 | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | The following table, by loan category, present loans determined to be TDRs during the twelve month period ended December 31, 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 16 | $ | — | $ | — | $ | 84 | $ | 100 | $ | 20,808 | $ | 20,908 | ||||||||||||||||||||||||||||||||||||||
Real estate: | For the twelve months ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 15,232 | 15,232 | Troubled Debt | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 514 | 70 | — | 663 | 1,247 | 37,116 | 38,363 | Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 1,448 | 464 | — | 5,224 | 7,136 | 226,633 | 233,769 | (Dollars in thousands) | Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||||
Consumer: | Investment | Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 170 | 21 | — | — | 191 | 25,246 | 25,437 | Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||
Other | 53 | 3 | — | 7 | 63 | 7,317 | 7,380 | Mortgage—Commercial | 5 | $ | 741 | $ | 741 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 2,201 | $ | 558 | $ | — | $ | 5,978 | $ | 8,737 | $ | 332,352 | $ | 341,089 | Commercial & Industrial | 2 | 43 | 43 | ||||||||||||||||||||||||||||||||||
Total nonaccrual | 7 | $ | 784 | $ | 784 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Days | Past Due | than 90 | Due | Accrual | |||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | Mortgage—Commercial | 1 | $ | 3,138 | $ | 3,138 | |||||||||||||||||||||||||||||||||||||||||||||
Accruing | Total Accrual | 1 | $ | 3,138 | $ | 3,138 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||
Real estate: | Total TDRs | 8 | $ | 3,922 | $ | 3,922 | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 13,052 | 13,052 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | During the twelve months ended December 31, 2011, the Bank modified eight loans that were considered to be TDRs. The payment and interest rate were lowered for six of these loans, the payment was lowered for one loan and for one loan the business and guarantor were released. One TDR that had been restructured with a lower payment in 2011 was paid out during the fourth quarter of 2011. | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | The following table, by loan category, presents loans determined to be TDRs in the twelve months ended December 31, 2011 that had payment defaults during the period ended December 31, 2011. There were no loans determined to be TDRs in the twelve months ended December 31, 2012 that subsequently defaulted during the twelve month period ended December 31, 2012. Defaulted loans are those loans that are greater than 89 days past due. | ||||||||||||||||||||||||||||||||||||||||||||
Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | ||||||||||||||||||||||||||||||||||||||
For the twelve months | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As a result of adopting the amendments in Accounting Standards Update (ASU) 2011-02 (Receivables-Topic 310), the Company reassessed all restructurings that occurred on or after the beginning of the fiscal year of adoption (January 1, 2011) to determine whether they are considered TDRs under the amended guidance. The Company identified as TDRs certain loans for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying those loans as TDRs, the Company identified them as impaired under the guidance in ASC 310-10-35. The amendments in ASU 2011-02 require prospective application of the impairment measurement guidance in ASC 310-10-35 for those loans newly identified as impaired. | ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables, by loan category, present loans determined to be TDRs during the six month period ended June 30, 2013 and June 30, 2012 and for the three month period ended June 30, 2012. There were no loans determined to be TDRs during the three month period ended June 30, 2013. | Restructurings that | |||||||||||||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | ||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2013 | this period | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | (Dollars in thousands) | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | of | Investment | |||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | Mortgage—Commercial | 4 | $ | 704 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Commercial & Industrial | 1 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 257 | $ | 257 | |||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 5 | $ | 715 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 257 | $ | 257 | |||||||||||||||||||||||||||||||||||||||||||||||
As shown in the table above, one loan was determined to be a TDR during the six months ended June 30, 2013. The loan was modified to extend the terms outside the Company’s guidelines. | During the twelve month period ended December 31, 2011, five nonaccrual loans that had previously been restructured, had payment defaults. | |||||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2012 | In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. All non-accrual loans are written down to its corresponding collateral value. All TDR accruing loans and where the loan balance exceeds the present value of cash flow will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Bank will be unable to collect all amounts due including both principal and interest according to the contractual terms of the loan agreement. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
During the three and six months ended June 30, 2012, the Company modified three loans that were considered to be TDRs. The payment and interest rate were lowered for two of these loans and the payment was modified to interest only for one loan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables, by loan category, present loans determined to be TDRs in the last twelve months that subsequently defaulted during the three or six month periods ended June 30, 2012. There were no loans determined to be TDRs in the last twelve months that subsequently defaulted during the three or six month periods ended June 30, 2013. Defaulted loans are those loans that are greater than 89 days past due. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the six months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
During the three and six months ended June 30, 2012, one loan that had previously been restructured defaulted. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. Each non-accrual loan is written down to its corresponding collateral value. All TDR accruing loans that have a loan balance which exceeds the present value of cash flow will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Company will be unable to collect all amounts due, including both principal and interest, according to the contractual terms of the loan agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | Note 6 — Fair Value of Financial Instruments | Note 6—FAIR VALUE MEASUREMENT | ||||||||||||||||||||||||||||||||
The Company adopted FASB ASC Fair Value Measurement Topic 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | The Company adopted FASB ASC Fair Value Measurement Topic 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||||||||||||||
Level l | Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||||
Level l | Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 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. | |||||||||||||||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 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. | |||||||||||||||||||||||||||||||||
FASB ASC 825-10-50 "Disclosure about Fair Value of Financial Instruments", requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below. | ||||||||||||||||||||||||||||||||||
FASB ASC 825-10-50 “Disclosure about Fair Value of Financial Instruments”, requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below. | ||||||||||||||||||||||||||||||||||
Cash and short term investments—The carrying amount of these financial instruments (cash and due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell) approximates fair value. All mature within 90 days and do not present unanticipated credit concerns and are classified as Level 1. | ||||||||||||||||||||||||||||||||||
Cash and short term investments—The carrying amount of these financial instruments (cash and due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell) approximates fair value. All mature within 90 days and do not present unanticipated credit concerns and are classified as Level 1. | ||||||||||||||||||||||||||||||||||
Investment Securities—Measurement is on a recurring basis based upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, or by dealers or brokers in active over-the-counter markets. Level 2 securities include mortgage-backed securities issued both by government sponsored enterprises and private label mortgage-backed securities. Generally these fair values are priced from established pricing models. Level 3 securities include corporate debt obligations and asset—backed securities that are less liquid or for which there is an inactive market. | ||||||||||||||||||||||||||||||||||
Investment Securities—Measurement is on a recurring basis based upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, or by dealers or brokers in active over-the-counter markets. Level 2 securities include mortgage-backed securities issued both by government sponsored enterprises and private label mortgage-backed securities. Generally these fair values are priced from established pricing models. Level 3 securities include corporate debt obligations and asset—backed securities that are less liquid or for which there is an inactive market. | ||||||||||||||||||||||||||||||||||
Loans Held for Sale—The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company's loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company's name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in by price with the investors on the same day that the loan was locked in with the Company's customers. Therefore, these loans present very little market risk for the Company and are classified as Level 2. The carrying amount of these loans approximates fair value. | ||||||||||||||||||||||||||||||||||
Loans Held for Sale— The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company’s loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in price with the investors on the same day that the loan was locked in with the company’s customers. Therefore, these loans present very little market risk for the Company and are classified as Level 2. The carrying amount of these loans approximates fair value. | ||||||||||||||||||||||||||||||||||
Loans—The fair value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as Level 2. As discount rates are based on current loan rates as well as management estimates, the fair values presented may not be indicative of the value negotiated in an actual sale. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. | ||||||||||||||||||||||||||||||||||
Loans—The fair value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as Level 2. As discount rates are based on current loan rates as well as management estimates, the fair values presented may not be indicative of the value negotiated in an actual sale. | ||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO)—OREO is carried at the lower of carrying value or fair value on a non-recurring basis. Fair value is based upon independent appraisals or management's estimation of the collateral and is considered a Level 3 measurement. | ||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO) — OREO is carried at the lower of carrying value or fair value on a non-recurring basis. Fair value is based upon independent appraisals or management’s estimation of the collateral and is considered a Level 3 measurement. When the OREO value is based upon a current appraisal or when a current appraisal is not available or there is estimated further impairment, the measurement is considered a Level 3 measurement. | ||||||||||||||||||||||||||||||||||
Accrued Interest Receivable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Accrued Interest Receivable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Interest rate swap—The fair value approximates the carrying value and is classified as Level 3. | ||||||||||||||||||||||||||||||||||
Interest rate swap—The fair value approximates the carrying value and is classified as Level 3. | ||||||||||||||||||||||||||||||||||
Deposits—The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. Deposits are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Deposits—The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. Deposits are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances—Fair value is estimated based on discounted cash flows using current market rates for borrowings with similar terms and are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances—Fair value is estimated based on discounted cash flows using current market rates for borrowings with similar terms and are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Short Term Borrowings—The carrying value of short term borrowings (securities sold under agreements to repurchase and demand notes to the Treasury) approximates fair value. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Short Term Borrowings—The carrying value of short term borrowings (securities sold under agreements to repurchase and demand notes to the Treasury) approximates fair value. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures—The fair values of junior subordinated debentures is estimated by using discounted cash flow analyses based on incremental borrowing rates for similar types of instruments. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures—The fair values of junior subordinated debentures is estimated by using discounted cash flow analyses based on incremental borrowing rates for similar types of instruments. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Accrued Interest Payable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Accrued Interest Payable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Commitments to Extend Credit—The fair value of these commitments is immaterial because their underlying interest rates approximate market. | ||||||||||||||||||||||||||||||||||
Commitments to Extend Credit—The fair value of these commitments is immaterial because their underlying interest rates approximate market. | ||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value by classification Level of the Company's financial instruments as of December 31, 2012 are as follows: | ||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value by classification Level of the Company’s financial instruments as of June 30, 2013 are as follows: | ||||||||||||||||||||||||||||||||||
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | Carrying | ||||||||||||||||||||||||||||
Amount | (Dollars in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets: | Financial Assets: | |||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 24,287 | $ | 24,287 | $ | 24,287 | $ | — | $ | — | Cash and short term investments | $ | 18,296 | $ | 18,296 | $ | 18,296 | $ | — | $ | — | |||||||||||||
Available-for-sale securities | 223,646 | 223,646 | 830 | 222,399 | 417 | Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||
Other investments, at cost | 2,269 | — | — | — | 2,269 | Other investments, at cost | 2,527 | — | — | — | 2,527 | |||||||||||||||||||||||
Loans held for sale | 5,789 | 5,789 | — | 5,789 | — | Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | |||||||||||||||||||||||
Net Loans receivable | 336,650 | 340,151 | — | 333,580 | 6,571 | Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | |||||||||||||||||||||||
Accrued interest | 2,177 | 2,177 | 2,177 | — | — | Accrued interest | 2,098 | 2,098 | 2,098 | — | — | |||||||||||||||||||||||
Interest rate swap | (172 | ) | (172 | ) | — | — | (172 | ) | Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | |||||||||||||||||
Financial liabilities: | Financial liabilities: | |||||||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 105,478 | $ | 105,478 | $ | — | $ | 105,478 | $ | — | Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | |||||||||||||
NOW and money market accounts | 186,778 | 186,778 | — | 186,778 | — | NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | |||||||||||||||||||||||
Savings | 47,238 | 47,238 | — | 47,238 | — | Savings | 41,100 | 41,100 | — | 41,100 | — | |||||||||||||||||||||||
Time deposits | 170,125 | 171,732 | — | 171,732 | — | Time deposits | 185,477 | 187,313 | — | 187,313 | — | |||||||||||||||||||||||
Total deposits | 509,619 | 511,226 | — | 511,226 | — | |||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 34,335 | 38,458 | — | 38,458 | — | Total deposits | 474,977 | 476,813 | — | 476,813 | — | |||||||||||||||||||||||
Short term borrowings | 15,650 | 15,650 | — | 15,650 | — | Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | |||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | |||||||||||||||||||||||
Accrued interest payable | 666 | 666 | 666 | — | — | Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | |||||||||||||||||||||||
Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | |||||||||||||||||||||||||||||
The carrying amount and estimated fair value of the Company’s financial instruments as of December 31, 2012 are as follows: | ||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value of the Company's financial instruments as of December 31, 2011 are as follows: | ||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | December 31, 2011 | ||||||||||||||||||||||||||||
Amount | (Dollars in thousands) | Carrying | Fair | |||||||||||||||||||||||||||||||
Financial Assets: | Amount | Value | ||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 18,708 | $ | 18,708 | $ | 18,708 | $ | — | $ | — | Financial Assets: | |||||||||||||||||||||||
Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | Cash and short term investments | $ | 16,492 | $ | 16,492 | ||||||||||||||||||||||||
Other investments, at cost | 2,527 | — | — | — | 2,527 | Available-for-sale securities | 201,032 | 201,032 | ||||||||||||||||||||||||||
Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | Other investments, at cost | 5,637 | — | ||||||||||||||||||||||||||
Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | Loans held for sale | 3,725 | 3,725 | ||||||||||||||||||||||||||
Accrued interest | 2,098 | 2,098 | 2,098 | — | — | Net loans receivable | 319,612 | 319,505 | ||||||||||||||||||||||||||
Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | Accrued interest | 1,914 | 1,914 | |||||||||||||||||||||||
Financial liabilities: | Interest rate swap | (602 | ) | (602 | ) | |||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | Financial liabilities: | |||||||||||||||||||||||
NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | Non-interest bearing demand | $ | 83,572 | $ | 83,572 | ||||||||||||||||||||||||
Savings | 41,100 | 41,100 | — | 41,100 | — | NOW and money market accounts | 136,483 | 136,483 | ||||||||||||||||||||||||||
Time deposits | 185,477 | 187,313 | — | 187,313 | — | Savings | 34,048 | 34,048 | ||||||||||||||||||||||||||
Total deposits | 474,977 | 476,813 | — | 476,813 | — | Time deposits | 210,482 | 214,437 | ||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | |||||||||||||||||||||||||||||
Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | Total deposits | 464,585 | 468,540 | ||||||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | Federal Home Loan Bank Advances | 43,862 | 50,238 | ||||||||||||||||||||||||||
Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | Short term borrowings | 13,616 | 13,616 | ||||||||||||||||||||||||||
Junior subordinated debentures | 17,913 | 17,913 | ||||||||||||||||||||||||||||||||
The following tables reflect the changes in fair values for the six and three-month periods ended June 30, 2013 and 2012 and where these changes are included in the income statement: | Accrued interest payable | 1,624 | 1,624 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | The following table reflects the changes in fair values for the years ended December 31, 2012, 2011 and 2010 and where these changes are included in the income statement: | |||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | (Dollars in thousands) | Non-interest | Non-interest | Non-interest | |||||||||||||||||||||||||||
Description | Non-interest | Non-interest | Non-interest | Non-interest | income: | income: | income: | |||||||||||||||||||||||||||
income: | income: | income: | income: | Fair-value | Fair-value | Fair-value | ||||||||||||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | adjustment | adjustment | adjustment | ||||||||||||||||||||||||||||
adjustment | adjustment | adjustment | adjustment | gain (loss) | gain (loss) | gain (loss) | ||||||||||||||||||||||||||||
loss | loss | loss | loss | Interest rate swap | (58 | ) | (166 | ) | (581 | ) | ||||||||||||||||||||||||
Interest rate swap | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | Total | $ | (58 | ) | $ | (166 | ) | $ | (581 | ) | ||||||||||||
Total | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | ||||||||||||||||||||||
The following table summarizes quantitative disclosures about the fair value for each category of assets carried at fair value as of June 30, 2013 and December 31, 2012 that are measured on a recurring basis. There were no liabilities carried at fair value as of June 30, 2013 or December 31, 2012 that are measured on a recurring basis. | The following table summarizes quantitative disclosures about the fair value for each category of assets carried at fair value as of December 31, 2012 and December 31, 2011 that are measured on a recurring basis. There were no liabilities carried at fair value as of December 31, 2012 or December 31, 2011 that are measured on a recurring basis. | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | Description | December 31, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||
Markets for | Observable | Inputs | 2012 | in Active | Other | Unobservable | ||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||
Assets | (Level 2) | Identical | Inputs | (Level 3) | ||||||||||||||||||||||||||||||
(Level 1) | Assets | (Level 2) | ||||||||||||||||||||||||||||||||
Available for sale securities | (Level 1) | |||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,462 | $ | — | $ | 1,462 | $ | — | Available for sale securities | |||||||||||||||||||||||||
Mortgage-backed securities | 122,649 | — | 122,649 | — | Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | |||||||||||||||||||||
Small Business Administration securities | 57,304 | — | 57,304 | — | Mortgage-backed securities | 112,144 | — | 112,144 | — | |||||||||||||||||||||||||
State and local government | 39,922 | — | 39,922 | — | Small Business Administration securities | 54,993 | — | 54,993 | — | |||||||||||||||||||||||||
Corporate and other securities | 2,309 | 830 | 1,062 | 417 | State and local government | 32,373 | — | 32,373 | — | |||||||||||||||||||||||||
223,646 | 830 | 222,399 | 417 | Corporate and other securities | 2,401 | 914 | 1,070 | 417 | ||||||||||||||||||||||||||
Interest rate swap | (172 | ) | — | — | (172 | ) | 203,445 | 914 | 202,114 | 417 | ||||||||||||||||||||||||
Total | $ | 223,474 | $ | 830 | $ | 222,399 | $ | 245 | Interest rate cap/swap | (338 | ) | — | — | (338 | ) | |||||||||||||||||||
(Dollars in thousands) | Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | |||||||||||||||||||||||||
Description | December | Quoted | Significant | Significant | ||||||||||||||||||||||||||||||
31, 2012 | Prices in | Other | Unobservable | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Active | Observable | Inputs | ||||||||||||||||||||||||||||||||
Markets for | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||
Identical | (Level 2) | Description | December 31, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||||
Assets | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||||||
(Level 1) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Available for sale securities | Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | Assets | (Level 2) | ||||||||||||||||||||||||
Mortgage-backed securities | 112,144 | — | 112,144 | — | (Level 1) | |||||||||||||||||||||||||||||
Small Business Administration securities | 54,993 | — | 54,993 | — | Available for sale securities | |||||||||||||||||||||||||||||
State and local government | 32,373 | — | 32,373 | — | Government sponsored enterprises | $ | 34 | $ | — | $ | 34 | $ | — | |||||||||||||||||||||
Corporate and other securities | 2,401 | 914 | 1,070 | 417 | Mortgage backed securities | 141,631 | — | 141,631 | — | |||||||||||||||||||||||||
203,445 | 914 | 202,114 | 417 | Small Business Administration securities | 36,479 | — | 36,479 | — | ||||||||||||||||||||||||||
State and local government | 20,488 | — | 20,488 | — | ||||||||||||||||||||||||||||||
Interest rate swap | (338 | ) | — | — | (338 | ) | Corporate and other securities | 2,400 | 926 | 1,474 | — | |||||||||||||||||||||||
Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | ||||||||||||||||||||||||||
201,032 | 926 | 200,106 | — | |||||||||||||||||||||||||||||||
The following tables reconcile the changes in Level 3 financial instruments for the six and three months ended June 30, 2013, that are measured on a recurring basis. | Interest rate cap/floor | (602 | ) | — | — | (602 | ) | |||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | Total | $ | 200,430 | $ | 926 | $ | 200,106 | $ | (602 | ) | ||||||||||||||||||||||
Stock | ||||||||||||||||||||||||||||||||||
Beginning Balance December 31, 2012 | $ | (338 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | The following tables reconcile the changes in Level 3 financial instruments for the year ended December 31, 2012 and 2011 measured on a recurring basis: | |||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | |||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | (Dollars in thousands) | Interest rate | Corporate Preferred | |||||||||||||||||||||||||||||
Swap | Stock | |||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 168 | — | Beginning Balance December 31, 2011 | $ | (602 | ) | — | |||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Included in earnings | (58 | ) | — | ||||||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Included in other comprehensive income | — | — | ||||||||||||||||||||||||||
Purchases, issuances, and settlements | 322 | 417 | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | ||||||||||||||||||||||||||||||||
Stock | Ending Balance December 31, 2012 | $ | (338 | ) | 417 | |||||||||||||||||||||||||||||
Beginning Balance March 31, 2013 | $ | (254 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | |||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | 2011 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | State and local | Corporate and other | Interest rate | |||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 84 | — | government | securities | Swap | |||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Beginning Balance December 31, 2010 | $ | 625 | $ | 182 | $ | (778 | ) | ||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||
Included in earnings | — | (103 | ) | (166 | ) | |||||||||||||||||||||||||||||
Included in other comprehensive income | — | (79 | ) | — | ||||||||||||||||||||||||||||||
The following tables reconcile the changes in Level 3 financial instruments for the six and three months ended June 30, 2012, that are measured on a recurring basis. | Purchases, issuances, and settlements | (625 | ) | — | 342 | |||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | |||||||||||||||||||||||||||||||||
Cap/Floor/Swap | Ending Balance December 31, 2011 | $ | — | $ | — | $ | (602 | ) | ||||||||||||||||||||||||||
Beginning Balance December 31, 2011 | $ | (602 | ) | |||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
During the fourth quarter of 2011, a state and local government bond with a fair value of $579 thousand was called and removed from the Level 3 category. | ||||||||||||||||||||||||||||||||||
Included in earnings | (37 | ) | ||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of December 31, 2012 and December 31, 2011 that are measured on a non-recurring basis. There were no liabilities carried at fair value and measured on a non-recurring basis at December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 160 | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | Description | December 31, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | 2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||
Cap/Floor/Swap | (Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||
Beginning Balance March 31, 2012 | $ | (553 | ) | Impaired loans: | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | |||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||
Included in earnings | (4 | ) | Mortgage-residential | 357 | — | — | 357 | |||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | — | — | 5,772 | ||||||||||||||||||||||||||||||
Included in other comprehensive income | — | Consumer: | ||||||||||||||||||||||||||||||||
Home equity | — | — | — | — | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 78 | Other | 10 | — | — | 10 | ||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | Total impaired | 6,176 | — | — | 6,176 | ||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | |||||||||||||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of June 30, 2013 and December 31, 2012 that are measured on a non-recurring basis. | Construction | 301 | — | — | 301 | |||||||||||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage-commercial | 3,198 | — | — | 3,198 | |||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | Total other real estate owned | 3,987 | — | — | 3,987 | |||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||||||||||
(Level 1) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 84 | $ | — | $ | — | $ | 84 | ||||||||||||||||||||||||||
Real estate: | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||
Mortgage-residential | 716 | — | — | 716 | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | — | — | 5,759 | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Consumer: | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Home equity | — | — | — | — | (Level 1) | (Level 2) | ||||||||||||||||||||||||||||
Other | 7 | — | — | 7 | Impaired loans: | |||||||||||||||||||||||||||||
Total impaired | 6,566 | — | — | 6,566 | Commercial & Industrial | $ | 44 | $ | — | $ | — | $ | 44 | |||||||||||||||||||||
Other real estate owned: | Real estate: | |||||||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | Mortgage-residential | 622 | — | — | 622 | |||||||||||||||||||||||||
Mortgage-residential | 302 | — | — | 302 | Mortgage-commercial | 8,666 | — | — | 8,666 | |||||||||||||||||||||||||
Mortgage-commercial | 2,221 | — | — | 2,221 | Consumer: | |||||||||||||||||||||||||||||
Total other real estate owned | 2,824 | — | — | 2,824 | Home equity | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 9,390 | $ | — | $ | — | $ | 9,390 | Other | 19 | — | — | 19 | |||||||||||||||||||||
(Dollars in thousands) | Total impaired | 9,351 | — | — | 9,351 | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices | Significant | Significant | Other real estate owned: | — | — | |||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | Construction | 2,156 | — | — | 2,156 | ||||||||||||||||||||||||||
Markets for | Observable | Inputs | Mortgage-residential | 4,278 | — | — | 4,278 | |||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Mortgage-commercial | 917 | — | — | 917 | |||||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||||||||||
(Level 1) | Total other real estate owned | 7,351 | — | — | 7,351 | |||||||||||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | Total | $ | 16,702 | $ | — | $ | — | $ | 16,702 | |||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | — | — | 357 | ||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | — | — | 5,772 | The Company has a large percentage of loans with real estate serving as collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Third party appraisals are generally obtained when a loan is identified as being impaired or at the time it is transferred to OREO. This internal process would consist of evaluating the underlying collateral to independently obtained comparable properties. With respect to less complex or smaller credits, an internal evaluation may be performed. Generally the independent and internal evaluations are updated annually. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. The aggregate amount of impaired loans was $6.2 million and $9.4 million for the year ended December 31, 2012 and year ended December 31, 2011, respectively. | |||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||
Home equity | — | — | — | — | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||||||||||||||
Other | 10 | — | — | 10 | ||||||||||||||||||||||||||||||
Total impaired | 6,176 | — | — | 6,176 | ||||||||||||||||||||||||||||||
Other real estate owned: | (Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant | |||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | December 31, | Observable | Unobservable | |||||||||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | 2012 | Inputs | Inputs | |||||||||||||||||||||||||||
Mortgage-commercial | 3,198 | — | — | 3,198 | Interest Rate Swap | $ | (388 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | |||||||||||||||||||||||
Total other real estate owned | 3,987 | — | — | 3,987 | Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable | n/a | ||||||||||||||||||||||||
Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | transactions | |||||||||||||||||||||||||
OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
The Company has a large percentage of loans with real estate serving as collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Third party appraisals are generally obtained when a loan is identified as being impaired or at the time it is transferred to OREO. This internal process consists of evaluating the underlying collateral to independently obtained comparable properties. With respect to less complex or smaller credits, an internal evaluation may be performed. Generally the independent and internal evaluations are updated annually. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. The aggregate amount of impaired loans was $6.6 million and $6.2 million for the six months ended June 30, 2013 and year ended December 31, 2012, respectively. | Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | ||||||||||||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2013 and December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
June 30, 2013 | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (172 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | |||||||||||||||||||||||||||||
OREO | $ | 2,824 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
Impaired loans | $ | 6,566 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
December 31, | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (338 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | |||||||||||||||||||||||||||||
OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
PROPERTY AND EQUIPMENT | Note 7—PROPERTY AND EQUIPMENT | |||||||
Property and equipment consisted of the following: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||
Land | $ | 5,297 | $ | 5,467 | ||||
Premises | 13,990 | 13,990 | ||||||
Equipment | 7,187 | 6,381 | ||||||
26,474 | 25,838 | |||||||
Accumulated depreciation | 9,216 | 8,355 | ||||||
$ | 17,258 | $ | 17,483 | |||||
Provision for depreciation included in operating expenses for the years ended December 31, 2012, 2011 and 2010 amounted to $862 thousand, $841 thousand, and $882 thousand, respectively. | ||||||||
GOODWILL_CORE_DEPOSIT_INTANGIB
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS | ||||||||
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS | Note 8—GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS | |||||||
Intangible assets (excluding goodwill) consisted of the following: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||
Core deposit premiums, gross carrying amount | $ | 3,438 | $ | 3,438 | ||||
Other intangibles | 646 | 646 | ||||||
4,084 | 4,084 | |||||||
Accumulated amortization | (3,924 | ) | (3,719 | ) | ||||
Net | $ | 160 | $ | 365 | ||||
Amortization of the intangibles amounted to $204 thousand, $517 thousand and $621 thousand the years ended December 31, 2012, 2011 and 2010, respectively. Amortization of the intangibles is scheduled to be as follows: | ||||||||
(Dollars in thousands) | ||||||||
2013 | 160 | |||||||
$ | 160 | |||||||
The acquisition of two financial advisory firms in 2008 resulted in recognition of $646 thousand in an intangible asset related to the customer list. The intangible asset is being amortized on a straight line basis over five years. | ||||||||
As a result of the acquisition of Palmetto South mortgage on July 31, 2011, we have recorded goodwill in the amount of $571 thousand. Beginning in 2012 and each year, thereafter, this goodwill will be tested for impairment. | ||||||||
Bank-owned life insurance provides benefits to various existing officers. The carrying value of all existing policies at December 31, 2012 and 2011 was $10.9 million and $11.0 million, respectively. | ||||||||
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
OTHER REAL ESTATE OWNED | ||||||||
OTHER REAL ESTATE OWNED | Note 9—OTHER REAL ESTATE OWNED | |||||||
The following summarizes the activity in the other real estate owned for the years ended December 31, 2012 and 2011. | ||||||||
December 31, | ||||||||
(In thousands) | 2012 | 2011 | ||||||
Balance—beginning of year | $ | 7,351 | $ | 6,904 | ||||
Additions—foreclosures | 2,770 | 3,889 | ||||||
Writedowns | 317 | 261 | ||||||
Sales | 5,817 | 3,181 | ||||||
Balance, end of year | $ | 3,987 | $ | 7,351 | ||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
DEPOSITS | |||||
DEPOSITS | Note 10—DEPOSITS | ||||
At December 31, 2012, the scheduled maturities of Certificates of Deposits are as follows: | |||||
(Dollars in thousands) | |||||
2013 | $ | 109,239 | |||
2014 | 32,423 | ||||
2015 | 14,793 | ||||
2016 | 16,240 | ||||
2017 | 12,780 | ||||
Thereafter | 2 | ||||
$ | 185,477 | ||||
Interest paid on certificates of deposits of $100 thousand or more totaled $1.2 million, $1.7 million, and $2.1 million in 2012, 2011, and 2010, respectively. | |||||
Deposits from directors and executive officers and their related interests at December 31, 2012 and 2011 amounted to approximately $4.8 million and $4.4 million, respectively. | |||||
The amount of overdrafts classified as loans at December 31, 2012 and 2011 were $142 thousand and $119 thousand, respectively. | |||||
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY | 12 Months Ended |
Dec. 31, 2012 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY | Note 11—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY |
Securities sold under agreements to repurchase generally mature within one to four days from the transaction date. The weighted average interest rate at December 31, 2012 and 2011 was 0.21% and 0.25%, respectively. The maximum month-end balance during 2012 and 2011 was $17.3 million and $18.1 million, respectively. The average outstanding balance during the years ended December 31, 2012 and 2011 amounted to $15.5 million and $15.9 million, respectively, with an average rate paid of 0.23% and 0.25%, respectively. Securities sold under agreements to repurchase are collateralized by securities with a fair market value of 100% of the agreement. | |
At December 31, 2012 and 2011, the Company had unused short-term lines of credit totaling $20.0 million. | |
ADVANCES_FROM_FEDERAL_HOME_LOA
ADVANCES FROM FEDERAL HOME LOAN BANK | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
ADVANCES FROM FEDERAL HOME LOAN BANK | ||||||||||||||
ADVANCES FROM FEDERAL HOME LOAN BANK | Note 12—ADVANCES FROM FEDERAL HOME LOAN BANK | |||||||||||||
Advances from the FHLB at December 31, 2012 and 2011, consisted of the following: | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2011 | |||||||||||||
(In thousands) | Amount | Rate | Amount | Rate | ||||||||||
Maturing | ||||||||||||||
2012 | — | — | 1,000 | 0.36 | % | |||||||||
2013 | — | — | 4,000 | 3.58 | % | |||||||||
2015 | 4,000 | 4.22 | % | 6,500 | 4.09 | % | ||||||||
After five years | 32,344 | 4.13 | % | 32,362 | 4.13 | % | ||||||||
$ | 36,344 | 4.14 | % | $ | 43,862 | 3.99 | % | |||||||
As collateral for its advances, the Company has pledged in the form of blanket liens, eligible loans, in the amount of $43.8 million at December 31, 2012. In addition, securities with a fair value of approximately $3.8 million have been pledged as collateral for advances as of December 31, 2012. As collateral for its advances, the Company has pledged in the form of blanket liens, eligible loans, in the amount of $58.1 million at December 31, 2011. In addition, securities with a fair value of approximately $15.9 million have been pledged as collateral for advances as of December 31, 2011. Advances are subject to prepayment penalties. The average advances during 2012 and 2011 were $38.8 million and $56.0 million, respectively. The average interest rate for 2012 and 2011 was 4.15% and 3.84%, respectively. The maximum outstanding amount at any month end was $42.9 million and $64.8 million for 2012 and 2011. | ||||||||||||||
During the years ended December 31, 2012 and December 31, 2011, the Company prepaid advances in the amount of $9.1 million and $14.0 million, respectively, and realized losses on the early extinguishment of $217 thousand and $188 thousand, respectively. The Company did not prepay any advances for the year ended December 31, 2010. | ||||||||||||||
JUNIOR_SUBORDINATED_DEBT
JUNIOR SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2012 | |
JUNIOR SUBORDINATED DEBT | |
JUNIOR SUBORDINATED DEBT | Note 13—JUNIOR SUBORDINATED DEBT |
On September 16, 2004, FCC Capital Trust I ("Trust I"), a wholly owned unconsolidated subsidiary of the Company, issued and sold floating rate securities having an aggregate liquidation amount of $15.0 million. The Trust I securities accrue and pay distributions quarterly at a rate per annum equal to LIBOR plus 257 basis points. The distributions are cumulative and payable in arrears. The Company has the right, subject to events of default, to defer payments of interest on the Trust I securities for a period not to exceed 20 consecutive quarters, provided no extension can extend beyond the maturity date of September 16, 2034. The Trust I securities are mandatorily redeemable upon maturity at September 16, 2034. If the Trust I securities are redeemed on or after September 16, 2009, the redemption price will be 100% of the principal amount plus accrued and unpaid interest. The Trust I security were eligible to be redeemed in whole but not in part, at any time prior to September 16, 2009 following an occurrence of a tax event, a capital treatment event or an investment company event. Currently, these securities qualify under risk-based capital guidelines as Tier 1 capital, subject to certain limitations. The Company has no current intention to exercise its right to defer payments of interest on the Trust I securities. | |
On December 16, 2011, the Company sold 2,500 Units (the "Units"), with each Unit consisting of an 8.75% Subordinated Note, due in 2019, $1,000 principal amount (collectively, the "Notes"), and a Warrant to purchase 43 shares of common stock of the Company at an exercise price equal to $5.90 per share (collectively, the "Warrants"), to certain accredited investors, including directors and executive officers of the Company, for an aggregate purchase price of $2.5 million. Interest on the Notes is payable quarterly on February 15, May 15, August 15 and November 15 of each year, commencing on February 15, 2012, at a rate of 8.75% per annum. Proceeds were retained by the Company and available to pay dividends on the Company's common and preferred stock, interest on the Notes and dividends on the Company's trust preferred securities, and for general corporate and banking purposes. On November 15, 2012, the Company redeemed the $2.5 million of Notes at par plus accrued but unpaid interest to the redemption date. The Warrants to purchase 107,500 shares are immediately exercisable and will automatically expire on December 16, 2019. The number of shares of common stock of the Company for which, and the price per share at which, a Warrant is exercisable are subject to adjustment upon the occurrence of certain events, including, without limitation, a stock split, stock dividend or a merger, as provided in the Warrant. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
INCOME TAXES | |||||||||||
INCOME TAXES | Note 14—INCOME TAXES | ||||||||||
Income tax expense (benefit) for the years ended December 31, 2012, 2011and 2010 consists of the following: | |||||||||||
Year ended December 31 | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | 136 | |||||
State | 284 | 142 | 102 | ||||||||
284 | 142 | 238 | |||||||||
Deferred | |||||||||||
Federal | 1,336 | 1,315 | 327 | ||||||||
State | — | — | — | ||||||||
1,336 | 1,315 | 327 | |||||||||
Income tax expense (benefit) | $ | 1,620 | $ | 1,457 | $ | 565 | |||||
Reconciliation from expected federal tax expense to effective income tax expense (benefit) for the periods indicated are as follows: | |||||||||||
Year ended December 31 | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Expected federal income tax expense | $ | 1,900 | $ | 1,625 | $ | 822 | |||||
State income tax net of federal benefit | 187 | 112 | 67 | ||||||||
Tax exempt interest | (182 | ) | (29 | ) | (52 | ) | |||||
Increase in cash surrender value life insurance | (130 | ) | (59 | ) | (131 | ) | |||||
Valuation allowance | — | 35 | 97 | ||||||||
Other | (155 | ) | (227 | ) | (238 | ) | |||||
$ | 1,620 | $ | 1,457 | $ | 565 | ||||||
The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities: | |||||||||||
December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | |||||||||
Assets: | |||||||||||
Allowance for loan losses | $ | 1,609 | $ | 1,598 | |||||||
Excess tax basis of deductible intangible assets | 121 | 121 | |||||||||
Net operating loss carry forward | 1,699 | 3,277 | |||||||||
Unrealized loss on available-for-sale securities | — | — | |||||||||
Compensation expense deferred for tax purposes | 767 | 736 | |||||||||
Fair value adjustment on interest rate swap agreement | 115 | 205 | |||||||||
Deferred loss on other-than-temporary-impairment charges | 257 | 471 | |||||||||
Interest on nonaccrual loans | 99 | 109 | |||||||||
Tax credit carry-forwards | 829 | 410 | |||||||||
Excess discount accretion on securities for tax purposes | — | 360 | |||||||||
Other | 401 | 232 | |||||||||
Total deferred tax asset | 5,897 | 7,519 | |||||||||
Valuation reserve | 132 | 132 | |||||||||
Total deferred tax asset net of valuation reserve | 5,765 | 7,387 | |||||||||
Liabilities: | |||||||||||
Tax depreciation in excess of book depreciation | 118 | 126 | |||||||||
Excess tax basis of non-deductible intangible assets | 11 | 42 | |||||||||
Excess financial reporting basis of assets acquired | 956 | 1,014 | |||||||||
Unrealized gain on available-for-sale securities | 1,266 | 705 | |||||||||
Other | — | 22 | |||||||||
Total deferred tax liabilities | 2,351 | 1,909 | |||||||||
Net deferred tax asset recognized | $ | 3,414 | $ | 5,478 | |||||||
At December 31, 2012 there is a $132 thousand valuation allowance that relates to deferred tax benefits for contribution carry forwards and capital loss carry forwards. At December 31, 2012, the Company has net operating loss carry forwards for federal income tax purposes of approximately $5.0 million available to offset future taxable income through 2031. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Additional amounts of these deferred tax assets considered to be realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. During 2010, the Company recognized OTTI charges on certain investment securities in the amount of $13.5 million, which resulted in recognition of a $4.6 million deferred tax asset at December 31, 2010. These losses were not deductible until the securities were either sold or deemed worthless. During 2011 and 2012, a significant portion of those investments that created the deferred tax asset were sold and as a result created an $8.0 million taxable loss. The remaining $5.0 million tax net operating loss can be carried forward until the year ended 2031. The net deferred asset is included in other assets on the consolidated balance sheets. | |||||||||||
A portion of the change in the net deferred tax asset relates to unrealized gains and losses on securities available-for-sale. The change in the tax expense related to the change in unrealized losses on these securities of $564 thousand has been recorded directly to shareholders' equity. The balance in the change in net deferred tax asset results from the current period deferred tax expense of $1.3 million. | |||||||||||
Tax returns for 2010 and subsequent years are subject to examination by taxing authorities. | |||||||||||
COMMITMENTS_CONCENTRATIONS_OF_
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES | 12 Months Ended | ||||||||||||||
Dec. 31, 2012 | |||||||||||||||
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES | |||||||||||||||
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES | Note 15—COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES | ||||||||||||||
The Bank is 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. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. | |||||||||||||||
The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments as for on-balance sheet instruments. At December 31, 2012 and 2011, the Bank had commitments to extend credit including lines of credit of $53.3 million and $40.3 million respectively. | |||||||||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. Since commitments may expire without being drawn upon, the total commitments do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation of the party. Collateral held varies but may include inventory, property and equipment, residential real estate and income producing commercial properties. | |||||||||||||||
The primary market area served by the Bank is Lexington, Richland, Newberry and Kershaw Counties within the Midlands of South Carolina. Management closely monitors its credit concentrations and attempts to diversify the portfolio within its primary market area. The Company considers concentrations of credit risk to exist when pursuant to regulatory guidelines, the amounts loaned to multiple borrowers engaged in similar business activities represent 25% or more of the Bank's risk based capital, or approximately $15.4 million. Based on this criteria, the Bank had four such concentrations at December 31, 2012, including $82.0 million (24.7% of total loans) to private households, $45.8 million (13.8% of total loans) to lessors of residential properties, $62.1 million (18.7% of total loans) to lessors of non-residential properties and $26.8 million (8.1% of total loans) to religious organizations. As reflected above, private households make up 24.7% of total loans and equate to approximately 133.1% of total regulatory capital. The risk in this portfolio is diversified over a large number of loans (approximately 2,065). Commercial real estate loans and commercial construction loans represent $237.6 million, or 72.1%, of the portfolio. Approximately $76.0 million, or 31.7%, of the total commercial real estate loans are owner occupied, which can tend to reduce the risk associated with these credits. Although the Bank's loan portfolio, as well as existing commitments, reflects the diversity of its primary market area, a substantial portion of its debtor's ability to honor their contracts is dependent upon the economic stability of the area. | |||||||||||||||
The nature of the business of the company and bank may at times result in a certain amount of litigation. The bank is involved in certain litigation that is considered incidental to the normal conduct of business. Management believes that the liabilities, if any, resulting from the proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows of the company. | |||||||||||||||
At December 31, 2012, the Bank has entered into the following interest rate swap agreement: | |||||||||||||||
(Dollars in thousands) | Description | Cap/Swap | Contract | Expiration | Fair Value | ||||||||||
Notional Amount | Rate | Date | Date | 12/31/12 | |||||||||||
$10,000 | Interest Rate Swap | 3.66% fixed | 10/8/08 | 10/8/13 | $ | (338 | ) | ||||||||
The Bank entered into a five year interest rate swap agreement on October 8, 2008. The swap agreement has a $10.0 million notional amount. The Bank will receive a variable rate of interest on the notional amount based on a three month LIBOR rate and pay a fixed rate interest of 3.66%. The contract was entered into to protect us from the negative impact of rising interest rates. The Bank's exposure to credit risk is limited to the ability of the counterparty to make potential future payments required pursuant to the agreement. The Bank's exposure to market risk of loss is limited to the changes in the market value of the swap between reporting periods. The fair value of the contract was ($338) thousand and ($602) thousand as of December 31, 2012 and December 31, 2011 respectively. The change in fair value of the contract recognized in earnings during 2012, 2011, and 2010 was $58 thousand, $166 thousand and $581 thousand, respectively. The fair value of the contract is calculated based on the present value, over the remaining term of the contract, of the difference between the five year swap rate multiplied by the notional amount at the reporting date and the fixed interest rate of 3.66% multiplied by the notional amount of the contract. | |||||||||||||||
OTHER_EXPENSES
OTHER EXPENSES | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
OTHER EXPENSES | |||||||||||
OTHER EXPENSES | Note 16—OTHER EXPENSES | ||||||||||
A summary of the components of other non-interest expense is as follows: | |||||||||||
Year ended December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Data processing | $ | 479 | $ | 472 | $ | 414 | |||||
Supplies | 138 | 178 | 150 | ||||||||
Telephone | 297 | 307 | 302 | ||||||||
Courier | 72 | 66 | 63 | ||||||||
Correspondent services | 168 | 193 | 97 | ||||||||
Insurance | 209 | 213 | 220 | ||||||||
Postage | 172 | 174 | 181 | ||||||||
Loss on limited partnership interest | 194 | 119 | 119 | ||||||||
Director fees | 312 | 319 | 264 | ||||||||
Professional fees | 745 | 1,040 | 1,068 | ||||||||
Other | 692 | 666 | 624 | ||||||||
$ | 3,478 | $ | 3,747 | $ | 3,502 | ||||||
STOCK_OPTIONS_AND_RESTRICTED_S
STOCK OPTIONS AND RESTRICTED STOCK | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
STOCK OPTIONS AND RESTRICTED STOCK | ||||||||||||||
STOCK OPTIONS AND RESTRICTED STOCK | Note 17—STOCK OPTIONS AND RESTRICTED STOCK | |||||||||||||
The Company has adopted a stock option plan whereby shares have been reserved for issuance by the Company upon the grant of stock options or restricted stock awards. At December 31, 2012 and 2011, the Company had 307,779 and 340,640 shares, respectively, reserved for future grants. The 350,000 shares reserved were approved by shareholders at the 2011 annual meeting. The plan provides for the grant of options to key employees and directors as determined by a stock option committee made up of at least two members of the board of directors. Options are exercisable for a period of ten years from date of grant. | ||||||||||||||
Stock option transactions for the years ended December 31, 2012, 2011 and 2010 are summarized as follows: | ||||||||||||||
Shares | Weighted | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic Value | ||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||
Contractual | ||||||||||||||
Term (Years) | ||||||||||||||
Outstanding December 31, 2010 | 188,441 | 13.28 | 1.7 | $ | — | |||||||||
Forfeited | (113,419 | ) | 9.3 | |||||||||||
Outstanding December 31, 2011 | 75,022 | 19.69 | 3.03 | $ | — | |||||||||
Forfeited | — | — | ||||||||||||
Outstanding, December 31, 2012 | 75,022 | 19.69 | 2.03 | $ | — | |||||||||
Stock options outstanding and exercisable as of December 31, 2012 are as follows: | ||||||||||||||
Range of Exercise Prices | Number of Option | Weighted Average | Weighted | |||||||||||
Low/High | Shares | Remaining | Average Exercise | |||||||||||
Outstanding | Contractual | Price | ||||||||||||
and Exercisable | Life (Years) | |||||||||||||
$12.35 | 1,619 | 0.95 | $ | 12.35 | ||||||||||
$14.21 / $16.70 | 9,903 | 2.26 | 14.46 | |||||||||||
$19.00 / $22.50 | 63,500 | 2.02 | 20.22 | |||||||||||
75,022 | 2.03 | $ | 19.29 | |||||||||||
In 2012, each non-employee director received 604 common shares of restricted stock in connection with their overall compensation plan. A total of 7,852 shares were issued to these directors at a value of $8.27 per share. All of these shares vested on January 1, 2013. | ||||||||||||||
In 2012, 25,009 restricted shares were issued to executive officers in connection with the Bank's incentive compensation plan. The shares were valued at $8.27 per share and cliff vest on May 15, 2015. The assumption used in the calculation of these amounts for the awards granted in 2012 is based on the price of the Company's common stock on the grant date. | ||||||||||||||
Warrants to purchase 107,500 shares at $5.90 per share were issued in connection with the issuing of subordinated debt on November 15, 2011. (See Note 13-Junior Subordinated Debt) | ||||||||||||||
EMPLOYEE_BENEFIT_PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2012 | |
EMPLOYEE BENEFIT PLAN | |
EMPLOYEE BENEFIT PLAN | Note 18—EMPLOYEE BENEFIT PLAN |
The Company maintains a 401(k) plan, which covers substantially all employees. Participants may contribute up to the maximum allowed by the regulations. During the years ended December 31, 2012, 2011 and 2010, the plan expense amounted to $276 thousand, $254 thousand and $233 thousand, respectively. Prior to July 1, 2007, the Company matched 50% of an employee's contribution up to a 6.00% participant contribution. Beginning July 1, 2007, the Company began matching 100% of the employee's contribution up to 3% and 50% of the employee's contribution on the next 2% of the employee's contribution. | |
The Company acquired various single premium life insurance policies from DutchFork that are used to indirectly fund fringe benefits to certain employees and officers. A salary continuation plan was established payable to two key individuals upon attainment of age 63. The plan provides for monthly benefits of $2,500 each for seventeen years. Other plans acquired were supplemental life insurance covering certain key employees. No expense is accrued relative to these benefits, as the life insurance covers the anticipated payout with the Company receiving the remainder, thereby recovering its investment in the policies. In 2006, the Company established a salary continuation plan which covers six additional key officers. The plan provides for monthly benefits upon normal retirement age of varying amounts for a period of fifteen years. Additional single premium life insurance policies were purchased in 2006 in the amount of $3.5 million designed to offset the funding of these additional fringe benefits. The cash surrender value at December 31, 2012 and 2011 of all bank owned life insurance was $10.9 million and $11.0 million, respectively. Expenses accrued for the anticipated benefits under the salary continuation plans for the year ended December 31, 2012, 2011 and 2010 amounted to $261 thousand, $161 thousand, and $275 thousand, respectively. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||
Earnings Per Common Share | |||||||||||||||||||||||||
EARNINGS PER SHARE | Note 2 — Earnings Per Common Share | Note 19—EARNINGS PER SHARE | |||||||||||||||||||||||
The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: | The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: | ||||||||||||||||||||||||
Six months | Three months | ||||||||||||||||||||||||
Ended June 30, | Ended June 30, | Year ended December 31, | |||||||||||||||||||||||
(In thousands, except price per share) | 2013 | 2012 | 2013 | 2012 | (Amounts in thousands) | 2012 | 2011 | 2010 | |||||||||||||||||
Numerator (Net income available to common shareholders) | $ | 2,241 | $ | 1,390 | $ | 1,203 | $ | 760 | Numerator (Included in basic and diluted earnings per share) | $ | 3,292 | $ | 2,654 | $ | 1,190 | ||||||||||
Denominator | |||||||||||||||||||||||||
Weighted average common shares outstanding for: | Denominator | ||||||||||||||||||||||||
Basic earnings per share | 5,274 | 3,319 | 5,292 | 3,329 | Weighted average common shares outstanding for: | ||||||||||||||||||||
Dilutive securities: | Basic earnings common per share | 4,144 | 3,287 | 3,262 | |||||||||||||||||||||
Warrants — Treasury stock method | 38 | 24 | 37 | 28 | Dilutive securities: | ||||||||||||||||||||
Diluted earnings per share | 5,312 | 3,343 | 5,329 | 3,357 | Warrants—Treasury stock method | 28 | — | — | |||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 9.15 | $ | 7.63 | $ | 9.05 | $ | 7.99 | |||||||||||||||||
Diluted common share outstanding | 4,172 | 3,287 | 3,262 | ||||||||||||||||||||||
At June 30, 2013, there were 73,022 outstanding options at an average exercise price of $20.23. None of these options has an exercise price below the average market price of $9.05 for the three-month period ended June 30, 2013 or $9.15 for the six-month period ended June 30, 2013, and, therefore they are not deemed to be dilutive. In the fourth quarter of 2011, we issued $2.5 million in 8.75% subordinated notes maturing on December 16, 2019. On November 15, 2012, the subordinated notes were redeemed in full at par. Warrants for 107,500 shares of common stock at $5.90 per share were issued in connection with the issuance of the subordinated debt. These warrants expire December 16, 2019 and are included in dilutive securities in the table above. | |||||||||||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 7.98 | $ | 6.34 | $ | 5.78 | |||||||||||||||||||
For the years ended December 31, 2012, 2011 and 2010, options are not dilutive in calculating diluted earnings per share. In 2010, 2011, and 2012 the exercise price on all outstanding options exceeded the average market price for the year. | |||||||||||||||||||||||||
On December 16, 2011 there were 107,500 warrants issued in connection with the issuance $2.5 million in subordinated debt. (See Note 13) These warrants were not dilutive to earnings per share for the period ended December 31, 2011. As shown above, the warrants were dilutive for the period ended December 31, 2012. | |||||||||||||||||||||||||
SHAREHOLDERS_EQUITY_CAPITAL_RE
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS | ||||||||||||||||||||
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS | Note 20—SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS | |||||||||||||||||||
The Company and Bank are subject to various federal and state regulatory requirements, including regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and Bank capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors. The Company and Bank are required to maintain minimum Tier 1 capital, total risked based capital and Tier 1 leverage ratios of 4%, 8% and 4%, respectively. | ||||||||||||||||||||
On April 6, 2010, the Bank entered into the Formal Agreement with the OCC, the Bank's then primary federal regulator (the "Formal Agreement"). The Formal Agreement was based on the findings of the OCC during a 2009 on-site examination of the Bank. As reflected in the Formal Agreement, the OCC's primary concern with the Bank is driven by the rating agencies downgrades of non-agency MBS in its investment portfolio. The Formal Agreement did not require any adjustment to the Bank's balance sheet or income statement; nor did it change the Bank's "well capitalized" status. The OCC did, however, separately establish the following individual minimum capital ratios for the Bank: a Tier 1 leverage capital ratio of at least 8.00%, a Tier 1 risk-based capital ratio of at least 10.00%, and a Total risk-based capital ratio of at least 12.00%. | ||||||||||||||||||||
Following a recent on-site examination of the Bank, the OCC notified the Bank that, effective June 28, 2012, the Bank is no longer subject to the Formal Agreement. As of December 31, 2012, the Bank had reduced the non-agency MBSs in its investment portfolio that are rated below investment grade to $1.3 million. | ||||||||||||||||||||
The OCC also notified the Bank that, effective June 28, 2012, it was no longer subject to the Individual Minimum Capital Ratios established for the Bank on February 24, 2010. In addition, the Federal Reserve notified the Company that, effective July 10, 2012, the Company is no longer subject to the MOU. | ||||||||||||||||||||
On July 27, 2012, the Company closed a public offering of common stock. The offering resulted in the issuance of a total of 1.875 million shares of common stock at $8.00 per share, resulting in gross proceeds of $15 million, as compared to our original target of $12.5 million, and net proceeds of approximately $13.8 million. | ||||||||||||||||||||
On August 29, 2012, we repurchased $3.78 million of our Series T Preferred Stock from the U.S. Treasury through a modified Dutch auction process. This represented 3,780 shares of the original 11,350 shares of preferred stock sold to the U.S. Treasury in November 2008 pursuant to the TARP Capital Purchase Program. The remaining 7,570 shares of Series T Preferred Stock were purchased in this same auction by third party investors unrelated to the Company. The auction price was $982.83 per share. As of October 8, 2012, we have repurchased or redeemed the remaining shares of Series T Preferred Stock from the third party investors. The financial results reported for the year ended December 31, 2012 include non-recurring expenses related to this matter in the amount of $119 thousand including attorney costs, accounting costs, and U.S. Treasury underwriter costs. In addition, we recorded a charge for the remaining discount accretion of approximately $159 thousand. | ||||||||||||||||||||
On October 1, 2012, we completed a planned conversion from a national bank charter to a state bank charter as a non-member bank. The conversion is expected reduce certain regulatory examination costs in the future. | ||||||||||||||||||||
On October 25, 2012, the U.S. Treasury accepted our bid to repurchase the warrant to purchase 195,915 shares of our common stock issued to the U.S. Treasury pursuant to the TARP Capital Purchase Program. The repurchase price agreed upon was $297,500. The repurchase transaction was completed on November 1, 2012. The repurchase of the warrant from the U.S. Treasury has completely eliminated the Treasury's equity stake in the Company through the TARP Capital Purchase Program. | ||||||||||||||||||||
On November 15, 2012, we redeemed the $2.5 million of outstanding subordinated debt at par which was issued in November 2011. | ||||||||||||||||||||
The actual capital amounts and ratios as well as minimum amounts for each regulatory defined category for the Bank and the Company are as follows: | ||||||||||||||||||||
Required to be | ||||||||||||||||||||
Categorized | ||||||||||||||||||||
Actual | Adequately | |||||||||||||||||||
Capitalized | Required to be | |||||||||||||||||||
Categorized | ||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Well Capitalized | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
First Community Corporation | ||||||||||||||||||||
Tier 1 Capital | $ | 63,381 | 17.33 | % | $ | 14,628 | 4 | % | N/A | N/A | ||||||||||
Total Risked Based Capital | 67,963 | 18.58 | % | 29,258 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage | 63,381 | 10.63 | % | 23,846 | 4 | % | N/A | N/A | ||||||||||||
First Community Bank | ||||||||||||||||||||
Tier 1 Capital | $ | 61,588 | 16.87 | % | $ | 14,605 | 4 | % | $ | 21,907 | 6 | % | ||||||||
Total Risked Based Capital | 66,158 | 18.12 | % | 29,209 | 8 | % | 36,512 | 10 | % | |||||||||||
Tier 1 Leverage | 61,588 | 10.34 | % | 23,824 | 4 | % | 29,779 | 5 | % | |||||||||||
December 31, 2011 | ||||||||||||||||||||
First Community Corporation | ||||||||||||||||||||
Tier 1 Capital | $ | 56,207 | 15.33 | % | $ | 14,668 | 4 | % | N/A | N/A | ||||||||||
Total Risked Based Capital | 63,256 | 17.25 | % | 29,335 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage | 56,207 | 9.4 | % | 23,909 | 4 | % | N/A | N/A | ||||||||||||
First Community Bank | ||||||||||||||||||||
Tier 1 Capital | $ | 55,377 | 15.12 | % | $ | 14,647 | 4 | % | $ | 21,971 | 6 | % | ||||||||
Total Risked Based Capital | 59,971 | 16.38 | % | 29,294 | 8 | % | 36,616 | 10 | % | |||||||||||
Tier 1 Leverage | 55,377 | 9.27 | % | 23,898 | 4 | % | 29,873 | 5 | % | |||||||||||
The Federal Reserve Board has issued a policy statement regarding the payment of dividends by bank holding companies. In general, the Federal Reserve Board's policies provide that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the bank holding company appears consistent with the organization's capital needs, asset quality and overall financial condition. The Federal Reserve Board's policies also require that a bank holding company serve as a source of financial strength to its subsidiary banks by standing ready to use available resources to provide adequate capital funds to those banks during periods of financial stress or adversity and by maintaining the financial flexibility and capital-raising capacity to obtain additional resources for assisting its subsidiary banks where necessary. In addition, under the prompt corrective action regulations, the ability of a bank holding company to pay dividends may be restricted if a subsidiary bank becomes undercapitalized. These regulatory policies could affect the ability of the Company to pay dividends or otherwise engage in capital distributions. | ||||||||||||||||||||
The Company's principal source of cash flow, including cash flow to pay dividends to its shareholders, is dividends it receives from the Bank. Statutory and regulatory limitations apply to the Bank's payment of dividends to the Company. As a South Carolina chartered bank, the Bank is subject to limitations on the amount of dividends that it is permitted to pay. Unless otherwise instructed by the S.C. Board, the Bank is generally permitted under South Carolina state banking regulations to pay cash dividends of up to 100% of net income in any calendar year without obtaining the prior approval of the S.C. Board. The FDIC also has the authority under federal law to enjoin a bank from engaging in what in its opinion constitutes an unsafe or unsound practice in conducting its business, including the payment of a dividend under certain circumstances. | ||||||||||||||||||||
If our Bank is not permitted to pay cash dividends to the Company, it is unlikely that we would be able to pay cash dividends on our common stock. Moreover, holders of our common stock are entitled to receive dividends only when, and if declared by our board of directors. Although we have historically paid cash dividends on our common stock, we are not required to do so and our board of directors could reduce or eliminate our common stock dividend in the future. | ||||||||||||||||||||
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
PARENT COMPANY FINANCIAL INFORMATION | |||||||||||
PARENT COMPANY FINANCIAL INFORMATION | Note 21—PARENT COMPANY FINANCIAL INFORMATION | ||||||||||
The balance sheets, statements of operations and cash flows for First Community Corporation (Parent Only) follow: | |||||||||||
Condensed Balance Sheets | |||||||||||
At December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | |||||||||
Assets: | |||||||||||
Cash on deposit | $ | 1,417 | $ | 3,547 | |||||||
Securities purchased under agreement to resell | 128 | 128 | |||||||||
Investment securities available-for-sale | 429 | 12 | |||||||||
Investment in bank subsidiary | 67,055 | 61,713 | |||||||||
Other | 767 | 608 | |||||||||
Total assets | $ | 69,796 | $ | 66,008 | |||||||
Liabilities: | |||||||||||
Subordinated notes payable | $ | — | $ | 2,449 | |||||||
Junior subordinated debentures | 15,464 | 15,464 | |||||||||
Other | 149 | 199 | |||||||||
Total liabilities | 15,613 | 18,112 | |||||||||
Shareholders' equity | 54,183 | 47,896 | |||||||||
Total liabilities and shareholders' equity | $ | 69,796 | $ | 66,008 | |||||||
Condensed Statements of Operations | |||||||||||
Year ended December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Income: | |||||||||||
Interest and dividend income | $ | 1 | $ | 9 | $ | 52 | |||||
Equity in undistributed earnings of subsidiary | 4,313 | 3,782 | 2,270 | ||||||||
Dividend income from bank subsidiary | 320 | — | — | ||||||||
Total income | 4,634 | 3,791 | 2,322 | ||||||||
Expenses: | |||||||||||
Interest expense | 658 | 446 | 443 | ||||||||
Other | 301 | 239 | 177 | ||||||||
Total expense | 959 | 685 | 620 | ||||||||
Income before taxes | 3,675 | 3,106 | 1,702 | ||||||||
Income tax benefit | (293 | ) | (218 | ) | (152 | ) | |||||
Net income | $ | 3,968 | $ | 3,324 | $ | 1,854 | |||||
Condensed Statements of Cash Flows | |||||||||||
Year ended December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 3,968 | $ | 3,324 | $ | 1,854 | |||||
Adjustments to reconcile net income to net cash used by operating activities | |||||||||||
Equity in undistributed earnings of subsidiary | (4,313 | ) | (3,782 | ) | (2,270 | ) | |||||
Other-net | (90 | ) | 232 | 72 | |||||||
Net cash used by operating activities | (435 | ) | (226 | ) | (344 | ) | |||||
Cash flows from investing activities: | |||||||||||
Purchase of available-for sale-securities | (417 | ) | — | — | |||||||
Maturity of available-for-sale securities | — | 1,250 | — | ||||||||
Other-net | — | (76 | ) | (52 | ) | ||||||
Net cash provided (used) by investing activities | (417 | ) | 1,174 | (52 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of subordinated note payable | — | 2,500 | — | ||||||||
Repayment of subordinated note payable | (2,500 | ) | — | — | |||||||
Dividends paid: Common stock | (605 | ) | (525 | ) | (522 | ) | |||||
Preferred stock | (475 | ) | (670 | ) | (664 | ) | |||||
Proceeds from issuance of common stock | 13,885 | 182 | 101 | ||||||||
Redemption of preferred stock | (11,073 | ) | — | — | |||||||
Redemption of stock warrants | (510 | ) | — | — | |||||||
Net cash provided (used) in financing activities | (1,278 | ) | 1,487 | (1,085 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (2,130 | ) | 2,435 | (1,481 | ) | ||||||
Cash and cash equivalents, beginning of year | 3,547 | 1,112 | 2,593 | ||||||||
Cash and cash equivalents, end of year | $ | 1,417 | $ | 3,547 | $ | 1,112 | |||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2012 | |
Subsequent Events | ||
SUBSEQUENT EVENTS | Note 7 — Subsequent Events | Note 22—SUBSEQUENT EVENTS |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events other than disclosed above occurred requiring accrual or disclosure. | Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure. | |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | Note 23—QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||
The following provides quarterly financial data for 2012 and 2011 (dollars in thousands, except per share amounts). | ||||||||||||||
2012 | Fourth | Third | Second | First | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Interest income | $ | 5,468 | $ | 5,650 | $ | 5,840 | $ | 6,044 | ||||||
Net interest income | 4,285 | 4,329 | 4,451 | 4,509 | ||||||||||
Provision for loan losses | 80 | 115 | 71 | 230 | ||||||||||
Gain (loss) on sale of securities | 88 | (35 | ) | (38 | ) | 11 | ||||||||
Other-than-temporary-impairment | — | — | — | (200 | ) | |||||||||
Income before income taxes | 1,338 | 1,793 | 1,327 | 1,130 | ||||||||||
Net income | 1,021 | 1,220 | 928 | 799 | ||||||||||
Preferred stock dividends | — | 339 | 168 | 169 | ||||||||||
Net income available to common shareholders | $ | 1,021 | $ | 881 | $ | 760 | $ | 630 | ||||||
Net income per share, basic | $ | 0.2 | $ | 0.19 | $ | 0.23 | $ | 0.19 | ||||||
Net income per share, diluted | $ | 0.19 | $ | 0.19 | $ | 0.23 | $ | 0.19 | ||||||
2011 | Fourth | Third | Second | First | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Interest income | $ | 6,238 | $ | 6,382 | $ | 6,466 | $ | 6,440 | ||||||
Net interest income | 4,616 | 4,628 | 4,619 | 4,454 | ||||||||||
Provision for loan losses | 310 | 360 | 390 | 360 | ||||||||||
Gain on sale of securities | 301 | 133 | 7 | 134 | ||||||||||
Other-than-temporary-impairment | (243 | ) | (50 | ) | — | (4 | ) | |||||||
Income before income taxes | 1,565 | 1,398 | 1,020 | 798 | ||||||||||
Net income | 1,071 | 957 | 726 | 570 | ||||||||||
Preferred stock dividends | 168 | 167 | 168 | 167 | ||||||||||
Net income available to common shareholders | $ | 903 | $ | 790 | $ | 558 | $ | 403 | ||||||
Net income per share, basic | $ | 0.27 | $ | 0.24 | $ | 0.17 | $ | 0.12 | ||||||
Net income per share, diluted | $ | 0.27 | $ | 0.24 | $ | 0.17 | $ | 0.12 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2012 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates | Use of Estimates |
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. These principles require 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 that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. The estimation process includes management's judgment as to future losses on existing loans based on an internal review of the loan portfolio, including an analysis of the borrower's current financial position, the consideration of current and anticipated economic conditions and the effect on specific borrowers. In determining the collectability of loans management also considers the fair value of underlying collateral. Various regulatory agencies, as an integral part of their examination process, review the Company's allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors it is possible that the allowance for loan losses could change materially. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents consist of cash on hand, due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell. Generally federal funds are sold for a one-day period and securities purchased under agreements to resell mature in less than 90 days. | |
Investment Securities | Investment Securities |
Investment securities are classified as either held-to-maturity, available-for-sale or trading securities. In determining such classification, securities that the Company has the positive intent and ability to hold to maturity are classified as held-to maturity and are carried at amortized cost. Securities classified as available-for-sale are carried at estimated fair values with unrealized gains and losses included in shareholders' equity on an after tax basis. Trading securities are carried at estimated fair value with unrealized gains and losses included in Non-interest income (See Note 4). | |
Gains and losses on the sale of available-for-sale securities and trading securities are determined using the specific identification method. Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are judged to be other than temporary are written down to fair value and charged to income in the Consolidated Statement of Income. | |
Premiums and discounts are recognized in interest income using the interest method over the period to maturity. | |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale |
The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company's loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company's name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in price with the investors on the same day that the loan was locked in with the Company's customers. Therefore, these loans present very little market risk for the Company. | |
The Company usually delivers to, and receives funding from, the investor within 30 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a "best efforts" basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. As a result of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is the same as the value of the loan amount at its origination. These loans are classified as Level 2. | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses |
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest is recognized over the term of the loan based on the loan balance outstanding. Fees charged for originating loans, if any, are deferred and offset by the deferral of certain direct expenses associated with loans originated. The net deferred fees are recognized as yield adjustments by applying the interest method. | |
The allowance for loan losses is maintained at a level believed to be adequate by management to absorb potential losses in the loan portfolio. Management's determination of the adequacy of the allowance is based on an evaluation of the portfolio, past loss experience, economic conditions and volume, growth and composition of the portfolio. | |
The Company considers a loan to be impaired when, based upon current information and events, it is believed that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that are considered impaired are accounted for at the lower of carrying value or fair value. The accrual of interest on impaired loans is discontinued when, in management's opinion, the borrower may be unable to meet payments as they become due, generally when a loan becomes 90 days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received first to principal and then to interest income. | |
Property and Equipment | Property and Equipment |
Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the asset's estimated useful life. Estimated lives range up to 39 years for buildings and up to 10 years for furniture, fixtures and equipment. | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets |
Goodwill represents the cost in excess of fair value of net assets acquired (including identifiable intangibles) in purchase transactions. Other intangible assets represent premiums paid for acquisitions of core deposits (core deposit intangibles). Core deposit intangibles are being amortized on a straight-line basis over seven years. Goodwill and identifiable intangible assets are reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The annual valuation is performed on September 30 of each year. | |
Other Real Estate Owned | Other Real Estate Owned |
Other real estate owned includes real estate acquired through foreclosure. Other real estate owned is carried at the lower of cost (principal balance at date of foreclosure) or fair value minus estimated cost to sell. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent changes in the valuation allowance, and gains or losses on disposal are included in other expenses. | |
Comprehensive Income | Comprehensive Income |
The Company reports comprehensive income in accordance with ASC 220, "Comprehensive Income." ASC 220 requires that all items that are required to be reported under accounting standards as comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. The disclosures requirements have been included in the Company's consolidated statements of comprehensive income. | |
Mortgage Origination Fees | Mortgage Origination Fees |
Mortgage origination fees relate to activities comprised of accepting residential mortgage applications, qualifying borrowers to standards established by investors and selling the mortgage loans to the investors under pre-existing commitments. The loans are funded by the investor at closing and the related fees received by the Company for these services are recognized at the time the loan is closed. | |
Advertising Expense | Advertising Expense |
Advertising and public relations costs are generally expensed as incurred. External costs incurred in producing media advertising are expensed the first time the advertising takes place. External costs relating to direct mailing costs are expensed in the period in which the direct mailings are sent. | |
Income Taxes | Income Taxes |
A deferred income tax liability or asset is recognized for the estimated future effects attributable to differences in the tax bases of assets or liabilities and their reported amounts in the financial statements as well as operating loss and tax credit carry forwards. The deferred tax asset or liability is measured using the enacted tax rate expected to apply to taxable income in the period in which the deferred tax asset or liability is expected to be realized. | |
In 2006, the FASB issued guidance related to Accounting for Uncertainty in Income Taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB ASC topic 740-10, "Income Taxes". It also prescribes a recognition threshold and measurement of a tax position taken or expected to be taken in an enterprise's tax return. | |
Stock Based Compensation Cost | Stock Based Compensation Cost |
The Company accounts for stock based compensation under the fair value provisions of the accounting literature. Compensation expense is recognized in salaries and employee benefits. | |
The fair value of each grant is estimated on the date of grant using the Black-Sholes option pricing model. No options were granted in 2012, 2011 or 2010. | |
Earnings Per Common Share | Earnings Per Common Share |
Basic earnings per common share ("EPS") excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock and common stock equivalents. Common stock equivalents consist of stock options and warrants and are computed using the treasury stock method. | |
Subsequent Events | Subsequent Events |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued and all material subsequent events have been either recognized or disclosed in the notes to the financial statements. | |
Segment Information | Segment Information |
ASC Topic 280-10, "Segment Reporting," requires selected segment information of operating segments based on a management approach. The Company operates as one business segment. | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
In September 2011, the Intangibles topic was amended to permit an entity to consider qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. These amendments were effective for the Company on January 1, 2012. | |
In April 2011 the FASB issued ASU 2011-02 to assist creditors with their determination of when a restructuring is a Troubled Debt Restructuring ("TDR"). The determination is based on whether the restructuring constitutes a concession and whether the debtor is experiencing financial difficulties as both events must be present. The new guidance was effective for the Company beginning January 1, 2012 and did not have a material effect on the Company's TDR determinations. | |
In April 2011, the criteria used to determine effective control of transferred assets in the Transfers and Servicing topic of the ASC was amended by ASU 2011-03. The requirement for the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms and the collateral maintenance implementation guidance related to that criterion were removed from the assessment of effective control. The other criteria to assess effective control were not changed. The amendments were effective for the Company on January 1, 2012 and had no effect on the financial statements. | |
ASU 2011-04 was issued in May 2011 to amend the Fair Value Measurement topic of the ASC by clarifying the application of existing fair value measurement and disclosure requirements and by changing particular principles or requirements for measuring fair value or for disclosing information about fair value measurements. The amendments were effective for the Company beginning January 1, 2012 and had no effect on the financial statements. | |
The Comprehensive Income topic of the ASC was amended in June 2011. The amendment eliminates the option to present other comprehensive income as a part of the statement of changes in stockholders' equity and requires consecutive presentation of the statement of net income and other comprehensive income. The amendments were applicable to the Company on January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements. Companies should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect prior to the amendments while FASB finalizes its conclusions regarding future requirements. | |
In July 2012, the Intangibles topic was amended to permit an entity to consider qualitative factors to determine whether it is more likely than not that indefinite-lived intangible assets are impaired. If it is determined to be more likely than not that indefinite-lived intangible assets are impaired, then the entity is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The amendments are not expected to have a material effect on the Company's financial statements. | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. | |
Risk and Uncertainties | Risk and Uncertainties |
In the normal course of business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on a different basis, than its interest-earning assets. Credit risk is the risk of default on the Company's loan and investment portfolios that results from borrowers' or issuer's inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans and investments and the valuation of real estate held by the Company. | |
The Company is subject to regulations of various governmental agencies (regulatory risk). These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances and operating restrictions from regulators' judgments based on information available to them at the time of their examination. | |
Reclassifications | Reclassifications |
Certain captions and amounts in the 2011 and 2010 consolidated financial statements were reclassified to conform to the 2012 presentation. | |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair values of investment securities | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||
June 30, 2013: | ||||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,518 | $ | 1 | $ | 57 | $ | 1,462 | (Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||
Mortgage-backed securities | 122,527 | 1,492 | 1,370 | 122,649 | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Small Business Administration pools | 56,886 | 711 | 293 | 57,304 | Gains | Losses | ||||||||||||||||||||||||||||||||||
State and local government | 41,753 | 108 | 1,939 | 39,922 | December 31, 2012: | |||||||||||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 2 | 42 | 2,309 | Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | |||||||||||||||||||||||||||
$ | 225,033 | $ | 2,314 | $ | 3,701 | $ | 223,646 | Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | ||||||||||||||||||||||||||||
December 31, 2012: | Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | |||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | State and local government | 31,483 | 936 | 46 | 32,373 | |||||||||||||||||||||||||||
Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | Corporate and other securities | 2,349 | 53 | 1 | 2,401 | |||||||||||||||||||||||||||||||
Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | ||||||||||||||||||||||||||||||||||||
State and local government | 31,483 | 936 | 46 | 32,373 | $ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | ||||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 53 | 1 | 2,401 | ||||||||||||||||||||||||||||||||||||
$ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | December 31, 2011: | ||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 31 | $ | 3 | $ | — | $ | 34 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 141,103 | 2,876 | 2,348 | 141,631 | ||||||||||||||||||||||||||||||||||||
Small Business Administration pools | 35,889 | 634 | 44 | 36,479 | ||||||||||||||||||||||||||||||||||||
State and local government | 19,617 | 871 | — | 20,488 | ||||||||||||||||||||||||||||||||||||
Corporate and other securities | 2,432 | 54 | 86 | 2,400 | ||||||||||||||||||||||||||||||||||||
$ | 199,072 | $ | 4,438 | $ | 2,478 | $ | 201,032 | |||||||||||||||||||||||||||||||||
Schedule of the amortized cost and fair value of investment securities by contractual maturity | The amortized cost and fair value of investment securities at June 30, 2013 by contractual maturity are as follows. | |||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 20,260 | $ | 20,442 | ||||||||||||||||||||||||||||||||||||
Due after one year through five years | 86,248 | 86,729 | Available-for-sale | |||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 88,107 | 86,334 | (Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||||||||||||||
Due after ten years | 30,418 | 30,141 | Cost | Value | ||||||||||||||||||||||||||||||||||||
$ | 225,033 | $ | 223,646 | Due in one year or less | $ | 26,725 | $ | 26,722 | ||||||||||||||||||||||||||||||||
Due after one year through five years | 83,068 | 84,630 | ||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 30,565 | 31,161 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 59,569 | 60,932 | ||||||||||||||||||||||||||||||||||||||
$ | 199,927 | $ | 203,445 | |||||||||||||||||||||||||||||||||||||
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position | ||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprises | $ | 1,444 | $ | 57 | $ | — | $ | — | $ | 1,444 | $ | 57 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||
Small Business Administration Pools | 21,213 | 289 | 882 | 4 | 22,095 | 293 | December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | 53,766 | 1,330 | 3,118 | 35 | 56,884 | 1,365 | (Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||||||
Non-agency mortgage-backed securities | 64 | 1 | 983 | 4 | 1,047 | 5 | Available-for-sale securities: | |||||||||||||||||||||||||||||||||
Corporate bonds and other | 871 | 41 | 50 | 1 | 921 | 42 | Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | |||||||||||||||||||||
State and local government | 29,518 | 1,939 | — | — | 29,518 | 1,939 | Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | |||||||||||||||||||||||||||
Total | $ | 106,876 | $ | 3,657 | $ | 5,033 | $ | 44 | $ | 111,909 | $ | 3,701 | Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | |||||||||||||||||||||
State and local government | 2,599 | 46 | — | — | 2,599 | 46 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | |||||||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | ||||||||||||||||||||||||||||
Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | ||||||||||||||||||||||||||||||||||
State and local government | 2,599 | 46 | — | — | 2,599 | 46 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | ||||||||||||||||||||||||||||||||||
Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||
December 31, 2011 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 25,113 | $ | 163 | $ | 3,269 | $ | 24 | $ | 28,382 | $ | 187 | ||||||||||||||||||||||||||||
Small Business Administration pools | 6,108 | 38 | 2,203 | 6 | 8,311 | 44 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | 574 | 3 | 13,275 | 2,158 | 13,849 | 2,161 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | 940 | 60 | 524 | 26 | 1,464 | 86 | ||||||||||||||||||||||||||||||||||
Total | $ | 32,735 | $ | 264 | $ | 19,271 | $ | 2,214 | $ | 52,006 | $ | 2,478 | ||||||||||||||||||||||||||||
Schedule of OTTI losses on held-to-maturity and available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||||||||||||||||||
ended June 30, | ||||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available-for- | |||||||||||||||||||||||||||||||||||||||
sale securities | Year ended | |||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | December 31, | |||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | 2012 | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 200 | (Dollars in thousands) | Available- | ||||||||||||||||||||||||||||||||||||
for-sale | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | |||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 200 | ||||||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available- | |||||||||||||||||||||||||||||||||||||||
for-sale | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 262 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | (35 | ) | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 297 | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Held-to- | Available- | Total | |||||||||||||||||||||||||||||||||||||
maturity | for-sale | |||||||||||||||||||||||||||||||||||||||
mortgage- | securities | |||||||||||||||||||||||||||||||||||||||
backed | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 108 | $ | 4,310 | 4,418 | |||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | — | 2,858 | 2,858 | |||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 108 | $ | 1,452 | $ | 1,560 | ||||||||||||||||||||||||||||||||||
Schedule of analysis of amounts relating to credit losses on debt securities recognized in earnings | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Available | Available | |||||||||||||||||||||||||||||||||||||||
for | for | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Sale | Sale | ||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 271 | $ | 930 | (Dollars in thousands) | Available | Available | Available | Held to | |||||||||||||||||||||||||||||||
for Sale | for Sale | for Sale | maturity | |||||||||||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | — | 173 | Balance at beginning of period | $ | 930 | $ | 2,143 | $ | 545 | $ | 132 | |||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | 173 | 50 | 291 | 98 | ||||||||||||||||||||||||||||||||||||
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | — | 27 | Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | 27 | 247 | 1,161 | 10 | |||||||||||||||||||||||||||||||||
Other-than-temporary-impairment previously recognized on securities sold | — | (679 | ) | Realized losses during the period | (180 | ) | (1,510 | ) | (94 | ) | — | |||||||||||||||||||||||||||||
Realized losses during the period | (46 | ) | (136 | ) | Other-than-temporary impairment previously recognized in securities sold | (679 | ) | — | — | — | ||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 225 | $ | 315 | Transfer to available-for-sale | — | — | 240 | (240 | ) | ||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 271 | $ | 930 | $ | 2,143 | $ | — | ||||||||||||||||||||||||||||||||
Summary of the number of CUSIPs, carrying value and fair value of non-agency mortgage-backed securities /CMOs by credit rating | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Credit | Number | Par | Amortized | Fair | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Rating | of | Value | Cost | Value | ||||||||||||||||||||||||||||||||||||
CUSIPs | ||||||||||||||||||||||||||||||||||||||||
AA | 2 | $ | 198 | $ | 198 | $ | 201 | Credit Rating | Number | Par | Amortized | Fair | ||||||||||||||||||||||||||||
A1 | 1 | 324 | 324 | 343 | of | Value | Cost | Value | ||||||||||||||||||||||||||||||||
A3 | 1 | 281 | 281 | 283 | CUSIPs | |||||||||||||||||||||||||||||||||||
BBB | 3 | 240 | 240 | 237 | AA | 2 | $ | 264 | $ | 264 | $ | 268 | ||||||||||||||||||||||||||||
Baa1 | 1 | 65 | 65 | 64 | A1 | 1 | 380 | 380 | 374 | |||||||||||||||||||||||||||||||
Baa2 | 1 | 33 | 33 | 33 | A3 | 1 | 320 | 320 | 318 | |||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 1,847 | 1,528 | 1,542 | A | 2 | 72 | 72 | 71 | |||||||||||||||||||||||||||||||
Total | 13 | $ | 2,988 | $ | 2,669 | $ | 2,703 | BBB | 1 | 231 | 231 | 225 | ||||||||||||||||||||||||||||
Baa1 | 1 | 71 | 71 | 72 | ||||||||||||||||||||||||||||||||||||
Baa2 | 1 | 97 | 97 | 96 | ||||||||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 2,008 | 1,653 | 1,291 | ||||||||||||||||||||||||||||||||||||
Total | 13 | $ | 3,443 | $ | 3,088 | $ | 2,715 | |||||||||||||||||||||||||||||||||
LOANS_Tables
LOANS (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loans by category | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 20,908 | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 15,232 | 13,052 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 38,363 | 38,892 | (Dollars in thousands) | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 233,769 | 226,575 | Commercial, financial and agricultural | $ | 20,924 | $ | 20,608 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 25,437 | 27,173 | Construction | 13,052 | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 7,380 | 5,495 | Mortgage-residential | 38,892 | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 341,089 | $ | 332,111 | Mortgage-commercial | 226,575 | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 27,173 | 27,976 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 5,495 | 5,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 332,111 | $ | 324,311 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance for loan losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,621 | $ | 4,699 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 250 | 301 | Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (523 | ) | (307 | ) | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 91 | 49 | Balance at the beginning of year | $ | 4,699 | $ | 4,911 | $ | 4,854 | |||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | Provision for loan losses | 496 | 1,420 | 1,878 | ||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (742 | ) | (1,696 | ) | (1,948 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Recoveries | 168 | 64 | 127 | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Balance at end of year | $ | 4,621 | $ | 4,699 | $ | 4,911 | |||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,534 | $ | 4,745 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 100 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (209 | ) | (95 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 14 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance for loan losses and the recorded investment in loans receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2012 | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||
Charge-offs | 7 | — | 36 | 397 | 44 | 39 | — | 523 | Residential | Commercial | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | 20 | — | 62 | — | 1 | 8 | — | 91 | 2012 | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (87 | ) | 25 | 58 | 157 | (131 | ) | 110 | 118 | 250 | Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | Beginning balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | |||||||||||||||||||
Charge-offs | 258 | — | 112 | 293 | — | 79 | — | 742 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Recoveries | 42 | — | 86 | — | 3 | 37 | — | 168 | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | — | $ | — | $ | 5 | Provisions | 223 | — | (253 | ) | 140 | (124 | ) | 2 | 508 | 496 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 264 | 25 | 314 | 1,082 | 226 | 96 | 2,427 | 4,434 | Ending balance | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | |||||||||||||||||||||||||||
Loans receivable: | Ending balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 20,908 | $ | 15,232 | $ | 38,363 | $ | 233,769 | $ | 25,437 | $ | 7,380 | $ | — | $ | 341,089 | Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Collectively evaluated for impairment | 338 | — | 235 | 1,322 | 400 | 17 | 2,309 | 4,621 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Loans receivable: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 84 | — | 721 | 5,759 | — | 7 | — | 6,571 | Ending balance-total | $ | 20,924 | $ | 13,052 | $ | 38,892 | $ | 226,575 | $ | 27,173 | $ | 5,495 | $ | — | $ | 332,111 | |||||||||||||||||||||||||||
Ending balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 20,824 | $ | 15,232 | $ | 37,642 | $ | 228,010 | $ | 25,437 | $ | 7,373 | $ | — | $ | 334,518 | Individually evaluated for impairment | 37 | — | 357 | 5,772 | — | 10 | — | 6,176 | |||||||||||||||||||||||||||
Collectively evaluated for impairment | 20,887 | 13,052 | 38,535 | 220,803 | 27,173 | 5,485 | — | 325,935 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2011 | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||
Charge-offs | 62 | — | 30 | 178 | — | 37 | — | 307 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||||||||||
Recoveries | 25 | — | 9 | — | 2 | 13 | — | 49 | Residential | Commercial | ||||||||||||||||||||||||||||||||||||||||||
Provisions | (45 | ) | — | 106 | 16 | (78 | ) | 12 | 290 | 301 | 2011 | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 681 | $ | 905 | $ | 465 | $ | 1,404 | $ | 325 | $ | 88 | $ | 1,043 | $ | 4,911 | ||||||||||||||||||||||||||||||||||||
Ending balances: | Charge-offs | 265 | — | 186 | 861 | 285 | 99 | — | 1,696 | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | Recoveries | 31 | — | 5 | — | 5 | 23 | — | 64 | |||||||||||||||||||||||||||
Provisions | (116 | ) | (905 | ) | 230 | 932 | 476 | 45 | 758 | 1,420 | ||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 249 | — | 599 | 1,313 | 445 | 45 | 2,091 | 4,742 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | ||||||||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 19,741 | $ | 12,302 | $ | 38,779 | $ | 221,880 | $ | 26,945 | $ | 5,266 | $ | — | $ | 324,913 | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||||||||||||||
Ending balances: | Collectively evaluated for impairment | 330 | — | 514 | 1,474 | 521 | 57 | 1,801 | 4,697 | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 24 | — | 581 | 8,650 | — | 28 | — | 9,283 | Loans receivable: | |||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 20,608 | $ | 11,767 | $ | 38,337 | $ | 220,288 | $ | 27,976 | $ | 5,335 | $ | — | $ | 324,311 | ||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 19,717 | $ | 12,302 | $ | 38,198 | $ | 213,230 | $ | 26,945 | $ | 5,238 | $ | — | $ | 315,630 | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 45 | — | 622 | 8,667 | — | 19 | — | 9,353 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 20,563 | $ | 11,767 | $ | 37,715 | $ | 211,621 | $ | 27,976 | $ | 5,316 | $ | — | $ | 314,958 | ||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2013 | $ | 409 | $ | 21 | $ | 199 | $ | 1,075 | $ | 236 | $ | 78 | $ | 2,516 | $ | 4,534 | ||||||||||||||||||||||||||||||||||||
Charge-offs | — | — | 32 | 162 | 2 | 13 | — | 209 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 9 | — | 1 | — | 1 | 3 | — | 14 | ||||||||||||||||||||||||||||||||||||||||||||
Provisions | (154 | ) | 4 | 151 | 169 | (9 | ) | 28 | (89 | ) | 100 | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | ||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2012 | $ | 307 | $ | — | $ | 500 | $ | 1,430 | $ | 566 | $ | 53 | $ | 1,889 | $ | 4,745 | ||||||||||||||||||||||||||||||||||||
Charge-offs | 62 | — | 17 | — | — | 16 | — | 95 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 13 | — | 2 | — | — | 6 | — | 21 | ||||||||||||||||||||||||||||||||||||||||||||
Provisions | (9 | ) | — | 114 | (117 | ) | (121 | ) | 2 | 202 | 71 | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | ||||||||||||||||||||||||||||||||||||
Schedule of loans individually evaluated and considered impaired | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans considered impaired | $ | 6,571 | $ | 6,176 | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired for which there is a related allowance for loan loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | 57 | — | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Related allowance | 5 | — | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | 6,514 | 6,176 | Total loans considered impaired at year end | $ | 6,176 | $ | 9,353 | $ | 9,587 | |||||||||||||||||||||||||||||||||||||||||||
Average impaired loans | 7,719 | 6,704 | Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | $ | — | $ | 148 | $ | 378 | ||||||||||||||||||||||||||||||||||||||||||||||
Related allowance | $ | — | $ | 2 | $ | 96 | ||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | $ | 6,176 | $ | 9,205 | $ | 9,209 | ||||||||||||||||||||||||||||||||||||||||||||||
Average impaired loans | $ | 6,704 | $ | 9,926 | $ | 10,576 | ||||||||||||||||||||||||||||||||||||||||||||||
Amount of interest earned during period of impairment | $ | 179 | $ | 397 | $ | 323 | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loan category and loans individually evaluated and considered impaired | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | $ | — | December 31, 2012 | Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||||||
Real estate: | Balance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 664 | 679 | — | 749 | 15 | 744 | 12 | Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | ||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | — | Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||
Real estate: | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 57 | 57 | 5 | 56 | 7 | 58 | 2 | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage-residential | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | Total: | |||||||||||||||||||||||||||||||||||||||
Real estate: | Commercial | 37 | 50 | — | 53 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 721 | 736 | 5 | 805 | 22 | 802 | 14 | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
$ | 6,571 | $ | 7,256 | $ | 5 | $ | 7,719 | $ | 127 | $ | 7,847 | $ | 30 | Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||
Six months ended | Three months ended | $ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | |||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | ||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | December 31, 2011 | Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||||||
Consumer: | With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Commercial | $ | 12 | $ | 19 | $ | — | $ | 21 | $ | — | ||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Mortgage-residential | 622 | 650 | — | 656 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | Mortgage-commercial | 8,552 | 8,975 | — | 9,066 | 382 | |||||||||||||||||||||||||||||||||||||||
Real estate: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | — | — | Other | 19 | 19 | — | 30 | 1 | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | — | With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Commercial | 33 | 33 | 1 | 36 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Mortgage-commercial | 115 | 115 | 1 | 117 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | Consumer: | |||||||||||||||||||||||||||||||||||||
Real estate: | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | Total: | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | Commercial | 45 | 52 | 1 | 57 | 2 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | Mortgage-residential | 622 | 650 | — | 656 | 4 | |||||||||||||||||||||||||||||||||||||||
$ | 9,283 | $ | 9,750 | $ | — | $ | 10,316 | $ | 144 | $ | 12,446 | $ | 70 | Mortgage-commercial | 8,667 | 9,090 | 1 | 9,183 | 390 | |||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Other | 19 | 19 | — | 30 | 1 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | $ | 9,353 | $ | 9,811 | $ | 2 | $ | 9,926 | $ | 397 | ||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 37 | 50 | — | 53 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of loan category and loan by risk categories | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,741 | $ | 52 | $ | 115 | $ | — | $ | 20,908 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 12,182 | 1,222 | 1,828 | — | 15,232 | (Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 35,900 | 1,186 | 1,277 | — | 38,363 | December 31, 2012 | Mention | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 217,627 | 5,899 | 10,243 | — | 233,769 | Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 25,156 | 139 | 142 | — | 25,437 | Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | |||||||||||||||||||||||||||||||||||||||||
Other | 7,357 | 14 | 9 | — | 7,380 | Mortgage—residential | 36,493 | 1,677 | 722 | — | 38,892 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 318,963 | $ | 8,512 | $ | 13,614 | $ | — | $ | 341,089 | Mortgage—commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | ||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | Home Equity | 26,604 | 124 | 445 | — | 27,173 | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Pass | Mention | Substandard | Doubtful | Total | Other | 5,475 | 3 | 17 | — | 5,495 | |||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | |||||||||||||||||||||||||||||||||||||||||
Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 36,493 | 1,677 | 722 | — | 38,892 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 26,604 | 124 | 445 | — | 27,173 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 5,475 | 3 | 17 | — | 5,495 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | (Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||||||||||||||
December 31, 2011 | Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 19,827 | $ | 499 | $ | 282 | $ | — | $ | 20,608 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 6,764 | — | 5,003 | — | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—residential | 37,063 | 305 | 969 | — | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—commercial | 200,984 | 8,009 | 11,295 | — | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 27,692 | 38 | 246 | — | 27,976 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 5,311 | 5 | 19 | — | 5,335 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 297,641 | $ | 8,856 | $ | 17,814 | $ | — | $ | 324,311 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of loan category and present loans past due and on non-accrual status | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Days | Past Due | than 90 | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 16 | $ | — | $ | — | $ | 84 | $ | 100 | $ | 20,808 | $ | 20,908 | (Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | ||||||||||||||||||||||||||||||
Real estate: | December 31, 2012 | Past Due | Past Due | 90 Days and | Due | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 15,232 | 15,232 | Accruing | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 514 | 70 | — | 663 | 1,247 | 37,116 | 38,363 | Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | ||||||||||||||||||||||||||||||
Mortgage-commercial | 1,448 | 464 | — | 5,224 | 7,136 | 226,633 | 233,769 | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Construction | — | — | — | — | — | 13,052 | 13,052 | ||||||||||||||||||||||||||||||||||||||||||||
Home equity | 170 | 21 | — | — | 191 | 25,246 | 25,437 | Mortgage—residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||
Other | 53 | 3 | — | 7 | 63 | 7,317 | 7,380 | Mortgage—commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | |||||||||||||||||||||||||||||||||||||
Total | $ | 2,201 | $ | 558 | $ | — | $ | 5,978 | $ | 8,737 | $ | 332,352 | $ | 341,089 | Consumer: | |||||||||||||||||||||||||||||||||||||
Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | Days | Past Due | than 90 | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | ||||||||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 13,052 | 13,052 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | (Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||
Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | December 31, 2011 | Past Due | Past Due | 90 Days and | Due | ||||||||||||||||||||||||||||||||||||||||
Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | Accruing | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | Commercial | $ | 147 | $ | 123 | $ | — | $ | 12 | $ | 282 | $ | 20,326 | $ | 20,608 | |||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 11,767 | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage—residential | 391 | 95 | — | 623 | 1,109 | 37,228 | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage—commercial | 1,382 | 966 | 25 | 4,749 | 7,122 | 213,166 | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 45 | — | — | — | 45 | 27,931 | 27,976 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 42 | 18 | — | 19 | 79 | 5,256 | 5,335 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,007 | $ | 1,202 | $ | 25 | $ | 5,403 | $ | 8,637 | $ | 315,674 | $ | 324,311 | ||||||||||||||||||||||||||||||||||||||
Schedule by loan category, present loans determined to be TDRs | ||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | For the twelve months ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Troubled Debt | Number | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 257 | $ | 257 | Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 257 | $ | 257 | Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—Commercial | 1 | $ | 40 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2012 | Total nonaccrual | 1 | $ | 40 | $ | 40 | ||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | Mortgage—Commercial | 2 | $ | 596 | $ | 596 | ||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | Total TDRs | 3 | $ | 636 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
For the twelve months ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | Troubled Debt | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||
Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2012 | (Dollars in thousands) | Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | Mortgage—Commercial | 5 | $ | 741 | $ | 741 | ||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | Commercial & Industrial | 2 | 43 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Total nonaccrual | 7 | $ | 784 | $ | 784 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | Accrual | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—Commercial | 1 | $ | 3,138 | $ | 3,138 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | Total Accrual | 1 | $ | 3,138 | $ | 3,138 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | Total TDRs | 8 | $ | 3,922 | $ | 3,922 | |||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule by loan category, present loans determined to be TDRs in the last twelve months that had payment defaults during the period | There were no loans determined to be TDRs in the twelve months ended December 31, 2012 that subsequently defaulted during the twelve month period ended December 31, 2012. Defaulted loans are those loans that are greater than 89 days past due. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | For the twelve months | |||||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | Troubled Debt | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructurings that | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | subsequently defaulted | ||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | this period | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the six months ended | of | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | Mortgage—Commercial | 4 | $ | 704 | ||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | Commercial & Industrial | 1 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 5 | $ | 715 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||
Schedule of carrying amount and estimated fair value by classification Level of the Company's financial instruments | ||||||||||||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||
Financial Assets: | December 31, 2012 | |||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 24,287 | $ | 24,287 | $ | 24,287 | $ | — | $ | — | Fair Value | |||||||||||||||||||||||
Available-for-sale securities | 223,646 | 223,646 | 830 | 222,399 | 417 | Carrying | ||||||||||||||||||||||||||||
Other investments, at cost | 2,269 | — | — | — | 2,269 | (Dollars in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Loans held for sale | 5,789 | 5,789 | — | 5,789 | — | Financial Assets: | ||||||||||||||||||||||||||||
Net Loans receivable | 336,650 | 340,151 | — | 333,580 | 6,571 | Cash and short term investments | $ | 18,296 | $ | 18,296 | $ | 18,296 | $ | — | $ | — | ||||||||||||||||||
Accrued interest | 2,177 | 2,177 | 2,177 | — | — | Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||
Interest rate swap | (172 | ) | (172 | ) | — | — | (172 | ) | Other investments, at cost | 2,527 | — | — | — | 2,527 | ||||||||||||||||||||
Financial liabilities: | Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | ||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 105,478 | $ | 105,478 | $ | — | $ | 105,478 | $ | — | Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | ||||||||||||||||||
NOW and money market accounts | 186,778 | 186,778 | — | 186,778 | — | Accrued interest | 2,098 | 2,098 | 2,098 | — | — | |||||||||||||||||||||||
Savings | 47,238 | 47,238 | — | 47,238 | — | Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | ||||||||||||||||||||
Time deposits | 170,125 | 171,732 | — | 171,732 | — | Financial liabilities: | ||||||||||||||||||||||||||||
Total deposits | 509,619 | 511,226 | — | 511,226 | — | Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | ||||||||||||||||||
Federal Home Loan Bank Advances | 34,335 | 38,458 | — | 38,458 | — | NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | |||||||||||||||||||||||
Short term borrowings | 15,650 | 15,650 | — | 15,650 | — | Savings | 41,100 | 41,100 | — | 41,100 | — | |||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | Time deposits | 185,477 | 187,313 | — | 187,313 | — | |||||||||||||||||||||||
Accrued interest payable | 666 | 666 | 666 | — | — | |||||||||||||||||||||||||||||
Total deposits | 474,977 | 476,813 | — | 476,813 | — | |||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | |||||||||||||||||||||||||||||
December 31, 2012 | Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | ||||||||||||||||||||||||||||
Fair Value | Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | ||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | |||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 18,708 | $ | 18,708 | $ | 18,708 | $ | — | $ | — | ||||||||||||||||||||||||
Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||||||||
Other investments, at cost | 2,527 | — | — | — | 2,527 | December 31, 2011 | ||||||||||||||||||||||||||||
Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | (Dollars in thousands) | Carrying | Fair | ||||||||||||||||||||||||||
Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | Amount | Value | |||||||||||||||||||||||||||
Accrued interest | 2,098 | 2,098 | 2,098 | — | — | Financial Assets: | ||||||||||||||||||||||||||||
Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | Cash and short term investments | $ | 16,492 | $ | 16,492 | |||||||||||||||||||||
Financial liabilities: | Available-for-sale securities | 201,032 | 201,032 | |||||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | Other investments, at cost | 5,637 | — | |||||||||||||||||||||
NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | Loans held for sale | 3,725 | 3,725 | ||||||||||||||||||||||||||
Savings | 41,100 | 41,100 | — | 41,100 | — | Net loans receivable | 319,612 | 319,505 | ||||||||||||||||||||||||||
Time deposits | 185,477 | 187,313 | — | 187,313 | — | Accrued interest | 1,914 | 1,914 | ||||||||||||||||||||||||||
Total deposits | 474,977 | 476,813 | — | 476,813 | — | Interest rate swap | (602 | ) | (602 | ) | ||||||||||||||||||||||||
Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | Financial liabilities: | ||||||||||||||||||||||||||||
Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | Non-interest bearing demand | $ | 83,572 | $ | 83,572 | ||||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | NOW and money market accounts | 136,483 | 136,483 | ||||||||||||||||||||||||||
Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | Savings | 34,048 | 34,048 | ||||||||||||||||||||||||||
Time deposits | 210,482 | 214,437 | ||||||||||||||||||||||||||||||||
Total deposits | 464,585 | 468,540 | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 43,862 | 50,238 | ||||||||||||||||||||||||||||||||
Short term borrowings | 13,616 | 13,616 | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | 17,913 | 17,913 | ||||||||||||||||||||||||||||||||
Accrued interest payable | 1,624 | 1,624 | ||||||||||||||||||||||||||||||||
Schedule of changes in fair values and location in the income statement where these changes are included | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Description | Non-interest | Non-interest | Non-interest | Non-interest | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||
income: | income: | income: | income: | (Dollars in thousands) | Non-interest | Non-interest | Non-interest | |||||||||||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | income: | income: | income: | ||||||||||||||||||||||||||||
adjustment | adjustment | adjustment | adjustment | Fair-value | Fair-value | Fair-value | ||||||||||||||||||||||||||||
loss | loss | loss | loss | adjustment | adjustment | adjustment | ||||||||||||||||||||||||||||
Interest rate swap | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | gain (loss) | gain (loss) | gain (loss) | |||||||||||||||||||
Total | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | Interest rate swap | (58 | ) | (166 | ) | (581 | ) | |||||||||||||||
Total | $ | (58 | ) | $ | (166 | ) | $ | (581 | ) | |||||||||||||||||||||||||
Schedule of fair value for each category of assets carried at fair value that are measured on a recurring basis | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | (Dollars in thousands) | |||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||
Assets | (Level 2) | 2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||
(Level 1) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Available for sale securities | Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,462 | $ | — | $ | 1,462 | $ | — | Assets | (Level 2) | ||||||||||||||||||||||||
Mortgage-backed securities | 122,649 | — | 122,649 | — | (Level 1) | |||||||||||||||||||||||||||||
Small Business Administration securities | 57,304 | — | 57,304 | — | Available for sale securities | |||||||||||||||||||||||||||||
State and local government | 39,922 | — | 39,922 | — | Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | |||||||||||||||||||||
Corporate and other securities | 2,309 | 830 | 1,062 | 417 | Mortgage-backed securities | 112,144 | — | 112,144 | — | |||||||||||||||||||||||||
223,646 | 830 | 222,399 | 417 | Small Business Administration securities | 54,993 | — | 54,993 | — | ||||||||||||||||||||||||||
State and local government | 32,373 | — | 32,373 | — | ||||||||||||||||||||||||||||||
Interest rate swap | (172 | ) | — | — | (172 | ) | Corporate and other securities | 2,401 | 914 | 1,070 | 417 | |||||||||||||||||||||||
Total | $ | 223,474 | $ | 830 | $ | 222,399 | $ | 245 | ||||||||||||||||||||||||||
203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate cap/swap | (338 | ) | — | — | (338 | ) | |||||||||||||||||||||||||||
Description | December | Quoted | Significant | Significant | Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | |||||||||||||||||||||
31, 2012 | Prices in | Other | Unobservable | |||||||||||||||||||||||||||||||
Active | Observable | Inputs | ||||||||||||||||||||||||||||||||
Markets for | Inputs | (Level 3) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Identical | (Level 2) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||
(Level 1) | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||
Available for sale securities | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | Markets for | Observable | Inputs | |||||||||||||||||||||||
Mortgage-backed securities | 112,144 | — | 112,144 | — | Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||
Small Business Administration securities | 54,993 | — | 54,993 | — | Assets | (Level 2) | ||||||||||||||||||||||||||||
State and local government | 32,373 | — | 32,373 | — | (Level 1) | |||||||||||||||||||||||||||||
Corporate and other securities | 2,401 | 914 | 1,070 | 417 | Available for sale securities | |||||||||||||||||||||||||||||
203,445 | 914 | 202,114 | 417 | Government sponsored enterprises | $ | 34 | $ | — | $ | 34 | $ | — | ||||||||||||||||||||||
Mortgage backed securities | 141,631 | — | 141,631 | — | ||||||||||||||||||||||||||||||
Interest rate swap | (338 | ) | — | — | (338 | ) | Small Business Administration securities | 36,479 | — | 36,479 | — | |||||||||||||||||||||||
Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | State and local government | 20,488 | — | 20,488 | — | |||||||||||||||||||||
Corporate and other securities | 2,400 | 926 | 1,474 | — | ||||||||||||||||||||||||||||||
201,032 | 926 | 200,106 | — | |||||||||||||||||||||||||||||||
Interest rate cap/floor | (602 | ) | — | — | (602 | ) | ||||||||||||||||||||||||||||
Total | $ | 200,430 | $ | 926 | $ | 200,106 | $ | (602 | ) | |||||||||||||||||||||||||
Schedule reconciling the changes in Level 3 financial instruments measured on a recurring basis | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | ||||||||||||||||||||||||||||||||
Stock | ||||||||||||||||||||||||||||||||||
Beginning Balance December 31, 2012 | $ | (338 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | (Dollars in thousands) | Interest rate | Corporate Preferred | ||||||||||||||||||||||||||||
Swap | Stock | |||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | Beginning Balance December 31, 2011 | $ | (602 | ) | — | |||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 168 | — | Included in earnings | (58 | ) | — | ||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Purchases, issuances, and settlements | 322 | 417 | |||||||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||
Ending Balance December 31, 2012 | $ | (338 | ) | 417 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | ||||||||||||||||||||||||||||||||
Stock | ||||||||||||||||||||||||||||||||||
Beginning Balance March 31, 2013 | $ | (254 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | |||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | (Dollars in thousands) | State and local | Corporate and other | Interest rate | ||||||||||||||||||||||||||||
government | securities | Swap | ||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 84 | — | securities | |||||||||||||||||||||||||||||||
Beginning Balance December 31, 2010 | $ | 625 | $ | 182 | $ | (778 | ) | |||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Total gains or losses (realized/unrealized) | |||||||||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Included in earnings | — | (103 | ) | (166 | ) | |||||||||||||||||||||||
Included in other comprehensive income | — | (79 | ) | — | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | (625 | ) | — | 342 | ||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | |||||||||||||||||||||||||||||||||
Cap/Floor/Swap | Ending Balance December 31, 2011 | $ | — | $ | — | $ | (602 | ) | ||||||||||||||||||||||||||
Beginning Balance December 31, 2011 | $ | (602 | ) | |||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (37 | ) | ||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 160 | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | |||||||||||||||||||||||||||||||||
Cap/Floor/Swap | ||||||||||||||||||||||||||||||||||
Beginning Balance March 31, 2012 | $ | (553 | ) | |||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (4 | ) | ||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 78 | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | |||||||||||||||||||||||||||||||
Schedule of the fair value for each category of assets carried at fair value that are measured on a non-recurring basis | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | (Dollars in thousands) | |||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||
Assets | (Level 2) | 2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||
(Level 1) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Impaired loans: | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 84 | $ | — | $ | — | $ | 84 | (Level 1) | (Level 2) | ||||||||||||||||||||||||
Real estate: | Impaired loans: | |||||||||||||||||||||||||||||||||
Mortgage-residential | 716 | — | — | 716 | Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | |||||||||||||||||||||
Mortgage-commercial | 5,759 | — | — | 5,759 | Real estate: | |||||||||||||||||||||||||||||
Consumer: | Mortgage-residential | 357 | — | — | 357 | |||||||||||||||||||||||||||||
Home equity | — | — | — | — | Mortgage-commercial | 5,772 | — | — | 5,772 | |||||||||||||||||||||||||
Other | 7 | — | — | 7 | Consumer: | |||||||||||||||||||||||||||||
Total impaired | 6,566 | — | — | 6,566 | Home equity | — | — | — | — | |||||||||||||||||||||||||
Other real estate owned: | Other | 10 | — | — | 10 | |||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | ||||||||||||||||||||||||||||||
Mortgage-residential | 302 | — | — | 302 | Total impaired | 6,176 | — | — | 6,176 | |||||||||||||||||||||||||
Mortgage-commercial | 2,221 | — | — | 2,221 | ||||||||||||||||||||||||||||||
Total other real estate owned | 2,824 | — | — | 2,824 | Other real estate owned: | |||||||||||||||||||||||||||||
Total | $ | 9,390 | $ | — | $ | — | $ | 9,390 | Construction | 301 | — | — | 301 | |||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage-commercial | 3,198 | — | — | 3,198 | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices | Significant | Significant | Total other real estate owned | 3,987 | — | — | 3,987 | |||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||||||||||
(Level 1) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | ||||||||||||||||||||||||||
Real estate: | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||
Mortgage-residential | 357 | — | — | 357 | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | — | — | 5,772 | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Consumer: | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Home equity | — | — | — | — | (Level 1) | (Level 2) | ||||||||||||||||||||||||||||
Other | 10 | — | — | 10 | Impaired loans: | |||||||||||||||||||||||||||||
Total impaired | 6,176 | — | — | 6,176 | Commercial & Industrial | $ | 44 | $ | — | $ | — | $ | 44 | |||||||||||||||||||||
Other real estate owned: | Real estate: | |||||||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | Mortgage-residential | 622 | — | — | 622 | |||||||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | Mortgage-commercial | 8,666 | — | — | 8,666 | |||||||||||||||||||||||||
Mortgage-commercial | 3,198 | — | — | 3,198 | Consumer: | |||||||||||||||||||||||||||||
Total other real estate owned | 3,987 | — | — | 3,987 | Home equity | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | Other | 19 | — | — | 19 | |||||||||||||||||||||
Total impaired | 9,351 | — | — | 9,351 | ||||||||||||||||||||||||||||||
Other real estate owned: | — | — | ||||||||||||||||||||||||||||||||
Construction | 2,156 | — | — | 2,156 | ||||||||||||||||||||||||||||||
Mortgage-residential | 4,278 | — | — | 4,278 | ||||||||||||||||||||||||||||||
Mortgage-commercial | 917 | — | — | 917 | ||||||||||||||||||||||||||||||
Total other real estate owned | 7,351 | — | — | 7,351 | ||||||||||||||||||||||||||||||
Total | $ | 16,702 | $ | — | $ | — | $ | 16,702 | ||||||||||||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurements | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2013 and December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
June 30, 2013 | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (172 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | (Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant | |||||||||||||||||||||||
December 31, | Observable | Unobservable | ||||||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | 2012 | Inputs | Inputs | ||||||||||||||||||||||||||
Interest Rate Swap | $ | (388 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
OREO | $ | 2,824 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable | n/a | |||||||||||||||||||||||
transactions | ||||||||||||||||||||||||||||||||||
Impaired loans | $ | 6,566 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||
Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
December 31, | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (338 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | |||||||||||||||||||||||||||||
OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Schedule of property and equipment | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||
Land | $ | 5,297 | $ | 5,467 | ||||
Premises | 13,990 | 13,990 | ||||||
Equipment | 7,187 | 6,381 | ||||||
26,474 | 25,838 | |||||||
Accumulated depreciation | 9,216 | 8,355 | ||||||
$ | 17,258 | $ | 17,483 | |||||
GOODWILL_CORE_DEPOSIT_INTANGIB1
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS | ||||||||
Schedule of intangible assets (excluding goodwill) | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2012 | 2011 | ||||||
Core deposit premiums, gross carrying amount | $ | 3,438 | $ | 3,438 | ||||
Other intangibles | 646 | 646 | ||||||
4,084 | 4,084 | |||||||
Accumulated amortization | (3,924 | ) | (3,719 | ) | ||||
Net | $ | 160 | $ | 365 | ||||
Schedule of future amortization expenses of the intangibles | ||||||||
(Dollars in thousands) | ||||||||
2013 | 160 | |||||||
$ | 160 | |||||||
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
OTHER REAL ESTATE OWNED | ||||||||
Summary of activity in the other real estate owned | ||||||||
December 31, | ||||||||
(In thousands) | 2012 | 2011 | ||||||
Balance—beginning of year | $ | 7,351 | $ | 6,904 | ||||
Additions—foreclosures | 2,770 | 3,889 | ||||||
Writedowns | 317 | 261 | ||||||
Sales | 5,817 | 3,181 | ||||||
Balance, end of year | $ | 3,987 | $ | 7,351 | ||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
DEPOSITS | |||||
Schedule of maturities of certificates of deposits | |||||
(Dollars in thousands) | |||||
2013 | $ | 109,239 | |||
2014 | 32,423 | ||||
2015 | 14,793 | ||||
2016 | 16,240 | ||||
2017 | 12,780 | ||||
Thereafter | 2 | ||||
$ | 185,477 | ||||
ADVANCES_FROM_FEDERAL_HOME_LOA1
ADVANCES FROM FEDERAL HOME LOAN BANK (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
ADVANCES FROM FEDERAL HOME LOAN BANK | ||||||||||||||
Schedule of advances from the FHLB | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2011 | |||||||||||||
(In thousands) | Amount | Rate | Amount | Rate | ||||||||||
Maturing | ||||||||||||||
2012 | — | — | 1,000 | 0.36 | % | |||||||||
2013 | — | — | 4,000 | 3.58 | % | |||||||||
2015 | 4,000 | 4.22 | % | 6,500 | 4.09 | % | ||||||||
After five years | 32,344 | 4.13 | % | 32,362 | 4.13 | % | ||||||||
$ | 36,344 | 4.14 | % | $ | 43,862 | 3.99 | % | |||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
INCOME TAXES | |||||||||||
Schedule of income tax expense (benefit) | |||||||||||
Year ended December 31 | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | 136 | |||||
State | 284 | 142 | 102 | ||||||||
284 | 142 | 238 | |||||||||
Deferred | |||||||||||
Federal | 1,336 | 1,315 | 327 | ||||||||
State | — | — | — | ||||||||
1,336 | 1,315 | 327 | |||||||||
Income tax expense (benefit) | $ | 1,620 | $ | 1,457 | $ | 565 | |||||
Schedule of reconciliation from expected federal tax expense to effective income tax expense (benefit) | |||||||||||
Year ended December 31 | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Expected federal income tax expense | $ | 1,900 | $ | 1,625 | $ | 822 | |||||
State income tax net of federal benefit | 187 | 112 | 67 | ||||||||
Tax exempt interest | (182 | ) | (29 | ) | (52 | ) | |||||
Increase in cash surrender value life insurance | (130 | ) | (59 | ) | (131 | ) | |||||
Valuation allowance | — | 35 | 97 | ||||||||
Other | (155 | ) | (227 | ) | (238 | ) | |||||
$ | 1,620 | $ | 1,457 | $ | 565 | ||||||
Summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | |||||||||||
December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | |||||||||
Assets: | |||||||||||
Allowance for loan losses | $ | 1,609 | $ | 1,598 | |||||||
Excess tax basis of deductible intangible assets | 121 | 121 | |||||||||
Net operating loss carry forward | 1,699 | 3,277 | |||||||||
Unrealized loss on available-for-sale securities | — | — | |||||||||
Compensation expense deferred for tax purposes | 767 | 736 | |||||||||
Fair value adjustment on interest rate swap agreement | 115 | 205 | |||||||||
Deferred loss on other-than-temporary-impairment charges | 257 | 471 | |||||||||
Interest on nonaccrual loans | 99 | 109 | |||||||||
Tax credit carry-forwards | 829 | 410 | |||||||||
Excess discount accretion on securities for tax purposes | — | 360 | |||||||||
Other | 401 | 232 | |||||||||
Total deferred tax asset | 5,897 | 7,519 | |||||||||
Valuation reserve | 132 | 132 | |||||||||
Total deferred tax asset net of valuation reserve | 5,765 | 7,387 | |||||||||
Liabilities: | |||||||||||
Tax depreciation in excess of book depreciation | 118 | 126 | |||||||||
Excess tax basis of non-deductible intangible assets | 11 | 42 | |||||||||
Excess financial reporting basis of assets acquired | 956 | 1,014 | |||||||||
Unrealized gain on available-for-sale securities | 1,266 | 705 | |||||||||
Other | — | 22 | |||||||||
Total deferred tax liabilities | 2,351 | 1,909 | |||||||||
Net deferred tax asset recognized | $ | 3,414 | $ | 5,478 | |||||||
COMMITMENTS_CONCENTRATIONS_OF_1
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2012 | |||||||||||||||
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES | |||||||||||||||
Schedule of interest rate swap agreement of the bank | |||||||||||||||
(Dollars in thousands) | Description | Cap/Swap | Contract | Expiration | Fair Value | ||||||||||
Notional Amount | Rate | Date | Date | 12/31/12 | |||||||||||
$10,000 | Interest Rate Swap | 3.66% fixed | 10/8/08 | 10/8/13 | $ | (338 | ) | ||||||||
OTHER_EXPENSES_Tables
OTHER EXPENSES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
OTHER EXPENSES | |||||||||||
Schedule of components of other non-interest expense | |||||||||||
Year ended December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Data processing | $ | 479 | $ | 472 | $ | 414 | |||||
Supplies | 138 | 178 | 150 | ||||||||
Telephone | 297 | 307 | 302 | ||||||||
Courier | 72 | 66 | 63 | ||||||||
Correspondent services | 168 | 193 | 97 | ||||||||
Insurance | 209 | 213 | 220 | ||||||||
Postage | 172 | 174 | 181 | ||||||||
Loss on limited partnership interest | 194 | 119 | 119 | ||||||||
Director fees | 312 | 319 | 264 | ||||||||
Professional fees | 745 | 1,040 | 1,068 | ||||||||
Other | 692 | 666 | 624 | ||||||||
$ | 3,478 | $ | 3,747 | $ | 3,502 | ||||||
STOCK_OPTIONS_AND_RESTRICTED_S1
STOCK OPTIONS AND RESTRICTED STOCK (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
STOCK OPTIONS AND RESTRICTED STOCK | ||||||||||||||
Schedule of stock option transactions | ||||||||||||||
Shares | Weighted | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic Value | ||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||
Contractual | ||||||||||||||
Term (Years) | ||||||||||||||
Outstanding December 31, 2010 | 188,441 | 13.28 | 1.7 | $ | — | |||||||||
Forfeited | (113,419 | ) | 9.3 | |||||||||||
Outstanding December 31, 2011 | 75,022 | 19.69 | 3.03 | $ | — | |||||||||
Forfeited | — | — | ||||||||||||
Outstanding, December 31, 2012 | 75,022 | 19.69 | 2.03 | $ | — | |||||||||
Schedule of stock options outstanding and exercisable | ||||||||||||||
Range of Exercise Prices | Number of Option | Weighted Average | Weighted | |||||||||||
Low/High | Shares | Remaining | Average Exercise | |||||||||||
Outstanding | Contractual | Price | ||||||||||||
and Exercisable | Life (Years) | |||||||||||||
$12.35 | 1,619 | 0.95 | $ | 12.35 | ||||||||||
$14.21 / $16.70 | 9,903 | 2.26 | 14.46 | |||||||||||
$19.00 / $22.50 | 63,500 | 2.02 | 20.22 | |||||||||||
75,022 | 2.03 | $ | 19.29 | |||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||
Earnings Per Common Share | |||||||||||||||||||||||||
Schedule of reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation | |||||||||||||||||||||||||
Six months | Three months | ||||||||||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||||||||||
(In thousands, except price per share) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Numerator (Net income available to common shareholders) | $ | 2,241 | $ | 1,390 | $ | 1,203 | $ | 760 | |||||||||||||||||
Denominator | Year ended December 31, | ||||||||||||||||||||||||
Weighted average common shares outstanding for: | (Amounts in thousands) | 2012 | 2011 | 2010 | |||||||||||||||||||||
Basic earnings per share | 5,274 | 3,319 | 5,292 | 3,329 | Numerator (Included in basic and diluted earnings per share) | $ | 3,292 | $ | 2,654 | $ | 1,190 | ||||||||||||||
Dilutive securities: | |||||||||||||||||||||||||
Warrants — Treasury stock method | 38 | 24 | 37 | 28 | Denominator | ||||||||||||||||||||
Diluted earnings per share | 5,312 | 3,343 | 5,329 | 3,357 | Weighted average common shares outstanding for: | ||||||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 9.15 | $ | 7.63 | $ | 9.05 | $ | 7.99 | Basic earnings common per share | 4,144 | 3,287 | 3,262 | |||||||||||||
Dilutive securities: | |||||||||||||||||||||||||
Warrants—Treasury stock method | 28 | — | — | ||||||||||||||||||||||
Diluted common share outstanding | 4,172 | 3,287 | 3,262 | ||||||||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 7.98 | $ | 6.34 | $ | 5.78 | |||||||||||||||||||
SHAREHOLDERS_EQUITY_CAPITAL_RE1
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS | ||||||||||||||||||||
Schedule of actual capital amounts and ratios as well as minimum amounts for each regulatory defined category for the bank and the company | ||||||||||||||||||||
Required to be | ||||||||||||||||||||
Categorized | ||||||||||||||||||||
Actual | Adequately | |||||||||||||||||||
Capitalized | Required to be | |||||||||||||||||||
Categorized | ||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Well Capitalized | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
First Community Corporation | ||||||||||||||||||||
Tier 1 Capital | $ | 63,381 | 17.33 | % | $ | 14,628 | 4 | % | N/A | N/A | ||||||||||
Total Risked Based Capital | 67,963 | 18.58 | % | 29,258 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage | 63,381 | 10.63 | % | 23,846 | 4 | % | N/A | N/A | ||||||||||||
First Community Bank | ||||||||||||||||||||
Tier 1 Capital | $ | 61,588 | 16.87 | % | $ | 14,605 | 4 | % | $ | 21,907 | 6 | % | ||||||||
Total Risked Based Capital | 66,158 | 18.12 | % | 29,209 | 8 | % | 36,512 | 10 | % | |||||||||||
Tier 1 Leverage | 61,588 | 10.34 | % | 23,824 | 4 | % | 29,779 | 5 | % | |||||||||||
December 31, 2011 | ||||||||||||||||||||
First Community Corporation | ||||||||||||||||||||
Tier 1 Capital | $ | 56,207 | 15.33 | % | $ | 14,668 | 4 | % | N/A | N/A | ||||||||||
Total Risked Based Capital | 63,256 | 17.25 | % | 29,335 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage | 56,207 | 9.4 | % | 23,909 | 4 | % | N/A | N/A | ||||||||||||
First Community Bank | ||||||||||||||||||||
Tier 1 Capital | $ | 55,377 | 15.12 | % | $ | 14,647 | 4 | % | $ | 21,971 | 6 | % | ||||||||
Total Risked Based Capital | 59,971 | 16.38 | % | 29,294 | 8 | % | 36,616 | 10 | % | |||||||||||
Tier 1 Leverage | 55,377 | 9.27 | % | 23,898 | 4 | % | 29,873 | 5 | % |
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2012 | |||||||||||
PARENT COMPANY FINANCIAL INFORMATION | |||||||||||
Schedule of balance sheets for First Community Corporation (Parent Only) | |||||||||||
At December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | |||||||||
Assets: | |||||||||||
Cash on deposit | $ | 1,417 | $ | 3,547 | |||||||
Securities purchased under agreement to resell | 128 | 128 | |||||||||
Investment securities available-for-sale | 429 | 12 | |||||||||
Investment in bank subsidiary | 67,055 | 61,713 | |||||||||
Other | 767 | 608 | |||||||||
Total assets | $ | 69,796 | $ | 66,008 | |||||||
Liabilities: | |||||||||||
Subordinated notes payable | $ | — | $ | 2,449 | |||||||
Junior subordinated debentures | 15,464 | 15,464 | |||||||||
Other | 149 | 199 | |||||||||
Total liabilities | 15,613 | 18,112 | |||||||||
Shareholders' equity | 54,183 | 47,896 | |||||||||
Total liabilities and shareholders' equity | $ | 69,796 | $ | 66,008 | |||||||
Schedule of statements of operations for First Community Corporation (Parent Only) | |||||||||||
Year ended December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Income: | |||||||||||
Interest and dividend income | $ | 1 | $ | 9 | $ | 52 | |||||
Equity in undistributed earnings of subsidiary | 4,313 | 3,782 | 2,270 | ||||||||
Dividend income from bank subsidiary | 320 | — | — | ||||||||
Total income | 4,634 | 3,791 | 2,322 | ||||||||
Expenses: | |||||||||||
Interest expense | 658 | 446 | 443 | ||||||||
Other | 301 | 239 | 177 | ||||||||
Total expense | 959 | 685 | 620 | ||||||||
Income before taxes | 3,675 | 3,106 | 1,702 | ||||||||
Income tax benefit | (293 | ) | (218 | ) | (152 | ) | |||||
Net income | $ | 3,968 | $ | 3,324 | $ | 1,854 | |||||
Schedule of cash flows for First Community Corporation (Parent Only) | |||||||||||
Year ended December 31, | |||||||||||
(Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 3,968 | $ | 3,324 | $ | 1,854 | |||||
Adjustments to reconcile net income to net cash used by operating activities | |||||||||||
Equity in undistributed earnings of subsidiary | (4,313 | ) | (3,782 | ) | (2,270 | ) | |||||
Other-net | (90 | ) | 232 | 72 | |||||||
Net cash used by operating activities | (435 | ) | (226 | ) | (344 | ) | |||||
Cash flows from investing activities: | |||||||||||
Purchase of available-for sale-securities | (417 | ) | — | — | |||||||
Maturity of available-for-sale securities | — | 1,250 | — | ||||||||
Other-net | — | (76 | ) | (52 | ) | ||||||
Net cash provided (used) by investing activities | (417 | ) | 1,174 | (52 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of subordinated note payable | — | 2,500 | — | ||||||||
Repayment of subordinated note payable | (2,500 | ) | — | — | |||||||
Dividends paid: Common stock | (605 | ) | (525 | ) | (522 | ) | |||||
Preferred stock | (475 | ) | (670 | ) | (664 | ) | |||||
Proceeds from issuance of common stock | 13,885 | 182 | 101 | ||||||||
Redemption of preferred stock | (11,073 | ) | — | — | |||||||
Redemption of stock warrants | (510 | ) | — | — | |||||||
Net cash provided (used) in financing activities | (1,278 | ) | 1,487 | (1,085 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (2,130 | ) | 2,435 | (1,481 | ) | ||||||
Cash and cash equivalents, beginning of year | 3,547 | 1,112 | 2,593 | ||||||||
Cash and cash equivalents, end of year | $ | 1,417 | $ | 3,547 | $ | 1,112 | |||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
Schedule of quarterly financial data | The following provides quarterly financial data for 2012 and 2011 (dollars in thousands, except per share amounts). | |||||||||||||
2012 | Fourth | Third | Second | First | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Interest income | $ | 5,468 | $ | 5,650 | $ | 5,840 | $ | 6,044 | ||||||
Net interest income | 4,285 | 4,329 | 4,451 | 4,509 | ||||||||||
Provision for loan losses | 80 | 115 | 71 | 230 | ||||||||||
Gain (loss) on sale of securities | 88 | (35 | ) | (38 | ) | 11 | ||||||||
Other-than-temporary-impairment | — | — | — | (200 | ) | |||||||||
Income before income taxes | 1,338 | 1,793 | 1,327 | 1,130 | ||||||||||
Net income | 1,021 | 1,220 | 928 | 799 | ||||||||||
Preferred stock dividends | — | 339 | 168 | 169 | ||||||||||
Net income available to common shareholders | $ | 1,021 | $ | 881 | $ | 760 | $ | 630 | ||||||
Net income per share, basic | $ | 0.2 | $ | 0.19 | $ | 0.23 | $ | 0.19 | ||||||
Net income per share, diluted | $ | 0.19 | $ | 0.19 | $ | 0.23 | $ | 0.19 | ||||||
2011 | Fourth | Third | Second | First | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Interest income | $ | 6,238 | $ | 6,382 | $ | 6,466 | $ | 6,440 | ||||||
Net interest income | 4,616 | 4,628 | 4,619 | 4,454 | ||||||||||
Provision for loan losses | 310 | 360 | 390 | 360 | ||||||||||
Gain on sale of securities | 301 | 133 | 7 | 134 | ||||||||||
Other-than-temporary-impairment | (243 | ) | (50 | ) | — | (4 | ) | |||||||
Income before income taxes | 1,565 | 1,398 | 1,020 | 798 | ||||||||||
Net income | 1,071 | 957 | 726 | 570 | ||||||||||
Preferred stock dividends | 168 | 167 | 168 | 167 | ||||||||||
Net income available to common shareholders | $ | 903 | $ | 790 | $ | 558 | $ | 403 | ||||||
Net income per share, basic | $ | 0.27 | $ | 0.24 | $ | 0.17 | $ | 0.12 | ||||||
Net income per share, diluted | $ | 0.27 | $ | 0.24 | $ | 0.17 | $ | 0.12 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2012 | |
Cash and Cash Equivalents | |
Period for which federal funds are generally sold | 1 day |
Mortgage Loans Held for Sale | |
Period within which the entity delivers to and receives funding from the investor | 30 days |
Loans and Allowance for Loan Losses | |
Threshold period past due for discontinuation of accrual of interest on impaired loans | 90 days |
Buildings | Maximum | |
Property and equipment | |
Estimated useful lives | 39 years |
Furniture, fixtures and equipment | Maximum | |
Property and equipment | |
Estimated useful lives | 10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2012 | |
item | |
Goodwill and other intangible assets | |
Period over which intangibles are being amortized | 7 years |
Segment Information | |
Number of operating segments | 1 |
Risk and Uncertainties | |
Number of significant types of risks | 2 |
Number of main components of economic risk | 3 |
BUSINESS_COMBINATIONS_Details
BUSINESS COMBINATIONS (Details) (Palmetto South, USD $) | 12 Months Ended | |
Dec. 31, 2012 | Jul. 31, 2011 | |
Palmetto South | ||
BUSINESS COMBINATIONS | ||
Earn out period over which acquisition price payable | 3 years | |
Contingent consideration based upon annual net income, low end of range | $0 | |
Contingent consideration based upon annual net income, high end of range | 1,200,000 | |
Contingent liability | 600,000 | |
Purchase price of operating assets | $22,000 |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Investment Securities | |||||||
Amortized Cost | $225,033,000 | $225,033,000 | $199,927,000 | $199,072,000 | |||
Gross Unrealized Gains | 2,314,000 | 2,314,000 | 4,352,000 | 4,438,000 | |||
Gross Unrealized Losses | 3,701,000 | 3,701,000 | 834,000 | 2,478,000 | |||
Fair Value | 223,646,000 | 223,646,000 | 203,445,000 | 201,032,000 | |||
FHLB Stock | 2,300,000 | 2,300,000 | 2,500,000 | 1,800,000 | |||
Federal reserve stock | 3,800,000 | ||||||
Proceeds from sale of investment securities available-for-sale | 1,700,000 | 44,800,000 | 3,515,000 | 49,075,000 | 59,012,000 | 56,003,000 | 85,456,000 |
Gross realized gains | 133,000 | 1,900,000 | 148,400 | 2,000,000 | 2,200,000 | 2,600,000 | 2,500,000 |
Gross realized losses | 0 | 1,900,000 | 0 | 2,100,000 | 2,100,000 | 2,000,000 | 1,700,000 |
Tax provision applicable to net realized gain | 9,000 | 201,000 | 289,000 | ||||
Government sponsored enterprises | |||||||
Investment Securities | |||||||
Amortized Cost | 1,518,000 | 1,518,000 | 1,522,000 | 31,000 | |||
Gross Unrealized Gains | 1,000 | 1,000 | 12,000 | 3,000 | |||
Gross Unrealized Losses | 57,000 | 57,000 | |||||
Fair Value | 1,462,000 | 1,462,000 | 1,534,000 | 34,000 | |||
Mortgage-backed securities | |||||||
Investment Securities | |||||||
Amortized Cost | 122,527,000 | 122,527,000 | 110,425,000 | 141,103,000 | |||
Gross Unrealized Gains | 1,492,000 | 1,492,000 | 2,343,000 | 2,876,000 | |||
Gross Unrealized Losses | 1,370,000 | 1,370,000 | 624,000 | 2,348,000 | |||
Fair Value | 122,649,000 | 122,649,000 | 112,144,000 | 141,631,000 | |||
Small Business Administration pools | |||||||
Investment Securities | |||||||
Amortized Cost | 56,886,000 | 56,886,000 | 54,148,000 | 35,889,000 | |||
Gross Unrealized Gains | 711,000 | 711,000 | 1,008,000 | 634,000 | |||
Gross Unrealized Losses | 293,000 | 293,000 | 163,000 | 44,000 | |||
Fair Value | 57,304,000 | 57,304,000 | 54,993,000 | 36,479,000 | |||
State and local government | |||||||
Investment Securities | |||||||
Amortized Cost | 41,753,000 | 41,753,000 | 31,483,000 | 19,617,000 | |||
Gross Unrealized Gains | 108,000 | 108,000 | 936,000 | 871,000 | |||
Gross Unrealized Losses | 1,939,000 | 1,939,000 | 46,000 | ||||
Fair Value | 39,922,000 | 39,922,000 | 32,373,000 | 20,488,000 | |||
Corporate and other securities | |||||||
Investment Securities | |||||||
Amortized Cost | 2,349,000 | 2,349,000 | 2,349,000 | 2,432,000 | |||
Gross Unrealized Gains | 2,000 | 2,000 | 53,000 | 54,000 | |||
Gross Unrealized Losses | 42,000 | 42,000 | 1,000 | 86,000 | |||
Fair Value | 2,309,000 | 2,309,000 | 2,401,000 | 2,400,000 | |||
Corporate bonds | |||||||
Investment Securities | |||||||
Fair Value | 1,000,000 | 1,000,000 | 1,000,000 | 1,400,000 | |||
Mutual funds | |||||||
Investment Securities | |||||||
Fair Value | 829,900 | 829,900 | 884,500 | 904,900 | |||
Foreign debt | |||||||
Investment Securities | |||||||
Fair Value | 59,500 | 59,500 | 59,700 | 59,600 | |||
Federal Home Loan Mortgage Corporation preferred stock | |||||||
Investment Securities | |||||||
Fair Value | 30,000 | 20,900 | |||||
Corporate preferred stock | |||||||
Investment Securities | |||||||
Fair Value | $416,800 | $416,800 | $416,700 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Available-for-sale, Amortized Cost | |||
Due in one year or less | $26,725,000 | ||
Due after one year through five years | 83,068,000 | ||
Due after five years through ten years | 30,565,000 | ||
Due after ten years | 59,569,000 | ||
Total | 225,033,000 | 199,927,000 | |
Available-for-sale, Fair Value | |||
Due in one year or less | 26,722,000 | ||
Due after one year through five years | 84,630,000 | ||
Due after five years through ten years | 31,161,000 | ||
Due after ten years | 60,932,000 | ||
Total | 223,646,000 | 203,445,000 | |
Securities pledged to secure FHLB Advances, public deposits, demand notes due the Treasury and securities sold under agreements to repurchase | |||
Amortized cost | 29,000,000 | 35,100,000 | |
Fair value | $30,300,000 | $36,600,000 |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Government Sponsored Enterprise mortgage-backed securities | Government Sponsored Enterprise mortgage-backed securities | Government Sponsored Enterprise mortgage-backed securities | Government Sponsored Enterprise mortgage-backed securities | Government Sponsored Enterprise mortgage-backed securities | Small Business Administration pools | Small Business Administration pools | Small Business Administration pools | Corporate and other securities | Corporate and other securities | Corporate and other securities | Corporate bonds | Corporate bonds | Corporate bonds | Corporate bonds | Corporate bonds | Preferred term security | Preferred term security | Municipal bonds | SLM Corporation bond | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | Non-agency mortgage-backed /CMO securities | State and local government | State and local government | State and local government | ||||||||
First Community Bank | First Community Bank | Above Investment Grade | Above Investment Grade | item | Below Investment Grade | item | item | item | item | item | First Community Bank | First Community Bank | ||||||||||||||||||||||||||||
item | item | |||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||
Less than 12 months | $106,876,000 | $106,876,000 | $36,274,000 | $32,735,000 | $53,766,000 | $22,662,000 | $25,113,000 | $21,213,000 | $11,013,000 | $6,108,000 | $871,000 | $940,000 | $64,000 | $64,000 | $574,000 | $29,518,000 | $2,599,000 | |||||||||||||||||||||||
12 months or more | 5,033,000 | 5,033,000 | 9,443,000 | 19,271,000 | 3,118,000 | 4,583,000 | 3,269,000 | 882,000 | 2,447,000 | 2,203,000 | 50,000 | 50,000 | 524,000 | 983,000 | 983,000 | 2,363,000 | 13,275,000 | |||||||||||||||||||||||
Total | 111,909,000 | 111,909,000 | 45,717,000 | 52,006,000 | 56,884,000 | 27,245,000 | 28,382,000 | 22,095,000 | 13,460,000 | 8,311,000 | 921,000 | 50,000 | 1,464,000 | 1,047,000 | 1,047,000 | 2,363,000 | 13,849,000 | 29,518,000 | 2,599,000 | |||||||||||||||||||||
Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 3,657,000 | 3,657,000 | 437,000 | 264,000 | 1,330,000 | 233,000 | 163,000 | 289,000 | 158,000 | 38,000 | 41,000 | 60,000 | 1,000 | 1,000 | 3,000 | 1,939,000 | 46,000 | |||||||||||||||||||||||
12 months or more | 44,000 | 44,000 | 397,000 | 2,214,000 | 35,000 | 13,000 | 24,000 | 4,000 | 5,000 | 6,000 | 1,000 | 1,000 | 26,000 | 4,000 | 4,000 | 378,000 | 2,158,000 | |||||||||||||||||||||||
Total | 3,701,000 | 3,701,000 | 834,000 | 2,478,000 | 1,365,000 | 246,000 | 187,000 | 293,000 | 163,000 | 44,000 | 42,000 | 1,000 | 86,000 | 5,000 | 5,000 | 378,000 | 2,161,000 | 1,939,000 | 46,000 | |||||||||||||||||||||
Amortized cost of securities | 223,646,000 | 223,646,000 | 203,445,000 | 201,032,000 | 119,900,000 | 107,300,000 | 2,700,000 | 3,100,000 | ||||||||||||||||||||||||||||||||
Fair value of securities | 223,646,000 | 223,646,000 | 203,445,000 | 201,032,000 | 120,000,000 | 109,400,000 | 57,304,000 | 54,993,000 | 36,479,000 | 2,309,000 | 2,401,000 | 2,400,000 | 1,000,000 | 1,000,000 | 1,400,000 | 2,700,000 | 2,700,000 | 39,922,000 | 32,373,000 | 20,488,000 | ||||||||||||||||||||
Number of securities with OTTI | 2 | 2 | 3 | 9 | 5 | |||||||||||||||||||||||||||||||||||
Fair value of securities with OTTI | 2,500,000 | 2,500,000 | ||||||||||||||||||||||||||||||||||||||
Impairment charges recognized in earnings, credit component | 200,000 | 200,000 | 297,000 | 1,452,000 | 199,800 | 199,800 | 293,000 | 477,000 | 491,000 | |||||||||||||||||||||||||||||||
Estimated credit losses | 415,000 | 415,000 | 262,000 | 4,310,000 | 4,000 | 0 | 0 | 0 | 199,800 | 199,800 | ||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | 215,000 | 215,000 | -35,000 | 2,858,000 | -35,000 | 2,900,000 | 1,700,000 | |||||||||||||||||||||||||||||||||
Number of investments rated above investment grade | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
OTTI charges | 415,000 | 415,000 | 262,000 | 4,310,000 | 4,000 | 0 | 0 | 0 | 199,800 | 199,800 | ||||||||||||||||||||||||||||||
Gain on sale of securities | 133,000 | 1,900,000 | 148,400 | 2,000,000 | 2,200,000 | 2,600,000 | 2,500,000 | 488,000 | ||||||||||||||||||||||||||||||||
Losses recorded, excluding OTTI | 455,000 | 73,000 | ||||||||||||||||||||||||||||||||||||||
Number of securities sold | 2 | |||||||||||||||||||||||||||||||||||||||
Book value of securities sold | $1,000,000 |
INVESTMENT_SECURITIES_Details_2
INVESTMENT SECURITIES (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 |
Held-to-maturity mortgage-backed securities | |||||||||
Total OTTI charge realized and unrealized | $108 | ||||||||
Net impairment losses recognized in earnings (credit component) | 108 | ||||||||
Available-for-sale securities | |||||||||
Total OTTI charge realized and unrealized | 415 | 415 | 262 | 4,310 | |||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | 215 | -35 | 2,858 | |||||
Net impairment losses recognized in earnings (credit component) | 200 | 200 | 297 | 1,452 | |||||
Total | |||||||||
Total OTTI charge realized and unrealized | 415 | 262 | 4,418 | ||||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | -35 | 2,858 | ||||||
Net impairment losses recognized in earnings (credit component) | $200 | $243 | $50 | $4 | $200 | $200 | $297 | $1,560 | $13,500 |
INVESTMENT_SECURITIES_Details_3
INVESTMENT SECURITIES (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 |
Non-agency MBSs | Non-agency MBSs | Non-agency MBSs | Available-for-sale | Available-for-sale | Available-for-sale | Available-for-sale | Available-for-sale | Held-to-maturity | ||||||||||
item | Balance of the portfolio | Balance of the portfolio | ||||||||||||||||
Analysis of amounts relating to credit losses on debt securities recognized in earnings | ||||||||||||||||||
Balance at beginning of period | $271 | $930 | $930 | $2,143 | $545 | $132 | ||||||||||||
Other-than-temporary-impairment not previously recognized | 173 | 173 | 50 | 291 | 98 | |||||||||||||
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | 27 | 27 | 247 | 1,161 | 10 | |||||||||||||
Realized losses during the period | -46 | -136 | -180 | -1,510 | -94 | |||||||||||||
Other-than-temporary impairment previously recognized in securities sold | -679 | -679 | ||||||||||||||||
Transfer to available-for-sale | 240 | -240 | ||||||||||||||||
Balance related to credit losses on debt securities at end of period | 225 | 315 | 271 | 930 | 2,143 | |||||||||||||
Number of securities with an OTTI wherein loss related to credit was recognized in earnings | 2 | |||||||||||||||||
Credit losses recognized in earnings | $200 | $243 | $50 | $4 | $200 | $200 | $297 | $1,560 | $13,500 | $200 | ||||||||
Average prepayment rate (as a percent) | 16.70% | 13.70% | ||||||||||||||||
Default rate (as a percent) | 7.60% | 8.00% | ||||||||||||||||
Average severity (as a percent) | 50.90% | 50.40% |
INVESTMENT_SECURITIES_Details_4
INVESTMENT SECURITIES (Details 6) (Non-agency mortgage-backed /CMO securities, USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | item | item |
Investment Securities | ||
Number of CUSIPs | 13 | 13 |
Par Value | $2,988 | $3,443 |
Amortized Cost | 2,669 | 3,088 |
Fair Value | 2,703 | 2,715 |
AA | ||
Investment Securities | ||
Number of CUSIPs | 2 | 2 |
Par Value | 198 | 264 |
Amortized Cost | 198 | 264 |
Fair Value | 201 | 268 |
A1 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 324 | 380 |
Amortized Cost | 324 | 380 |
Fair Value | 343 | 374 |
A3 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 281 | 320 |
Amortized Cost | 281 | 320 |
Fair Value | 283 | 318 |
A | ||
Investment Securities | ||
Number of CUSIPs | 2 | |
Par Value | 72 | |
Amortized Cost | 72 | |
Fair Value | 71 | |
BBB | ||
Investment Securities | ||
Number of CUSIPs | 3 | 1 |
Par Value | 240 | 231 |
Amortized Cost | 240 | 231 |
Fair Value | 237 | 225 |
Baa1 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 65 | 71 |
Amortized Cost | 65 | 71 |
Fair Value | 64 | 72 |
Baa2 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 33 | 97 |
Amortized Cost | 33 | 97 |
Fair Value | 33 | 96 |
Below Investment Grade | ||
Investment Securities | ||
Number of CUSIPs | 4 | 4 |
Par Value | 1,847 | 2,008 |
Amortized Cost | 1,528 | 1,653 |
Fair Value | $1,542 | $1,291 |
LOANS_Details
LOANS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Loans | ||||||||||||||
Loans | $341,089 | $332,111 | $324,913 | $324,311 | $341,089 | $324,913 | $332,111 | $324,311 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 4,534 | 4,742 | 4,745 | 4,699 | 4,911 | 4,621 | 4,699 | 4,699 | 4,911 | 4,854 | ||||
Provision for loan losses | 100 | 80 | 115 | 71 | 230 | 310 | 360 | 390 | 360 | 250 | 301 | 496 | 1,420 | 1,878 |
Charged off loans | -209 | -95 | -523 | -307 | -742 | -1,696 | -1,948 | |||||||
Recoveries | 14 | 21 | 91 | 49 | 168 | 64 | 127 | |||||||
Balance at end of the period | 4,439 | 4,621 | 4,742 | 4,745 | 4,699 | 4,439 | 4,742 | 4,621 | 4,699 | 4,911 | ||||
Commercial, financial and agricultural | ||||||||||||||
Loans | ||||||||||||||
Loans | 20,908 | 20,924 | 20,608 | 20,908 | 20,924 | 20,608 | ||||||||
Real estate: Construction | ||||||||||||||
Loans | ||||||||||||||
Loans | 15,232 | 13,052 | 12,302 | 11,767 | 15,232 | 12,302 | 13,052 | 11,767 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 21 | 905 | 905 | |||||||||||
Provision for loan losses | 4 | 25 | -905 | |||||||||||
Balance at end of the period | 25 | 25 | ||||||||||||
Real estate: Mortgage-residential | ||||||||||||||
Loans | ||||||||||||||
Loans | 38,363 | 38,892 | 38,779 | 38,337 | 38,363 | 38,779 | 38,892 | 38,337 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 199 | 500 | 514 | 465 | 235 | 514 | 514 | 465 | ||||||
Provision for loan losses | 151 | 114 | 58 | 106 | -253 | 230 | ||||||||
Charged off loans | -32 | -17 | -36 | -30 | -112 | -186 | ||||||||
Recoveries | 1 | 2 | 62 | 9 | 86 | 5 | ||||||||
Balance at end of the period | 319 | 235 | 599 | 514 | 319 | 599 | 235 | 514 | ||||||
Real estate: Mortgage-commercial | ||||||||||||||
Loans | ||||||||||||||
Loans | 233,769 | 226,575 | 221,880 | 220,288 | 233,769 | 221,880 | 226,575 | 220,288 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 1,075 | 1,430 | 1,475 | 1,404 | 1,322 | 1,475 | 1,475 | 1,404 | ||||||
Provision for loan losses | 169 | -117 | 157 | 16 | 140 | 932 | ||||||||
Charged off loans | -162 | -397 | -178 | -293 | -861 | |||||||||
Balance at end of the period | 1,082 | 1,322 | 1,313 | 1,475 | 1,082 | 1,313 | 1,322 | 1,475 | ||||||
Consumer: Home equity | ||||||||||||||
Loans | ||||||||||||||
Loans | 25,437 | 27,173 | 26,945 | 27,976 | 25,437 | 26,945 | 27,173 | 27,976 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 236 | 566 | 521 | 325 | 400 | 521 | 521 | 325 | ||||||
Provision for loan losses | -9 | -121 | -131 | -78 | -124 | 476 | ||||||||
Charged off loans | -2 | -44 | -285 | |||||||||||
Recoveries | 1 | 1 | 2 | 3 | 5 | |||||||||
Balance at end of the period | 226 | 400 | 445 | 521 | 226 | 445 | 400 | 521 | ||||||
Consumer: Other | ||||||||||||||
Loans | ||||||||||||||
Loans | 7,380 | 5,495 | 5,266 | 5,335 | 7,380 | 5,266 | 5,495 | 5,335 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 78 | 53 | 57 | 88 | 17 | 57 | 57 | 88 | ||||||
Provision for loan losses | 28 | 2 | 110 | 12 | 2 | 45 | ||||||||
Charged off loans | -13 | -16 | -39 | -37 | -79 | -99 | ||||||||
Recoveries | 3 | 6 | 8 | 13 | 37 | 23 | ||||||||
Balance at end of the period | $96 | $17 | $45 | $57 | $96 | $45 | $17 | $57 |
LOANS_Details_2
LOANS (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | $4,534,000 | $4,742,000 | $4,745,000 | $4,699,000 | $4,911,000 | $4,621,000 | $4,699,000 | $4,699,000 | $4,911,000 | $4,854,000 | ||||
Charge-offs | 209,000 | 95,000 | 523,000 | 307,000 | 742,000 | 1,696,000 | 1,948,000 | |||||||
Recoveries | 14,000 | 21,000 | 91,000 | 49,000 | 168,000 | 64,000 | 127,000 | |||||||
Provisions | 100,000 | 80,000 | 115,000 | 71,000 | 230,000 | 310,000 | 360,000 | 390,000 | 360,000 | 250,000 | 301,000 | 496,000 | 1,420,000 | 1,878,000 |
Balance at end of the period | 4,439,000 | 4,621,000 | 4,742,000 | 4,745,000 | 4,699,000 | 4,439,000 | 4,742,000 | 4,621,000 | 4,699,000 | 4,911,000 | ||||
Allowance for loan losses | ||||||||||||||
Individually evaluated for impairment | 2,000 | 2,000 | ||||||||||||
Collectively evaluated for impairment | 4,434,000 | 4,621,000 | 4,697,000 | 4,434,000 | 4,621,000 | 4,697,000 | ||||||||
Loans receivable: | ||||||||||||||
Ending balance-total | 341,089,000 | 332,111,000 | 324,913,000 | 324,311,000 | 341,089,000 | 324,913,000 | 332,111,000 | 324,311,000 | ||||||
Individually evaluated for impairment | 6,571,000 | 6,176,000 | 9,283,000 | 9,353,000 | 6,571,000 | 9,283,000 | 6,176,000 | 9,353,000 | ||||||
Collectively evaluated for impairment | 334,518,000 | 325,935,000 | 315,630,000 | 314,958,000 | 334,518,000 | 315,630,000 | 325,935,000 | 314,958,000 | ||||||
Loans outstanding and available lines of credit to bank directors, executive officers and their related business interests | 9,700,000 | 10,900,000 | 11,300,000 | 11,300,000 | 9,700,000 | 11,300,000 | 10,900,000 | 11,300,000 | ||||||
Loans to bank directors, executive officers and their related business interests repaid during the period | 2,100,000 | 208,000 | 855,000 | 577,000 | ||||||||||
Loans made to bank directors, executive officers and their related business interests during the period | 500,000 | 77,000 | 230,000 | 1,200,000 | ||||||||||
Total loans considered impaired | 6,571,000 | 6,176,000 | 9,283,000 | 9,353,000 | 6,571,000 | 9,283,000 | 6,176,000 | 9,353,000 | 9,587,000 | |||||
Loans considered impaired for which there is a related allowance for loan loss: | ||||||||||||||
Outstanding loan balance | 57,000 | 148,000 | 57,000 | 148,000 | 378,000 | |||||||||
Related allowance | 5,000 | 2,000 | 5,000 | 2,000 | 96,000 | |||||||||
Loans considered impaired and previously written down to fair value | 6,514,000 | 6,176,000 | 9,205,000 | 6,514,000 | 6,176,000 | 9,205,000 | 9,209,000 | |||||||
Average impaired loans | 7,847,000 | 12,446,000 | 7,719,000 | 10,316,000 | 6,704,000 | 9,926,000 | 10,576,000 | |||||||
Amount of interest earned during period of impairment | 30,000 | 70,000 | 127,000 | 144,000 | 179,000 | 397,000 | 323,000 | |||||||
Commercial | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 409,000 | 307,000 | 331,000 | 681,000 | 338,000 | 331,000 | 331,000 | 681,000 | ||||||
Charge-offs | 62,000 | 7,000 | 62,000 | 258,000 | 265,000 | |||||||||
Recoveries | 9,000 | 13,000 | 20,000 | 25,000 | 42,000 | 31,000 | ||||||||
Provisions | -154,000 | -9,000 | -87,000 | -45,000 | 223,000 | -116,000 | ||||||||
Balance at end of the period | 264,000 | 338,000 | 249,000 | 331,000 | 264,000 | 249,000 | 338,000 | 331,000 | ||||||
Allowance for loan losses | ||||||||||||||
Individually evaluated for impairment | 1,000 | 1,000 | ||||||||||||
Collectively evaluated for impairment | 264,000 | 338,000 | 249,000 | 330,000 | 264,000 | 249,000 | 338,000 | 330,000 | ||||||
Loans receivable: | ||||||||||||||
Ending balance-total | 20,908,000 | 20,924,000 | 19,741,000 | 20,608,000 | 20,908,000 | 19,741,000 | 20,924,000 | 20,608,000 | ||||||
Individually evaluated for impairment | 84,000 | 37,000 | 24,000 | 45,000 | 84,000 | 24,000 | 37,000 | 45,000 | ||||||
Collectively evaluated for impairment | 20,824,000 | 20,887,000 | 19,717,000 | 20,563,000 | 20,824,000 | 19,717,000 | 20,887,000 | 20,563,000 | ||||||
Total loans considered impaired | 84,000 | 37,000 | 24,000 | 45,000 | 84,000 | 24,000 | 37,000 | 45,000 | ||||||
Loans considered impaired for which there is a related allowance for loan loss: | ||||||||||||||
Outstanding loan balance | 33,000 | 33,000 | ||||||||||||
Related allowance | 1,000 | 1,000 | ||||||||||||
Loans considered impaired and previously written down to fair value | 84,000 | 37,000 | 24,000 | 12,000 | 84,000 | 24,000 | 37,000 | 12,000 | ||||||
Average impaired loans | 264,000 | 93,000 | 149,000 | 95,000 | 53,000 | 57,000 | ||||||||
Amount of interest earned during period of impairment | 1,000 | 8,000 | 1,000 | 2,000 | ||||||||||
Real estate: Construction | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 21,000 | 905,000 | 905,000 | |||||||||||
Provisions | 4,000 | 25,000 | -905,000 | |||||||||||
Balance at end of the period | 25,000 | 25,000 | ||||||||||||
Allowance for loan losses | ||||||||||||||
Collectively evaluated for impairment | 25,000 | 25,000 | ||||||||||||
Loans receivable: | ||||||||||||||
Ending balance-total | 15,232,000 | 13,052,000 | 12,302,000 | 11,767,000 | 15,232,000 | 12,302,000 | 13,052,000 | 11,767,000 | ||||||
Collectively evaluated for impairment | 15,232,000 | 13,052,000 | 12,302,000 | 11,767,000 | 15,232,000 | 12,302,000 | 13,052,000 | 11,767,000 | ||||||
Real estate: Mortgage-residential | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 199,000 | 500,000 | 514,000 | 465,000 | 235,000 | 514,000 | 514,000 | 465,000 | ||||||
Charge-offs | 32,000 | 17,000 | 36,000 | 30,000 | 112,000 | 186,000 | ||||||||
Recoveries | 1,000 | 2,000 | 62,000 | 9,000 | 86,000 | 5,000 | ||||||||
Provisions | 151,000 | 114,000 | 58,000 | 106,000 | -253,000 | 230,000 | ||||||||
Balance at end of the period | 319,000 | 235,000 | 599,000 | 514,000 | 319,000 | 599,000 | 235,000 | 514,000 | ||||||
Allowance for loan losses | ||||||||||||||
Collectively evaluated for impairment | 314,000 | 235,000 | 599,000 | 514,000 | 314,000 | 599,000 | 235,000 | 514,000 | ||||||
Loans receivable: | ||||||||||||||
Ending balance-total | 38,363,000 | 38,892,000 | 38,779,000 | 38,337,000 | 38,363,000 | 38,779,000 | 38,892,000 | 38,337,000 | ||||||
Individually evaluated for impairment | 721,000 | 357,000 | 581,000 | 622,000 | 721,000 | 581,000 | 357,000 | 622,000 | ||||||
Collectively evaluated for impairment | 37,642,000 | 38,535,000 | 38,198,000 | 37,715,000 | 37,642,000 | 38,198,000 | 38,535,000 | 37,715,000 | ||||||
Total loans considered impaired | 721,000 | 357,000 | 581,000 | 622,000 | 721,000 | 581,000 | 357,000 | 622,000 | ||||||
Loans considered impaired for which there is a related allowance for loan loss: | ||||||||||||||
Outstanding loan balance | 57,000 | 57,000 | ||||||||||||
Related allowance | 5,000 | 5,000 | ||||||||||||
Loans considered impaired and previously written down to fair value | 664,000 | 357,000 | 581,000 | 622,000 | 664,000 | 581,000 | 357,000 | 622,000 | ||||||
Average impaired loans | 802,000 | 637,000 | 805,000 | 645,000 | 442,000 | 656,000 | ||||||||
Amount of interest earned during period of impairment | 14,000 | 1,000 | 22,000 | 1,000 | 1,000 | 4,000 | ||||||||
Real estate: Mortgage-commercial | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 1,075,000 | 1,430,000 | 1,475,000 | 1,404,000 | 1,322,000 | 1,475,000 | 1,475,000 | 1,404,000 | ||||||
Charge-offs | 162,000 | 397,000 | 178,000 | 293,000 | 861,000 | |||||||||
Provisions | 169,000 | -117,000 | 157,000 | 16,000 | 140,000 | 932,000 | ||||||||
Balance at end of the period | 1,082,000 | 1,322,000 | 1,313,000 | 1,475,000 | 1,082,000 | 1,313,000 | 1,322,000 | 1,475,000 | ||||||
Allowance for loan losses | ||||||||||||||
Individually evaluated for impairment | 1,000 | 1,000 | ||||||||||||
Collectively evaluated for impairment | 1,082,000 | 1,322,000 | 1,313,000 | 1,474,000 | 1,082,000 | 1,313,000 | 1,322,000 | 1,474,000 | ||||||
Loans receivable: | ||||||||||||||
Ending balance-total | 233,769,000 | 226,575,000 | 221,880,000 | 220,288,000 | 233,769,000 | 221,880,000 | 226,575,000 | 220,288,000 | ||||||
Individually evaluated for impairment | 5,759,000 | 5,772,000 | 8,650,000 | 8,667,000 | 5,759,000 | 8,650,000 | 5,772,000 | 8,667,000 | ||||||
Collectively evaluated for impairment | 228,010,000 | 220,803,000 | 213,230,000 | 211,621,000 | 228,010,000 | 213,230,000 | 220,803,000 | 211,621,000 | ||||||
Total loans considered impaired | 5,759,000 | 5,772,000 | 8,650,000 | 8,667,000 | 5,759,000 | 8,650,000 | 5,772,000 | 8,667,000 | ||||||
Loans considered impaired for which there is a related allowance for loan loss: | ||||||||||||||
Outstanding loan balance | 115,000 | 115,000 | ||||||||||||
Related allowance | 1,000 | 1,000 | ||||||||||||
Loans considered impaired and previously written down to fair value | 5,759,000 | 5,772,000 | 8,650,000 | 8,552,000 | 5,759,000 | 8,650,000 | 5,772,000 | 8,552,000 | ||||||
Average impaired loans | 6,764,000 | 11,679,000 | 6,747,000 | 9,535,000 | 6,188,000 | 9,183,000 | ||||||||
Amount of interest earned during period of impairment | 16,000 | 68,000 | 97,000 | 142,000 | 178,000 | 390,000 | ||||||||
Consumer: Home equity | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 236,000 | 566,000 | 521,000 | 325,000 | 400,000 | 521,000 | 521,000 | 325,000 | ||||||
Charge-offs | 2,000 | 44,000 | 285,000 | |||||||||||
Recoveries | 1,000 | 1,000 | 2,000 | 3,000 | 5,000 | |||||||||
Provisions | -9,000 | -121,000 | -131,000 | -78,000 | -124,000 | 476,000 | ||||||||
Balance at end of the period | 226,000 | 400,000 | 445,000 | 521,000 | 226,000 | 445,000 | 400,000 | 521,000 | ||||||
Allowance for loan losses | ||||||||||||||
Collectively evaluated for impairment | 226,000 | 400,000 | 445,000 | 521,000 | 226,000 | 445,000 | 400,000 | 521,000 | ||||||
Loans receivable: | ||||||||||||||
Ending balance-total | 25,437,000 | 27,173,000 | 26,945,000 | 27,976,000 | 25,437,000 | 26,945,000 | 27,173,000 | 27,976,000 | ||||||
Collectively evaluated for impairment | 25,437,000 | 27,173,000 | 26,945,000 | 27,976,000 | 25,437,000 | 26,945,000 | 27,173,000 | 27,976,000 | ||||||
Consumer: Other | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 78,000 | 53,000 | 57,000 | 88,000 | 17,000 | 57,000 | 57,000 | 88,000 | ||||||
Charge-offs | 13,000 | 16,000 | 39,000 | 37,000 | 79,000 | 99,000 | ||||||||
Recoveries | 3,000 | 6,000 | 8,000 | 13,000 | 37,000 | 23,000 | ||||||||
Provisions | 28,000 | 2,000 | 110,000 | 12,000 | 2,000 | 45,000 | ||||||||
Balance at end of the period | 96,000 | 17,000 | 45,000 | 57,000 | 96,000 | 45,000 | 17,000 | 57,000 | ||||||
Allowance for loan losses | ||||||||||||||
Collectively evaluated for impairment | 96,000 | 17,000 | 45,000 | 57,000 | 96,000 | 45,000 | 17,000 | 57,000 | ||||||
Loans receivable: | ||||||||||||||
Ending balance-total | 7,380,000 | 5,495,000 | 5,266,000 | 5,335,000 | 7,380,000 | 5,266,000 | 5,495,000 | 5,335,000 | ||||||
Individually evaluated for impairment | 7,000 | 10,000 | 28,000 | 19,000 | 7,000 | 28,000 | 10,000 | 19,000 | ||||||
Collectively evaluated for impairment | 7,373,000 | 5,485,000 | 5,238,000 | 5,316,000 | 7,373,000 | 5,238,000 | 5,485,000 | 5,316,000 | ||||||
Total loans considered impaired | 7,000 | 10,000 | 28,000 | 19,000 | 7,000 | 28,000 | 10,000 | 19,000 | ||||||
Loans considered impaired for which there is a related allowance for loan loss: | ||||||||||||||
Loans considered impaired and previously written down to fair value | 7,000 | 10,000 | 28,000 | 19,000 | 7,000 | 28,000 | 10,000 | 19,000 | ||||||
Average impaired loans | 17,000 | 37,000 | 18,000 | 41,000 | 21,000 | 30,000 | ||||||||
Amount of interest earned during period of impairment | 1,000 | |||||||||||||
Unallocated | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 2,516,000 | 1,889,000 | 1,801,000 | 1,043,000 | 2,309,000 | 1,801,000 | 1,801,000 | 1,043,000 | ||||||
Provisions | -89,000 | 202,000 | 118,000 | 290,000 | 508,000 | 758,000 | ||||||||
Balance at end of the period | 2,427,000 | 2,309,000 | 2,091,000 | 1,801,000 | 2,427,000 | 2,091,000 | 2,309,000 | 1,801,000 | ||||||
Allowance for loan losses | ||||||||||||||
Collectively evaluated for impairment | $2,427,000 | $2,309,000 | $2,091,000 | $1,801,000 | $2,427,000 | $2,091,000 | $2,309,000 | $1,801,000 |
LOANS_Details_3
LOANS (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
With no allowance recorded: | |||||||
Recorded Investment | $6,514 | $6,514 | $6,176 | $9,205 | $9,209 | ||
With an allowance recorded: | |||||||
Recorded Investment | 57 | 57 | 148 | 378 | |||
Related allowance | 5 | 5 | 2 | 96 | |||
Total: | |||||||
Recorded Investment | 6,571 | 9,283 | 6,571 | 9,283 | 6,176 | 9,353 | 9,587 |
Unpaid Principal Balance | 7,256 | 9,750 | 7,256 | 9,750 | 6,603 | 9,811 | |
Related allowance | 5 | 5 | 2 | 96 | |||
Average Recorded Investment | 7,847 | 12,446 | 7,719 | 10,316 | 6,704 | 9,926 | 10,576 |
Interest Income Recognized | 30 | 70 | 127 | 144 | 179 | 397 | 323 |
Commercial | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 84 | 24 | 84 | 24 | 37 | 12 | |
Unpaid Principal Balance | 84 | 54 | 84 | 54 | 50 | 19 | |
Average Recorded Investment | 264 | 93 | 149 | 95 | 53 | 21 | |
Interest Income Recognized | 1 | 8 | 1 | ||||
With an allowance recorded: | |||||||
Recorded Investment | 33 | ||||||
Unpaid Principal Balance | 33 | ||||||
Related allowance | 1 | ||||||
Average Recorded Investment | 36 | ||||||
Interest Income Recognized | 2 | ||||||
Total: | |||||||
Recorded Investment | 84 | 24 | 84 | 24 | 37 | 45 | |
Unpaid Principal Balance | 84 | 54 | 84 | 54 | 50 | 52 | |
Related allowance | 1 | ||||||
Average Recorded Investment | 264 | 93 | 149 | 95 | 53 | 57 | |
Interest Income Recognized | 1 | 8 | 1 | 2 | |||
Real estate: Mortgage-residential | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 664 | 581 | 664 | 581 | 357 | 622 | |
Unpaid Principal Balance | 679 | 609 | 679 | 609 | 381 | 650 | |
Average Recorded Investment | 744 | 637 | 749 | 645 | 442 | 656 | |
Interest Income Recognized | 12 | 1 | 15 | 1 | 1 | 4 | |
With an allowance recorded: | |||||||
Recorded Investment | 57 | 57 | |||||
Unpaid Principal Balance | 57 | 57 | |||||
Related allowance | 5 | 5 | |||||
Average Recorded Investment | 58 | 56 | |||||
Interest Income Recognized | 2 | 7 | |||||
Total: | |||||||
Recorded Investment | 721 | 581 | 721 | 581 | 357 | 622 | |
Unpaid Principal Balance | 736 | 609 | 736 | 609 | 381 | 650 | |
Related allowance | 5 | 5 | |||||
Average Recorded Investment | 802 | 637 | 805 | 645 | 442 | 656 | |
Interest Income Recognized | 14 | 1 | 22 | 1 | 1 | 4 | |
Real estate: Mortgage-commercial | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 5,759 | 8,650 | 5,759 | 8,650 | 5,772 | 8,552 | |
Unpaid Principal Balance | 6,429 | 9,059 | 6,429 | 9,059 | 6,162 | 8,975 | |
Average Recorded Investment | 6,764 | 11,679 | 6,747 | 9,535 | 6,188 | 9,066 | |
Interest Income Recognized | 16 | 68 | 97 | 142 | 178 | 382 | |
With an allowance recorded: | |||||||
Recorded Investment | 115 | ||||||
Unpaid Principal Balance | 115 | ||||||
Related allowance | 1 | ||||||
Average Recorded Investment | 117 | ||||||
Interest Income Recognized | 8 | ||||||
Total: | |||||||
Recorded Investment | 5,759 | 8,650 | 5,759 | 8,650 | 5,772 | 8,667 | |
Unpaid Principal Balance | 6,429 | 9,059 | 6,429 | 9,059 | 6,162 | 9,090 | |
Related allowance | 1 | ||||||
Average Recorded Investment | 6,764 | 11,679 | 6,747 | 9,535 | 6,188 | 9,183 | |
Interest Income Recognized | 16 | 68 | 97 | 142 | 178 | 390 | |
Consumer: Other | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 7 | 28 | 7 | 28 | 10 | 19 | |
Unpaid Principal Balance | 7 | 28 | 7 | 28 | 10 | 19 | |
Average Recorded Investment | 17 | 37 | 18 | 41 | 21 | 30 | |
Interest Income Recognized | 1 | ||||||
Total: | |||||||
Recorded Investment | 7 | 28 | 7 | 28 | 10 | 19 | |
Unpaid Principal Balance | 7 | 28 | 7 | 28 | 10 | 19 | |
Average Recorded Investment | 17 | 37 | 18 | 41 | 21 | 30 | |
Interest Income Recognized | $1 |
LOANS_Details_4
LOANS (Details 4) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | Accrual | Accrual | Accrual | Nonaccrual | Nonaccrual | Nonaccrual | Pass | Pass | Pass | Special Mention | Special Mention | Special Mention | Substandard | Substandard | Substandard | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Commercial, financial and agricultural | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Construction | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-residential | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Real estate: Mortgage-commercial | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Home equity | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | Consumer: Other | ||||
Pass | Pass | Pass | Special Mention | Special Mention | Special Mention | Substandard | Substandard | Substandard | Pass | Pass | Pass | Special Mention | Special Mention | Substandard | Substandard | Substandard | Pass | Pass | Pass | Special Mention | Special Mention | Special Mention | Substandard | Substandard | Substandard | Pass | Pass | Pass | Special Mention | Special Mention | Special Mention | Substandard | Substandard | Substandard | Pass | Pass | Pass | Special Mention | Special Mention | Special Mention | Substandard | Substandard | Substandard | Pass | Pass | Pass | Special Mention | Special Mention | Special Mention | Substandard | Substandard | Substandard | |||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $341,089 | $332,111 | $324,913 | $324,311 | $318,963 | $306,818 | $297,641 | $8,512 | $7,681 | $8,856 | $13,614 | $17,612 | $17,814 | $20,908 | $20,924 | $20,608 | $20,741 | $20,826 | $19,827 | $52 | $27 | $499 | $115 | $71 | $282 | $15,232 | $13,052 | $12,302 | $11,767 | $12,182 | $8,595 | $6,764 | $1,222 | $2,047 | $1,828 | $2,410 | $5,003 | $38,363 | $38,892 | $38,779 | $38,337 | $35,900 | $36,493 | $37,063 | $1,186 | $1,677 | $305 | $1,277 | $722 | $969 | $233,769 | $226,575 | $221,880 | $220,288 | $217,627 | $208,825 | $200,984 | $5,899 | $3,803 | $8,009 | $10,243 | $13,947 | $11,295 | $25,437 | $27,173 | $26,945 | $27,976 | $25,156 | $26,604 | $27,692 | $139 | $124 | $38 | $142 | $445 | $246 | $7,380 | $5,495 | $5,266 | $5,335 | $7,357 | $5,475 | $5,311 | $14 | $3 | $5 | $9 | $17 | $19 | ||||||
Non-accrual loans | 5,978 | 4,715 | 5,403 | 4,700 | 5,400 | 6,000 | 663 | 357 | 623 | 5,224 | 4,263 | 4,749 | 7 | 10 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross interest income which would have been recorded under the original terms of the non-accrual loans | 352 | 224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest recorded on non-accrual loans | 112 | 163 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings | 1,500 | 3,900 | 593 | 1,800 | 2,200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earned on troubled debt restructurings | 123 | 234 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans greater than ninety days delinquent and still accruing interest | $55 | $25 | $55 | $25 |
LOANS_Details_5
LOANS (Details 5) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
Loans | ||||
30-59 Days Past Due | $2,201,000 | $1,198,000 | $2,007,000 | |
60-89 Days Past Due | 558,000 | 1,390,000 | 1,202,000 | |
Greater than 90 Days and Accruing | 55,000 | 25,000 | ||
Nonaccrual | 5,978,000 | 4,715,000 | 5,403,000 | |
Total Past Due | 8,737,000 | 7,358,000 | 8,637,000 | |
Current | 332,352,000 | 324,753,000 | 315,674,000 | |
Total Loans | 341,089,000 | 332,111,000 | 324,913,000 | 324,311,000 |
Recorded investment in loans for which the allowance was previously measured under a general allowance methodology and are now impaired under ASC 310-10-35 | 3,300,000 | 7,700,000 | ||
Allowance for loans losses in loans for which the allowance was previously measured under a general allowance methodology and are now impaired under ASC 310-10-35 | 2,000 | |||
Commercial | ||||
Loans | ||||
30-59 Days Past Due | 16,000 | 17,000 | 147,000 | |
60-89 Days Past Due | 107,000 | 123,000 | ||
Nonaccrual | 84,000 | 85,000 | 12,000 | |
Total Past Due | 100,000 | 209,000 | 282,000 | |
Current | 20,808,000 | 20,715,000 | 20,326,000 | |
Total Loans | 20,908,000 | 20,924,000 | 19,741,000 | 20,608,000 |
Real estate: Construction | ||||
Loans | ||||
Current | 15,232,000 | 13,052,000 | 11,767,000 | |
Total Loans | 15,232,000 | 13,052,000 | 12,302,000 | 11,767,000 |
Real estate: Mortgage-residential | ||||
Loans | ||||
30-59 Days Past Due | 514,000 | 311,000 | 391,000 | |
60-89 Days Past Due | 70,000 | 378,000 | 95,000 | |
Nonaccrual | 663,000 | 357,000 | 623,000 | |
Total Past Due | 1,247,000 | 1,046,000 | 1,109,000 | |
Current | 37,116,000 | 37,846,000 | 37,228,000 | |
Total Loans | 38,363,000 | 38,892,000 | 38,779,000 | 38,337,000 |
Real estate: Mortgage-commercial | ||||
Loans | ||||
30-59 Days Past Due | 1,448,000 | 627,000 | 1,382,000 | |
60-89 Days Past Due | 464,000 | 898,000 | 966,000 | |
Greater than 90 Days and Accruing | 55,000 | 25,000 | ||
Nonaccrual | 5,224,000 | 4,263,000 | 4,749,000 | |
Total Past Due | 7,136,000 | 5,843,000 | 7,122,000 | |
Current | 226,633,000 | 220,732,000 | 213,166,000 | |
Total Loans | 233,769,000 | 226,575,000 | 221,880,000 | 220,288,000 |
Consumer: Home equity | ||||
Loans | ||||
30-59 Days Past Due | 170,000 | 211,000 | 45,000 | |
60-89 Days Past Due | 21,000 | |||
Total Past Due | 191,000 | 211,000 | 45,000 | |
Current | 25,246,000 | 26,962,000 | 27,931,000 | |
Total Loans | 25,437,000 | 27,173,000 | 26,945,000 | 27,976,000 |
Consumer: Other | ||||
Loans | ||||
30-59 Days Past Due | 53,000 | 32,000 | 42,000 | |
60-89 Days Past Due | 3,000 | 7,000 | 18,000 | |
Nonaccrual | 7,000 | 10,000 | 19,000 | |
Total Past Due | 63,000 | 49,000 | 79,000 | |
Current | 7,317,000 | 5,446,000 | 5,256,000 | |
Total Loans | $7,380,000 | $5,495,000 | $5,266,000 | $5,335,000 |
LOANS_Details_6
LOANS (Details 6) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
item | item | item | item | item | item | |
Loans | ||||||
Number of Contracts | 3 | 1 | 3 | 3 | 8 | |
Pre-Modification Outstanding Recorded Investment | $649 | $257 | $649 | $636 | $3,922 | |
Post-Modification Outstanding Recorded Investment | 636 | 257 | 636 | 636 | 3,922 | |
Number of loans for which payment and interest rate were lowered | 2 | 2 | 2 | 6 | ||
Number of loans for which payment was lowered | 1 | 1 | ||||
Number of loans for which the company and guarantor were released | 1 | |||||
Period after which past due loans are considered defaulted | 89 days | |||||
Troubled Debt Restructurings that subsequently defaulted | ||||||
Number of Contracts | 1 | 1 | 5 | |||
Recorded Investment | 638 | 638 | 715 | |||
Number of proper valuation methods used to review the allowance for loan losses | 3 | 3 | ||||
Nonaccrual | ||||||
Loans | ||||||
Number of Contracts | 1 | 7 | ||||
Pre-Modification Outstanding Recorded Investment | 40 | 784 | ||||
Post-Modification Outstanding Recorded Investment | 40 | 784 | ||||
Accrual | ||||||
Loans | ||||||
Number of Contracts | 2 | 1 | ||||
Pre-Modification Outstanding Recorded Investment | 596 | 3,138 | ||||
Post-Modification Outstanding Recorded Investment | 596 | 3,138 | ||||
Mortgage-commercial | ||||||
Troubled Debt Restructurings that subsequently defaulted | ||||||
Number of Contracts | 1 | 1 | 4 | |||
Recorded Investment | 638 | 638 | 704 | |||
Mortgage-commercial | Nonaccrual | ||||||
Loans | ||||||
Number of Contracts | 1 | 1 | 1 | 1 | 5 | |
Pre-Modification Outstanding Recorded Investment | 53 | 257 | 53 | 40 | 741 | |
Post-Modification Outstanding Recorded Investment | 40 | 257 | 40 | 40 | 741 | |
Mortgage-commercial | Accrual | ||||||
Loans | ||||||
Number of Contracts | 2 | 2 | 2 | 1 | ||
Pre-Modification Outstanding Recorded Investment | 596 | 596 | 596 | 3,138 | ||
Post-Modification Outstanding Recorded Investment | 596 | 596 | 596 | 3,138 | ||
Commercial & Industrial | ||||||
Troubled Debt Restructurings that subsequently defaulted | ||||||
Number of Contracts | 1 | |||||
Recorded Investment | 11 | |||||
Commercial & Industrial | Nonaccrual | ||||||
Loans | ||||||
Number of Contracts | 2 | |||||
Pre-Modification Outstanding Recorded Investment | 43 | |||||
Post-Modification Outstanding Recorded Investment | $43 |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial Assets: | |||
Available-for-sale securities | $223,646,000 | $203,445,000 | $201,032,000 |
Other investments, at cost | 2,269,000 | 2,527,000 | 5,637,000 |
Interest rate swap | -338,000 | -602,000 | |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | 83,572,000 |
NOW and money market accounts | 186,778,000 | 150,874,000 | 136,483,000 |
Savings | 47,238,000 | 41,100,000 | 34,048,000 |
Time deposits | 185,477,000 | ||
Fair value | |||
Financial Assets: | |||
Cash and short term investments | 24,287,000 | 18,296,000 | 16,492,000 |
Available-for-sale securities | 223,646,000 | 203,445,000 | 201,032,000 |
Loans held for sale | 5,789,000 | 9,658,000 | 3,725,000 |
Net loans receivable | 340,151,000 | 328,893,000 | 319,505,000 |
Accrued interest | 2,177,000 | 2,098,000 | 1,914,000 |
Interest rate swap | -172,000 | -338,000 | -602,000 |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | 83,572,000 |
NOW and money market accounts | 186,778,000 | 150,874,000 | 136,483,000 |
Savings | 47,238,000 | 41,100,000 | 34,048,000 |
Time deposits | 171,732,000 | 187,313,000 | 214,437,000 |
Total deposits | 511,226,000 | 476,813,000 | 468,540,000 |
Federal Home Loan Bank Advances | 38,458,000 | 41,977,000 | 50,238,000 |
Short term borrowings | 15,650,000 | 15,900,000 | 13,616,000 |
Junior subordinated debentures | 15,464,000 | 15,464,000 | 17,913,000 |
Accrued interest payable | 666,000 | 1,029,000 | 1,624,000 |
Level 1 | |||
Financial Assets: | |||
Cash and short term investments | 24,287,000 | 18,296,000 | |
Available-for-sale securities | 830,000 | 914,000 | |
Accrued interest | 2,177,000 | 2,098,000 | |
Financial liabilities: | |||
Accrued interest payable | 666,000 | 1,029,000 | |
Level 2 | |||
Financial Assets: | |||
Available-for-sale securities | 222,399,000 | 202,114,000 | |
Loans held for sale | 5,789,000 | 9,658,000 | |
Net loans receivable | 333,580,000 | 322,717,000 | |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | |
NOW and money market accounts | 186,778,000 | 150,874,000 | |
Savings | 47,238,000 | 41,100,000 | |
Time deposits | 171,732,000 | 187,313,000 | |
Total deposits | 511,226,000 | 476,813,000 | |
Federal Home Loan Bank Advances | 38,458,000 | 41,977,000 | |
Short term borrowings | 15,650,000 | 15,900,000 | |
Junior subordinated debentures | 15,464,000 | 15,464,000 | |
Level 3 | |||
Financial Assets: | |||
Available-for-sale securities | 417,000 | 417,000 | |
Other investments, at cost | 2,269,000 | 2,527,000 | |
Net loans receivable | 6,571,000 | 6,176,000 | |
Interest rate swap | -172,000 | -338,000 | |
Carrying Amount | |||
Financial Assets: | |||
Cash and short term investments | 24,287,000 | 18,296,000 | 16,492,000 |
Available-for-sale securities | 223,646,000 | 203,445,000 | 201,032,000 |
Other investments, at cost | 2,269,000 | 2,527,000 | 5,637,000 |
Loans held for sale | 5,789,000 | 9,658,000 | 3,725,000 |
Net loans receivable | 336,650,000 | 327,490,000 | 319,612,000 |
Accrued interest | 2,177,000 | 2,098,000 | 1,914,000 |
Interest rate swap | -172,000 | -338,000 | -602,000 |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | 83,572,000 |
NOW and money market accounts | 186,778,000 | 150,874,000 | 136,483,000 |
Savings | 47,238,000 | 41,100,000 | 34,048,000 |
Time deposits | 170,125,000 | 185,477,000 | 210,482,000 |
Total deposits | 509,619,000 | 474,977,000 | 464,585,000 |
Federal Home Loan Bank Advances | 34,335,000 | 36,344,000 | 43,862,000 |
Short term borrowings | 15,650,000 | 15,900,000 | 13,616,000 |
Junior subordinated debentures | 15,464,000 | 15,464,000 | 17,913,000 |
Accrued interest payable | $666,000 | $1,029,000 | $1,624,000 |
FAIR_VALUE_MEASUREMENT_Details1
FAIR VALUE MEASUREMENT (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Assets and liabilities measured at fair value | |||||||
Non-interest income: Fair value adjustment loss | ($2) | ($4) | ($2) | ($37) | ($58) | ($166) | ($581) |
Interest rate swap | |||||||
Assets and liabilities measured at fair value | |||||||
Non-interest income: Fair value adjustment loss | ($2) | ($4) | ($2) | ($37) | ($58) | ($166) | ($581) |
FAIR_VALUE_MEASUREMENT_Details2
FAIR VALUE MEASUREMENT (Details 3) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets and liabilities measured at fair value | |||
Available for sale securities | $223,646,000 | $203,445,000 | $201,032,000 |
Interest rate cap/swap | -338,000 | -602,000 | |
Government sponsored enterprises | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,462,000 | 1,534,000 | 34,000 |
Mortgage-backed securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 122,649,000 | 112,144,000 | 141,631,000 |
Small Business Administration securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 57,304,000 | 54,993,000 | 36,479,000 |
State and local government | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 39,922,000 | 32,373,000 | 20,488,000 |
Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 2,309,000 | 2,401,000 | 2,400,000 |
Fair value | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 223,646,000 | 203,445,000 | 201,032,000 |
Interest rate cap/swap | -172,000 | -338,000 | -602,000 |
Total | 223,474,000 | 203,107,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 830,000 | 914,000 | |
Total | 830,000 | 914,000 | |
Significant Other Observable Inputs (Level 2) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 222,399,000 | 202,114,000 | |
Total | 222,399,000 | 202,114,000 | |
Significant Unobservable Inputs (Level 3) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 417,000 | 417,000 | |
Interest rate cap/swap | -172,000 | -338,000 | |
Total | -245,000 | 79,000 | |
Recurring basis | Fair value | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 203,445,000 | 201,032,000 | |
Interest rate cap/swap | -338,000 | -602,000 | |
Total | 203,107,000 | 200,430,000 | |
Recurring basis | Fair value | Government sponsored enterprises | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,462,000 | 1,534,000 | 34,000 |
Recurring basis | Fair value | Mortgage-backed securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 122,649,000 | 112,144,000 | 141,631,000 |
Recurring basis | Fair value | Small Business Administration securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 57,304,000 | 54,993,000 | 36,479,000 |
Recurring basis | Fair value | State and local government | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 39,922,000 | 32,373,000 | 20,488,000 |
Recurring basis | Fair value | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 2,309,000 | 2,401,000 | 2,400,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 914,000 | 926,000 | |
Total | 914,000 | 926,000 | |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 830,000 | 914,000 | 926,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 202,114,000 | 200,106,000 | |
Total | 202,114,000 | 200,106,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government sponsored enterprises | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,462,000 | 1,534,000 | 34,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 122,649,000 | 112,144,000 | 141,631,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Small Business Administration securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 57,304,000 | 54,993,000 | 36,479,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and local government | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 39,922,000 | 32,373,000 | 20,488,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,062,000 | 1,070,000 | 1,474,000 |
Recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 417,000 | ||
Interest rate cap/swap | -338,000 | -602,000 | |
Total | 79,000 | -602,000 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | $417,000 | $417,000 |
FAIR_VALUE_MEASUREMENT_Details3
FAIR VALUE MEASUREMENT (Details 4) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 |
State and local government securities | Corporate and other securities | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Corporate preferred stock | Corporate preferred stock | Corporate preferred stock | |
Reconciliation of changes in level 3 financial instruments | |||||||||
Balance at the beginning of the period | $625 | $182 | ($553) | ($602) | ($602) | ($778) | $417 | $417 | |
Total gains or losses (realized/unrealized) | |||||||||
Included in earnings | -103 | -4 | -37 | -58 | -166 | ||||
Included in other comprehensive income | -79 | ||||||||
Purchases, issuances, and settlements | -625 | 78 | 160 | 322 | 342 | 417 | |||
Balance at the end of the period | ($479) | ($479) | ($338) | ($602) | $417 | $417 | $417 |
FAIR_VALUE_MEASUREMENT_Details4
FAIR VALUE MEASUREMENT (Details 5) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | $6,571 | $6,176 | $9,283 | $9,353 | $9,587 |
Total other real estate owned | 2,824 | 3,987 | 7,351 | 6,904 | |
Fair value | |||||
Assets and liabilities measured at fair value | |||||
Total | 223,474 | 203,107 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Assets and liabilities measured at fair value | |||||
Total | 830 | 914 | |||
Significant Other Observable Inputs (Level 2) | |||||
Assets and liabilities measured at fair value | |||||
Total | 222,399 | 202,114 | |||
Significant Unobservable Inputs (Level 3) | |||||
Assets and liabilities measured at fair value | |||||
Total | -245 | 79 | |||
Non-recurring basis | Fair value | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 6,566 | 6,176 | 9,351 | ||
Total other real estate owned | 2,824 | 3,987 | 7,351 | ||
Total | 9,390 | 10,163 | 16,702 | ||
Non-recurring basis | Fair value | Commercial & Industrial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 84 | 37 | 44 | ||
Non-recurring basis | Fair value | Mortgage-residential | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 716 | 357 | 622 | ||
Total other real estate owned | 302 | 488 | 4,278 | ||
Non-recurring basis | Fair value | Mortgage-commercial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 5,759 | 5,772 | 8,666 | ||
Total other real estate owned | 2,221 | 3,198 | 917 | ||
Non-recurring basis | Fair value | Consumer, Other | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 7 | 10 | 19 | ||
Non-recurring basis | Fair value | Construction | |||||
Assets and liabilities measured at fair value | |||||
Total other real estate owned | 301 | 301 | 2,156 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 6,566 | 6,176 | 9,351 | ||
Total other real estate owned | 2,824 | 3,987 | 7,351 | ||
Total | 9,390 | 10,163 | 16,702 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Commercial & Industrial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 84 | 37 | 44 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-residential | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 716 | 357 | 622 | ||
Total other real estate owned | 302 | 488 | 4,278 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-commercial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 5,759 | 5,772 | 8,666 | ||
Total other real estate owned | 2,221 | 3,198 | 917 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Consumer, Other | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 7 | 10 | 19 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Construction | |||||
Assets and liabilities measured at fair value | |||||
Total other real estate owned | $301 | $301 | $2,156 |
FAIR_VALUE_MEASUREMENT_Details5
FAIR VALUE MEASUREMENT (Details 6) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||
Interest Rate Swap | Interest Rate Swap | Preferred Stock | Preferred Stock | OREO | OREO | OREO | OREO | OREO | OREO | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | ||||||||
Discounted cash flows | Discounted cash flows | Estimation based on comparable non-listed securities | Estimation based on comparable non-listed securities | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | ||||||||
Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | ||||||||||||||||
Significant unobservable inputs used in the fair value measurements | |||||||||||||||||||||||
Interest rate swap | ($338) | ($602) | ($172) | ($338) | ($172) | ($388) | |||||||||||||||||
Preferred stock | 417 | 417 | |||||||||||||||||||||
OREO | 2,824 | 3,987 | 7,351 | 6,904 | 2,824 | 3,987 | |||||||||||||||||
Aggregate amount of impaired loans | $6,571 | $6,176 | $9,283 | $9,353 | $9,587 | $6,566 | $6,176 | ||||||||||||||||
Rate (as a percent) | 3.20% | 3.20% | 6.00% | 6.00% | 16.00% | 16.00% | 6.00% | 6.00% | 16.00% | 16.00% |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Property and equipment | |||||
Property and equipment, gross | $26,474 | $25,838 | |||
Accumulated depreciation | 9,216 | 8,355 | |||
Property and equipment, net | 17,255 | 17,258 | 17,483 | ||
Provision for depreciation | 445 | 417 | 862 | 841 | 882 |
Land | |||||
Property and equipment | |||||
Property and equipment, gross | 5,297 | 5,467 | |||
Premises | |||||
Property and equipment | |||||
Property and equipment, gross | 13,990 | 13,990 | |||
Equipment | |||||
Property and equipment | |||||
Property and equipment, gross | $7,187 | $6,381 |
GOODWILL_CORE_DEPOSIT_INTANGIB2
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 |
Core deposit premiums | Core deposit premiums | Other intangibles | Other intangibles | Customer list | ||||||||
item | ||||||||||||
Intangible assets (excluding goodwill) | ||||||||||||
Gross carrying amount | $4,084 | $4,084 | $3,438 | $3,438 | $646 | $646 | ||||||
Accumulated amortization | -3,924 | -3,719 | ||||||||||
Net | 65 | 65 | 160 | 365 | ||||||||
Amortization of the intangibles | 45 | 51 | 96 | 102 | 204 | 517 | 621 | |||||
Scheduled amortization of the intangibles | ||||||||||||
2013 | 160 | |||||||||||
Net | 65 | 65 | 160 | 365 | ||||||||
Number of financial advisory firms acquired | 2 | |||||||||||
Intangible asset acquired | $646 | |||||||||||
Period over which intangible asset is being amortized on a straight line basis | 7 years | 5 years |
GOODWILL_CORE_DEPOSIT_INTANGIB3
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2011 |
In Thousands, unless otherwise specified | Palmetto South | |||
Goodwill | ||||
Goodwill recorded | $571 | |||
Carrying value of all existing policies related to bank-owned life insurance | $11,024 | $10,868 | $10,974 |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Other real estate owned | |||||
Balance-beginning of year | $3,987 | $7,351 | $7,351 | $6,904 | |
Writedowns | 21 | 206 | 317 | 261 | 333 |
Sales | 5,817 | 3,181 | |||
Balance, end of year | $2,824 | $3,987 | $7,351 | $6,904 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Scheduled maturities of Certificates of Deposits | |||
2013 | $109,239,000 | ||
2014 | 32,423,000 | ||
2015 | 14,793,000 | ||
2016 | 16,240,000 | ||
2017 | 12,780,000 | ||
Thereafter | 2,000 | ||
Total | 185,477,000 | ||
Interest paid on certificates of deposits | |||
Interest paid on certificates of deposits of $100 thousand or more | 1,200,000 | 1,700,000 | 2,100,000 |
Deposits from directors and executive officers and their related interests | 4,800,000 | 4,400,000 | |
Amount of overdrafts classified as loans | $142,000 | $119,000 |
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Securities sold under agreements to repurchase | ||
Securities sold under agreements to repurchase and other borrowed money | ||
Weighted average interest rate (as a percent) | 0.21% | 0.25% |
Maximum month-end balance | $17.30 | $18.10 |
Average outstanding balance during the year | 15.5 | 15.9 |
Average rate paid (as a percent) | 0.23% | 0.25% |
Fair market value of securities pledged as collateral as a percentage of the debt agreement | 100.00% | |
Securities sold under agreements to repurchase | Minimum | ||
Securities sold under agreements to repurchase and other borrowed money | ||
Maturity term of short-term debt | 1 day | |
Securities sold under agreements to repurchase | Maximum | ||
Securities sold under agreements to repurchase and other borrowed money | ||
Maturity term of short-term debt | 4 days | |
Lines of credit | ||
Securities sold under agreements to repurchase and other borrowed money | ||
Unused short-term lines of credit | $20 | $20 |
ADVANCES_FROM_FEDERAL_HOME_LOA2
ADVANCES FROM FEDERAL HOME LOAN BANK (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Advances from the FHLB, Amount | |||||
2012 | $1,000,000 | ||||
2013 | 4,000,000 | ||||
2015 | 4,000,000 | 6,500,000 | |||
After five years | 32,344,000 | 32,362,000 | |||
Total | 34,335,000 | 34,335,000 | 36,344,000 | 43,862,000 | |
Advances from the FHLB, Rate | |||||
2012 | 0.36% | ||||
2013 | 3.58% | ||||
2015 | 4.22% | 4.09% | |||
After five years | 4.13% | 4.13% | |||
Total | 4.14% | 3.99% | |||
Additional disclosures | |||||
Eligible loans pledged as collateral for advances | 43,800,000 | 58,100,000 | |||
Fair value of securities pledged as collateral for advances | 3,800,000 | 15,900,000 | |||
Average advances | 38,800,000 | 56,000,000 | |||
Average interest rate (as a percent) | 4.15% | 3.84% | |||
Maximum outstanding amount at any month end | 42,900,000 | 64,800,000 | |||
Prepaid advances | 9,100,000 | 1,400,000 | |||
Realized losses on the early extinguishment | $141,000 | $141,000 | $121,000 | $217,000 | $188,000 |
JUNIOR_SUBORDINATED_DEBT_Detai
JUNIOR SUBORDINATED DEBT (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 16, 2004 |
Trust preferred securities due September 16, 2034 | Trust preferred securities subject to mandatory redemption | |
Trust I | ||
Junior subordinated debt | ||
Amount of aggregate liquidation | $15 | |
Description of annual interest distribution basis | LIBOR | |
Annual distribution rate, basis spread (as a percent) | 2.57% | |
Maximum consecutive period available for deferral of interest payments on the securities | 5 years | |
Redemption price as a percentage of the principal amount if the securities are redeemed on or after September 16, 2009 | 100.00% |
JUNIOR_SUBORDINATED_DEBT_Detai1
JUNIOR SUBORDINATED DEBT (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Dec. 16, 2011 | Dec. 31, 2011 | Dec. 16, 2011 | Nov. 15, 2012 | Dec. 16, 2011 | |
Warrants | Notes | Notes | |||
Junior subordinated debt | |||||
Number of Units sold | 2,500 | ||||
Interest rate of notes (as a percent) | 8.75% | ||||
Principal amount of a note | $1,000 | ||||
Number of shares of common stock that can be purchased with a Warrant | 43 | 107,500 | |||
Exercise price per share (in dollars per share) | $5.90 | ||||
Debt redeemed | 2,500,000 | ||||
Aggregate purchase price of units sold | $2,500,000 | $2,500,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||
Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | |
Current | ||||||||||||
Federal | $136,000 | |||||||||||
State | 284,000 | 142,000 | 102,000 | |||||||||
Current, Total | 284,000 | 142,000 | 238,000 | |||||||||
Deferred | ||||||||||||
Federal | 1,336,000 | 1,315,000 | 327,000 | |||||||||
Deferred, Total | 1,336,000 | 1,315,000 | 327,000 | |||||||||
Income tax expense (benefit) | 460,000 | 399,000 | 827,000 | 730,000 | 1,620,000 | 1,457,000 | 565,000 | |||||
Reconciliation from expected federal tax expense to effective income tax expense (benefit) | ||||||||||||
Expected federal income tax expense | 1,900,000 | 1,625,000 | 822,000 | |||||||||
State income tax net of federal benefit | 187,000 | 112,000 | 67,000 | |||||||||
Tax exempt interest | -182,000 | -29,000 | -52,000 | |||||||||
Increase in cash surrender value life insurance | -130,000 | -59,000 | -131,000 | |||||||||
Valuation allowance | 35,000 | 97,000 | ||||||||||
Other | -155,000 | -227,000 | -238,000 | |||||||||
Income tax expense (benefit) | 460,000 | 399,000 | 827,000 | 730,000 | 1,620,000 | 1,457,000 | 565,000 | |||||
Assets: | ||||||||||||
Allowance for loan losses | 1,598,000 | 1,609,000 | 1,598,000 | |||||||||
Excess tax basis of deductible intangible assets | 121,000 | 121,000 | 121,000 | |||||||||
Net operating loss carry forward | 3,277,000 | 1,699,000 | 3,277,000 | |||||||||
Compensation expense deferred for tax purposes | 736,000 | 767,000 | 736,000 | |||||||||
Fair value adjustment on interest rate swap agreement | 205,000 | 115,000 | 205,000 | |||||||||
Deferred loss on other-than-temporary-impairment charges | 471,000 | 257,000 | 471,000 | 4,600,000 | 4,600,000 | |||||||
Interest on nonaccrual loans | 109,000 | 99,000 | 109,000 | |||||||||
Tax credit carry-forwards | 410,000 | 829,000 | 410,000 | |||||||||
Excess discount accretion on securities for tax purposes | 360,000 | 360,000 | ||||||||||
Other | 232,000 | 401,000 | 232,000 | |||||||||
Total deferred tax asset | 7,519,000 | 5,897,000 | 7,519,000 | |||||||||
Valuation reserve | 132,000 | 132,000 | 132,000 | |||||||||
Total deferred tax asset net of valuation reserve | 7,387,000 | 5,765,000 | 7,387,000 | |||||||||
Liabilities: | ||||||||||||
Tax depreciation in excess of book depreciation | 126,000 | 118,000 | 126,000 | |||||||||
Excess tax basis of non-deductible intangible assets | 42,000 | 11,000 | 42,000 | |||||||||
Excess financial reporting basis of assets acquired | 1,014,000 | 956,000 | 1,014,000 | |||||||||
Unrealized gain on available-for-sale securities | 705,000 | 1,266,000 | 705,000 | |||||||||
Other | 22,000 | 22,000 | ||||||||||
Total deferred tax liabilities | 1,909,000 | 2,351,000 | 1,909,000 | |||||||||
Net deferred tax asset recognized | 5,478,000 | 3,414,000 | 5,478,000 | |||||||||
Valuation allowance disclosure | ||||||||||||
Valuation allowance increase | 132,000 | |||||||||||
Net operating loss carry forwards acquired in the acquisitions of DutchFork and DeKalb for federal income tax purposes | 5,000,000 | |||||||||||
OTTI charges recognized on certain investment securities | 200,000 | 243,000 | 50,000 | 4,000 | 200,000 | 200,000 | 297,000 | 1,560,000 | 13,500,000 | |||
Tax net operating loss carry forwards acquired from sale of investment securities | 8,000,000 | 8,000,000 | ||||||||||
Change in the tax expense related to the change in unrealized losses on investment securities | $1,667,000 | $75,000 | $564,000 | $2,061,000 | $307,000 |
COMMITMENTS_CONCENTRATIONS_OF_2
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES (Details) (Bank, Commitment to extend credit, USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
Bank | Commitment to extend credit | ||
Commitments | ||
Commitments to extend credit including lines of credit | $53.30 | $40.30 |
COMMITMENTS_CONCENTRATIONS_OF_3
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Commercial real estate loans | Commercial real estate loans | Commercial real estate loans | Commercial real estate loans | Bank | Bank | Bank | Bank | Bank | Bank | Bank | Bank | Bank | |||||
item | Private households | Total loans | Total loans | Total loans | Total loans | Total loans | Total regulatory capital | Total commercial real estate loans | |||||||||
item | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | ||||||||||
Commercial real estate loans | Private households | Lessors of residential properties | Lessors of non-residential properties | Religious organizations | Private households | Owner occupied | |||||||||||
Concentrations | |||||||||||||||||
Concentrations of credit risk threshold, amounts loaned to multiple borrowers engaged in similar business activities as a percentage of risk based capital | 25.00% | ||||||||||||||||
Concentrations of credit risk threshold amount of risk entity's risk based capital, amounts loaned to multiple borrowers engaged in similar business activities | $15,400,000 | ||||||||||||||||
Number of concentration risks | 4 | ||||||||||||||||
Total loan | $341,089,000 | $332,111,000 | $324,913,000 | $324,311,000 | $233,769,000 | $226,575,000 | $221,880,000 | $220,288,000 | $237,600,000 | $82,000,000 | $45,800,000 | $62,100,000 | $26,800,000 | $76,000,000 | |||
Percentage of concentration risk | 72.10% | 24.70% | 13.80% | 18.70% | 8.10% | 133.10% | 31.70% | ||||||||||
Number of loans | 2,065 |
COMMITMENTS_CONCENTRATIONS_OF_4
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Interest rate swap agreement | |||
Notional Amount | $10,000 | ||
Cap/Swap Rate, fixed (as a percent) | 3.66% | ||
Fair value | -338 | -602 | |
Term of interest rate swap agreement | 5 years | ||
Derivative, variable rate basis | three month LIBOR | ||
Change in fair value of the contract recognized in earnings | $58 | $166 | $581 |
OTHER_EXPENSES_Details
OTHER EXPENSES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
OTHER EXPENSES | |||||||
Data processing | $479 | $472 | $414 | ||||
Supplies | 138 | 178 | 150 | ||||
Telephone | 297 | 307 | 302 | ||||
Courier | 72 | 66 | 63 | ||||
Correspondent services | 168 | 193 | 97 | ||||
Insurance | 209 | 213 | 220 | ||||
Postage | 172 | 174 | 181 | ||||
Loss on limited partnership interest | 194 | 119 | 119 | ||||
Director fees | 312 | 319 | 264 | ||||
Professional fees | 745 | 1,040 | 1,068 | ||||
Other | 692 | 666 | 624 | ||||
Total of other non-interest expense | $939 | $921 | $1,791 | $1,803 | $3,478 | $3,747 | $3,502 |
STOCK_OPTIONS_AND_RESTRICTED_S2
STOCK OPTIONS AND RESTRICTED STOCK (Details) (Stock option, USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
item | |||
Stock option | |||
Stock option transactions | |||
Number of shares reserved for future grants | 307,779 | 340,640 | |
Shares reserved that were approved by shareholders at the annual meeting | 350,000 | ||
Number of members of the board of directors in stock option committee | 2 | ||
Exercisable period | 10 years | ||
Shares | |||
Outstanding at the beginning of the period (in shares) | 75,022 | 188,441 | |
Forfeited (in shares) | -113,419 | ||
Outstanding at the end of the period (in shares) | 75,022 | 75,022 | 188,441 |
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $19.69 | $13.28 | |
Forfeited (in dollars per share) | $9.30 | ||
Outstanding at the end of the period (in dollars per share) | $19.69 | $19.69 | $13.28 |
Weighted-Average Remaining Contractual Term (Years) | |||
Outstanding at the end of the period | 2 years 11 days | 3 years 11 days | 1 year 8 months 12 days |
STOCK_OPTIONS_AND_RESTRICTED_S3
STOCK OPTIONS AND RESTRICTED STOCK (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Nov. 15, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Nov. 15, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Notes | Stock option | Stock option | Stock option | Restricted stock awards | Restricted stock awards | Warrants | $12.35 | $14.21 / $16.70 | $19.00 / $22.50 | |
Non-employee director | Executive officers | Notes | Stock option | Stock option | Stock option | |||||
Stock options outstanding and exercisable | ||||||||||
Exercise price (in dollars per share) | $19.69 | $19.69 | $13.28 | $12.35 | ||||||
Exercise price, low end of range (in dollars per share) | $14.21 | $19 | ||||||||
Exercise price, high end of range (in dollars per share) | $16.70 | $22.50 | ||||||||
Number of Option Shares Outstanding and Exercisable | 75,022 | 1,619 | 9,903 | 63,500 | ||||||
Weighted Average Remaining Contractual Life | 2 years 11 days | 11 months 12 days | 2 years 3 months 4 days | 2 years 7 days | ||||||
Weighted Average Exercise Price (in dollars per share) | $19.29 | $12.35 | $14.46 | $20.22 | ||||||
Restricted stock | ||||||||||
Restricted stock issued to each officer (in shares) | 604 | |||||||||
Restricted stock issued (in shares) | 7,852 | 25,009 | ||||||||
Value of restricted stock issued (in dollars per share) | $8.27 | $8.27 | ||||||||
Number of shares that can be purchased with a Warrant | 107,500 | 107,500 | ||||||||
Exercise price of warrants (in dollars per share) | $5.90 |
EMPLOYEE_BENEFIT_PLAN_Details
EMPLOYEE BENEFIT PLAN (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 01, 2007 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
401(k) plan | ||||
Plan expense | $276 | $254 | $233 | |
Employer match prior to July 1, 2007 (as a percent) | 50.00% | |||
Percentage of eligible compensation matched by employer prior to July 1, 2007 | 6.00% | |||
Employer match of employee contributions of first 3% of eligible compensation (as a percent) | 100.00% | |||
Percentage of eligible compensation, matched 100% by employer | 3.00% | |||
Employer match of employee contributions of next 2% of eligible compensation (as a percent) | 50.00% | |||
Percentage of eligible compensation, matched 50% by employer | 2.00% |
EMPLOYEE_BENEFIT_PLAN_Details_
EMPLOYEE BENEFIT PLAN (Details 2) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2006 |
Salary continuation plan | Salary continuation plan | Salary continuation plan | Two key individuals | Six additional key officers | ||||
Salary continuation plan | Salary continuation plan | |||||||
item | item | |||||||
Salary continuation plan | ||||||||
Number of individuals covered under the plan | 2 | 6 | ||||||
Requisite age of individuals to be covered under the plan | 63 years | |||||||
Monthly benefits | $2,500 | |||||||
Period for which monthly benefits are provided | 17 years | 15 years | ||||||
Additional single premium life insurance policies purchased | 3,500,000 | |||||||
Cash surrender value of bank-owned life insurance | 11,024,000 | 10,868,000 | 10,974,000 | |||||
Expenses accrued for the anticipated benefits | $261,000 | $161,000 | $275,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 16, 2011 | Dec. 31, 2011 | Dec. 16, 2011 | Dec. 31, 2011 | |
8.75% subordinated notes | 8.75% subordinated notes | Warrants | Warrants | |||||||||||||||
Earnings Per Common Share | ||||||||||||||||||
Numerator (Included in basic and diluted earnings per share) | $1,203,000 | $1,021,000 | $881,000 | $760,000 | $630,000 | $903,000 | $790,000 | $558,000 | $403,000 | $2,241,000 | $1,390,000 | $3,292,000 | $2,654,000 | $1,190,000 | ||||
Weighted average common shares outstanding for: | ||||||||||||||||||
Basic earnings common per share (in shares) | 5,292,000 | 3,329,000 | 5,274,000 | 3,319,000 | 4,144,000 | 3,287,000 | 3,262,000 | |||||||||||
Dilutive securities: | ||||||||||||||||||
Warrants - Treasury stock method (in shares) | 37,000 | 28,000 | 38,000 | 24,000 | 28,000 | |||||||||||||
Diluted earnings per share (in shares) | 5,329,000 | 3,357,000 | 5,312,000 | 3,343,000 | 4,172,000 | 3,287,000 | 3,262,000 | |||||||||||
The average market price used in calculating assumed number of shares (in dollars per share) | $9.05 | $7.99 | $9.15 | $7.63 | $7.98 | $6.34 | $5.78 | |||||||||||
Earnings per common share | ||||||||||||||||||
Warrants issued (in shares) | 107,500 | 107,500 | ||||||||||||||||
Debt issued | $2,500,000 | $2,500,000 |
SHAREHOLDERS_EQUITY_CAPITAL_RE2
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS (Details) (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Oct. 25, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2011 | Nov. 15, 2012 | Aug. 29, 2012 | Nov. 30, 2008 | Dec. 31, 2012 | Jul. 27, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Subordinated debt | Series T preferred stock | Series T preferred stock | Series T preferred stock | Issuance of equity | First Community Bank | First Community Bank | ||||||
Dividend Restrictions | ||||||||||||
Amount of non-agency MBSs in the investment portfolio rated below investment grade | $1,300,000 | |||||||||||
Shares issued | 5,227,300 | 5,293,116 | 3,307,531 | 1,875,000 | ||||||||
Public offering price (in dollars per share) | $8 | |||||||||||
Gross proceeds from public offering of common stock | 15,000,000 | |||||||||||
Original target for gross proceeds from public offering of common stock | 12,500,000 | |||||||||||
Net proceeds from issuance of common stock | 13,792,000 | 13,800,000 | ||||||||||
Value of stock repurchased | 3,780,000 | |||||||||||
Number of shares repurchased | 3,780 | |||||||||||
Number of shares sold under stock repurchase program | 11,350 | |||||||||||
Number of shares repurchased by third party investors | 7,570 | |||||||||||
Auction price (in dollars per share) | $982.83 | |||||||||||
Non-recurring expenses related to share repurchases | 119,000 | |||||||||||
Charge for remaining discount accretion | -54,000 | 52,000 | 159,000 | |||||||||
Number of shares to be repurchased as per bid approval by the U.S. Treasury | 195,915 | |||||||||||
Repurchase price | 297,500 | |||||||||||
Tier 1 Capital | ||||||||||||
Actual Amount | 63,381,000 | 56,207,000 | 61,588,000 | 55,377,000 | ||||||||
Actual Ratio (as a percent) | 17.33% | 15.33% | 16.87% | 15.12% | ||||||||
Required to be Categorized Adequately Capitalized Amount | 14,628,000 | 14,668,000 | 14,605,000 | 14,647,000 | ||||||||
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||
Required to be Categorized Well Capitalized Amount | 21,907,000 | 21,971,000 | ||||||||||
Required to be Categorized Well Capitalized Ratio (as a percent) | 6.00% | 6.00% | ||||||||||
Total Risked Based Capital | ||||||||||||
Actual Amount | 67,963,000 | 63,256,000 | 66,158,000 | 59,971,000 | ||||||||
Actual Ratio (as a percent) | 18.58% | 17.25% | 18.12% | 16.38% | ||||||||
Required to be Categorized Adequately Capitalized Amount | 29,258,000 | 29,335,000 | 29,209,000 | 29,294,000 | ||||||||
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 8.00% | 8.00% | 8.00% | 8.00% | ||||||||
Required to be Categorized Well Capitalized Amount | 36,512,000 | 36,616,000 | ||||||||||
Required to be Categorized Well Capitalized Ratio (as a percent) | 10.00% | 10.00% | ||||||||||
Tier 1 Leverage | ||||||||||||
Actual Amount | 63,381,000 | 56,207,000 | 61,588,000 | 55,377,000 | ||||||||
Actual Ratio (as a percent) | 10.63% | 9.40% | 10.34% | 9.27% | ||||||||
Required to be Categorized Adequately Capitalized Amount | 23,846,000 | 23,909,000 | 23,824,000 | 23,898,000 | ||||||||
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||
Required to be Categorized Well Capitalized Amount | 29,779,000 | 29,873,000 | ||||||||||
Required to be Categorized Well Capitalized Ratio (as a percent) | 5.00% | 5.00% | ||||||||||
Redemption of outstanding debt | $2,500,000 |
SHAREHOLDERS_EQUITY_CAPITAL_RE3
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS (Details 2) (Maximum) | 12 Months Ended |
Dec. 31, 2012 | |
Maximum | |
Dividend Restrictions | |
Cash dividends paid as percentage of net income | 100.00% |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||||||
Assets: | ||||||
Cash on deposit | $9,727 | $11,517 | $10,599 | |||
Investment securities available-for-sale | 223,646 | 203,445 | 201,032 | |||
Total assets | 633,185 | 602,925 | 593,887 | |||
Liabilities: | ||||||
Junior subordinated debentures | 15,464 | 15,464 | 17,913 | |||
Other | 5,289 | 6,057 | 6,015 | |||
Total liabilities | 580,357 | 548,742 | 545,991 | |||
Shareholders' equity | 52,828 | 54,183 | 49,296 | 47,896 | 41,797 | 41,440 |
Total liabilities and shareholders' equity | 633,185 | 602,925 | 593,887 | |||
First Community Corporation | ||||||
Assets: | ||||||
Cash on deposit | 1,417 | 3,547 | ||||
Securities purchased under agreement to resell | 128 | 128 | ||||
Investment securities available-for-sale | 429 | 12 | ||||
Investment in bank subsidiary | 67,055 | 61,713 | ||||
Other | 767 | 608 | ||||
Total assets | 69,796 | 66,008 | ||||
Liabilities: | ||||||
Subordinated notes payable | 2,449 | |||||
Junior subordinated debentures | 15,464 | 15,464 | ||||
Other | 149 | 199 | ||||
Total liabilities | 15,613 | 18,112 | ||||
Shareholders' equity | 54,183 | 47,896 | ||||
Total liabilities and shareholders' equity | $69,796 | $66,008 |
PARENT_COMPANY_FINANCIAL_INFOR3
PARENT COMPANY FINANCIAL INFORMATION (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income: | ||||||||||||||
Interest and dividend income | $5,370 | $5,468 | $5,650 | $5,840 | $6,044 | $6,238 | $6,382 | $6,466 | $6,440 | $10,653 | $11,884 | $23,002 | $25,526 | $27,511 |
Expenses: | ||||||||||||||
Interest expense | 947 | 1,389 | 1,951 | 2,924 | 5,428 | 7,209 | 9,374 | |||||||
Other | 939 | 921 | 1,791 | 1,803 | 3,478 | 3,747 | 3,502 | |||||||
Income tax benefit | 460 | 399 | 827 | 730 | 1,620 | 1,457 | 565 | |||||||
Net income | 1,203 | 1,021 | 1,220 | 928 | 799 | 1,071 | 957 | 726 | 570 | 2,241 | 1,727 | 3,968 | 3,324 | 1,854 |
First Community Corporation | ||||||||||||||
Income: | ||||||||||||||
Interest and dividend income | 1 | 9 | 52 | |||||||||||
Equity in undistributed earnings of subsidiary | 4,313 | 3,782 | 2,270 | |||||||||||
Dividend income from bank subsidiary | 320 | |||||||||||||
Total income | 4,634 | 3,791 | 2,322 | |||||||||||
Expenses: | ||||||||||||||
Interest expense | 658 | 446 | 443 | |||||||||||
Other | 301 | 239 | 177 | |||||||||||
Total expense | 959 | 685 | 620 | |||||||||||
Income before taxes | 3,675 | 3,106 | 1,702 | |||||||||||
Income tax benefit | -293 | -218 | -152 | |||||||||||
Net income | $3,968 | $3,324 | $1,854 |
PARENT_COMPANY_FINANCIAL_INFOR4
PARENT COMPANY FINANCIAL INFORMATION (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities: | ||||||||||||||
Net income | $1,203 | $1,021 | $1,220 | $928 | $799 | $1,071 | $957 | $726 | $570 | $2,241 | $1,727 | $3,968 | $3,324 | $1,854 |
Adjustments to reconcile net income to net cash used by operating activities | ||||||||||||||
Net cash provided from operating activities | 9,379 | 4,464 | 6,032 | 6,547 | 9,658 | |||||||||
Cash flows from investing activities: | ||||||||||||||
Purchase of available-for sale-securities | -58,755 | -63,384 | -103,245 | -103,040 | -140,374 | |||||||||
Maturity of available-for-sale securities | 28,187 | 17,443 | 43,144 | 40,441 | 42,910 | |||||||||
Net cash provided (used) in investing activities | -35,572 | 5,003 | -7,479 | -3,633 | 4,600 | |||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from issuance of subordinated note payable | 2,500 | |||||||||||||
Repayment of subordinated note payable | -2,500 | |||||||||||||
Dividends paid: Common Stock | -519 | -264 | -605 | -525 | -522 | |||||||||
Preferred Stock | -337 | -475 | -670 | -664 | ||||||||||
Proceeds from issuance of common stock | 13,792 | |||||||||||||
Redemption of preferred stock | 11,285 | |||||||||||||
Redemption of stock warrants | -510 | |||||||||||||
Net cash provided from financing activities | 31,772 | 2,591 | 3,663 | -12,883 | -8,641 | |||||||||
Net increase in cash and cash equivalents | 5,579 | 12,058 | 2,216 | -9,969 | 5,617 | |||||||||
Cash and cash equivalents at beginning of period | 28,550 | 16,492 | 26,461 | 18,708 | 16,492 | 16,492 | 26,461 | 20,844 | ||||||
Cash and cash equivalents at end of period | 24,287 | 18,708 | 28,550 | 16,492 | 24,287 | 28,550 | 18,708 | 16,492 | 26,461 | |||||
First Community Corporation | ||||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | 3,968 | 3,324 | 1,854 | |||||||||||
Adjustments to reconcile net income to net cash used by operating activities | ||||||||||||||
Equity in undistributed earnings of subsidiary | -4,313 | -3,782 | -2,270 | |||||||||||
Other-net | -90 | 232 | 72 | |||||||||||
Net cash provided from operating activities | -435 | -226 | -344 | |||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchase of available-for sale-securities | -417 | |||||||||||||
Maturity of available-for-sale securities | 1,250 | |||||||||||||
Other-net | -76 | -52 | ||||||||||||
Net cash provided (used) in investing activities | -417 | 1,174 | -52 | |||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from issuance of subordinated note payable | 2,500 | |||||||||||||
Repayment of subordinated note payable | -2,500 | |||||||||||||
Dividends paid: Common Stock | -605 | -525 | -522 | |||||||||||
Preferred Stock | -475 | -670 | -664 | |||||||||||
Proceeds from issuance of common stock | 13,885 | 182 | 101 | |||||||||||
Redemption of preferred stock | -11,073 | |||||||||||||
Redemption of stock warrants | -510 | |||||||||||||
Net cash provided from financing activities | -1,278 | 1,487 | -1,085 | |||||||||||
Net increase in cash and cash equivalents | -2,130 | 2,435 | -1,481 | |||||||||||
Cash and cash equivalents at beginning of period | 3,547 | 1,112 | 3,547 | 3,547 | 1,112 | 2,593 | ||||||||
Cash and cash equivalents at end of period | $1,417 | $3,547 | $1,417 | $3,547 | $1,112 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||
Interest income | $5,370 | $5,468 | $5,650 | $5,840 | $6,044 | $6,238 | $6,382 | $6,466 | $6,440 | $10,653 | $11,884 | $23,002 | $25,526 | $27,511 | |
Net interest income | 4,423 | 4,285 | 4,329 | 4,451 | 4,509 | 4,616 | 4,628 | 4,619 | 4,454 | 8,702 | 8,960 | 17,574 | 18,317 | 18,137 | |
Provision for loan losses | 100 | 80 | 115 | 71 | 230 | 310 | 360 | 390 | 360 | 250 | 301 | 496 | 1,420 | 1,878 | |
Gain (loss) on sale of securities | 133 | 88 | -35 | -38 | 11 | 301 | 133 | 7 | 134 | 148 | -27 | 26 | 575 | 827 | |
Other-than-temporary-impairment | -200 | -243 | -50 | -4 | -200 | -200 | -297 | -1,560 | -13,500 | ||||||
Income before income taxes | 1,663 | 1,338 | 1,793 | 1,327 | 1,130 | 1,565 | 1,398 | 1,020 | 798 | 3,068 | 2,457 | 5,588 | 4,781 | 2,419 | |
Net income | 1,203 | 1,021 | 1,220 | 928 | 799 | 1,071 | 957 | 726 | 570 | 2,241 | 1,727 | 3,968 | 3,324 | 1,854 | |
Preferred stock dividends | 339 | 168 | 169 | 168 | 167 | 168 | 167 | 337 | 557 | 670 | 664 | ||||
Net income available to common shareholders | $1,203 | $1,021 | $881 | $760 | $630 | $903 | $790 | $558 | $403 | $2,241 | $1,390 | $3,292 | $2,654 | $1,190 | |
Net income per share, basic (in dollars per share) | $0.23 | $0.20 | $0.19 | $0.23 | $0.19 | $0.27 | $0.24 | $0.17 | $0.12 | $0.42 | $0.42 | $0.79 | $0.81 | $0.36 | |
Net income per share, diluted (in dollars per share) | $0.23 | $0.19 | $0.19 | $0.23 | $0.19 | $0.27 | $0.24 | $0.17 | $0.12 | $0.42 | $0.42 | $0.79 | $0.81 | $0.36 |
Recovered_Sheet1
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | ||||||||
ASSETS | ||||||||
Cash and due from banks | $9,727 | $11,517 | $10,599 | |||||
Interest-bearing bank balances | 14,155 | 6,779 | 5,512 | |||||
Federal funds sold and securities purchased under agreements to resell | 405 | 412 | 381 | |||||
Investment securities - available for sale | 223,646 | 203,445 | 201,032 | |||||
Other investments, at cost | 2,269 | 2,527 | 5,637 | |||||
Loans held for sale | 5,789 | 9,658 | 3,725 | |||||
Loans | 341,089 | 332,111 | 324,913 | 324,311 | ||||
Less, allowance for loan losses | 4,439 | 4,534 | 4,621 | 4,742 | 4,745 | 4,699 | 4,911 | 4,854 |
Net loans | 336,650 | 327,490 | 319,612 | |||||
Property, furniture and equipment - net | 17,255 | 17,258 | 17,483 | |||||
Bank owned life insurance | 11,024 | 10,868 | 10,974 | |||||
Other real estate owned | 2,824 | 3,987 | 7,351 | 6,904 | ||||
Intangible assets | 65 | 160 | 365 | |||||
Goodwill | 571 | 571 | 571 | |||||
Other assets | 8,805 | 8,253 | 10,645 | |||||
Total assets | 633,185 | 602,925 | 593,887 | |||||
Deposits: | ||||||||
Non-interest bearing demand | 105,478 | 97,526 | 83,572 | |||||
NOW and money market accounts | 186,778 | 150,874 | 136,483 | |||||
Savings | 47,238 | 41,100 | 34,048 | |||||
Time deposits less than $100,000 | 102,311 | 111,182 | 128,616 | |||||
Time deposits $100,000 and over | 67,814 | 74,295 | 81,866 | |||||
Total deposits | 509,619 | 474,977 | 464,585 | |||||
Securities sold under agreements to repurchase | 15,650 | 15,900 | 13,616 | |||||
Federal Home Loan Bank advances | 34,335 | 36,344 | 43,862 | |||||
Junior subordinated debt | 15,464 | 15,464 | 17,913 | |||||
Other liabilities | 5,289 | 6,057 | 6,015 | |||||
Total liabilities | 580,357 | 548,742 | 545,991 | |||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred stock, par value $1.00 per share, 10,000,000 shares authorized; none issued and outstanding | 11,137 | |||||||
Common stock, par value $1.00 per share; 10,000,000 shares authorized; issued and outstanding 5,293,116 at June 30, 2013 5,227,300 at December 31, 2012 | 5,293 | 5,227 | 3,308 | |||||
Common stock warrants issued | 50 | 50 | 560 | |||||
Additional paid in capital | 62,151 | 61,615 | 49,165 | |||||
Restricted stock | -593 | -152 | ||||||
Accumulated Deficit | -13,193 | -14,915 | -17,603 | |||||
Accumulated other comprehensive income (loss) | -880 | 2,104 | 2,358 | 1,475 | 2,192 | 1,329 | ||
Total shareholders' equity | 52,828 | 54,183 | 49,296 | 47,896 | 41,797 | 41,440 | ||
Total liabilities and shareholders' equity | $633,185 | $602,925 | $593,887 |
Recovered_Sheet2
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED BALANCE SHEETS | |||
Preferred stock, par value (in dollars per share) | $1 | $1 | $1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 | 11,350 |
Preferred stock, shares outstanding | 0 | 0 | 11,350 |
Common stock, par value (in dollars per share) | $1 | $1 | $1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,293,116 | 5,227,300 | 3,307,531 |
Common stock, shares outstanding | 5,293,116 | 5,227,300 | 3,307,531 |
Recovered_Sheet3
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Interest income: | ||||
Loans, including fees | $4,462 | $4,629 | $8,823 | $9,256 |
Taxable securities | 632 | 1,026 | 1,312 | 2,341 |
Non taxable securities | 259 | 163 | 486 | 249 |
Federal funds sold and securities purchased under resale agreements | 9 | 11 | 15 | 17 |
Other | 8 | 11 | 17 | 21 |
Total interest income | 5,370 | 5,840 | 10,653 | 11,884 |
Interest expense: | ||||
Deposits | 457 | 808 | 970 | 1,735 |
Federal funds sold and securities sold under agreement to repurchase | 9 | 9 | 18 | 18 |
Other borrowed money | 481 | 572 | 963 | 1,171 |
Total interest expense | 947 | 1,389 | 1,951 | 2,924 |
Net interest income | 4,423 | 4,451 | 8,702 | 8,960 |
Provision for loan losses | 100 | 71 | 250 | 301 |
Net interest income after provision for loan losses | 4,323 | 4,380 | 8,452 | 8,659 |
Non-interest income: | ||||
Deposit service charges | 367 | 375 | 728 | 764 |
Mortgage origination fees | 1,183 | 877 | 2,198 | 1,600 |
Investment advisory fees and non-deposit commissions | 218 | 162 | 416 | 309 |
Gain (loss) on sale of securities | 133 | -38 | 148 | -27 |
Gain on sale of other assets | 32 | -36 | 30 | 14 |
Fair value gain (loss) adjustments | -2 | -4 | -2 | -37 |
Other-than-temporary-impairment write-down on securities | -200 | |||
Loss on early extinguishment of debt | -141 | -141 | -121 | |
Other | 505 | 519 | 1,001 | 1,016 |
Total non-interest income | 2,295 | 1,855 | 4,378 | 3,318 |
Non-interest expense: | ||||
Salaries and employee benefits | 2,994 | 2,747 | 5,986 | 5,305 |
Occupancy | 334 | 335 | 680 | 680 |
Equipment | 314 | 283 | 597 | 570 |
Marketing and public relations | 112 | 108 | 205 | 294 |
FDIC assessments | 102 | 196 | 201 | 380 |
Other real estate expense | 115 | 267 | 206 | 386 |
Amortization of intangibles | 45 | 51 | 96 | 102 |
Other | 939 | 921 | 1,791 | 1,803 |
Total non-interest expense | 4,955 | 4,908 | 9,762 | 9,520 |
Net income before tax | 1,663 | 1,327 | 3,068 | 2,457 |
Income taxes | 460 | 399 | 827 | 730 |
Net income | 1,203 | 928 | 2,241 | 1,727 |
Preferred stock dividends | 168 | 337 | ||
Net income available to common shareholders | $1,203 | $760 | $2,241 | $1,390 |
Basic earnings per common share (in dollars per share) | $0.23 | $0.23 | $0.42 | $0.42 |
Diluted earnings per common share (in dollars per share) | $0.23 | $0.23 | $0.42 | $0.42 |
Recovered_Sheet4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
Net income | $1,203 | $1,021 | $1,220 | $928 | $799 | $1,071 | $957 | $726 | $570 | $2,241 | $1,727 | $3,968 | $3,324 | $1,854 |
Other comprehensive income (loss): | ||||||||||||||
Unrealized loss during the period on available-for-sale securities, net of tax benefit of $1,617 and $2, for the six months ended June 30. 2013 and June 30, 2012 and $1,492 and $394 for the three months ended June 30, 2013 and June 30, 2012, respectively | -2,896 | -742 | -3,140 | -4 | 914 | 3,751 | -1,065 | |||||||
Less: Reclassification adjustment for (gain) loss included in net income, net of tax (expense) benefit of $50 and ($9) for the six months ended June 30, 2013 and June 30, 2012 and $45 and ($13) for the three months ended June 30, 2013 and June 30, 2012 , respectively | -88 | 25 | -98 | 18 | -17 | -374 | -537 | |||||||
Reclassification adjustment for other-than-temporary-impairment on securities net of tax benefit of $0 and $68 for the six months ended June 30, 2013 and June 30, 2012, respectively | 132 | 132 | 193 | 1,014 | ||||||||||
Other comprehensive income (loss) | -2,984 | -717 | -3,238 | 146 | 1,029 | 3,570 | -588 | |||||||
Comprehensive income (loss) | ($1,781) | $211 | ($997) | $1,873 | $4,997 | $6,894 | $1,266 |
Recovered_Sheet5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||
Unrealized gain (loss) during the period on available-for-sale securities, tax expense (Benefit) | $1,492 | $394 | $1,617 | $2 | $471 | $1,964 | $564 |
Reclassification adjustment for (gain) loss included in net income, tax (expense) benefit | 45 | -13 | 50 | -9 | 9 | 201 | 289 |
Reclassification adjustment for other-than-temporary-impairment on securities, tax benefit | $0 | $68 | $68 | $104 | $546 |
Consolidated_Statements_of_Cha2
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Preferred Stock | Common Stock | Common Stock Warrants | Additional Paid-in Capital | Nonvested Restricted Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (loss) |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2009 | $41,440 | $10,939 | $3,252 | $509 | $48,873 | ($79) | ($20,401) | ($1,653) |
Balance (in shares) at Dec. 31, 2009 | 3,252 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 1,854 | 1,854 | ||||||
Other comprehensive income (loss) net of tax expense (benefit) of $1,667 and $75 for the six months ended June 30, 2013 and June 30, 2012, respectively | -588 | -588 | ||||||
Amortization of compensation on restricted stock | 79 | 79 | ||||||
Dividends: Common ($0.10 and $0.08 per share for the six months ended June 30, 2013 and June 31, 2012, respectively) | -521 | -521 | ||||||
Preferred | -568 | 96 | -664 | |||||
Dividend reinvestment plan | 101 | 18 | 83 | |||||
Dividend reinvestment plan (in shares) | 18 | |||||||
Balance at Dec. 31, 2010 | 41,797 | 11,035 | 3,270 | 509 | 48,956 | -19,732 | -2,241 | |
Balance (in shares) at Dec. 31, 2010 | 3,270 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 3,324 | 3,324 | ||||||
Other comprehensive income (loss) net of tax expense (benefit) of $1,667 and $75 for the six months ended June 30, 2013 and June 30, 2012, respectively | 3,570 | 3,570 | ||||||
Issuance of restricted stock | 91 | 23 | 133 | -65 | ||||
Issuance of restricted stock (in shares) | 23 | |||||||
Amortization of compensation on restricted stock | 65 | 65 | ||||||
Dividends: Common ($0.10 and $0.08 per share for the six months ended June 30, 2013 and June 31, 2012, respectively) | -525 | -525 | ||||||
Preferred | -568 | 102 | -670 | |||||
Dividend reinvestment plan | 91 | 15 | 76 | |||||
Dividend reinvestment plan (in shares) | 15 | |||||||
Balance at Dec. 31, 2011 | 47,896 | 11,137 | 3,308 | 560 | 49,165 | -17,603 | 1,329 | |
Balance (in shares) at Dec. 31, 2011 | 3,308 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 1,727 | 1,727 | ||||||
Other comprehensive income (loss) net of tax expense (benefit) of $1,667 and $75 for the six months ended June 30, 2013 and June 30, 2012, respectively | 146 | 146 | ||||||
Issuance of restricted stock | 33 | 239 | -272 | |||||
Issuance of restricted stock (in shares) | 33 | |||||||
Amortization of compensation on restricted stock | 30 | 30 | ||||||
Dividends: Common ($0.10 and $0.08 per share for the six months ended June 30, 2013 and June 31, 2012, respectively) | -264 | -264 | ||||||
Preferred | -337 | -337 | ||||||
Accretion | 54 | 54 | ||||||
Dividend reinvestment plan | 44 | 5 | 39 | |||||
Dividend reinvestment plan (in shares) | 5 | |||||||
Balance at Jun. 30, 2012 | 49,296 | 11,191 | 3,346 | 560 | 49,443 | -242 | -16,477 | 1,475 |
Balance (in shares) at Jun. 30, 2012 | 3,346 | |||||||
Balance at Dec. 31, 2011 | 47,896 | 11,137 | 3,308 | 560 | 49,165 | -17,603 | 1,329 | |
Balance (in shares) at Dec. 31, 2011 | 3,308 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 3,968 | 3,968 | ||||||
Other comprehensive income (loss) net of tax expense (benefit) of $1,667 and $75 for the six months ended June 30, 2013 and June 30, 2012, respectively | 1,029 | 1,029 | ||||||
Issuance of restricted stock | 33 | 239 | -272 | |||||
Issuance of restricted stock (in shares) | 33 | |||||||
Amortization of compensation on restricted stock | 120 | 120 | ||||||
Dividends: Common ($0.10 and $0.08 per share for the six months ended June 30, 2013 and June 31, 2012, respectively) | -605 | -605 | ||||||
Preferred | -475 | -475 | ||||||
Accretion | -52 | 148 | -200 | |||||
Dividend reinvestment plan | 93 | 11 | 82 | |||||
Dividend reinvestment plan (in shares) | 11 | |||||||
Balance at Dec. 31, 2012 | 54,183 | 5,227 | 50 | 61,615 | -152 | -14,915 | 2,358 | |
Balance (in shares) at Dec. 31, 2012 | 5,227 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 2,241 | 2,241 | ||||||
Other comprehensive income (loss) net of tax expense (benefit) of $1,667 and $75 for the six months ended June 30, 2013 and June 30, 2012, respectively | -3,238 | -3,238 | ||||||
Issuance of restricted stock | 60 | 493 | -553 | |||||
Issuance of restricted stock (in shares) | 60 | |||||||
Amortization of compensation on restricted stock | 112 | 112 | ||||||
Dividends: Common ($0.10 and $0.08 per share for the six months ended June 30, 2013 and June 31, 2012, respectively) | -519 | -519 | ||||||
Dividend reinvestment plan | 49 | 6 | 43 | |||||
Dividend reinvestment plan (in shares) | 6 | |||||||
Balance at Jun. 30, 2013 | $52,828 | $5,293 | $50 | $62,151 | ($593) | ($13,193) | ($880) | |
Balance (in shares) at Jun. 30, 2013 | 5,293 |
Consolidated_Statements_of_Cha3
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Consolidated Statements of Changes in Shareholders' Equity | |||||
Other comprehensive income, tax | $1,667 | $75 | $564 | $2,061 | $307 |
Dividends: Common stock (in dollars per share) | $0.10 | $0.08 | $0.16 | $0.16 | $0.16 |
Recovered_Sheet6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $2,241 | $1,727 |
Adjustments to reconcile net income to net cash provided in operating activities: | ||
Depreciation | 445 | 417 |
Premium amortization (discount accretion) | 2,208 | 1,298 |
Provision for loan losses | 250 | 301 |
Writedowns of other real estate owned | 21 | 206 |
Gain on sale of other real estate owned | -30 | -14 |
Sale of loans held-for-sale | 76,725 | 51,242 |
Originations of loans held-for-sale | -72,856 | -51,874 |
Amortization of intangibles | 96 | 102 |
(Gain) loss on sale of securities | -148 | 27 |
Other-than-temporary-impairment on securities | 200 | |
Net decrease in fair value option instruments and derivatives | 2 | 37 |
Loss on early extinguishment of debt | 141 | 121 |
Decrease in other assets | 1,047 | 1,217 |
Decrease in other liabilities | -763 | -543 |
Net cash provided from operating activities | 9,379 | 4,464 |
Cash flows from investing activities: | ||
Purchase of investment securities available-for-sale and other investments | -58,755 | -63,384 |
Maturity of investment securities available-for-sale | 28,187 | 17,443 |
Proceeds from sale of securities available-for-sale | 3,515 | 49,075 |
Proceeds from sale of other investments | 257 | 937 |
Increase in loans | -9,548 | -1,813 |
Proceeds from sale of other real estate owned | 1,214 | 3,130 |
Purchase of property and equipment | -442 | -385 |
Net cash provided (used) in investing activities | -35,572 | 5,003 |
Cash flows from financing activities: | ||
Increase in deposit accounts | 34,642 | 9,434 |
Decrease in securities sold under agreements to repurchase | -250 | -799 |
Advances from the Federal Home Loan Bank | 16,500 | 1,500 |
Repayment of advances from FHLB | -18,650 | -6,987 |
Dividends paid: Common Stock | -519 | -264 |
Preferred Stock | -337 | |
Dividend reinvestment plan | 49 | 44 |
Net cash provided from financing activities | 31,772 | 2,591 |
Net increase in cash and cash equivalents | 5,579 | 12,058 |
Cash and cash equivalents at beginning of period | 18,708 | 16,492 |
Cash and cash equivalents at end of period | 24,287 | 28,550 |
Cash paid during the period for: | ||
Interest | 2,314 | 3,351 |
Non-cash investing and financing activities: | ||
Unrealized gain (loss) on securities | -3,238 | 146 |
Transfer of loans to foreclosed property | $46 | $904 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||
Basis of Presentation | |||||||||
Basis of Presentation | Note 1 — Basis of Presentation | Note 1—ORGANIZATION AND BASIS OF PRESENTATION | |||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | The consolidated financial statements include the accounts of First Community Corporation (the "Company") and its wholly owned subsidiary, First Community Bank (the "Bank"). The Company owns all of the common stock of FCC Capital Trust I. All material intercompany transactions are eliminated in consolidation. The Company was organized on November 2, 1994, as a South Carolina corporation, and was formed to become a bank holding company. The Bank opened for business on August 17, 1995. FCC Capital Trust I is an unconsolidated special purpose subsidiary organized for the sole purpose of issuing trust preferred securities. | ||||||||
The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax impact, at the dates and for the periods indicated (in thousands). All amounts are net of income taxes. | |||||||||
Three months | |||||||||
ended June 30, | |||||||||
2013 | 2012 | ||||||||
Beginning Balance | $ | 2,104 | $ | 2,192 | |||||
Other comprehensive loss before reclassifications(a) | (2,896 | ) | (742 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss)(a) | (88 | ) | 25 | ||||||
Net current-period other comprehensive income loss | (2,984 | ) | (717 | ) | |||||
Ending Balance | $ | (880 | ) | $ | 1,475 | ||||
Six months | |||||||||
ended June 30, | |||||||||
2013 | 2012 | ||||||||
Beginning Balance | $ | 2,358 | $ | 1,329 | |||||
Other comprehensive loss before reclassifications(a) | (3,140 | ) | (4 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss)(a) | (98 | ) | 150 | ||||||
Net current-period other comprehensive income (loss) | (3,238 | ) | 146 | ||||||
Ending Balance | $ | (880 | ) | $ | 1,475 | ||||
(a) All other comprehensive income (loss) and reclassifications are related to available-for-sale securities. | |||||||||
In the opinion of management, all adjustments necessary to fairly present the consolidated financial position and consolidated results of operations have been made. All such adjustments are of a normal, recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements and notes thereto are presented in accordance with the instructions for Form 10-Q. The information included in the Company’s 2012 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2013, should be referred to in connection with these unaudited interim financial statements. | |||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||
Earnings Per Common Share | |||||||||||||||||||||||||
Earnings Per Common Share | Note 2 — Earnings Per Common Share | Note 19—EARNINGS PER SHARE | |||||||||||||||||||||||
The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: | The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: | ||||||||||||||||||||||||
Six months | Three months | ||||||||||||||||||||||||
Ended June 30, | Ended June 30, | Year ended December 31, | |||||||||||||||||||||||
(In thousands, except price per share) | 2013 | 2012 | 2013 | 2012 | (Amounts in thousands) | 2012 | 2011 | 2010 | |||||||||||||||||
Numerator (Net income available to common shareholders) | $ | 2,241 | $ | 1,390 | $ | 1,203 | $ | 760 | Numerator (Included in basic and diluted earnings per share) | $ | 3,292 | $ | 2,654 | $ | 1,190 | ||||||||||
Denominator | |||||||||||||||||||||||||
Weighted average common shares outstanding for: | Denominator | ||||||||||||||||||||||||
Basic earnings per share | 5,274 | 3,319 | 5,292 | 3,329 | Weighted average common shares outstanding for: | ||||||||||||||||||||
Dilutive securities: | Basic earnings common per share | 4,144 | 3,287 | 3,262 | |||||||||||||||||||||
Warrants — Treasury stock method | 38 | 24 | 37 | 28 | Dilutive securities: | ||||||||||||||||||||
Diluted earnings per share | 5,312 | 3,343 | 5,329 | 3,357 | Warrants—Treasury stock method | 28 | — | — | |||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 9.15 | $ | 7.63 | $ | 9.05 | $ | 7.99 | |||||||||||||||||
Diluted common share outstanding | 4,172 | 3,287 | 3,262 | ||||||||||||||||||||||
At June 30, 2013, there were 73,022 outstanding options at an average exercise price of $20.23. None of these options has an exercise price below the average market price of $9.05 for the three-month period ended June 30, 2013 or $9.15 for the six-month period ended June 30, 2013, and, therefore they are not deemed to be dilutive. In the fourth quarter of 2011, we issued $2.5 million in 8.75% subordinated notes maturing on December 16, 2019. On November 15, 2012, the subordinated notes were redeemed in full at par. Warrants for 107,500 shares of common stock at $5.90 per share were issued in connection with the issuance of the subordinated debt. These warrants expire December 16, 2019 and are included in dilutive securities in the table above. | |||||||||||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 7.98 | $ | 6.34 | $ | 5.78 | |||||||||||||||||||
For the years ended December 31, 2012, 2011 and 2010, options are not dilutive in calculating diluted earnings per share. In 2010, 2011, and 2012 the exercise price on all outstanding options exceeded the average market price for the year. | |||||||||||||||||||||||||
On December 16, 2011 there were 107,500 warrants issued in connection with the issuance $2.5 million in subordinated debt. (See Note 13) These warrants were not dilutive to earnings per share for the period ended December 31, 2011. As shown above, the warrants were dilutive for the period ended December 31, 2012. | |||||||||||||||||||||||||
Recovered_Sheet7
Investment Securities | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||||||||||
Investment Securities | Note 3—Investment Securities | Note 4—INVESTMENT SECURITIES | ||||||||||||||||||||||||||||||||||||||
The amortized cost and estimated fair values of investment securities are summarized below: | The amortized cost and estimated fair values of investment securities are summarized below: | |||||||||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE: | AVAILABLE-FOR-SALE: | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | (Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||
Gains | Losses | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||||||
June 30, 2013: | Gains | Losses | ||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,518 | $ | 1 | $ | 57 | $ | 1,462 | December 31, 2012: | |||||||||||||||||||||||||||||||
Mortgage-backed securities | 122,527 | 1,492 | 1,370 | 122,649 | Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | |||||||||||||||||||||||||||
Small Business Administration pools | 56,886 | 711 | 293 | 57,304 | Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | |||||||||||||||||||||||||||||||
State and local government | 41,753 | 108 | 1,939 | 39,922 | Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | |||||||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 2 | 42 | 2,309 | State and local government | 31,483 | 936 | 46 | 32,373 | |||||||||||||||||||||||||||||||
$ | 225,033 | $ | 2,314 | $ | 3,701 | $ | 223,646 | Corporate and other securities | 2,349 | 53 | 1 | 2,401 | ||||||||||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | $ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | ||||||||||||||||||||||||
Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | ||||||||||||||||||||||||||||||||||||
Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | December 31, 2011: | |||||||||||||||||||||||||||||||||||
State and local government | 31,483 | 936 | 46 | 32,373 | Government sponsored enterprises | $ | 31 | $ | 3 | $ | — | $ | 34 | |||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 53 | 1 | 2,401 | Mortgage-backed securities | 141,103 | 2,876 | 2,348 | 141,631 | |||||||||||||||||||||||||||||||
$ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | Small Business Administration pools | 35,889 | 634 | 44 | 36,479 | ||||||||||||||||||||||||||||
State and local government | 19,617 | 871 | — | 20,488 | ||||||||||||||||||||||||||||||||||||
During the six months ended June 30, 2013 and June 30, 2012, the Company received proceeds of $3.5 million and $49.1 million, respectively, from the sale of investment securities available-for-sale. Gross realized gains amounted to $148.4 thousand for the six months ended June 30, 2013 and there were no gross realized losses for the same period. For the six months ended June 30, 2012, gross realized gains amounted to $2.0 million and gross realized losses amounted to $2.1 million. During the three months ended June 30, 2013 and June 30, 2012, the Company received proceeds of $ 1.7 million and $44.8 million, respectively, from the sale of investment securities available-for-sale. Gross realized gains amounted to $133 thousand for the three months ended June 30, 2013 and there were no gross realized losses for the same period. For the three months ended June 30, 2012, gross realized gains amounted to $1.9 million and gross realized losses amounted to $1.9 million. | Corporate and other securities | 2,432 | 54 | 86 | 2,400 | |||||||||||||||||||||||||||||||||||
At June 30, 2013, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.0 million, mutual funds at $829.9 thousand, foreign debt of $59.5 thousand, and Corporate preferred stock in the amount of $416.8 thousand. At December 31, 2012, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.0 million, mutual funds at $884.5 thousand, foreign debt of $59.7 thousand, Federal Home Loan Mortgage Corporation preferred stock of $30.0 thousand and Corporate preferred stock in the amount of $416.8 thousand. | $ | 199,072 | $ | 4,438 | $ | 2,478 | $ | 201,032 | ||||||||||||||||||||||||||||||||
Other investments, at cost, include Federal Home Loan Bank (“FHLB”) stock in the amount of $2.3 million and $2.5 million at June 30, 2013 and December 31, 2012 respectively. | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2012, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.0 million, mutual funds at $884.5 thousand, foreign debt of $59.7 thousand, Federal Home Loan Mortgage Corporation preferred stock of $30.0 thousand and Corporate preferred stock in the amount of $416.7 thousand. At December 31, 2011, corporate and other securities available-for-sale included the following at fair value: corporate bonds at $1.4 million, mutual funds at $904.9 thousand, foreign debt of $59.6 thousand and Federal Home Loan Mortgage Corporation preferred stock of $20.9 thousand | ||||||||||||||||||||||||||||||||||||||||
During the three month period ended June 30, 2012 and during the three and six month periods ended June 30, 2013, the Company did not record any other-than-temporary impairment (OTTI) losses. During the six month period ended June 30, 2012, the Company recorded OTTI losses on available-for-sale securities as follows: | ||||||||||||||||||||||||||||||||||||||||
Other investments, at cost include Federal Home Loan Bank ("FHLB") stock in the amount of $2.5 million at December 31, 2012 and FHLB and Federal Reserve stock in the amount of $1.8 million and $3.8 million at December 31, 2011, respectively. | ||||||||||||||||||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||||||||||||||||||
ended June 30, | For the year ended December 31, 2012, proceeds from the sale of securities available-for-sale amounted to $55.8 million, gross realized gains amounted to $2.2 million and gross realized losses amounted to $2.1million. For the year ended December 31, 2011, proceeds from the sale of securities available-for-sale amounted to $56.0 million, gross realized gains amounted to $2.6 million and gross realized losses amounted to $2.0 million. For the year ended December 31, 2010, proceeds from the sale of securities available-for-sale amounted to $85.5 million, gross realized gains amounted to $2.5 million and gross realized losses amounted to $1.7 million. The tax provision applicable to the net realized gain was approximately $9.0 thousand, $201.0 thousand, and $289.0 thousand for 2012, 2011 and 2010, respectively. | |||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available-for- | The amortized cost and fair value of investment securities at December 31, 2012, by contractual maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. | ||||||||||||||||||||||||||||||||||||||
sale securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | Available-for-sale | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 200 | (Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||||||||||||
During 2013 and 2012, OTTIs occurred for which only a portion was attributed to credit loss and recognized in earnings. The remainder was reported in other comprehensive income. The following is an analysis of amounts relating to credit losses on debt securities recognized in earnings during the six months ended June 30, 2013 and 2012. | Due in one year or less | $ | 26,725 | $ | 26,722 | |||||||||||||||||||||||||||||||||||
Due after one year through five years | 83,068 | 84,630 | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Due after five years through ten years | 30,565 | 31,161 | ||||||||||||||||||||||||||||||||||||
Available | Available | Due after ten years | 59,569 | 60,932 | ||||||||||||||||||||||||||||||||||||
for | for | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Sale | Sale | $ | 199,927 | $ | 203,445 | ||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 271 | $ | 930 | ||||||||||||||||||||||||||||||||||||
Securities with an amortized cost of $29.0 million and fair value of $30.3 million at December 31, 2012, were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Securities with an amortized cost of $35.1 million and fair value of $36.6 million at December 31, 2011, were pledged to secure FHLB advances, public deposits, demand notes due the Treasury and securities sold under agreements to repurchase. | ||||||||||||||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | — | 173 | ||||||||||||||||||||||||||||||||||||||
The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||||||||||
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | — | 27 | ||||||||||||||||||||||||||||||||||||||
Other-than-temporary-impairment previously recognized on securities sold | — | (679 | ) | |||||||||||||||||||||||||||||||||||||
Realized losses during the period | (46 | ) | (136 | ) | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 225 | $ | 315 | December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||||||||
In evaluating the non-agency mortgage-backed securities, relevant assumptions, such as prepayment rate, default rate and loss severity on a loan level basis, are used in determining the expected recovery of the contractual cash flows. The balance of the underlying portfolio cash flows are evaluated using ongoing assumptions for loss severities, prepayment rates and default rates. The ongoing assumptions for average prepayment rate, default rate and severity used in the valuations were approximately 16.7%, 7.6%, and 50.9%, respectively. The underlying collateral on substantially all of these securities is fixed rate residential first mortgages located throughout the United States. The underlying collateral includes various percentages of owner-occupied as well as investment related single-family, 2-4 family and condominium residential properties. The securities were purchased at various discounts to par value. Based on the assumptions used in valuing the securities, the Company believes the existing discount and remaining subordinated collateral provide coverage against future credit losses on the downgraded securities for which no OTTI has been recognized. | Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | ||||||||||||||||||||||||||||
The following table shows gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position at June 30, 2013 and December 31, 2012. | Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | |||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | State and local government | 2,599 | 46 | — | — | 2,599 | 46 | |||||||||||||||||||||||||||||||
June 30, 2013 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | |||||||||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | |||||||||||||||||||||||||||
Government Sponsored Enterprises | $ | 1,444 | $ | 57 | $ | — | $ | — | $ | 1,444 | $ | 57 | ||||||||||||||||||||||||||||
Small Business Administration Pools | 21,213 | 289 | 882 | 4 | 22,095 | 293 | ||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | 53,766 | 1,330 | 3,118 | 35 | 56,884 | 1,365 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | 64 | 1 | 983 | 4 | 1,047 | 5 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | 871 | 41 | 50 | 1 | 921 | 42 | ||||||||||||||||||||||||||||||||||
State and local government | 29,518 | 1,939 | — | — | 29,518 | 1,939 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
Total | $ | 106,876 | $ | 3,657 | $ | 5,033 | $ | 44 | $ | 111,909 | $ | 3,701 | December 31, 2011 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | Government Sponsored Enterprise mortgage-backed securities | $ | 25,113 | $ | 163 | $ | 3,269 | $ | 24 | $ | 28,382 | $ | 187 | |||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | Small Business Administration pools | 6,108 | 38 | 2,203 | 6 | 8,311 | 44 | ||||||||||||||||||||||||||||||
Available-for-sale securities: | Non-agency mortgage-backed securities | 574 | 3 | 13,275 | 2,158 | 13,849 | 2,161 | |||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | Corporate bonds and other | 940 | 60 | 524 | 26 | 1,464 | 86 | |||||||||||||||||||||
Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | Total | $ | 32,735 | $ | 264 | $ | 19,271 | $ | 2,214 | $ | 52,006 | $ | 2,478 | |||||||||||||||||||||
State and local government | 2,599 | 46 | — | — | 2,599 | 46 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | ||||||||||||||||||||||||||||||||||
Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | Government Sponsored Enterprise, Mortgage Backed Securities: Throughout 2008 and continuing through 2012, the bond markets and many institutional holders of bonds came under a great deal of stress partially as a result of increasing delinquencies in the mortgage lending market. At December 31, 2012, the Company owns mortgage-backed securities ("MBSs") including collateralized mortgage obligations ("CMOs") with an amortized cost of $107.3 million and approximate fair value of $109.4 million issued by government sponsored enterprises ("GSEs"). Current economic conditions have impacted MBSs issued by GSEs such as the Federal Home Loan Mortgage Corporation (the "FHLMC") and the Federal National Mortgage Association (the "FNMA"). These entities have experienced increasing delinquencies in the underlying loans that make up the MBSs and CMOs. As of December 31, 2012 and 2011, all of the MBSs issued by GSEs are classified as "Available for Sale." Unrealized losses on certain of these investments are not considered to b e "other than temporary," and we have the intent and ability to hold these until they mature or recover the current book value. The contractual cash flows of the investments are guaranteed by the GSE. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company's investment. Because the Company does not intend to sell these securities and it is more likely than not the Company will not be required sell these securities before a recovery of its amortized cost, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at December 31, 2012. | |||||||||||||||||||||||||||
Government Sponsored Enterprise, Mortgage-Backed Securities: At June 30, 2013, the Company owned mortgage-backed securities (“MBSs”), including collateralized mortgage obligations (“CMOs”), with an amortized cost of $119.9 million and approximate fair value of $120.0 million issued by government sponsored enterprises (“GSEs”). As of June 30, 2013 and December 31, 2012, all of the MBSs issued by GSEs were classified as “Available for Sale.” Unrealized losses on certain of these investments are not considered to be “other than temporary,” and we have the intent and ability to hold these until they mature or recover the current book value. The contractual cash flows of the investments are guaranteed by the GSE. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the Company does not intend to sell these securities and it is more likely than not the Company will not be required sell these securities before a recovery of its amortized cost, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at June 30, 2013. | Non-agency Mortgage Backed Securities: The Company also holds private label mortgage-backed securities ("PLMBSs"), including CMOs, at December 31, 2012 with an amortized cost of $3.1 million and approximate fair value of $2.7 million. Management monitors each of these securities on a quarterly basis to identify any deterioration in the credit quality, collateral values and credit support underlying the investments. | |||||||||||||||||||||||||||||||||||||||
Non-agency mortgage—backed securities: The Company also held private label mortgage-backed securities (“PLMBSs”), including CMOs, at June 30, 2013 with an amortized cost of $2.7 million and approximate fair value of $2.7 million. Management monitors each of these securities on a quarterly basis to identify any deterioration in the credit quality, collateral values and credit support underlying the investments. | During the year ended December 31, 2012, the Company identified two PLMBs with a fair value of $2.5 million that it considered other-than-temporarily-impaired. As prescribed by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 320-10-65, the Company recognized an impairment charge in earnings of $199.8 thousand (credit component) during year ended December 31, 2012. The $199.8 thousand represents the estimated credit losses on these securities for the year ended December 31, 2012. One of the securities identified as other-than-temporarily-impaired during the year ended December 31, 2012 was subsequently sold after the impairment was recognized. | |||||||||||||||||||||||||||||||||||||||
During the three and six months ended June 30, 2013, no OTTI charges were recorded in earnings for the PLMBS portfolio. During the six months ended June 30, 2012, the Company identified two PLMBS with a fair value of $2.5 million that it considered other-than-temporarily-impaired. As prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10-65, the Company recognized an impairment charge in earnings of $199.8 thousand (credit component) during the six months ended June 30, 2012. The $199.8 thousand represents the estimated credit losses on these securities for the six months ended June 30, 2012. One of the securities identified as other-than-temporarily-impaired during the six months ended June 30, 2012 was subsequently sold after the impairment was recognized. The credit losses were estimated by projecting the expected cash flows estimating prepayment speeds, increasing defaults and collateral loss severities. The credit loss portion of the impairment charge represents the difference between the present value of the expected cash flows and the amortized cost basis of the securities. During the three months ended June 30, 2012, no OTTI charges were recorded in earnings for the PLMBS portfolio. | For the year ended December 31, 2011, we recognized impairment charges on three PLMBs investments whereby the credit component was $293 thousand recognized through earnings and the amount recognized through other comprehensive income amounted to $(35) thousand. For the year ended December 31, 2010, we recognized impairment charges on nine PLMBs investments whereby the credit component was $477 thousand recognized through earnings and the amount recognized through other comprehensive income amounted to $2.9 million. For the year ended December 31, 2009, we recognized the credit impairment charges of $491 thousand as the credit component on five PLMBs securities through earnings and $1.7 million through other comprehensive income. The PLMBs continue to experience high levels of delinquencies in the underlying loans that make up the PLMBSs, and as a result we could experience additional OTTI in the future. | |||||||||||||||||||||||||||||||||||||||
The following table summarizes as of June 30, 2013 the number of CUSIPs, par value, carrying value and fair value of the non-agency MBSs/CMOs by credit rating. The credit rating reflects the lowest credit rating by any major rating agency. | As prescribed by FASB ASC 320-10-35 for the year ended December 31, 2012 and 2011, the Company recognized the credit component of OTTI on debt securities in earnings and the non-credit component in other comprehensive income (OCI) for those securities in which the Company does not intend to sell the security and it is more likely than not the Company will not be required to sell the securities prior to recovery. | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Corporate Bonds: Corporate bonds held by the Company are reviewed on a quarterly basis to identify downgrades by rating agencies as well as deterioration of the underlying collateral or the issuer's ability to service the debt obligation. As of December 31, 2012, the Company owns one corporate bond which is rated above investment grade. The Company does not consider this investment to be OTTI. | |||||||||||||||||||||||||||||||||||||||
Credit | Number | Par | Amortized | Fair | During the twelve months ended December 31, 2011, the Company recorded $4.0 thousand in OTTI charges on a preferred term security. During the third quarter of 2011, the Company sold this security and recorded an additional realized loss of $455 thousand. This loss was offset by the sale of two municipal bonds with a recorded gain of $488 thousand. During the fourth quarter of 2011, the Company sold an SLM Corporation bond that was rated below investment grade with a book value of $1 million and recorded a $73.0 thousand loss. | |||||||||||||||||||||||||||||||||||
Rating | of | Value | Cost | Value | ||||||||||||||||||||||||||||||||||||
CUSIPs | State and Local Governments and Other: Management monitors these securities on a quarterly basis to identify any deterioration in the credit quality. Included in the monitoring is a review of the credit rating, a financial analysis and certain demographic data on the underlying issuer. The Company does not consider these securities to be OTTI at December 31, 2012. | |||||||||||||||||||||||||||||||||||||||
AA | 2 | $ | 198 | $ | 198 | $ | 201 | |||||||||||||||||||||||||||||||||
A1 | 1 | 324 | 324 | 343 | During the years ended December 31, 2012, December 31, 2011 and December 31, 2010, the Company recorded OTTI losses on held-to-maturity and available-for-sale securities as follows: | |||||||||||||||||||||||||||||||||||
A3 | 1 | 281 | 281 | 283 | ||||||||||||||||||||||||||||||||||||
BBB | 3 | 240 | 240 | 237 | ||||||||||||||||||||||||||||||||||||
Baa1 | 1 | 65 | 65 | 64 | Year ended | |||||||||||||||||||||||||||||||||||
Baa2 | 1 | 33 | 33 | 33 | December 31, | |||||||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 1,847 | 1,528 | 1,542 | 2012 | |||||||||||||||||||||||||||||||||||
Total | 13 | $ | 2,988 | $ | 2,669 | $ | 2,703 | (Dollars in thousands) | Available- | |||||||||||||||||||||||||||||||
for-sale | ||||||||||||||||||||||||||||||||||||||||
Corporate Bonds: Corporate bonds held by the Company are reviewed on a quarterly basis to identify downgrades by rating agencies as well as deterioration of the underlying collateral or the issuer’s ability to service the debt obligation. As of June 30, 2013, the Company owns one corporate bond which is rated above investment grade. The Company does not consider this investment to be OTTI. | securities | |||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | ||||||||||||||||||||||||||||||||||||||
Small Business Administration Pools: These pools are guaranteed pass-thru with the full faith and credit of the United States government. Because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider the investments to be OTTI at June 30, 2013. | OTTI recognized in other comprehensive income (non-credit component) | 215 | ||||||||||||||||||||||||||||||||||||||
State and Local Governments and Other: Management monitors these securities on a quarterly basis to identify any deterioration in the credit quality. Included in the monitoring is a review of the credit rating, a financial analysis and certain demographic data on the underlying issuer. The Company does not consider these securities to be OTTI at June 30, 2013. | Net impairment losses recognized in earnings (credit component) | $ | 200 | |||||||||||||||||||||||||||||||||||||
The amortized cost and fair value of investment securities at June 30, 2013 by contractual maturity are as follows. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. MBSs are based on average life at estimated prepayment speeds. | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Value | Year ended | ||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 20,260 | $ | 20,442 | December 31, | |||||||||||||||||||||||||||||||||||
Due after one year through five years | 86,248 | 86,729 | 2011 | |||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 88,107 | 86,334 | (Dollars in thousands) | Available- | ||||||||||||||||||||||||||||||||||||
Due after ten years | 30,418 | 30,141 | for-sale | |||||||||||||||||||||||||||||||||||||
$ | 225,033 | $ | 223,646 | securities | ||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 262 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | (35 | ) | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 297 | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Held-to- | Available- | Total | |||||||||||||||||||||||||||||||||||||
maturity | for-sale | |||||||||||||||||||||||||||||||||||||||
mortgage- | securities | |||||||||||||||||||||||||||||||||||||||
backed | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 108 | $ | 4,310 | 4,418 | |||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | — | 2,858 | 2,858 | |||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 108 | $ | 1,452 | $ | 1,560 | ||||||||||||||||||||||||||||||||||
During 2012, 2011 and 2010, OTTIs occurred for which only a portion is attributed to credit loss and recognized in earnings. The remainder was reported in other comprehensive income. The following is a roll forward analysis of amounts relating to credit losses on debt securities recognized in earnings during the twelve months ended December 31, 2012, December 31, 2011 and December 31, 2010. | ||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2012, there were two non-agency mortgage backed securities with OTTI in which $200 thousand of OTTI representing the credit loss was recognized in earnings. The Company uses a third party to obtain information about the structure in order to assist in determining how the underlying cash flows will be distributed to each security. The following is a rollforward analysis of amounts relating to credit losses recognized in earnings: | ||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available | Available | Available | Held to | ||||||||||||||||||||||||||||||||||||
for Sale | for Sale | for Sale | maturity | |||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 930 | $ | 2,143 | $ | 545 | $ | 132 | ||||||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | 173 | 50 | 291 | 98 | ||||||||||||||||||||||||||||||||||||
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | 27 | 247 | 1,161 | 10 | ||||||||||||||||||||||||||||||||||||
Realized losses during the period | (180 | ) | (1,510 | ) | (94 | ) | — | |||||||||||||||||||||||||||||||||
Other-than-temporary impairment previously recognized in securities sold | (679 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Transfer to available-for-sale | — | — | 240 | (240 | ) | |||||||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 271 | $ | 930 | $ | 2,143 | $ | — | ||||||||||||||||||||||||||||||||
In evaluating the non-agency mortgage backed securities, relevant assumptions, such as prepayment rate, default rate and loss severity on a loan level basis, are used in determining the expected recovery of the contractual cash flows. The balance of the underlying portfolio cash flows are evaluated using ongoing assumptions for loss severities, prepayment rates and default rates. The ongoing assumptions for average prepayment rate, default rate and severity used in the valuations were approximately 13.7%, 8.0%, and 50.4%, respectively. The underlying collateral on substantially all of these securities are fixed rate residential first mortgages located throughout the United States. The underlying collateral includes various percentages of owner-occupied, as well as, investment related single-family, 2-4 family and condominium residential properties. The securities were purchased at various discounts to par value. Based on the assumptions used in valuing the securities, the existing discount and remaining subordinated collateral provide coverage against future credit losses on the downgraded securities for which no OTTI has been recognized. | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes as of December 31, 2012 the number of CUSIPs, carrying value and fair value of the non-agency mortgage-backed securities/CMOs by credit rating. The credit rating reflects the lowest credit rating by any major rating agency. All non-agency mortgage-backed /CMO securities are in the super senior or senior tranche. | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Credit Rating | Number | Par | Amortized | Fair | ||||||||||||||||||||||||||||||||||||
of | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
CUSIPs | ||||||||||||||||||||||||||||||||||||||||
AA | 2 | $ | 264 | $ | 264 | $ | 268 | |||||||||||||||||||||||||||||||||
A1 | 1 | 380 | 380 | 374 | ||||||||||||||||||||||||||||||||||||
A3 | 1 | 320 | 320 | 318 | ||||||||||||||||||||||||||||||||||||
A | 2 | 72 | 72 | 71 | ||||||||||||||||||||||||||||||||||||
BBB | 1 | 231 | 231 | 225 | ||||||||||||||||||||||||||||||||||||
Baa1 | 1 | 71 | 71 | 72 | ||||||||||||||||||||||||||||||||||||
Baa2 | 1 | 97 | 97 | 96 | ||||||||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 2,008 | 1,653 | 1,291 | ||||||||||||||||||||||||||||||||||||
Total | 13 | $ | 3,443 | $ | 3,088 | $ | 2,715 | |||||||||||||||||||||||||||||||||
Recovered_Sheet8
Loans | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Note 4—Loans | Note 5—LOANS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans summarized by category as of June 30, 2013 and December 31, 2012 are as follows: | Loans summarized by category are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 20,908 | $ | 20,924 | (Dollars in thousands) | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Commercial, financial and agricultural | $ | 20,924 | $ | 20,608 | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | 15,232 | 13,052 | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 38,363 | 38,892 | Construction | 13,052 | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 233,769 | 226,575 | Mortgage-residential | 38,892 | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage-commercial | 226,575 | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 25,437 | 27,173 | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 7,380 | 5,495 | Home equity | 27,173 | 27,976 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 341,089 | $ | 332,111 | Other | 5,495 | 5,335 | |||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2013 and December 31, 2012, there were $5.8 million and $9.7 million, respectively, of residential mortgage loans held for sale at fair value. These loans are originated with firm purchase commitments from various investors at the time the loans are closed. Generally, funds are received and the loans transferred to the investors within three to seven business days. | Total | $ | 332,111 | $ | 324,311 | |||||||||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses for the six months and three months ended June 30, 2013 and 2012 was as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses was as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,621 | $ | 4,699 | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 250 | 301 | Balance at the beginning of year | $ | 4,699 | $ | 4,911 | $ | 4,854 | |||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (523 | ) | (307 | ) | Provision for loan losses | 496 | 1,420 | 1,878 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 91 | 49 | Charged off loans | (742 | ) | (1,696 | ) | (1,948 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | Recoveries | 168 | 64 | 127 | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Balance at end of year | $ | 4,621 | $ | 4,699 | $ | 4,911 | |||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,534 | $ | 4,745 | The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the years ended December 31, 2012 and December 31, 2011 follows: | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 100 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (209 | ) | (95 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 14 | 21 | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||||||||||||||
Residential | Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||
The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the six months ended June 30, 2013 and the year ended December 31, 2012 is as follows: | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Beginning balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | ||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Charge-offs | 258 | — | 112 | 293 | — | 79 | — | 742 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | Recoveries | 42 | — | 86 | — | 3 | 37 | — | 168 | |||||||||||||||||||||||||||||||||||
2013 | Provisions | 223 | — | (253 | ) | 140 | (124 | ) | 2 | 508 | 496 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2012 | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | Ending balance | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | |||||||||||||||||||
Charge-offs | 7 | — | 36 | 397 | 44 | 39 | — | 523 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 20 | — | 62 | — | 1 | 8 | — | 91 | Ending balances: | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (87 | ) | 25 | 58 | 157 | (131 | ) | 110 | 118 | 250 | Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | Collectively evaluated for impairment | 338 | — | 235 | 1,322 | 400 | 17 | 2,309 | 4,621 | |||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Ending balance-total | $ | 20,924 | $ | 13,052 | $ | 38,892 | $ | 226,575 | $ | 27,173 | $ | 5,495 | $ | — | $ | 332,111 | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | — | $ | — | $ | 5 | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 37 | — | 357 | 5,772 | — | 10 | — | 6,176 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 264 | 25 | 314 | 1,082 | 226 | 96 | 2,427 | 4,434 | Collectively evaluated for impairment | 20,887 | 13,052 | 38,535 | 220,803 | 27,173 | 5,485 | — | 325,935 | |||||||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 20,908 | $ | 15,232 | $ | 38,363 | $ | 233,769 | $ | 25,437 | $ | 7,380 | $ | — | $ | 341,089 | ||||||||||||||||||||||||||||||||||||
Ending balances: | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 84 | — | 721 | 5,759 | — | 7 | — | 6,571 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||||||||||
Residential | Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 20,824 | $ | 15,232 | $ | 37,642 | $ | 228,010 | $ | 25,437 | $ | 7,373 | $ | — | $ | 334,518 | 2011 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Beginning balance | $ | 681 | $ | 905 | $ | 465 | $ | 1,404 | $ | 325 | $ | 88 | $ | 1,043 | $ | 4,911 | ||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Charge-offs | 265 | — | 186 | 861 | 285 | 99 | — | 1,696 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | Recoveries | 31 | — | 5 | — | 5 | 23 | — | 64 | |||||||||||||||||||||||||||||||||||
2012 | Provisions | (116 | ) | (905 | ) | 230 | 932 | 476 | 45 | 758 | 1,420 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2011 | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | Ending balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | |||||||||||||||||||
Charge-offs | 62 | — | 30 | 178 | — | 37 | — | 307 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 25 | — | 9 | — | 2 | 13 | — | 49 | Ending balances: | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (45 | ) | — | 106 | 16 | (78 | ) | 12 | 290 | 301 | Individually evaluated for impairment | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 2 | |||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | Collectively evaluated for impairment | 330 | — | 514 | 1,474 | 521 | 57 | 1,801 | 4,697 | |||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Ending balance-total | $ | 20,608 | $ | 11,767 | $ | 38,337 | $ | 220,288 | $ | 27,976 | $ | 5,335 | $ | — | $ | 324,311 | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 45 | — | 622 | 8,667 | — | 19 | — | 9,353 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 249 | — | 599 | 1,313 | 445 | 45 | 2,091 | 4,742 | Collectively evaluated for impairment | $ | 20,563 | $ | 11,767 | $ | 37,715 | $ | 211,621 | $ | 27,976 | $ | 5,316 | $ | — | $ | 314,958 | |||||||||||||||||||||||||||
Loans receivable: | Loans outstanding and available lines of credit to bank directors, executive officers and their related business interests amounted to $10.9 million and $11.3 million at December 31, 2012 and 2011, respectively. Repayments on these loans during the year ended December 31, 2012 were $855 thousand, and loans made amounted to $230 thousand. Repayments on these loans during the year ended December 31, 2011 were $577 thousand, and loans made amounted to $1.2 million. Related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 19,741 | $ | 12,302 | $ | 38,779 | $ | 221,880 | $ | 26,945 | $ | 5,266 | $ | — | $ | 324,913 | ||||||||||||||||||||||||||||||||||||
The following table presents at December 31, 2012, 2011 and 2010, loans individually evaluated and considered impaired under FAS ASC 310 "Accounting by Creditors for Impairment of a Loan." Impairment includes performing troubled debt restructurings. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 24 | — | 581 | 8,650 | — | 28 | — | 9,283 | ||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 19,717 | $ | 12,302 | $ | 38,198 | $ | 213,230 | $ | 26,945 | $ | 5,238 | $ | — | $ | 315,630 | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||
Total loans considered impaired at year end | $ | 6,176 | $ | 9,353 | $ | 9,587 | ||||||||||||||||||||||||||||||||||||||||||||||
Loans outstanding to bank directors, executive officers and their related business interests amounted to $9.7 million and $11.3 million at June 30, 2013 and June 30, 2012, respectively. Repayments on these loans during the six months ended June 30, 2013 were $2.1 million and loans made amounted to $500 thousand. Repayments on these loans during the six months ended June 30, 2012 were $208 thousand and loans made amounted to $77 thousand. Related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. | Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | $ | — | $ | 148 | $ | 378 | ||||||||||||||||||||||||||||||||||||||||||||||
The detailed activity in the allowance for loan losses as of and for the three months ended June 30, 2013 and the three months ended June 30, 2012 is as follows: | Related allowance | $ | — | $ | 2 | $ | 96 | |||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | $ | 6,176 | $ | 9,205 | $ | 9,209 | ||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Average impaired loans | $ | 6,704 | $ | 9,926 | $ | 10,576 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Amount of interest earned during period of impairment | $ | 179 | $ | 397 | $ | 323 | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2013 | The following tables are by loan category and present at December 31, 2012 and December 31, 2011 loans individually evaluated and considered impaired under FAS ASC 310 "Accounting by Creditors for Impairment of a Loan." Impairment includes performing troubled debt restructurings. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2013 | $ | 409 | $ | 21 | $ | 199 | $ | 1,075 | $ | 236 | $ | 78 | $ | 2,516 | $ | 4,534 | ||||||||||||||||||||||||||||||||||||
Charge-offs | — | — | 32 | 162 | 2 | 13 | — | 209 | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||||
Recoveries | 9 | — | 1 | — | 1 | 3 | — | 14 | December 31, 2012 | Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||||||||||||
Provisions | (154 | ) | 4 | 151 | 169 | (9 | ) | 28 | (89 | ) | 100 | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | With no allowance recorded: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | Mortgage-residential | 357 | 381 | — | 442 | 1 | ||||||||||||||||||||||||||||||||||||||
2012 | Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | ||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2012 | $ | 307 | $ | — | $ | 500 | $ | 1,430 | $ | 566 | $ | 53 | $ | 1,889 | $ | 4,745 | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||
Charge-offs | 62 | — | 17 | — | — | 16 | — | 95 | Other | 10 | 10 | — | 21 | — | ||||||||||||||||||||||||||||||||||||||
Recoveries | 13 | — | 2 | — | — | 6 | — | 21 | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (9 | ) | — | 114 | (117 | ) | (121 | ) | 2 | 202 | 71 | Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | Real estate: | |||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
The following table presents at June 30, 2013 and December 31, 2012 loans individually evaluated and considered impaired under FAS ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings. | Mortgage-residential | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total loans considered impaired | $ | 6,571 | $ | 6,176 | Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired for which there is a related allowance for loan loss: | Total: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | 57 | — | Commercial | 37 | 50 | — | 53 | — | ||||||||||||||||||||||||||||||||||||||||||||
Related allowance | 5 | — | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | 6,514 | 6,176 | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Average impaired loans | 7,719 | 6,704 | Mortgage-residential | 357 | 381 | — | 442 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables are by loan category and present at June 30, 2013, June, 2012 and December 31, 2012 loans individually evaluated and considered impaired under FAS ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings. | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | $ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | $ | — | ||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 664 | 679 | — | 749 | 15 | 744 | 12 | December 31, 2011 | Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||||||
Consumer: | With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Commercial | $ | 12 | $ | 19 | $ | — | $ | 21 | $ | — | ||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Mortgage-residential | 622 | 650 | — | 656 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | Mortgage-commercial | 8,552 | 8,975 | — | 9,066 | 382 | |||||||||||||||||||||||||||||||||||||||
Real estate: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 57 | 57 | 5 | 56 | 7 | 58 | 2 | Other | 19 | 19 | — | 30 | 1 | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Commercial | 33 | 33 | 1 | 36 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Mortgage-commercial | 115 | 115 | 1 | 117 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | Consumer: | |||||||||||||||||||||||||||||||||||||||
Real estate: | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 721 | 736 | 5 | 805 | 22 | 802 | 14 | Total: | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Commercial | 45 | 52 | 1 | 57 | 2 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | Mortgage-residential | 622 | 650 | — | 656 | 4 | ||||||||||||||||||||||||||||||||||||||||
$ | 6,571 | $ | 7,256 | $ | 5 | $ | 7,719 | $ | 127 | $ | 7,847 | $ | 30 | Mortgage-commercial | 8,667 | 9,090 | 1 | 9,183 | 390 | |||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Three months ended | Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | Other | 19 | 19 | — | 30 | 1 | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | $ | 9,353 | $ | 9,811 | $ | 2 | $ | 9,926 | $ | 397 | |||||||||||||||||||||||||||||||||||
With no allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | ||||||||||||||||||||||||||||||||||||||
Real estate: | The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be "Pass" rated loans. As of December 31, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of December 31, 2012 and December 31, 2011, no loans were classified as doubtful. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | (Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | — | — | December 31, 2012 | Mention | |||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | — | Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | |||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Mortgage—residential | 36,493 | 1,677 | 722 | — | 38,892 | |||||||||||||||||||||||||||||||||||||||
Mortgage—commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | Home Equity | 26,604 | 124 | 445 | — | 27,173 | ||||||||||||||||||||||||||||||||
Real estate: | Other | 5,475 | 3 | 17 | — | 5,495 | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | ||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | |||||||||||||||||||||||||||||||||||||||||||||
$ | 9,283 | $ | 9,750 | $ | — | $ | 10,316 | $ | 144 | $ | 12,446 | $ | 70 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | December 31, 2011 | Mention | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Commercial, financial & agricultural | $ | 19,827 | $ | 499 | $ | 282 | $ | — | $ | 20,608 | ||||||||||||||||||||||||||||||||||||
December 31, 2012 | Investment | Balance | Allowance | Investment | Recognized | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | Construction | 6,764 | — | 5,003 | — | 11,767 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | Mortgage—residential | 37,063 | 305 | 969 | — | 38,337 | ||||||||||||||||||||||||||||||||||||
Real estate: | Mortgage—commercial | 200,984 | 8,009 | 11,295 | — | 220,288 | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | Home Equity | 27,692 | 38 | 246 | — | 27,976 | |||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | Other | 5,311 | 5 | 19 | — | 5,335 | |||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | Total | $ | 297,641 | $ | 8,856 | $ | 17,814 | $ | — | $ | 324,311 | ||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | At December 31, 2012 and 2011, non-accrual loans totaled $4.7 million and $5.4 million, respectively. The gross interest income which would have been recorded under the original terms of the non-accrual loans amounted to $352 thousand and $224 thousand in 2012 and 2011, respectively. Interest recorded on non-accrual loans in 2012 and 2011 amounted to $112 thousand and $163 thousand, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Troubled debt restructurings ("TDRs") that are still accruing are included in impaired loans at December 31, 2012 and 2011 amounted to $1.5 million and $3.9 million, respectively. Interest earned during 2012 and 2011 on these loans amounted to $123 thousand and $234 thousand, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | Loans greater than 90 days delinquent and still accruing interest at December 31, 2012 and 2011 amounted to $55 thousand and $25 thousand, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | The following tables are by loan category and present loans past due and on non-accrual status as of December 31, 2012 and December 31, 2011: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | |||||||||||||||||||||||||||||||||||||||||||||
Total: | December 31, 2012 | Past Due | Past Due | 90 Days and | Due | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 37 | 50 | — | 53 | — | Accruing | ||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | |||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | Construction | — | — | — | — | — | 13,052 | 13,052 | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | Mortgage—residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage—commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | ||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | |||||||||||||||||||||||||||||||||||||||
$ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | |||||||||||||||||||||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: | Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | |||||||||||||||||||||||||||||||||||||
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | (Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2011 | Past Due | Past Due | 90 Days and | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2013 and December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of June 30, 2013 and December 31, 2012, no loans were classified as doubtful. | Accruing | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 147 | $ | 123 | $ | — | $ | 12 | $ | 282 | $ | 20,326 | $ | 20,608 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Pass | Mention | Substandard | Doubtful | Total | Construction | — | — | — | — | — | 11,767 | 11,767 | |||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,741 | $ | 52 | $ | 115 | $ | — | $ | 20,908 | Mortgage—residential | 391 | 95 | — | 623 | 1,109 | 37,228 | 38,337 | ||||||||||||||||||||||||||||||||||
Real estate: | Mortgage—commercial | 1,382 | 966 | 25 | 4,749 | 7,122 | 213,166 | 220,288 | ||||||||||||||||||||||||||||||||||||||||||||
Construction | 12,182 | 1,222 | 1,828 | — | 15,232 | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 35,900 | 1,186 | 1,277 | — | 38,363 | Home equity | 45 | — | — | — | 45 | 27,931 | 27,976 | |||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 217,627 | 5,899 | 10,243 | — | 233,769 | Other | 42 | 18 | — | 19 | 79 | 5,256 | 5,335 | |||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 25,156 | 139 | 142 | — | 25,437 | Total | $ | 2,007 | $ | 1,202 | $ | 25 | $ | 5,403 | $ | 8,637 | $ | 315,674 | $ | 324,311 | ||||||||||||||||||||||||||||||||
Other | 7,357 | 14 | 9 | — | 7,380 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 318,963 | $ | 8,512 | $ | 13,614 | $ | — | $ | 341,089 | ||||||||||||||||||||||||||||||||||||||||||
As a result of adopting the amendments in ASU 2011-02, the Bank reassessed all restructurings that occurred on or after the beginning of the fiscal year of adoption (January 1, 2011) to determine whether they are considered TDRs under the amended guidance. The Bank identified as TDRs certain loans for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying those loans as TDRs, the Bank identified them as impaired under the guidance in ASC 310-10-35. The amendments in ASU 2011-02 require prospective application of the impairment measurement guidance in ASC 310-10-35 for those loans newly identified as impaired. At December 31, 2012, the recorded investment in loans for which the allowance was previously measured under a general allowance methodology and are now impaired under ASC 310-10-35 was $3.3 million, and no allowance for loan losses was associated with those loans. At December 31, 2011, the recorded investment in loans for which the allowance was previously measured under a general allowance methodology and are now impaired under ASC 310-10-35 was $7.7 million, and a $2 thousand allowance for loan losses was associated with those loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | |||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Pass | Mention | Substandard | Doubtful | Total | The following table, by loan category, present loans determined to be TDRs during the twelve month period ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | For the twelve months ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 36,493 | 1,677 | 722 | — | 38,892 | Troubled Debt | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||
Consumer: | (Dollars in thousands) | Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 26,604 | 124 | 445 | — | 27,173 | Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||
Other | 5,475 | 3 | 17 | — | 5,495 | Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | Mortgage—Commercial | 1 | $ | 40 | $ | 40 | ||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 40 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2013 and December 31, 2012, non-accrual loans totaled $6.0 million and $4.7 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that are still accruing and included in impaired loans at June 30, 2013 and December 31, 2012 amounted to $593 thousand and $1.5 million, respectively. Troubled debt restructurings in nonaccrual status at June 30, 2013 and December 31, 2012 amounted to $2.2 million and $1.8 million, respectively. | Mortgage—Commercial | 2 | $ | 596 | $ | 596 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans greater than ninety days delinquent and still accruing interest at December 31, 2012 amounted to $55 thousand. There were no loans greater than ninety days delinquent and still accruing interest at June 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 636 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
The following tables are by loan category and present loans past due and on non-accrual status as of June 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | During the twelve month ended December 31, 2012, the Company modified three loans that were considered to be TDRs. The payment and interest rate were lowered for two of these loans and the payment was modified to interest only for one loan. | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Days | Past Due | than 90 | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | The following table, by loan category, present loans determined to be TDRs during the twelve month period ended December 31, 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 16 | $ | — | $ | — | $ | 84 | $ | 100 | $ | 20,808 | $ | 20,908 | ||||||||||||||||||||||||||||||||||||||
Real estate: | For the twelve months ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 15,232 | 15,232 | Troubled Debt | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 514 | 70 | — | 663 | 1,247 | 37,116 | 38,363 | Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 1,448 | 464 | — | 5,224 | 7,136 | 226,633 | 233,769 | (Dollars in thousands) | Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||||
Consumer: | Investment | Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 170 | 21 | — | — | 191 | 25,246 | 25,437 | Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||
Other | 53 | 3 | — | 7 | 63 | 7,317 | 7,380 | Mortgage—Commercial | 5 | $ | 741 | $ | 741 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 2,201 | $ | 558 | $ | — | $ | 5,978 | $ | 8,737 | $ | 332,352 | $ | 341,089 | Commercial & Industrial | 2 | 43 | 43 | ||||||||||||||||||||||||||||||||||
Total nonaccrual | 7 | $ | 784 | $ | 784 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Days | Past Due | than 90 | Due | Accrual | |||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | Mortgage—Commercial | 1 | $ | 3,138 | $ | 3,138 | |||||||||||||||||||||||||||||||||||||||||||||
Accruing | Total Accrual | 1 | $ | 3,138 | $ | 3,138 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||
Real estate: | Total TDRs | 8 | $ | 3,922 | $ | 3,922 | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 13,052 | 13,052 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | During the twelve months ended December 31, 2011, the Bank modified eight loans that were considered to be TDRs. The payment and interest rate were lowered for six of these loans, the payment was lowered for one loan and for one loan the business and guarantor were released. One TDR that had been restructured with a lower payment in 2011 was paid out during the fourth quarter of 2011. | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | The following table, by loan category, presents loans determined to be TDRs in the twelve months ended December 31, 2011 that had payment defaults during the period ended December 31, 2011. There were no loans determined to be TDRs in the twelve months ended December 31, 2012 that subsequently defaulted during the twelve month period ended December 31, 2012. Defaulted loans are those loans that are greater than 89 days past due. | ||||||||||||||||||||||||||||||||||||||||||||
Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | ||||||||||||||||||||||||||||||||||||||
For the twelve months | ||||||||||||||||||||||||||||||||||||||||||||||||||||
As a result of adopting the amendments in Accounting Standards Update (ASU) 2011-02 (Receivables-Topic 310), the Company reassessed all restructurings that occurred on or after the beginning of the fiscal year of adoption (January 1, 2011) to determine whether they are considered TDRs under the amended guidance. The Company identified as TDRs certain loans for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying those loans as TDRs, the Company identified them as impaired under the guidance in ASC 310-10-35. The amendments in ASU 2011-02 require prospective application of the impairment measurement guidance in ASC 310-10-35 for those loans newly identified as impaired. | ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables, by loan category, present loans determined to be TDRs during the six month period ended June 30, 2013 and June 30, 2012 and for the three month period ended June 30, 2012. There were no loans determined to be TDRs during the three month period ended June 30, 2013. | Restructurings that | |||||||||||||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | ||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2013 | this period | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | (Dollars in thousands) | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | of | Investment | |||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | Mortgage—Commercial | 4 | $ | 704 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Commercial & Industrial | 1 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 257 | $ | 257 | |||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 5 | $ | 715 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 257 | $ | 257 | |||||||||||||||||||||||||||||||||||||||||||||||
As shown in the table above, one loan was determined to be a TDR during the six months ended June 30, 2013. The loan was modified to extend the terms outside the Company’s guidelines. | During the twelve month period ended December 31, 2011, five nonaccrual loans that had previously been restructured, had payment defaults. | |||||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2012 | In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. All non-accrual loans are written down to its corresponding collateral value. All TDR accruing loans and where the loan balance exceeds the present value of cash flow will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Bank will be unable to collect all amounts due including both principal and interest according to the contractual terms of the loan agreement. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
During the three and six months ended June 30, 2012, the Company modified three loans that were considered to be TDRs. The payment and interest rate were lowered for two of these loans and the payment was modified to interest only for one loan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables, by loan category, present loans determined to be TDRs in the last twelve months that subsequently defaulted during the three or six month periods ended June 30, 2012. There were no loans determined to be TDRs in the last twelve months that subsequently defaulted during the three or six month periods ended June 30, 2013. Defaulted loans are those loans that are greater than 89 days past due. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the six months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
During the three and six months ended June 30, 2012, one loan that had previously been restructured defaulted. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. Each non-accrual loan is written down to its corresponding collateral value. All TDR accruing loans that have a loan balance which exceeds the present value of cash flow will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Company will be unable to collect all amounts due, including both principal and interest, according to the contractual terms of the loan agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2013 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | Note 5 - Recently Issued Accounting Pronouncements |
In July 2012, the Intangibles topic was amended to permit an entity to consider qualitative factors to determine whether it is more likely than not that indefinite-lived intangible assets are impaired. If it is determined to be more likely than not that indefinite-lived intangible assets are impaired, then the entity is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The amendments did not have a material effect on the Company’s financial statements. | |
The Comprehensive Income topic of the ASC was amended in June 2011. The amendment eliminated the option to present other comprehensive income as a part of the statement of changes in stockholders’ equity and required consecutive presentation of the statement of net income and other comprehensive income. The amendments were applicable to the Company on January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements while the FASB redeliberated the presentation requirements for the reclassification adjustments. In February 2013, the FASB further amended the Comprehensive Income topic clarifying the conclusions from such redeliberations. Specifically, the amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments do require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendments are effective for the Company on a prospective basis for reporting periods beginning after December 15, 2012. These amendments did not have a material effect on the Company’s financial statements. | |
On February 28, 2013, the FASB amended the Liabilities topic to address obligations resulting from joint and several liability arrangements. The guidance addresses recognition of financial commitments arising from joint and several liability arrangements. Specifically, the amendments require recognition of financial commitments arising from loans, contracts, and legal rulings if the Company can be held liable for the entire claim. The amendments will be effective for the Company for reporting periods beginning after December 15, 2013. The Company does not expect these amendments to have a material effect on its financial statements. | |
On April 22, 2013, the FASB issued guidance addressing application of the liquidation basis of accounting. The guidance is intended to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments will be effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein and those requirements should be applied prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company does not expect these amendments to have any effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Note 6 — Fair Value of Financial Instruments | Note 6—FAIR VALUE MEASUREMENT | ||||||||||||||||||||||||||||||||
The Company adopted FASB ASC Fair Value Measurement Topic 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | The Company adopted FASB ASC Fair Value Measurement Topic 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||||||||||||||
Level l | Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||||
Level l | Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 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. | |||||||||||||||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 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. | |||||||||||||||||||||||||||||||||
FASB ASC 825-10-50 "Disclosure about Fair Value of Financial Instruments", requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below. | ||||||||||||||||||||||||||||||||||
FASB ASC 825-10-50 “Disclosure about Fair Value of Financial Instruments”, requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below. | ||||||||||||||||||||||||||||||||||
Cash and short term investments—The carrying amount of these financial instruments (cash and due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell) approximates fair value. All mature within 90 days and do not present unanticipated credit concerns and are classified as Level 1. | ||||||||||||||||||||||||||||||||||
Cash and short term investments—The carrying amount of these financial instruments (cash and due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell) approximates fair value. All mature within 90 days and do not present unanticipated credit concerns and are classified as Level 1. | ||||||||||||||||||||||||||||||||||
Investment Securities—Measurement is on a recurring basis based upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, or by dealers or brokers in active over-the-counter markets. Level 2 securities include mortgage-backed securities issued both by government sponsored enterprises and private label mortgage-backed securities. Generally these fair values are priced from established pricing models. Level 3 securities include corporate debt obligations and asset—backed securities that are less liquid or for which there is an inactive market. | ||||||||||||||||||||||||||||||||||
Investment Securities—Measurement is on a recurring basis based upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, or by dealers or brokers in active over-the-counter markets. Level 2 securities include mortgage-backed securities issued both by government sponsored enterprises and private label mortgage-backed securities. Generally these fair values are priced from established pricing models. Level 3 securities include corporate debt obligations and asset—backed securities that are less liquid or for which there is an inactive market. | ||||||||||||||||||||||||||||||||||
Loans Held for Sale—The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company's loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company's name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in by price with the investors on the same day that the loan was locked in with the Company's customers. Therefore, these loans present very little market risk for the Company and are classified as Level 2. The carrying amount of these loans approximates fair value. | ||||||||||||||||||||||||||||||||||
Loans Held for Sale— The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company’s loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in price with the investors on the same day that the loan was locked in with the company’s customers. Therefore, these loans present very little market risk for the Company and are classified as Level 2. The carrying amount of these loans approximates fair value. | ||||||||||||||||||||||||||||||||||
Loans—The fair value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as Level 2. As discount rates are based on current loan rates as well as management estimates, the fair values presented may not be indicative of the value negotiated in an actual sale. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. | ||||||||||||||||||||||||||||||||||
Loans—The fair value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as Level 2. As discount rates are based on current loan rates as well as management estimates, the fair values presented may not be indicative of the value negotiated in an actual sale. | ||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO)—OREO is carried at the lower of carrying value or fair value on a non-recurring basis. Fair value is based upon independent appraisals or management's estimation of the collateral and is considered a Level 3 measurement. | ||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO) — OREO is carried at the lower of carrying value or fair value on a non-recurring basis. Fair value is based upon independent appraisals or management’s estimation of the collateral and is considered a Level 3 measurement. When the OREO value is based upon a current appraisal or when a current appraisal is not available or there is estimated further impairment, the measurement is considered a Level 3 measurement. | ||||||||||||||||||||||||||||||||||
Accrued Interest Receivable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Accrued Interest Receivable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Interest rate swap—The fair value approximates the carrying value and is classified as Level 3. | ||||||||||||||||||||||||||||||||||
Interest rate swap—The fair value approximates the carrying value and is classified as Level 3. | ||||||||||||||||||||||||||||||||||
Deposits—The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. Deposits are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Deposits—The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. Deposits are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances—Fair value is estimated based on discounted cash flows using current market rates for borrowings with similar terms and are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances—Fair value is estimated based on discounted cash flows using current market rates for borrowings with similar terms and are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Short Term Borrowings—The carrying value of short term borrowings (securities sold under agreements to repurchase and demand notes to the Treasury) approximates fair value. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Short Term Borrowings—The carrying value of short term borrowings (securities sold under agreements to repurchase and demand notes to the Treasury) approximates fair value. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures—The fair values of junior subordinated debentures is estimated by using discounted cash flow analyses based on incremental borrowing rates for similar types of instruments. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures—The fair values of junior subordinated debentures is estimated by using discounted cash flow analyses based on incremental borrowing rates for similar types of instruments. These are classified as Level 2. | ||||||||||||||||||||||||||||||||||
Accrued Interest Payable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Accrued Interest Payable—The fair value approximates the carrying value and is classified as Level 1. | ||||||||||||||||||||||||||||||||||
Commitments to Extend Credit—The fair value of these commitments is immaterial because their underlying interest rates approximate market. | ||||||||||||||||||||||||||||||||||
Commitments to Extend Credit—The fair value of these commitments is immaterial because their underlying interest rates approximate market. | ||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value by classification Level of the Company's financial instruments as of December 31, 2012 are as follows: | ||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value by classification Level of the Company’s financial instruments as of June 30, 2013 are as follows: | ||||||||||||||||||||||||||||||||||
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | Carrying | ||||||||||||||||||||||||||||
Amount | (Dollars in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets: | Financial Assets: | |||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 24,287 | $ | 24,287 | $ | 24,287 | $ | — | $ | — | Cash and short term investments | $ | 18,296 | $ | 18,296 | $ | 18,296 | $ | — | $ | — | |||||||||||||
Available-for-sale securities | 223,646 | 223,646 | 830 | 222,399 | 417 | Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||
Other investments, at cost | 2,269 | — | — | — | 2,269 | Other investments, at cost | 2,527 | — | — | — | 2,527 | |||||||||||||||||||||||
Loans held for sale | 5,789 | 5,789 | — | 5,789 | — | Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | |||||||||||||||||||||||
Net Loans receivable | 336,650 | 340,151 | — | 333,580 | 6,571 | Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | |||||||||||||||||||||||
Accrued interest | 2,177 | 2,177 | 2,177 | — | — | Accrued interest | 2,098 | 2,098 | 2,098 | — | — | |||||||||||||||||||||||
Interest rate swap | (172 | ) | (172 | ) | — | — | (172 | ) | Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | |||||||||||||||||
Financial liabilities: | Financial liabilities: | |||||||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 105,478 | $ | 105,478 | $ | — | $ | 105,478 | $ | — | Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | |||||||||||||
NOW and money market accounts | 186,778 | 186,778 | — | 186,778 | — | NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | |||||||||||||||||||||||
Savings | 47,238 | 47,238 | — | 47,238 | — | Savings | 41,100 | 41,100 | — | 41,100 | — | |||||||||||||||||||||||
Time deposits | 170,125 | 171,732 | — | 171,732 | — | Time deposits | 185,477 | 187,313 | — | 187,313 | — | |||||||||||||||||||||||
Total deposits | 509,619 | 511,226 | — | 511,226 | — | |||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 34,335 | 38,458 | — | 38,458 | — | Total deposits | 474,977 | 476,813 | — | 476,813 | — | |||||||||||||||||||||||
Short term borrowings | 15,650 | 15,650 | — | 15,650 | — | Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | |||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | |||||||||||||||||||||||
Accrued interest payable | 666 | 666 | 666 | — | — | Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | |||||||||||||||||||||||
Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | |||||||||||||||||||||||||||||
The carrying amount and estimated fair value of the Company’s financial instruments as of December 31, 2012 are as follows: | ||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value of the Company's financial instruments as of December 31, 2011 are as follows: | ||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | December 31, 2011 | ||||||||||||||||||||||||||||
Amount | (Dollars in thousands) | Carrying | Fair | |||||||||||||||||||||||||||||||
Financial Assets: | Amount | Value | ||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 18,708 | $ | 18,708 | $ | 18,708 | $ | — | $ | — | Financial Assets: | |||||||||||||||||||||||
Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | Cash and short term investments | $ | 16,492 | $ | 16,492 | ||||||||||||||||||||||||
Other investments, at cost | 2,527 | — | — | — | 2,527 | Available-for-sale securities | 201,032 | 201,032 | ||||||||||||||||||||||||||
Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | Other investments, at cost | 5,637 | — | ||||||||||||||||||||||||||
Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | Loans held for sale | 3,725 | 3,725 | ||||||||||||||||||||||||||
Accrued interest | 2,098 | 2,098 | 2,098 | — | — | Net loans receivable | 319,612 | 319,505 | ||||||||||||||||||||||||||
Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | Accrued interest | 1,914 | 1,914 | |||||||||||||||||||||||
Financial liabilities: | Interest rate swap | (602 | ) | (602 | ) | |||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | Financial liabilities: | |||||||||||||||||||||||
NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | Non-interest bearing demand | $ | 83,572 | $ | 83,572 | ||||||||||||||||||||||||
Savings | 41,100 | 41,100 | — | 41,100 | — | NOW and money market accounts | 136,483 | 136,483 | ||||||||||||||||||||||||||
Time deposits | 185,477 | 187,313 | — | 187,313 | — | Savings | 34,048 | 34,048 | ||||||||||||||||||||||||||
Total deposits | 474,977 | 476,813 | — | 476,813 | — | Time deposits | 210,482 | 214,437 | ||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | |||||||||||||||||||||||||||||
Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | Total deposits | 464,585 | 468,540 | ||||||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | Federal Home Loan Bank Advances | 43,862 | 50,238 | ||||||||||||||||||||||||||
Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | Short term borrowings | 13,616 | 13,616 | ||||||||||||||||||||||||||
Junior subordinated debentures | 17,913 | 17,913 | ||||||||||||||||||||||||||||||||
The following tables reflect the changes in fair values for the six and three-month periods ended June 30, 2013 and 2012 and where these changes are included in the income statement: | Accrued interest payable | 1,624 | 1,624 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | The following table reflects the changes in fair values for the years ended December 31, 2012, 2011 and 2010 and where these changes are included in the income statement: | |||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | (Dollars in thousands) | Non-interest | Non-interest | Non-interest | |||||||||||||||||||||||||||
Description | Non-interest | Non-interest | Non-interest | Non-interest | income: | income: | income: | |||||||||||||||||||||||||||
income: | income: | income: | income: | Fair-value | Fair-value | Fair-value | ||||||||||||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | adjustment | adjustment | adjustment | ||||||||||||||||||||||||||||
adjustment | adjustment | adjustment | adjustment | gain (loss) | gain (loss) | gain (loss) | ||||||||||||||||||||||||||||
loss | loss | loss | loss | Interest rate swap | (58 | ) | (166 | ) | (581 | ) | ||||||||||||||||||||||||
Interest rate swap | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | Total | $ | (58 | ) | $ | (166 | ) | $ | (581 | ) | ||||||||||||
Total | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | ||||||||||||||||||||||
The following table summarizes quantitative disclosures about the fair value for each category of assets carried at fair value as of June 30, 2013 and December 31, 2012 that are measured on a recurring basis. There were no liabilities carried at fair value as of June 30, 2013 or December 31, 2012 that are measured on a recurring basis. | The following table summarizes quantitative disclosures about the fair value for each category of assets carried at fair value as of December 31, 2012 and December 31, 2011 that are measured on a recurring basis. There were no liabilities carried at fair value as of December 31, 2012 or December 31, 2011 that are measured on a recurring basis. | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | Description | December 31, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||
Markets for | Observable | Inputs | 2012 | in Active | Other | Unobservable | ||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||
Assets | (Level 2) | Identical | Inputs | (Level 3) | ||||||||||||||||||||||||||||||
(Level 1) | Assets | (Level 2) | ||||||||||||||||||||||||||||||||
Available for sale securities | (Level 1) | |||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,462 | $ | — | $ | 1,462 | $ | — | Available for sale securities | |||||||||||||||||||||||||
Mortgage-backed securities | 122,649 | — | 122,649 | — | Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | |||||||||||||||||||||
Small Business Administration securities | 57,304 | — | 57,304 | — | Mortgage-backed securities | 112,144 | — | 112,144 | — | |||||||||||||||||||||||||
State and local government | 39,922 | — | 39,922 | — | Small Business Administration securities | 54,993 | — | 54,993 | — | |||||||||||||||||||||||||
Corporate and other securities | 2,309 | 830 | 1,062 | 417 | State and local government | 32,373 | — | 32,373 | — | |||||||||||||||||||||||||
223,646 | 830 | 222,399 | 417 | Corporate and other securities | 2,401 | 914 | 1,070 | 417 | ||||||||||||||||||||||||||
Interest rate swap | (172 | ) | — | — | (172 | ) | 203,445 | 914 | 202,114 | 417 | ||||||||||||||||||||||||
Total | $ | 223,474 | $ | 830 | $ | 222,399 | $ | 245 | Interest rate cap/swap | (338 | ) | — | — | (338 | ) | |||||||||||||||||||
(Dollars in thousands) | Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | |||||||||||||||||||||||||
Description | December | Quoted | Significant | Significant | ||||||||||||||||||||||||||||||
31, 2012 | Prices in | Other | Unobservable | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Active | Observable | Inputs | ||||||||||||||||||||||||||||||||
Markets for | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||
Identical | (Level 2) | Description | December 31, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||||
Assets | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||||||
(Level 1) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Available for sale securities | Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | Assets | (Level 2) | ||||||||||||||||||||||||
Mortgage-backed securities | 112,144 | — | 112,144 | — | (Level 1) | |||||||||||||||||||||||||||||
Small Business Administration securities | 54,993 | — | 54,993 | — | Available for sale securities | |||||||||||||||||||||||||||||
State and local government | 32,373 | — | 32,373 | — | Government sponsored enterprises | $ | 34 | $ | — | $ | 34 | $ | — | |||||||||||||||||||||
Corporate and other securities | 2,401 | 914 | 1,070 | 417 | Mortgage backed securities | 141,631 | — | 141,631 | — | |||||||||||||||||||||||||
203,445 | 914 | 202,114 | 417 | Small Business Administration securities | 36,479 | — | 36,479 | — | ||||||||||||||||||||||||||
State and local government | 20,488 | — | 20,488 | — | ||||||||||||||||||||||||||||||
Interest rate swap | (338 | ) | — | — | (338 | ) | Corporate and other securities | 2,400 | 926 | 1,474 | — | |||||||||||||||||||||||
Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | ||||||||||||||||||||||||||
201,032 | 926 | 200,106 | — | |||||||||||||||||||||||||||||||
The following tables reconcile the changes in Level 3 financial instruments for the six and three months ended June 30, 2013, that are measured on a recurring basis. | Interest rate cap/floor | (602 | ) | — | — | (602 | ) | |||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | Total | $ | 200,430 | $ | 926 | $ | 200,106 | $ | (602 | ) | ||||||||||||||||||||||
Stock | ||||||||||||||||||||||||||||||||||
Beginning Balance December 31, 2012 | $ | (338 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | The following tables reconcile the changes in Level 3 financial instruments for the year ended December 31, 2012 and 2011 measured on a recurring basis: | |||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | |||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | (Dollars in thousands) | Interest rate | Corporate Preferred | |||||||||||||||||||||||||||||
Swap | Stock | |||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 168 | — | Beginning Balance December 31, 2011 | $ | (602 | ) | — | |||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Included in earnings | (58 | ) | — | ||||||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Included in other comprehensive income | — | — | ||||||||||||||||||||||||||
Purchases, issuances, and settlements | 322 | 417 | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | ||||||||||||||||||||||||||||||||
Stock | Ending Balance December 31, 2012 | $ | (338 | ) | 417 | |||||||||||||||||||||||||||||
Beginning Balance March 31, 2013 | $ | (254 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | |||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | 2011 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | State and local | Corporate and other | Interest rate | |||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 84 | — | government | securities | Swap | |||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Beginning Balance December 31, 2010 | $ | 625 | $ | 182 | $ | (778 | ) | ||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||
Included in earnings | — | (103 | ) | (166 | ) | |||||||||||||||||||||||||||||
Included in other comprehensive income | — | (79 | ) | — | ||||||||||||||||||||||||||||||
The following tables reconcile the changes in Level 3 financial instruments for the six and three months ended June 30, 2012, that are measured on a recurring basis. | Purchases, issuances, and settlements | (625 | ) | — | 342 | |||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | |||||||||||||||||||||||||||||||||
Cap/Floor/Swap | Ending Balance December 31, 2011 | $ | — | $ | — | $ | (602 | ) | ||||||||||||||||||||||||||
Beginning Balance December 31, 2011 | $ | (602 | ) | |||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
During the fourth quarter of 2011, a state and local government bond with a fair value of $579 thousand was called and removed from the Level 3 category. | ||||||||||||||||||||||||||||||||||
Included in earnings | (37 | ) | ||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of December 31, 2012 and December 31, 2011 that are measured on a non-recurring basis. There were no liabilities carried at fair value and measured on a non-recurring basis at December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 160 | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | Description | December 31, | Quoted Prices | Significant | Significant | ||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | 2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||
Cap/Floor/Swap | (Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||
Beginning Balance March 31, 2012 | $ | (553 | ) | Impaired loans: | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | |||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||
Included in earnings | (4 | ) | Mortgage-residential | 357 | — | — | 357 | |||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | — | — | 5,772 | ||||||||||||||||||||||||||||||
Included in other comprehensive income | — | Consumer: | ||||||||||||||||||||||||||||||||
Home equity | — | — | — | — | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 78 | Other | 10 | — | — | 10 | ||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | Total impaired | 6,176 | — | — | 6,176 | ||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | |||||||||||||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||||||||
The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of June 30, 2013 and December 31, 2012 that are measured on a non-recurring basis. | Construction | 301 | — | — | 301 | |||||||||||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage-commercial | 3,198 | — | — | 3,198 | |||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | Total other real estate owned | 3,987 | — | — | 3,987 | |||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||||||||||
(Level 1) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 84 | $ | — | $ | — | $ | 84 | ||||||||||||||||||||||||||
Real estate: | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||
Mortgage-residential | 716 | — | — | 716 | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | — | — | 5,759 | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Consumer: | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Home equity | — | — | — | — | (Level 1) | (Level 2) | ||||||||||||||||||||||||||||
Other | 7 | — | — | 7 | Impaired loans: | |||||||||||||||||||||||||||||
Total impaired | 6,566 | — | — | 6,566 | Commercial & Industrial | $ | 44 | $ | — | $ | — | $ | 44 | |||||||||||||||||||||
Other real estate owned: | Real estate: | |||||||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | Mortgage-residential | 622 | — | — | 622 | |||||||||||||||||||||||||
Mortgage-residential | 302 | — | — | 302 | Mortgage-commercial | 8,666 | — | — | 8,666 | |||||||||||||||||||||||||
Mortgage-commercial | 2,221 | — | — | 2,221 | Consumer: | |||||||||||||||||||||||||||||
Total other real estate owned | 2,824 | — | — | 2,824 | Home equity | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 9,390 | $ | — | $ | — | $ | 9,390 | Other | 19 | — | — | 19 | |||||||||||||||||||||
(Dollars in thousands) | Total impaired | 9,351 | — | — | 9,351 | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices | Significant | Significant | Other real estate owned: | — | — | |||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | Construction | 2,156 | — | — | 2,156 | ||||||||||||||||||||||||||
Markets for | Observable | Inputs | Mortgage-residential | 4,278 | — | — | 4,278 | |||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Mortgage-commercial | 917 | — | — | 917 | |||||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||||||||||
(Level 1) | Total other real estate owned | 7,351 | — | — | 7,351 | |||||||||||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | Total | $ | 16,702 | $ | — | $ | — | $ | 16,702 | |||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | — | — | 357 | ||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | — | — | 5,772 | The Company has a large percentage of loans with real estate serving as collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Third party appraisals are generally obtained when a loan is identified as being impaired or at the time it is transferred to OREO. This internal process would consist of evaluating the underlying collateral to independently obtained comparable properties. With respect to less complex or smaller credits, an internal evaluation may be performed. Generally the independent and internal evaluations are updated annually. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. The aggregate amount of impaired loans was $6.2 million and $9.4 million for the year ended December 31, 2012 and year ended December 31, 2011, respectively. | |||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||
Home equity | — | — | — | — | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||||||||||||||
Other | 10 | — | — | 10 | ||||||||||||||||||||||||||||||
Total impaired | 6,176 | — | — | 6,176 | ||||||||||||||||||||||||||||||
Other real estate owned: | (Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant | |||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | December 31, | Observable | Unobservable | |||||||||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | 2012 | Inputs | Inputs | |||||||||||||||||||||||||||
Mortgage-commercial | 3,198 | — | — | 3,198 | Interest Rate Swap | $ | (388 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | |||||||||||||||||||||||
Total other real estate owned | 3,987 | — | — | 3,987 | Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable | n/a | ||||||||||||||||||||||||
Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | transactions | |||||||||||||||||||||||||
OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
The Company has a large percentage of loans with real estate serving as collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Third party appraisals are generally obtained when a loan is identified as being impaired or at the time it is transferred to OREO. This internal process consists of evaluating the underlying collateral to independently obtained comparable properties. With respect to less complex or smaller credits, an internal evaluation may be performed. Generally the independent and internal evaluations are updated annually. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. The aggregate amount of impaired loans was $6.6 million and $6.2 million for the six months ended June 30, 2013 and year ended December 31, 2012, respectively. | Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | ||||||||||||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2013 and December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
June 30, 2013 | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (172 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | |||||||||||||||||||||||||||||
OREO | $ | 2,824 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
Impaired loans | $ | 6,566 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
December 31, | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (338 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | |||||||||||||||||||||||||||||
OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost |
Recovered_Sheet9
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2012 | |
Subsequent Events | ||
Subsequent Events | Note 7 — Subsequent Events | Note 22—SUBSEQUENT EVENTS |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events other than disclosed above occurred requiring accrual or disclosure. | Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure. | |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Basis of Presentation | ||||||||
Summary of changes in accumulated other comprehensive income (loss) by component, net of tax impact, at the dates and for the specified periods | The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax impact, at the dates and for the periods indicated (in thousands). All amounts are net of income taxes. | |||||||
Three months | ||||||||
ended June 30, | ||||||||
2013 | 2012 | |||||||
Beginning Balance | $ | 2,104 | $ | 2,192 | ||||
Other comprehensive loss before reclassifications(a) | (2,896 | ) | (742 | ) | ||||
Amounts reclassified from accumulated other comprehensive income (loss)(a) | (88 | ) | 25 | |||||
Net current-period other comprehensive income loss | (2,984 | ) | (717 | ) | ||||
Ending Balance | $ | (880 | ) | $ | 1,475 | |||
Six months | ||||||||
ended June 30, | ||||||||
2013 | 2012 | |||||||
Beginning Balance | $ | 2,358 | $ | 1,329 | ||||
Other comprehensive loss before reclassifications(a) | (3,140 | ) | (4 | ) | ||||
Amounts reclassified from accumulated other comprehensive income (loss)(a) | (98 | ) | 150 | |||||
Net current-period other comprehensive income (loss) | (3,238 | ) | 146 | |||||
Ending Balance | $ | (880 | ) | $ | 1,475 | |||
(a) All other comprehensive income (loss) and reclassifications are related to available-for-sale securities. |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||
Earnings Per Common Share | |||||||||||||||||||||||||
Schedule of reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation | |||||||||||||||||||||||||
Six months | Three months | ||||||||||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||||||||||
(In thousands, except price per share) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Numerator (Net income available to common shareholders) | $ | 2,241 | $ | 1,390 | $ | 1,203 | $ | 760 | |||||||||||||||||
Denominator | Year ended December 31, | ||||||||||||||||||||||||
Weighted average common shares outstanding for: | (Amounts in thousands) | 2012 | 2011 | 2010 | |||||||||||||||||||||
Basic earnings per share | 5,274 | 3,319 | 5,292 | 3,329 | Numerator (Included in basic and diluted earnings per share) | $ | 3,292 | $ | 2,654 | $ | 1,190 | ||||||||||||||
Dilutive securities: | |||||||||||||||||||||||||
Warrants — Treasury stock method | 38 | 24 | 37 | 28 | Denominator | ||||||||||||||||||||
Diluted earnings per share | 5,312 | 3,343 | 5,329 | 3,357 | Weighted average common shares outstanding for: | ||||||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 9.15 | $ | 7.63 | $ | 9.05 | $ | 7.99 | Basic earnings common per share | 4,144 | 3,287 | 3,262 | |||||||||||||
Dilutive securities: | |||||||||||||||||||||||||
Warrants—Treasury stock method | 28 | — | — | ||||||||||||||||||||||
Diluted common share outstanding | 4,172 | 3,287 | 3,262 | ||||||||||||||||||||||
The average market price used in calculating assumed number of shares | $ | 7.98 | $ | 6.34 | $ | 5.78 | |||||||||||||||||||
Recovered_Sheet10
Investment Securities (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair values of investment securities | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||
June 30, 2013: | ||||||||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,518 | $ | 1 | $ | 57 | $ | 1,462 | (Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||
Mortgage-backed securities | 122,527 | 1,492 | 1,370 | 122,649 | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Small Business Administration pools | 56,886 | 711 | 293 | 57,304 | Gains | Losses | ||||||||||||||||||||||||||||||||||
State and local government | 41,753 | 108 | 1,939 | 39,922 | December 31, 2012: | |||||||||||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 2 | 42 | 2,309 | Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | |||||||||||||||||||||||||||
$ | 225,033 | $ | 2,314 | $ | 3,701 | $ | 223,646 | Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | ||||||||||||||||||||||||||||
December 31, 2012: | Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | |||||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,522 | $ | 12 | $ | — | $ | 1,534 | State and local government | 31,483 | 936 | 46 | 32,373 | |||||||||||||||||||||||||||
Mortgage-backed securities | 110,425 | 2,343 | 624 | 112,144 | Corporate and other securities | 2,349 | 53 | 1 | 2,401 | |||||||||||||||||||||||||||||||
Small Business Administration pools | 54,148 | 1,008 | 163 | 54,993 | ||||||||||||||||||||||||||||||||||||
State and local government | 31,483 | 936 | 46 | 32,373 | $ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | ||||||||||||||||||||||||||||
Corporate and other securities | 2,349 | 53 | 1 | 2,401 | ||||||||||||||||||||||||||||||||||||
$ | 199,927 | $ | 4,352 | $ | 834 | $ | 203,445 | December 31, 2011: | ||||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 31 | $ | 3 | $ | — | $ | 34 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 141,103 | 2,876 | 2,348 | 141,631 | ||||||||||||||||||||||||||||||||||||
Small Business Administration pools | 35,889 | 634 | 44 | 36,479 | ||||||||||||||||||||||||||||||||||||
State and local government | 19,617 | 871 | — | 20,488 | ||||||||||||||||||||||||||||||||||||
Corporate and other securities | 2,432 | 54 | 86 | 2,400 | ||||||||||||||||||||||||||||||||||||
$ | 199,072 | $ | 4,438 | $ | 2,478 | $ | 201,032 | |||||||||||||||||||||||||||||||||
Schedule of OTTI losses on available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||||||||||||||||||
ended June 30, | ||||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available-for- | |||||||||||||||||||||||||||||||||||||||
sale securities | Year ended | |||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | December 31, | |||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | 2012 | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 200 | (Dollars in thousands) | Available- | ||||||||||||||||||||||||||||||||||||
for-sale | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 415 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | 215 | |||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 200 | ||||||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Available- | |||||||||||||||||||||||||||||||||||||||
for-sale | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 262 | ||||||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | (35 | ) | ||||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 297 | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Held-to- | Available- | Total | |||||||||||||||||||||||||||||||||||||
maturity | for-sale | |||||||||||||||||||||||||||||||||||||||
mortgage- | securities | |||||||||||||||||||||||||||||||||||||||
backed | ||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||
Total OTTI charge realized and unrealized | $ | 108 | $ | 4,310 | 4,418 | |||||||||||||||||||||||||||||||||||
OTTI recognized in other comprehensive income (non-credit component) | — | 2,858 | 2,858 | |||||||||||||||||||||||||||||||||||||
Net impairment losses recognized in earnings (credit component) | $ | 108 | $ | 1,452 | $ | 1,560 | ||||||||||||||||||||||||||||||||||
Schedule of analysis of amounts relating to credit losses on debt securities recognized in earnings | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Available | Available | |||||||||||||||||||||||||||||||||||||||
for | for | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Sale | Sale | ||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 271 | $ | 930 | (Dollars in thousands) | Available | Available | Available | Held to | |||||||||||||||||||||||||||||||
for Sale | for Sale | for Sale | maturity | |||||||||||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | — | 173 | Balance at beginning of period | $ | 930 | $ | 2,143 | $ | 545 | $ | 132 | |||||||||||||||||||||||||||||
Other-than-temporary-impairment not previously recognized | 173 | 50 | 291 | 98 | ||||||||||||||||||||||||||||||||||||
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | — | 27 | Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | 27 | 247 | 1,161 | 10 | |||||||||||||||||||||||||||||||||
Other-than-temporary-impairment previously recognized on securities sold | — | (679 | ) | Realized losses during the period | (180 | ) | (1,510 | ) | (94 | ) | — | |||||||||||||||||||||||||||||
Realized losses during the period | (46 | ) | (136 | ) | Other-than-temporary impairment previously recognized in securities sold | (679 | ) | — | — | — | ||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 225 | $ | 315 | Transfer to available-for-sale | — | — | 240 | (240 | ) | ||||||||||||||||||||||||||||||
Balance related to credit losses on debt securities at end of period | $ | 271 | $ | 930 | $ | 2,143 | $ | — | ||||||||||||||||||||||||||||||||
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position | ||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprises | $ | 1,444 | $ | 57 | $ | — | $ | — | $ | 1,444 | $ | 57 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||
Small Business Administration Pools | 21,213 | 289 | 882 | 4 | 22,095 | 293 | December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | 53,766 | 1,330 | 3,118 | 35 | 56,884 | 1,365 | (Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||||||||
Non-agency mortgage-backed securities | 64 | 1 | 983 | 4 | 1,047 | 5 | Available-for-sale securities: | |||||||||||||||||||||||||||||||||
Corporate bonds and other | 871 | 41 | 50 | 1 | 921 | 42 | Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | |||||||||||||||||||||
State and local government | 29,518 | 1,939 | — | — | 29,518 | 1,939 | Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | |||||||||||||||||||||||||||
Total | $ | 106,876 | $ | 3,657 | $ | 5,033 | $ | 44 | $ | 111,909 | $ | 3,701 | Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | |||||||||||||||||||||
State and local government | 2,599 | 46 | — | — | 2,599 | 46 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | |||||||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Loss | Loss | Loss | Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 22,662 | $ | 233 | $ | 4,583 | $ | 13 | $ | 27,245 | $ | 246 | ||||||||||||||||||||||||||||
Small Business Administration pools | 11,013 | 158 | 2,447 | 5 | 13,460 | 163 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | — | — | 2,363 | 378 | 2,363 | 378 | ||||||||||||||||||||||||||||||||||
State and local government | 2,599 | 46 | — | — | 2,599 | 46 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | — | — | 50 | 1 | 50 | 1 | ||||||||||||||||||||||||||||||||||
Total | $ | 36,274 | $ | 437 | $ | 9,443 | $ | 397 | $ | 45,717 | $ | 834 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||
December 31, 2011 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||
Government Sponsored Enterprise mortgage-backed securities | $ | 25,113 | $ | 163 | $ | 3,269 | $ | 24 | $ | 28,382 | $ | 187 | ||||||||||||||||||||||||||||
Small Business Administration pools | 6,108 | 38 | 2,203 | 6 | 8,311 | 44 | ||||||||||||||||||||||||||||||||||
Non-agency mortgage-backed securities | 574 | 3 | 13,275 | 2,158 | 13,849 | 2,161 | ||||||||||||||||||||||||||||||||||
Corporate bonds and other | 940 | 60 | 524 | 26 | 1,464 | 86 | ||||||||||||||||||||||||||||||||||
Total | $ | 32,735 | $ | 264 | $ | 19,271 | $ | 2,214 | $ | 52,006 | $ | 2,478 | ||||||||||||||||||||||||||||
Summary of the number of CUSIPs, par value, carrying value and fair value of non-agency mortgage-backed securities /CMOs by credit rating | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Credit | Number | Par | Amortized | Fair | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Rating | of | Value | Cost | Value | ||||||||||||||||||||||||||||||||||||
CUSIPs | ||||||||||||||||||||||||||||||||||||||||
AA | 2 | $ | 198 | $ | 198 | $ | 201 | Credit Rating | Number | Par | Amortized | Fair | ||||||||||||||||||||||||||||
A1 | 1 | 324 | 324 | 343 | of | Value | Cost | Value | ||||||||||||||||||||||||||||||||
A3 | 1 | 281 | 281 | 283 | CUSIPs | |||||||||||||||||||||||||||||||||||
BBB | 3 | 240 | 240 | 237 | AA | 2 | $ | 264 | $ | 264 | $ | 268 | ||||||||||||||||||||||||||||
Baa1 | 1 | 65 | 65 | 64 | A1 | 1 | 380 | 380 | 374 | |||||||||||||||||||||||||||||||
Baa2 | 1 | 33 | 33 | 33 | A3 | 1 | 320 | 320 | 318 | |||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 1,847 | 1,528 | 1,542 | A | 2 | 72 | 72 | 71 | |||||||||||||||||||||||||||||||
Total | 13 | $ | 2,988 | $ | 2,669 | $ | 2,703 | BBB | 1 | 231 | 231 | 225 | ||||||||||||||||||||||||||||
Baa1 | 1 | 71 | 71 | 72 | ||||||||||||||||||||||||||||||||||||
Baa2 | 1 | 97 | 97 | 96 | ||||||||||||||||||||||||||||||||||||
Below Investment Grade | 4 | 2,008 | 1,653 | 1,291 | ||||||||||||||||||||||||||||||||||||
Total | 13 | $ | 3,443 | $ | 3,088 | $ | 2,715 | |||||||||||||||||||||||||||||||||
Schedule of the amortized cost and fair value of investment securities by contractual maturity | The amortized cost and fair value of investment securities at June 30, 2013 by contractual maturity are as follows. | |||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | ||||||||||||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 20,260 | $ | 20,442 | ||||||||||||||||||||||||||||||||||||
Due after one year through five years | 86,248 | 86,729 | Available-for-sale | |||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 88,107 | 86,334 | (Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||||||||||||||
Due after ten years | 30,418 | 30,141 | Cost | Value | ||||||||||||||||||||||||||||||||||||
$ | 225,033 | $ | 223,646 | Due in one year or less | $ | 26,725 | $ | 26,722 | ||||||||||||||||||||||||||||||||
Due after one year through five years | 83,068 | 84,630 | ||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 30,565 | 31,161 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 59,569 | 60,932 | ||||||||||||||||||||||||||||||||||||||
$ | 199,927 | $ | 203,445 | |||||||||||||||||||||||||||||||||||||
Recovered_Sheet11
Loans (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loans by category | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 20,908 | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 15,232 | 13,052 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 38,363 | 38,892 | (Dollars in thousands) | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 233,769 | 226,575 | Commercial, financial and agricultural | $ | 20,924 | $ | 20,608 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 25,437 | 27,173 | Construction | 13,052 | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 7,380 | 5,495 | Mortgage-residential | 38,892 | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 341,089 | $ | 332,111 | Mortgage-commercial | 226,575 | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 27,173 | 27,976 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 5,495 | 5,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 332,111 | $ | 324,311 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance for loan losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,621 | $ | 4,699 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 250 | 301 | Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (523 | ) | (307 | ) | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 91 | 49 | Balance at the beginning of year | $ | 4,699 | $ | 4,911 | $ | 4,854 | |||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | Provision for loan losses | 496 | 1,420 | 1,878 | ||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (742 | ) | (1,696 | ) | (1,948 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Recoveries | 168 | 64 | 127 | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Balance at end of year | $ | 4,621 | $ | 4,699 | $ | 4,911 | |||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 4,534 | $ | 4,745 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 100 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Charged off loans | (209 | ) | (95 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 14 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,439 | $ | 4,742 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance for loan losses and the recorded investment in loans receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2012 | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||
Charge-offs | 7 | — | 36 | 397 | 44 | 39 | — | 523 | Residential | Commercial | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | 20 | — | 62 | — | 1 | 8 | — | 91 | 2012 | |||||||||||||||||||||||||||||||||||||||||||
Provisions | (87 | ) | 25 | 58 | 157 | (131 | ) | 110 | 118 | 250 | Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | Beginning balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | |||||||||||||||||||
Charge-offs | 258 | — | 112 | 293 | — | 79 | — | 742 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Recoveries | 42 | — | 86 | — | 3 | 37 | — | 168 | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | — | $ | — | $ | 5 | Provisions | 223 | — | (253 | ) | 140 | (124 | ) | 2 | 508 | 496 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 264 | 25 | 314 | 1,082 | 226 | 96 | 2,427 | 4,434 | Ending balance | $ | 338 | $ | — | $ | 235 | $ | 1,322 | $ | 400 | $ | 17 | $ | 2,309 | $ | 4,621 | |||||||||||||||||||||||||||
Loans receivable: | Ending balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 20,908 | $ | 15,232 | $ | 38,363 | $ | 233,769 | $ | 25,437 | $ | 7,380 | $ | — | $ | 341,089 | Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Collectively evaluated for impairment | 338 | — | 235 | 1,322 | 400 | 17 | 2,309 | 4,621 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balances: | Loans receivable: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 84 | — | 721 | 5,759 | — | 7 | — | 6,571 | Ending balance-total | $ | 20,924 | $ | 13,052 | $ | 38,892 | $ | 226,575 | $ | 27,173 | $ | 5,495 | $ | — | $ | 332,111 | |||||||||||||||||||||||||||
Ending balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 20,824 | $ | 15,232 | $ | 37,642 | $ | 228,010 | $ | 25,437 | $ | 7,373 | $ | — | $ | 334,518 | Individually evaluated for impairment | 37 | — | 357 | 5,772 | — | 10 | — | 6,176 | |||||||||||||||||||||||||||
Collectively evaluated for impairment | 20,887 | 13,052 | 38,535 | 220,803 | 27,173 | 5,485 | — | 325,935 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance December 31, 2011 | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | (Dollars in thousands) | Commercial | Real estate | Real estate | Real estate | Consumer | Consumer | Unallocated | Total | |||||||||||||||||||||||||||
Charge-offs | 62 | — | 30 | 178 | — | 37 | — | 307 | Construction | Mortgage | Mortgage | Home equity | Other | |||||||||||||||||||||||||||||||||||||||
Recoveries | 25 | — | 9 | — | 2 | 13 | — | 49 | Residential | Commercial | ||||||||||||||||||||||||||||||||||||||||||
Provisions | (45 | ) | — | 106 | 16 | (78 | ) | 12 | 290 | 301 | 2011 | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 681 | $ | 905 | $ | 465 | $ | 1,404 | $ | 325 | $ | 88 | $ | 1,043 | $ | 4,911 | ||||||||||||||||||||||||||||||||||||
Ending balances: | Charge-offs | 265 | — | 186 | 861 | 285 | 99 | — | 1,696 | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | Recoveries | 31 | — | 5 | — | 5 | 23 | — | 64 | |||||||||||||||||||||||||||
Provisions | (116 | ) | (905 | ) | 230 | 932 | 476 | 45 | 758 | 1,420 | ||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 249 | — | 599 | 1,313 | 445 | 45 | 2,091 | 4,742 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 331 | $ | — | $ | 514 | $ | 1,475 | $ | 521 | $ | 57 | $ | 1,801 | $ | 4,699 | ||||||||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 19,741 | $ | 12,302 | $ | 38,779 | $ | 221,880 | $ | 26,945 | $ | 5,266 | $ | — | $ | 324,913 | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||||||||||||||
Ending balances: | Collectively evaluated for impairment | 330 | — | 514 | 1,474 | 521 | 57 | 1,801 | 4,697 | |||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 24 | — | 581 | 8,650 | — | 28 | — | 9,283 | Loans receivable: | |||||||||||||||||||||||||||||||||||||||||||
Ending balance-total | $ | 20,608 | $ | 11,767 | $ | 38,337 | $ | 220,288 | $ | 27,976 | $ | 5,335 | $ | — | $ | 324,311 | ||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 19,717 | $ | 12,302 | $ | 38,198 | $ | 213,230 | $ | 26,945 | $ | 5,238 | $ | — | $ | 315,630 | Ending balances: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 45 | — | 622 | 8,667 | — | 19 | — | 9,353 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 20,563 | $ | 11,767 | $ | 37,715 | $ | 211,621 | $ | 27,976 | $ | 5,316 | $ | — | $ | 314,958 | ||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2013 | $ | 409 | $ | 21 | $ | 199 | $ | 1,075 | $ | 236 | $ | 78 | $ | 2,516 | $ | 4,534 | ||||||||||||||||||||||||||||||||||||
Charge-offs | — | — | 32 | 162 | 2 | 13 | — | 209 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 9 | — | 1 | — | 1 | 3 | — | 14 | ||||||||||||||||||||||||||||||||||||||||||||
Provisions | (154 | ) | 4 | 151 | 169 | (9 | ) | 28 | (89 | ) | 100 | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2013 | $ | 264 | $ | 25 | $ | 319 | $ | 1,082 | $ | 226 | $ | 96 | $ | 2,427 | $ | 4,439 | ||||||||||||||||||||||||||||||||||||
Real estate | Real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | Mortgage | Mortgage | Consumer | Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Construction | Residential | Commercial | Home equity | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance March 31, 2012 | $ | 307 | $ | — | $ | 500 | $ | 1,430 | $ | 566 | $ | 53 | $ | 1,889 | $ | 4,745 | ||||||||||||||||||||||||||||||||||||
Charge-offs | 62 | — | 17 | — | — | 16 | — | 95 | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 13 | — | 2 | — | — | 6 | — | 21 | ||||||||||||||||||||||||||||||||||||||||||||
Provisions | (9 | ) | — | 114 | (117 | ) | (121 | ) | 2 | 202 | 71 | |||||||||||||||||||||||||||||||||||||||||
Ending balance June 30, 2012 | $ | 249 | $ | — | $ | 599 | $ | 1,313 | $ | 445 | $ | 45 | $ | 2,091 | $ | 4,742 | ||||||||||||||||||||||||||||||||||||
Schedule of loans individually evaluated and considered impaired | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans considered impaired | $ | 6,571 | $ | 6,176 | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired for which there is a related allowance for loan loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | 57 | — | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
Related allowance | 5 | — | (Dollars in thousands) | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | 6,514 | 6,176 | Total loans considered impaired at year end | $ | 6,176 | $ | 9,353 | $ | 9,587 | |||||||||||||||||||||||||||||||||||||||||||
Average impaired loans | 7,719 | 6,704 | Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loan balance | $ | — | $ | 148 | $ | 378 | ||||||||||||||||||||||||||||||||||||||||||||||
Related allowance | $ | — | $ | 2 | $ | 96 | ||||||||||||||||||||||||||||||||||||||||||||||
Loans considered impaired and previously written down to fair value | $ | 6,176 | $ | 9,205 | $ | 9,209 | ||||||||||||||||||||||||||||||||||||||||||||||
Average impaired loans | $ | 6,704 | $ | 9,926 | $ | 10,576 | ||||||||||||||||||||||||||||||||||||||||||||||
Amount of interest earned during period of impairment | $ | 179 | $ | 397 | $ | 323 | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loan category and loans individually evaluated and considered impaired | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | $ | — | December 31, 2012 | Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||||||
Real estate: | Balance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 664 | 679 | — | 749 | 15 | 744 | 12 | Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | ||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | — | Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||
Real estate: | With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 57 | 57 | 5 | 56 | 7 | 58 | 2 | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage-residential | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 84 | $ | 84 | $ | — | $ | 149 | $ | 8 | $ | 264 | Total: | |||||||||||||||||||||||||||||||||||||||
Real estate: | Commercial | 37 | 50 | — | 53 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 721 | 736 | 5 | 805 | 22 | 802 | 14 | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,759 | 6,429 | — | 6,747 | 97 | 6,764 | 16 | Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||
Other | 7 | 7 | — | 18 | — | 17 | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
$ | 6,571 | $ | 7,256 | $ | 5 | $ | 7,719 | $ | 127 | $ | 7,847 | $ | 30 | Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||
Six months ended | Three months ended | $ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | |||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | ||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | (Dollars in thousands) | Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | December 31, 2011 | Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||||||||
Consumer: | With no allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Commercial | $ | 12 | $ | 19 | $ | — | $ | 21 | $ | — | ||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | Mortgage-residential | 622 | 650 | — | 656 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | Mortgage-commercial | 8,552 | 8,975 | — | 9,066 | 382 | |||||||||||||||||||||||||||||||||||||||
Real estate: | Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | — | — | Other | 19 | 19 | — | 30 | 1 | |||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | — | — | With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Commercial | 33 | 33 | 1 | 36 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | Mortgage-commercial | 115 | 115 | 1 | 117 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 24 | $ | 54 | $ | — | $ | 95 | $ | 1 | $ | 93 | $ | 1 | Consumer: | |||||||||||||||||||||||||||||||||||||
Real estate: | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | Other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 581 | 609 | — | 645 | 1 | 637 | 1 | Total: | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 8,650 | 9,059 | — | 9,535 | 142 | 11,679 | 68 | Commercial | 45 | 52 | 1 | 57 | 2 | |||||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | — | — | Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other | 28 | 28 | — | 41 | — | 37 | — | Mortgage-residential | 622 | 650 | — | 656 | 4 | |||||||||||||||||||||||||||||||||||||||
$ | 9,283 | $ | 9,750 | $ | — | $ | 10,316 | $ | 144 | $ | 12,446 | $ | 70 | Mortgage-commercial | 8,667 | 9,090 | 1 | 9,183 | 390 | |||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | Home Equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Principal | Related | Recorded | Income | Other | 19 | 19 | — | 30 | 1 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||
With no allowance recorded: | $ | 9,353 | $ | 9,811 | $ | 2 | $ | 9,926 | $ | 397 | ||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 37 | $ | 50 | $ | — | $ | 53 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 37 | 50 | — | 53 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 357 | 381 | — | 442 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | 6,162 | — | 6,188 | 178 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 10 | 10 | — | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 6,176 | $ | 6,603 | $ | — | $ | 6,704 | $ | 179 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of loan category and loan by risk categories | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,741 | $ | 52 | $ | 115 | $ | — | $ | 20,908 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 12,182 | 1,222 | 1,828 | — | 15,232 | (Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 35,900 | 1,186 | 1,277 | — | 38,363 | December 31, 2012 | Mention | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 217,627 | 5,899 | 10,243 | — | 233,769 | Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||||
Consumer: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 25,156 | 139 | 142 | — | 25,437 | Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | |||||||||||||||||||||||||||||||||||||||||
Other | 7,357 | 14 | 9 | — | 7,380 | Mortgage—residential | 36,493 | 1,677 | 722 | — | 38,892 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 318,963 | $ | 8,512 | $ | 13,614 | $ | — | $ | 341,089 | Mortgage—commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | ||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Special | Home Equity | 26,604 | 124 | 445 | — | 27,173 | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Pass | Mention | Substandard | Doubtful | Total | Other | 5,475 | 3 | 17 | — | 5,495 | |||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 20,826 | $ | 27 | $ | 71 | $ | — | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | |||||||||||||||||||||||||||||||||||||||||
Construction | 8,595 | 2,047 | 2,410 | — | 13,052 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — residential | 36,493 | 1,677 | 722 | — | 38,892 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage — commercial | 208,825 | 3,803 | 13,947 | — | 226,575 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 26,604 | 124 | 445 | — | 27,173 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 5,475 | 3 | 17 | — | 5,495 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 306,818 | $ | 7,681 | $ | 17,612 | $ | — | $ | 332,111 | (Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||||||||||||||
December 31, 2011 | Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 19,827 | $ | 499 | $ | 282 | $ | — | $ | 20,608 | ||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | 6,764 | — | 5,003 | — | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—residential | 37,063 | 305 | 969 | — | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—commercial | 200,984 | 8,009 | 11,295 | — | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | 27,692 | 38 | 246 | — | 27,976 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 5,311 | 5 | 19 | — | 5,335 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 297,641 | $ | 8,856 | $ | 17,814 | $ | — | $ | 324,311 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of loan category and present loans past due and on non-accrual status | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | Days | Past Due | than 90 | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 16 | $ | — | $ | — | $ | 84 | $ | 100 | $ | 20,808 | $ | 20,908 | (Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | ||||||||||||||||||||||||||||||
Real estate: | December 31, 2012 | Past Due | Past Due | 90 Days and | Due | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 15,232 | 15,232 | Accruing | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 514 | 70 | — | 663 | 1,247 | 37,116 | 38,363 | Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | ||||||||||||||||||||||||||||||
Mortgage-commercial | 1,448 | 464 | — | 5,224 | 7,136 | 226,633 | 233,769 | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||
Consumer: | Construction | — | — | — | — | — | 13,052 | 13,052 | ||||||||||||||||||||||||||||||||||||||||||||
Home equity | 170 | 21 | — | — | 191 | 25,246 | 25,437 | Mortgage—residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||
Other | 53 | 3 | — | 7 | 63 | 7,317 | 7,380 | Mortgage—commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | |||||||||||||||||||||||||||||||||||||
Total | $ | 2,201 | $ | 558 | $ | — | $ | 5,978 | $ | 8,737 | $ | 332,352 | $ | 341,089 | Consumer: | |||||||||||||||||||||||||||||||||||||
Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 | 60-89 Days | Greater | Nonaccrual | Total Past | Current | Total Loans | Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | |||||||||||||||||||||||||||||||||||||
December 31, 2012 | Days | Past Due | than 90 | Due | ||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Days and | Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | ||||||||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 17 | $ | 107 | $ | — | $ | 85 | $ | 209 | $ | 20,715 | $ | 20,924 | ||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 13,052 | 13,052 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-residential | 311 | 378 | — | 357 | 1,046 | 37,846 | 38,892 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage-commercial | 627 | 898 | 55 | 4,263 | 5,843 | 220,732 | 226,575 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | (Dollars in thousands) | 30 - 59 Days | 60 - 89 Days | Greater than | Nonaccrual | Total Past | Current | Total Loans | ||||||||||||||||||||||||||||||||||||||||||||
Home equity | 211 | — | — | — | 211 | 26,962 | 27,173 | December 31, 2011 | Past Due | Past Due | 90 Days and | Due | ||||||||||||||||||||||||||||||||||||||||
Other | 32 | 7 | — | 10 | 49 | 5,446 | 5,495 | Accruing | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,198 | $ | 1,390 | $ | 55 | $ | 4,715 | $ | 7,358 | $ | 324,753 | $ | 332,111 | Commercial | $ | 147 | $ | 123 | $ | — | $ | 12 | $ | 282 | $ | 20,326 | $ | 20,608 | |||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | 11,767 | 11,767 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage—residential | 391 | 95 | — | 623 | 1,109 | 37,228 | 38,337 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage—commercial | 1,382 | 966 | 25 | 4,749 | 7,122 | 213,166 | 220,288 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | 45 | — | — | — | 45 | 27,931 | 27,976 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 42 | 18 | — | 19 | 79 | 5,256 | 5,335 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,007 | $ | 1,202 | $ | 25 | $ | 5,403 | $ | 8,637 | $ | 315,674 | $ | 324,311 | ||||||||||||||||||||||||||||||||||||||
Schedule by loan category, present loans determined to be TDRs | ||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | For the twelve months ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Troubled Debt | Number | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 257 | $ | 257 | Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 257 | $ | 257 | Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—Commercial | 1 | $ | 40 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2012 | Total nonaccrual | 1 | $ | 40 | $ | 40 | ||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | Mortgage—Commercial | 2 | $ | 596 | $ | 596 | ||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | Total TDRs | 3 | $ | 636 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
For the twelve months ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | Troubled Debt | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||||||||||||
Restructurings | of | Outstanding | Outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2012 | (Dollars in thousands) | Contracts | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number | Pre-Modification | Post-Modification | Investment | Investment | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | of | Outstanding | Outstanding | Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | Mortgage—Commercial | 5 | $ | 741 | $ | 741 | ||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | Commercial & Industrial | 2 | 43 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Total nonaccrual | 7 | $ | 784 | $ | 784 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 53 | $ | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual | 1 | $ | 53 | $ | 40 | Accrual | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage—Commercial | 1 | $ | 3,138 | $ | 3,138 | |||||||||||||||||||||||||||||||||||||||||||||||
Accrual | Total Accrual | 1 | $ | 3,138 | $ | 3,138 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 2 | $ | 596 | $ | 596 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Accrual | 2 | $ | 596 | $ | 596 | Total TDRs | 8 | $ | 3,922 | $ | 3,922 | |||||||||||||||||||||||||||||||||||||||||
Total TDRs | 3 | $ | 649 | $ | 636 | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule by loan category, present loans determined to be TDRs in the last twelve months that had payment defaults during the period | There were no loans determined to be TDRs in the twelve months ended December 31, 2012 that subsequently defaulted during the twelve month period ended December 31, 2012. Defaulted loans are those loans that are greater than 89 days past due. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | For the twelve months | |||||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | Troubled Debt | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructurings that | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | subsequently defaulted | ||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | this period | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number | Recorded | ||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | For the six months ended | of | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2012 | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
that subsequently defaulted | Number | Recorded | Mortgage—Commercial | 4 | $ | 704 | ||||||||||||||||||||||||||||||||||||||||||||||
this period | of | Investment | Commercial & Industrial | 1 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 5 | $ | 715 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Commercial | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total TDRs | 1 | $ | 638 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||
Schedule of carrying amount and estimated fair value by classification Level of the Company's financial instruments | ||||||||||||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||
Financial Assets: | December 31, 2012 | |||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 24,287 | $ | 24,287 | $ | 24,287 | $ | — | $ | — | Fair Value | |||||||||||||||||||||||
Available-for-sale securities | 223,646 | 223,646 | 830 | 222,399 | 417 | Carrying | ||||||||||||||||||||||||||||
Other investments, at cost | 2,269 | — | — | — | 2,269 | (Dollars in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Loans held for sale | 5,789 | 5,789 | — | 5,789 | — | Financial Assets: | ||||||||||||||||||||||||||||
Net Loans receivable | 336,650 | 340,151 | — | 333,580 | 6,571 | Cash and short term investments | $ | 18,296 | $ | 18,296 | $ | 18,296 | $ | — | $ | — | ||||||||||||||||||
Accrued interest | 2,177 | 2,177 | 2,177 | — | — | Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||
Interest rate swap | (172 | ) | (172 | ) | — | — | (172 | ) | Other investments, at cost | 2,527 | — | — | — | 2,527 | ||||||||||||||||||||
Financial liabilities: | Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | ||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 105,478 | $ | 105,478 | $ | — | $ | 105,478 | $ | — | Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | ||||||||||||||||||
NOW and money market accounts | 186,778 | 186,778 | — | 186,778 | — | Accrued interest | 2,098 | 2,098 | 2,098 | — | — | |||||||||||||||||||||||
Savings | 47,238 | 47,238 | — | 47,238 | — | Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | ||||||||||||||||||||
Time deposits | 170,125 | 171,732 | — | 171,732 | — | Financial liabilities: | ||||||||||||||||||||||||||||
Total deposits | 509,619 | 511,226 | — | 511,226 | — | Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | ||||||||||||||||||
Federal Home Loan Bank Advances | 34,335 | 38,458 | — | 38,458 | — | NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | |||||||||||||||||||||||
Short term borrowings | 15,650 | 15,650 | — | 15,650 | — | Savings | 41,100 | 41,100 | — | 41,100 | — | |||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | Time deposits | 185,477 | 187,313 | — | 187,313 | — | |||||||||||||||||||||||
Accrued interest payable | 666 | 666 | 666 | — | — | |||||||||||||||||||||||||||||
Total deposits | 474,977 | 476,813 | — | 476,813 | — | |||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | |||||||||||||||||||||||||||||
December 31, 2012 | Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | ||||||||||||||||||||||||||||
Fair Value | Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | ||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying | Total | Level 1 | Level 2 | Level 3 | Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | |||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||
Cash and short term investments | $ | 18,708 | $ | 18,708 | $ | 18,708 | $ | — | $ | — | ||||||||||||||||||||||||
Available-for-sale securities | 203,445 | 203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||||||||
Other investments, at cost | 2,527 | — | — | — | 2,527 | December 31, 2011 | ||||||||||||||||||||||||||||
Loans held for sale | 9,658 | 9,658 | — | 9,658 | — | (Dollars in thousands) | Carrying | Fair | ||||||||||||||||||||||||||
Net loans receivable | 327,490 | 328,893 | — | 322,717 | 6,176 | Amount | Value | |||||||||||||||||||||||||||
Accrued interest | 2,098 | 2,098 | 2,098 | — | — | Financial Assets: | ||||||||||||||||||||||||||||
Interest rate swap | (338 | ) | (338 | ) | — | — | (338 | ) | Cash and short term investments | $ | 16,492 | $ | 16,492 | |||||||||||||||||||||
Financial liabilities: | Available-for-sale securities | 201,032 | 201,032 | |||||||||||||||||||||||||||||||
Non-interest bearing demand | $ | 97,526 | $ | 97,526 | $ | — | $ | 97,526 | $ | — | Other investments, at cost | 5,637 | — | |||||||||||||||||||||
NOW and money market accounts | 150,874 | 150,874 | — | 150,874 | — | Loans held for sale | 3,725 | 3,725 | ||||||||||||||||||||||||||
Savings | 41,100 | 41,100 | — | 41,100 | — | Net loans receivable | 319,612 | 319,505 | ||||||||||||||||||||||||||
Time deposits | 185,477 | 187,313 | — | 187,313 | — | Accrued interest | 1,914 | 1,914 | ||||||||||||||||||||||||||
Total deposits | 474,977 | 476,813 | — | 476,813 | — | Interest rate swap | (602 | ) | (602 | ) | ||||||||||||||||||||||||
Federal Home Loan Bank Advances | 36,344 | 41,977 | — | 41,977 | — | Financial liabilities: | ||||||||||||||||||||||||||||
Short term borrowings | 15,900 | 15,900 | — | 15,900 | — | Non-interest bearing demand | $ | 83,572 | $ | 83,572 | ||||||||||||||||||||||||
Junior subordinated debentures | 15,464 | 15,464 | — | 15,464 | — | NOW and money market accounts | 136,483 | 136,483 | ||||||||||||||||||||||||||
Accrued interest payable | 1,029 | 1,029 | 1,029 | — | — | Savings | 34,048 | 34,048 | ||||||||||||||||||||||||||
Time deposits | 210,482 | 214,437 | ||||||||||||||||||||||||||||||||
Total deposits | 464,585 | 468,540 | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 43,862 | 50,238 | ||||||||||||||||||||||||||||||||
Short term borrowings | 13,616 | 13,616 | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | 17,913 | 17,913 | ||||||||||||||||||||||||||||||||
Accrued interest payable | 1,624 | 1,624 | ||||||||||||||||||||||||||||||||
Schedule of changes in fair values and location in the income statement where these changes are included | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Six months ended | Three months ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Description | Non-interest | Non-interest | Non-interest | Non-interest | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||
income: | income: | income: | income: | (Dollars in thousands) | Non-interest | Non-interest | Non-interest | |||||||||||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | income: | income: | income: | ||||||||||||||||||||||||||||
adjustment | adjustment | adjustment | adjustment | Fair-value | Fair-value | Fair-value | ||||||||||||||||||||||||||||
loss | loss | loss | loss | adjustment | adjustment | adjustment | ||||||||||||||||||||||||||||
Interest rate swap | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | gain (loss) | gain (loss) | gain (loss) | |||||||||||||||||||
Total | $ | (2 | ) | $ | (37 | ) | $ | (2 | ) | $ | (4 | ) | Interest rate swap | (58 | ) | (166 | ) | (581 | ) | |||||||||||||||
Total | $ | (58 | ) | $ | (166 | ) | $ | (581 | ) | |||||||||||||||||||||||||
Schedule of fair value for each category of assets carried at fair value that are measured on a recurring basis | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | (Dollars in thousands) | |||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||
Assets | (Level 2) | 2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||
(Level 1) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Available for sale securities | Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,462 | $ | — | $ | 1,462 | $ | — | Assets | (Level 2) | ||||||||||||||||||||||||
Mortgage-backed securities | 122,649 | — | 122,649 | — | (Level 1) | |||||||||||||||||||||||||||||
Small Business Administration securities | 57,304 | — | 57,304 | — | Available for sale securities | |||||||||||||||||||||||||||||
State and local government | 39,922 | — | 39,922 | — | Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | |||||||||||||||||||||
Corporate and other securities | 2,309 | 830 | 1,062 | 417 | Mortgage-backed securities | 112,144 | — | 112,144 | — | |||||||||||||||||||||||||
223,646 | 830 | 222,399 | 417 | Small Business Administration securities | 54,993 | — | 54,993 | — | ||||||||||||||||||||||||||
State and local government | 32,373 | — | 32,373 | — | ||||||||||||||||||||||||||||||
Interest rate swap | (172 | ) | — | — | (172 | ) | Corporate and other securities | 2,401 | 914 | 1,070 | 417 | |||||||||||||||||||||||
Total | $ | 223,474 | $ | 830 | $ | 222,399 | $ | 245 | ||||||||||||||||||||||||||
203,445 | 914 | 202,114 | 417 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate cap/swap | (338 | ) | — | — | (338 | ) | |||||||||||||||||||||||||||
Description | December | Quoted | Significant | Significant | Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | |||||||||||||||||||||
31, 2012 | Prices in | Other | Unobservable | |||||||||||||||||||||||||||||||
Active | Observable | Inputs | ||||||||||||||||||||||||||||||||
Markets for | Inputs | (Level 3) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Identical | (Level 2) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||
(Level 1) | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||
Available for sale securities | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||||||
Government sponsored enterprises | $ | 1,534 | $ | — | $ | 1,534 | $ | — | Markets for | Observable | Inputs | |||||||||||||||||||||||
Mortgage-backed securities | 112,144 | — | 112,144 | — | Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||
Small Business Administration securities | 54,993 | — | 54,993 | — | Assets | (Level 2) | ||||||||||||||||||||||||||||
State and local government | 32,373 | — | 32,373 | — | (Level 1) | |||||||||||||||||||||||||||||
Corporate and other securities | 2,401 | 914 | 1,070 | 417 | Available for sale securities | |||||||||||||||||||||||||||||
203,445 | 914 | 202,114 | 417 | Government sponsored enterprises | $ | 34 | $ | — | $ | 34 | $ | — | ||||||||||||||||||||||
Mortgage backed securities | 141,631 | — | 141,631 | — | ||||||||||||||||||||||||||||||
Interest rate swap | (338 | ) | — | — | (338 | ) | Small Business Administration securities | 36,479 | — | 36,479 | — | |||||||||||||||||||||||
Total | $ | 203,107 | $ | 914 | $ | 202,114 | $ | 79 | State and local government | 20,488 | — | 20,488 | — | |||||||||||||||||||||
Corporate and other securities | 2,400 | 926 | 1,474 | — | ||||||||||||||||||||||||||||||
201,032 | 926 | 200,106 | — | |||||||||||||||||||||||||||||||
Interest rate cap/floor | (602 | ) | — | — | (602 | ) | ||||||||||||||||||||||||||||
Total | $ | 200,430 | $ | 926 | $ | 200,106 | $ | (602 | ) | |||||||||||||||||||||||||
Schedule reconciling the changes in Level 3 financial instruments measured on a recurring basis | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | ||||||||||||||||||||||||||||||||
Stock | ||||||||||||||||||||||||||||||||||
Beginning Balance December 31, 2012 | $ | (338 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | (Dollars in thousands) | Interest rate | Corporate Preferred | ||||||||||||||||||||||||||||
Swap | Stock | |||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | Beginning Balance December 31, 2011 | $ | (602 | ) | — | |||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 168 | — | Included in earnings | (58 | ) | — | ||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | ||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Purchases, issuances, and settlements | 322 | 417 | |||||||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||
Ending Balance December 31, 2012 | $ | (338 | ) | 417 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate Swap | Corporate Preferred | ||||||||||||||||||||||||||||||||
Stock | ||||||||||||||||||||||||||||||||||
Beginning Balance March 31, 2013 | $ | (254 | ) | 417 | ||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (2 | ) | — | |||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | (Dollars in thousands) | State and local | Corporate and other | Interest rate | ||||||||||||||||||||||||||||
government | securities | Swap | ||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 84 | — | securities | |||||||||||||||||||||||||||||||
Beginning Balance December 31, 2010 | $ | 625 | $ | 182 | $ | (778 | ) | |||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | Total gains or losses (realized/unrealized) | |||||||||||||||||||||||||||||||
Ending Balance June 30, 2013 | $ | (172 | ) | $ | 417 | Included in earnings | — | (103 | ) | (166 | ) | |||||||||||||||||||||||
Included in other comprehensive income | — | (79 | ) | — | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | (625 | ) | — | 342 | ||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | |||||||||||||||||||||||||||||||||
Cap/Floor/Swap | Ending Balance December 31, 2011 | $ | — | $ | — | $ | (602 | ) | ||||||||||||||||||||||||||
Beginning Balance December 31, 2011 | $ | (602 | ) | |||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (37 | ) | ||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 160 | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest rate | |||||||||||||||||||||||||||||||||
Cap/Floor/Swap | ||||||||||||||||||||||||||||||||||
Beginning Balance March 31, 2012 | $ | (553 | ) | |||||||||||||||||||||||||||||||
Total gains or losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||
Included in earnings | (4 | ) | ||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | 78 | |||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||||
Ending Balance June 30, 2012 | $ | (479 | ) | |||||||||||||||||||||||||||||||
Schedule of the fair value for each category of assets carried at fair value that are measured on a non-recurring basis | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Description | June 30, | Quoted Prices | Significant | Significant | (Dollars in thousands) | |||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||
Assets | (Level 2) | 2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||
(Level 1) | Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Impaired loans: | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 84 | $ | — | $ | — | $ | 84 | (Level 1) | (Level 2) | ||||||||||||||||||||||||
Real estate: | Impaired loans: | |||||||||||||||||||||||||||||||||
Mortgage-residential | 716 | — | — | 716 | Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | |||||||||||||||||||||
Mortgage-commercial | 5,759 | — | — | 5,759 | Real estate: | |||||||||||||||||||||||||||||
Consumer: | Mortgage-residential | 357 | — | — | 357 | |||||||||||||||||||||||||||||
Home equity | — | — | — | — | Mortgage-commercial | 5,772 | — | — | 5,772 | |||||||||||||||||||||||||
Other | 7 | — | — | 7 | Consumer: | |||||||||||||||||||||||||||||
Total impaired | 6,566 | — | — | 6,566 | Home equity | — | — | — | — | |||||||||||||||||||||||||
Other real estate owned: | Other | 10 | — | — | 10 | |||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | ||||||||||||||||||||||||||||||
Mortgage-residential | 302 | — | — | 302 | Total impaired | 6,176 | — | — | 6,176 | |||||||||||||||||||||||||
Mortgage-commercial | 2,221 | — | — | 2,221 | ||||||||||||||||||||||||||||||
Total other real estate owned | 2,824 | — | — | 2,824 | Other real estate owned: | |||||||||||||||||||||||||||||
Total | $ | 9,390 | $ | — | $ | — | $ | 9,390 | Construction | 301 | — | — | 301 | |||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage-commercial | 3,198 | — | — | 3,198 | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices | Significant | Significant | Total other real estate owned | 3,987 | — | — | 3,987 | |||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||||||||||
(Level 1) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||||||||||||||||
Commercial & Industrial | $ | 37 | $ | — | $ | — | $ | 37 | ||||||||||||||||||||||||||
Real estate: | Description | December 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||
Mortgage-residential | 357 | — | — | 357 | 2011 | in Active | Other | Unobservable | ||||||||||||||||||||||||||
Mortgage-commercial | 5,772 | — | — | 5,772 | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Consumer: | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Home equity | — | — | — | — | (Level 1) | (Level 2) | ||||||||||||||||||||||||||||
Other | 10 | — | — | 10 | Impaired loans: | |||||||||||||||||||||||||||||
Total impaired | 6,176 | — | — | 6,176 | Commercial & Industrial | $ | 44 | $ | — | $ | — | $ | 44 | |||||||||||||||||||||
Other real estate owned: | Real estate: | |||||||||||||||||||||||||||||||||
Construction | 301 | — | — | 301 | Mortgage-residential | 622 | — | — | 622 | |||||||||||||||||||||||||
Mortgage-residential | 488 | — | — | 488 | Mortgage-commercial | 8,666 | — | — | 8,666 | |||||||||||||||||||||||||
Mortgage-commercial | 3,198 | — | — | 3,198 | Consumer: | |||||||||||||||||||||||||||||
Total other real estate owned | 3,987 | — | — | 3,987 | Home equity | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 10,163 | $ | — | $ | — | $ | 10,163 | Other | 19 | — | — | 19 | |||||||||||||||||||||
Total impaired | 9,351 | — | — | 9,351 | ||||||||||||||||||||||||||||||
Other real estate owned: | — | — | ||||||||||||||||||||||||||||||||
Construction | 2,156 | — | — | 2,156 | ||||||||||||||||||||||||||||||
Mortgage-residential | 4,278 | — | — | 4,278 | ||||||||||||||||||||||||||||||
Mortgage-commercial | 917 | — | — | 917 | ||||||||||||||||||||||||||||||
Total other real estate owned | 7,351 | — | — | 7,351 | ||||||||||||||||||||||||||||||
Total | $ | 16,702 | $ | — | $ | — | $ | 16,702 | ||||||||||||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurements | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2013 and December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
June 30, 2013 | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (172 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | (Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant | |||||||||||||||||||||||
December 31, | Observable | Unobservable | ||||||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | 2012 | Inputs | Inputs | ||||||||||||||||||||||||||
Interest Rate Swap | $ | (388 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
OREO | $ | 2,824 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable | n/a | |||||||||||||||||||||||
transactions | ||||||||||||||||||||||||||||||||||
Impaired loans | $ | 6,566 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||
Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value as of | Valuation Technique | Significant | Significant Unobservable | ||||||||||||||||||||||||||||||
December 31, | Observable Inputs | Inputs | ||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (338 | ) | Discounted cash flows | Weighted Average Credit Factor | 3.20% | ||||||||||||||||||||||||||||
Preferred stock | $ | 417 | Estimation based on comparable non-listed securities | Comparable transactions | n/a | |||||||||||||||||||||||||||||
OREO | $ | 3,987 | Appraisal Value/Comparison Sales/Other estimates | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost | |||||||||||||||||||||||||||||
Impaired loans | $ | 6,176 | Appraisal Value | Appraisals and or sales of comparable properties | Appraisals discounted 6% to 16% for sales commissions and other holding cost |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Changes in accumulated other comprehensive income (loss) | |||||||
Balance at the beginning of the period | $2,104 | $2,192 | $2,358 | $1,329 | $1,329 | ||
Other comprehensive loss before reclassifications | -2,896 | -742 | -3,140 | -4 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | -88 | 25 | -98 | 150 | |||
Other comprehensive income (loss) | -2,984 | -717 | -3,238 | 146 | 1,029 | 3,570 | -588 |
Balance at the end of the period | ($880) | $1,475 | ($880) | $1,475 | $2,358 | $1,329 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 16, 2011 | Dec. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 16, 2011 | Dec. 31, 2011 | |
8.75% subordinated notes | 8.75% subordinated notes | Options | Options | Warrants | Warrants | |||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||
Numerator (Net income available to common shareholders) | $1,203,000 | $1,021,000 | $881,000 | $760,000 | $630,000 | $903,000 | $790,000 | $558,000 | $403,000 | $2,241,000 | $1,390,000 | $3,292,000 | $2,654,000 | $1,190,000 | ||||||
Weighted average common shares outstanding for: | ||||||||||||||||||||
Basic earnings per share (in shares) | 5,292,000 | 3,329,000 | 5,274,000 | 3,319,000 | 4,144,000 | 3,287,000 | 3,262,000 | |||||||||||||
Dilutive securities: | ||||||||||||||||||||
Warrants - Treasury stock method (in shares) | 37,000 | 28,000 | 38,000 | 24,000 | 28,000 | |||||||||||||||
Diluted earnings per share (in shares) | 5,329,000 | 3,357,000 | 5,312,000 | 3,343,000 | 4,172,000 | 3,287,000 | 3,262,000 | |||||||||||||
The average market price used in calculating assumed number of shares (in dollars per share) | $9.05 | $7.99 | $9.15 | $7.63 | $7.98 | $6.34 | $5.78 | |||||||||||||
Earnings per common share | ||||||||||||||||||||
Outstanding securities not deemed to be dilutive (in shares) | 73,022 | |||||||||||||||||||
Average exercise price of options (in dollars per share) | $20.23 | $20.23 | ||||||||||||||||||
Exercise price of warrants (in dollars per share) | $5.90 | |||||||||||||||||||
Number of options with an exercise price below the average market price (in shares) | 0 | 0 | ||||||||||||||||||
Average market price of options or warrants (in dollars per share) | $9.05 | $9.15 | ||||||||||||||||||
Debt issued | $2,500,000 | $2,500,000 | ||||||||||||||||||
Interest rate (as a percent) | 8.75% | |||||||||||||||||||
Warrants issued (in shares) | 107,500 | 107,500 |
Recovered_Sheet12
Investment Securities (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Investment Securities | |||||||
Amortized Cost | $225,033,000 | $225,033,000 | $199,927,000 | $199,072,000 | |||
Gross Unrealized Gains | 2,314,000 | 2,314,000 | 4,352,000 | 4,438,000 | |||
Gross Unrealized Losses | 3,701,000 | 3,701,000 | 834,000 | 2,478,000 | |||
Fair Value | 223,646,000 | 223,646,000 | 203,445,000 | 201,032,000 | |||
FHLB Stock | 2,300,000 | 2,300,000 | 2,500,000 | 1,800,000 | |||
Proceeds from sale of investment securities available-for-sale | 1,700,000 | 44,800,000 | 3,515,000 | 49,075,000 | 59,012,000 | 56,003,000 | 85,456,000 |
Gross realized gains | 133,000 | 1,900,000 | 148,400 | 2,000,000 | 2,200,000 | 2,600,000 | 2,500,000 |
Gross realized losses | 0 | 1,900,000 | 0 | 2,100,000 | 2,100,000 | 2,000,000 | 1,700,000 |
Government sponsored enterprises | |||||||
Investment Securities | |||||||
Amortized Cost | 1,518,000 | 1,518,000 | 1,522,000 | 31,000 | |||
Gross Unrealized Gains | 1,000 | 1,000 | 12,000 | 3,000 | |||
Gross Unrealized Losses | 57,000 | 57,000 | |||||
Fair Value | 1,462,000 | 1,462,000 | 1,534,000 | 34,000 | |||
Mortgage-backed securities | |||||||
Investment Securities | |||||||
Amortized Cost | 122,527,000 | 122,527,000 | 110,425,000 | 141,103,000 | |||
Gross Unrealized Gains | 1,492,000 | 1,492,000 | 2,343,000 | 2,876,000 | |||
Gross Unrealized Losses | 1,370,000 | 1,370,000 | 624,000 | 2,348,000 | |||
Fair Value | 122,649,000 | 122,649,000 | 112,144,000 | 141,631,000 | |||
Small Business Administration pools | |||||||
Investment Securities | |||||||
Amortized Cost | 56,886,000 | 56,886,000 | 54,148,000 | 35,889,000 | |||
Gross Unrealized Gains | 711,000 | 711,000 | 1,008,000 | 634,000 | |||
Gross Unrealized Losses | 293,000 | 293,000 | 163,000 | 44,000 | |||
Fair Value | 57,304,000 | 57,304,000 | 54,993,000 | 36,479,000 | |||
State and local government | |||||||
Investment Securities | |||||||
Amortized Cost | 41,753,000 | 41,753,000 | 31,483,000 | 19,617,000 | |||
Gross Unrealized Gains | 108,000 | 108,000 | 936,000 | 871,000 | |||
Gross Unrealized Losses | 1,939,000 | 1,939,000 | 46,000 | ||||
Fair Value | 39,922,000 | 39,922,000 | 32,373,000 | 20,488,000 | |||
Corporate and other securities | |||||||
Investment Securities | |||||||
Amortized Cost | 2,349,000 | 2,349,000 | 2,349,000 | 2,432,000 | |||
Gross Unrealized Gains | 2,000 | 2,000 | 53,000 | 54,000 | |||
Gross Unrealized Losses | 42,000 | 42,000 | 1,000 | 86,000 | |||
Fair Value | 2,309,000 | 2,309,000 | 2,401,000 | 2,400,000 | |||
Corporate bonds | |||||||
Investment Securities | |||||||
Fair Value | 1,000,000 | 1,000,000 | 1,000,000 | 1,400,000 | |||
Mutual funds | |||||||
Investment Securities | |||||||
Fair Value | 829,900 | 829,900 | 884,500 | 904,900 | |||
Foreign debt | |||||||
Investment Securities | |||||||
Fair Value | 59,500 | 59,500 | 59,700 | 59,600 | |||
Federal Home Loan Mortgage Corporation preferred stock | |||||||
Investment Securities | |||||||
Fair Value | 30,000 | 20,900 | |||||
Corporate preferred stock | |||||||
Investment Securities | |||||||
Fair Value | $416,800 | $416,800 | $416,700 |
Recovered_Sheet13
Investment Securities (Details 2) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Available-for-sale securities | ||||
Total OTTI charge realized and unrealized | $415 | $415 | $262 | $4,310 |
OTTI recognized in other comprehensive income (non-credit component) | 215 | 215 | -35 | 2,858 |
Net impairment losses recognized in earnings (credit component) | $200 | $200 | $297 | $1,452 |
Recovered_Sheet14
Investment Securities (Details 3) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Non-agency mortgage-backed securities | Balance of the portfolio | |||||
Analysis of amounts relating to credit losses on debt securities recognized in earnings | |||||
Average prepayment rate (as a percent) | 16.70% | 13.70% | |||
Default rate (as a percent) | 7.60% | 8.00% | |||
Average severity (as a percent) | 50.90% | 50.40% | |||
Available-for-sale | |||||
Analysis of amounts relating to credit losses on debt securities recognized in earnings | |||||
Balance at beginning of period | $271 | $930 | $930 | $2,143 | $545 |
Other-than-temporary-impairment not previously recognized | 173 | 173 | 50 | 291 | |
Additional increase for which an other-than-temporary impairment was previously recognized related to credit losses | 27 | 27 | 247 | 1,161 | |
Other-than-temporary impairment previously recognized in securities sold | -679 | -679 | |||
Realized losses during the period | -46 | -136 | -180 | -1,510 | -94 |
Balance related to credit losses on debt securities at end of period | $225 | $315 | $271 | $930 | $2,143 |
Recovered_Sheet15
Investment Securities (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
item | item | item | item | item | ||||
Fair Value | ||||||||
Less than 12 months | $106,876,000 | $106,876,000 | $36,274,000 | $32,735,000 | ||||
12 months or more | 5,033,000 | 5,033,000 | 9,443,000 | 19,271,000 | ||||
Total | 111,909,000 | 111,909,000 | 45,717,000 | 52,006,000 | ||||
Unrealized Loss | ||||||||
Less than 12 months | 3,657,000 | 3,657,000 | 437,000 | 264,000 | ||||
12 months or more | 44,000 | 44,000 | 397,000 | 2,214,000 | ||||
Total | 3,701,000 | 3,701,000 | 834,000 | 2,478,000 | ||||
Amortized cost of securities | 223,646,000 | 223,646,000 | 203,445,000 | 201,032,000 | ||||
Fair value of securities | 223,646,000 | 223,646,000 | 203,445,000 | 201,032,000 | ||||
Impairment charges recognized in earnings, credit component | 200,000 | 200,000 | 297,000 | 1,452,000 | ||||
OTTI charges | 415,000 | 415,000 | 262,000 | 4,310,000 | ||||
Government sponsored enterprises | ||||||||
Fair Value | ||||||||
Less than 12 months | 1,444,000 | 1,444,000 | ||||||
Total | 1,444,000 | 1,444,000 | ||||||
Unrealized Loss | ||||||||
Less than 12 months | 57,000 | 57,000 | ||||||
Total | 57,000 | 57,000 | ||||||
Fair value of securities | 1,462,000 | 1,462,000 | 1,534,000 | 34,000 | ||||
Small Business Administration pools | ||||||||
Fair Value | ||||||||
Less than 12 months | 21,213,000 | 21,213,000 | 11,013,000 | 6,108,000 | ||||
12 months or more | 882,000 | 882,000 | 2,447,000 | 2,203,000 | ||||
Total | 22,095,000 | 22,095,000 | 13,460,000 | 8,311,000 | ||||
Unrealized Loss | ||||||||
Less than 12 months | 289,000 | 289,000 | 158,000 | 38,000 | ||||
12 months or more | 4,000 | 4,000 | 5,000 | 6,000 | ||||
Total | 293,000 | 293,000 | 163,000 | 44,000 | ||||
Fair value of securities | 57,304,000 | 57,304,000 | 54,993,000 | 36,479,000 | ||||
Government Sponsored Enterprise mortgage-backed securities | ||||||||
Fair Value | ||||||||
Less than 12 months | 53,766,000 | 53,766,000 | 22,662,000 | 25,113,000 | ||||
12 months or more | 3,118,000 | 3,118,000 | 4,583,000 | 3,269,000 | ||||
Total | 56,884,000 | 56,884,000 | 27,245,000 | 28,382,000 | ||||
Unrealized Loss | ||||||||
Less than 12 months | 1,330,000 | 1,330,000 | 233,000 | 163,000 | ||||
12 months or more | 35,000 | 35,000 | 13,000 | 24,000 | ||||
Total | 1,365,000 | 1,365,000 | 246,000 | 187,000 | ||||
Government Sponsored Enterprise mortgage-backed securities | First Community Bank | ||||||||
Unrealized Loss | ||||||||
Amortized cost of securities | 119,900,000 | 119,900,000 | 107,300,000 | |||||
Fair value of securities | 120,000,000 | 120,000,000 | 109,400,000 | |||||
Corporate and other securities | ||||||||
Fair Value | ||||||||
Less than 12 months | 871,000 | 871,000 | 940,000 | |||||
12 months or more | 50,000 | 50,000 | 50,000 | 524,000 | ||||
Total | 921,000 | 921,000 | 50,000 | 1,464,000 | ||||
Unrealized Loss | ||||||||
Less than 12 months | 41,000 | 41,000 | 60,000 | |||||
12 months or more | 1,000 | 1,000 | 1,000 | 26,000 | ||||
Total | 42,000 | 42,000 | 1,000 | 86,000 | ||||
Fair value of securities | 2,309,000 | 2,309,000 | 2,401,000 | 2,400,000 | ||||
Corporate bonds | ||||||||
Unrealized Loss | ||||||||
Fair value of securities | 1,000,000 | 1,000,000 | 1,000,000 | 1,400,000 | ||||
Non-agency mortgage-backed /CMO securities | ||||||||
Fair Value | ||||||||
Less than 12 months | 64,000 | 64,000 | 574,000 | |||||
12 months or more | 983,000 | 983,000 | 2,363,000 | 13,275,000 | ||||
Total | 1,047,000 | 1,047,000 | 2,363,000 | 13,849,000 | ||||
Unrealized Loss | ||||||||
Less than 12 months | 1,000 | 1,000 | 3,000 | |||||
12 months or more | 4,000 | 4,000 | 378,000 | 2,158,000 | ||||
Total | 5,000 | 5,000 | 378,000 | 2,161,000 | ||||
Number of securities with OTTI subsequently sold | 1 | |||||||
Number of securities with OTTI | 2 | 2 | 3 | 9 | 5 | |||
Fair value of securities with OTTI | 2,500,000 | 2,500,000 | ||||||
Impairment charges recognized in earnings, credit component | 199,800 | 199,800 | 293,000 | 477,000 | 491,000 | |||
OTTI charges | 0 | 0 | 0 | 199,800 | 199,800 | |||
Non-agency mortgage-backed /CMO securities | First Community Bank | ||||||||
Unrealized Loss | ||||||||
Amortized cost of securities | 2,700,000 | 2,700,000 | 3,100,000 | |||||
Fair value of securities | 2,700,000 | 2,700,000 | 2,700,000 | |||||
State and local government | ||||||||
Fair Value | ||||||||
Less than 12 months | 29,518,000 | 29,518,000 | 2,599,000 | |||||
Total | 29,518,000 | 29,518,000 | 2,599,000 | |||||
Unrealized Loss | ||||||||
Less than 12 months | 1,939,000 | 1,939,000 | 46,000 | |||||
Total | 1,939,000 | 1,939,000 | 46,000 | |||||
Fair value of securities | $39,922,000 | $39,922,000 | $32,373,000 | $20,488,000 |
Recovered_Sheet16
Investment Securities (Details 5) (Non-agency mortgage-backed /CMO securities, USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | item | item |
Investment Securities | ||
Number of CUSIPs | 13 | 13 |
Par Value | $2,988 | $3,443 |
Amortized Cost | 2,669 | 3,088 |
Fair Value | 2,703 | 2,715 |
AA | ||
Investment Securities | ||
Number of CUSIPs | 2 | 2 |
Par Value | 198 | 264 |
Amortized Cost | 198 | 264 |
Fair Value | 201 | 268 |
A1 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 324 | 380 |
Amortized Cost | 324 | 380 |
Fair Value | 343 | 374 |
A3 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 281 | 320 |
Amortized Cost | 281 | 320 |
Fair Value | 283 | 318 |
BBB | ||
Investment Securities | ||
Number of CUSIPs | 3 | 1 |
Par Value | 240 | 231 |
Amortized Cost | 240 | 231 |
Fair Value | 237 | 225 |
Baa1 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 65 | 71 |
Amortized Cost | 65 | 71 |
Fair Value | 64 | 72 |
Baa2 | ||
Investment Securities | ||
Number of CUSIPs | 1 | 1 |
Par Value | 33 | 97 |
Amortized Cost | 33 | 97 |
Fair Value | 33 | 96 |
Below Investment Grade | ||
Investment Securities | ||
Number of CUSIPs | 4 | 4 |
Par Value | 1,847 | 2,008 |
Amortized Cost | 1,528 | 1,653 |
Fair Value | $1,542 | $1,291 |
Recovered_Sheet17
Investment Securities (Details 6) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale, Amortized Cost | ||
Due in one year or less | $20,260 | |
Due after one year through five years | 86,248 | |
Due after five years through ten years | 88,107 | |
Due after ten years | 30,418 | |
Total | 225,033 | 199,927 |
Available-for-sale, Fair Value | ||
Due in one year or less | 20,442 | |
Due after one year through five years | 86,729 | |
Due after five years through ten years | 86,334 | |
Due after ten years | 30,141 | |
Total | $223,646 | $203,445 |
Recovered_Sheet18
Loans (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Loans | ||||||||||||||
Loans | $341,089 | $332,111 | $324,913 | $324,311 | $341,089 | $324,913 | $332,111 | $324,311 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 4,534 | 4,742 | 4,745 | 4,699 | 4,911 | 4,621 | 4,699 | 4,699 | 4,911 | 4,854 | ||||
Provision for loan losses | 100 | 80 | 115 | 71 | 230 | 310 | 360 | 390 | 360 | 250 | 301 | 496 | 1,420 | 1,878 |
Charged off loans | -209 | -95 | -523 | -307 | -742 | -1,696 | -1,948 | |||||||
Recoveries | 14 | 21 | 91 | 49 | 168 | 64 | 127 | |||||||
Balance at end of the period | 4,439 | 4,621 | 4,742 | 4,745 | 4,699 | 4,439 | 4,742 | 4,621 | 4,699 | 4,911 | ||||
Commercial, financial and agricultural | ||||||||||||||
Loans | ||||||||||||||
Loans | 20,908 | 20,924 | 20,608 | 20,908 | 20,924 | 20,608 | ||||||||
Real estate: Construction | ||||||||||||||
Loans | ||||||||||||||
Loans | 15,232 | 13,052 | 12,302 | 11,767 | 15,232 | 12,302 | 13,052 | 11,767 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 21 | 905 | 905 | |||||||||||
Provision for loan losses | 4 | 25 | -905 | |||||||||||
Balance at end of the period | 25 | 25 | ||||||||||||
Real estate: Mortgage-residential | ||||||||||||||
Loans | ||||||||||||||
Loans | 38,363 | 38,892 | 38,779 | 38,337 | 38,363 | 38,779 | 38,892 | 38,337 | ||||||
Fair value of residential mortgage loans held for sale | 5,800 | 9,700 | 5,800 | 9,700 | ||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 199 | 500 | 514 | 465 | 235 | 514 | 514 | 465 | ||||||
Provision for loan losses | 151 | 114 | 58 | 106 | -253 | 230 | ||||||||
Charged off loans | -32 | -17 | -36 | -30 | -112 | -186 | ||||||||
Recoveries | 1 | 2 | 62 | 9 | 86 | 5 | ||||||||
Balance at end of the period | 319 | 235 | 599 | 514 | 319 | 599 | 235 | 514 | ||||||
Real estate: Mortgage-commercial | ||||||||||||||
Loans | ||||||||||||||
Loans | 233,769 | 226,575 | 221,880 | 220,288 | 233,769 | 221,880 | 226,575 | 220,288 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 1,075 | 1,430 | 1,475 | 1,404 | 1,322 | 1,475 | 1,475 | 1,404 | ||||||
Provision for loan losses | 169 | -117 | 157 | 16 | 140 | 932 | ||||||||
Charged off loans | -162 | -397 | -178 | -293 | -861 | |||||||||
Balance at end of the period | 1,082 | 1,322 | 1,313 | 1,475 | 1,082 | 1,313 | 1,322 | 1,475 | ||||||
Consumer: Home equity | ||||||||||||||
Loans | ||||||||||||||
Loans | 25,437 | 27,173 | 26,945 | 27,976 | 25,437 | 26,945 | 27,173 | 27,976 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 236 | 566 | 521 | 325 | 400 | 521 | 521 | 325 | ||||||
Provision for loan losses | -9 | -121 | -131 | -78 | -124 | 476 | ||||||||
Charged off loans | -2 | -44 | -285 | |||||||||||
Recoveries | 1 | 1 | 2 | 3 | 5 | |||||||||
Balance at end of the period | 226 | 400 | 445 | 521 | 226 | 445 | 400 | 521 | ||||||
Consumer: Other | ||||||||||||||
Loans | ||||||||||||||
Loans | 7,380 | 5,495 | 5,266 | 5,335 | 7,380 | 5,266 | 5,495 | 5,335 | ||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at the beginning of the period | 78 | 53 | 57 | 88 | 17 | 57 | 57 | 88 | ||||||
Provision for loan losses | 28 | 2 | 110 | 12 | 2 | 45 | ||||||||
Charged off loans | -13 | -16 | -39 | -37 | -79 | -99 | ||||||||
Recoveries | 3 | 6 | 8 | 13 | 37 | 23 | ||||||||
Balance at end of the period | $96 | $17 | $45 | $57 | $96 | $45 | $17 | $57 |
Recovered_Sheet19
Loans (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | |
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | $4,534,000 | $4,742,000 | $4,745,000 | $4,699,000 | $4,911,000 | $4,621,000 | $4,699,000 | $4,699,000 | $4,911,000 | $4,854,000 | |||||
Charge-offs | 209,000 | 95,000 | 523,000 | 307,000 | 742,000 | 1,696,000 | 1,948,000 | ||||||||
Recoveries | 14,000 | 21,000 | 91,000 | 49,000 | 168,000 | 64,000 | 127,000 | ||||||||
Provisions | 100,000 | 80,000 | 115,000 | 71,000 | 230,000 | 310,000 | 360,000 | 390,000 | 360,000 | 250,000 | 301,000 | 496,000 | 1,420,000 | 1,878,000 | |
Balance at end of the period | 4,439,000 | 4,621,000 | 4,742,000 | 4,745,000 | 4,699,000 | 4,439,000 | 4,742,000 | 4,621,000 | 4,699,000 | 4,911,000 | |||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | 4,434,000 | 4,621,000 | 4,697,000 | 4,434,000 | 4,621,000 | 4,697,000 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 341,089,000 | 332,111,000 | 324,913,000 | 324,311,000 | 341,089,000 | 324,913,000 | 332,111,000 | 324,311,000 | |||||||
Individually evaluated for impairment | 6,571,000 | 6,176,000 | 9,283,000 | 9,353,000 | 6,571,000 | 9,283,000 | 6,176,000 | 9,353,000 | |||||||
Collectively evaluated for impairment | 334,518,000 | 325,935,000 | 315,630,000 | 314,958,000 | 334,518,000 | 315,630,000 | 325,935,000 | 314,958,000 | |||||||
Total loans considered impaired | 6,571,000 | 6,176,000 | 9,283,000 | 9,353,000 | 6,571,000 | 9,283,000 | 6,176,000 | 9,353,000 | 9,587,000 | ||||||
Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||
Outstanding loan balance | 57,000 | 148,000 | 57,000 | 148,000 | 378,000 | ||||||||||
Related allowance | 5,000 | 2,000 | 5,000 | 2,000 | 96,000 | ||||||||||
Loans considered impaired and previously written down to fair value | 6,514,000 | 6,176,000 | 9,205,000 | 6,514,000 | 6,176,000 | 9,205,000 | 9,209,000 | ||||||||
Average impaired loans | 7,847,000 | 12,446,000 | 7,719,000 | 10,316,000 | 6,704,000 | 9,926,000 | 10,576,000 | ||||||||
Loans outstanding to bank directors, executive officers and their related business interests | 11,300,000 | 11,300,000 | 10,900,000 | 11,300,000 | 11,300,000 | 9,700,000 | |||||||||
Loans to bank directors, executive officers and their related business interests repaid during the period | 2,100,000 | 208,000 | 855,000 | 577,000 | |||||||||||
Loans made to bank directors, executive officers and their related business interests during the period | 500,000 | 77,000 | 230,000 | 1,200,000 | |||||||||||
Commercial | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 409,000 | 307,000 | 331,000 | 681,000 | 338,000 | 331,000 | 331,000 | 681,000 | |||||||
Charge-offs | 62,000 | 7,000 | 62,000 | 258,000 | 265,000 | ||||||||||
Recoveries | 9,000 | 13,000 | 20,000 | 25,000 | 42,000 | 31,000 | |||||||||
Provisions | -154,000 | -9,000 | -87,000 | -45,000 | 223,000 | -116,000 | |||||||||
Balance at end of the period | 264,000 | 338,000 | 249,000 | 331,000 | 264,000 | 249,000 | 338,000 | 331,000 | |||||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | 264,000 | 338,000 | 249,000 | 330,000 | 264,000 | 249,000 | 338,000 | 330,000 | |||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 20,908,000 | 20,924,000 | 19,741,000 | 20,608,000 | 20,908,000 | 19,741,000 | 20,924,000 | 20,608,000 | |||||||
Individually evaluated for impairment | 84,000 | 37,000 | 24,000 | 45,000 | 84,000 | 24,000 | 37,000 | 45,000 | |||||||
Collectively evaluated for impairment | 20,824,000 | 20,887,000 | 19,717,000 | 20,563,000 | 20,824,000 | 19,717,000 | 20,887,000 | 20,563,000 | |||||||
Total loans considered impaired | 84,000 | 37,000 | 24,000 | 45,000 | 84,000 | 24,000 | 37,000 | 45,000 | |||||||
Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||
Outstanding loan balance | 33,000 | 33,000 | |||||||||||||
Related allowance | 1,000 | 1,000 | |||||||||||||
Loans considered impaired and previously written down to fair value | 84,000 | 37,000 | 24,000 | 12,000 | 84,000 | 24,000 | 37,000 | 12,000 | |||||||
Average impaired loans | 264,000 | 93,000 | 149,000 | 95,000 | 53,000 | 57,000 | |||||||||
Real estate: Construction | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 21,000 | 905,000 | 905,000 | ||||||||||||
Provisions | 4,000 | 25,000 | -905,000 | ||||||||||||
Balance at end of the period | 25,000 | 25,000 | |||||||||||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | 25,000 | 25,000 | |||||||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 15,232,000 | 13,052,000 | 12,302,000 | 11,767,000 | 15,232,000 | 12,302,000 | 13,052,000 | 11,767,000 | |||||||
Collectively evaluated for impairment | 15,232,000 | 13,052,000 | 12,302,000 | 11,767,000 | 15,232,000 | 12,302,000 | 13,052,000 | 11,767,000 | |||||||
Real estate: Mortgage-residential | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 199,000 | 500,000 | 514,000 | 465,000 | 235,000 | 514,000 | 514,000 | 465,000 | |||||||
Charge-offs | 32,000 | 17,000 | 36,000 | 30,000 | 112,000 | 186,000 | |||||||||
Recoveries | 1,000 | 2,000 | 62,000 | 9,000 | 86,000 | 5,000 | |||||||||
Provisions | 151,000 | 114,000 | 58,000 | 106,000 | -253,000 | 230,000 | |||||||||
Balance at end of the period | 319,000 | 235,000 | 599,000 | 514,000 | 319,000 | 599,000 | 235,000 | 514,000 | |||||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | 314,000 | 235,000 | 599,000 | 514,000 | 314,000 | 599,000 | 235,000 | 514,000 | |||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 38,363,000 | 38,892,000 | 38,779,000 | 38,337,000 | 38,363,000 | 38,779,000 | 38,892,000 | 38,337,000 | |||||||
Individually evaluated for impairment | 721,000 | 357,000 | 581,000 | 622,000 | 721,000 | 581,000 | 357,000 | 622,000 | |||||||
Collectively evaluated for impairment | 37,642,000 | 38,535,000 | 38,198,000 | 37,715,000 | 37,642,000 | 38,198,000 | 38,535,000 | 37,715,000 | |||||||
Total loans considered impaired | 721,000 | 357,000 | 581,000 | 622,000 | 721,000 | 581,000 | 357,000 | 622,000 | |||||||
Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||
Outstanding loan balance | 57,000 | 57,000 | |||||||||||||
Related allowance | 5,000 | 5,000 | |||||||||||||
Loans considered impaired and previously written down to fair value | 664,000 | 357,000 | 581,000 | 622,000 | 664,000 | 581,000 | 357,000 | 622,000 | |||||||
Average impaired loans | 802,000 | 637,000 | 805,000 | 645,000 | 442,000 | 656,000 | |||||||||
Real estate: Mortgage-commercial | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 1,075,000 | 1,430,000 | 1,475,000 | 1,404,000 | 1,322,000 | 1,475,000 | 1,475,000 | 1,404,000 | |||||||
Charge-offs | 162,000 | 397,000 | 178,000 | 293,000 | 861,000 | ||||||||||
Provisions | 169,000 | -117,000 | 157,000 | 16,000 | 140,000 | 932,000 | |||||||||
Balance at end of the period | 1,082,000 | 1,322,000 | 1,313,000 | 1,475,000 | 1,082,000 | 1,313,000 | 1,322,000 | 1,475,000 | |||||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | 1,082,000 | 1,322,000 | 1,313,000 | 1,474,000 | 1,082,000 | 1,313,000 | 1,322,000 | 1,474,000 | |||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 233,769,000 | 226,575,000 | 221,880,000 | 220,288,000 | 233,769,000 | 221,880,000 | 226,575,000 | 220,288,000 | |||||||
Individually evaluated for impairment | 5,759,000 | 5,772,000 | 8,650,000 | 8,667,000 | 5,759,000 | 8,650,000 | 5,772,000 | 8,667,000 | |||||||
Collectively evaluated for impairment | 228,010,000 | 220,803,000 | 213,230,000 | 211,621,000 | 228,010,000 | 213,230,000 | 220,803,000 | 211,621,000 | |||||||
Total loans considered impaired | 5,759,000 | 5,772,000 | 8,650,000 | 8,667,000 | 5,759,000 | 8,650,000 | 5,772,000 | 8,667,000 | |||||||
Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||
Outstanding loan balance | 115,000 | 115,000 | |||||||||||||
Related allowance | 1,000 | 1,000 | |||||||||||||
Loans considered impaired and previously written down to fair value | 5,759,000 | 5,772,000 | 8,650,000 | 8,552,000 | 5,759,000 | 8,650,000 | 5,772,000 | 8,552,000 | |||||||
Average impaired loans | 6,764,000 | 11,679,000 | 6,747,000 | 9,535,000 | 6,188,000 | 9,183,000 | |||||||||
Consumer: Home equity | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 236,000 | 566,000 | 521,000 | 325,000 | 400,000 | 521,000 | 521,000 | 325,000 | |||||||
Charge-offs | 2,000 | 44,000 | 285,000 | ||||||||||||
Recoveries | 1,000 | 1,000 | 2,000 | 3,000 | 5,000 | ||||||||||
Provisions | -9,000 | -121,000 | -131,000 | -78,000 | -124,000 | 476,000 | |||||||||
Balance at end of the period | 226,000 | 400,000 | 445,000 | 521,000 | 226,000 | 445,000 | 400,000 | 521,000 | |||||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | 226,000 | 400,000 | 445,000 | 521,000 | 226,000 | 445,000 | 400,000 | 521,000 | |||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 25,437,000 | 27,173,000 | 26,945,000 | 27,976,000 | 25,437,000 | 26,945,000 | 27,173,000 | 27,976,000 | |||||||
Collectively evaluated for impairment | 25,437,000 | 27,173,000 | 26,945,000 | 27,976,000 | 25,437,000 | 26,945,000 | 27,173,000 | 27,976,000 | |||||||
Consumer: Other | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 78,000 | 53,000 | 57,000 | 88,000 | 17,000 | 57,000 | 57,000 | 88,000 | |||||||
Charge-offs | 13,000 | 16,000 | 39,000 | 37,000 | 79,000 | 99,000 | |||||||||
Recoveries | 3,000 | 6,000 | 8,000 | 13,000 | 37,000 | 23,000 | |||||||||
Provisions | 28,000 | 2,000 | 110,000 | 12,000 | 2,000 | 45,000 | |||||||||
Balance at end of the period | 96,000 | 17,000 | 45,000 | 57,000 | 96,000 | 45,000 | 17,000 | 57,000 | |||||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | 96,000 | 17,000 | 45,000 | 57,000 | 96,000 | 45,000 | 17,000 | 57,000 | |||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 7,380,000 | 5,495,000 | 5,266,000 | 5,335,000 | 7,380,000 | 5,266,000 | 5,495,000 | 5,335,000 | |||||||
Individually evaluated for impairment | 7,000 | 10,000 | 28,000 | 19,000 | 7,000 | 28,000 | 10,000 | 19,000 | |||||||
Collectively evaluated for impairment | 7,373,000 | 5,485,000 | 5,238,000 | 5,316,000 | 7,373,000 | 5,238,000 | 5,485,000 | 5,316,000 | |||||||
Total loans considered impaired | 7,000 | 10,000 | 28,000 | 19,000 | 7,000 | 28,000 | 10,000 | 19,000 | |||||||
Loans considered impaired for which there is a related allowance for loan loss: | |||||||||||||||
Loans considered impaired and previously written down to fair value | 7,000 | 10,000 | 28,000 | 19,000 | 7,000 | 28,000 | 10,000 | 19,000 | |||||||
Average impaired loans | 17,000 | 37,000 | 18,000 | 41,000 | 21,000 | 30,000 | |||||||||
Unallocated | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 2,516,000 | 1,889,000 | 1,801,000 | 1,043,000 | 2,309,000 | 1,801,000 | 1,801,000 | 1,043,000 | |||||||
Provisions | -89,000 | 202,000 | 118,000 | 290,000 | 508,000 | 758,000 | |||||||||
Balance at end of the period | 2,427,000 | 2,309,000 | 2,091,000 | 1,801,000 | 2,427,000 | 2,091,000 | 2,309,000 | 1,801,000 | |||||||
Allowance for loan losses | |||||||||||||||
Collectively evaluated for impairment | $2,427,000 | $2,309,000 | $2,091,000 | $1,801,000 | $2,427,000 | $2,091,000 | $2,309,000 | $1,801,000 |
Recovered_Sheet20
Loans (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
With no allowance recorded: | |||||||
Recorded Investment | $6,514 | $6,514 | $6,176 | $9,205 | $9,209 | ||
With an allowance recorded: | |||||||
Recorded Investment | 57 | 57 | 148 | 378 | |||
Related allowance | 5 | 5 | 2 | 96 | |||
Total: | |||||||
Recorded Investment | 6,571 | 9,283 | 6,571 | 9,283 | 6,176 | 9,353 | 9,587 |
Unpaid Principal Balance | 7,256 | 9,750 | 7,256 | 9,750 | 6,603 | 9,811 | |
Related allowance | 5 | 5 | 2 | 96 | |||
Average Recorded Investment | 7,847 | 12,446 | 7,719 | 10,316 | 6,704 | 9,926 | 10,576 |
Interest Income Recognized | 30 | 70 | 127 | 144 | 179 | 397 | 323 |
Commercial | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 84 | 24 | 84 | 24 | 37 | 12 | |
Unpaid Principal Balance | 84 | 54 | 84 | 54 | 50 | 19 | |
Average Recorded Investment | 264 | 93 | 149 | 95 | 53 | 21 | |
Interest Income Recognized | 1 | 8 | 1 | ||||
With an allowance recorded: | |||||||
Recorded Investment | 33 | ||||||
Unpaid Principal Balance | 33 | ||||||
Related allowance | 1 | ||||||
Average Recorded Investment | 36 | ||||||
Interest Income Recognized | 2 | ||||||
Total: | |||||||
Recorded Investment | 84 | 24 | 84 | 24 | 37 | 45 | |
Unpaid Principal Balance | 84 | 54 | 84 | 54 | 50 | 52 | |
Related allowance | 1 | ||||||
Average Recorded Investment | 264 | 93 | 149 | 95 | 53 | 57 | |
Interest Income Recognized | 1 | 8 | 1 | 2 | |||
Real estate: Mortgage-residential | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 664 | 581 | 664 | 581 | 357 | 622 | |
Unpaid Principal Balance | 679 | 609 | 679 | 609 | 381 | 650 | |
Average Recorded Investment | 744 | 637 | 749 | 645 | 442 | 656 | |
Interest Income Recognized | 12 | 1 | 15 | 1 | 1 | 4 | |
With an allowance recorded: | |||||||
Recorded Investment | 57 | 57 | |||||
Unpaid Principal Balance | 57 | 57 | |||||
Related allowance | 5 | 5 | |||||
Average Recorded Investment | 58 | 56 | |||||
Interest Income Recognized | 2 | 7 | |||||
Total: | |||||||
Recorded Investment | 721 | 581 | 721 | 581 | 357 | 622 | |
Unpaid Principal Balance | 736 | 609 | 736 | 609 | 381 | 650 | |
Related allowance | 5 | 5 | |||||
Average Recorded Investment | 802 | 637 | 805 | 645 | 442 | 656 | |
Interest Income Recognized | 14 | 1 | 22 | 1 | 1 | 4 | |
Real estate: Mortgage-commercial | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 5,759 | 8,650 | 5,759 | 8,650 | 5,772 | 8,552 | |
Unpaid Principal Balance | 6,429 | 9,059 | 6,429 | 9,059 | 6,162 | 8,975 | |
Average Recorded Investment | 6,764 | 11,679 | 6,747 | 9,535 | 6,188 | 9,066 | |
Interest Income Recognized | 16 | 68 | 97 | 142 | 178 | 382 | |
With an allowance recorded: | |||||||
Recorded Investment | 115 | ||||||
Unpaid Principal Balance | 115 | ||||||
Related allowance | 1 | ||||||
Average Recorded Investment | 117 | ||||||
Interest Income Recognized | 8 | ||||||
Total: | |||||||
Recorded Investment | 5,759 | 8,650 | 5,759 | 8,650 | 5,772 | 8,667 | |
Unpaid Principal Balance | 6,429 | 9,059 | 6,429 | 9,059 | 6,162 | 9,090 | |
Related allowance | 1 | ||||||
Average Recorded Investment | 6,764 | 11,679 | 6,747 | 9,535 | 6,188 | 9,183 | |
Interest Income Recognized | 16 | 68 | 97 | 142 | 178 | 390 | |
Consumer: Other | |||||||
With no allowance recorded: | |||||||
Recorded Investment | 7 | 28 | 7 | 28 | 10 | 19 | |
Unpaid Principal Balance | 7 | 28 | 7 | 28 | 10 | 19 | |
Average Recorded Investment | 17 | 37 | 18 | 41 | 21 | 30 | |
Interest Income Recognized | 1 | ||||||
Total: | |||||||
Recorded Investment | 7 | 28 | 7 | 28 | 10 | 19 | |
Unpaid Principal Balance | 7 | 28 | 7 | 28 | 10 | 19 | |
Average Recorded Investment | 17 | 37 | 18 | 41 | 21 | 30 | |
Interest Income Recognized | $1 |
Recovered_Sheet21
Loans (Details 4) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Loans | ||||
Loans | $341,089 | $332,111 | $324,913 | $324,311 |
Non-accrual loans | 5,978 | 4,715 | 5,403 | |
Loans greater than ninety days delinquent and still accruing interest | 55 | 25 | ||
Accrual | ||||
Loans | ||||
Troubled debt restructurings | 593 | 1,500 | 3,900 | |
Nonaccrual | ||||
Loans | ||||
Non-accrual loans | 6,000 | 4,700 | 5,400 | |
Troubled debt restructurings | 2,200 | 1,800 | ||
Pass | ||||
Loans | ||||
Loans | 318,963 | 306,818 | 297,641 | |
Special Mention | ||||
Loans | ||||
Loans | 8,512 | 7,681 | 8,856 | |
Substandard | ||||
Loans | ||||
Loans | 13,614 | 17,612 | 17,814 | |
Doubtful | ||||
Loans | ||||
Number of loans classified as doubtful | 0 | 0 | ||
Commercial, financial and agricultural | ||||
Loans | ||||
Loans | 20,908 | 20,924 | 20,608 | |
Commercial, financial and agricultural | Pass | ||||
Loans | ||||
Loans | 20,741 | 20,826 | 19,827 | |
Commercial, financial and agricultural | Special Mention | ||||
Loans | ||||
Loans | 52 | 27 | 499 | |
Commercial, financial and agricultural | Substandard | ||||
Loans | ||||
Loans | 115 | 71 | 282 | |
Real estate: Construction | ||||
Loans | ||||
Loans | 15,232 | 13,052 | 12,302 | 11,767 |
Real estate: Construction | Pass | ||||
Loans | ||||
Loans | 12,182 | 8,595 | 6,764 | |
Real estate: Construction | Special Mention | ||||
Loans | ||||
Loans | 1,222 | 2,047 | ||
Real estate: Construction | Substandard | ||||
Loans | ||||
Loans | 1,828 | 2,410 | 5,003 | |
Real estate: Mortgage-residential | ||||
Loans | ||||
Loans | 38,363 | 38,892 | 38,779 | 38,337 |
Non-accrual loans | 663 | 357 | 623 | |
Real estate: Mortgage-residential | Pass | ||||
Loans | ||||
Loans | 35,900 | 36,493 | 37,063 | |
Real estate: Mortgage-residential | Special Mention | ||||
Loans | ||||
Loans | 1,186 | 1,677 | 305 | |
Real estate: Mortgage-residential | Substandard | ||||
Loans | ||||
Loans | 1,277 | 722 | 969 | |
Real estate: Mortgage-commercial | ||||
Loans | ||||
Loans | 233,769 | 226,575 | 221,880 | 220,288 |
Non-accrual loans | 5,224 | 4,263 | 4,749 | |
Loans greater than ninety days delinquent and still accruing interest | 55 | 25 | ||
Real estate: Mortgage-commercial | Pass | ||||
Loans | ||||
Loans | 217,627 | 208,825 | 200,984 | |
Real estate: Mortgage-commercial | Special Mention | ||||
Loans | ||||
Loans | 5,899 | 3,803 | 8,009 | |
Real estate: Mortgage-commercial | Substandard | ||||
Loans | ||||
Loans | 10,243 | 13,947 | 11,295 | |
Consumer: Home equity | ||||
Loans | ||||
Loans | 25,437 | 27,173 | 26,945 | 27,976 |
Consumer: Home equity | Pass | ||||
Loans | ||||
Loans | 25,156 | 26,604 | 27,692 | |
Consumer: Home equity | Special Mention | ||||
Loans | ||||
Loans | 139 | 124 | 38 | |
Consumer: Home equity | Substandard | ||||
Loans | ||||
Loans | 142 | 445 | 246 | |
Consumer: Other | ||||
Loans | ||||
Loans | 7,380 | 5,495 | 5,266 | 5,335 |
Non-accrual loans | 7 | 10 | 19 | |
Consumer: Other | Pass | ||||
Loans | ||||
Loans | 7,357 | 5,475 | 5,311 | |
Consumer: Other | Special Mention | ||||
Loans | ||||
Loans | 14 | 3 | 5 | |
Consumer: Other | Substandard | ||||
Loans | ||||
Loans | $9 | $17 | $19 |
Recovered_Sheet22
Loans (Details 5) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Loans | ||||
30-59 Days Past Due | $2,201 | $1,198 | $2,007 | |
60-89 Days Past Due | 558 | 1,390 | 1,202 | |
Greater than 90 Days and Accruing | 55 | 25 | ||
Nonaccrual | 5,978 | 4,715 | 5,403 | |
Total Past Due | 8,737 | 7,358 | 8,637 | |
Current | 332,352 | 324,753 | 315,674 | |
Total Loans | 341,089 | 332,111 | 324,913 | 324,311 |
Commercial | ||||
Loans | ||||
30-59 Days Past Due | 16 | 17 | 147 | |
60-89 Days Past Due | 107 | 123 | ||
Nonaccrual | 84 | 85 | 12 | |
Total Past Due | 100 | 209 | 282 | |
Current | 20,808 | 20,715 | 20,326 | |
Total Loans | 20,908 | 20,924 | 19,741 | 20,608 |
Real estate: Construction | ||||
Loans | ||||
Current | 15,232 | 13,052 | 11,767 | |
Total Loans | 15,232 | 13,052 | 12,302 | 11,767 |
Real estate: Mortgage-residential | ||||
Loans | ||||
30-59 Days Past Due | 514 | 311 | 391 | |
60-89 Days Past Due | 70 | 378 | 95 | |
Nonaccrual | 663 | 357 | 623 | |
Total Past Due | 1,247 | 1,046 | 1,109 | |
Current | 37,116 | 37,846 | 37,228 | |
Total Loans | 38,363 | 38,892 | 38,779 | 38,337 |
Real estate: Mortgage-commercial | ||||
Loans | ||||
30-59 Days Past Due | 1,448 | 627 | 1,382 | |
60-89 Days Past Due | 464 | 898 | 966 | |
Greater than 90 Days and Accruing | 55 | 25 | ||
Nonaccrual | 5,224 | 4,263 | 4,749 | |
Total Past Due | 7,136 | 5,843 | 7,122 | |
Current | 226,633 | 220,732 | 213,166 | |
Total Loans | 233,769 | 226,575 | 221,880 | 220,288 |
Consumer: Home equity | ||||
Loans | ||||
30-59 Days Past Due | 170 | 211 | 45 | |
60-89 Days Past Due | 21 | |||
Total Past Due | 191 | 211 | 45 | |
Current | 25,246 | 26,962 | 27,931 | |
Total Loans | 25,437 | 27,173 | 26,945 | 27,976 |
Consumer: Other | ||||
Loans | ||||
30-59 Days Past Due | 53 | 32 | 42 | |
60-89 Days Past Due | 3 | 7 | 18 | |
Nonaccrual | 7 | 10 | 19 | |
Total Past Due | 63 | 49 | 79 | |
Current | 7,317 | 5,446 | 5,256 | |
Total Loans | $7,380 | $5,495 | $5,266 | $5,335 |
Recovered_Sheet23
Loans (Details 6) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
item | item | item | item | item | item | |
Troubled Debt Restructurings | ||||||
Number of loans determined to be TDRs | 1 | 1 | ||||
Number of loans determined to be TDRs that were restructured | 3 | 3 | 3 | 3 | ||
Number of loans for which payment and interest rate were lowered | 2 | 2 | 2 | 6 | ||
Number of loans for which payment have been modified to interest only | 1 | 1 | ||||
Number of Contracts | 3 | 1 | 3 | 3 | 8 | |
Pre-Modification Outstanding Recorded Investment | $649 | $257 | $649 | $636 | $3,922 | |
Post-Modification Outstanding Recorded Investment | 636 | 257 | 636 | 636 | 3,922 | |
Troubled Debt Restructurings that subsequently defaulted | ||||||
Number of Contracts | 1 | 1 | 5 | |||
Recorded Investment | 638 | 638 | 715 | |||
Number of loans determined to be TDRs subsequently defaulted | 0 | 0 | ||||
Accrual | ||||||
Troubled Debt Restructurings | ||||||
Number of Contracts | 2 | 1 | ||||
Pre-Modification Outstanding Recorded Investment | 596 | 3,138 | ||||
Post-Modification Outstanding Recorded Investment | 596 | 3,138 | ||||
Mortgage-commercial | ||||||
Troubled Debt Restructurings that subsequently defaulted | ||||||
Number of Contracts | 1 | 1 | 4 | |||
Recorded Investment | 638 | 638 | 704 | |||
Mortgage-commercial | Accrual | ||||||
Troubled Debt Restructurings | ||||||
Number of Contracts | 2 | 2 | 2 | 1 | ||
Pre-Modification Outstanding Recorded Investment | 596 | 596 | 596 | 3,138 | ||
Post-Modification Outstanding Recorded Investment | $596 | $596 | $596 | $3,138 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial Assets: | |||
Available-for-sale securities | $223,646,000 | $203,445,000 | $201,032,000 |
Other investments, at cost | 2,269,000 | 2,527,000 | 5,637,000 |
Interest rate swap | -338,000 | -602,000 | |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | 83,572,000 |
NOW and money market accounts | 186,778,000 | 150,874,000 | 136,483,000 |
Savings | 47,238,000 | 41,100,000 | 34,048,000 |
Time deposits | 185,477,000 | ||
Fair value | |||
Financial Assets: | |||
Cash and short term investments | 24,287,000 | 18,296,000 | 16,492,000 |
Available-for-sale securities | 223,646,000 | 203,445,000 | 201,032,000 |
Loans held for sale | 5,789,000 | 9,658,000 | 3,725,000 |
Net loans receivable | 340,151,000 | 328,893,000 | 319,505,000 |
Accrued interest | 2,177,000 | 2,098,000 | 1,914,000 |
Interest rate swap | -172,000 | -338,000 | -602,000 |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | 83,572,000 |
NOW and money market accounts | 186,778,000 | 150,874,000 | 136,483,000 |
Savings | 47,238,000 | 41,100,000 | 34,048,000 |
Time deposits | 171,732,000 | 187,313,000 | 214,437,000 |
Total deposits | 511,226,000 | 476,813,000 | 468,540,000 |
Federal Home Loan Bank Advances | 38,458,000 | 41,977,000 | 50,238,000 |
Short term borrowings | 15,650,000 | 15,900,000 | 13,616,000 |
Junior subordinated debentures | 15,464,000 | 15,464,000 | 17,913,000 |
Accrued interest payable | 666,000 | 1,029,000 | 1,624,000 |
Level 1 | |||
Financial Assets: | |||
Cash and short term investments | 24,287,000 | 18,296,000 | |
Available-for-sale securities | 830,000 | 914,000 | |
Accrued interest | 2,177,000 | 2,098,000 | |
Financial liabilities: | |||
Accrued interest payable | 666,000 | 1,029,000 | |
Level 2 | |||
Financial Assets: | |||
Available-for-sale securities | 222,399,000 | 202,114,000 | |
Loans held for sale | 5,789,000 | 9,658,000 | |
Net loans receivable | 333,580,000 | 322,717,000 | |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | |
NOW and money market accounts | 186,778,000 | 150,874,000 | |
Savings | 47,238,000 | 41,100,000 | |
Time deposits | 171,732,000 | 187,313,000 | |
Total deposits | 511,226,000 | 476,813,000 | |
Federal Home Loan Bank Advances | 38,458,000 | 41,977,000 | |
Short term borrowings | 15,650,000 | 15,900,000 | |
Junior subordinated debentures | 15,464,000 | 15,464,000 | |
Level 3 | |||
Financial Assets: | |||
Available-for-sale securities | 417,000 | 417,000 | |
Other investments, at cost | 2,269,000 | 2,527,000 | |
Net loans receivable | 6,571,000 | 6,176,000 | |
Interest rate swap | -172,000 | -338,000 | |
Carrying Amount | |||
Financial Assets: | |||
Cash and short term investments | 24,287,000 | 18,296,000 | 16,492,000 |
Available-for-sale securities | 223,646,000 | 203,445,000 | 201,032,000 |
Other investments, at cost | 2,269,000 | 2,527,000 | 5,637,000 |
Loans held for sale | 5,789,000 | 9,658,000 | 3,725,000 |
Net loans receivable | 336,650,000 | 327,490,000 | 319,612,000 |
Accrued interest | 2,177,000 | 2,098,000 | 1,914,000 |
Interest rate swap | -172,000 | -338,000 | -602,000 |
Financial liabilities: | |||
Non-interest bearing demand | 105,478,000 | 97,526,000 | 83,572,000 |
NOW and money market accounts | 186,778,000 | 150,874,000 | 136,483,000 |
Savings | 47,238,000 | 41,100,000 | 34,048,000 |
Time deposits | 170,125,000 | 185,477,000 | 210,482,000 |
Total deposits | 509,619,000 | 474,977,000 | 464,585,000 |
Federal Home Loan Bank Advances | 34,335,000 | 36,344,000 | 43,862,000 |
Short term borrowings | 15,650,000 | 15,900,000 | 13,616,000 |
Junior subordinated debentures | 15,464,000 | 15,464,000 | 17,913,000 |
Accrued interest payable | $666,000 | $1,029,000 | $1,624,000 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Assets and liabilities measured at fair value | |||||||
Non-interest income: Fair value adjustment loss | ($2) | ($4) | ($2) | ($37) | ($58) | ($166) | ($581) |
Interest rate swap | |||||||
Assets and liabilities measured at fair value | |||||||
Non-interest income: Fair value adjustment loss | ($2) | ($4) | ($2) | ($37) | ($58) | ($166) | ($581) |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets and liabilities measured at fair value | |||
Available for sale securities | $223,646,000 | $203,445,000 | $201,032,000 |
Interest rate swap | -338,000 | -602,000 | |
Government sponsored enterprises | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,462,000 | 1,534,000 | 34,000 |
Mortgage-backed securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 122,649,000 | 112,144,000 | 141,631,000 |
Small Business Administration securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 57,304,000 | 54,993,000 | 36,479,000 |
State and local government | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 39,922,000 | 32,373,000 | 20,488,000 |
Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 2,309,000 | 2,401,000 | 2,400,000 |
Fair value | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 223,646,000 | 203,445,000 | 201,032,000 |
Interest rate swap | -172,000 | -338,000 | -602,000 |
Total | 223,474,000 | 203,107,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 830,000 | 914,000 | |
Total | 830,000 | 914,000 | |
Significant Other Observable Inputs (Level 2) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 222,399,000 | 202,114,000 | |
Total | 222,399,000 | 202,114,000 | |
Significant Unobservable Inputs (Level 3) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 417,000 | 417,000 | |
Interest rate swap | -172,000 | -338,000 | |
Total | -245,000 | 79,000 | |
Recurring basis | |||
Assets and liabilities measured at fair value | |||
Fair value of liabilities | 0 | 0 | |
Recurring basis | Fair value | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 203,445,000 | 201,032,000 | |
Interest rate swap | -338,000 | -602,000 | |
Total | 203,107,000 | 200,430,000 | |
Recurring basis | Fair value | Government sponsored enterprises | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,462,000 | 1,534,000 | 34,000 |
Recurring basis | Fair value | Mortgage-backed securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 122,649,000 | 112,144,000 | 141,631,000 |
Recurring basis | Fair value | Small Business Administration securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 57,304,000 | 54,993,000 | 36,479,000 |
Recurring basis | Fair value | State and local government | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 39,922,000 | 32,373,000 | 20,488,000 |
Recurring basis | Fair value | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 2,309,000 | 2,401,000 | 2,400,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 914,000 | 926,000 | |
Total | 914,000 | 926,000 | |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 830,000 | 914,000 | 926,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 202,114,000 | 200,106,000 | |
Total | 202,114,000 | 200,106,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government sponsored enterprises | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,462,000 | 1,534,000 | 34,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 122,649,000 | 112,144,000 | 141,631,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Small Business Administration securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 57,304,000 | 54,993,000 | 36,479,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and local government | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 39,922,000 | 32,373,000 | 20,488,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 1,062,000 | 1,070,000 | 1,474,000 |
Recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | 417,000 | ||
Interest rate swap | -338,000 | -602,000 | |
Total | 79,000 | -602,000 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate and other securities | |||
Assets and liabilities measured at fair value | |||
Available for sale securities | $417,000 | $417,000 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest rate swap | Interest rate swap | Corporate Preferred Stock | Corporate Preferred Stock | Corporate Preferred Stock | Interest rate Cap/Floor/Swap | Interest rate Cap/Floor/Swap | Interest rate Cap/Floor/Swap | Interest rate Cap/Floor/Swap | |
Reconciliation of changes in level 3 financial instruments | |||||||||
Balance at the beginning of the period | ($254) | ($338) | $417 | $417 | ($553) | ($602) | ($602) | ($778) | |
Total gains or losses (realized/unrealized) | |||||||||
Included in earnings | -2 | -2 | -4 | -37 | -58 | -166 | |||
Purchases, issuances, and settlements | 84 | 168 | 417 | 78 | 160 | 322 | 342 | ||
Balance at the end of the period | ($172) | ($172) | $417 | $417 | $417 | ($479) | ($479) | ($338) | ($602) |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments (Details 5) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | $6,571 | $6,176 | $9,283 | $9,353 | $9,587 |
Total other real estate owned | 2,824 | 3,987 | 7,351 | 6,904 | |
Fair value | |||||
Assets and liabilities measured at fair value | |||||
Total | 223,474 | 203,107 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Assets and liabilities measured at fair value | |||||
Total | 830 | 914 | |||
Significant Other Observable Inputs (Level 2) | |||||
Assets and liabilities measured at fair value | |||||
Total | 222,399 | 202,114 | |||
Significant Unobservable Inputs (Level 3) | |||||
Assets and liabilities measured at fair value | |||||
Total | -245 | 79 | |||
Non-recurring basis | Fair value | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 6,566 | 6,176 | 9,351 | ||
Total other real estate owned | 2,824 | 3,987 | 7,351 | ||
Total | 9,390 | 10,163 | 16,702 | ||
Non-recurring basis | Fair value | Commercial & Industrial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 84 | 37 | 44 | ||
Non-recurring basis | Fair value | Mortgage-residential | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 716 | 357 | 622 | ||
Total other real estate owned | 302 | 488 | 4,278 | ||
Non-recurring basis | Fair value | Mortgage-commercial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 5,759 | 5,772 | 8,666 | ||
Total other real estate owned | 2,221 | 3,198 | 917 | ||
Non-recurring basis | Fair value | Consumer, Other | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 7 | 10 | 19 | ||
Non-recurring basis | Fair value | Construction | |||||
Assets and liabilities measured at fair value | |||||
Total other real estate owned | 301 | 301 | 2,156 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 6,566 | 6,176 | 9,351 | ||
Total other real estate owned | 2,824 | 3,987 | 7,351 | ||
Total | 9,390 | 10,163 | 16,702 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Commercial & Industrial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 84 | 37 | 44 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-residential | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 716 | 357 | 622 | ||
Total other real estate owned | 302 | 488 | 4,278 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-commercial | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 5,759 | 5,772 | 8,666 | ||
Total other real estate owned | 2,221 | 3,198 | 917 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Consumer, Other | |||||
Assets and liabilities measured at fair value | |||||
Total impaired loans | 7 | 10 | 19 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Construction | |||||
Assets and liabilities measured at fair value | |||||
Total other real estate owned | $301 | $301 | $2,156 |
Fair_Value_of_Financial_Instru7
Fair Value of Financial Instruments (Details 6) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||
Interest Rate Swap | Interest Rate Swap | Preferred Stock | Preferred Stock | OREO | OREO | OREO | OREO | OREO | OREO | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | Impaired loans | ||||||||
Discounted cash flows | Discounted cash flows | Estimation based on comparable non-listed securities | Estimation based on comparable non-listed securities | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Comparison Sales/Other estimates | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | Appraisal Value/Discounted Cash Flows | ||||||||
Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | ||||||||||||||||
Significant unobservable inputs used in the fair value measurements | |||||||||||||||||||||||
Interest rate swap | ($338) | ($602) | ($172) | ($338) | ($172) | ($388) | |||||||||||||||||
Preferred stock | 417 | 417 | |||||||||||||||||||||
OREO | 2,824 | 3,987 | 7,351 | 6,904 | 2,824 | 3,987 | |||||||||||||||||
Aggregate amount of impaired loans | $6,571 | $6,176 | $9,283 | $9,353 | $9,587 | $6,566 | $6,176 | ||||||||||||||||
Rate (as a percent) | 3.20% | 3.20% | 6.00% | 6.00% | 16.00% | 16.00% | 6.00% | 6.00% | 16.00% | 16.00% |