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CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Interest Income        
Interest and fees on loans $ 12,064 $ 12,098 $ 23,778 $ 23,989
Interest on investment securities held to maturity:        
Taxable    376    811
Tax-exempt    46    112
Interest on securities available for sale:        
Taxable 1,085 1,394 2,362 3,011
Tax-exempt 195 156 392 321
Interest on loans held for sale 50 18 246 41
Interest-earning deposits 66 14 114 31
Total interest income 13,460 14,102 26,892 28,316
INTEREST EXPENSE        
Interest on savings and interest-bearing deposit accounts 328 360 635 806
Interest on certificates of deposit over $100,000 212 222 427 449
Interest on other time deposits 274 341 559 710
Interest on borrowed funds 92 168 184 340
Interest on capital lease obligation 106 108 212 217
Total interest expense 1,012 1,199 2,017 2,522
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 12,448 12,903 24,875 25,794
Provision for loan losses 500 1,500 1,350 3,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 11,948 11,403 23,525 22,794
OTHER INCOME        
Trust department income 3,628 3,259 6,996 6,435
Service charges and fees 688 702 1,364 1,379
Bank owned life insurance 276 264 548 528
Securities gains, net (includes $238 thousand for the three months ended June 30, 2013, $107 thousand for the three months ended June 30, 2012; $527 thousand for the six months ended June 30, 2013 and $497 thousand for the six months ended June 30, 2012 of net gains reclassified from accumulated other comprehensive income) 238 107 527 497
Gain on loans held for sale at fair value 391 279 861 467
Gain on loans held for sale at lower of cost or fair value       522   
Other income/(loss) 15 60 22 88
Total other income 5,236 4,671 10,840 9,394
OPERATING EXPENSES        
Salaries and employee benefits 7,935 6,408 15,014 12,521
Premises and equipment 2,338 2,413 4,642 4,744
Other operating expenses 3,806 2,883 6,716 5,519
Total operating expenses 14,079 11,704 26,372 22,784
Income tax expense (includes $84 thousand for the three months ended June 30, 2013, $40 thousand for the three months ended June 30, 2012; $204 thousand for the six months ended June 30, 2013 and $190 thousand for the six months ended June 30, 2012 of income tax expense from reclassification items) 3,105 4,370 7,993 9,404
Income tax expense 1,096 1,647 3,091 3,598
NET INCOME 2,009 2,723 4,902 5,806
Dividends on preferred stock and accretion          474
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 2,009 $ 2,723 $ 4,902 $ 5,332
EARNINGS PER COMMON SHARE        
Basic $ 0.23 $ 0.31 $ 0.55 $ 0.61
Diluted $ 0.22 $ 0.31 $ 0.55 $ 0.61
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING        
Basic 8,909,170 8,775,111 8,889,971 8,773,188
Diluted 8,955,384 8,813,162 8,942,267 8,800,469