Virginia | 20-1417448 | ||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
PAGE
|
||||
PART 1 - FINANCIAL INFORMATION
|
||||
Item 1 -
|
Financial Statements
|
|||
Consolidated Balance Sheets as of September 30, 2012 and December 31, 2011
|
2
|
|||
Consolidated Statements of Comprehensive Income
for the three and nine months ended September 30, 2012 and 2011 |
3
|
|||
Consolidated Statements of Changes in Stockholders’ Equity
for the nine months ended September 30, 2012 |
4
|
|||
Consolidated Statements of Cash Flows for the nine months ended
September 30, 2012 and 2011 |
5
|
|||
Notes to Consolidated Financial Statements
|
6- 29
|
|||
Item 2 - Management’s Discussion and Analysis of
|
||||
Financial Condition and Results of Operations
|
30- 42
|
|||
Item 3 – Quantitative and Qualitative Disclosures about Market Risk
|
43-45
|
|||
Item 4 – Controls and Procedures
|
46
|
|||
PART II - OTHER INFORMATION
|
||||
Item 1 – Legal Proceedings
|
48
|
|||
Item 1A – Risk Factors
|
48
|
|||
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds
|
48
|
|||
Item 3 – Defaults Upon Senior Securities
|
48
|
|||
Item 4 – Mine Safety Disclosures
|
48
|
|||
Item 5 – Other Information
|
48
|
|||
Item 6 - Exhibits
|
48
|
|||
Signatures
|
49
|
|||
Certifications
|
50-52
|
ITEM I - FINANCIAL INFORMATION
|
PART I - FINANCIAL STATEMENTS
|
SOUTHERN NATIONAL BANCORP OF VIRGINIA, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(dollars in thousands, except per share amounts) (Unaudited)
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash and due from financial institutions
|
$ | 4,229 | $ | 2,432 | ||||
Interest-bearing deposits in other financial institutions
|
18,059 | 2,603 | ||||||
Total cash and cash equivalents
|
22,288 | 5,035 | ||||||
Securities available for sale, at fair value
|
49 | 9,905 | ||||||
Securities held to maturity, at amortized cost (fair value of $81,609 and $34,464, respectively)
|
80,496 | 35,075 | ||||||
Covered loans
|
76,600 | 82,588 | ||||||
Non-covered loans
|
461,169 | 409,180 | ||||||
Total loans
|
537,769 | 491,768 | ||||||
Less allowance for loan losses
|
(6,911 | ) | (6,295 | ) | ||||
Net loans
|
530,858 | 485,473 | ||||||
Stock in Federal Reserve Bank and Federal Home Loan Bank
|
6,190 | 6,653 | ||||||
Bank premises and equipment, net
|
6,476 | 6,350 | ||||||
Goodwill
|
9,160 | 9,160 | ||||||
Core deposit intangibles, net
|
1,480 | 1,995 | ||||||
FDIC indemnification asset
|
7,006 | 7,537 | ||||||
Bank-owned life insurance
|
17,633 | 17,575 | ||||||
Other real estate owned
|
13,452 | 14,256 | ||||||
Deferred tax assets, net
|
6,153 | 6,255 | ||||||
Other assets
|
7,021 | 6,104 | ||||||
Total assets
|
$ | 708,262 | $ | 611,373 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Noninterest-bearing demand deposits
|
$ | 43,096 | $ | 32,582 | ||||
Interest-bearing deposits:
|
||||||||
NOW accounts
|
20,520 | 17,497 | ||||||
Money market accounts
|
167,370 | 148,959 | ||||||
Savings accounts
|
8,997 | 6,273 | ||||||
Time deposits
|
297,268 | 255,784 | ||||||
Total interest-bearing deposits
|
494,155 | 428,513 | ||||||
Total deposits
|
537,251 | 461,095 | ||||||
Securities sold under agreements to repurchase and other short-term borrowings
|
32,713 | 17,736 | ||||||
Federal Home Loan Bank (FHLB) advances
|
30,250 | 30,000 | ||||||
Other liabilities
|
4,025 | 3,491 | ||||||
Total liabilities
|
604,239 | 512,322 | ||||||
Commitments and contingencies (See Note 5)
|
- | - | ||||||
Stockholders’ equity:
|
||||||||
Preferred stock, $.01 par value. Authorized 5,000,000 shares; no shares issued and outstanding
|
- | - | ||||||
Common stock, $.01 par value. Authorized 45,000,000 shares; issued and outstanding, 11,590,212 shares at September 30, 2012 and December 31, 2011
|
116 | 116 | ||||||
Additional paid in capital
|
96,791 | 96,645 | ||||||
Retained earnings
|
10,100 | 5,472 | ||||||
Accumulated other comprehensive loss
|
(2,984 | ) | (3,182 | ) | ||||
Total stockholders’ equity
|
104,023 | 99,051 | ||||||
Total liabilities and stockholders’ equity
|
$ | 708,262 | $ | 611,373 |
SOUTHERN NATIONAL BANCORP OF VIRGINIA, INC.
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(dollars in thousands, except per share amounts) (Unaudited)
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(As Restated)
|
(As Restated)
|
|||||||||||||||
Interest and dividend income :
|
||||||||||||||||
Interest and fees on loans
|
$ | 9,008 | $ | 8,165 | $ | 26,387 | $ | 23,255 | ||||||||
Interest and dividends on taxable securities
|
490 | 457 | 1,401 | 1,495 | ||||||||||||
Interest and dividends on other earning assets
|
102 | 66 | 247 | 169 | ||||||||||||
Total interest and dividend income
|
9,600 | 8,688 | 28,035 | 24,919 | ||||||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits
|
1,304 | 1,217 | 3,803 | 3,744 | ||||||||||||
Interest on borrowings
|
165 | 272 | 628 | 857 | ||||||||||||
Total interest expense
|
1,469 | 1,489 | 4,431 | 4,601 | ||||||||||||
Net interest income
|
8,131 | 7,199 | 23,604 | 20,318 | ||||||||||||
Provision for loan losses
|
1,830 | 1,550 | 4,605 | 5,140 | ||||||||||||
Net interest income after provision for loan losses
|
6,301 | 5,649 | 18,999 | 15,178 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Account maintenance and deposit service fees
|
222 | 218 | 624 | 636 | ||||||||||||
Income from bank-owned life insurance
|
148 | 129 | 649 | 1,196 | ||||||||||||
Bargain purchase gain on acquisition
|
- | - | 3,484 | - | ||||||||||||
Gain on sale of loans
|
- | - | 657 | - | ||||||||||||
Net gain (loss) on other real estate owned
|
24 | - | (2,376 | ) | (147 | ) | ||||||||||
Gain on other assets
|
- | - | 14 | - | ||||||||||||
Net gain on sale of available for sale securities
|
287 | - | 274 | - | ||||||||||||
Total other-than-temporary impairment losses (OTTI)
|
(480 | ) | (43 | ) | (721 | ) | (113 | ) | ||||||||
Portion of OTTI recognized in other comprehensive income (before taxes)
|
- | - | 4 | - | ||||||||||||
Net credit related OTTI recognized in earnings
|
(480 | ) | (43 | ) | (717 | ) | (113 | ) | ||||||||
Other
|
63 | 62 | 198 | 151 | ||||||||||||
Total noninterest income
|
264 | 366 | 2,807 | 1,723 | ||||||||||||
Noninterest expenses:
|
||||||||||||||||
Salaries and benefits
|
2,073 | 1,759 | 5,868 | 5,066 | ||||||||||||
Occupancy expenses
|
753 | 573 | 2,040 | 1,667 | ||||||||||||
Furniture and equipment expenses
|
149 | 140 | 448 | 406 | ||||||||||||
Amortization of core deposit intangible
|
236 | 230 | 694 | 690 | ||||||||||||
Virginia franchise tax expense
|
145 | 171 | 436 | 514 | ||||||||||||
Merger expenses
|
11 | - | 360 | - | ||||||||||||
FDIC assessment
|
146 | 125 | 417 | 397 | ||||||||||||
Data processing expense
|
175 | 126 | 474 | 400 | ||||||||||||
Telephone and communication expense
|
183 | 101 | 418 | 289 | ||||||||||||
Change in FDIC indemnification asset
|
242 | (13 | ) | 481 | (85 | ) | ||||||||||
Other operating expenses
|
665 | 702 | 2,417 | 1,809 | ||||||||||||
Total noninterest expenses
|
4,778 | 3,914 | 14,053 | 11,153 | ||||||||||||
Income before income taxes
|
1,787 | 2,101 | 7,753 | 5,748 | ||||||||||||
Income tax expense
|
579 | 692 | 2,487 | 1,602 | ||||||||||||
Net income
|
$ | 1,208 | $ | 1,409 | $ | 5,266 | $ | 4,146 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Unrealized gain (loss) on available for sale securities
|
$ | (107 | ) | $ | (30 | ) | $ | (26 | ) | $ | 167 | |||||
Realized amount on securities sold, net
|
(287 | ) | - | (274 | ) | - | ||||||||||
Non-credit component of other-than-temporary impairment on held-to-maturity securities
|
475 | (70 | ) | 676 | 26 | |||||||||||
|
||||||||||||||||
Accretion of amounts previously recorded upon transfer to held-to-maturity from available-for-sale
|
(17 | ) | (27 | ) | (77 | ) | (44 | ) | ||||||||
Net unrealized gain
|
64 | (127 | ) | 299 | 149 | |||||||||||
Tax effect
|
21 | (44 | ) | 101 | 50 | |||||||||||
Other comprehensive income
|
43 | (83 | ) | 198 | 99 | |||||||||||
Comprehensive income
|
$ | 1,251 | $ | 1,326 | $ | 5,464 | $ | 4,245 | ||||||||
Earnings per share, basic and diluted
|
$ | 0.10 | $ | 0.12 | $ | 0.45 | $ | 0.36 | ||||||||
See accompanying notes to consolidated financial statements.
|
SOUTHERN NATIONAL BANCORP OF VIRGINIA, INC.
|
||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
|
||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
|
||
(dollars in thousands, except per share amounts) (Unaudited)
|
Accumulated
|
||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||
Common
|
Paid in
|
Retained
|
Comprehensive
|
|||||||||||||||||
Stock
|
Capital
|
Earnings
|
Loss
|
Total
|
||||||||||||||||
Balance - January 1, 2012
|
$ | 116 | $ | 96,645 | $ | 5,472 | $ | (3,182 | ) | $ | 99,051 | |||||||||
Comprehensive income:
|
||||||||||||||||||||
Net income
|
5,266 | 5,266 | ||||||||||||||||||
Change in unrealized gain on available for sale securities (net of tax benefit, $102)
|
|
(198 | ) | (198 | ) | |||||||||||||||
Change in unrecognized loss on securities held to maturity for which a portion of OTTI has been recognized (net of tax expense, $203 and accretion, $77 and amounts recorded into other comprehensive income at transfer)
|
396 | 396 | ||||||||||||||||||
Dividends on common stock ($.015 per share)
|
(638 | ) | (638 | ) | ||||||||||||||||
Stock-based compensation expense
|
146 | 146 | ||||||||||||||||||
Balance - September 30, 2012
|
$ | 116 | $ | 96,791 | $ | 10,100 | $ | (2,984 | ) | $ | 104,023 | |||||||||
See accompanying notes to consolidated financial statements.
|
SOUTHERN NATIONAL BANCORP OF VIRGINIA, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
|
2012
|
2011
|
|||||||
(As Restated)
|
||||||||
Operating activities:
|
||||||||
Net income
|
$ | 5,266 | $ | 4,146 | ||||
Adjustments to reconcile net income to net cash and
cash equivalents provided by operating activities: |
||||||||
Depreciation
|
430 | 393 | ||||||
Amortization of core deposit intangible
|
694 | 690 | ||||||
Other amortization, net
|
210 | (1 | ) | |||||
Accretion of loan discount
|
(3,277 | ) | (2,552 | ) | ||||
(Increase) decrease in FDIC indemnification asset
|
481 | (85 | ) | |||||
Provision for loan losses
|
4,605 | 5,140 | ||||||
Earnings on bank-owned life insurance
|
(649 | ) | (396 | ) | ||||
Stock based compensation expense
|
146 | 120 | ||||||
Bargain purchase gain on acquisition
|
(3,484 | ) | - | |||||
Net gain on sale of available for sale securities
|
(274 | ) | - | |||||
Gain on sale of loans
|
(657 | ) | - | |||||
Impairment on securities
|
717 | 113 | ||||||
Net loss on other real estate owned
|
2,376 | 147 | ||||||
Net (increase) decrease in other assets
|
(456 | ) | 501 | |||||
Net increase in other liabilities
|
399 | 549 | ||||||
Net cash and cash equivalents provided by operating activities
|
6,527 | 8,765 | ||||||
Investing activities:
|
||||||||
Purchases of securities available-for-sale
|
(3,128 | ) | - | |||||
Proceeds from sales of securities available for sale
|
22,914 | - | ||||||
Proceeds from paydowns, maturities and calls of securities available for sale
|
1,318 | 763 | ||||||
Purchases of securities held to maturity
|
(27,410 | ) | - | |||||
Proceeds from paydowns, maturities and calls of securities held to maturity
|
8,973 | 6,632 | ||||||
Loan originations and payments, net
|
11,238 | (29,114 | ) | |||||
Proceeds from sale of HarVest loans
|
7,568 | - | ||||||
Proceeds from sale of SBA loans
|
5,713 | - | ||||||
Net cash received in HarVest acquisition
|
47,257 | - | ||||||
Net (increase) decrease in stock in Federal Reserve Bank and Federal Home Loan Bank
|
1,630 | (1,006 | ) | |||||
Proceeds from cash surrender value of bank-owned life insurance
|
395 | - | ||||||
Proceeds from sale of other real estate owned
|
1,137 | 854 | ||||||
Payments received on FDIC indemnification asset
|
155 | 800 | ||||||
Purchases of bank premises and equipment
|
(557 | ) | (434 | ) | ||||
Net cash and cash equivalents provided by (used in) investing activities
|
77,203 | (21,505 | ) | |||||
Financing activities:
|
||||||||
Net decrease in deposits
|
(64,328 | ) | (22,992 | ) | ||||
Cash dividends paid - common stock
|
(638 | ) | - | |||||
Proceeds from Federal Home Loan Bank advances
|
- | 37,500 | ||||||
Repayment of Federal Home Loan Bank advances
|
(16,488 | ) | - | |||||
Net increase (decrease) in securities sold under agreement to repurchase and other short-term borrowings
|
14,977 | (4,456 | ) | |||||
Net cash and cash equivalents provided by (used in) financing activities
|
(66,477 | ) | 10,052 | |||||
Increase (decrease) in cash and cash equivalents
|
17,253 | (2,688 | ) | |||||
Cash and cash equivalents at beginning of period
|
5,035 | 9,745 | ||||||
Cash and cash equivalents at end of period
|
$ | 22,288 | $ | 7,057 | ||||
Supplemental Disclosure of Cash Flow Information
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$ | 4,464 | $ | 4,706 | ||||
Income taxes
|
1,788 | 855 | ||||||
Supplemental schedule of noncash investing and financing activities
|
||||||||
Transfer from non-covered loans to other real estate owned
|
1,959 | 9,477 | ||||||
Transfer from covered loans to other real estate owned
|
- | 82 | ||||||
See accompanying notes to consolidated financial statements.
|
2.
|
STOCK- BASED COMPENSATION
|
Expected life
|
10 years
|
|||
Expected volatility
|
35.64 | % | ||
Risk-free interest rate
|
2.04 | % | ||
Weighted average fair value per option granted
|
$ | 3.03 |
Weighted
|
||||||||||||||||
Weighted
|
Average
|
|||||||||||||||
Average
|
Remaining
|
Aggregate
|
||||||||||||||
Exercise
|
Contractual
|
Intrinsic
|
||||||||||||||
Shares
|
Price
|
Term
|
Value
|
|||||||||||||
Options outstanding, beginning of period
|
415,325 | $ | 8.06 | |||||||||||||
Granted
|
19,000 | 6.48 | ||||||||||||||
Forfeited
|
(11,250 | ) | 8.08 | |||||||||||||
Exercised
|
- | - | ||||||||||||||
Options outstanding, end of period
|
423,075 | $ | 7.99 | 5.7 | ||||||||||||
Vested or expected to vest
|
423,075 | $ | 7.99 | 5.7 | $ | 245 | ||||||||||
Exercisable at end of period
|
251,825 | $ | 8.59 | 4.1 | $ | 91 |
Amortized
Cost |
Gross Unrealized
|
Fair
Value
|
||||||||||||||
September 30, 2012
|
Gains
|
Losses
|
||||||||||||||
FHLMC preferred stock
|
$ | 16 | $ | 33 | $ | - | $ | 49 | ||||||||
Amortized
Cost |
Gross Unrealized
|
Fair
Value |
||||||||||||||
December 31, 2011
|
Gains
|
Losses
|
||||||||||||||
SBA guaranteed loan pools
|
$ | 9,557 | $ | 280 | $ | - | 9,837 | |||||||||
FHLMC preferred stock
|
16 | 52 | - | 68 | ||||||||||||
Total
|
$ | 9,573 | $ | 332 | $ | - | $ | 9,905 |
Amortized Cost |
Gross Unrecognized
|
Fair Value |
||||||||||||||
September 30, 2012
|
Gains
|
Losses
|
||||||||||||||
Residential government-sponsored mortgage-backed securities
|
$ | 38,765 | $ | 1,930 | $ | - | $ | 40,695 | ||||||||
Residential government-sponsored collateralized mortgage obligations
|
5,713 | 79 | - | 5,792 | ||||||||||||
Government-sponsored agency securities
|
24,982 | 131 | - | 25,113 | ||||||||||||
Obligations of states and political subdivisions
|
2,427 | 1 | - | 2,428 | ||||||||||||
Other residential collateralized mortgage obligations
|
842 | 8 | - | 850 | ||||||||||||
Trust preferred securities
|
7,767 | 1,188 | (2,224 | ) | 6,731 | |||||||||||
$ | 80,496 | $ | 3,337 | $ | (2,224 | ) | $ | 81,609 | ||||||||
Amortized
Cost |
Gross Unrecognized
|
Fair
Value |
||||||||||||||
December 31, 2011
|
Gains
|
Losses
|
||||||||||||||
Residential government-sponsored mortgage-backed securities
|
$ | 26,105 | $ | 1,710 | $ | 27,815 | ||||||||||
Residential government-sponsored collateralized mortgage obligations
|
85 | 2 | 87 | |||||||||||||
Other residential collateralized mortgage obligations
|
957 | - | (157 | ) | 800 | |||||||||||
Trust preferred securities
|
7,928 | 674 | (2,840 | ) | 5,762 | |||||||||||
$ | 35,075 | $ | 2,386 | $ | (2,997 | ) | $ | 34,464 |
Held to Maturity
|
||||||||
Amortized
|
||||||||
Cost
|
Fair Value
|
|||||||
Due after ten years
|
$ | 35,176 | $ | 34,272 | ||||
Residential government-sponsored mortgage-backed securities
|
38,765 | 40,695 | ||||||
Residential government-sponsored collateralized mortgage obligations
|
5,713 | 5,792 | ||||||
Other residential collateralized mortgage obligations
|
842 | 850 | ||||||
Total
|
$ | 80,496 | $ | 81,609 |
September 30, 2012
|
||||||||||||||||||||||||
Less than 12 months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Held to Maturity
|
Fair value
|
Unrecognized Losses
|
Fair value
|
Unrecognized Losses
|
Fair value
|
Unrecognized Losses
|
||||||||||||||||||
Trust preferred securities
|
$ | - | $ | - | $ | 4,891 | $ | (2,224 | ) | $ | 4,891 | (2,224 | ) | |||||||||||
December 31, 2011
|
||||||||||||||||||||||||
Less than 12 months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Held to Maturity
|
Fair value
|
Unrecognized Losses
|
Fair value
|
Unrecognized Losses
|
Fair value
|
Unrecognized Losses
|
||||||||||||||||||
Other residential collateralized mortgage obligations
|
$ | 800 | $ | (157 | ) | $ | - | $ | - | $ | 800 | $ | (157 | ) | ||||||||||
Trust preferred securities
|
- | - | 4,783 | (2,840 | ) | 4,783 | (2,840 | ) | ||||||||||||||||
$ | 800 | $ | (157 | ) | $ | 4,783 | $ | (2,840 | ) | $ | 5,583 | $ | (2,997 | ) |
Previously
|
|||||||||||||||||||||||||||||
Recognized
|
|||||||||||||||||||||||||||||
Cumulative
|
|||||||||||||||||||||||||||||
Ratings
|
Estimated
|
Current
|
Other
|
||||||||||||||||||||||||||
Tranche
|
When Purchased
|
Current Ratings
|
Fair
|
Defaults and
|
Comprehensive
|
||||||||||||||||||||||||
Security
|
Level
|
Moody’s
|
Fitch
|
Moody’s
|
Fitch
|
Par Value
|
Book Value
|
Value
|
Deferrals
|
Loss (1)
|
|||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
ALESCO VII A1B
|
Senior
|
Aaa
|
AAA
|
Baa3
|
BB
|
$ | 6,904 | $ | 6,216 | $ | 4,211 | $ | 117,400 | $ | 296 | ||||||||||||||
MMCF III B
|
Senior Sub
|
A3 | A- |
Ba1
|
CC
|
435 | 426 | 254 | 37,000 | 9 | |||||||||||||||||||
7,339 | 6,642 | 4,465 | $ | 305 | |||||||||||||||||||||||||
Cumulative
|
Cumulative
|
||||||||||||||||||||||||||||
Other Comprehensive
|
OTTI Related to
|
||||||||||||||||||||||||||||
Other Than Temporarily Impaired:
|
Loss (2)
|
Credit Loss (2)
|
|||||||||||||||||||||||||||
TPREF FUNDING II
|
Mezzanine
|
A1 | A- |
Caa3
|
C | 1,500 | 423 | 423 | 134,100 | 722 | $ | 355 | |||||||||||||||||
TRAP 2007-XII C1
|
Mezzanine
|
A3 | A | C | C | 2,107 | 55 | 55 | 202,705 | 759 | 1,293 | ||||||||||||||||||
TRAP 2007-XIII D
|
Mezzanine
|
NR
|
A- |
NR
|
C | 2,039 | - | 83 | 214,000 | 7 | 2,032 | ||||||||||||||||||
MMC FUNDING XVIII
|
Mezzanine
|
A3 | A- |
Ca
|
C | 1,070 | 27 | 166 | 96,682 | 352 | 691 | ||||||||||||||||||
ALESCO V C1
|
Mezzanine
|
A2 | A | C | C | 2,138 | 473 | 426 | 84,000 | 1,004 | 661 | ||||||||||||||||||
ALESCO XV C1
|
Mezzanine
|
A3 | A- | C | C | 3,175 | 30 | 641 | 249,100 | 586 | 2,559 | ||||||||||||||||||
ALESCO XVI C
|
Mezzanine
|
A3 | A- | C | C | 2,113 | 117 | 472 | 86,150 | 816 | 1,180 | ||||||||||||||||||
14,142 | 1,125 | 2,266 | $ | 4,246 | $ | 8,771 | |||||||||||||||||||||||
Total
|
$ | 21,481 | $ | 7,767 | $ | 6,731 |
●
|
.5% of the remaining performing collateral will default or defer per annum.
|
●
|
Recoveries ranging from 25% to 47% with a two year lag on all defaults and deferrals.
|
●
|
No prepayments for 10 years and then 1% per annum for the remaining life of the security.
|
●
|
Additionally banks with assets over $15 billion will no longer be allowed to count down-streamed trust preferred proceeds as Tier 1 capital (although it will still be counted as Tier 2 capital). That will incent the large banks to prepay their trust preferred securities if they can or if it is economically desirable. As a consequence, we have projected in all of our pools that 25% of the collateral issued by banks with assets over $15 billion will prepay in 2013.
|
●
|
Our securities have been modeled using the above assumptions by independent third parties using the forward LIBOR curve to discount projected cash flows to present values.
|
2012
|
2011
|
|||||||
Amount of cumulative other-than-temporary impairment related to credit loss prior to January 1
|
$ | 8,277 | $ | 8,002 | ||||
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized
|
- | - | ||||||
Amounts related to credit loss for which an other-than-temporary impairment was previously recognized
|
717 | 113 | ||||||
Reductions due to realized losses
|
(25 | ) | (28 | ) | ||||
Amount of cumulative other-than-temporary impairment related to credit loss as of September 30
|
$ | 8,969 | $ | 8,087 |
|
Non-covered Loans
|
|||||||||||||||||||||||||||
Covered
|
HarVest
|
Other
|
Total
|
Covered
|
Non-covered
|
Total
|
||||||||||||||||||||||
Loans (1)
|
Loans (2)
|
Loans
|
Loans
|
Loans (1)
|
Loans
|
Loans
|
||||||||||||||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||||||
Commercial real estate - owner-occupied
|
$ | 4,276 | $ | 17,067 | $ | 77,731 | $ | 99,074 | $ | 4,854 | $ | 82,450 | $ | 87,304 | ||||||||||||||
Commercial real estate - non-owner-occupied
|
11,965 | 11,233 | 107,307 | 130,505 | 11,243 | 117,059 | 128,302 | |||||||||||||||||||||
Secured by farmland
|
- | - | 1,486 | 1,486 | - | 1,506 | 1,506 | |||||||||||||||||||||
Construction and land loans
|
1,244 | 5,500 | 54,647 | 61,391 | 2,883 | 39,565 | 42,448 | |||||||||||||||||||||
Residential 1-4 family
|
22,038 | 13,709 | 47,330 | 83,077 | 25,307 | 49,288 | 74,595 | |||||||||||||||||||||
Multi- family residential
|
621 | 736 | 18,358 | 19,715 | 629 | 19,553 | 20,182 | |||||||||||||||||||||
Home equity lines of credit
|
33,288 | 1,991 | 6,925 | 42,204 | 35,442 | 9,040 | 44,482 | |||||||||||||||||||||
Total real estate loans
|
73,432 | 50,236 | 313,784 | 437,452 | 80,358 | 318,461 | 398,819 | |||||||||||||||||||||
Commercial loans
|
3,058 | 7,098 | 89,413 | 99,569 | 2,122 | 89,939 | 92,061 | |||||||||||||||||||||
Consumer loans
|
104 | 18 | 1,626 | 1,748 | 108 | 1,868 | 1,976 | |||||||||||||||||||||
Gross loans
|
76,594 | 57,352 | 404,823 | 538,769 | 82,588 | 410,268 | 492,856 | |||||||||||||||||||||
Less deferred fees on loans
|
6 | (5 | ) | (1,001 | ) | (1,000 | ) | - | (1,088 | ) | (1,088 | ) | ||||||||||||||||
Loans, net of deferred fees
|
$ | 76,600 | $ | 57,347 | $ | 403,822 | $ | 537,769 | $ | 82,588 | $ | 409,180 | $ | 491,768 |
September 30, 2012
|
Covered Loans
|
Non-covered Loans
|
Total Loans
|
|||||||||||||||||||||
Allowance
|
Allowance
|
Allowance
|
||||||||||||||||||||||
Recorded
|
for Loan
|
Recorded
|
for Loan
|
Recorded
|
for Loan
|
|||||||||||||||||||
Investment
|
Losses Allocated
|
Investment (1)
|
Losses Allocated (3)
|
Investment
|
Losses Allocated
|
|||||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 132 | $ | - | $ | 2,032 | $ | - | $ | 2,164 | $ | - | ||||||||||||
Commercial real estate - non-owner occupied (2)
|
2,321 | - | 1,714 | - | 4,035 | - | ||||||||||||||||||
Construction and land development
|
1,091 | - | 4,518 | - | 5,609 | - | ||||||||||||||||||
Commercial loans
|
208 | - | 5,550 | - | 5,758 | - | ||||||||||||||||||
Residential 1-4 family
|
1,162 | - | 9,946 | - | 11,108 | - | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 4,914 | $ | - | $ | 23,760 | $ | - | $ | 28,674 | $ | - | ||||||||||||
With an allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | - | $ | - | $ | 277 | $ | 75 | $ | 277 | $ | 75 | ||||||||||||
Commercial real estate - non-owner occupied (2)
|
- | - | 1,181 | 200 | 1,181 | 200 | ||||||||||||||||||
Construction and land development
|
- | - | 1,975 | 300 | 1,975 | 300 | ||||||||||||||||||
Commercial loans
|
- | - | - | - | - | - | ||||||||||||||||||
Residential 1-4 family
|
- | - | - | - | - | - | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | - | $ | - | $ | 3,433 | $ | 575 | $ | 3,433 | $ | 575 | ||||||||||||
Grand total
|
$ | 4,914 | $ | - | $ | 27,193 | $ | 575 | $ | 32,107 | $ | 575 |
December 31, 2011
|
Covered Loans
|
Non-covered Loans
|
Total Loans
|
|||||||||||||||||||||
Allowance
|
Allowance
|
Allowance
|
||||||||||||||||||||||
Recorded
|
for Loan
|
Recorded
|
for Loan
|
Recorded
|
for Loan
|
|||||||||||||||||||
Investment
|
Losses Allocated
|
Investment (1)
|
Losses Allocated (3)
|
Investment
|
Losses Allocated
|
|||||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 235 | $ | - | $ | 4,739 | $ | - | $ | 4,974 | $ | - | ||||||||||||
Commercial real estate - non-owner occupied (2)
|
1,831 | - | 3,294 | - | 5,125 | - | ||||||||||||||||||
Construction and land development
|
1,062 | - | 4,825 | - | 5,887 | - | ||||||||||||||||||
Commercial loans
|
213 | - | 10,704 | - | 10,917 | - | ||||||||||||||||||
Residential 1-4 family
|
1,355 | - | 375 | - | 1,730 | - | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 4,696 | $ | - | $ | 23,937 | $ | - | $ | 28,633 | $ | - | ||||||||||||
With an allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Commercial real estate - non-owner occupied (2)
|
- | - | - | - | - | - | ||||||||||||||||||
Construction and land development
|
- | - | 1,765 | 989 | 1,765 | 989 | ||||||||||||||||||
Commercial loans
|
- | - | 452 | 50 | 452 | 50 | ||||||||||||||||||
Residential 1-4 family
|
- | - | - | - | - | - | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | - | $ | - | $ | 2,217 | $ | 1,039 | $ | 2,217 | $ | 1,039 | ||||||||||||
Grand total
|
$ | 4,696 | $ | - | $ | 26,154 | $ | 1,039 | $ | 30,850 | $ | 1,039 |
Nine months ended September 30, 2012
|
||||||||||||||||||||||||
Covered Loans
|
Non-covered Loans
|
Total Loans
|
||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||
Recorded
|
Income
|
Recorded
|
Income
|
Recorded
|
Income
|
|||||||||||||||||||
Investment
|
Recognized
|
Investment
|
Recognized
|
Investment
|
Recognized
|
|||||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 135 | $ | 14 | $ | 203 | $ | - | $ | 338 | $ | 14 | ||||||||||||
Commercial real estate - non-owner occupied (1)
|
2,194 | 55 | 2,113 | 17 | 4,307 | 72 | ||||||||||||||||||
Construction and land development
|
1,085 | 76 | 3,410 | 50 | 4,495 | 126 | ||||||||||||||||||
Commercial loans
|
210 | 17 | 3,657 | 111 | 3,867 | 128 | ||||||||||||||||||
Residential 1-4 family
|
1,164 | 19 | 2,001 | 31 | 3,165 | 50 | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 4,788 | $ | 181 | $ | 11,384 | $ | 209 | $ | 16,172 | $ | 390 | ||||||||||||
With an allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | - | $ | - | $ | 286 | $ | 16 | $ | 286 | $ | 16 | ||||||||||||
Commercial real estate - non-owner occupied (1)
|
- | - | 1,435 | 78 | 1,435 | 78 | ||||||||||||||||||
Construction and land development
|
- | - | 2,179 | 87 | 2,179 | 87 | ||||||||||||||||||
Commercial loans
|
- | - | - | - | - | - | ||||||||||||||||||
Residential 1-4 family
|
- | - | - | - | - | - | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | - | $ | - | $ | 3,900 | $ | 181 | $ | 3,900 | $ | 181 | ||||||||||||
Grand total
|
$ | 4,788 | $ | 181 | $ | 15,284 | $ | 390 | $ | 20,072 | $ | 571 |
Nine months ended September 30, 2011
|
||||||||||||||||||||||||
Covered Loans
|
Non-covered Loans
|
Total Loans
|
||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||
Recorded
|
Income
|
Recorded
|
Income
|
Recorded
|
Income
|
|||||||||||||||||||
Investment
|
Recognized
|
Investment
|
Recognized
|
Investment
|
Recognized
|
|||||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 172 | $ | 14 | $ | 2,403 | $ | 102 | $ | 2,575 | $ | 116 | ||||||||||||
Commercial real estate - non-owner occupied (1)
|
1,774 | 64 | 3,457 | 134 | 5,231 | 198 | ||||||||||||||||||
Construction and land development
|
737 | 77 | 3,140 | 141 | 3,877 | 218 | ||||||||||||||||||
Commercial loans
|
217 | 17 | 4,314 | 179 | 4,531 | 196 | ||||||||||||||||||
Residential 1-4 family
|
517 | 4 | 431 | 11 | 948 | 15 | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 3,417 | $ | 176 | $ | 13,745 | $ | 567 | $ | 17,162 | $ | 743 | ||||||||||||
With an allowance recorded
|
||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Commercial real estate - non-owner occupied (1)
|
- | - | - | - | - | - | ||||||||||||||||||
Construction and land development
|
- | - | 1,796 | 60 | 1,796 | 60 | ||||||||||||||||||
Commercial loans
|
- | - | 994 | 54 | 994 | 54 | ||||||||||||||||||
Residential 1-4 family
|
- | - | - | - | - | - | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | - | $ | - | $ | 2,790 | $ | 114 | $ | 2,790 | $ | 114 | ||||||||||||
Grand total
|
$ | 3,417 | $ | 176 | $ | 16,535 | $ | 681 | $ | 19,952 | $ | 857 |
September 30, 2012
|
Covered Loans
|
Non-covered Loans
|
Total Loans
|
|||||||||||||||||||||
Loans Past Due
|
Loans Past Due
|
Loans Past Due
|
||||||||||||||||||||||
Nonaccrual
|
90 Days or More
|
Nonaccrual
|
90 Days or More
|
Nonaccrual
|
90 Days or More
|
|||||||||||||||||||
Loans
|
Still on Accrual
|
Loans
|
Still on Accrual
|
Loans
|
Still on Accrual
|
|||||||||||||||||||
Commercial real estate - owner occupied
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Commercial real estate - non-owner occupied (1)
|
2,168 | - | 625 | - | 2,793 | - | ||||||||||||||||||
Construction and land development
|
57 | - | 1,544 | - | 1,601 | - | ||||||||||||||||||
Commercial loans
|
- | - | 4,610 | - | 4,610 | - | ||||||||||||||||||
Residential 1-4 family
|
1,162 | - | 320 | - | 1,482 | - | ||||||||||||||||||
Other consumer loans
|
- | 2 | - | - | - | 2 | ||||||||||||||||||
Total
|
$ | 3,387 | $ | 2 | $ | 7,099 | $ | - | $ | 10,486 | $ | 2 | ||||||||||||
December 31, 2011
|
Covered Loans
|
Non-covered Loans
|
Total Loans
|
|||||||||||||||||||||
Loans Past Due
|
Loans Past Due
|
Loans Past Due
|
||||||||||||||||||||||
Nonaccrual
|
90 Days or More
|
Nonaccrual
|
90 Days or More
|
Nonaccrual
|
90 Days or More
|
|||||||||||||||||||
Loans
|
Still on Accrual
|
Loans
|
Still on Accrual
|
Loans
|
Still on Accrual
|
|||||||||||||||||||
Commercial real estate - owner occupied
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Commercial real estate - non-owner occupied (1)
|
1,985 | 136 | 625 | - | 2,610 | 136 | ||||||||||||||||||
Construction and land development
|
- | - | 1,087 | - | 1,087 | - | ||||||||||||||||||
Commercial loans
|
- | - | 2,772 | - | 2,772 | - | ||||||||||||||||||
Residential 1-4 family
|
1,355 | - | 57 | 32 | 1,412 | 32 | ||||||||||||||||||
Other consumer loans
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 3,340 | $ | 136 | $ | 4,541 | $ | 32 | $ | 7,881 | $ | 168 |
September 30, 2012
|
30 - 59 | 60 - 89 | ||||||||||||||||||||||||||
Days
|
Days
|
90 Days
|
Total
|
Nonaccrual
|
Loans Not
|
Total
|
||||||||||||||||||||||
Past Due
|
Past Due
|
or More
|
Past Due
|
Loans
|
Past Due
|
Loans
|
||||||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 845 | $ | - | $ | - | $ | 845 | $ | - | $ | 3,431 | $ | 4,276 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
4,287 | - | - | 4,287 | 2,168 | 6,131 | 12,586 | |||||||||||||||||||||
Construction and land development
|
81 | - | - | 81 | 57 | 1,106 | 1,244 | |||||||||||||||||||||
Commercial loans
|
- | - | - | - | - | 3,058 | 3,058 | |||||||||||||||||||||
Residential 1-4 family
|
635 | 187 | - | 822 | 1,162 | 53,342 | 55,326 | |||||||||||||||||||||
Other consumer loans
|
- | 1 | 2 | 3 | - | 101 | 104 | |||||||||||||||||||||
Total
|
$ | 5,848 | $ | 188 | $ | 2 | $ | 6,038 | $ | 3,387 | $ | 67,169 | $ | 76,594 | ||||||||||||||
Non-covered loans:
|
||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 8,353 | $ | 403 | $ | - | $ | 8,756 | $ | - | $ | 86,042 | $ | 94,798 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
204 | 524 | - | 728 | 625 | 137,767 | 139,120 | |||||||||||||||||||||
Construction and land development
|
27 | 1,425 | - | 1,452 | 1,544 | 57,151 | 60,147 | |||||||||||||||||||||
Commercial loans
|
974 | 438 | - | 1,412 | 4,610 | 90,489 | 96,511 | |||||||||||||||||||||
Residential 1-4 family
|
4,241 | 4,465 | - | 8,706 | 320 | 60,929 | 69,955 | |||||||||||||||||||||
Other consumer loans
|
1 | 2 | - | 3 | - | 1,641 | 1,644 | |||||||||||||||||||||
Total
|
$ | 13,800 | $ | 7,257 | $ | - | $ | 21,057 | $ | 7,099 | $ | 434,019 | $ | 462,175 | ||||||||||||||
Total loans:
|
||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 9,198 | $ | 403 | $ | - | $ | 9,601 | $ | - | $ | 89,473 | $ | 99,074 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
4,491 | 524 | - | 5,015 | 2,793 | 143,898 | 151,706 | |||||||||||||||||||||
Construction and land development
|
108 | 1,425 | - | 1,533 | 1,601 | 58,257 | 61,391 | |||||||||||||||||||||
Commercial loans
|
974 | 438 | - | 1,412 | 4,610 | 93,547 | 99,569 | |||||||||||||||||||||
Residential 1-4 family
|
4,876 | 4,652 | - | 9,528 | 1,482 | 114,271 | 125,281 | |||||||||||||||||||||
Other consumer loans
|
1 | 3 | 2 | 6 | - | 1,742 | 1,748 | |||||||||||||||||||||
Total
|
$ | 19,648 | $ | 7,445 | $ | 2 | $ | 27,095 | $ | 10,486 | $ | 501,188 | $ | 538,769 | ||||||||||||||
December 31, 2011
|
30 - 59 | 60 - 89 | ||||||||||||||||||||||||||
Days
|
Days
|
90 Days
|
Total
|
Nonaccrual
|
Loans Not
|
Total
|
||||||||||||||||||||||
Past Due
|
Past Due
|
or More
|
Past Due
|
Loans
|
Past Due
|
Loans
|
||||||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | - | $ | 303 | $ | - | $ | 303 | $ | - | $ | 4,551 | $ | 4,854 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
- | - | 136 | 136 | 1,985 | 9,751 | 11,872 | |||||||||||||||||||||
Construction and land development
|
- | - | - | - | - | 2,883 | 2,883 | |||||||||||||||||||||
Commercial loans
|
- | - | - | - | - | 2,122 | 2,122 | |||||||||||||||||||||
Residential 1-4 family
|
269 | 16 | - | 285 | 1,355 | 59,109 | 60,749 | |||||||||||||||||||||
Other consumer loans
|
5 | - | - | 5 | - | 103 | 108 | |||||||||||||||||||||
Total
|
$ | 274 | $ | 319 | $ | 136 | $ | 729 | $ | 3,340 | $ | 78,519 | $ | 82,588 | ||||||||||||||
Non-covered loans:
|
||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 847 | $ | - | $ | - | $ | 847 | $ | - | $ | 81,603 | $ | 82,450 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
140 | - | - | 140 | 625 | 137,353 | 138,118 | |||||||||||||||||||||
Construction and land development
|
290 | 39 | - | 329 | 1,087 | 38,149 | 39,565 | |||||||||||||||||||||
Commercial loans
|
1,022 | 585 | - | 1,607 | 2,772 | 85,560 | 89,939 | |||||||||||||||||||||
Residential 1-4 family
|
953 | 840 | 32 | 1,825 | 57 | 56,446 | 58,328 | |||||||||||||||||||||
Other consumer loans
|
2 | - | - | 2 | - | 1,866 | 1,868 | |||||||||||||||||||||
Total
|
$ | 3,254 | $ | 1,464 | $ | 32 | $ | 4,750 | $ | 4,541 | $ | 400,977 | $ | 410,268 | ||||||||||||||
Total loans:
|
||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 847 | $ | 303 | $ | - | $ | 1,150 | $ | - | $ | 86,154 | $ | 87,304 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
140 | - | 136 | 276 | 2,610 | 147,104 | 149,990 | |||||||||||||||||||||
Construction and land development
|
290 | 39 | - | 329 | 1,087 | 41,032 | 42,448 | |||||||||||||||||||||
Commercial loans
|
1,022 | 585 | - | 1,607 | 2,772 | 87,682 | 92,061 | |||||||||||||||||||||
Residential 1-4 family
|
1,222 | 856 | 32 | 2,110 | 1,412 | 115,555 | 119,077 | |||||||||||||||||||||
Other consumer loans
|
7 | - | - | 7 | - | 1,969 | 1,976 | |||||||||||||||||||||
Total
|
$ | 3,528 | $ | 1,783 | $ | 168 | $ | 5,479 | $ | 7,881 | $ | 479,496 | $ | 492,856 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Real Estate
|
Real Estate
|
Construction
|
Other
|
|||||||||||||||||||||||||||||
Owner
|
Non-owner
|
and Land
|
Commercial
|
1-4 Family
|
Consumer
|
|||||||||||||||||||||||||||
Nine months ended September 30, 2012
|
Occupied
|
Occupied (1)
|
Development
|
Loans
|
Residential
|
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 627 | $ | 1,011 | $ | 1,367 | $ | 2,227 | $ | 1,021 | $ | 42 | $ | - | $ | 6,295 | ||||||||||||||||
Charge offs
|
- | (1,081 | ) | (1,618 | ) | (1,378 | ) | (522 | ) | (6 | ) | - | (4,605 | ) | ||||||||||||||||||
Recoveries
|
- | 262 | 10 | 322 | 16 | 6 | - | 616 | ||||||||||||||||||||||||
Provision
|
186 | 1,111 | 1,639 | 1,225 | 215 | (7 | ) | 236 | 4,605 | |||||||||||||||||||||||
Ending balance
|
$ | 813 | $ | 1,303 | $ | 1,398 | $ | 2,396 | $ | 730 | $ | 35 | $ | 236 | $ | 6,911 | ||||||||||||||||
Nine months ended September 30, 2011
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 562 | $ | 1,265 | $ | 326 | $ | 2,425 | $ | 999 | $ | 9 | $ | 13 | $ | 5,599 | ||||||||||||||||
Charge offs
|
(63 | ) | (950 | ) | (7 | ) | (1,867 | ) | (1,927 | ) | (6 | ) | - | (4,820 | ) | |||||||||||||||||
Recoveries
|
3 | 6 | 6 | 127 | 23 | 3 | - | 168 | ||||||||||||||||||||||||
Provision
|
197 | 566 | 928 | 1,573 | 1,802 | 21 | 53 | 5,140 | ||||||||||||||||||||||||
Ending balance
|
$ | 699 | $ | 887 | $ | 1,253 | $ | 2,258 | $ | 897 | $ | 27 | $ | 66 | $ | 6,087 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Real Estate
|
Real Estate
|
Construction
|
Other
|
|||||||||||||||||||||||||||||
Owner
|
Non-owner
|
and Land
|
Commercial
|
1-4 Family
|
Consumer
|
|||||||||||||||||||||||||||
Occupied
|
Occupied (1)
|
Development
|
Loans
|
Residential
|
Loans
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
September 30, 2012
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 75 | $ | 200 | $ | 300 | $ | - | $ | - | $ | - | $ | - | $ | 575 | ||||||||||||||||
Collectively evaluated for impairment
|
738 | 1,103 | 1,098 | 2,396 | 730 | 35 | 236 | 6,336 | ||||||||||||||||||||||||
Total ending allowance
|
$ | 813 | $ | 1,303 | $ | 1,398 | $ | 2,396 | $ | 730 | $ | 35 | $ | 236 | $ | 6,911 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 2,309 | $ | 2,895 | $ | 6,493 | $ | 5,550 | $ | 9,946 | $ | - | $ | - | $ | 27,193 | ||||||||||||||||
Collectively evaluated for impairment
|
92,489 | 136,225 | 53,654 | 90,961 | 60,009 | 1,644 | - | 434,982 | ||||||||||||||||||||||||
Total ending loan balances
|
$ | 94,798 | $ | 139,120 | $ | 60,147 | $ | 96,511 | $ | 69,955 | $ | 1,644 | $ | - | $ | 462,175 | ||||||||||||||||
December 31, 2011
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | - | $ | 989 | $ | 50 | $ | - | $ | - | $ | - | $ | 1,039 | ||||||||||||||||
Collectively evaluated for impairment
|
627 | 1,011 | 378 | 2,177 | 1,021 | 42 | - | 5,256 | ||||||||||||||||||||||||
Total ending allowance
|
$ | 627 | $ | 1,011 | $ | 1,367 | $ | 2,227 | $ | 1,021 | $ | 42 | $ | - | $ | 6,295 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 4,739 | $ | 3,294 | $ | 6,590 | $ | 11,156 | $ | 375 | $ | - | $ | - | $ | 26,154 | ||||||||||||||||
Collectively evaluated for impairment
|
77,711 | 134,824 | 32,975 | 78,783 | 57,953 | 1,868 | - | 384,114 | ||||||||||||||||||||||||
Total ending loan balances
|
$ | 82,450 | $ | 138,118 | $ | 39,565 | $ | 89,939 | $ | 58,328 | $ | 1,868 | $ | - | $ | 410,268 |
Residential 1-4 Family Mortgage | 3 loans | $2.8 million |
Construction and Land Loans | 1 loan | $1.5 million |
September 30, 2012
|
Covered Loans
|
Non-covered Loans
|
Total Loans
|
|||||||||||||||||||||||||||||||||||||
Classified/
|
Special
|
Classified/
|
||||||||||||||||||||||||||||||||||||||
Criticized (1)
|
Pass
|
Total
|
Mention
|
Substandard (3)
|
Pass
|
Total
|
Criticized
|
Pass
|
Total
|
|||||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 132 | $ | 4,144 | $ | 4,276 | $ | 1,388 | $ | 2,309 | $ | 91,101 | $ | 94,798 | $ | 3,829 | $ | 95,245 | $ | 99,074 | ||||||||||||||||||||
Commercial real estate - non-owner occupied (2)
|
2,321 | 10,265 | 12,586 | - | 2,895 | 136,225 | 139,120 | 5,216 | 146,490 | 151,706 | ||||||||||||||||||||||||||||||
Construction and land development
|
1,091 | 153 | 1,244 | - | 6,493 | 53,654 | 60,147 | 7,584 | 53,807 | 61,391 | ||||||||||||||||||||||||||||||
Commercial loans
|
208 | 2,850 | 3,058 | 33 | 5,550 | 90,928 | 96,511 | 5,791 | 93,778 | 99,569 | ||||||||||||||||||||||||||||||
Residential 1-4 family
|
1,162 | 54,164 | 55,326 | - | 9,946 | 60,009 | 69,955 | 11,108 | 114,173 | 125,281 | ||||||||||||||||||||||||||||||
Other consumer loans
|
- | 104 | 104 | - | - | 1,644 | 1,644 | - | 1,748 | 1,748 | ||||||||||||||||||||||||||||||
Total
|
$ | 4,914 | $ | 71,680 | $ | 76,594 | $ | 1,421 | $ | 27,193 | $ | 433,561 | $ | 462,175 | $ | 33,528 | $ | 505,241 | $ | 538,769 | ||||||||||||||||||||
December 31, 2011
|
Covered Loans
|
Non-covered Loans
|
Total Loans
|
|||||||||||||||||||||||||||||||||||||
Classified/
|
Special
|
Classified/
|
||||||||||||||||||||||||||||||||||||||
Criticized (1)
|
Pass
|
Total
|
Mention
|
Substandard (3)
|
Pass
|
Total
|
Criticized
|
Pass
|
Total
|
|||||||||||||||||||||||||||||||
Commercial real estate - owner occupied
|
$ | 235 | $ | 4,619 | $ | 4,854 | $ | 1,404 | $ | 4,739 | $ | 76,307 | $ | 82,450 | $ | 6,378 | $ | 80,926 | $ | 87,304 | ||||||||||||||||||||
Commercial real estate - non-owner occupied (2)
|
1,831 | 10,041 | 11,872 | - | 3,294 | 134,824 | 138,118 | 5,125 | 144,865 | 149,990 | ||||||||||||||||||||||||||||||
Construction and land development
|
1,062 | 1,821 | 2,883 | - | 6,590 | 32,975 | 39,565 | 7,652 | 34,796 | 42,448 | ||||||||||||||||||||||||||||||
Commercial loans
|
213 | 1,909 | 2,122 | 33 | 11,156 | 78,750 | 89,939 | 11,402 | 80,659 | 92,061 | ||||||||||||||||||||||||||||||
Residential 1-4 family
|
1,355 | 59,394 | 60,749 | 40 | 375 | 57,913 | 58,328 | 1,770 | 117,307 | 119,077 | ||||||||||||||||||||||||||||||
Other consumer loans
|
108 | 108 | - | - | 1,868 | 1,868 | - | 1,976 | 1,976 | |||||||||||||||||||||||||||||||
Total
|
$ | 4,696 | $ | 77,892 | $ | 82,588 | $ | 1,477 | $ | 26,154 | $ | 382,637 | $ | 410,268 | $ | 32,327 | $ | 460,529 | $ | 492,856 |
(1)
|
Credit quality is enhanced by a loss sharing agreement with the FDIC in the covered portfolio. The same credit quality indicators used in the non-covered portfolio are combined.
|
(2)
|
Includes loans secured by farmland and multi-family residential loans.
|
(3)
|
Includes SBA guarantees of $2.6 million and $2.5 million as of September 30, 2012 and December 31, 2011, respectively.
|
Weighted
|
||||||||||||
Average
|
||||||||||||
Income
|
Shares
|
Per Share
|
||||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||||
For the three months ended September 30, 2012
|
||||||||||||
Basic EPS
|
$ | 1,208 | 11,590 | $ | 0.10 | |||||||
Effect of dilutive stock options and warrants
|
- | 7 | - | |||||||||
Diluted EPS
|
$ | 1,208 | 11,597 | $ | 0.10 | |||||||
For the three months ended September 30, 2011
|
||||||||||||
Basic EPS (as restated)
|
$ | 1,409 | 11,590 | $ | 0.12 | |||||||
Effect of dilutive stock options and warrants
|
- | 1 | - | |||||||||
Diluted EPS (as restated)
|
$ | 1,409 | 11,591 | $ | 0.12 | |||||||
For the nine months ended September 30, 2012
|
||||||||||||
Basic EPS
|
$ | 5,266 | 11,590 | $ | 0.45 | |||||||
Effect of dilutive stock options and warrants
|
- | 4 | - | |||||||||
Diluted EPS
|
$ | 5,266 | 11,594 | $ | 0.45 | |||||||
For the nine months ended September 30, 2011
|
||||||||||||
Basic EPS (as restated)
|
$ | 4,146 | 11,590 | $ | 0.36 | |||||||
Effect of dilutive stock options and warrants
|
- | 2 | - | |||||||||
Diluted EPS (as restated)
|
$ | 4,146 | 11,592 | $ | 0.36 |
Fair Value Measurements Using
|
||||||||||||||||
Significant
|
||||||||||||||||
Quoted Prices in
|
Other
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Total at
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
(dollars in thousands)
|
September 30, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Financial assets:
|
||||||||||||||||
Available for sale securities
|
||||||||||||||||
FHLMC preferred stock
|
$ | 49 | $ | 49 | $ | - | $ | - | ||||||||
Total available-for-sale securities
|
$ | 49 | $ | 49 | $ | - | $ | - | ||||||||
Fair Value Measurements Using
|
||||||||||||||||
Significant
|
||||||||||||||||
Quoted Prices in
|
Other
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Total at
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
(dollars in thousands)
|
December 31, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Financial assets:
|
||||||||||||||||
Available for sale securities
|
||||||||||||||||
SBA guaranteed loan pools
|
$ | 9,837 | $ | - | $ | 9,837 | $ | - | ||||||||
FHLMC preferred stock
|
68 | 68 | - | - | ||||||||||||
Total available-for-sale securities
|
$ | 9,905 | $ | 68 | $ | 9,837 | $ | - |
Fair Value Measurements Using
|
||||||||||||||||
Significant
|
||||||||||||||||
Quoted Prices in
|
Other
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Total at
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
(dollars in thousands)
|
September 30, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Trust preferred securities, held to maturity
|
$ | 478 | $ | 478 | ||||||||||||
Impaired non-covered loans:
|
||||||||||||||||
Commercial real estate - owner occupied
|
2,234 | 2,234 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
2,695 | 2,695 | ||||||||||||||
Construction and land development
|
6,193 | 6,193 | ||||||||||||||
Commercial loans
|
5,550 | 5,550 | ||||||||||||||
Residential 1-4 family
|
9,946 | 9,946 | ||||||||||||||
Impaired covered loans:
|
||||||||||||||||
Commercial real estate - owner occupied
|
132 | 132 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
2,321 | 2,321 | ||||||||||||||
Construction and land development
|
1,091 | 1,091 | ||||||||||||||
Commercial loans
|
208 | 208 | ||||||||||||||
Residential 1-4 family
|
1,162 | 1,162 | ||||||||||||||
Non-covered other real estate owned:
|
||||||||||||||||
Commercial real estate - owner occupied
|
746 | 746 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
1,342 | 1,342 | ||||||||||||||
Construction and land development
|
5,515 | 5,515 | ||||||||||||||
Residential 1-4 family
|
5,213 | 5,213 | ||||||||||||||
Covered other real estate owned:
|
||||||||||||||||
Commercial real estate - owner occupied
|
557 | 557 | ||||||||||||||
Commercial
|
79 | 79 | ||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Significant
|
||||||||||||||||
Quoted Prices in
|
Other
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Total at
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
(dollars in thousands)
|
December 31, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Trust preferred securities, held to maturity
|
$ | 32 | $ | 32 | ||||||||||||
Impaired non-covered loans:
|
||||||||||||||||
Commercial real estate - owner occupied
|
4,739 | 4,739 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
3,294 | 3,294 | ||||||||||||||
Construction and land development
|
5,601 | 5,601 | ||||||||||||||
Commercial loans
|
11,106 | 11,106 | ||||||||||||||
Residential 1-4 family
|
375 | 375 | ||||||||||||||
Impaired covered loans:
|
||||||||||||||||
Commercial real estate - owner occupied
|
235 | 235 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
1,831 | 1,831 | ||||||||||||||
Construction and land development
|
1,062 | 1,062 | ||||||||||||||
Commercial loans
|
213 | 213 | ||||||||||||||
Residential 1-4 family
|
1,355 | 1,355 | ||||||||||||||
Non-covered other real estate owned:
|
||||||||||||||||
Commercial real estate - owner occupied
|
1,414 | 1,414 | ||||||||||||||
Commercial real estate - non-owner occupied (1)
|
1,519 | 1,519 | ||||||||||||||
Construction and land development
|
4,614 | 4,614 | ||||||||||||||
Residential 1-4 family
|
6,073 | 6,073 | ||||||||||||||
Covered other real estate owned:
|
||||||||||||||||
Commercial real estate - owner occupied
|
557 | 557 | ||||||||||||||
Commercial
|
79 | 79 | ||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans.
|
September 30, 2012
|
December 31, 2011
|
|||||||||||||||||||
Fair Value
|
Carrying
|
Fair
|
Carrying
|
Fair
|
||||||||||||||||
Hierarchy Level
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
Level 1
|
$ | 22,288 | $ | 22,288 | $ | 5,035 | $ | 5,035 | |||||||||||
Securities available for sale
|
See previous table
|
49 | 49 | 9,905 | 9,905 | |||||||||||||||
Securities held to maturity
|
Level 2 & Level 3
|
80,496 | 81,609 | 35,075 | 34,464 | |||||||||||||||
Stock in Federal Reserve Bank and Federal
|
||||||||||||||||||||
Home Loan Bank
|
n/a | 6,190 | n/a | 6,653 | n/a | |||||||||||||||
Net non-covered loans
|
Level 3
|
454,258 | 453,600 | 402,885 | 400,777 | |||||||||||||||
Net covered loans
|
Level 3
|
76,600 | 76,474 | 82,588 | 82,079 | |||||||||||||||
Accrued interest receivable
|
Level 3
|
2,623 | 2,623 | 2,118 | 2,118 | |||||||||||||||
FDIC indemnification asset
|
Level 3
|
7,006 | 7,006 | 7,537 | 7,537 | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits:
|
||||||||||||||||||||
Demand deposits
|
Level 3
|
63,616 | 63,616 | 50,079 | 50,079 | |||||||||||||||
Money market and savings accounts
|
Level 3
|
176,367 | 176,367 | 155,232 | 155,232 | |||||||||||||||
Certificates of deposit
|
Level 3
|
297,268 | 300,044 | 255,784 | 258,928 | |||||||||||||||
Securities sold under agreements to
|
||||||||||||||||||||
repurchase and other short-term borrowings
|
Level 3
|
32,713 | 32,713 | 17,736 | 17,736 | |||||||||||||||
FHLB advances
|
Level 3
|
30,250 | 31,531 | 30,000 | 31,293 | |||||||||||||||
Accrued interest payable
|
Level 3
|
330 | 330 | 363 | 363 |
(a)
|
Correct the carrying value of the FDIC indemnification asset as of September 30, 2011.
|
(b)
|
Correct the accretion amounts for the accretable discount on the acquired loans. On the statement of cash flows as reported, the accretion of the loan discount was previously presented as loan originations and payments, net within investing activities. Reclassifications between covered loans, other assets and goodwill of approximately $500 thousand are reflected as adjustments to the balance sheet presentation in this footnote as of September 30, 2011 as compared to the summarized presentation included in the unaudited quarterly financial information footnote in our 2011 Form 10-K.
|
(c)
|
Record a liability for amounts expected to be paid to the FDIC at the maturity of the indemnification agreement as credit losses are not expected to reach levels established in the Purchase and Assumption Agreement for the acquisition of Greater Atlantic Bank. The initial fair value of this liability was reflected at the net present value of expected cash outflows of $586 thousand, and is accreted through other operating expenses to the expected cash disbursement.
|
(d)
|
Record the tax effects for the impact of the adjustments.
|
(e)
|
Recognize goodwill of $10 thousand.
|
Impact on Consolidated Balance Sheets
|
||||||||||||
September 30, 2011
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
As Restated
|
Adjustment
|
||||||||||
(dollars in thousands)
|
||||||||||||
(Unaudited) | ||||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents:
|
||||||||||||
Cash and due from financial institutions
|
$ | 2,432 | $ | 2,432 | $ | - | ||||||
Interest-bearing deposits in other financial institutions
|
4,625 | 4,625 | - | |||||||||
Total cash and cash equivalents
|
7,057 | 7,057 | - | |||||||||
Securities available for sale, at fair value
|
10,438 | 10,438 | - | |||||||||
Securities held to maturity, at amortized cost
|
||||||||||||
(fair value of $38,097)
|
38,354 | 38,354 | - | |||||||||
Covered loans
|
80,398 | 84,567 | 4,169 | b | ||||||||
Non-covered loans
|
396,494 | 396,494 | - | |||||||||
Total loans
|
476,892 | 481,061 | 4,169 | |||||||||
Less allowance for loan losses
|
(6,087 | ) | (6,087 | ) | - | |||||||
Net loans
|
470,805 | 474,974 | 4,169 | |||||||||
Stock in Federal Reserve Bank and Federal Home Loan Bank
|
7,356 | 7,356 | - | |||||||||
Bank premises and equipment, net
|
4,700 | 4,700 | - | |||||||||
Goodwill
|
8,713 | 8,723 | 10 | e | ||||||||
Core deposit intangibles, net
|
2,225 | 2,225 | - | |||||||||
FDIC indemnification asset
|
18,226 | 7,580 | (10,646 | ) a | ||||||||
Bank-owned life insurance
|
14,435 | 14,435 | - | |||||||||
Other real estate owned
|
13,097 | 13,097 | - | |||||||||
Deferred tax assets, net
|
4,440 | 6,963 | 2,523 | d | ||||||||
Other assets
|
5,532 | 5,522 | (10 | ) b/d | ||||||||
- | ||||||||||||
Total assets
|
$ | 605,378 | $ | 601,424 | (3,954 | ) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||
Noninterest-bearing demand deposits
|
$ | 31,791 | $ | 31,791 | $ | - | ||||||
Interest-bearing deposits:
|
||||||||||||
NOW accounts
|
16,310 | 16,310 | - | |||||||||
Money market accounts
|
140,781 | 140,781 | - | |||||||||
Savings accounts
|
6,335 | 6,335 | - | |||||||||
Time deposits
|
212,765 | 212,765 | - | |||||||||
Total interest-bearing deposits
|
376,191 | 376,191 | - | |||||||||
Total deposits
|
407,982 | 407,982 | - | |||||||||
Securities sold under agreements to repurchase and other
|
||||||||||||
short-term borrowings
|
19,452 | 19,452 | - | |||||||||
Federal Home Loan Bank (FHLB) advances
|
72,500 | 72,500 | - | |||||||||
Other liabilities
|
2,377 | 2,794 | 417 | c | ||||||||
Total liabilities
|
502,311 | 502,728 | 417 | |||||||||
Commitments and contingencies (see note 15)
|
- | - | ||||||||||
Stockholders’ equity:
|
||||||||||||
Preferred stock, $.01 par value. Authorized 5,000,000 shares;
|
||||||||||||
no shares issued and outstanding
|
- | - | ||||||||||
Common stock, $.01 par value. Authorized 45,000,000 shares;
|
||||||||||||
issued and outstanding, 11,590,212 shares at September 30, 2011
|
116 | 116 | - | |||||||||
Additional paid in capital
|
96,598 | 96,598 | - | |||||||||
Retained earnings
|
9,588 | 5,217 | (4,371 | ) | ||||||||
Accumulated other comprehensive loss
|
(3,235 | ) | (3,235 | ) | - | |||||||
Total stockholders’ equity
|
103,067 | 98,696 | (4,371 | ) | ||||||||
Total liabilities and stockholders’ equity
|
$ | 605,378 | $ | 601,424 | $ | (3,954 | ) |
Impact on Consolidated Statements of Income and Comprehensive Income
|
Impact on Consolidated Statements of Income and Comprehensive Income
|
|||||||||||||||||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||||||||||
September 30, 2011
|
September 30, 2011
|
|||||||||||||||||||||||
As Previously
|
As Previously
|
|||||||||||||||||||||||
Reported
|
As Restated
|
Adjustment
|
Reported
|
As Restated
|
Adjustment
|
|||||||||||||||||||
(dollars in thousands)
|
(dollars in thousands)
|
|||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||
Interest and dividend income :
|
||||||||||||||||||||||||
Interest and fees on loans
|
$ | 7,871 | $ | 8,165 | $ | 294 | b | $ | 22,202 | $ | 23,255 | $ | 1,053 | b | ||||||||||
Interest and dividends on taxable securities
|
457 | 457 | - | 1,495 | 1,495 | - | ||||||||||||||||||
Interest and dividends on other earning assets
|
66 | 66 | - | 169 | 169 | - | ||||||||||||||||||
Total interest and dividend income
|
8,394 | 8,688 | 294 | 23,866 | 24,919 | 1,053 | ||||||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Interest on deposits
|
1,217 | 1,217 | - | 3,744 | 3,744 | - | ||||||||||||||||||
Interest on borrowings
|
272 | 272 | - | 857 | 857 | - | ||||||||||||||||||
Total interest expense
|
1,489 | 1,489 | - | 4,601 | 4,601 | - | ||||||||||||||||||
Net interest income
|
6,905 | 7,199 | 294 | 19,265 | 20,318 | 1,053 | ||||||||||||||||||
Provision for loan losses
|
1,550 | 1,550 | - | 5,140 | 5,140 | - | ||||||||||||||||||
Net interest income after provision
|
||||||||||||||||||||||||
for loan losses
|
5,355 | 5,649 | 294 | 14,125 | 15,178 | 1,053 | ||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||
Account maintenance and deposit service fees
|
218 | 218 | - | 636 | 636 | - | ||||||||||||||||||
Income from bank-owned life insurance
|
129 | 129 | - | 1,196 | 1,196 | - | ||||||||||||||||||
Net loss on other assets
|
- | - | - | (147 | ) | (147 | ) | - | ||||||||||||||||
Total other-than-temporary impairment losses (OTTI)
|
(43 | ) | (43 | ) | - | (113 | ) | (113 | ) | - | ||||||||||||||
Portion of OTTI recognized in other comprehensive income (before taxes)
|
- | - | - | - | - | - | ||||||||||||||||||
Net credit related OTTI recognized in earnings
|
(43 | ) | (43 | ) | - | (113 | ) | (113 | ) | - | ||||||||||||||
Other
|
62 | 62 | - | 151 | 151 | - | ||||||||||||||||||
Total noninterest income
|
366 | 366 | - | 1,723 | 1,723 | - | ||||||||||||||||||
Noninterest expenses:
|
||||||||||||||||||||||||
Salaries and benefits
|
1,759 | 1,759 | - | 5,066 | 5,066 | - | ||||||||||||||||||
Occupancy expenses
|
573 | 573 | - | 1,667 | 1,667 | - | ||||||||||||||||||
Furniture and equipment expenses
|
140 | 140 | - | 406 | 406 | - | ||||||||||||||||||
Amortization of core deposit intangible
|
230 | 230 | - | 690 | 690 | - | ||||||||||||||||||
Virginia franchise tax expense
|
171 | 171 | - | 514 | 514 | - | ||||||||||||||||||
FDIC assessment
|
125 | 125 | - | 397 | 397 | - | ||||||||||||||||||
Data processing expense
|
126 | 126 | - | 400 | 400 | - | ||||||||||||||||||
Telephone and communication expense
|
101 | 101 | - | 289 | 289 | - | ||||||||||||||||||
Change in FDIC indemnification asset
|
(140 | ) | (13 | ) | 127 | a | (490 | ) | (85 | ) | 405 | a | ||||||||||||
Other operating expenses
|
695 | 702 | 7 | c | 1,788 | 1,809 | 21 | c | ||||||||||||||||
Total noninterest expenses
|
3,780 | 3,914 | 134 | 10,727 | 11,153 | 426 | ||||||||||||||||||
Income before income taxes
|
1,941 | 2,101 | 160 | 5,121 | 5,748 | 627 | ||||||||||||||||||
Income tax expense
|
638 | 692 | 54 | d | 1,387 | 1,602 | 215 | d | ||||||||||||||||
Net income
|
$ | 1,303 | $ | 1,409 | $ | 106 | $ | 3,734 | $ | 4,146 | $ | 412 | ||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Unrealized gain on available for sale securities
|
$ | (30 | ) | $ | (30 | ) | $ | - | $ | 167 | $ | 167 | $ | - | ||||||||||
Realized amount on securities sold, net
|
- | - | - | - | - | - | ||||||||||||||||||
Non-credit component of other-than-temporary impairment on held-to-maturity securities
|
(70 | ) | (70 | ) | - | 26 | 26 | - | ||||||||||||||||
Accretion of amounts previously recorded upon transfer to held-to-maturity from available-for sale
|
(27 | ) | (27 | ) | - | (44 | ) | (44 | ) | - | ||||||||||||||
Net unrealized gain (loss)
|
(127 | ) | (127 | ) | - | 149 | 149 | - | ||||||||||||||||
Tax effect
|
(44 | ) | (44 | ) | - | 50 | 50 | - | ||||||||||||||||
Other comprehensive income (loss):
|
(83 | ) | (83 | ) | - | 99 | 99 | - | ||||||||||||||||
Comprehensive income
|
$ | 1,220 | $ | 1,326 | $ | 106 | $ | 3,833 | $ | 4,245 | $ | 412 | ||||||||||||
Earnings per share, basic and diluted
|
$ | 0.11 | $ | 0.12 | $ | 0.01 | $ | 0.32 | $ | 0.36 | $ | 0.04 |
Impact on Consolidated Statements
|
||||||||||||
of Changes in Stockholders’ Equity
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
As Restated
|
Adjustment
|
||||||||||
(dollars in thousands)
|
||||||||||||
(Unaudited)
|
||||||||||||
Balance - December 31, 2010
|
$ | 99,114 | $ | 94,331 | $ | (4,783 | ) | |||||
Comprehensive income:
|
||||||||||||
Net income
|
3,734 | 4,146 | 412 | |||||||||
Change in unrealized loss on securities available for sale (net of tax, $57)
|
110 | 110 | - | |||||||||
Change in unrecognized loss on securities held to maturity for which a portion of OTTI has been recognized (net of tax, $7 and accretion, $44 and amounts recorded into other ”comprehensive income at transfer)
|
(11 | ) | (11 | ) | - | |||||||
Total comprehensive income
|
3,833 | 4,245 | 412 | |||||||||
Stock-based compensation expense
|
120 | 120 | - | |||||||||
Balance - September 30, 2011
|
$ | 103,067 | $ | 98,696 | $ | (4,371 | ) |
Impact on Consolidated Statements Cash Flows
|
||||||||||||
For the Nine Months Ended
|
||||||||||||
September 30, 2011
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
As Restated
|
Adjustment
|
||||||||||
(dollars in thousands)
|
||||||||||||
(Unaudited)
|
||||||||||||
Operating activities:
|
||||||||||||
Net income
|
$ | 3,734 | $ | 4,146 | $ | 412 | ||||||
Adjustments to reconcile net income (loss) to net cash and
|
||||||||||||
cash equivalents provided by operating activities:
|
||||||||||||
Depreciation
|
393 | 393 | - | |||||||||
Amortization of core deposit intangible
|
690 | 690 | - | |||||||||
Other amortization, net
|
(1 | ) | (1 | ) | - | |||||||
Accretion of loan discount
|
- | (2,552 | ) | (2,552 | ) b | |||||||
Decrease (increase) in FDIC indemnification asset
|
(490 | ) | (85 | ) | 405 | a | ||||||
Provision for loan losses
|
5,140 | 5,140 | - | |||||||||
Earnings on bank-owned life insurance
|
(396 | ) | (396 | ) | - | |||||||
Stock based compensation expense
|
120 | 120 | - | |||||||||
Impairment on securities
|
113 | 113 | - | |||||||||
Net loss on other real estate owned
|
147 | 147 | - | |||||||||
Net (increase) decrease in other assets
|
1,318 | 501 | (817 | ) d | ||||||||
Net increase (decrease) in other liabilities
|
549 | 549 | - | |||||||||
Net cash and cash equivalents provided by operating activities
|
11,317 | 8,765 | (2,552 | ) | ||||||||
Investing activities:
|
||||||||||||
Proceeds from paydowns, maturities and calls of securities available for sale
|
763 | 763 | - | |||||||||
Proceeds from paydowns, maturities and calls of securities held to maturity
|
6,632 | 6,632 | - | |||||||||
Loan originations and payments, net
|
(31,666 | ) | (29,114 | ) | 2,552 | b | ||||||
Net (increase) decrease in stock in Federal Reserve Bank and Federal Home Loan Bank
|
(1,006 | ) | (1,006 | ) | - | |||||||
Proceeds from sale of other real estate owned
|
854 | 854 | - | |||||||||
Payments received on FDIC indemnification asset
|
800 | 800 | - | |||||||||
Purchases of bank premises and equipment
|
(434 | ) | (434 | ) | - | |||||||
Net cash and cash equivalents used in investing activities
|
(24,057 | ) | (21,505 | ) | 2,552 | |||||||
Financing activities:
|
||||||||||||
Net increase in deposits
|
(22,992 | ) | (22,992 | ) | - | |||||||
Proceeds from Federal Home Loan Bank advances
|
37,500 | 37,500 | - | |||||||||
Net increase (decrease) in securities sold under agreement to repurchase and
|
- | |||||||||||
other short-term borrowings
|
(4,456 | ) | (4,456 | ) | - | |||||||
Net cash and cash equivalents provided by financing activities
|
10,052 | 10,052 | - | |||||||||
Decrease in cash and cash equivalents
|
(2,688 | ) | (2,688 | ) | - | |||||||
Cash and cash equivalents at beginning of period
|
9,745 | 9,745 | - | |||||||||
Cash and cash equivalents at end of period
|
$ | 7,057 | $ | 7,057 | $ | - | ||||||
Supplemental disclosure of cash flow information
|
||||||||||||
Cash payments for:
|
||||||||||||
Interest
|
$ | 4,706 | $ | 4,706 | - | |||||||
Income taxes
|
855 | 855 | - | |||||||||
Supplemental schedule of noncash investing and financing activities
|
||||||||||||
Transfer from non-covered loans to other real estate owned
|
9,477 | 9,477 | - | |||||||||
Transfer from covered loans to other real estate owned
|
82 | 82 | - |
Assets
|
||||
Cash and cash equivalents
|
$ | 21,704 | ||
Consideration from the FDIC
|
25,553 | |||
Investment securities
|
38,379 | |||
Loans
|
64,966 | |||
Loans held for sale
|
7,568 | |||
Federal Home Loan Bank stock
|
1,167 | |||
Other real estate owned
|
750 | |||
Core deposit intangible
|
179 | |||
Other assets
|
576 | |||
Total assets acquired
|
$ | 160,842 | ||
Liabilities
|
||||
Deposits
|
$ | 140,484 | ||
FHLB advances
|
16,738 | |||
Other liabilities
|
136 | |||
Total liabilities
|
$ | 157,358 | ||
Net assets acquired (bargain purchase gain)
|
$ | 3,484 |
|
●
|
our limited operating history;
|
|
●
|
the effects of future economic, business and market conditions and changes, domestic and foreign;
|
|
●
|
changes in the local economies in our market areas adversely affect our customers and their ability to transact profitable business with us, including the ability of our borrowers to repay their loans according to their terms or a change in the value of the related collateral;
|
|
●
|
changes in the availability of funds resulting in increased costs or reduced liquidity;
|
|
●
|
a deterioration or downgrade in the credit quality and credit agency ratings of the securities in our securities portfolio;
|
|
●
|
impairment concerns and risks related to our investment portfolio of collateralized mortgage obligations, agency mortgage-backed securities and pooled trust preferred securities;
|
|
●
|
the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations;
|
|
●
|
increased credit risk in our assets and increased operating risk caused by a material change in commercial, consumer and/or real estate loans as a percentage of our total loan portfolio;
|
|
●
|
the concentration of our loan portfolio in loans collateralized by real estate;
|
|
●
|
our level of construction and land development and commercial real estate loans;
|
|
●
|
changes in the levels of loan prepayments and the resulting effects on the value of our loan portfolio;
|
|
●
|
the failure of assumptions and estimates underlying the establishment of and provisions made to the allowance for loan losses;
|
|
●
|
our ability to expand and grow our business and operations, including the establishment of additional branches and acquisition of additional branches and banks, and our ability to realize the cost savings and revenue enhancements we expect from such activities;
|
|
●
|
changes in governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve System, or changes in interest rates and market prices, which could reduce our net interest margins, asset valuations and expense expectations;
|
|
●
|
increased competition for deposits and loans adversely affecting rates and terms;
|
|
●
|
the continued service of key management personnel;
|
|
●
|
the potential payment of interest on demand deposit accounts to effectively compete for customers;
|
|
●
|
potential environmental liability risk associated with lending activities;
|
|
●
|
increased asset levels and changes in the composition of assets and the resulting impact on our capital levels and regulatory capital ratios;
|
|
●
|
our ability to acquire, operate and maintain cost effective and efficient systems without incurring unexpectedly difficult or expensive but necessary technological changes; and
|
|
●
|
legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, including those associated with the Dodd Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and changes in the scope and cost of Federal Deposit Insurance Corporation (“FDIC”) insurance and other coverage;
|
|
●
|
increases in regulatory capital requirements for banking organizations generally, which may adversely affect our ability to expand our business or could cause us to shrink our business;
|
|
●
|
the effects of war or other conflicts, acts of terrorism or other catastrophic events that may affect general economic conditions;
|
|
●
|
changes in accounting policies, rules and practices and applications or determinations made thereunder;
|
|
●
|
the risk that our deferred tax assets could be reduced if future taxable income is less than currently estimated, if corporate tax rates in the future are less than current rates, or if sales of our capital stock trigger limitations on the amount of net operating loss carryforwards that we may utilize for income tax purposes; and
|
|
●
|
other factors and risks described under “Risk Factors” herein and in any of our subsequent reports that we make with the Securities and Exchange Commission (the “Commission” or “SEC”) under the Exchange Act.
|
Average Balance Sheets and Net Interest
|
||||||||||||||||||||||||
Analysis For the Quarters Ended
|
||||||||||||||||||||||||
9/30/2012
|
9/30/2011
|
|||||||||||||||||||||||
Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, net of unearned income (1) (2)
|
$ | 541,405 | $ | 9,008 | 6.62 | % | $ | 485,773 | $ | 8,165 | 6.67 | % | ||||||||||||
Investment securities
|
69,802 | 490 | 2.81 | % | 50,018 | 457 | 3.65 | % | ||||||||||||||||
Other earning assets
|
17,520 | 102 | 2.32 | % | 11,370 | 66 | 2.30 | % | ||||||||||||||||
Total earning assets
|
628,727 | 9,600 | 6.07 | % | 547,161 | 8,688 | 6.30 | % | ||||||||||||||||
Allowance for loan losses
|
(7,246 | ) | (6,544 | ) | ||||||||||||||||||||
Total non-earning assets
|
71,482 | 64,666 | ||||||||||||||||||||||
Total assets
|
$ | 692,963 | $ | 605,283 | ||||||||||||||||||||
Liabilities and stockholders’ equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 19,460 | 13 | 0.27 | % | $ | 15,578 | 11 | 0.27 | % | ||||||||||||||
Money market accounts
|
167,313 | 333 | 0.79 | % | 141,580 | 305 | 0.85 | % | ||||||||||||||||
Savings accounts
|
8,926 | 13 | 0.58 | % | 6,092 | 9 | 0.58 | % | ||||||||||||||||
Time deposits
|
290,432 | 945 | 1.29 | % | 228,414 | 892 | 1.55 | % | ||||||||||||||||
Total interest-bearing deposits
|
486,131 | 1,304 | 1.07 | % | 391,664 | 1,217 | 1.23 | % | ||||||||||||||||
Borrowings
|
54,879 | 165 | 1.20 | % | 81,616 | 272 | 1.32 | % | ||||||||||||||||
Total interest-bearing liabilities
|
541,010 | 1,469 | 1.08 | % | 473,280 | 1,489 | 1.25 | % | ||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
44,117 | 30,766 | ||||||||||||||||||||||
Other liabilities
|
3,909 | 2,987 | ||||||||||||||||||||||
Total liabilities
|
589,036 | 507,033 | ||||||||||||||||||||||
Stockholders’ equity
|
103,927 | 98,250 | ||||||||||||||||||||||
Total liabilities and stockholders’
|
||||||||||||||||||||||||
equity
|
$ | 692,963 | $ | 605,283 | ||||||||||||||||||||
Net interest income
|
8,131 | $ | 7,199 | |||||||||||||||||||||
Interest rate spread
|
4.99 | % | 5.05 | % | ||||||||||||||||||||
Net interest margin
|
5.14 | % | 5.22 | % | ||||||||||||||||||||
(1) Includes loan fees in both interest income and the calculation of the yield on loans.
|
||||||||||||||||||||||||
(2) Calculations include non-accruing loans in average loan amounts outstanding.
|
Average Balance Sheets and Net Interest
|
||||||||||||||||||||||||
Analysis For the Nine Months Ended
|
||||||||||||||||||||||||
9/30/2012
|
9/30/2011
|
|||||||||||||||||||||||
Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, net of unearned income (1) (2)
|
$ | 523,182 | $ | 26,387 | 6.74 | % | $ | 472,222 | $ | 23,255 | 6.58 | % | ||||||||||||
Investment securities
|
59,976 | 1,401 | 3.11 | % | 51,998 | 1,495 | 3.83 | % | ||||||||||||||||
Other earning assets
|
16,689 | 247 | 1.98 | % | 10,676 | 169 | 2.12 | % | ||||||||||||||||
Total earning assets
|
599,847 | 28,035 | 6.24 | % | 534,896 | 24,919 | 6.23 | % | ||||||||||||||||
Allowance for loan losses
|
(7,075 | ) | (6,154 | ) | ||||||||||||||||||||
Total non-earning assets
|
71,758 | 62,465 | ||||||||||||||||||||||
Total assets
|
$ | 664,530 | $ | 591,207 | ||||||||||||||||||||
Liabilities and stockholders’ equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 18,431 | 46 | 0.33 | % | $ | 15,560 | 31 | 0.27 | % | ||||||||||||||
Money market accounts
|
159,859 | 959 | 0.80 | % | 148,272 | 989 | 0.89 | % | ||||||||||||||||
Savings accounts
|
7,873 | 35 | 0.60 | % | 5,874 | 26 | 0.60 | % | ||||||||||||||||
Time deposits
|
277,455 | 2,763 | 1.33 | % | 225,999 | 2,698 | 1.60 | % | ||||||||||||||||
Total interest-bearing deposits
|
463,618 | 3,803 | 1.10 | % | 395,705 | 3,744 | 1.26 | % | ||||||||||||||||
Borrowings
|
51,270 | 628 | 1.64 | % | 64,563 | 857 | 1.77 | % | ||||||||||||||||
Total interest-bearing liabilities
|
514,888 | 4,431 | 1.15 | % | 460,268 | 4,601 | 1.34 | % | ||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
40,986 | 31,347 | ||||||||||||||||||||||
Other liabilities
|
6,694 | 2,872 | ||||||||||||||||||||||
Total liabilities
|
562,568 | 494,487 | ||||||||||||||||||||||
Stockholders’ equity
|
101,962 | 96,720 | ||||||||||||||||||||||
Total liabilities and stockholders’
|
||||||||||||||||||||||||
equity
|
$ | 664,530 | $ | 591,207 | ||||||||||||||||||||
Net interest income
|
$ | 23,604 | $ | 20,318 | ||||||||||||||||||||
Interest rate spread
|
5.09 | % | 4.89 | % | ||||||||||||||||||||
Net interest margin
|
5.26 | % | 5.08 | % | ||||||||||||||||||||
(1) Includes loan fees in both interest income and the calculation of the yield on loans.
|
||||||||||||||||||||||||
(2) Calculations include non-accruing loans in average loan amounts outstanding.
|
For the Three Months Ended
|
||||||||||||
September 30,
|
||||||||||||
2012
|
2011
|
Change
|
||||||||||
(dollars in thousands)
|
||||||||||||
Account maintenance and deposit service fees
|
$ | 222 | $ | 218 | $ | 4 | ||||||
Income from bank-owned life insurance
|
148 | 129 | 19 | |||||||||
Net gain on other real estate owned
|
24 | - | 24 | |||||||||
Net gain on sale of available for sale securities
|
287 | - | 287 | |||||||||
OTTI losses recognized in earnings
|
(480 | ) | (43 | ) | (437 | ) | ||||||
Other
|
63 | 62 | 1 | |||||||||
Total noninterest income
|
$ | 264 | $ | 366 | $ | (102 | ) | |||||
For the Nine Months Ended
|
||||||||||||
September 30,
|
||||||||||||
2012 | 2011 | Change | ||||||||||
(dollars in thousands)
|
||||||||||||
Account maintenance and deposit service fees
|
$ | 624 | $ | 636 | $ | (12 | ) | |||||
Income from bank-owned life insurance
|
649 | 1,196 | (547 | ) | ||||||||
Bargain purchase gain on acquisition
|
3,484 | - | 3,484 | |||||||||
Gain on sale of loans
|
657 | - | 657 | |||||||||
Net loss on other real estate owned
|
(2,376 | ) | (147 | ) | (2,229 | ) | ||||||
Gain on other assets
|
14 | - | 14 | |||||||||
Net gain on sale of available for sale securities
|
274 | - | 274 | |||||||||
OTTI losses recognized in earnings
|
(717 | ) | (113 | ) | (604 | ) | ||||||
Other
|
198 | 151 | 47 | |||||||||
Total noninterest income
|
$ | 2,807 | $ | 1,723 | $ | 1,084 |
For the Three Months Ended
|
||||||||||||
September 30,
|
||||||||||||
2012
|
2011
|
Change
|
||||||||||
(As Restated)
|
||||||||||||
(dollars in thousands)
|
||||||||||||
Salaries and benefits
|
$ | 2,073 | $ | 1,759 | $ | 314 | ||||||
Occupancy expenses
|
753 | 573 | 180 | |||||||||
Furniture and equipment expenses
|
149 | 140 | 9 | |||||||||
Amortization of core deposit intangible
|
236 | 230 | 6 | |||||||||
Virginia franchise tax expense
|
145 | 171 | (26 | ) | ||||||||
Merger expenses
|
11 | - | 11 | |||||||||
FDIC assessment
|
146 | 125 | 21 | |||||||||
Data processing expense
|
175 | 126 | 49 | |||||||||
Telephone and communication expense
|
183 | 101 | 82 | |||||||||
Change in FDIC indemnification asset
|
242 | (13 | ) | 255 | ||||||||
Other operating expenses
|
665 | 702 | (37 | ) | ||||||||
Total noninterest expense
|
$ | 4,778 | $ | 3,914 | $ | 864 | ||||||
For the Nine Months Ended
|
||||||||||||
September 30,
|
||||||||||||
2012 | 2011 |
Change
|
||||||||||
(As Restated)
|
||||||||||||
(dollars in thousands)
|
||||||||||||
Salaries and benefits
|
$ | 5,868 | $ | 5,066 | $ | 802 | ||||||
Occupancy expenses
|
2,040 | 1,667 | 373 | |||||||||
Furniture and equipment expenses
|
448 | 406 | 42 | |||||||||
Amortization of core deposit intangible
|
694 | 690 | 4 | |||||||||
Virginia franchise tax expense
|
436 | 514 | (78 | ) | ||||||||
Merger expenses
|
360 | - | 360 | |||||||||
FDIC assessment
|
417 | 397 | 20 | |||||||||
Data processing expense
|
474 | 400 | 74 | |||||||||
Telephone and communication expense
|
418 | 289 | 129 | |||||||||
Change in FDIC indemnification asset
|
481 | (85 | ) | 566 | ||||||||
Other operating expenses
|
2,417 | 1,809 | 608 | |||||||||
Total noninterest expense
|
$ | 14,053 | $ | 11,153 | $ | 2,900 |
|
Non-covered Loans
|
|||||||||||||||||||||||||||
Covered
|
HarVest
|
Other
|
Total
|
Covered
|
Non-covered
|
Total
|
||||||||||||||||||||||
Loans (1)
|
Loans (2)
|
Loans
|
Loans
|
Loans (1)
|
Loans
|
Loans
|
||||||||||||||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||||||
Commercial real estate - owner-occupied
|
$ | 4,276 | $ | 17,067 | $ | 77,731 | $ | 99,074 | $ | 4,854 | $ | 82,450 | $ | 87,304 | ||||||||||||||
Commercial real estate - non-owner-occupied
|
11,965 | 11,233 | 107,307 | 130,505 | 11,243 | 117,059 | 128,302 | |||||||||||||||||||||
Secured by farmland
|
- | - | 1,486 | 1,486 | - | 1,506 | 1,506 | |||||||||||||||||||||
Construction and land loans
|
1,244 | 5,500 | 54,647 | 61,391 | 2,883 | 39,565 | 42,448 | |||||||||||||||||||||
Residential 1-4 family
|
22,038 | 13,709 | 47,330 | 83,077 | 25,307 | 49,288 | 74,595 | |||||||||||||||||||||
Multi- family residential
|
621 | 736 | 18,358 | 19,715 | 629 | 19,553 | 20,182 | |||||||||||||||||||||
Home equity lines of credit
|
33,288 | 1,991 | 6,925 | 42,204 | 35,442 | 9,040 | 44,482 | |||||||||||||||||||||
Total real estate loans
|
73,432 | 50,236 | 313,784 | 437,452 | 80,358 | 318,461 | 398,819 | |||||||||||||||||||||
Commercial loans
|
3,058 | 7,098 | 89,413 | 99,569 | 2,122 | 89,939 | 92,061 | |||||||||||||||||||||
Consumer loans
|
104 | 18 | 1,626 | 1,748 | 108 | 1,868 | 1,976 | |||||||||||||||||||||
Gross loans
|
76,594 | 57,352 | 404,823 | 538,769 | 82,588 | 410,268 | 492,856 | |||||||||||||||||||||
Less deferred fees on loans
|
6 | (5 | ) | (1,001 | ) | (1,000 | ) | - | (1,088 | ) | (1,088 | ) | ||||||||||||||||
Loans, net of deferred fees
|
$ | 76,600 | $ | 57,347 | $ | 403,822 | $ | 537,769 | $ | 82,588 | $ | 409,180 | $ | 491,768 |
(1) Covered Loans are loans acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement.
|
(2) HarVest Loans are loans acquired in the HarVest transaction and are not covered under an FDIC loss-share agreement.
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Nonaccrual loans
|
$ | 7,099 | $ | 4,541 | ||||
Loans past due 90 days and accruing interest
|
- | 32 | ||||||
Total nonperforming loans
|
7,099 | 4,573 | ||||||
Other real estate owned
|
12,815 | 13,620 | ||||||
Total nonperforming assets
|
$ | 19,914 | $ | 18,193 | ||||
SBA guaranteed amounts included in nonaccrual loans
|
$ | 2,590 | $ | 2,462 | ||||
Allowance for loan losses to nonperforming loans
|
97.35 | % | 137.66 | % | ||||
Allowance for loan losses to total non-covered loans
|
1.50 | % | 1.54 | % | ||||
Nonperforming assets to total non-covered assets
|
3.16 | % | 3.44 | % | ||||
Nonperforming assets excluding SBA guaranteed loans to total non-covered assets
|
2.75 | % | 2.98 | % | ||||
Nonperforming assets to total non-covered loans and OREO
|
4.20 | % | 4.30 | % | ||||
Nonperforming assets excluding SBA guaranteed loans to total non-covered loans and OREO
|
3.65 | % | 3.72 | % |
Previously
|
||||||||||||||||||||||||||||
Recognized
|
||||||||||||||||||||||||||||
Cumulative
|
||||||||||||||||||||||||||||
Ratings
|
Estimated
|
Current
|
Other
|
|||||||||||||||||||||||||
Tranche
|
When Purchased
|
Current Ratings
|
Fair
|
Defaults and
|
Comprehensive
|
|||||||||||||||||||||||
Security
|
Level
|
Moody’s
|
Fitch
|
Moody’s
|
Fitch
|
Par Value
|
Book Value
|
Value
|
Deferrals
|
Loss (1)
|
||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
ALESCO VII A1B
|
Senior
|
Aaa
|
AAA
|
Baa3
|
BB
|
$ | 6,904 | $ | 6,216 | $ | 4,211 | $ | 117,400 | $ | 296 | |||||||||||||
MMCF III B
|
Senior Sub
|
A3 | A- |
Ba1
|
CC
|
435 | 426 | 254 | 37,000 | 9 | ||||||||||||||||||
7,339 | 6,642 | 4,465 | $ | 305 | ||||||||||||||||||||||||
Cumulative
|
Cumulative
|
|||||||||||||||||||||||||||
Other Comprehensive
|
OTTI Related to
|
|||||||||||||||||||||||||||
Other Than Temporarily Impaired:
|
Loss (2)
|
Credit Loss (2)
|
||||||||||||||||||||||||||
TPREF FUNDING II
|
Mezzanine
|
A1 | A- |
Caa3
|
C | 1,500 | 423 | 423 | 134,100 | 722 | $ | 355 | ||||||||||||||||
TRAP 2007-XII C1
|
Mezzanine
|
A3 | A | C | C | 2,107 | 55 | 55 | 202,705 | 759 | 1,293 | |||||||||||||||||
TRAP 2007-XIII D
|
Mezzanine
|
NR
|
A- |
NR
|
C | 2,039 | - | 83 | 214,000 | 7 | 2,032 | |||||||||||||||||
MMC FUNDING XVIII
|
Mezzanine
|
A3 | A- |
Ca
|
C | 1,070 | 27 | 166 | 96,682 | 352 | 691 | |||||||||||||||||
ALESCO V C1
|
Mezzanine
|
A2 | A | C | C | 2,138 | 473 | 426 | 84,000 | 1,004 | 661 | |||||||||||||||||
ALESCO XV C1
|
Mezzanine
|
A3 | A- | C | C | 3,175 | 30 | 641 | 249,100 | 586 | 2,559 | |||||||||||||||||
ALESCO XVI C
|
Mezzanine
|
A3 | A- | C | C | 2,113 | 117 | 472 | 86,150 | 816 | 1,180 | |||||||||||||||||
14,142 | 1,125 | 2,266 | $ | 4,246 | $ | 8,771 | ||||||||||||||||||||||
Total
|
$ | 21,481 | $ | 7,767 | $ | 6,731 |
Required
|
||||||||||||||||||||||||
For Capital
|
To Be Categorized as
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Well Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
September 30, 2012
|
||||||||||||||||||||||||
Southern National
|
||||||||||||||||||||||||
Tier 1 risk-based capital ratio
|
$ | 96,038 | 18.25 | % | $ | 21,050 | 4.00 | % | $ | 31,574 | 6.00 | % | ||||||||||||
Total risk-based capital ratio
|
102,605 | 19.50 | % | 42,099 | 8.00 | % | 52,624 | 10.00 | % | |||||||||||||||
Leverage ratio
|
96,038 | 14.08 | % | 27,275 | 4.00 | % | 34,093 | 5.00 | % | |||||||||||||||
Sonabank
|
||||||||||||||||||||||||
Tier 1 risk-based capital ratio
|
$ | 93,070 | 17.70 | % | $ | 21,038 | 4.00 | % | $ | 31,557 | 6.00 | % | ||||||||||||
Total risk-based capital ratio
|
99,633 | 18.94 | % | 42,076 | 8.00 | % | 52,595 | 10.00 | % | |||||||||||||||
Leverage ratio
|
93,070 | 13.65 | % | 27,263 | 4.00 | % | 34,079 | 5.00 | % | |||||||||||||||
December 31, 2011
|
||||||||||||||||||||||||
Southern National
|
||||||||||||||||||||||||
Tier 1 risk-based capital ratio
|
$ | 90,718 | 19.37 | % | $ | 18,738 | 4.00 | % | $ | 28,107 | 6.00 | % | ||||||||||||
Total risk-based capital ratio
|
96,560 | 20.61 | % | 37,476 | 8.00 | % | 46,845 | 10.00 | % | |||||||||||||||
Leverage ratio
|
90,718 | 14.89 | % | 24,367 | 4.00 | % | 30,459 | 5.00 | % | |||||||||||||||
Sonabank
|
||||||||||||||||||||||||
Tier 1 risk-based capital ratio
|
$ | 87,176 | 18.62 | % | $ | 18,729 | 4.00 | % | $ | 28,094 | 6.00 | % | ||||||||||||
Total risk-based capital ratio
|
93,015 | 19.87 | % | 37,459 | 8.00 | % | 46,823 | 10.00 | % | |||||||||||||||
Leverage ratio
|
87,176 | 14.31 | % | 24,367 | 4.00 | % | 30,459 | 5.00 | % |
Sensitivity of Market Value of Portfolio Equity
|
||||||||||||||||||||
As of September 30, 2012
|
||||||||||||||||||||
Market Value of
|
||||||||||||||||||||
Change in
|
Market Value of Portfolio Equity
|
Portfolio Equity as a % of
|
||||||||||||||||||
Interest Rates
|
Portfolio
|
|||||||||||||||||||
in Basis Points
|
$ Change
|
% Change
|
Total
|
Equity
|
||||||||||||||||
(Rate Shock)
|
Amount
|
From Base
|
From Base
|
Assets
|
Book Value
|
|||||||||||||||
(Dollar amounts in thousands)
|
||||||||||||||||||||
Up 400
|
$ | 84,846 | $ | (16,560 | ) | -16.33 | % | 11.98 | % | 81.56 | % | |||||||||
Up 300
|
88,700 | (12,706 | ) | -12.53 | % | 12.52 | % | 85.27 | % | |||||||||||
Up 200
|
93,775 | (7,631 | ) | -7.53 | % | 13.24 | % | 90.15 | % | |||||||||||
Up 100
|
97,824 | (3,582 | ) | -3.53 | % | 13.81 | % | 94.04 | % | |||||||||||
Base
|
101,406 | - | 0.00 | % | 14.32 | % | 97.48 | % | ||||||||||||
Down 100
|
98,074 | (3,332 | ) | -3.29 | % | 13.85 | % | 94.28 | % | |||||||||||
Down 200
|
97,327 | (4,079 | ) | -4.02 | % | 13.74 | % | 93.56 | % |
Sensitivity of Market Value of Portfolio Equity
|
||||||||||||||||||||
As of December 31, 2011
|
||||||||||||||||||||
Market Value of
|
||||||||||||||||||||
Change in
|
Market Value of Portfolio Equity
|
Portfolio Equity as a % of
|
||||||||||||||||||
Interest Rates
|
Portfolio
|
|||||||||||||||||||
in Basis Points
|
$ Change
|
% Change
|
Total
|
Equity
|
||||||||||||||||
(Rate Shock)
|
Amount
|
From Base
|
From Base
|
Assets
|
Book Value
|
|||||||||||||||
(Dollar amounts in thousands)
|
||||||||||||||||||||
Up 400
|
$ | 94,069 | $ | (6,103 | ) | -6.09 | % | 15.39 | % | 94.97 | % | |||||||||
Up 300
|
95,562 | (4,610 | ) | -4.60 | % | 15.63 | % | 96.48 | % | |||||||||||
Up 200
|
97,934 | (2,238 | ) | -2.23 | % | 16.02 | % | 98.87 | % | |||||||||||
Up 100
|
98,965 | (1,207 | ) | -1.20 | % | 16.19 | % | 99.91 | % | |||||||||||
Base
|
100,172 | - | 0.00 | % | 16.38 | % | 101.13 | % | ||||||||||||
Down 100
|
96,052 | (4,120 | ) | -4.11 | % | 15.71 | % | 96.97 | % | |||||||||||
Down 200
|
94,524 | (5,648 | ) | -5.64 | % | 15.46 | % | 95.43 | % |
Sensitivity of Net Interest Income
|
||||||||||||||||
As of September 30, 2012
|
||||||||||||||||
Change in
|
Adjusted Net Interest Income
|
Net Interest Margin
|
||||||||||||||
Interest Rates
|
||||||||||||||||
in Basis Points
|
$ Change
|
% Change
|
||||||||||||||
(Rate Shock)
|
Amount
|
From Base
|
Percent
|
From Base
|
||||||||||||
(Dollar amounts in thousands)
|
||||||||||||||||
Up 400
|
$ | 31,440 | $ | 2,288 | 4.85 | % | 0.35 | % | ||||||||
Up 300
|
30,899 | 1,747 | 4.77 | % | 0.27 | % | ||||||||||
Up 200
|
30,387 | 1,235 | 4.69 | % | 0.19 | % | ||||||||||
Up 100
|
29,780 | 628 | 4.60 | % | 0.10 | % | ||||||||||
Base
|
29,152 | - | 4.50 | % | 0.00 | % | ||||||||||
Down 100
|
29,501 | 349 | 4.56 | % | 0.06 | % | ||||||||||
Down 200
|
29,476 | 324 | 4.55 | % | 0.05 | % |
Sensitivity of Net Interest Income
|
||||||||||||||||
As of December 31, 2011
|
||||||||||||||||
Change in
|
Adjusted Net Interest Income
|
Net Interest Margin
|
||||||||||||||
Interest Rates
|
||||||||||||||||
in Basis Points
|
$ Change
|
% Change
|
||||||||||||||
(Rate Shock)
|
Amount
|
From Base
|
Percent
|
From Base
|
||||||||||||
(Dollar amounts in thousands)
|
||||||||||||||||
Up 400
|
$ | 28,323 | $ | 2,593 | 5.16 | % | 0.46 | % | ||||||||
Up 300
|
27,654 | 1,924 | 5.04 | % | 0.34 | % | ||||||||||
Up 200
|
27,021 | 1,291 | 4.93 | % | 0.23 | % | ||||||||||
Up 100
|
26,286 | 556 | 4.80 | % | 0.10 | % | ||||||||||
Base
|
25,730 | - | 4.70 | % | 0.00 | % | ||||||||||
Down 100
|
26,408 | 678 | 4.82 | % | 0.12 | % | ||||||||||
Down 200
|
26,405 | 675 | 4.82 | % | 0.12 | % |
● | Reconciliation and review of data used by the third-party consultant to our internal systems and accounting records to ensure completeness and accuracy of the data. | |
● | The review and approval by management of the methods, assumptions and calculations performed by the valuation consultant related to the accounting for non-routine transactions. | |
● | The review and approval by the chief financial officer of all journal entries related to the accounting for non-routine transactions. | |
● | Oversight by management and the Audit Committee of the methods and assumptions used for the valuation of acquired assets and liabilities and the accounting conclusions reached related to non-routine transactions. | |
● | In-depth evaluation and approval of the credentials and expertise of third-party consultants prior to engagement. |
Exhibit No. | Description | ||
31.1*
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
31.2*
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
32.1**
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
* | Filed with this Quarterly Report on Form 10-Q | |
** | Furnished with this Quarterly Report on Form 10-Q |
Southern National Bancorp of Virginia, Inc.
|
||||
(Registrant) | ||||
November 8, 2012
|
/s/ Georgia S. Derrico | |||
(Date) | Georgia S. Derrico, | |||
Chairman of the Board and Chief Executive Officer | ||||
November 8, 2012
|
/s/ William H. Lagos | |||
(Date) | William H. Lagos, | |||
Senior Vice President and Chief Financial Officer
|
CERTIFICATIONS
|
I, Georgia S. Derrico, certify that:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 8, 2012
|
||
/s/ Georgia S. Derrico
|
||
Georgia S. Derrico,
|
||
Chairman of the Board and Chief Executive Officer
|
Exhibit 31.2
|
CERTIFICATIONS
|
I, William H. Lagos, certify that:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 8, 2012
|
|
|
/s/ William H. Lagos
|
||
William H. Lagos,
|
||
Senior Vice President and Chief Financial Officer
|
/s/ Georgia S. Derrico
|
|
Georgia S. Derrico, Chief Executive Officer
|
/s/ William H. Lagos
|
|
William H. Lagos, Chief Financial Officer
|
|
November 8, 2012
|
FAIR VALUE - Assets measured at fair value on recurring basis (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Available for sale securities | ||
Securities available for sale, at fair value | $ 49 | $ 9,905 |
Fair Value, Measurements, Recurring | Fair Value
|
||
Available for sale securities | ||
Securities available for sale, at fair value | 49 | 9,905 |
Fair Value, Measurements, Recurring | Fair Value | SBA Guaranteed
|
||
Available for sale securities | ||
Securities available for sale, at fair value | 9,837 | |
Fair Value, Measurements, Recurring | Fair Value | FHLMC preferred stock
|
||
Available for sale securities | ||
Securities available for sale, at fair value | 49 | 68 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
|
||
Available for sale securities | ||
Securities available for sale, at fair value | 49 | 68 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | SBA Guaranteed
|
||
Available for sale securities | ||
Securities available for sale, at fair value | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | FHLMC preferred stock
|
||
Available for sale securities | ||
Securities available for sale, at fair value | 49 | 68 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
|
||
Available for sale securities | ||
Securities available for sale, at fair value | 9,837 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | SBA Guaranteed
|
||
Available for sale securities | ||
Securities available for sale, at fair value | 9,837 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | FHLMC preferred stock
|
||
Available for sale securities | ||
Securities available for sale, at fair value | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
||
Available for sale securities | ||
Securities available for sale, at fair value | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | SBA Guaranteed
|
||
Available for sale securities | ||
Securities available for sale, at fair value | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | FHLMC preferred stock
|
||
Available for sale securities | ||
Securities available for sale, at fair value |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Textuals 2) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
loan
|
|
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Troubled Debt restructurings | $ 195 |
Number of modified loan | 2 |
FAIR VALUE - Assets measured at fair value on non-recurring basis (Details 1) (Fair Value, Measurements, Nonrecurring, USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Fair Value | Commercial real estate - owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | $ 2,234 | $ 4,739 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 132 | 235 | ||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 746 | 1,414 | ||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | 557 | 557 | ||||
Fair Value | Commercial real estate - non-owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 2,695 | [1] | 3,294 | [1] | ||
Impaired Covered Loans | ||||||
Impaired covered loans: | 2,321 | [1] | 1,831 | [1] | ||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 1,342 | [1] | 1,519 | [1] | ||
Fair Value | Construction and Land Loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 6,193 | 5,601 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 1,091 | 1,062 | ||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 5,515 | 4,614 | ||||
Fair Value | Commercial loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 5,550 | 11,106 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 208 | 213 | ||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | 79 | 79 | ||||
Fair Value | Residential 1-4 family
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 9,946 | 375 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 1,162 | 1,355 | ||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 5,213 | 6,073 | ||||
Fair Value | Trust Preferred Securities Subject to Mandatory Redemption
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities Received On Trust Preferred Securities Held To Maturity | 478 | 32 | ||||
Fair Value, Inputs, Level 1 | Commercial real estate - owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | ||||||
Fair Value, Inputs, Level 1 | Commercial real estate - non-owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Fair Value, Inputs, Level 1 | Construction and Land Loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Fair Value, Inputs, Level 1 | Commercial loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | ||||||
Fair Value, Inputs, Level 1 | Residential 1-4 family
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Fair Value, Inputs, Level 1 | Trust Preferred Securities Subject to Mandatory Redemption
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities Received On Trust Preferred Securities Held To Maturity | ||||||
Fair Value, Inputs, Level 2 | Commercial real estate - owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | ||||||
Fair Value, Inputs, Level 2 | Commercial real estate - non-owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Fair Value, Inputs, Level 2 | Construction and Land Loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Fair Value, Inputs, Level 2 | Commercial loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | ||||||
Fair Value, Inputs, Level 2 | Residential 1-4 family
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | ||||||
Impaired Covered Loans | ||||||
Impaired covered loans: | ||||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | ||||||
Fair Value, Inputs, Level 2 | Trust Preferred Securities Subject to Mandatory Redemption
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities Received On Trust Preferred Securities Held To Maturity | ||||||
Fair Value, Inputs, Level 3 | Commercial real estate - owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 2,234 | 4,739 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 132 | 235 | ||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 746 | 1,414 | ||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | 557 | 557 | ||||
Fair Value, Inputs, Level 3 | Commercial real estate - non-owner occupied
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 2,695 | [1] | 3,294 | [1] | ||
Impaired Covered Loans | ||||||
Impaired covered loans: | 2,321 | [1] | 1,831 | [1] | ||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 1,342 | [1] | 1,519 | [1] | ||
Fair Value, Inputs, Level 3 | Construction and Land Loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 6,193 | 5,601 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 1,091 | 1,062 | ||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 5,515 | 4,614 | ||||
Fair Value, Inputs, Level 3 | Commercial loans
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 5,550 | 11,106 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 208 | 213 | ||||
Covered Other Real Estate Owned | ||||||
Covered other real estate owned: | 79 | 79 | ||||
Fair Value, Inputs, Level 3 | Residential 1-4 family
|
||||||
Impaired Non Covered Loans | ||||||
Impaired non-covered loans: | 9,946 | 375 | ||||
Impaired Covered Loans | ||||||
Impaired covered loans: | 1,162 | 1,355 | ||||
Non Covered Other Real Estate Owned | ||||||
Non-covered other real estate owned: | 5,213 | 6,073 | ||||
Fair Value, Inputs, Level 3 | Trust Preferred Securities Subject to Mandatory Redemption
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities Received On Trust Preferred Securities Held To Maturity | $ 478 | $ 32 | ||||
|
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Textuals) (USD $)
|
Sep. 30, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Covered loans | Greater Atlantic Bank
|
||||||
Mortgage loans on real estate: | ||||||
Loss Sharing Agreement | $ 143,400,000 | |||||
Non-covered Loans | Harvest Bank Of Maryland Member
|
||||||
Mortgage loans on real estate: | ||||||
Total loans | 57,300,000 | |||||
Total Loans
|
||||||
Mortgage loans on real estate: | ||||||
Total loans | 538,769,000 | 492,856,000 | ||||
Total Loans | Covered loans
|
||||||
Mortgage loans on real estate: | ||||||
Total loans | 76,594,000 | [1] | 82,588,000 | [1] | ||
Total Loans | Non-covered Loans
|
||||||
Mortgage loans on real estate: | ||||||
Total loans | $ 462,175,000 | $ 410,268,000 | ||||
|
SECURITIES - Owned pooled trust preferred securities (Details 4) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | [1] | $ (4) | |||||||||||
Cumulative OTTI Related to Credit Loss | |||||||||||||
Estimated fair value | 81,609 | 38,097 | 81,609 | 38,097 | 34,464 | ||||||||
Trust preferred securities
|
|||||||||||||
Security | |||||||||||||
Par value - security | 7,339 | 7,339 | |||||||||||
Book value - security | 6,642 | 6,642 | |||||||||||
Estimated fair value - security | 4,465 | 4,465 | |||||||||||
Previously Recognized Cumulative Other Comprehensive Loss | 305 | [2] | |||||||||||
Other than temporarily impaired | |||||||||||||
Par value - other than temporarily impaired | 14,142 | 14,142 | |||||||||||
Book value - other than temporarily impaired | 1,125 | 1,125 | |||||||||||
Estimated fair value - other than temporarily impaired | 2,266 | 2,266 | |||||||||||
Cumulative Other Comprehensive Loss | 4,246 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 8,771 | [3] | |||||||||||
Par value | 21,481 | 21,481 | |||||||||||
Book value | 7,767 | 7,767 | |||||||||||
Estimated fair value | 6,731 | 6,731 | 5,762 | ||||||||||
Trust preferred securities | Alesco VII A1B Senior | Rating Of Moody AAA Fitch AAA When Purchased and Current Moody Baa3 Fitch BB
|
|||||||||||||
Security | |||||||||||||
Par value - security | 6,904 | 6,904 | |||||||||||
Book value - security | 6,216 | 6,216 | |||||||||||
Estimated fair value - security | 4,211 | 4,211 | |||||||||||
Previously Recognized Cumulative Other Comprehensive Loss | 296 | [2] | |||||||||||
Other than temporarily impaired | |||||||||||||
Current Defaults and Deferrals | 117,400 | ||||||||||||
Trust preferred securities | MMCF III B Senior Sub | Rating Of Moody A3 Fitch A- When Purchased and Current Moody Ba1 Fitch CC
|
|||||||||||||
Security | |||||||||||||
Par value - security | 435 | 435 | |||||||||||
Book value - security | 426 | 426 | |||||||||||
Estimated fair value - security | 254 | 254 | |||||||||||
Previously Recognized Cumulative Other Comprehensive Loss | 9 | [2] | |||||||||||
Other than temporarily impaired | |||||||||||||
Current Defaults and Deferrals | 37,000 | ||||||||||||
Trust preferred securities | TPREF FUNDING II Mezzanine | Rating Of Moody A1 Fitch A- When Purchased and Current Moody Caa3 Fitch C
|
|||||||||||||
Security | |||||||||||||
Par value - security | 1,500 | 1,500 | |||||||||||
Book value - security | 423 | 423 | |||||||||||
Estimated fair value - security | 423 | 423 | |||||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | 722 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 355 | [3] | |||||||||||
Current Defaults and Deferrals | 134,100 | ||||||||||||
Trust preferred securities | TRAP 2007-XII C1 Mezzanine | Rating Of Moody A3 Fitch A When Purchased and Current Moody C Fitch C
|
|||||||||||||
Security | |||||||||||||
Par value - security | 2,107 | 2,107 | |||||||||||
Book value - security | 55 | 55 | |||||||||||
Estimated fair value - security | 55 | 55 | |||||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | 759 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 1,293 | [3] | |||||||||||
Current Defaults and Deferrals | 202,705 | ||||||||||||
Trust preferred securities | TRAP 2007-XIII D Mezzanine | Rating Of Fitch A- When Purchased and Current Fitch C
|
|||||||||||||
Security | |||||||||||||
Par value - security | 2,039 | 2,039 | |||||||||||
Book value - security | |||||||||||||
Estimated fair value - security | 83 | 83 | |||||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | 7 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 2,032 | [3] | |||||||||||
Current Defaults and Deferrals | 214,000 | ||||||||||||
Trust preferred securities | MMC FUNDING XVIII Mezzanine | Rating Of Moody A3 Fitch A- When Purchased and Current Moody Ca Fitch C
|
|||||||||||||
Security | |||||||||||||
Par value - security | 1,070 | 1,070 | |||||||||||
Book value - security | 27 | 27 | |||||||||||
Estimated fair value - security | 166 | 166 | |||||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | 352 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 691 | [3] | |||||||||||
Current Defaults and Deferrals | 96,682 | ||||||||||||
Trust preferred securities | ALESCO V C1 Mezzanine | Rating Of Moody A2 Fitch A When Purchased and Current Moody C Fitch C
|
|||||||||||||
Security | |||||||||||||
Par value - security | 2,138 | 2,138 | |||||||||||
Book value - security | 473 | 473 | |||||||||||
Estimated fair value - security | 426 | 426 | |||||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | 1,004 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 661 | [3] | |||||||||||
Current Defaults and Deferrals | 84,000 | ||||||||||||
Trust preferred securities | ALESCO XV C1Mezzanine | Rating Of Moody A3 Fitch A- When Purchased and Current Moody C Fitch C
|
|||||||||||||
Security | |||||||||||||
Par value - security | 3,175 | 3,175 | |||||||||||
Book value - security | 30 | 30 | |||||||||||
Estimated fair value - security | 641 | 641 | |||||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | 586 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 2,559 | [3] | |||||||||||
Current Defaults and Deferrals | 249,100 | ||||||||||||
Trust preferred securities | ALESCO XVI C Mezzanine | Rating Of Moody A3 Fitch A- When Purchased and Current Moody C Fitch C
|
|||||||||||||
Security | |||||||||||||
Par value - security | 2,113 | 2,113 | |||||||||||
Book value - security | 117 | 117 | |||||||||||
Estimated fair value - security | 472 | 472 | |||||||||||
Other than temporarily impaired | |||||||||||||
Cumulative Other Comprehensive Loss | 816 | [3] | |||||||||||
Cumulative OTTI Related to Credit Loss | 1,180 | [3] | |||||||||||
Current Defaults and Deferrals | $ 86,150 | ||||||||||||
|
FAIR VALUE (Details Textuals) (Trust Preferred Securities Classified As Held-To-Maturity)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Minimum
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Minimum / Maximum Liquidity Premiums | 2.00% |
Minimum / Maximum Adjusted discount rates | 9.86% |
Maximum
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Minimum / Maximum Liquidity Premiums | 5.00% |
Minimum / Maximum Adjusted discount rates | 13.84% |
ACCOUNTING POLICIES (Detail Textuals)
|
9 Months Ended |
---|---|
Sep. 30, 2012
office
|
|
Virginia
|
|
Oranization And Significant Accounting Policies Line Items | |
Number of offices | 15 |
Maryland
|
|
Oranization And Significant Accounting Policies Line Items | |
Number of offices | 5 |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Detail Textuals) (Letter of Credit, USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Letter of Credit
|
||
Line of Credit Facility [Line Items] | ||
Letter of Credit outstanding | $ 10.2 | $ 6.5 |
LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging of recorded investment (Details 4) (Total Loans, USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | $ 19,648 | $ 3,528 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 7,445 | 1,783 | ||||||
Recorded Investment, 90 Days or More | 2 | 168 | ||||||
Recorded Investment, Total Past Due | 27,095 | 5,479 | ||||||
Recorded Investment, Nonaccrual Loans | 10,486 | 7,881 | ||||||
Recorded Investment, Loans Not Past Due | 501,188 | 479,496 | ||||||
Recorded investment, Total Loans | 538,769 | 492,856 | ||||||
Commercial real estate - owner occupied
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 9,198 | 847 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 403 | 303 | ||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 9,601 | 1,150 | ||||||
Recorded Investment, Nonaccrual Loans | ||||||||
Recorded Investment, Loans Not Past Due | 89,473 | 86,154 | ||||||
Recorded investment, Total Loans | 99,074 | 87,304 | ||||||
Commercial real estate - non-owner occupied
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 4,491 | [1] | 140 | [1] | ||||
Recorded Investment, 60 - 89 Days Past Due | 524 | [1] | [1] | |||||
Recorded Investment, 90 Days or More | [1] | 136 | [1] | |||||
Recorded Investment, Total Past Due | 5,015 | [1] | 276 | [1] | ||||
Recorded Investment, Nonaccrual Loans | 2,793 | [1] | 2,610 | [1] | ||||
Recorded Investment, Loans Not Past Due | 143,898 | [1] | 147,104 | [1] | ||||
Recorded investment, Total Loans | 151,706 | [1] | 149,990 | [1] | ||||
Construction and land development
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 108 | 290 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 1,425 | 39 | ||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 1,533 | 329 | ||||||
Recorded Investment, Nonaccrual Loans | 1,601 | 1,087 | ||||||
Recorded Investment, Loans Not Past Due | 58,257 | 41,032 | ||||||
Recorded investment, Total Loans | 61,391 | 42,448 | ||||||
Commercial loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 974 | 1,022 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 438 | 585 | ||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 1,412 | 1,607 | ||||||
Recorded Investment, Nonaccrual Loans | 4,610 | 2,772 | ||||||
Recorded Investment, Loans Not Past Due | 93,547 | 87,682 | ||||||
Recorded investment, Total Loans | 99,569 | 92,061 | ||||||
Residential 1-4 family
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 4,876 | 1,222 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 4,652 | 856 | ||||||
Recorded Investment, 90 Days or More | 32 | |||||||
Recorded Investment, Total Past Due | 9,528 | 2,110 | ||||||
Recorded Investment, Nonaccrual Loans | 1,482 | 1,412 | ||||||
Recorded Investment, Loans Not Past Due | 114,271 | 115,555 | ||||||
Recorded investment, Total Loans | 125,281 | 119,077 | ||||||
Other consumer loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 1 | 7 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 3 | |||||||
Recorded Investment, 90 Days or More | 2 | |||||||
Recorded Investment, Total Past Due | 6 | 7 | ||||||
Recorded Investment, Nonaccrual Loans | ||||||||
Recorded Investment, Loans Not Past Due | 1,742 | 1,969 | ||||||
Recorded investment, Total Loans | 1,748 | 1,976 | ||||||
Covered loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 5,848 | 274 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 188 | 319 | ||||||
Recorded Investment, 90 Days or More | 2 | 136 | ||||||
Recorded Investment, Total Past Due | 6,038 | 729 | ||||||
Recorded Investment, Nonaccrual Loans | 3,387 | 3,340 | ||||||
Recorded Investment, Loans Not Past Due | 67,169 | 78,519 | ||||||
Recorded investment, Total Loans | 76,594 | [2] | 82,588 | [2] | ||||
Covered loans | Commercial real estate - owner occupied
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 845 | |||||||
Recorded Investment, 60 - 89 Days Past Due | 303 | |||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 845 | 303 | ||||||
Recorded Investment, Nonaccrual Loans | ||||||||
Recorded Investment, Loans Not Past Due | 3,431 | 4,551 | ||||||
Recorded investment, Total Loans | 4,276 | 4,854 | ||||||
Covered loans | Commercial real estate - non-owner occupied
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 4,287 | [1] | [1] | |||||
Recorded Investment, 60 - 89 Days Past Due | [1] | [1] | ||||||
Recorded Investment, 90 Days or More | [1] | 136 | [1] | |||||
Recorded Investment, Total Past Due | 4,287 | [1] | 136 | [1] | ||||
Recorded Investment, Nonaccrual Loans | 2,168 | [1] | 1,985 | [1] | ||||
Recorded Investment, Loans Not Past Due | 6,131 | [1] | 9,751 | [1] | ||||
Recorded investment, Total Loans | 12,586 | [1] | 11,872 | [1] | ||||
Covered loans | Construction and land development
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 81 | |||||||
Recorded Investment, 60 - 89 Days Past Due | ||||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 81 | |||||||
Recorded Investment, Nonaccrual Loans | 57 | |||||||
Recorded Investment, Loans Not Past Due | 1,106 | 2,883 | ||||||
Recorded investment, Total Loans | 1,244 | 2,883 | ||||||
Covered loans | Commercial loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | ||||||||
Recorded Investment, 60 - 89 Days Past Due | ||||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | ||||||||
Recorded Investment, Nonaccrual Loans | ||||||||
Recorded Investment, Loans Not Past Due | 3,058 | 2,122 | ||||||
Recorded investment, Total Loans | 3,058 | 2,122 | ||||||
Covered loans | Residential 1-4 family
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 635 | 269 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 187 | 16 | ||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 822 | 285 | ||||||
Recorded Investment, Nonaccrual Loans | 1,162 | 1,355 | ||||||
Recorded Investment, Loans Not Past Due | 53,342 | 59,109 | ||||||
Recorded investment, Total Loans | 55,326 | 60,749 | ||||||
Covered loans | Other consumer loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 5 | |||||||
Recorded Investment, 60 - 89 Days Past Due | 1 | |||||||
Recorded Investment, 90 Days or More | 2 | |||||||
Recorded Investment, Total Past Due | 3 | 5 | ||||||
Recorded Investment, Nonaccrual Loans | ||||||||
Recorded Investment, Loans Not Past Due | 101 | 103 | ||||||
Recorded investment, Total Loans | 104 | 108 | ||||||
Non-covered Loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 13,800 | 3,254 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 7,257 | 1,464 | ||||||
Recorded Investment, 90 Days or More | 32 | |||||||
Recorded Investment, Total Past Due | 21,057 | 4,750 | ||||||
Recorded Investment, Nonaccrual Loans | 7,099 | 4,541 | ||||||
Recorded Investment, Loans Not Past Due | 434,019 | 400,977 | ||||||
Recorded investment, Total Loans | 462,175 | 410,268 | ||||||
Non-covered Loans | Commercial real estate - owner occupied
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 8,353 | 847 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 403 | |||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 8,756 | 847 | ||||||
Recorded Investment, Nonaccrual Loans | ||||||||
Recorded Investment, Loans Not Past Due | 86,042 | 81,603 | ||||||
Recorded investment, Total Loans | 94,798 | 82,450 | ||||||
Non-covered Loans | Commercial real estate - non-owner occupied
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 204 | [1] | 140 | [1] | ||||
Recorded Investment, 60 - 89 Days Past Due | 524 | [1] | [1] | |||||
Recorded Investment, 90 Days or More | [1] | [1] | ||||||
Recorded Investment, Total Past Due | 728 | [1] | 140 | [1] | ||||
Recorded Investment, Nonaccrual Loans | 625 | [1] | 625 | [1] | ||||
Recorded Investment, Loans Not Past Due | 137,767 | [1] | 137,353 | [1] | ||||
Recorded investment, Total Loans | 139,120 | [1] | 138,118 | [1] | ||||
Non-covered Loans | Construction and land development
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 27 | 290 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 1,425 | 39 | ||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 1,452 | 329 | ||||||
Recorded Investment, Nonaccrual Loans | 1,544 | 1,087 | ||||||
Recorded Investment, Loans Not Past Due | 57,151 | 38,149 | ||||||
Recorded investment, Total Loans | 60,147 | 39,565 | ||||||
Non-covered Loans | Commercial loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 974 | 1,022 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 438 | 585 | ||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 1,412 | 1,607 | ||||||
Recorded Investment, Nonaccrual Loans | 4,610 | 2,772 | ||||||
Recorded Investment, Loans Not Past Due | 90,489 | 85,560 | ||||||
Recorded investment, Total Loans | 96,511 | 89,939 | ||||||
Non-covered Loans | Residential 1-4 family
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 4,241 | 953 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 4,465 | 840 | ||||||
Recorded Investment, 90 Days or More | 32 | |||||||
Recorded Investment, Total Past Due | 8,706 | 1,825 | ||||||
Recorded Investment, Nonaccrual Loans | 320 | 57 | ||||||
Recorded Investment, Loans Not Past Due | 60,929 | 56,446 | ||||||
Recorded investment, Total Loans | 69,955 | 58,328 | ||||||
Non-covered Loans | Other consumer loans
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Recorded Investment, 30 to 59 Days Past Due | 1 | 2 | ||||||
Recorded Investment, 60 - 89 Days Past Due | 2 | |||||||
Recorded Investment, 90 Days or More | ||||||||
Recorded Investment, Total Past Due | 3 | 2 | ||||||
Recorded Investment, Nonaccrual Loans | ||||||||
Recorded Investment, Loans Not Past Due | 1,641 | 1,866 | ||||||
Recorded investment, Total Loans | $ 1,644 | $ 1,868 | ||||||
|
SECURITIES (Details Textuals 3) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2012
MMC Funding XVIII
|
Sep. 30, 2012
TPREF Funding II
|
Sep. 30, 2011
TPREF Funding II
|
Sep. 30, 2012
TRAP 2007-XII C1
|
Jun. 30, 2012
TRAP 2007-XII C1
|
|
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||||
OTTI charges related to credit | $ 2 | $ 1 | $ 43 | $ 479 | $ 235 |
EARNINGS PER SHARE - Summary (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||
Earnings Per Share [Abstract] | ||||||||
Basic EPS- Income (Numerator) | $ 1,208 | $ 1,409 | $ 5,266 | $ 4,146 | ||||
Effect of dilutive stock options and warrants- Income (Numerator) | ||||||||
Diluted EPS-Income (Numerator) | $ 1,208 | $ 1,409 | [1] | $ 5,266 | $ 4,146 | [1] | ||
Basic EPS- Weighted Average Shares (Denominator) | 11,590 | 11,590 | 11,590 | 11,590 | ||||
Effect of dilutive stock options and warrants- Weighted Average Shares (Denominator) | 7 | 1 | 4 | 2 | ||||
Diluted EPS- Weighted Average Shares (Denominator) | 11,597 | 11,591 | 11,594 | 11,592 | ||||
Basic EPS- Per Share Amount | $ 0.10 | $ 0.12 | $ 0.45 | $ 0.36 | ||||
Effect of dilutive stock options and warrants- Per Share Amount | ||||||||
Diluted EPS- Per Share Amount | $ 0.10 | $ 0.12 | $ 0.45 | $ 0.36 | ||||
|
CORRECTION OF ERRORS RELATED TO PURCHASE ACCOUNTING (Detail Textuals) (USD $)
|
12 Months Ended | |
---|---|---|
Dec. 31, 2009
|
Sep. 30, 2011
|
|
Business Acquisition [Line Items] | ||
Removal of gain | $ 11,200,000 | |
Reclassifications between covered loans, other assets and goodwil | 500,000 | |
Net present value of expected cash outflows | 586,000 | |
Recognize goodwill | $ 10,000 |
CORRECTION OF ERRORS RELATED TO PURCHASE ACCOUNTING - Impact on Consolidated Balance Sheets (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Dec. 31, 2010
|
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents: | ||||||||||||||||||
Cash and due from financial institutions | $ 4,229 | $ 2,432 | ||||||||||||||||
Interest-bearing deposits in other financial institutions | 18,059 | 2,603 | ||||||||||||||||
Total cash and cash equivalents | 22,288 | 5,035 | 7,057 | [1] | 9,745 | [1] | ||||||||||||
Securities available for sale, at fair value | 49 | 9,905 | ||||||||||||||||
Securities held to maturity, at amortized cost (fair value of $38,097) | 80,496 | 35,075 | ||||||||||||||||
Total loans | 537,769 | 491,768 | ||||||||||||||||
Less allowance for loan losses | (6,911) | (6,295) | ||||||||||||||||
Net loans | 530,858 | 485,473 | ||||||||||||||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 6,190 | 6,653 | ||||||||||||||||
Bank premises and equipment, net | 6,476 | 6,350 | ||||||||||||||||
Goodwill | 9,160 | 9,160 | ||||||||||||||||
Core deposit intangibles, net | 1,480 | 1,995 | ||||||||||||||||
FDIC indemnification asset | 7,006 | 7,537 | ||||||||||||||||
Bank-owned life insurance | 17,633 | 17,575 | ||||||||||||||||
Other real estate owned | 13,452 | 14,256 | ||||||||||||||||
Deferred tax assets, net | 6,153 | 6,255 | ||||||||||||||||
Other assets | 7,021 | 6,104 | ||||||||||||||||
Total assets | 708,262 | 611,373 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
Noninterest-bearing demand deposits | 43,096 | 32,582 | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||
NOW accounts | 20,520 | 17,497 | ||||||||||||||||
Money market accounts | 167,370 | 148,959 | ||||||||||||||||
Savings accounts | 8,997 | 6,273 | ||||||||||||||||
Time deposits | 297,268 | 255,784 | ||||||||||||||||
Total interest-bearing deposits | 494,155 | 428,513 | ||||||||||||||||
Total deposits | 537,251 | 461,095 | ||||||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | 32,713 | 17,736 | ||||||||||||||||
Federal Home Loan Bank (FHLB) advances | 30,250 | 30,000 | ||||||||||||||||
Other liabilities | 4,025 | 3,491 | ||||||||||||||||
Total liabilities | 604,239 | 512,322 | ||||||||||||||||
Commitments and contingencies (See Note 5) | ||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||
Preferred stock, $.01 par value. Authorized 5,000,000 shares; no shares issued and outstanding | ||||||||||||||||||
Common stock, $.01 par value. Authorized 45,000,000 shares; issued and outstanding, 11,590,212 shares at September 30, 2011 | 116 | 116 | ||||||||||||||||
Additional paid in capital | 96,791 | 96,645 | ||||||||||||||||
Retained earnings | 10,100 | 5,472 | ||||||||||||||||
Accumulated other comprehensive loss | (2,984) | (3,182) | ||||||||||||||||
Total stockholders' equity | 104,023 | 99,051 | ||||||||||||||||
Total liabilities and stockholders' equity | 708,262 | 611,373 | ||||||||||||||||
Covered loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | 76,600 | 82,588 | ||||||||||||||||
Non-covered Loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | 461,169 | 409,180 | ||||||||||||||||
As Previously Reported
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Cash and due from financial institutions | 2,432 | |||||||||||||||||
Interest-bearing deposits in other financial institutions | 4,625 | |||||||||||||||||
Total cash and cash equivalents | 7,057 | 9,745 | ||||||||||||||||
Securities available for sale, at fair value | 10,438 | |||||||||||||||||
Securities held to maturity, at amortized cost (fair value of $38,097) | 38,354 | |||||||||||||||||
Total loans | 476,892 | |||||||||||||||||
Less allowance for loan losses | (6,087) | |||||||||||||||||
Net loans | 470,805 | |||||||||||||||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 7,356 | |||||||||||||||||
Bank premises and equipment, net | 4,700 | |||||||||||||||||
Goodwill | 8,713 | |||||||||||||||||
Core deposit intangibles, net | 2,225 | |||||||||||||||||
FDIC indemnification asset | 18,226 | |||||||||||||||||
Bank-owned life insurance | 14,435 | |||||||||||||||||
Other real estate owned | 13,097 | |||||||||||||||||
Deferred tax assets, net | 4,440 | |||||||||||||||||
Other assets | 5,532 | |||||||||||||||||
Total assets | 605,378 | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
Noninterest-bearing demand deposits | 31,791 | |||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||
NOW accounts | 16,310 | |||||||||||||||||
Money market accounts | 140,781 | |||||||||||||||||
Savings accounts | 6,335 | |||||||||||||||||
Time deposits | 212,765 | |||||||||||||||||
Total interest-bearing deposits | 376,191 | |||||||||||||||||
Total deposits | 407,982 | |||||||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | 19,452 | |||||||||||||||||
Federal Home Loan Bank (FHLB) advances | 72,500 | |||||||||||||||||
Other liabilities | 2,377 | |||||||||||||||||
Total liabilities | 502,311 | |||||||||||||||||
Commitments and contingencies (See Note 5) | ||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||
Preferred stock, $.01 par value. Authorized 5,000,000 shares; no shares issued and outstanding | ||||||||||||||||||
Common stock, $.01 par value. Authorized 45,000,000 shares; issued and outstanding, 11,590,212 shares at September 30, 2011 | 116 | |||||||||||||||||
Additional paid in capital | 96,598 | |||||||||||||||||
Retained earnings | 9,588 | |||||||||||||||||
Accumulated other comprehensive loss | (3,235) | |||||||||||||||||
Total stockholders' equity | 103,067 | 99,114 | ||||||||||||||||
Total liabilities and stockholders' equity | 605,378 | |||||||||||||||||
As Previously Reported | Covered loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | 80,398 | |||||||||||||||||
As Previously Reported | Non-covered Loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | 396,494 | |||||||||||||||||
As Restated
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Cash and due from financial institutions | 2,432 | |||||||||||||||||
Interest-bearing deposits in other financial institutions | 4,625 | |||||||||||||||||
Total cash and cash equivalents | 7,057 | 9,745 | ||||||||||||||||
Securities available for sale, at fair value | 10,438 | |||||||||||||||||
Securities held to maturity, at amortized cost (fair value of $38,097) | 38,354 | |||||||||||||||||
Total loans | 481,061 | |||||||||||||||||
Less allowance for loan losses | (6,087) | |||||||||||||||||
Net loans | 474,974 | |||||||||||||||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 7,356 | |||||||||||||||||
Bank premises and equipment, net | 4,700 | |||||||||||||||||
Goodwill | 8,723 | |||||||||||||||||
Core deposit intangibles, net | 2,225 | |||||||||||||||||
FDIC indemnification asset | 7,580 | |||||||||||||||||
Bank-owned life insurance | 14,435 | |||||||||||||||||
Other real estate owned | 13,097 | |||||||||||||||||
Deferred tax assets, net | 6,963 | |||||||||||||||||
Other assets | 5,522 | |||||||||||||||||
Total assets | 601,424 | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
Noninterest-bearing demand deposits | 31,791 | |||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||
NOW accounts | 16,310 | |||||||||||||||||
Money market accounts | 140,781 | |||||||||||||||||
Savings accounts | 6,335 | |||||||||||||||||
Time deposits | 212,765 | |||||||||||||||||
Total interest-bearing deposits | 376,191 | |||||||||||||||||
Total deposits | 407,982 | |||||||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | 19,452 | |||||||||||||||||
Federal Home Loan Bank (FHLB) advances | 72,500 | |||||||||||||||||
Other liabilities | 2,794 | |||||||||||||||||
Total liabilities | 502,728 | |||||||||||||||||
Commitments and contingencies (See Note 5) | ||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||
Preferred stock, $.01 par value. Authorized 5,000,000 shares; no shares issued and outstanding | ||||||||||||||||||
Common stock, $.01 par value. Authorized 45,000,000 shares; issued and outstanding, 11,590,212 shares at September 30, 2011 | 116 | |||||||||||||||||
Additional paid in capital | 96,598 | |||||||||||||||||
Retained earnings | 5,217 | |||||||||||||||||
Accumulated other comprehensive loss | (3,235) | |||||||||||||||||
Total stockholders' equity | 98,696 | 94,331 | ||||||||||||||||
Total liabilities and stockholders' equity | 601,424 | |||||||||||||||||
As Restated | Covered loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | 84,567 | |||||||||||||||||
As Restated | Non-covered Loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | 396,494 | |||||||||||||||||
Adjustment
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Cash and due from financial institutions | ||||||||||||||||||
Interest-bearing deposits in other financial institutions | ||||||||||||||||||
Total cash and cash equivalents | ||||||||||||||||||
Securities available for sale, at fair value | ||||||||||||||||||
Securities held to maturity, at amortized cost (fair value of $38,097) | ||||||||||||||||||
Total loans | 4,169 | |||||||||||||||||
Less allowance for loan losses | ||||||||||||||||||
Net loans | 4,169 | |||||||||||||||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | ||||||||||||||||||
Bank premises and equipment, net | ||||||||||||||||||
Goodwill | 10 | [2] | ||||||||||||||||
Core deposit intangibles, net | ||||||||||||||||||
FDIC indemnification asset | (10,646) | [3] | ||||||||||||||||
Bank-owned life insurance | ||||||||||||||||||
Other real estate owned | ||||||||||||||||||
Deferred tax assets, net | 2,523 | [4] | ||||||||||||||||
Other assets | (10) | [4],[5] | ||||||||||||||||
Total assets | (3,954) | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
Noninterest-bearing demand deposits | ||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||
NOW accounts | ||||||||||||||||||
Money market accounts | ||||||||||||||||||
Savings accounts | ||||||||||||||||||
Time deposits | ||||||||||||||||||
Total interest-bearing deposits | ||||||||||||||||||
Total deposits | ||||||||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | ||||||||||||||||||
Federal Home Loan Bank (FHLB) advances | ||||||||||||||||||
Other liabilities | 417 | [6] | ||||||||||||||||
Total liabilities | 417 | |||||||||||||||||
Commitments and contingencies (See Note 5) | ||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||
Preferred stock, $.01 par value. Authorized 5,000,000 shares; no shares issued and outstanding | ||||||||||||||||||
Common stock, $.01 par value. Authorized 45,000,000 shares; issued and outstanding, 11,590,212 shares at September 30, 2011 | ||||||||||||||||||
Additional paid in capital | ||||||||||||||||||
Retained earnings | (4,371) | |||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||||
Total stockholders' equity | (4,371) | (4,783) | ||||||||||||||||
Total liabilities and stockholders' equity | (3,954) | |||||||||||||||||
Adjustment | Covered loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | 4,169 | [5] | ||||||||||||||||
Adjustment | Non-covered Loans
|
||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||
Total loans | ||||||||||||||||||
|
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Textuals 1) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Mortgage loans on real estate: | ||
Charge off on Recorded investment | $ 5.9 | $ 5.6 |
SBA Guaranteed
|
||
Mortgage loans on real estate: | ||
SBA guarantees | $ 2.6 | $ 2.5 |
STOCK- BASED COMPENSATION
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION |
In 2004, the Board of Directors adopted a stock option plan that authorized the reservation of up to 302,500 shares of common stock and provided for the granting of stock options to certain directors, officers and employees. As of September 30, 2012, options to purchase an aggregate of 302,500 shares of common stock were outstanding and no shares remained available for issuance under this plan. The 2010 Stock Awards and Incentive Plan was approved by the Board of Directors in January 2010 and approved by the stockholders at the Annual Meeting in April 2010. The 2010 plan authorized the reservation of 700,000 shares of common stock for the granting of stock awards. The options granted to officers and employees are incentive stock options and the options granted to non-employee directors are non-qualified stock options. The purpose of the plan is to afford key employees an incentive to remain in the employ of Southern National and to assist in the attracting and retaining of non-employee directors by affording them an opportunity to share in Southern National’s future success. Under the plan, the option’s exercise price cannot be less than the fair market value of the stock on the grant date. The maximum term of the options is ten years and options granted may be subject to a graded vesting schedule. SNBV granted 19,000 options during the first nine months of 2012. The fair value of each option granted is estimated on the date of grant using the Black-Scholes options-pricing model. The following weighted-average assumptions were used to value options granted in the nine months ended September 30, 2012:
The risk-free interest rate was developed using the U. S. Treasury yield curve for periods equal to the expected life of the options on the grant date. An increase in the risk-free interest rate will increase stock compensation expense on future option grants. The dividend yield has a de minimis impact on the fair value of the awards given the recent iniation of the dividend and the amount. For the three and nine months ended September 30, 2012, stock-based compensation expense was $49 thousand and $146 thousand, respectively, compared to $47 thousand and $120 thousand for the same periods last year. As of September 30, 2012, unrecognized compensation expense associated with the stock options was $518 thousand, which is expected to be recognized over a weighted average period of 3.2 years. A summary of the activity in the stock option plan during the nine months ended September 30, 2012 follows (dollars in thousands):
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CORRECTION OF ERRORS RELATED TO PURCHASE ACCOUNTING - Impact on Consolidated Statements of Income and Comprehensive Income (Details 1) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||||||||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Interest and dividend income : | ||||||||||||||||
Interest and fees on loans | $ 9,008 | $ 8,165 | [1] | $ 26,387 | $ 23,255 | [1] | ||||||||||
Interest and dividends on taxable securities | 490 | 457 | [1] | 1,401 | 1,495 | [1] | ||||||||||
Interest and dividends on other earning assets | 102 | 66 | [1] | 247 | 169 | [1] | ||||||||||
Total interest and dividend income | 9,600 | 8,688 | [1] | 28,035 | 24,919 | [1] | ||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 1,304 | 1,217 | [1] | 3,803 | 3,744 | [1] | ||||||||||
Interest on borrowings | 165 | 272 | [1] | 628 | 857 | [1] | ||||||||||
Total interest expense | 1,469 | 1,489 | [1] | 4,431 | 4,601 | [1] | ||||||||||
Net interest income | 8,131 | 7,199 | [1] | 23,604 | 20,318 | [1] | ||||||||||
Provision for loan losses | 1,830 | 1,550 | [1] | 4,605 | 5,140 | [1] | ||||||||||
Net interest income after provision for loan losses | 6,301 | 5,649 | [1] | 18,999 | 15,178 | [1] | ||||||||||
Noninterest income: | ||||||||||||||||
Account maintenance and deposit service fees | 222 | 218 | [1] | 624 | 636 | [1] | ||||||||||
Income from bank-owned life insurance | 148 | 129 | [1] | 649 | 1,196 | [1] | ||||||||||
Net loss on other assets | 24 | [1] | (2,376) | (147) | [1] | |||||||||||
Total other-than-temporary impairment losses (OTTI) | (480) | (43) | [1] | (721) | (113) | [1] | ||||||||||
Portion of OTTI recognized in other comprehensive income (before taxes) | [1] | (4) | ||||||||||||||
Net credit related OTTI recognized in earnings | (480) | (43) | [1] | (717) | (113) | [1] | ||||||||||
Other | 63 | 62 | [1] | 198 | 151 | [1] | ||||||||||
Total noninterest income (loss) | 264 | 366 | [1] | 2,807 | 1,723 | [1] | ||||||||||
Noninterest expenses: | ||||||||||||||||
Salaries and benefits | 2,073 | 1,759 | [1] | 5,868 | 5,066 | [1] | ||||||||||
Occupancy expenses | 753 | 573 | [1] | 2,040 | 1,667 | [1] | ||||||||||
Furniture and equipment expenses | 149 | 140 | [1] | 448 | 406 | [1] | ||||||||||
Amortization of core deposit intangible | 236 | 230 | [1] | 694 | 690 | [1] | ||||||||||
Virginia franchise tax expense | 145 | 171 | [1] | 436 | 514 | [1] | ||||||||||
FDIC assessment | 146 | 125 | [1] | 417 | 397 | [1] | ||||||||||
Data processing expense | 175 | 126 | [1] | 474 | 400 | [1] | ||||||||||
Telephone and communication expense | 183 | 101 | [1] | 418 | 289 | [1] | ||||||||||
Change in FDIC indemnification asset | 242 | (13) | [1] | 481 | (85) | [1] | ||||||||||
Other operating expenses | 665 | 702 | [1] | 2,417 | 1,809 | [1] | ||||||||||
Total noninterest expenses | 4,778 | 3,914 | [1] | 14,053 | 11,153 | [1] | ||||||||||
Income before income taxes | 1,787 | 2,101 | [1] | 7,753 | 5,748 | [1] | ||||||||||
Income tax expense | 579 | 692 | [1] | 2,487 | 1,602 | [1] | ||||||||||
Net income | 1,208 | 1,409 | [1] | 5,266 | 4,146 | [1] | ||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gain on available for sale securities | (107) | (30) | [1] | (26) | 167 | [1] | ||||||||||
Non-credit component of other-than-temporary impairment on held-to-maturity securities | 475 | (70) | [1] | 676 | 26 | [1] | ||||||||||
Accretion of amounts previously recorded upon transfer to held-to-maturity from available-for-sale | (17) | (27) | [1] | (77) | (44) | [1] | ||||||||||
Net unrealized gain (loss) | 64 | (127) | [1] | 299 | 149 | [1] | ||||||||||
Tax effect | 21 | (44) | [1] | 101 | 50 | [1] | ||||||||||
Other comprehensive income (loss): | 43 | (83) | [1] | 198 | 99 | [1] | ||||||||||
Comprehensive income | 1,251 | 1,326 | [1] | 5,464 | 4,245 | [1] | ||||||||||
Earnings per share, basic and diluted | $ 0.10 | $ 0.12 | [1] | $ 0.45 | $ 0.36 | [1] | ||||||||||
As Previously Reported
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Interest and dividend income : | ||||||||||||||||
Interest and fees on loans | 7,871 | 22,202 | ||||||||||||||
Interest and dividends on taxable securities | 457 | 1,495 | ||||||||||||||
Interest and dividends on other earning assets | 66 | 169 | ||||||||||||||
Total interest and dividend income | 8,394 | 23,866 | ||||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 1,217 | 3,744 | ||||||||||||||
Interest on borrowings | 272 | 857 | ||||||||||||||
Total interest expense | 1,489 | 4,601 | ||||||||||||||
Net interest income | 6,905 | 19,265 | ||||||||||||||
Provision for loan losses | 1,550 | 5,140 | ||||||||||||||
Net interest income after provision for loan losses | 5,355 | 14,125 | ||||||||||||||
Noninterest income: | ||||||||||||||||
Account maintenance and deposit service fees | 218 | 636 | ||||||||||||||
Income from bank-owned life insurance | 129 | 396 | ||||||||||||||
Net loss on other assets | (147) | |||||||||||||||
Total other-than-temporary impairment losses (OTTI) | (43) | (113) | ||||||||||||||
Portion of OTTI recognized in other comprehensive income (before taxes) | ||||||||||||||||
Net credit related OTTI recognized in earnings | (43) | (113) | ||||||||||||||
Other | 62 | 151 | ||||||||||||||
Total noninterest income (loss) | 366 | 1,723 | ||||||||||||||
Noninterest expenses: | ||||||||||||||||
Salaries and benefits | 1,759 | 5,066 | ||||||||||||||
Occupancy expenses | 573 | 1,667 | ||||||||||||||
Furniture and equipment expenses | 140 | 406 | ||||||||||||||
Amortization of core deposit intangible | 230 | 690 | ||||||||||||||
Virginia franchise tax expense | 171 | 514 | ||||||||||||||
FDIC assessment | 125 | 397 | ||||||||||||||
Data processing expense | 126 | 400 | ||||||||||||||
Telephone and communication expense | 101 | 289 | ||||||||||||||
Change in FDIC indemnification asset | (140) | (490) | ||||||||||||||
Other operating expenses | 695 | 1,788 | ||||||||||||||
Total noninterest expenses | 3,780 | 10,727 | ||||||||||||||
Income before income taxes | 1,941 | 5,121 | ||||||||||||||
Income tax expense | 638 | 1,387 | ||||||||||||||
Net income | 1,303 | 3,734 | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gain on available for sale securities | (30) | 167 | ||||||||||||||
Realized amount on securities sold, net | ||||||||||||||||
Non-credit component of other-than-temporary impairment on held-to-maturity securities | (70) | 26 | ||||||||||||||
Accretion of amounts previously recorded upon transfer to held-to-maturity from available-for-sale | (27) | (44) | ||||||||||||||
Net unrealized gain (loss) | (127) | 149 | ||||||||||||||
Tax effect | (44) | 50 | ||||||||||||||
Other comprehensive income (loss): | (83) | 99 | ||||||||||||||
Comprehensive income | 1,220 | 3,833 | ||||||||||||||
Earnings per share, basic and diluted | $ 0.11 | $ 0.32 | ||||||||||||||
As Restated
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Interest and dividend income : | ||||||||||||||||
Interest and fees on loans | 8,165 | 23,255 | ||||||||||||||
Interest and dividends on taxable securities | 457 | 1,495 | ||||||||||||||
Interest and dividends on other earning assets | 66 | 169 | ||||||||||||||
Total interest and dividend income | 8,688 | 24,919 | ||||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 1,217 | 3,744 | ||||||||||||||
Interest on borrowings | 272 | 857 | ||||||||||||||
Total interest expense | 1,489 | 4,601 | ||||||||||||||
Net interest income | 7,199 | 20,318 | ||||||||||||||
Provision for loan losses | 1,550 | 5,140 | ||||||||||||||
Net interest income after provision for loan losses | 5,649 | 15,178 | ||||||||||||||
Noninterest income: | ||||||||||||||||
Account maintenance and deposit service fees | 218 | 636 | ||||||||||||||
Income from bank-owned life insurance | 129 | 396 | ||||||||||||||
Net loss on other assets | (147) | |||||||||||||||
Total other-than-temporary impairment losses (OTTI) | (43) | (113) | ||||||||||||||
Portion of OTTI recognized in other comprehensive income (before taxes) | ||||||||||||||||
Net credit related OTTI recognized in earnings | (43) | (113) | ||||||||||||||
Other | 62 | 151 | ||||||||||||||
Total noninterest income (loss) | 366 | 1,723 | ||||||||||||||
Noninterest expenses: | ||||||||||||||||
Salaries and benefits | 1,759 | 5,066 | ||||||||||||||
Occupancy expenses | 573 | 1,667 | ||||||||||||||
Furniture and equipment expenses | 140 | 406 | ||||||||||||||
Amortization of core deposit intangible | 230 | 690 | ||||||||||||||
Virginia franchise tax expense | 171 | 514 | ||||||||||||||
FDIC assessment | 125 | 397 | ||||||||||||||
Data processing expense | 126 | 400 | ||||||||||||||
Telephone and communication expense | 101 | 289 | ||||||||||||||
Change in FDIC indemnification asset | (13) | (85) | ||||||||||||||
Other operating expenses | 702 | 1,809 | ||||||||||||||
Total noninterest expenses | 3,914 | 11,153 | ||||||||||||||
Income before income taxes | 2,101 | 5,748 | ||||||||||||||
Income tax expense | 692 | 1,602 | ||||||||||||||
Net income | 1,409 | 4,146 | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gain on available for sale securities | (30) | 167 | ||||||||||||||
Realized amount on securities sold, net | ||||||||||||||||
Non-credit component of other-than-temporary impairment on held-to-maturity securities | (70) | 26 | ||||||||||||||
Accretion of amounts previously recorded upon transfer to held-to-maturity from available-for-sale | (27) | (44) | ||||||||||||||
Net unrealized gain (loss) | (127) | 149 | ||||||||||||||
Tax effect | (44) | 50 | ||||||||||||||
Other comprehensive income (loss): | (83) | 99 | ||||||||||||||
Comprehensive income | 1,326 | 4,245 | ||||||||||||||
Earnings per share, basic and diluted | $ 0.12 | $ 0.36 | ||||||||||||||
Adjustment
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Interest and dividend income : | ||||||||||||||||
Interest and fees on loans | 294 | [2] | 1,053 | [2] | ||||||||||||
Interest and dividends on taxable securities | ||||||||||||||||
Interest and dividends on other earning assets | ||||||||||||||||
Total interest and dividend income | 294 | 1,053 | ||||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | ||||||||||||||||
Interest on borrowings | ||||||||||||||||
Total interest expense | ||||||||||||||||
Net interest income | 294 | 1,053 | ||||||||||||||
Provision for loan losses | ||||||||||||||||
Net interest income after provision for loan losses | 294 | 1,053 | ||||||||||||||
Noninterest income: | ||||||||||||||||
Account maintenance and deposit service fees | ||||||||||||||||
Income from bank-owned life insurance | ||||||||||||||||
Net loss on other assets | ||||||||||||||||
Total other-than-temporary impairment losses (OTTI) | ||||||||||||||||
Portion of OTTI recognized in other comprehensive income (before taxes) | ||||||||||||||||
Net credit related OTTI recognized in earnings | ||||||||||||||||
Other | ||||||||||||||||
Total noninterest income (loss) | ||||||||||||||||
Noninterest expenses: | ||||||||||||||||
Salaries and benefits | ||||||||||||||||
Occupancy expenses | ||||||||||||||||
Furniture and equipment expenses | ||||||||||||||||
Amortization of core deposit intangible | ||||||||||||||||
Virginia franchise tax expense | ||||||||||||||||
FDIC assessment | ||||||||||||||||
Data processing expense | ||||||||||||||||
Telephone and communication expense | ||||||||||||||||
Change in FDIC indemnification asset | 127 | [3] | 405 | [3] | ||||||||||||
Other operating expenses | 7 | [4] | 21 | [4] | ||||||||||||
Total noninterest expenses | 134 | 426 | ||||||||||||||
Income before income taxes | 160 | 627 | ||||||||||||||
Income tax expense | 54 | [5] | 215 | [5] | ||||||||||||
Net income | 106 | 412 | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gain on available for sale securities | ||||||||||||||||
Realized amount on securities sold, net | ||||||||||||||||
Non-credit component of other-than-temporary impairment on held-to-maturity securities | ||||||||||||||||
Accretion of amounts previously recorded upon transfer to held-to-maturity from available-for-sale | ||||||||||||||||
Net unrealized gain (loss) | ||||||||||||||||
Tax effect | ||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Comprehensive income | $ 106 | $ 412 | ||||||||||||||
Earnings per share, basic and diluted | $ 0.01 | $ 0.04 | ||||||||||||||
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