þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2012
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Texas
(State or other jurisdiction of
incorporation or organization)
|
76-0579161
(I.R.S. Employer
Identification No.)
|
Large Accelerated Filer £
|
Accelerated Filer £
|
Non-accelerated Filer £ (Do not check if a smaller reporting company)
|
Smaller Reporting Company R
|
September 30,
2012
|
December 31,
2011
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
21,998
|
$
|
28,798
|
||||
Federal funds sold and other short-term investments
|
152,913
|
164,811
|
||||||
Total cash and cash equivalents
|
174,911
|
193,609
|
||||||
Securities available-for-sale, at fair value
|
133,140
|
121,633
|
||||||
Securities available-for-sale pledged with creditors’ right to repledge, at fair value
|
45,142
|
50,756
|
||||||
Total securities available-for-sale
|
178,282
|
172,389
|
||||||
Securities held-to-maturity (fair value $4,772 and $4,536 at September 30, 2012 and December 31, 2011, respectively)
|
4,046
|
4,046
|
||||||
Other investments
|
5,774
|
6,484
|
||||||
Loans, net of allowance for loan losses of $25,542 and $28,321 at September 30, 2012 and December 31, 2011, respectively
|
1,071,313
|
1,015,095
|
||||||
Loans, held-for-sale
|
–
|
1,200
|
||||||
Accrued interest receivable
|
3,938
|
4,327
|
||||||
Premises and equipment, net
|
4,195
|
4,697
|
||||||
Goodwill
|
14,327
|
14,327
|
||||||
Deferred tax asset, net
|
13,902
|
14,995
|
||||||
Customers' liability on acceptances
|
6,051
|
5,152
|
||||||
Foreclosed assets, net
|
7,915
|
19,018
|
||||||
Cash value of bank owned life insurance
|
32,456
|
31,427
|
||||||
Prepaid FDIC assessment
|
3,902
|
5,204
|
||||||
Other assets
|
5,076
|
2,561
|
||||||
Total assets
|
$
|
1,526,088
|
$
|
1,494,531
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
289,979
|
$
|
259,397
|
||||
Interest-bearing
|
975,078
|
992,178
|
||||||
Total deposits
|
1,265,057
|
1,251,575
|
||||||
Junior subordinated debentures
|
36,083
|
36,083
|
||||||
Other borrowings
|
26,000
|
26,315
|
||||||
Accrued interest payable
|
258
|
310
|
||||||
Acceptances outstanding
|
6,051
|
5,152
|
||||||
Other liabilities
|
18,085
|
9,913
|
||||||
Total liabilities
|
1,351,534
|
1,329,348
|
||||||
Commitments and contingencies
|
–
|
–
|
||||||
Shareholders' equity:
|
||||||||
Preferred stock, $1.00 par value, 2,000,000 shares authorized; no shares and 45,000 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively
|
–
|
45,003
|
||||||
Common stock, $1.00 par value, 50,000,000 shares authorized; 18,766,765 and 13,340,815 shares issued and 18,749,912 and 13,340,815 outstanding at September 30, 2012 and December 31, 2011, respectively
|
18,767
|
13,341
|
||||||
Additional paid-in-capital
|
74,976
|
33,816
|
||||||
Retained earnings
|
80,033
|
73,188
|
||||||
Accumulated other comprehensive income (loss)
|
923
|
(165
|
)
|
|||||
Treasury stock, at cost, 16,853 and no shares at September 30, 2012 and December 31, 2011, respectively
|
(145
|
)
|
–
|
|||||
Total shareholders' equity
|
174,554
|
165,183
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,526,088
|
$
|
1,494,531
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans
|
$
|
14,593
|
$
|
15,364
|
$
|
44,346
|
$
|
46,696
|
||||||||
Securities:
|
||||||||||||||||
Taxable
|
1,020
|
1,025
|
3,051
|
3,413
|
||||||||||||
Tax-exempt
|
145
|
99
|
407
|
296
|
||||||||||||
Other investments
|
42
|
41
|
129
|
125
|
||||||||||||
Federal funds sold and other short-term investments
|
229
|
239
|
675
|
426
|
||||||||||||
Total interest income
|
16,029
|
16,768
|
48,608
|
50,956
|
||||||||||||
Interest expense:
|
||||||||||||||||
Time deposits
|
1,288
|
1,857
|
4,194
|
6,057
|
||||||||||||
Demand and savings deposits
|
508
|
800
|
1,729
|
2,647
|
||||||||||||
Junior subordinated debentures
|
338
|
327
|
1,007
|
976
|
||||||||||||
Subordinated debentures and other borrowings
|
247
|
259
|
741
|
803
|
||||||||||||
Total interest expense
|
2,381
|
3,243
|
7,671
|
10,483
|
||||||||||||
Net interest income
|
13,648
|
13,525
|
40,937
|
40,473
|
||||||||||||
Provision for loan losses
|
(300
|
)
|
875
|
300
|
2,450
|
|||||||||||
Net interest income after provision for loan losses
|
13,948
|
12,650
|
40,637
|
38,023
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Service fees
|
1,099
|
1,124
|
3,347
|
3,214
|
||||||||||||
Loan-related fees
|
139
|
89
|
326
|
268
|
||||||||||||
Letters of credit commissions and fees
|
197
|
143
|
584
|
492
|
||||||||||||
Gain on securities, net
|
24
|
203
|
|
108
|
129
|
|
||||||||||
Total other-than-temporary impairments (“OTTI”) on securities
|
(14
|
)
|
(32
|
)
|
(101
|
)
|
(215
|
)
|
||||||||
Less: Noncredit portion of “OTTI”
|
(7
|
)
|
(2
|
)
|
(17
|
)
|
(20
|
)
|
||||||||
Net impairments on securities
|
(7
|
)
|
(30
|
)
|
(84
|
)
|
(195
|
)
|
||||||||
Other noninterest income
|
420
|
287
|
1,154
|
1,138
|
||||||||||||
Total noninterest income
|
1,872
|
1,816
|
5,435
|
5,046
|
||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
6,016
|
5,214
|
17,934
|
15,702
|
||||||||||||
Occupancy and equipment
|
1,792
|
1,896
|
5,224
|
5,545
|
||||||||||||
Foreclosed assets, net
|
552
|
1,222
|
1,915
|
2,741
|
||||||||||||
FDIC assessment
|
480
|
632
|
1,362
|
2,016
|
||||||||||||
Other noninterest expense
|
2,689
|
2,471
|
7,339
|
7,217
|
||||||||||||
Total noninterest expense
|
11,529
|
11,435
|
33,774
|
33,221
|
||||||||||||
Income before provision for income taxes
|
4,291
|
3,031
|
12,298
|
9,848
|
||||||||||||
Provision for income taxes
|
1,410
|
762
|
4,023
|
3,090
|
||||||||||||
Net income
|
$
|
2,881
|
$
|
2,269
|
$
|
8,275
|
$
|
6,758
|
||||||||
Dividends and discount – preferred stock
|
(20
|
)
|
(601
|
)
|
(1,429
|
)
|
(1,811
|
)
|
||||||||
Adjustment from repurchase of preferred stock
|
(149
|
)
|
—
|
557
|
—
|
|||||||||||
Net income available to common shareholders
|
$
|
2,712
|
$
|
1,668
|
$
|
7,403
|
$
|
4,947
|
||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
0.15
|
$
|
0.13
|
$
|
0.47
|
$
|
0.38
|
||||||||
Diluted
|
$
|
0.15
|
$
|
0.13
|
$
|
0.47
|
$
|
0.37
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
18,307
|
13,145
|
15,666
|
13,141
|
||||||||||||
Diluted
|
18,648
|
13,234
|
15,876
|
13,216
|
||||||||||||
Dividends per common share
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income
|
$
|
2,881
|
$
|
2,269
|
$
|
8,275
|
$
|
6,758
|
||||||||
Other comprehensive income, net of taxes:
|
||||||||||||||||
Change in accumulated gain (loss) on effective cash flow hedging derivative
|
8
|
(297
|
)
|
42
|
(389
|
)
|
||||||||||
Unrealized loss on investment securities, net:
|
||||||||||||||||
Securities with OTTI charges during the period
|
(9
|
)
|
(21
|
)
|
(65
|
)
|
(138
|
)
|
||||||||
Less: OTTI charges recognized in net income
|
(4
|
)
|
(20
|
)
|
(54
|
)
|
(125
|
)
|
||||||||
Net unrealized losses on investment securities with OTTI
|
(5
|
)
|
(1
|
)
|
(11
|
)
|
(13
|
)
|
||||||||
Unrealized holding gain arising during the period
|
623
|
1,155
|
1,126
|
2,277
|
||||||||||||
Less: reclassification adjustment for gain included in net income
|
15
|
130
|
|
69
|
83
|
|||||||||||
Net unrealized gains on investment securities
|
608
|
1,025
|
1,057
|
2,194
|
||||||||||||
Other comprehensive income, net of taxes
|
611
|
727
|
1,088
|
1,792
|
||||||||||||
Total comprehensive income
|
$
|
3,492
|
$
|
2,996
|
$
|
9,363
|
$
|
8,550
|
Preferred Stock
|
Common Stock
|
Additional
paid-in
|
Retained
|
Accumulated other comprehensive income
|
Treasury Stock, at
|
|||||||||||||||||||||||||||||||
Shares
|
At par
|
Shares
|
At par
|
capital
|
earnings
|
(loss)
|
cost
|
Total
|
||||||||||||||||||||||||||||
Balance at December 31, 2011
|
45
|
$
|
45,003
|
13,341
|
$
|
13,341
|
$
|
33,816
|
$
|
73,188
|
$
|
(165
|
)
|
$
|
–
|
$
|
165,183
|
|||||||||||||||||||
Issuance of common stock
|
–
|
–
|
5,426
|
5,426
|
40,543
|
–
|
–
|
–
|
45,969
|
|||||||||||||||||||||||||||
Repurchase of common stock
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
(145
|
)
|
(145
|
)
|
|||||||||||||||||||||||||
Repurchase of preferred stock
|
(45
|
)
|
(45,000
|
)
|
–
|
–
|
557
|
–
|
–
|
–
|
(44,443
|
)
|
||||||||||||||||||||||||
Stock-based compensation expense related to stock options recognized in earnings
|
–
|
–
|
–
|
–
|
60
|
–
|
–
|
–
|
60
|
|||||||||||||||||||||||||||
Net income
|
–
|
–
|
–
|
–
|
–
|
8,275
|
–
|
–
|
8,275
|
|||||||||||||||||||||||||||
Amortization of preferred stock discount
|
–
|
285
|
–
|
–
|
–
|
(285
|
)
|
–
|
–
|
–
|
||||||||||||||||||||||||||
Other comprehensive income
|
–
|
–
|
–
|
–
|
–
|
–
|
1,088
|
–
|
1,088
|
|||||||||||||||||||||||||||
Dividends – preferred stock
|
–
|
(288
|
)
|
–
|
–
|
–
|
(1,145
|
)
|
–
|
(1,433
|
)
|
|||||||||||||||||||||||||
Balance at September 30, 2012
|
–
|
$
|
–
|
18,767
|
$
|
18,767
|
$
|
74,976
|
$
|
80,033
|
$
|
923
|
$
|
(145
|
)
|
$
|
174,554
|
For the Nine Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
8,275
|
$
|
6,758
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
792
|
1,070
|
||||||
Provision for loan losses
|
300
|
2,450
|
||||||
Impairment on securities
|
84
|
195
|
||||||
Gain on securities transactions, net
|
(108
|
)
|
(129
|
)
|
||||
Loss on writedown and sale of foreclosed assets
|
944
|
1,313
|
||||||
Loss on sale of premises and equipment
|
—
|
11
|
||||||
Amortization of premiums and discounts on securities, net
|
330
|
116
|
||||||
Amortization of deferred loan fees and discounts
|
(858
|
)
|
(881
|
)
|
||||
Amortization of core deposit intangibles
|
42
|
65
|
||||||
Stock-based compensation
|
60
|
68
|
||||||
Changes in:
|
||||||||
Accrued interest receivable
|
389
|
|
776
|
|||||
Other assets
|
(1,781
|
)
|
1,911
|
|||||
Accrued interest payable
|
(52
|
)
|
(151
|
)
|
||||
Other liabilities
|
8,214
|
4,177
|
||||||
Net cash provided by operating activities
|
16,631
|
17,749
|
||||||
Cash flows from investing activities:
|
||||||||
Purchases of securities available-for-sale
|
(105,708
|
)
|
(91,002
|
)
|
||||
Purchases of other investments
|
(2
|
)
|
(2
|
)
|
||||
Proceeds from sales of securities available-for-sale
|
—
|
7,927
|
||||||
Proceeds from maturities, calls, and principal paydowns of securities available-for-sale
|
101,146
|
112,363
|
||||||
Proceeds from sales and maturities of other investments
|
711
|
333
|
||||||
Net change in loans
|
(60,259
|
)
|
60,127
|
|||||
Proceeds from sale of foreclosed assets
|
15,958
|
14,460
|
||||||
Purchases of premises and equipment
|
(290
|
)
|
(780
|
)
|
||||
Net cash (used in) provided by investing activities
|
(48,444
|
)
|
103,426
|
|||||
Cash flows from financing activities:
|
||||||||
Net change in:
|
||||||||
Deposits
|
13,482
|
(52,692
|
)
|
|||||
Other borrowings
|
(315
|
)
|
(20,388
|
)
|
||||
Proceeds from issuance of common stock
|
45,969
|
—
|
||||||
Repurchase of common stock
|
(145
|
)
|
—
|
|||||
Repurchase of preferred stock
|
(44,443
|
)
|
—
|
|||||
Cash dividends paid on preferred stock
|
(1,433
|
)
|
(2,272
|
)
|
||||
Net cash provided by (used in) financing activities
|
13,115
|
(75,352
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(18,698
|
)
|
45,823
|
|||||
Cash and cash equivalents at beginning of period
|
193,609
|
151,725
|
||||||
Cash and cash equivalents at end of period
|
$
|
174,911
|
$
|
197,548
|
||||
Supplemental information:
|
||||||||
Interest paid
|
$
|
7,723
|
$
|
10,633
|
||||
Income taxes paid
|
3,482
|
1,022
|
||||||
Noncash investing and financing activities:
|
||||||||
Issuance of common stock pursuant to incentive plan
|
—
|
609
|
||||||
Issuance of common stock – restricted shares
|
3,024
|
—
|
||||||
Foreclosed assets acquired
|
5,799
|
19,661
|
||||||
Loans originated to finance foreclosed assets
|
6,501
|
3,305
|
As of September 30, 2012
|
||||||||||||||||||||
Amortized
|
Unrealized
|
Fair
|
||||||||||||||||||
Cost
|
Gains
|
Losses
|
OTTI |
Value
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||
Debt Securities
|
||||||||||||||||||||
U.S. Treasury and other U.S. government corporations and agencies
|
$ | 75,457 | $ | 466 | $ | (10 | ) | $ |
─
|
$ | 75,913 | |||||||||
Obligations of state and political subdivisions
|
12,849 | 552 |
─
|
─
|
13,401 | |||||||||||||||
Corporate
|
6,086 | 266 | 6,352 | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||||||||||
Government issued or guaranteed
|
65,585 | 1,847 |
─
|
─
|
67,432 | |||||||||||||||
Privately issued residential
|
775 | 309 | (5 | ) | (402 | ) | 677 | |||||||||||||
Asset backed securities
|
196 | 122 |
─
|
(175 | ) | 143 | ||||||||||||||
Equity Securities
|
||||||||||||||||||||
Investment in CRA funds
|
13,964 | 400 |
─
|
─
|
14,364 | |||||||||||||||
Total available-for-sale securities
|
$ | 174,912 | $ | 3,962 | $ | (15 | ) | $ | (577 | ) | $ | 178,282 | ||||||||
Securities held-to-maturity
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
$ | 4,046 | $ | 726 | $ |
─
|
$ |
─
|
$ | 4,772 | ||||||||||
Total held-to-maturity securities
|
$ | 4,046 | $ | 726 | $ |
─
|
$ |
─
|
$ | 4,772 | ||||||||||
Other investments
|
||||||||||||||||||||
FHLB/Federal Reserve Bank stock (1)
|
$ | 4,691 | $ |
─
|
$ |
─
|
$ |
─
|
$ | 4,691 | ||||||||||
Investment in subsidiary trust (1)
|
1,083 |
─
|
─
|
─
|
1,083 | |||||||||||||||
Total other investments
|
$ | 5,774 | $ |
─
|
$ |
─
|
$ |
─
|
$ | 5,774 |
As of December 31, 2011
|
||||||||||||||||||||
Unrealized
|
||||||||||||||||||||
Amortized
Cost
|
Gains
|
Losses
|
OTTI
|
Fair
Value
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||
Debt securities
|
||||||||||||||||||||
U.S. Treasury and other U.S. government corporations and agencies
|
$
|
91,660
|
$
|
546
|
$
|
(7
|
)
|
$
|
—
|
$
|
92,199
|
|||||||||
Obligations of state and political subdivisions
|
5,467
|
279
|
(40
|
)
|
—
|
5,706
|
||||||||||||||
Corporate
|
6,102
|
57
|
(18
|
)
|
—
|
6,141
|
||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||||||||||
Government issued or guaranteed
|
52,594
|
1,160
|
(15
|
)
|
—
|
53,739
|
||||||||||||||
Privately issued residential
|
900
|
232
|
(23
|
)
|
(442
|
)
|
667
|
|||||||||||||
Asset backed securities
|
231
|
56
|
—
|
(185
|
)
|
102
|
||||||||||||||
Equity securities
|
||||||||||||||||||||
Investment in CRA funds
|
13,700
|
135
|
—
|
—
|
13,835
|
|||||||||||||||
Total available-for-sale securities
|
$
|
170,654
|
$
|
2,465
|
$
|
(103
|
)
|
$
|
(627
|
)
|
$
|
172,389
|
||||||||
Securities held-to-maturity
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
$
|
4,046
|
$
|
490
|
$
|
—
|
$
|
—
|
$
|
4,536
|
||||||||||
Total held-to-maturity securities
|
$
|
4,046
|
$
|
490
|
$
|
—
|
$
|
—
|
$
|
4,536
|
||||||||||
Other investments
|
||||||||||||||||||||
FHLB /Federal Reserve Bank stock(1)
|
5,401
|
—
|
—
|
—
|
5,401
|
|||||||||||||||
Investment in subsidiary trust(1)
|
1,083
|
—
|
—
|
—
|
1,083
|
|||||||||||||||
Total other investments
|
$
|
6,484
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
6,484
|
September 30, 2012
|
||||||||||||||||||||||||
Less Than 12 Months
|
Greater Than 12 Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||
Obligations of state and political subdivisions
|
$
|
9,953
|
$
|
(10
|
)
|
$
|
—
|
$
|
—
|
$
|
9,953
|
$
|
(10
|
)
|
||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||||||||||||||
Government issued or guaranteed
|
—
|
—
|
111
|
(5
|
)
|
111
|
(5
|
)
|
||||||||||||||||
Total available-for-sale securities
|
$
|
9,953
|
$
|
(10
|
)
|
$
|
111
|
$
|
(5
|
)
|
$
|
10,065
|
$
|
(15
|
)
|
As of December 31, 2011
|
||||||||||||||||||||||||
Less Than 12
Months
|
Greater Than 12
Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Gross Unrealized
Losses
|
Fair
Value
|
Gross Unrealized
Losses
|
Fair
Value
|
Gross Unrealized
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||
U.S. Treasury and other U.S. government corporations and agencies
|
$
|
4,993
|
$
|
(7
|
)
|
$
|
—
|
$
|
—
|
$
|
4,993
|
$
|
(7
|
)
|
||||||||||
Obligations of state and political subdivisions
|
1,580
|
(40
|
)
|
—
|
—
|
1,580
|
(40
|
)
|
||||||||||||||||
Corporate
|
3,017
|
(18
|
)
|
—
|
—
|
3,017
|
(18
|
)
|
||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||||||||||||||
Government issued or guaranteed
|
8,786
|
(15
|
)
|
10
|
—
|
8,796
|
(15
|
)
|
||||||||||||||||
Privately issued residential
|
—
|
—
|
168
|
(23
|
)
|
168
|
(23
|
)
|
||||||||||||||||
Total available-for-sale securities
|
$
|
18,376
|
$
|
(80
|
)
|
$
|
178
|
$
|
(23
|
)
|
$
|
18,554
|
$
|
(103
|
)
|
Impairment related to credit losses
|
||||||||
Three Months Ended
September 30, 2012
|
Nine Months Ended
September 30, 2012
|
|||||||
(In thousands)
|
||||||||
Credit losses at beginning of period
|
$
|
1,672
|
$
|
1,595
|
||||
Additions to OTTI that were previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis
|
5
|
51
|
||||||
Transfers from accumulated other comprehensive income to OTTI related to credit losses
|
2
|
33
|
||||||
Credit losses at end of period
|
$
|
1,679
|
$
|
1,679
|
Nine Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Amortized cost
|
$
|
—
|
$
|
7,973
|
||||
Proceeds
|
—
|
7,927
|
||||||
Gross realized gains
|
—
|
94
|
||||||
Gross realized losses
|
—
|
(140
|
)
|
Securities
Available-for-sale
|
Securities
Held-to-maturity
|
|||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||
Within one year
|
$
|
706
|
$
|
725
|
$
|
—
|
$
|
—
|
||||||||
Within two to five years
|
8,083
|
8,357
|
—
|
—
|
||||||||||||
Within six to ten years
|
74,247
|
74,816
|
—
|
—
|
||||||||||||
After ten years
|
11,552
|
11,911
|
4,046
|
4,772
|
||||||||||||
Mortgage-backed securities and collateralized mortgage obligations
|
66,360
|
68,109
|
—
|
—
|
||||||||||||
Total debt securities
|
$
|
160,948
|
$
|
163,918
|
$
|
4,046
|
$
|
4,772
|
As of September 30, 2012
|
As of December 31, 2011
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial and industrial
|
$
|
377,054
|
34.30
|
%
|
$
|
345,265
|
32.98
|
%
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
40,391
|
3.67
|
42,682
|
4.08
|
||||||||||||
Commercial
|
667,162
|
60.68
|
644,727
|
61.58
|
||||||||||||
707,553
|
64.35
|
687,409
|
65.66
|
|||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
4,087
|
0.37
|
6,984
|
0.67
|
||||||||||||
Commercial
|
3,824
|
0.35
|
3,324
|
0.32
|
||||||||||||
7,911
|
0.72
|
10,308
|
0.99
|
|||||||||||||
Consumer and other
|
6,955
|
0.63
|
3,936
|
0.37
|
||||||||||||
Gross loans
|
1,099,473
|
100.00
|
%
|
1,046,918
|
100.00
|
%
|
||||||||||
Unearned discounts, interest and deferred fees
|
(2,618
|
)
|
(2,302
|
)
|
||||||||||||
Total loans
|
1,096,855
|
1,044,616
|
||||||||||||||
Allowance for loan losses
|
(25,542
|
)
|
(28,321
|
)
|
||||||||||||
Loans, net
|
$
|
1,071,313
|
$
|
1,016,295
|
September 30, 2012
|
Gross Loan
Balance
|
Deferred Loan
Fees
|
Accrued Interest
Receivable
|
Recorded Investment in Loans
|
||||||||||||
Commercial and industrial
|
$
|
377,054
|
$
|
(755
|
)
|
$
|
1,010
|
$
|
377,309
|
|||||||
Real estate mortgage
|
707,553
|
(1,599
|
)
|
2,167
|
708,121
|
|||||||||||
Real estate construction
|
7,911
|
(12
|
)
|
8
|
7,907
|
|||||||||||
Consumer and other
|
6,955
|
(252
|
)
|
20
|
6,723
|
|||||||||||
Total
|
$
|
1,099,473
|
$
|
(2,618
|
)
|
$
|
3,205
|
$
|
1,100,060
|
December 31, 2011
|
Gross Loan
Balance
|
Deferred Loan
Fees
|
Accrued Interest
Receivable
|
Recorded Investment in Loans
|
||||||||||||
Commercial and industrial
|
$
|
345,265
|
$
|
(777
|
)
|
$
|
1,077
|
$
|
345,565
|
|||||||
Real estate mortgage
|
687,409
|
(1,327
|
)
|
2,270
|
688,352
|
|||||||||||
Real estate construction
|
10,308
|
(2
|
)
|
29
|
10,335
|
|||||||||||
Consumer and other
|
3,936
|
(196
|
)
|
14
|
3,754
|
|||||||||||
Total
|
$
|
1,046,918
|
$
|
(2,302
|
)
|
$
|
3,390
|
$
|
1,048,006
|
As of September 30, 2012
|
Commercial and industrial
|
Real estate-
mortgage
|
Real estate - construction
|
Consumer
and other
|
Total
|
|||||||||||||||
Grade:
|
||||||||||||||||||||
1-6 - “Pass”
|
$
|
351,931
|
$
|
610,745
|
$
|
2,415
|
$
|
6,722
|
$
|
971,813
|
||||||||||
7 - “Special Mention”/ “Watch”
|
3,977
|
14,679
|
—
|
—
|
18,656
|
|||||||||||||||
8 - “Substandard”
|
21,401
|
82,697
|
5,492
|
1
|
109,591
|
|||||||||||||||
9 -“Doubtful"
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total
|
$
|
377,309
|
$
|
708,121
|
$
|
7,907
|
$
|
6,723
|
$
|
1,100,060
|
As of December 31, 2011
|
Commercial and industrial
|
Real estate-
mortgage
|
Real estate - construction
|
Consumer
and other
|
Total
|
|||||||||||||||
Grade:
|
||||||||||||||||||||
1-6 - “Pass”
|
$
|
310,626
|
$
|
551,496
|
$
|
3,078
|
$
|
3,753
|
$
|
868,953
|
||||||||||
7 - “Special Mention”/ “Watch”
|
10,735
|
30,491
|
—
|
—
|
41,226
|
|||||||||||||||
8 - “Substandard”
|
24,204
|
106,160
|
7,257
|
1
|
137,622
|
|||||||||||||||
9 -“Doubtful"
|
—
|
205
|
—
|
—
|
205
|
|||||||||||||||
Total
|
$
|
345,565
|
$
|
688,352
|
$
|
10,335
|
$
|
3,754
|
$
|
1,048,006
|
As of September 30, 2012
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
Greater
Than
90 Days
|
Total
Past
Due
|
Current
|
Total Recorded Investment in Loans
|
Recorded Investment 90 Days Past Due and Accruing
|
|||||||||||||||||||||
Commercial and industrial
|
$
|
730
|
$
|
754
|
$
|
7,356
|
$
|
8,840
|
$
|
368,469
|
$
|
377,309
|
$
|
—
|
||||||||||||||
Real estate mortgage:
|
||||||||||||||||||||||||||||
Residential
|
5,238
|
—
|
184
|
5,422
|
35,060
|
40,482
|
—
|
|||||||||||||||||||||
Commercial
|
680
|
8,199
|
12,365
|
21,244
|
646,395
|
667,639
|
—
|
|||||||||||||||||||||
Real estate construction:
|
||||||||||||||||||||||||||||
Residential
|
—
|
—
|
2,345
|
2,345
|
1,738
|
4,083
|
—
|
|||||||||||||||||||||
Commercial
|
—
|
—
|
3,148
|
3,148
|
676
|
3,824
|
—
|
|||||||||||||||||||||
Consumer and other
|
—
|
25
|
1
|
26
|
6,697
|
6,723
|
—
|
|||||||||||||||||||||
Total
|
$
|
6,648
|
$
|
8,978
|
$
|
25,399
|
$
|
41,025
|
$
|
1,059,035
|
$
|
1,100,060
|
$
|
—
|
As of December 31, 2011
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
Greater
Than
90 Days
|
Total
Past
Due
|
Current
|
Total Recorded Investment in Loans
|
Recorded Investment 90 Days Past Due and Accruing
|
|||||||||||||||||||||
Commercial and industrial
|
$
|
2,018
|
$
|
121
|
$
|
9,433
|
$
|
11,572
|
$
|
333,993
|
$
|
345,565
|
$
|
—
|
||||||||||||||
Real estate mortgage:
|
||||||||||||||||||||||||||||
Residential
|
105
|
—
|
251
|
356
|
42,440
|
42,796
|
—
|
|||||||||||||||||||||
Commercial
|
7,361
|
4,002
|
15,559
|
26,922
|
618,634
|
645,556
|
—
|
|||||||||||||||||||||
Real estate construction:
|
||||||||||||||||||||||||||||
Residential
|
—
|
—
|
—
|
—
|
7,011
|
7,011
|
—
|
|||||||||||||||||||||
Commercial
|
—
|
3,324
|
—
|
3,324
|
—
|
3,324
|
—
|
|||||||||||||||||||||
Consumer and other
|
—
|
5
|
1
|
6
|
3,748
|
3,754
|
—
|
|||||||||||||||||||||
Total
|
$
|
9,484
|
$
|
7,452
|
$
|
25,244
|
$
|
42,180
|
$
|
1,005,826
|
$
|
1,048,006
|
$
|
—
|
Recorded investment in nonaccrual loans
|
September 30, 2012
|
December 31, 2011
|
||||||
Commercial and industrial
|
$
|
7,356
|
$
|
10,665
|
||||
Real estate mortgage:
|
||||||||
Residential
|
184
|
251
|
||||||
Commercial
|
23,116
|
30,600
|
||||||
Real estate construction:
|
||||||||
Residential
|
2,345
|
—
|
||||||
Commercial
|
3,147
|
3,324
|
||||||
Consumer and other
|
1
|
1
|
||||||
Total
|
$
|
36,149
|
$
|
44,841
|
As of September 30, 2012
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
7,333
|
$
|
7,343
|
$
|
—
|
$
|
5,752
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
184
|
184
|
—
|
216
|
||||||||||||
Commercial
|
22,258
|
22,260
|
—
|
19,859
|
||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
2,345
|
2,345
|
—
|
1,172
|
||||||||||||
Commercial
|
3,147
|
3,147
|
—
|
3,226
|
||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
23
|
$
|
23
|
$
|
23
|
$
|
3,183
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
4,999
|
4,986
|
953
|
6,836
|
||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$
|
7,356
|
$
|
7,366
|
$
|
23
|
$
|
8,935
|
||||||||
Real estate mortgage
|
27,441
|
27,430
|
953
|
26,911
|
||||||||||||
Real estate construction
|
5,492
|
5,492
|
—
|
4,398
|
As of December 31, 2011
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
3,647
|
$
|
3,652
|
$
|
—
|
$
|
8,901
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
251
|
251
|
—
|
263
|
||||||||||||
Commercial
|
19,922
|
19,913
|
—
|
26,256
|
||||||||||||
Real estate construction:
|
||||||||||||||||
Commercial
|
3,324
|
3,324
|
—
|
831
|
||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
7,018
|
$ |
7,025
|
$ |
224
|
$ |
4,835
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
10,678
|
10,696
|
710
|
14,042
|
||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$
|
10,665
|
$
|
10,677
|
$
|
224
|
$
|
13,736
|
||||||||
Real estate mortgage
|
30,851
|
30,860
|
710
|
40,561
|
||||||||||||
Real estate construction
|
3,324
|
3,324
|
—
|
831
|
Nine Months Ended September 30, 2012
|
|||||||||||
Number
of
Contracts
|
Pre-Modification Outstanding
Recorded
Investment
|
Post-Modification Outstanding
Recorded
Investment
|
|||||||||
Troubled Debt Restructurings
|
|||||||||||
Real estate mortgage:
|
|||||||||||
Commercial
|
3
|
$
|
6,007
|
$
|
6,318
|
||||||
Real estate construction:
|
|||||||||||
Commercial
|
2
|
401
|
401
|
As of and for the three months ended
September 30, 2012
|
Commercial
and
industrial
|
Real
estate-
mortgage
|
Real estate - construction
|
Consumer
and other
|
Unallocated
|
Total
|
||||||||||||||||||
Allowance for loan losses at beginning of period
|
$
|
9,146
|
$
|
16,151
|
$
|
185
|
$
|
106
|
$
|
1,723
|
$
|
27,311
|
||||||||||||
Provision for loan losses
|
922
|
(574
|
)
|
(6
|
)
|
50
|
(692
|
)
|
(300
|
)
|
||||||||||||||
Charge-offs
|
(1,464
|
)
|
(130
|
)
|
—
|
(31
|
)
|
—
|
(1,625
|
)
|
||||||||||||||
Recoveries
|
32
|
118
|
—
|
6
|
—
|
156
|
||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Allowance for loan losses at end of period
|
$
|
8,636
|
$
|
15,565
|
$
|
179
|
$
|
131
|
$
|
1,031
|
$
|
25,542
|
||||||||||||
Ending allowance for loan losses balance for loans individually evaluated for impairment
|
$
|
23
|
$
|
953
|
$
|
—
|
$
|
—
|
$
|
976
|
||||||||||||||
Ending allowance for loan losses balance for loans collectively evaluated for impairment
|
$
|
8,613
|
$
|
14,612
|
$
|
179
|
$
|
131
|
$
|
23,535
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||
Recorded investment in loans
|
$
|
377,309
|
$
|
708,121
|
$
|
7,907
|
$
|
6,723
|
$
|
1,100,060
|
||||||||||||||
Recorded investment in loans individually evaluated for impairment
|
$
|
7,357
|
$
|
27,441
|
$
|
5,492
|
$
|
1
|
$
|
40,291
|
||||||||||||||
Recorded investment in loans collectively evaluated for impairment
|
$
|
369,952
|
$
|
680,680
|
$
|
2,415
|
$
|
6,722
|
$
|
1,059,769
|
As of and for the three months ended
September 30, 2011
|
Commercial and industrial
|
Real
estate-
mortgage
|
Real estate - construction
|
Consumer
and other
|
Unallocated
|
Total
|
||||||||||||||||||
Allowance for loan losses at beginning of period
|
$
|
7,136
|
$
|
20,590
|
$
|
490
|
$
|
152
|
$
|
2,025
|
$
|
30,393
|
||||||||||||
Provision for loan losses
|
527
|
74
|
(2
|
)
|
12
|
264
|
875
|
|||||||||||||||||
Charge-offs
|
(597
|
)
|
(1,350
|
)
|
—
|
(18
|
)
|
—
|
(1,965
|
)
|
||||||||||||||
Recoveries
|
260
|
396
|
5
|
5
|
—
|
666
|
||||||||||||||||||
Allowance for loan losses at end of period
|
$
|
7,325
|
$
|
19,710
|
$
|
493
|
$
|
151
|
$
|
2,289
|
$
|
29,969
|
||||||||||||
Ending allowance for loan losses balance for loans individually evaluated for impairment
|
$
|
275
|
$
|
749
|
$
|
—
|
$
|
—
|
$
|
1,024
|
||||||||||||||
Ending allowance for loan losses balance for loans collectively evaluated for impairment
|
$
|
7,051
|
$
|
18,961
|
$
|
493
|
$
|
151
|
$
|
26,656
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||
Recorded investment in loans
|
$
|
346,254
|
$
|
705,757
|
$
|
6,925
|
$
|
3,629
|
$
|
1,062,565
|
||||||||||||||
Recorded investment in loans individually evaluated for impairment
|
$
|
13,520
|
$
|
34,749
|
$
|
—
|
$
|
1
|
$
|
48,270
|
||||||||||||||
Recorded investment in loans collectively evaluated for impairment
|
$
|
332,734
|
$
|
671,008
|
$
|
6,925
|
$
|
3,628
|
$
|
1,014,295
|
As of and for the nine months ended
September 30, 2012
|
Commercial
and
industrial
|
Real
estate-
mortgage
|
Real estate - construction
|
Consumer
and other
|
Unallocated
|
Total
|
||||||||||||||||||
Allowance for loan losses at beginning of period
|
$
|
7,966
|
$
|
19,213
|
$
|
320
|
$
|
137
|
$
|
685
|
$
|
28,321
|
||||||||||||
Provision for loan losses
|
2,531
|
(3,166
|
)
|
523
|
66
|
346
|
300
|
|||||||||||||||||
Charge-offs
|
(2,258
|
)
|
(1,415
|
)
|
(683
|
)
|
(92
|
)
|
—
|
(4,448
|
)
|
|||||||||||||
Recoveries
|
397
|
933
|
19
|
20
|
—
|
1,369
|
||||||||||||||||||
Allowance for loan losses at end of period
|
$
|
8,636
|
$
|
15,565
|
$
|
179
|
$
|
131
|
$
|
1,031
|
$
|
25,542
|
||||||||||||
Ending allowance for loan losses balance for loans individually evaluated for impairment
|
$
|
23
|
$
|
953
|
$
|
—
|
$
|
—
|
$
|
976
|
||||||||||||||
Ending allowance for loan losses balance for loans collectively evaluated for impairment
|
$
|
8,613
|
$
|
14,612
|
$
|
179
|
$
|
131
|
$
|
23,535
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||
Recorded investment in loans
|
$
|
377,309
|
$
|
708,121
|
$
|
7,907
|
$
|
6,723
|
$
|
1,100,060
|
||||||||||||||
Recorded investment in loans individually evaluated for impairment
|
$
|
7,357
|
$
|
27,441
|
$
|
5,492
|
$
|
1
|
$
|
40,291
|
||||||||||||||
Recorded investment in loans collectively evaluated for impairment
|
$
|
369,952
|
$
|
680,680
|
$
|
2,415
|
$
|
6,722
|
$
|
1,059,769
|
As of and for the nine months ended
September 30, 2011
|
Commercial and industrial
|
Real estate-
mortgage
|
Real estate - construction
|
Consumer
and other
|
Unallocated
|
Total
|
||||||||||||||||||
Allowance for loan losses at beginning of period
|
$
|
8,187
|
$
|
22,016
|
$
|
1,993
|
$
|
194
|
$
|
1,367
|
$
|
33,757
|
||||||||||||
Provision for loan losses
|
1,865
|
1,907
|
(2,222
|
)
|
(22
|
)
|
922
|
2,450
|
||||||||||||||||
Charge-offs
|
(3,222
|
)
|
(4,673
|
)
|
—
|
(49
|
)
|
—
|
(7,944
|
)
|
||||||||||||||
Recoveries
|
496
|
460
|
722
|
28
|
—
|
1,706
|
||||||||||||||||||
Allowance for loan losses at end of period
|
$
|
7,326
|
$
|
19,710
|
$
|
493
|
$
|
151
|
$
|
2,289
|
$
|
29,969
|
||||||||||||
Ending allowance for loan losses balance for loans individually evaluated for impairment
|
$
|
275
|
$
|
749
|
$
|
—
|
$
|
—
|
$
|
1,024
|
||||||||||||||
Ending allowance for loan losses balance for loans collectively evaluated for impairment
|
$
|
7,051
|
$
|
18,961
|
$
|
493
|
$
|
151
|
$
|
26,656
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||
Recorded investment in loans
|
$
|
346,254
|
$
|
705,757
|
$
|
6,925
|
$
|
3,629
|
$
|
1,062,565
|
||||||||||||||
Recorded investment in loans individually evaluated for impairment
|
$
|
13,520
|
$
|
34,749
|
$
|
—
|
$
|
1
|
$
|
48,270
|
||||||||||||||
Recorded investment in loans collectively evaluated for impairment
|
$
|
332,734
|
$
|
671,008
|
$
|
6,925
|
$
|
3,628
|
$
|
1,014,295
|
Balance as of January 1, 2011
|
||||
Goodwill
|
$
|
21,827
|
||
Accumulated impairment losses
|
4,500
|
|||
Net goodwill
|
17,327
|
|||
Impairment losses
|
3,000
|
|||
Balance as of December 31, 2011
|
||||
Goodwill
|
21,827
|
|||
Accumulated impairment losses
|
7,500
|
|||
Net goodwill
|
14,327
|
|||
Impairment losses
|
—
|
|||
Balance as of September 30, 2012
|
||||
Goodwill
|
21,827
|
|||
Accumulated impairment losses
|
7,500
|
|||
Net goodwill
|
$
|
14,327
|
As of and for the Three Months
Ended September 30,
|
As of and for the Nine Months
Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
Net income available to common shareholders
|
$
|
2,712
|
$
|
1,668
|
$
|
7,403
|
$
|
4,947
|
||||||||
Weighted average common shares in basic EPS
|
18,307
|
13,145
|
15,666
|
13,141
|
||||||||||||
Effect of dilutive securities
|
341
|
89
|
210
|
75
|
||||||||||||
Weighted average common and potentially dilutive common shares used in diluted EPS
|
18,648
|
13,234
|
15,876
|
13,216
|
||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
0.15
|
$
|
0.13
|
$
|
0.47
|
$
|
0.38
|
||||||||
Diluted
|
$
|
0.15
|
$
|
0.13
|
$
|
0.47
|
$
|
0.37
|
As of
September 30, 2012
|
As of
December 31, 2011
|
|||||||
Unfunded loan commitments including unfunded lines of credit
|
$
|
93,321
|
$
|
105,049
|
||||
Standby letters of credit
|
10,590
|
15,765
|
||||||
Commercial letters of credit
|
4,790
|
5,818
|
||||||
Operating leases
|
7,852
|
8,058
|
||||||
Total financial instruments with off-balance sheet risk
|
$
|
116,553
|
$
|
134,690
|
Actual
|
Minimum
Required For
Capital Adequacy
Purposes
|
To be Categorized
as Well Capitalized
under Prompt
Corrective Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of September 30, 2012
|
||||||||||||||||||||||||
Total risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
$
|
207,884
|
17.69
|
%
|
$
|
94,029
|
8.00
|
%
|
$
|
N/A
|
N/A
|
%
|
||||||||||||
MetroBank, N.A.
|
152,149
|
17.64
|
69,019
|
8.00
|
86,274
|
10.00
|
||||||||||||||||||
Metro United Bank
|
51,004
|
16.49
|
24,752
|
8.00
|
30,940
|
10.00
|
||||||||||||||||||
Tier 1 risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
192,867
|
16.41
|
47,014
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
141,082
|
16.35
|
34,510
|
4.00
|
51,764
|
6.00
|
||||||||||||||||||
Metro United Bank
|
47,093
|
15.22
|
12,376
|
4.00
|
18,564
|
6.00
|
||||||||||||||||||
Leverage ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
192,867
|
12.90
|
59,824
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
141,082
|
12.62
|
44,720
|
4.00
|
55,900
|
5.00
|
||||||||||||||||||
Metro United Bank
|
47,093
|
12.48
|
15,095
|
4.00
|
18,869
|
5.00
|
||||||||||||||||||
As of December 31, 2011
|
||||||||||||||||||||||||
Total risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
$
|
195,765
|
17.30
|
%
|
$
|
90,552
|
8.00
|
%
|
$
|
N/A
|
N/A
|
%
|
||||||||||||
MetroBank, N.A.
|
140,510
|
16.82
|
66,831
|
8.00
|
83,539
|
10.00
|
||||||||||||||||||
Metro United Bank
|
48,778
|
16.48
|
23,674
|
8.00
|
29,593
|
10.00
|
||||||||||||||||||
Tier 1 risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
181,368
|
16.02
|
45,276
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
129,864
|
15.55
|
33,416
|
4.00
|
50,124
|
6.00
|
||||||||||||||||||
Metro United Bank
|
45,034
|
15.22
|
11,837
|
4.00
|
17,756
|
6.00
|
||||||||||||||||||
Leverage ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
181,368
|
12.16
|
59,659
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
129,864
|
11.67
|
44,514
|
4.00
|
55,643
|
5.00
|
||||||||||||||||||
Metro United Bank
|
45,034
|
11.80
|
15,269
|
4.00
|
19,086
|
5.00
|
Three Months Ended September 30, 2012
|
Three Months Ended September 30, 2011
|
|||||||||||||||||||||||
Before Tax Amount
|
Tax Expense (Benefit)
|
Net of Tax Amount
|
Before Tax Amount
|
Tax Expense (Benefit)
|
Net of Tax Amount
|
|||||||||||||||||||
Change in accumulated gain (loss) on effective cash flow derivatives
|
$
|
12
|
$
|
4
|
$
|
8
|
$
|
(464
|
)
|
$
|
(167
|
)
|
$
|
(297
|
)
|
|||||||||
Unrealized gain (loss) on investment securities with OTTI:
|
||||||||||||||||||||||||
Securities with OTTI charges during the period
|
(14
|
)
|
(5
|
)
|
(9
|
)
|
(32
|
)
|
(11
|
)
|
(21
|
)
|
||||||||||||
Less: OTTI charges recognized in net income
|
(7
|
)
|
(3
|
)
|
(4
|
)
|
(30
|
)
|
(10
|
)
|
(20
|
)
|
||||||||||||
Net unrealized losses on investment securities with OTTI
|
(7
|
)
|
(2
|
)
|
(5
|
)
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
||||||||||||
Unrealized gain (loss) on investment securities:
|
||||||||||||||||||||||||
Unrealized holding gain arising during the period
|
974
|
351
|
623
|
1,805
|
650
|
1,155
|
||||||||||||||||||
Less: reclassification adjustment for gain (loss) included in net income
|
24
|
9
|
15
|
203
|
73
|
130
|
||||||||||||||||||
Net unrealized gains on investment securities
|
950
|
342
|
608
|
1,602
|
577
|
1,025
|
||||||||||||||||||
Other comprehensive income
|
$
|
955
|
$
|
344
|
$
|
611
|
$
|
1,136
|
$
|
409
|
$
|
727
|
Nine Months Ended September 30, 2012
|
Nine Months Ended September 30, 2011
|
|||||||||||||||||||||||
Before Tax Amount
|
Tax Expense (Benefit)
|
Net of Tax Amount
|
Before Tax Amount
|
Tax Expense (Benefit)
|
Net of Tax Amount
|
|||||||||||||||||||
Change in accumulated gain (loss) on effective cash flow derivatives
|
$
|
65
|
$
|
23
|
$
|
42
|
$
|
(608
|
)
|
$
|
(219
|
)
|
$
|
(389
|
)
|
|||||||||
Unrealized gain (loss) on investment securities with OTTI:
|
||||||||||||||||||||||||
Securities with OTTI charges during the period
|
(101
|
)
|
(36
|
)
|
(65
|
)
|
(215
|
)
|
(77
|
)
|
(138
|
)
|
||||||||||||
Less: OTTI charges recognized in net income
|
(84
|
)
|
(30
|
)
|
(54
|
)
|
(195
|
)
|
(70
|
)
|
(125
|
)
|
||||||||||||
Net unrealized losses on investment securities with OTTI
|
(17
|
)
|
(6
|
)
|
(11
|
)
|
(20
|
)
|
(7
|
)
|
(13
|
)
|
||||||||||||
Unrealized gain on investment securities:
|
||||||||||||||||||||||||
Unrealized holding gain arising during the period
|
1,761
|
635
|
1,126
|
3,557
|
1,280
|
2,277
|
||||||||||||||||||
Less: reclassification adjustment for gain included in net income
|
108
|
39
|
69
|
129
|
46
|
83
|
||||||||||||||||||
Net unrealized gains on investment securities
|
1,653
|
596
|
1,057
|
3,428
|
1,234
|
2,194
|
||||||||||||||||||
Other comprehensive income
|
$
|
1,701
|
$
|
613
|
$
|
1,088
|
$
|
2,800
|
$
|
1,008
|
$
|
1,792
|
Gains (Losses) on Effective Cash Hedging Derivatives
|
Net Unrealized Losses on Investments with OTTI
|
Net Unrealized Investment Gains
|
Total Accumulated Other Comprehensive Income (Loss)
|
|||||||||||||
Balance December 31, 2011
|
$
|
(1,275
|
)
|
$
|
(1,000
|
)
|
$
|
2,110
|
$
|
(165
|
)
|
|||||
Current period change
|
42
|
(11
|
)
|
1,057
|
1,088
|
|||||||||||
Balance September 30, 2012
|
$
|
(1,233
|
)
|
$
|
(1,011
|
)
|
$
|
3,167
|
$
|
923
|
September 30, 2012
|
December 31, 2011
|
|||||||||||||||
Notional
Amount
|
Estimated
Fair Value
|
Notional
Amount
|
Estimated
Fair Value
|
|||||||||||||
Interest rate derivative contract designated as a hedge of cash flows
|
$
|
17,500
|
$
|
(1,927
|
)
|
$
|
17,500
|
$
|
(1,992
|
)
|
||||||
Interest rate derivative contract not designated as a hedge of cash flows
|
$
|
15,000
|
$
|
55
|
$
|
15,000
|
$
|
194
|
Gains/(losses) recorded in income and other comprehensive income (in thousands)
|
||||||||||||||||||||
Three months ended September 30, 2012
|
Derivative
effective portion
reclassified from
AOCI into income
|
Hedge
ineffectiveness
recorded directly
in income
|
Total income
statement
impact
|
Derivative
effective portion
recorded in OCI
|
Total change
in OCI
for period
|
|||||||||||||||
Interest rate derivative designated as a hedge of cash flows:
|
||||||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
11
|
$
|
11
|
||||||||||
Three months ended September 30, 2011
|
||||||||||||||||||||
Interest rate derivative designated as a hedge of cash flows:
|
||||||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(464
|
)
|
$
|
(464
|
)
|
Gains/(losses) recorded in income and other comprehensive income (in thousands)
|
||||||||||||||||||||
Nine months ended September 30, 2012
|
Derivative
effective portion
reclassified from
AOCI into income
|
Hedge
ineffectiveness
recorded directly
in income
|
Total income
statement
impact
|
Derivative
effective portion
recorded in OCI
|
Total change
in OCI
for period
|
|||||||||||||||
Interest rate derivative designated as a hedge of cash flows:
|
||||||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
65
|
$
|
65
|
||||||||||
Nine months ended September 30, 2011
|
||||||||||||||||||||
Interest rate derivative designated as a hedge of cash flows:
|
||||||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(608
|
)
|
$
|
(608
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Non-hedging interest rate derivative:
|
||||||||||||||||
Other non-interest income
|
$
|
(31
|
)
|
$
|
(348
|
)
|
$
|
(139
|
)
|
$
|
(337
|
)
|
For the Three Months Ended September 30, 2012
|
For the Three Months Ended September 30, 2011
|
|||||||||||||||||||||||||||||||
MetroBank
|
Metro
United
|
Other
|
Consolidated
Company
|
MetroBank
|
Metro
United
|
Other
|
Consolidated
Company
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Total interest income
|
$
|
11,926
|
$
|
4,096
|
$
|
7
|
$
|
16,029
|
$
|
12,680
|
$
|
4,081
|
$
|
7
|
$
|
16,768
|
||||||||||||||||
Total interest expense
|
1,483
|
548
|
350
|
2,381
|
2,147
|
757
|
339
|
3,243
|
||||||||||||||||||||||||
Net interest income
|
$
|
10,443
|
$
|
3,548
|
$
|
(343
|
)
|
$
|
13,648
|
10,533
|
$
|
3,324
|
$
|
(332
|
)
|
$
|
13,525
|
|||||||||||||||
Provision for loan losses
|
(300
|
)
|
—
|
—
|
(300
|
)
|
550
|
325
|
—
|
875
|
||||||||||||||||||||||
Net interest income after provision for loan losses
|
10,743
|
3,458
|
(343
|
)
|
13,948
|
9,983
|
2,999
|
(332
|
)
|
12,650
|
||||||||||||||||||||||
Noninterest income
|
2,126
|
84
|
(338
|
)
|
1,872
|
2,092
|
55
|
(331
|
)
|
1,816
|
||||||||||||||||||||||
Noninterest expenses
|
8,281
|
2,870
|
378
|
11,529
|
8,539
|
2,850
|
46
|
11,435
|
||||||||||||||||||||||||
Income (loss) before income tax provision
|
4,588
|
762
|
(1,059
|
)
|
4,291
|
3,536
|
204
|
(709
|
)
|
3,031
|
||||||||||||||||||||||
Provision (benefit) for income taxes
|
1,449
|
321
|
(360
|
)
|
1,410
|
915
|
83
|
(236
|
)
|
762
|
||||||||||||||||||||||
Net income (loss)
|
$
|
3,139
|
$
|
441
|
$
|
(699
|
)
|
$
|
2,881
|
$
|
2,621
|
$
|
121
|
$
|
(473
|
)
|
$
|
2,269
|
For the Nine Months Ended September 30, 2012
|
For the Nine Months Ended September 30, 2011
|
|||||||||||||||||||||||||||||||
MetroBank
|
Metro
United
|
Other
|
Consolidated
Company
|
MetroBank
|
Metro
United
|
Other
|
Consolidated
Company
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Total interest income
|
$ | 36,483 | $ | 12,104 | $ | 21 | $ | 48,608 | $ | 38,370 | $ | 12,567 | $ | 19 | $ | 50,956 | ||||||||||||||||
Total interest expense
|
4,834 | 1,793 | 1,044 | 7,671 | 7,075 | 2,395 | 1,013 | 10,483 | ||||||||||||||||||||||||
Net interest income
|
$ | 31,649 | $ | 10,311 | $ | (1,023 | ) | $ | 40,937 | $ | 31,295 | $ | 10,172 | $ | (994 | ) | $ | 40,473 | ||||||||||||||
Provision for loan losses
|
300 | — | — | 300 | 2,050 | 400 | — | 2,450 | ||||||||||||||||||||||||
Net interest income after provision for loan losses
|
31,349 | 10,311 | (1,023 | ) | 40,637 | 29,245 | 9,772 | (994 | ) | 38,023 | ||||||||||||||||||||||
Noninterest income
|
6,188 | 260 | (1,013 | ) | 5,435 | 5,841 | 198 | (993 | ) | 5,046 | ||||||||||||||||||||||
Noninterest expenses
|
25,143 | 8,043 | 588 | 33,774 | 25,037 | 8,095 | 89 | 33,221 | ||||||||||||||||||||||||
Income before income tax provision
|
12,394 | 2,528 | (2,624 | ) | 12,298 | 10,049 | 1,875 | (2,076 | ) | 9,848 | ||||||||||||||||||||||
Provision (benefit) for income taxes
|
3,921 | 995 | (893 | ) | 4,023 | 3,008 | 776 | (694 | ) | 3,090 | ||||||||||||||||||||||
Net income (loss)
|
$ | 8,473 | $ | 1,533 | $ | (1,731 | ) | $ | 8,275 | $ | 7,041 | $ | 1,099 | $ | (1,382 | ) | $ | 6,758 |
As of September 30, 2012
|
As of September 30, 2011
|
|||||||||||||||||||||||||||||||
MetroBank
|
Metro
United
|
Other
|
Consolidated
Company
|
MetroBank
|
Metro
United
|
Other
|
Consolidated
Company
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Net loans
|
$ | 759,904 | $ | 311,409 | $ | — | $ | 1,071,313 | $ | 737,313 | $ | 291,883 | $ | — | $ | 1,029,196 | ||||||||||||||||
Total assets
|
1,128,652 | 396,019 | 1,417 | 1,526,088 | 1,110,963 | 388,897 | (2,080 | ) | 1,497,780 | |||||||||||||||||||||||
Deposits
|
946,206 | 325,646 | (6,795 | ) | 1,265,057 | 939,206 | 315,577 | (13,291 | ) | 1,241,492 |
·
|
Level 1 – Quoted prices in active markets for identical assets or liabilities.
|
·
|
Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
·
|
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
|
September 30, 2012
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Fair Value Measurements
|
|||||||||
Securities available-for-sale
|
||||||||||||
U.S. Treasury and other U.S. government corporations and agencies
|
$
|
–
|
$
|
75,913
|
$
|
75,913
|
||||||
Obligations of state and political subdivisions
|
–
|
13,401
|
13,401
|
|||||||||
Corporate
|
6,352
|
6,352
|
||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||
Government issued or guaranteed
|
–
|
67,432
|
67,432
|
|||||||||
Privately issued residential
|
–
|
677
|
677
|
|||||||||
Asset backed securities
|
–
|
143
|
143
|
|||||||||
Investment in CRA funds
|
14,364
|
–
|
14,364
|
|||||||||
Total available-for-sale securities
|
14,364
|
163,918
|
178,282
|
|||||||||
Derivative assets
|
||||||||||||
Interest rate cap
|
–
|
55
|
55
|
|||||||||
Total assets measured at fair value on a recurring basis
|
$
|
14,364
|
$
|
163,973
|
$
|
178,337
|
||||||
Derivative liabilities
|
||||||||||||
Interest rate swap
|
$
|
–
|
$
|
1,927
|
$
|
1,927
|
||||||
December 31, 2011
|
||||||||||||
Securities available-for-sale
|
||||||||||||
U.S. Treasury and other U.S. government corporations and agencies
|
$
|
—
|
$
|
92,199
|
$
|
92,199
|
||||||
Obligations of state and political subdivisions
|
—
|
5,706
|
5,706
|
|||||||||
Corporate
|
—
|
6,141
|
6,141
|
|||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||
Government issued or guaranteed
|
—
|
53,739
|
53,739
|
|||||||||
Privately issued residential
|
—
|
667
|
667
|
|||||||||
Asset backed securities
|
—
|
102
|
102
|
|||||||||
Investment in CRA funds
|
13,835
|
—
|
13,835
|
|||||||||
Total available-for-sale securities
|
13,835
|
158,554
|
172,389
|
|||||||||
Derivative assets
|
||||||||||||
Interest rate cap
|
—
|
194
|
194
|
|||||||||
Total assets measured at fair value on a recurring basis
|
$
|
13,835
|
$
|
158,748
|
$
|
172,583
|
||||||
Derivative liabilities
|
||||||||||||
Interest rate swap
|
$
|
—
|
$
|
1,992
|
$
|
1,992
|
As of September 30, 2012
|
As of December 31, 2011
|
|||||||||||||||
Level 2
|
Level 3
|
Level 2
|
Level 3
|
|||||||||||||
Assets
|
||||||||||||||||
Goodwill
|
$
|
—
|
$
|
14,327
|
$
|
—
|
$
|
14,327
|
||||||||
Foreclosed assets
|
—
|
7,915
|
—
|
19,018
|
||||||||||||
Impaired loans (1)
|
9,704
|
—
|
15,696
|
—
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Losses related to:
|
||||||||||||||||
Goodwill
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Foreclosed assets (1)
|
598
|
948
|
1,520
|
1,591
|
||||||||||||
Impaired loans (2)
|
—
|
369
|
451
|
3,905
|
As of September 30, 2012
|
As of December 31, 2011
|
|||||||||||||||
Carrying or
Contract Amount
|
Estimated
Fair Value
|
Carrying or
Contract Amount
|
Estimated
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Level 2 inputs:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
174,911
|
$
|
174,911
|
$
|
193,609
|
$
|
193,609
|
||||||||
Investment securities held-to-maturity
|
4,046
|
4,772
|
4,046
|
4,536
|
||||||||||||
Other investments
|
5,774
|
5,774
|
6,484
|
6,484
|
||||||||||||
Loans held-for-sale
|
—
|
—
|
1,200
|
1,498
|
||||||||||||
Cash value of bank owned life insurance
|
32,456
|
32,456
|
31,427
|
31,427
|
||||||||||||
Accrued interest receivable
|
3,938
|
3,938
|
4,327
|
4,327
|
||||||||||||
Level 3 inputs:
|
||||||||||||||||
Loans held-for-investment, net
|
1,071,313
|
1,051,039
|
1,015,095
|
968,434
|
||||||||||||
Financial Liabilities
|
||||||||||||||||
Level 2 inputs:
|
||||||||||||||||
Deposit transaction accounts
|
811,781
|
811,781
|
744,833
|
744,833
|
||||||||||||
Junior subordinated debentures
|
36,083
|
36,083
|
36,083
|
36,083
|
||||||||||||
Accrued interest payable
|
258
|
258
|
310
|
310
|
||||||||||||
Level 3 inputs:
|
||||||||||||||||
Time deposits
|
453,277
|
453,277
|
506,742
|
511,050
|
||||||||||||
Other borrowings
|
26,000
|
25,991
|
26,315
|
26,206
|
||||||||||||
Off-balance sheet financial instruments
|
||||||||||||||||
Unfunded loan commitments, including unfunded lines of credit
|
—
|
173
|
—
|
236
|
||||||||||||
Standby letters of credit
|
—
|
45
|
—
|
69
|
•
|
changes in the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on the Company's loan portfolio and allowance for loan losses;
|
•
|
changes in interest rates and market prices, which could reduce the Company’s net interest margins, asset valuations and expense expectations;
|
•
|
changes in the levels of loan prepayments and the resulting effects on the value of the Company’s loan portfolio;
|
•
|
changes in local economic and business conditions which adversely affect the ability of the Company’s customers to transact profitable business with the Company, including the ability of borrowers to repay their loans according to their terms or a change in the value of the related collateral;
|
•
|
increased competition for deposits and loans adversely affecting rates and terms;
|
•
|
the concentration of the Company’s loan portfolio in loans collateralized by real estate;
|
•
|
the Company’s ability to raise additional capital;
|
•
|
the effect of MetroBank’s compliance, or failure to comply within stated deadlines, of the provisions of the formal agreement with the OCC;
|
•
|
the timing, impact and other uncertainties of the Company’s ability to enter new markets successfully and capitalize on growth opportunities;
|
•
|
increased credit risk in the Company’s assets and increased operating risk caused by a material change in commercial, consumer and/or real estate loans as a percentage of the total loan portfolio;
|
•
|
incorrect assumptions underlying the establishment of and provisions made to the allowance for loan losses;
|
•
|
increases in the level of nonperforming assets;
|
•
|
the incurrence and possible impairment of goodwill associated with an acquisition, and possible adverse short-term effects on the results of operations;
|
•
|
changes in the availability of funds resulting in increased costs or reduced liquidity;
|
•
|
an inability to fully realize the Company’s net deferred tax asset;
|
•
|
a deterioration or downgrade in the credit quality and credit agency ratings of the securities in the Company’s securities portfolio;
|
•
|
increased asset levels and changes in the composition of assets and the resulting impact on the Company’s capital levels and regulatory capital ratios;
|
•
|
potential environmental risk and associated cost on the Company's foreclosed real estate assets;
|
•
|
the Company’s ability to acquire, operate and maintain cost effective and efficient systems without incurring unexpectedly difficult or expensive but necessary technological changes;
|
•
|
increases in FDIC deposit insurance assessments;
|
•
|
government intervention in the U.S. financial system;
|
•
|
the loss of senior management or operating personnel and the potential inability to hire qualified personnel at reasonable compensation levels;
|
•
|
changes in statutes and government regulations or their interpretations applicable to bank holding companies and the Company’s present and future banking and other subsidiaries, including changes in tax requirements and tax rates;
|
•
|
the potential payment of interest on commercial demand deposit accounts in order to effectively complete for clients;
|
•
|
adverse conditions in Asia;
|
•
|
potential interruptions or breaches in security of the Company’s information systems; and
|
•
|
possible noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statues and regulations.
|
For The Three Months Ended September 30,
|
|||||||||||||||||||||
2012
|
2011
|
||||||||||||||||||||
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate(1)
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate(1)
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Assets
|
|||||||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||||||
Loans
|
$
|
1,066,352
|
$
|
14,593
|
5.44
|
%
|
$
|
1,062,275
|
$
|
15,364
|
5.74
|
%
|
|||||||||
Taxable securities
|
156,216
|
1,020
|
2.60
|
154,764
|
1,025
|
2.63
|
|||||||||||||||
Tax-exempt securities
|
16,523
|
145
|
3.49
|
8,310
|
99
|
4.73
|
|||||||||||||||
Other investments (2)
|
5,825
|
42
|
2.87
|
6,650
|
41
|
2.45
|
|||||||||||||||
Federal funds sold and other short-term investments
|
167,811
|
229
|
0.54
|
170,823
|
239
|
0.56
|
|||||||||||||||
Total interest-earning assets
|
1,412,727
|
16,029
|
4.51
|
1,402,822
|
16,768
|
4.74
|
|||||||||||||||
Allowance for loan losses
|
(27,214
|
)
|
(30,718
|
)
|
|||||||||||||||||
Total interest-earning assets, net of allowance for loan losses
|
1,385,513
|
1,372,104
|
|||||||||||||||||||
Noninterest-earning assets
|
125,064
|
132,789
|
|||||||||||||||||||
Total assets
|
$
|
1,510,577
|
$
|
1,504,893
|
|||||||||||||||||
Liabilities and shareholders' equity
|
|||||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
67,545
|
$
|
20
|
0.12
|
%
|
$
|
65,145
|
$
|
36
|
0.22
|
%
|
|||||||||
Savings and money market accounts
|
446,282
|
488
|
0.44
|
419,541
|
764
|
0.72
|
|||||||||||||||
Time deposits
|
463,947
|
1,288
|
1.10
|
523,484
|
1,857
|
1.41
|
|||||||||||||||
Junior subordinated debentures
|
36,083
|
338
|
3.67
|
36,083
|
327
|
3.55
|
|||||||||||||||
Other borrowings
|
26,000
|
247
|
3.78
|
36,385
|
259
|
2.82
|
|||||||||||||||
Total interest-bearing liabilities
|
1,039,857
|
2,381
|
0.91
|
1,080,638
|
3,243
|
1.19
|
|||||||||||||||
Noninterest-bearing liabilities:
|
|||||||||||||||||||||
Noninterest-bearing demand deposits
|
277,707
|
241,394
|
|||||||||||||||||||
Other liabilities
|
19,643
|
17,466
|
|||||||||||||||||||
Total liabilities
|
1,337,207
|
1,339,498
|
|||||||||||||||||||
Shareholders' equity
|
173,370
|
165,395
|
|||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,510,577
|
$
|
1,504,893
|
|||||||||||||||||
Net interest income
|
$
|
13,648
|
$
|
13,525
|
|||||||||||||||||
Net interest spread
|
3.60
|
%
|
3.55
|
%
|
|||||||||||||||||
Net interest margin
|
3.84
|
%
|
3.83
|
%
|
(1)
|
Annualized.
|
(2)
|
Other investments include Federal Reserve Bank stock, Federal Home Loan Bank stock and investment in subsidiary trust.
|
For The Nine Months Ended September 30,
|
|||||||||||||||||||||
2012
|
2011
|
||||||||||||||||||||
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate(1)
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate(1)
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Assets
|
|||||||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||||||
Loans
|
$
|
1,058,782
|
$
|
44,346
|
5.59
|
%
|
$
|
1,086,860
|
$
|
46,696
|
5.74
|
%
|
|||||||||
Taxable securities
|
165,422
|
3,051
|
2.46
|
164,262
|
3,413
|
2.78
|
|||||||||||||||
Tax-exempt securities
|
14,695
|
407
|
3.70
|
8,369
|
296
|
4.73
|
|||||||||||||||
Other investments (2)
|
6,113
|
129
|
2.82
|
6,775
|
125
|
2.47
|
|||||||||||||||
Federal funds sold and other short-term investments
|
169,698
|
675
|
0.53
|
153,431
|
426
|
0.37
|
|||||||||||||||
Total interest-earning assets
|
1,414,710
|
48,608
|
4.59
|
1,419,697
|
50,956
|
4.80
|
|||||||||||||||
Allowance for loan losses
|
(27,948
|
)
|
(32,514
|
)
|
|||||||||||||||||
Total interest-earning assets, net of allowance for loan losses
|
1,386,762
|
1,387,183
|
|||||||||||||||||||
Noninterest-earning assets
|
125,905
|
130,714
|
|||||||||||||||||||
Total assets
|
$
|
1,512,667
|
$
|
1,517,897
|
|||||||||||||||||
Liabilities and shareholders' equity
|
|||||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
65,950
|
$
|
62
|
0.13
|
%
|
$
|
61,791
|
$
|
163
|
0.35
|
%
|
|||||||||
Savings and money market accounts
|
449,043
|
1,667
|
0.50
|
413,618
|
2,484
|
0.80
|
|||||||||||||||
Time deposits
|
478,957
|
4,194
|
1.17
|
550,591
|
6,057
|
1.47
|
|||||||||||||||
Junior subordinated debentures
|
36,083
|
1,007
|
3.67
|
36,083
|
976
|
3.57
|
|||||||||||||||
Other borrowings
|
26,002
|
741
|
3.81
|
45,008
|
803
|
2.39
|
|||||||||||||||
Total interest-bearing liabilities
|
1,056,035
|
7,671
|
0.97
|
1,107,091
|
10,483
|
1.27
|
|||||||||||||||
Noninterest-bearing liabilities:
|
|||||||||||||||||||||
Noninterest-bearing demand deposits
|
262,439
|
231,937
|
|||||||||||||||||||
Other liabilities
|
18,050
|
16,129
|
|||||||||||||||||||
Total liabilities
|
1,336,524
|
1,355,157
|
|||||||||||||||||||
Shareholders' equity
|
176,143
|
162,740
|
|||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,512,667
|
$
|
1,517,897
|
|||||||||||||||||
Net interest income
|
$
|
40,937
|
$
|
40,473
|
|||||||||||||||||
Net interest spread
|
3.62
|
%
|
3.53
|
%
|
|||||||||||||||||
Net interest margin
|
3.87
|
%
|
3.81
|
%
|
(1)
|
Annualized.
|
(2)
|
Other investments include Federal Reserve Bank stock, Federal Home Loan Bank stock and investment in subsidiary trust.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2012 vs 2011
|
2012 vs 2011
|
|||||||||||||||||||||||
Increase (Decrease
Due to)
|
Increase (Decrease)
Due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$
|
17
|
$
|
(788
|
)
|
$
|
(771
|
)
|
$
|
(1,164
|
)
|
$
|
(1,186
|
)
|
$
|
(2,350
|
)
|
|||||||
Taxable securities
|
7
|
(12
|
)
|
(5
|
)
|
27
|
(389
|
)
|
(362
|
)
|
||||||||||||||
Tax-exempt securities
|
97
|
(51
|
)
|
46
|
224
|
(113
|
)
|
111
|
||||||||||||||||
Other investments
|
(5
|
)
|
6
|
1
|
(12
|
)
|
16
|
4
|
||||||||||||||||
Federal funds sold and other short-term investments
|
(5
|
)
|
(5
|
)
|
(10
|
)
|
46
|
203
|
249
|
|||||||||||||||
Total decrease in interest income
|
111
|
(850
|
)
|
(739
|
)
|
(879
|
)
|
(1,469
|
)
|
(2,348
|
)
|
|||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
1
|
(17
|
)
|
(16
|
)
|
11
|
(112
|
)
|
(101
|
)
|
||||||||||||||
Savings and money market accounts
|
46
|
(322
|
)
|
(276
|
)
|
215
|
(1,032
|
)
|
(817
|
)
|
||||||||||||||
Time deposits
|
(216
|
)
|
(353
|
)
|
(569
|
)
|
(783
|
)
|
(1,080
|
)
|
(1,863
|
)
|
||||||||||||
Junior subordinated debentures
|
-
|
11
|
11
|
4
|
27
|
31
|
||||||||||||||||||
Other borrowings
|
(74
|
)
|
62
|
(12
|
)
|
(339
|
)
|
277
|
(62
|
)
|
||||||||||||||
Total decrease in interest expense
|
(243
|
)
|
(619
|
)
|
(862
|
)
|
(892
|
)
|
(1,920
|
)
|
(2,812
|
)
|
||||||||||||
Increase (decrease) in net interest income
|
$
|
354
|
$
|
(231
|
)
|
$
|
123
|
$
|
13
|
$
|
451
|
$
|
464
|
As of September 30, 2012
|
As of December 31, 2011
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial and industrial
|
$
|
377,054
|
34.30
|
%
|
$
|
345,265
|
32.98
|
%
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
40,391
|
3.67
|
42,682
|
4.08
|
||||||||||||
Commercial
|
667,162
|
60.68
|
644,727
|
61.58
|
||||||||||||
707,553
|
64.35
|
687,409
|
65.66
|
|||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
4,087
|
0.37
|
6,984
|
0.67
|
||||||||||||
Commercial
|
3,824
|
0.35
|
3,324
|
0.32
|
||||||||||||
7,911
|
0.72
|
10,308
|
0.99
|
|||||||||||||
Consumer and other
|
6,955
|
0.63
|
3,936
|
0.37
|
||||||||||||
Gross loans
|
1,099,473
|
100.00
|
%
|
1,046,918
|
100.00
|
%
|
||||||||||
Unearned discounts, interest and deferred fees
|
(2,618
|
)
|
(2,302
|
)
|
||||||||||||
Total loans
|
1,096,855
|
1,044,616
|
||||||||||||||
Allowance for loan losses
|
(25,542
|
)
|
(28,321
|
)
|
||||||||||||
Loans, net
|
$
|
1,071,313
|
$
|
1,016,295
|
As of
September 30,
2012
|
As of
December 31,
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans (1)
|
$
|
31,454
|
$
|
31,099
|
||||
Accruing loans 90 days or more past due (1)
|
—
|
—
|
||||||
Troubled debt restructurings – accruing (1)
|
4,126
|
—
|
||||||
Troubled debt restructurings – nonaccruing (1)
|
4,707
|
13,763
|
||||||
Other real estate (“ORE”)
|
7,915
|
19,018
|
||||||
Total nonperforming assets
|
$
|
48,202
|
$
|
63,880
|
||||
Total nonperforming assets to total assets
|
3.16
|
%
|
4.27
|
%
|
||||
Total nonperforming assets to total loans and ORE
|
4.36
|
%
|
6.01
|
%
|
As of September 30, 2012
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
7,334
|
$
|
7,343
|
$
|
—
|
$
|
5,752
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
184
|
184
|
—
|
216
|
||||||||||||
Commercial
|
22,260
|
22,260
|
—
|
19,859
|
||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
2,345
|
2,345
|
—
|
1,172
|
||||||||||||
Commercial
|
3,147
|
3,147
|
—
|
3,226
|
||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
23
|
$
|
23
|
$
|
23
|
$
|
3,183
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
4,999
|
4,986
|
953
|
6,836
|
||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$
|
7,357
|
$
|
7,366
|
$
|
23
|
$
|
8,935
|
||||||||
Real estate mortgage
|
27,443
|
27,430
|
953
|
26,911
|
||||||||||||
Real estate construction
|
5,492
|
5,492
|
—
|
4,398
|
As of December 31, 2011
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
3,647
|
$
|
3,652
|
$
|
—
|
$
|
8,901
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
251
|
251
|
—
|
263
|
||||||||||||
Commercial
|
19,922
|
19,913
|
—
|
26,256
|
||||||||||||
Real estate construction:
|
||||||||||||||||
Commercial
|
3,324
|
3,324
|
—
|
831
|
||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
7,018
|
7,025
|
224
|
4,835
|
||||||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
10,678
|
10,696
|
710
|
14,042
|
||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$
|
10,665
|
$
|
10,677
|
$
|
224
|
$
|
13,736
|
||||||||
Real estate mortgage
|
30,851
|
30,860
|
710
|
40,561
|
||||||||||||
Real estate construction
|
3,324
|
3,324
|
—
|
831
|
As of and for the
Three Months Ended September 30,
|
||||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Average total loans outstanding for the period
|
$
|
1,066,352
|
$
|
1,062,275
|
||||
Total loans outstanding at end of period
|
$
|
1,096,855
|
$
|
1,059,165
|
||||
Allowance for loan losses at beginning of period
|
$
|
27,311
|
$
|
30,393
|
||||
Provision for loan losses
|
(300
|
)
|
875
|
|||||
Charge-offs:
|
||||||||
Commercial and industrial
|
(1,464
|
)
|
(597
|
)
|
||||
Real estate mortgage
|
(130
|
)
|
(1,350
|
)
|
||||
Real estate construction
|
—
|
—
|
||||||
Consumer and other
|
(31
|
)
|
(18
|
)
|
||||
Total charge-offs
|
(1,625
|
)
|
(1,965
|
)
|
||||
Recoveries:
|
||||||||
Commercial and industrial
|
32
|
261
|
||||||
Real estate mortgage
|
118
|
395
|
||||||
Real estate construction
|
—
|
6
|
||||||
Consumer and other
|
6
|
4
|
||||||
Total recoveries
|
156
|
666
|
||||||
Net charge-offs
|
(1,469
|
)
|
(1,299
|
)
|
||||
Allowance for loan losses at end of period
|
25,542
|
29,969
|
||||||
Reserve for unfunded lending commitments at beginning of period
|
957
|
1,093
|
||||||
Provision for unfunded lending commitments
|
—
|
81
|
||||||
Reserve for unfunded lending commitments at end of period
|
957
|
1,174
|
||||||
Allowance for credit losses at end of period
|
$
|
26,499
|
$
|
31,143
|
||||
Ratio of net charge-offs to end of period total loans
|
(0.13)
|
%
|
(0.12)
|
%
|
As of and for the
Nine Months Ended September 30,
|
||||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Average total loans outstanding for the period
|
$
|
1,058,782
|
$
|
1,086,860
|
||||
Total loans outstanding at end of period
|
$
|
1,096,855
|
$
|
1,059,165
|
||||
Allowance for loan losses at beginning of period
|
$
|
28,321
|
$
|
33,757
|
||||
Provision for loan losses
|
300
|
2,450
|
||||||
Charge-offs:
|
||||||||
Commercial and industrial
|
(2,258
|
)
|
(3,222
|
)
|
||||
Real estate mortgage
|
(1,415
|
)
|
(4,673
|
)
|
||||
Real estate construction
|
(683
|
)
|
—
|
|||||
Consumer and other
|
(92
|
)
|
(49
|
)
|
||||
Total charge-offs
|
(4,448
|
)
|
(7,944
|
)
|
||||
Recoveries:
|
||||||||
Commercial and industrial
|
397
|
496
|
||||||
Real estate mortgage
|
933
|
460
|
||||||
Real estate construction
|
19
|
722
|
||||||
Consumer and other
|
20
|
28
|
||||||
Total recoveries
|
1,369
|
1,706
|
||||||
Net charge-offs
|
(3,079
|
)
|
(6,238
|
)
|
||||
Allowance for loan losses at end of period
|
25,542
|
29,969
|
||||||
Reserve for unfunded lending commitments at beginning of period
|
1,012
|
602
|
||||||
Provision for unfunded lending commitments
|
(55
|
)
|
572
|
|||||
Reserve for unfunded lending commitments at end of period
|
957
|
1,174
|
||||||
Allowance for credit losses at end of period
|
$
|
26,499
|
$
|
31,143
|
||||
Ratio of allowance for loan losses to end of period total loans
|
2.33
|
%
|
2.83
|
%
|
||||
Ratio of net charge-offs to end of period total loans
|
(0.13
|
)%
|
(0.59
|
)%
|
||||
Ratio of allowance for loan losses to end of period total nonperforming loans (1)
|
63.40
|
%
|
61.98
|
%
|
As of and for the Nine Months Ended September 30, 2012
|
As of and for the Year
Ended December 31, 2011
|
|||||||
(Dollars in thousands)
|
||||||||
FHLB Notes and Advances:
|
||||||||
at end of period
|
$
|
—
|
$
|
—
|
||||
average during the period
|
—
|
14,548
|
||||||
maximum month-end balance during the period
|
—
|
30,000
|
||||||
Interest rate at end of period
|
—
|
%
|
—
|
%
|
||||
Interest rate during the period
|
—
|
0.44
|
||||||
Security Repurchase Agreements:
|
||||||||
at end of period
|
$
|
25,000
|
$
|
25,000
|
||||
average during the period
|
25,000
|
25,000
|
||||||
maximum month-end balance during the period
|
25,000
|
25,000
|
||||||
Interest rate at end of period
|
3.71
|
%
|
3.71
|
%
|
||||
Interest rate during the period
|
3.71
|
3.71
|
||||||
Unsecured debentures:
|
||||||||
at end of period
|
$
|
1,000
|
$
|
1,000
|
||||
average during the period
|
1,000
|
1,000
|
||||||
maximum month-end balance during the period
|
1,000
|
1,000
|
||||||
Interest rate at end of period
|
5.00
|
%
|
5.00
|
%
|
||||
Interest rate during the period
|
5.00
|
5.00
|
||||||
Federal Reserve TT&L:
|
||||||||
at end of period
|
$
|
—
|
$
|
315
|
||||
average during the period
|
2
|
467
|
||||||
maximum month-end balance during the period
|
—
|
742
|
Minimum Required
For Capital
Adequacy Purposes
|
To Be Categorized
as Well Capitalized
Under Prompt Corrective Action Provisions
|
Actual Ratio At
September 30, 2012
|
|||||||
The Company
|
|||||||||
Leverage ratio
|
4.00
|
%
|
N/A
|
%
|
12.90
|
%
|
|||
Tier 1 risk-based capital ratio
|
4.00
|
N/A
|
16.41
|
||||||
Risk-based capital ratio
|
8.00
|
N/A
|
17.69
|
||||||
MetroBank
|
|||||||||
Leverage ratio
|
4.00
|
%
|
5.00
|
%
|
12.62
|
%
|
|||
Tier 1 risk-based capital ratio
|
4.00
|
6.00
|
16.35
|
||||||
Risk-based capital ratio
|
8.00
|
10.00
|
17.64
|
||||||
Metro United
|
|||||||||
Leverage ratio
|
4.00
|
%
|
5.00
|
%
|
12.48
|
%
|
|||
Tier 1 risk-based capital ratio
|
4.00
|
6.00
|
15.22
|
||||||
Risk-based capital ratio
|
8.00
|
10.00
|
16.49
|
Period
|
Total Number of Shares Purchased (1)
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plan (2)
|
Maximum Number of Shares That May Yet Be Purchased Under the Plan (2)
|
||||||||||||
July 1, 2012 to July 31, 2012
|
1,997
|
$ |
10.56
|
N/A
|
N/A
|
|||||||||||
Total
|
1,997
|
$
|
10.56
|
N/A
|
N/A
|
(1)
|
All shares of common stock reported in the table above were repurchased by the Company at the fair market value of the Company’s common stock in connection with the satisfaction of tax withholding obligations under restricted stock agreements between the Company and certain key employees and directors.
|
(2)
|
The Company has no publicly announced plans or programs.
|
Exhibit
|
||
Number
|
Identification of Exhibit
|
|
3.1
|
Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1 (Registration No. 333-62667) (the "Registration Statement")).
|
|
3.2
|
Articles of Amendment to Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008).
|
|
3.3
|
Statement of Designations establishing the terms of the Series A Preferred Stock of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).
|
|
3.4
|
Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 19, 2007).
|
|
4.1
|
Specimen form of certificate evidencing the Common Stock (incorporated herein by reference to Exhibit 4 to the Registration Statement).
|
|
4.2
|
Warrant, dated January 16, 2009, to purchase 771,429 shares of the Company's Common Stock (incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).
|
|
11
|
Computation of Earnings Per Common Share, included as Note 5 to the unaudited Condensed Consolidated Financial Statements of this Form 10-Q.
|
|
31.1*
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
31.2*
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
32.1**
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2**
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101*
|
Interactive Data File.
|
METROCORP BANCSHARES, INC.
|
|||
By:
|
/s/ George M. Lee
|
||
Date: November 9, 2012
|
George M. Lee
Executive Vice Chairman, President and
|
||
Chief Executive Officer (principal executive officer)
|
|||
Date: November 9, 2012
|
By:
|
/s/ David C. Choi
|
|
David C. Choi
|
|||
Chief Financial Officer (principal financial officer/
principal accounting officer)
|
Exhibit
Number |
Identification of Exhibit
|
|
3.1
|
Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1 (Registration No. 333-62667) (the "Registration Statement")).
|
|
3.2
|
Articles of Amendment to Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008).
|
|
3.3
|
Statement of Designations establishing the terms of the Series A Preferred Stock of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).
|
|
3.4
|
Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 19, 2007).
|
|
4.1
|
Specimen form of certificate evidencing the Common Stock (incorporated herein by reference to Exhibit 4 to the Registration Statement).
|
|
4.2
|
Warrant, dated January 16, 2009, to purchase 771,429 shares of the Company's Common Stock (incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).
|
|
11
|
Computation of Earnings Per Common Share, included as Note 5 to the unaudited Condensed Consolidated Financial Statements of this Form 10-Q.
|
|
31.1*
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
31.2*
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
32.1**
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2**
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101*
|
Interactive Data File.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of MetroCorp Bancshares, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
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
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
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.
|
/s/ George M. Lee
|
|
George M. Lee
|
|
Executive Vice Chairman, President
|
|
and Chief Executive Officer |
1.
|
I have reviewed this quarterly report on Form 10-Q of MetroCorp Bancshares, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
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
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
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.
|
/s/ David C. Choi
|
|
David C. Choi
|
|
Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and operating results of the Company.
|
/s/ George M. Lee
|
|
George M. Lee
Executive Vice Chairman, President
and Chief Executive Officer
|
|
November 9, 2012
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and operating results of the Company.
|
/s/ David C. Choi
|
|
David C. Choi
|
|
Chief Financial Officer
|
|
November 9, 2012
|
Note 3 - Loans (Detail) - Classified By Major Type: (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
---|---|---|---|
Allowance for loan losses | $ 29,969 | ||
Loans, net | 1,071,313 | 1,016,295 | |
Commercial And Industrial [Member]
|
|||
Amount | 377,054 | 345,265 | |
Percent | 34.30% | 32.98% | |
Allowance for loan losses | 7,326 | ||
Real Estate Residential [Member]
|
|||
Amount | 40,391 | 42,682 | |
Percent | 3.67% | 4.08% | |
Real Estate Commercial [Member]
|
|||
Amount | 667,162 | 644,727 | |
Percent | 60.68% | 61.58% | |
Real Estate Mortgage Total [Member]
|
|||
Amount | 707,553 | 687,409 | |
Percent | 64.35% | 65.66% | |
Real Estate Construction Residential [Member]
|
|||
Amount | 4,087 | 6,984 | |
Percent | 0.37% | 0.67% | |
Real Estate Construction Commercial [Member]
|
|||
Amount | 3,824 | 3,324 | |
Percent | 0.35% | 0.32% | |
Real Estate Construction Total [Member]
|
|||
Amount | 7,911 | 10,308 | |
Percent | 0.72% | 0.99% | |
Consumer Other Financing Receivable [Member]
|
|||
Amount | 6,955 | 3,936 | |
Percent | 0.63% | 0.37% | |
Gross Loans [Member]
|
|||
Amount | 1,099,473 | 1,046,918 | |
Percent | 100.00% | 100.00% | |
Unearned Income [Member]
|
|||
Amount | (2,618) | (2,302) | |
Total Loans [Member]
|
|||
Amount | 1,096,855 | 1,044,616 | |
Allowance For Loan Losses [Member]
|
|||
Allowance for loan losses | $ (25,542) | $ (28,321) |
Note 9 - Accumulated Other Comprehensive Income (Detail) - Tax Effects Allocated to Each Component of Other Comprehensive Income (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Before Tax Amount | $ 955 | $ 1,136 | $ 1,701 | $ 2,800 |
Tax Expense (Benefit) | 344 | 409 | 613 | 1,008 |
Net of Tax Amount | 611 | 727 | 1,088 | 1,792 |
Change in Accumulated Gain (Loss) on Effective Cash Flow Derivatives [Member]
|
||||
Before Tax Amount | 12 | (464) | 65 | (608) |
Tax Expense (Benefit) | 4 | (167) | 23 | (219) |
Net of Tax Amount | 8 | (297) | 42 | (389) |
Securities With OTTI Charges During the Period [Member]
|
||||
Before Tax Amount | (14) | (32) | (101) | (215) |
Tax Expense (Benefit) | (5) | (11) | (36) | (77) |
Net of Tax Amount | (9) | (21) | (65) | (138) |
OTTI Charges Recognized in Net Income [Member]
|
||||
Before Tax Amount | (7) | (30) | (84) | (195) |
Tax Expense (Benefit) | (3) | (10) | (30) | (70) |
Net of Tax Amount | (4) | (20) | (54) | (125) |
Net Unrealized Losses on Investment Securities With OTTI [Member]
|
||||
Before Tax Amount | (7) | (2) | ||
Tax Expense (Benefit) | (2) | (1) | ||
Net of Tax Amount | (5) | (1) | ||
Unrealized Holding Gain Arising During the Period [Member]
|
||||
Before Tax Amount | 974 | 1,805 | 1,761 | 3,557 |
Tax Expense (Benefit) | 351 | 650 | 635 | 1,280 |
Net of Tax Amount | 623 | 1,155 | 1,126 | 2,277 |
Reclassification Adjustment for Gain (Loss) Included in Net Income [Member]
|
||||
Before Tax Amount | 24 | 203 | 108 | 129 |
Tax Expense (Benefit) | 9 | 73 | 39 | 46 |
Net of Tax Amount | 15 | 130 | 69 | 83 |
Net Unrealized Gains on Investment Securities [Member]
|
||||
Before Tax Amount | 950 | 1,602 | 1,653 | 3,428 |
Tax Expense (Benefit) | 342 | 577 | 596 | 1,234 |
Net of Tax Amount | $ 608 | $ 1,025 | $ 1,057 | $ 2,194 |
Note 4 - Goodwill (Detail) - Changes in the Carrying amount of the Company’s Goodwill (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Sep. 30, 2012
|
Dec. 31, 2011
|
|
Goodwill | $ 21,827 | $ 21,827 | $ 21,827 |
Accumulated impairment losses | 4,500 | 7,500 | 7,500 |
Net goodwill | 17,327 | 14,327 | 14,327 |
Impairment losses | $ 3,000 |
Note 9 - Accumulated Other Comprehensive Income (Detail) - Tax Effects Allocated to Each Component of Other Comprehensive Income (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Before Tax Amount | $ 955 | $ 1,136 | $ 1,701 | $ 2,800 |
Tax Expense (Benefit) | 344 | 409 | 613 | 1,008 |
Net of Tax Amount | 611 | 727 | 1,088 | 1,792 |
Change in Accumulated Gain (Loss) on Effective Cash Flow Derivatives [Member]
|
||||
Before Tax Amount | 12 | (464) | 65 | (608) |
Tax Expense (Benefit) | 4 | (167) | 23 | (219) |
Net of Tax Amount | 8 | (297) | 42 | (389) |
Securities With OTTI Charges During the Period [Member]
|
||||
Before Tax Amount | (14) | (32) | (101) | (215) |
Tax Expense (Benefit) | (5) | (11) | (36) | (77) |
Net of Tax Amount | (9) | (21) | (65) | (138) |
OTTI Charges Recognized in Net Income [Member]
|
||||
Before Tax Amount | (7) | (30) | (84) | (195) |
Tax Expense (Benefit) | (3) | (10) | (30) | (70) |
Net of Tax Amount | (4) | (20) | (54) | (125) |
Net Unrealized Losses On Investment Securities With OTTI [Member]
|
||||
Before Tax Amount | (17) | (20) | ||
Tax Expense (Benefit) | (6) | (7) | ||
Net of Tax Amount | (11) | (13) | ||
Unrealized Holding Gain Arising During the Period [Member]
|
||||
Before Tax Amount | 974 | 1,805 | 1,761 | 3,557 |
Tax Expense (Benefit) | 351 | 650 | 635 | 1,280 |
Net of Tax Amount | 623 | 1,155 | 1,126 | 2,277 |
Reclassification Adjustment for Gain (Loss) Included in Net Income [Member]
|
||||
Before Tax Amount | 24 | 203 | 108 | 129 |
Tax Expense (Benefit) | 9 | 73 | 39 | 46 |
Net of Tax Amount | 15 | 130 | 69 | 83 |
Net Unrealized Gains on Investment Securities [Member]
|
||||
Before Tax Amount | 950 | 1,602 | 1,653 | 3,428 |
Tax Expense (Benefit) | 342 | 577 | 596 | 1,234 |
Net of Tax Amount | $ 608 | $ 1,025 | $ 1,057 | $ 2,194 |
Note 3 - Loans (Detail) - Allowance For Loan Losses And Recorded Investment In Loans By Portfolio Segment (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
Sep. 30, 2011
Commercial And Industrial [Member]
Period Beginning [Member]
Prior Period [Member]
|
Sep. 30, 2012
Commercial And Industrial [Member]
Period Beginning [Member]
|
Jun. 30, 2012
Commercial And Industrial [Member]
Period Beginning [Member]
|
Sep. 30, 2011
Commercial And Industrial [Member]
Period Beginning [Member]
|
Sep. 30, 2011
Commercial And Industrial [Member]
Period Ending [Member]
Prior Period [Member]
|
Sep. 30, 2012
Commercial And Industrial [Member]
Period Ending [Member]
|
Sep. 30, 2011
Commercial And Industrial [Member]
Period Ending [Member]
|
Sep. 30, 2012
Commercial And Industrial [Member]
|
Sep. 30, 2011
Commercial And Industrial [Member]
|
Sep. 30, 2012
Commercial And Industrial [Member]
|
Sep. 30, 2011
Commercial And Industrial [Member]
|
Dec. 31, 2011
Commercial And Industrial [Member]
|
Sep. 30, 2011
Real Estate Mortgage [Member]
Period Beginning [Member]
Prior Period [Member]
|
Sep. 30, 2012
Real Estate Mortgage [Member]
Period Beginning [Member]
|
Jun. 30, 2012
Real Estate Mortgage [Member]
Period Beginning [Member]
|
Sep. 30, 2011
Real Estate Mortgage [Member]
Period Beginning [Member]
|
Sep. 30, 2011
Real Estate Mortgage [Member]
Period Ending [Member]
Prior Period [Member]
|
Sep. 30, 2012
Real Estate Mortgage [Member]
Period Ending [Member]
|
Sep. 30, 2011
Real Estate Mortgage [Member]
Period Ending [Member]
|
Sep. 30, 2012
Real Estate Mortgage [Member]
|
Sep. 30, 2011
Real Estate Mortgage [Member]
|
Sep. 30, 2012
Real Estate Mortgage [Member]
|
Sep. 30, 2011
Real Estate Mortgage [Member]
|
Dec. 31, 2011
Real Estate Mortgage [Member]
|
Sep. 30, 2011
Real Estate Construction [Member]
Period Beginning [Member]
Prior Period [Member]
|
Sep. 30, 2012
Real Estate Construction [Member]
Period Beginning [Member]
|
Jun. 30, 2012
Real Estate Construction [Member]
Period Beginning [Member]
|
Sep. 30, 2011
Real Estate Construction [Member]
Period Beginning [Member]
|
Sep. 30, 2012
Real Estate Construction [Member]
Period Ending [Member]
|
Sep. 30, 2011
Real Estate Construction [Member]
Period Ending [Member]
|
Sep. 30, 2012
Real Estate Construction [Member]
|
Sep. 30, 2011
Real Estate Construction [Member]
|
Sep. 30, 2012
Real Estate Construction [Member]
|
Sep. 30, 2011
Real Estate Construction [Member]
|
Dec. 31, 2011
Real Estate Construction [Member]
|
Sep. 30, 2011
Consumer And Other [Member]
Period Beginning [Member]
Prior Period [Member]
|
Sep. 30, 2012
Consumer And Other [Member]
Period Beginning [Member]
|
Jun. 30, 2012
Consumer And Other [Member]
Period Beginning [Member]
|
Sep. 30, 2011
Consumer And Other [Member]
Period Beginning [Member]
|
Sep. 30, 2012
Consumer And Other [Member]
Period Ending [Member]
|
Sep. 30, 2011
Consumer And Other [Member]
Period Ending [Member]
|
Sep. 30, 2012
Consumer And Other [Member]
|
Sep. 30, 2011
Consumer And Other [Member]
|
Sep. 30, 2012
Consumer And Other [Member]
|
Sep. 30, 2011
Consumer And Other [Member]
|
Dec. 31, 2011
Consumer And Other [Member]
|
Sep. 30, 2011
Unallocated [Member]
Period Beginning [Member]
Prior Period [Member]
|
Sep. 30, 2012
Unallocated [Member]
Period Beginning [Member]
|
Jun. 30, 2012
Unallocated [Member]
Period Beginning [Member]
|
Sep. 30, 2011
Unallocated [Member]
Period Beginning [Member]
|
Sep. 30, 2012
Unallocated [Member]
Period Ending [Member]
|
Sep. 30, 2011
Unallocated [Member]
Period Ending [Member]
|
Sep. 30, 2012
Unallocated [Member]
|
Sep. 30, 2011
Unallocated [Member]
|
Sep. 30, 2012
Unallocated [Member]
|
Sep. 30, 2011
Unallocated [Member]
|
Sep. 30, 2011
Period Beginning [Member]
Prior Period [Member]
|
Sep. 30, 2012
Period Beginning [Member]
|
Jun. 30, 2012
Period Beginning [Member]
|
Sep. 30, 2011
Period Beginning [Member]
|
Sep. 30, 2011
Period Ending [Member]
Prior Period [Member]
|
Sep. 30, 2012
Period Ending [Member]
|
Sep. 30, 2011
Period Ending [Member]
|
|
Allowance for loan losses | $ 8,187 | $ 7,966 | $ 9,146 | $ 7,136 | $ 8,636 | $ 7,325 | $ 22,016 | $ 19,213 | $ 16,151 | $ 20,590 | $ 15,565 | $ 19,710 | $ 1,993 | $ 320 | $ 185 | $ 490 | $ 179 | $ 493 | $ 194 | $ 137 | $ 106 | $ 152 | $ 131 | $ 151 | $ 1,367 | $ 685 | $ 1,723 | $ 2,025 | $ 1,031 | $ 2,289 | $ 33,757 | $ 28,321 | $ 27,311 | $ 30,393 | $ 25,542 | $ 29,969 | ||||||||||||||||||||||||||||||||
Ending allowance for loan losses balance for loans individually evaluated for impairment | 976 | 1,024 | 976 | 1,024 | 275 | 23 | 275 | 23 | 275 | 749 | 953 | 749 | 953 | 749 | 1,024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending allowance for loan losses balance for loans collectively evaluated for impairment | 23,535 | 26,656 | 23,535 | 26,656 | 8,613 | 7,051 | 8,613 | 7,051 | 14,612 | 18,961 | 14,612 | 18,961 | 179 | 493 | 179 | 493 | 131 | 151 | 131 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | 1,100,060 | 1,062,565 | 1,100,060 | 1,062,565 | 1,048,006 | 377,309 | 346,254 | 377,309 | 346,254 | 345,565 | 708,121 | 705,757 | 708,121 | 705,757 | 688,352 | 7,907 | 6,925 | 7,907 | 6,925 | 10,335 | 6,723 | 3,629 | 6,723 | 3,629 | 3,754 | |||||||||||||||||||||||||||||||||||||||||||
Recorded investment in loans individually | 40,291 | 48,270 | 40,291 | 48,270 | 7,357 | 13,520 | 7,357 | 13,520 | 27,441 | 34,749 | 27,441 | 34,749 | 5,492 | 5,492 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded investment in loans collectively | 1,059,769 | 1,014,295 | 1,059,769 | 1,014,295 | 369,952 | 332,734 | 369,952 | 332,734 | 680,680 | 671,008 | 680,680 | 671,008 | 2,415 | 6,925 | 2,415 | 6,925 | 6,722 | 3,628 | 6,722 | 3,628 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | (300) | 875 | 300 | 2,450 | 922 | 527 | 2,531 | 1,865 | (574) | 74 | (3,166) | 1,907 | (6) | (2) | 523 | (2,222) | 50 | 12 | 66 | (22) | (692) | 264 | 346 | 922 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (1,625) | (1,965) | (4,448) | (7,944) | (1,464) | (597) | (2,258) | (3,222) | (130) | (1,350) | (1,415) | (4,673) | (683) | (31) | (18) | (92) | (49) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 156 | 666 | 1,369 | 1,706 | 32 | 260 | 397 | 496 | 118 | 396 | 933 | 460 | 5 | 19 | 722 | 6 | 5 | 20 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | $ 29,969 | $ 29,969 | $ 8,187 | $ 7,966 | $ 9,146 | $ 7,136 | $ 8,636 | $ 7,325 | $ 7,326 | $ 7,326 | $ 22,016 | $ 19,213 | $ 16,151 | $ 20,590 | $ 15,565 | $ 19,710 | $ 19,710 | $ 19,710 | $ 1,993 | $ 320 | $ 185 | $ 490 | $ 179 | $ 493 | $ 493 | $ 493 | $ 194 | $ 137 | $ 106 | $ 152 | $ 131 | $ 151 | $ 151 | $ 151 | $ 1,367 | $ 685 | $ 1,723 | $ 2,025 | $ 1,031 | $ 2,289 | $ 2,289 | $ 2,289 | $ 33,757 | $ 28,321 | $ 27,311 | $ 30,393 | $ 25,542 | $ 29,969 |
Note 2 - Securities (Detail) - The Amortized Cost And Approximate Fair Value Of Securities Is As Follows: (USD $)
|
6 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Sep. 30, 2012
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
US States and Political Subdivisions Debt Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
US States and Political Subdivisions Debt Securities [Member]
Fair Value [Member]
|
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Fair Value [Member]
|
Sep. 30, 2012
Held To Maturity [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Held To Maturity [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
Held To Maturity [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Held To Maturity [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
Held To Maturity [Member]
Fair Value [Member]
|
Dec. 31, 2011
Held To Maturity [Member]
Fair Value [Member]
|
Sep. 30, 2012
Federal Reserve Bank Stock [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Federal Reserve Bank Stock [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
Federal Reserve Bank Stock [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Federal Reserve Bank Stock [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
Federal Reserve Bank Stock [Member]
Unrealized Losses [Member]
|
Dec. 31, 2011
Federal Reserve Bank Stock [Member]
Unrealized Losses [Member]
|
Sep. 30, 2012
Federal Reserve Bank Stock [Member]
OTTI [Member]
|
Dec. 31, 2011
Federal Reserve Bank Stock [Member]
OTTI [Member]
|
Sep. 30, 2012
Federal Reserve Bank Stock [Member]
Fair Value [Member]
|
Dec. 31, 2011
Federal Reserve Bank Stock [Member]
Fair Value [Member]
|
Sep. 30, 2012
Subsidiary Trust [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Subsidiary Trust [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
Subsidiary Trust [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Subsidiary Trust [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
Subsidiary Trust [Member]
Unrealized Losses [Member]
|
Dec. 31, 2011
Subsidiary Trust [Member]
Unrealized Losses [Member]
|
Sep. 30, 2012
Subsidiary Trust [Member]
OTTI [Member]
|
Dec. 31, 2011
Subsidiary Trust [Member]
OTTI [Member]
|
Sep. 30, 2012
Subsidiary Trust [Member]
Fair Value [Member]
|
Dec. 31, 2011
Subsidiary Trust [Member]
Fair Value [Member]
|
Sep. 30, 2012
US Government Agencies Debt Securities [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
US Government Agencies Debt Securities [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
US Government Agencies Debt Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
US Government Agencies Debt Securities [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
US Government Agencies Debt Securities [Member]
Unrealized Losses [Member]
|
Dec. 31, 2011
US Government Agencies Debt Securities [Member]
Unrealized Losses [Member]
|
Sep. 30, 2012
US Government Agencies Debt Securities [Member]
Fair Value [Member]
|
Dec. 31, 2011
US Government Agencies Debt Securities [Member]
Fair Value [Member]
|
Sep. 30, 2012
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
US States and Political Subdivisions Debt Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Unrealized Losses [Member]
|
Sep. 30, 2012
US States and Political Subdivisions Debt Securities [Member]
Fair Value [Member]
|
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Fair Value [Member]
|
Sep. 30, 2012
Corporate Debt Securities [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Corporate Debt Securities [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
Corporate Debt Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Corporate Debt Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Corporate Debt Securities [Member]
Unrealized Losses [Member]
|
Sep. 30, 2012
Corporate Debt Securities [Member]
Fair Value [Member]
|
Dec. 31, 2011
Corporate Debt Securities [Member]
Fair Value [Member]
|
Sep. 30, 2012
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Unrealized Losses [Member]
|
Sep. 30, 2012
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Fair Value [Member]
|
Dec. 31, 2011
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Fair Value [Member]
|
Sep. 30, 2012
Residential Mortgage Backed Securities [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Residential Mortgage Backed Securities [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
Residential Mortgage Backed Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Residential Mortgage Backed Securities [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
Residential Mortgage Backed Securities [Member]
Unrealized Losses [Member]
|
Dec. 31, 2011
Residential Mortgage Backed Securities [Member]
Unrealized Losses [Member]
|
Sep. 30, 2012
Residential Mortgage Backed Securities [Member]
OTTI [Member]
|
Dec. 31, 2011
Residential Mortgage Backed Securities [Member]
OTTI [Member]
|
Sep. 30, 2012
Residential Mortgage Backed Securities [Member]
Fair Value [Member]
|
Dec. 31, 2011
Residential Mortgage Backed Securities [Member]
Fair Value [Member]
|
Sep. 30, 2012
Asset-backed Securities [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Asset-backed Securities [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
Asset-backed Securities [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Asset-backed Securities [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
Asset-backed Securities [Member]
OTTI [Member]
|
Dec. 31, 2011
Asset-backed Securities [Member]
OTTI [Member]
|
Sep. 30, 2012
Asset-backed Securities [Member]
Fair Value [Member]
|
Dec. 31, 2011
Asset-backed Securities [Member]
Fair Value [Member]
|
Sep. 30, 2012
CRA Funds [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
CRA Funds [Member]
Amortized Cost [Member]
|
Sep. 30, 2012
CRA Funds [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
CRA Funds [Member]
Unrealized Gains [Member]
|
Sep. 30, 2012
CRA Funds [Member]
Fair Value [Member]
|
Dec. 31, 2011
CRA Funds [Member]
Fair Value [Member]
|
Dec. 31, 2011
Securities (Assets) [Member]
Amortized Cost [Member]
|
Dec. 31, 2011
Securities (Assets) [Member]
Unrealized Gains [Member]
|
Dec. 31, 2011
Securities (Assets) [Member]
Unrealized Losses [Member]
|
Dec. 31, 2011
Securities (Assets) [Member]
OTTI [Member]
|
Dec. 31, 2011
Securities (Assets) [Member]
Fair Value [Member]
|
Sep. 30, 2012
Amortized Cost [Member]
|
Dec. 31, 2011
Amortized Cost [Member]
|
Sep. 30, 2012
Unrealized Gains [Member]
|
Sep. 30, 2012
Unrealized Losses [Member]
|
Sep. 30, 2012
OTTI [Member]
|
Sep. 30, 2012
Fair Value [Member]
|
Dec. 31, 2011
Fair Value [Member]
|
|||||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | $ 7,973,000 | $ 75,457,000 | $ 91,660,000 | $ 12,849,000 | $ 5,467,000 | $ 6,086,000 | $ 6,102,000 | $ 65,585,000 | $ 52,594,000 | $ 775,000 | $ 900,000 | $ 196,000 | $ 231,000 | $ 13,964,000 | $ 13,700,000 | $ 170,654,000 | $ 174,912,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | 466,000 | 546,000 | 552,000 | 279,000 | 266,000 | 57,000 | 1,847,000 | 1,160,000 | 309,000 | 232,000 | 122,000 | 56,000 | 400,000 | 135,000 | 2,465,000 | 3,962,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | (10,000) | (7,000) | (40,000) | (18,000) | (15,000) | (5,000) | (23,000) | (103,000) | (15,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | 577,000 | (402,000) | (442,000) | (175,000) | (185,000) | (627,000) | (577,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | 163,918,000 | 75,913,000 | 92,199,000 | 13,401,000 | 5,706,000 | 6,352,000 | 6,141,000 | 67,432,000 | 53,739,000 | 677,000 | 667,000 | 143,000 | 102,000 | 14,364,000 | 13,835,000 | 172,389,000 | 178,282,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity | 4,046,000 | 4,046,000 | 4,046,000 | 4,046,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity | 726,000 | 490,000 | 726,000 | 490,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity | 4,772,000 | 4,536,000 | 4,772,000 | 4,536,000 | 4,772,000 | 4,536,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | 5,774,000 | 6,484,000 | 4,691,000 | [1] | 5,401,000 | [1] | [1] | [1] | [1] | [1] | [1] | [1] | 4,691,000 | [1] | 5,401,000 | [1] | 1,083,000 | [1] | 1,083,000 | [1] | [1] | [1] | [1] | [1] | [1] | [1] | 1,083,000 | [1] | 1,083,000 | [1] | 5,774,000 | 6,484,000 | 5,774,000 | 6,484,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | $ 5,774,000 | $ 6,484,000 | $ 4,691,000 | [1] | $ 5,401,000 | [1] | [1] | [1] | [1] | [1] | [1] | [1] | $ 4,691,000 | [1] | $ 5,401,000 | [1] | $ 1,083,000 | [1] | $ 1,083,000 | [1] | [1] | [1] | [1] | [1] | [1] | [1] | $ 1,083,000 | [1] | $ 1,083,000 | [1] | $ 5,774,000 | $ 6,484,000 | $ 5,774,000 | $ 6,484,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Note 10 - Derivative Financial Instruments (Detail) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
|
Sep. 30, 2009
|
---|---|---|---|---|---|
Notional Amount of Interest Rate Derivatives | $ 17.5 | $ 15.0 | $ 17.5 | $ 17.5 | |
Junior Subordinated Notes | 36.1 | ||||
Derivative, Fixed Interest Rate | 5.38% | ||||
Derivative, Variable Interest Rate | 1.55% | ||||
Interest Rate Derivative Liabilities, at Fair Value | 1.9 | 2.0 | |||
Derivative, Cap Interest Rate | 2.00% | ||||
Derivative, Collateral, Right to Reclaim Cash | $ 2.3 |
Note 5 - Earnings Per Common Share (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] |
|
Note 5 - Earnings Per Common Share (Detail) - Basic earnings per common share (“EPS”) is computed by dividing net income (after deducting dividend (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
|
|
Net income available to common shareholders (in Dollars) | $ 2,712 | $ 1,668 | $ 7,403 | $ 4,947 |
Weighted average common shares in basic EPS | 18,307 | 13,145 | 15,666 | 13,141 |
Effect of dilutive securities (in Dollars) | $ 341 | $ 89 | $ 210 | $ 75 |
Weighted average common and potentially dilutive common shares used in diluted EPS | 18,648 | 13,234 | 15,876 | 13,216 |
Basic (in Dollars per share) | $ 0.15 | $ 0.13 | $ 0.47 | $ 0.38 |
Diluted (in Dollars per share) | $ 0.15 | $ 0.13 | $ 0.47 | $ 0.37 |
Note 3 - Loans (Detail) - Age Of The Recorded Investment In Loans By Portfolio (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
---|---|---|---|
30-59 Days Past Due | $ 6,648 | $ 9,484 | |
60-89 Days Past Due | 8,978 | 7,452 | |
Greater Than 90 Days | 25,399 | 25,244 | |
Total Past Due | 41,025 | 42,180 | |
Current | 1,059,035 | 1,005,826 | |
Loans | 1,100,060 | 1,048,006 | 1,062,565 |
Commercial And Industrial [Member]
|
|||
30-59 Days Past Due | 730 | 2,018 | |
60-89 Days Past Due | 754 | 121 | |
Greater Than 90 Days | 7,356 | 9,433 | |
Total Past Due | 8,840 | 11,572 | |
Current | 368,469 | 333,993 | |
Loans | 377,309 | 345,565 | 346,254 |
Real Estate Mortgage Residential [Member]
|
|||
30-59 Days Past Due | 5,238 | 105 | |
Greater Than 90 Days | 184 | 251 | |
Total Past Due | 5,422 | 356 | |
Current | 35,060 | 42,440 | |
Loans | 40,482 | 42,796 | |
Real Estate Mortgage Commercial [Member]
|
|||
30-59 Days Past Due | 680 | 7,361 | |
60-89 Days Past Due | 8,199 | 4,002 | |
Greater Than 90 Days | 12,365 | 15,559 | |
Total Past Due | 21,244 | 26,922 | |
Current | 646,395 | 618,634 | |
Loans | 667,639 | 645,556 | |
Real Estate Construction Residential [Member]
|
|||
Greater Than 90 Days | 2,345 | ||
Total Past Due | 2,345 | ||
Current | 1,738 | 7,011 | |
Loans | 4,083 | 7,011 | |
Real Estate Construction Commercial [Member]
|
|||
60-89 Days Past Due | 3,324 | ||
Greater Than 90 Days | 3,148 | ||
Total Past Due | 3,148 | 3,324 | |
Current | 676 | ||
Loans | 3,824 | 3,324 | |
Consumer And Other [Member]
|
|||
60-89 Days Past Due | 25 | 5 | |
Greater Than 90 Days | 1 | 1 | |
Total Past Due | 26 | 6 | |
Current | 6,697 | 3,748 | |
Loans | $ 6,723 | $ 3,754 | $ 3,629 |
Note 2 - Securities (Detail) - Future Contractual Maturities Of Debt Securities (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Within one year | $ 706 | |
Within one year | 725 | |
Within two to five years | 8,083 | |
Within two to five years | 8,357 | |
Within six to ten years | 74,247 | |
Within six to ten years | 74,816 | |
After ten years | 11,552 | |
After ten years | 11,911 | |
After ten years | 4,046 | |
After ten years | 4,772 | |
Mortgage-backed securities and collateralized mortgage obligations | 66,360 | |
Mortgage-backed securities and collateralized mortgage obligations | 68,109 | |
Total debt securities | 160,948 | |
Total debt securities | 163,918 | |
Total debt securities | 4,046 | |
Total debt securities | $ 4,772 | $ 4,536 |
Note 7 - Shareholders' Equity (Detail) (USD $)
|
5 Months Ended | 9 Months Ended | 9 Months Ended | 7 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|---|
May 21, 2012
|
Sep. 30, 2012
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Sep. 30, 2011
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Aug. 07, 2012
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Dec. 31, 2011
|
Sep. 30, 2012
Preferred Share [Member]
Net [Member]
|
Aug. 07, 2012
Preferred Share [Member]
|
Sep. 30, 2012
Preferred Share [Member]
|
Jun. 30, 2012
Preferred Share [Member]
|
May 21, 2012
Offering Price [Member]
|
|
Common Stock, Shares, Issued (in Shares) | 5,111,750 | 18,766,765 | 13,340,815 | |||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 1.00 | $ 1.00 | $ 1.00 | $ 9.00 | ||||||
Common Stock, Shares, Outstanding (in Shares) | 666,750 | 18,749,912 | 13,340,815 | |||||||
Proceeds from Issuance of Common Stock | $ 42,900,000 | $ 45,969,000 | ||||||||
Stock Repurchased During Period, Shares (in Shares) | 1,260 | 43,740 | ||||||||
Preferred Stock, Shares Outstanding (in Shares) | 0 | 45,000 | 45,000 | |||||||
Stock Repurchased During Period, Value | 42,900,000 | 1,260,000 | 43,700,000 | |||||||
Discount Rate | 1.883% | |||||||||
Additional Paid in Capital | 74,976,000 | 33,816,000 | 557,000 | |||||||
Amortization of Financing Costs and Discounts | 249,000 | |||||||||
Other Notes Payable | 42,900,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | 8.75 | |||||||||
Dividends, Preferred Stock, Cash | $ 1,400,000 | $ 2,300,000 |
Note 13 - Income Taxes (Detail) (USD $)
|
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Income Tax Expense (Benefit) | $ 1,410,000 | $ 762,000 | $ 4,023,000 | $ 3,090,000 | |
Effective Income Tax Rate, Continuing Operations | 32.90% | 25.10% | 32.70% | 31.40% | |
Deferred Tax Assets, Net of Valuation Allowance | 13,902,000 | 13,902,000 | 14,995,000 | ||
Income Tax Expense [Member]
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|||||
Income Tax Expense (Benefit) | 4,000,000 | ||||
Income Tax Benefit [Member]
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|||||
Income Tax Expense (Benefit) | 3,100,000 | ||||
Deferred Tax Asset [Member]
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|||||
Deferred Tax Assets, Net of Valuation Allowance | $ 13,900,000 | $ 13,900,000 |
Note 11 - Operating Segment Information (Detail) - Selected Operating Segment Information (USD $)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
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Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
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|
Total interest income | $ 16,029,000 | $ 16,768,000 | $ 48,608,000 | $ 50,956,000 |
Total interest expense | 2,381,000 | 3,243,000 | 7,671,000 | 10,483,000 |
Net interest income | 13,648,000 | 13,525,000 | 40,937,000 | 40,473,000 |
Provision for loan losses | (300,000) | 875,000 | 300,000 | 2,450,000 |
Net interest income after provision for loan losses | 13,948,000 | 12,650,000 | 40,637,000 | 38,023,000 |
Noninterest income | 1,872,000 | 1,816,000 | 5,435,000 | 5,046,000 |
Noninterest expenses | 11,529,000 | 11,435,000 | 33,774,000 | 33,221,000 |
Income (loss) before income tax provision | 4,291,000 | 3,031,000 | 12,298,000 | 9,848,000 |
Provision (benefit) for income taxes | 1,410,000 | 762,000 | 4,023,000 | 3,090,000 |
Net income (loss) | 2,881,000 | 2,269,000 | 8,275,000 | 6,758,000 |
MetroBank [Member]
|
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Total interest income | 11,926,000 | 12,680,000 | 36,483,000 | 38,370,000 |
Total interest expense | 1,483,000 | 2,147,000 | 4,834,000 | 7,075,000 |
Net interest income | 10,443,000 | 10,533,000 | 31,649,000 | 31,295,000 |
Provision for loan losses | (300,000) | 550,000 | 300,000 | 2,050,000 |
Net interest income after provision for loan losses | 10,743,000 | 9,983,000 | 31,349,000 | 29,245,000 |
Noninterest income | 2,126,000 | 2,092,000 | 6,188,000 | 5,841,000 |
Noninterest expenses | 8,281,000 | 8,539,000 | 25,143,000 | 25,037,000 |
Income (loss) before income tax provision | 4,588,000 | 3,536,000 | 12,394,000 | 10,049,000 |
Provision (benefit) for income taxes | 1,449,000 | 915,000 | 3,921,000 | 3,008,000 |
Net income (loss) | 3,139,000 | 2,621,000 | 8,473,000 | 7,041,000 |
Metro United [Member]
|
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Total interest income | 4,096,000 | 4,081,000 | 12,104,000 | 12,567,000 |
Total interest expense | 548,000 | 757,000 | 1,793,000 | 2,395,000 |
Net interest income | 3,548,000 | 3,324,000 | 10,311,000 | 10,172,000 |
Provision for loan losses | 325,000 | 400,000 | ||
Net interest income after provision for loan losses | 3,458,000 | 2,999,000 | 10,311,000 | 9,772,000 |
Noninterest income | 84,000 | 55,000 | 260,000 | 198,000 |
Noninterest expenses | 2,870,000 | 2,850,000 | 8,043,000 | 8,095,000 |
Income (loss) before income tax provision | 762,000 | 204,000 | 2,528,000 | 1,875,000 |
Provision (benefit) for income taxes | 321,000 | 83,000 | 995,000 | 776,000 |
Net income (loss) | 441,000 | 121,000 | 1,533,000 | 1,099,000 |
Other Segments [Member]
|
||||
Total interest income | 7,000 | 7,000 | 21,000 | 19,000 |
Total interest expense | 350,000 | 339,000 | 1,044,000 | 1,013,000 |
Net interest income | (343,000) | (332,000) | (1,023,000) | (994,000) |
Net interest income after provision for loan losses | (343,000) | (332,000) | (1,023,000) | (994,000) |
Noninterest income | (338,000) | (331,000) | (1,013,000) | (993,000) |
Noninterest expenses | 378,000 | 46,000 | 588,000 | 89,000 |
Income (loss) before income tax provision | (1,059,000) | (709,000) | (2,624,000) | (2,076,000) |
Provision (benefit) for income taxes | (360,000) | (236,000) | (893,000) | (694,000) |
Net income (loss) | (699,000) | (473,000) | (1,731,000) | (1,382,000) |
Consolidated Company [Member]
|
||||
Total interest income | 16,029,000 | 16,768,000 | 48,608,000 | 50,956,000 |
Total interest expense | 2,381,000 | 3,243,000 | 7,671,000 | 10,483,000 |
Net interest income | 13,648,000 | 13,525,000 | 40,937,000 | 40,473,000 |
Provision for loan losses | (300,000) | 875,000 | 300,000 | 2,450,000 |
Net interest income after provision for loan losses | 13,948,000 | 12,650,000 | 40,637,000 | 38,023,000 |
Noninterest income | 1,872,000 | 1,816,000 | 5,435,000 | 5,046,000 |
Noninterest expenses | 11,529,000 | 11,435,000 | 33,774,000 | 33,221,000 |
Income (loss) before income tax provision | 4,291,000 | 3,031,000 | 12,298,000 | 9,848,000 |
Provision (benefit) for income taxes | 1,410,000 | 762,000 | 4,023,000 | 3,090,000 |
Net income (loss) | $ 2,881,000 | $ 2,269,000 | $ 8,275,000 | $ 6,758,000 |
Note 4 - Goodwill (Detail)
|
Aug. 31, 2012
|
---|---|
Control Premium | 20.00% |
Average Growth Rate | 9.80% |
Rate Of Return | 13.20% |
Note 2 - Securities
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investment [Text Block] |
2.
SECURITIES
The
amortized cost and approximate fair value of securities is
as follows:
(1)
Represents securities with restrictions and limited
marketability which are carried at cost.
The
following table displays the gross unrealized losses and
fair value of securities available-for-sale as of September
30, 2012 for which other-than-temporary impairments
(“OTTI”) has not been recognized, that were in
a continuous unrealized loss position for the periods
indicated. There were no securities
held-to-maturity in a continuous unrealized loss position
as of September 30, 2012 or December 31, 2011.
As
of September 30, 2012, management did not have the intent
to sell any of the securities classified as
available-for-sale in unrealized loss positions and
believes it is not more likely than not that the Company
will have to sell any such securities before a recovery of
the cost. However, if strategic opportunities arise, the
Company may consider selling selected
securities. Any unrealized losses on such
selected securities would be charged to earnings.
The
unrealized losses are largely due to increases in the
market interest rates over the yields available at the time
the underlying securities were purchased. The fair value is
expected to recover as the securities approach their
maturity date or repricing date or if market yields for
such securities decline. Management does not believe that
any of the unrealized losses above are due to credit
quality. Accordingly, management believes the $15,000 of
unrealized losses as of September 30, 2012 is temporary and
the remaining $577,000 of OTTI as of September 30, 2012
represents an unrealized loss for which an impairment has
been recognized in other comprehensive income.
Other-Than-Temporary
Impairments (OTTI)
The
following table presents a rollforward for the three and
nine months ended September 30, 2012, of the credit loss
component of OTTI losses that have been recognized in
income related to debt securities that the Company does not
intend to sell.
For
the nine months ended September 30, 2012, credit-related
losses of $72,000 on seven non-agency residential
mortgage-backed securities and $13,000 on one asset-backed
security were recognized. There were no noncredit
impairments included in accumulated other comprehensive
income (loss) for the nine months ended September 30,
2012.
To
measure credit losses, external credit ratings and other
relevant collateral details and performance statistics on a
security-by-security basis were considered. Securities
exhibiting significant deterioration are subjected to
further analysis. Assumptions were developed for prepayment
speed, default rate, and loss severity for each security
using third party sources and based on the collateral
history. The resulting projections of future cash flows of
the underlying collateral were then discounted by the
underlying yield before any write-downs were considered to
determine the net present value of the cash flows
(“NPV”). The difference between the
cost basis and the NPV was taken as a credit loss in the
current period to the extent that these losses have not
been previously recognized. The difference between the NPV
and the quoted market price is considered a noncredit
related loss and was included in other comprehensive income
(loss).
Other
Securities Information
The
following sets forth information concerning sales
(excluding calls and maturities) of available-for-sale
securities (in thousands). There were no sales
or transfers of held-to-maturity securities for the nine
months ended September 30, 2012 or 2011.
At
September 30, 2012, future contractual maturities of debt
securities were as follows (in thousands):
The
Company holds mortgage-backed securities which may mature
at an earlier date than the contractual maturity due to
prepayments. The Company also holds certain securities
which may be called by the issuer at an earlier date than
the contractual maturity date.
|
Note 11 - Operating Segment Information (Detail) - Selected Operating Segment Information (USD $)
|
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Total interest income | $ 16,029,000 | $ 16,768,000 | $ 48,608,000 | $ 50,956,000 | |
Total interest expense | 2,381,000 | 3,243,000 | 7,671,000 | 10,483,000 | |
Net interest income | 13,648,000 | 13,525,000 | 40,937,000 | 40,473,000 | |
Provision for loan losses | (300,000) | 875,000 | 300,000 | 2,450,000 | |
Net interest income after provision for loan losses | 13,948,000 | 12,650,000 | 40,637,000 | 38,023,000 | |
Noninterest income | 1,872,000 | 1,816,000 | 5,435,000 | 5,046,000 | |
Noninterest expenses | 11,529,000 | 11,435,000 | 33,774,000 | 33,221,000 | |
Income before income tax provision | 4,291,000 | 3,031,000 | 12,298,000 | 9,848,000 | |
Provision (benefit) for income taxes | 1,410,000 | 762,000 | 4,023,000 | 3,090,000 | |
Net income (loss) | 2,881,000 | 2,269,000 | 8,275,000 | 6,758,000 | |
Net loans | 1,071,313,000 | 1,071,313,000 | 1,015,095,000 | ||
Total assets | 1,526,088,000 | 1,526,088,000 | 1,494,531,000 | ||
Deposits | 1,265,057,000 | 1,265,057,000 | 1,251,575,000 | ||
MetroBank [Member]
|
|||||
Total interest income | 11,926,000 | 12,680,000 | 36,483,000 | 38,370,000 | |
Total interest expense | 1,483,000 | 2,147,000 | 4,834,000 | 7,075,000 | |
Net interest income | 10,443,000 | 10,533,000 | 31,649,000 | 31,295,000 | |
Provision for loan losses | (300,000) | 550,000 | 300,000 | 2,050,000 | |
Net interest income after provision for loan losses | 10,743,000 | 9,983,000 | 31,349,000 | 29,245,000 | |
Noninterest income | 2,126,000 | 2,092,000 | 6,188,000 | 5,841,000 | |
Noninterest expenses | 8,281,000 | 8,539,000 | 25,143,000 | 25,037,000 | |
Income before income tax provision | 4,588,000 | 3,536,000 | 12,394,000 | 10,049,000 | |
Provision (benefit) for income taxes | 1,449,000 | 915,000 | 3,921,000 | 3,008,000 | |
Net income (loss) | 3,139,000 | 2,621,000 | 8,473,000 | 7,041,000 | |
Net loans | 759,904,000 | 737,313,000 | 759,904,000 | 737,313,000 | |
Total assets | 1,128,652,000 | 1,110,963,000 | 1,128,652,000 | 1,110,963,000 | |
Deposits | 946,206,000 | 939,206,000 | 946,206,000 | 939,206,000 | |
Metro United [Member]
|
|||||
Total interest income | 4,096,000 | 4,081,000 | 12,104,000 | 12,567,000 | |
Total interest expense | 548,000 | 757,000 | 1,793,000 | 2,395,000 | |
Net interest income | 3,548,000 | 3,324,000 | 10,311,000 | 10,172,000 | |
Provision for loan losses | 325,000 | 400,000 | |||
Net interest income after provision for loan losses | 3,458,000 | 2,999,000 | 10,311,000 | 9,772,000 | |
Noninterest income | 84,000 | 55,000 | 260,000 | 198,000 | |
Noninterest expenses | 2,870,000 | 2,850,000 | 8,043,000 | 8,095,000 | |
Income before income tax provision | 762,000 | 204,000 | 2,528,000 | 1,875,000 | |
Provision (benefit) for income taxes | 321,000 | 83,000 | 995,000 | 776,000 | |
Net income (loss) | 441,000 | 121,000 | 1,533,000 | 1,099,000 | |
Net loans | 311,409,000 | 291,883,000 | 311,409,000 | 291,883,000 | |
Total assets | 396,019,000 | 388,897,000 | 396,019,000 | 388,897,000 | |
Deposits | 325,646,000 | 315,577,000 | 325,646,000 | 315,577,000 | |
Other Segments [Member]
|
|||||
Total interest income | 7,000 | 7,000 | 21,000 | 19,000 | |
Total interest expense | 350,000 | 339,000 | 1,044,000 | 1,013,000 | |
Net interest income | (343,000) | (332,000) | (1,023,000) | (994,000) | |
Net interest income after provision for loan losses | (343,000) | (332,000) | (1,023,000) | (994,000) | |
Noninterest income | (338,000) | (331,000) | (1,013,000) | (993,000) | |
Noninterest expenses | 378,000 | 46,000 | 588,000 | 89,000 | |
Income before income tax provision | (1,059,000) | (709,000) | (2,624,000) | (2,076,000) | |
Provision (benefit) for income taxes | (360,000) | (236,000) | (893,000) | (694,000) | |
Net income (loss) | (699,000) | (473,000) | (1,731,000) | (1,382,000) | |
Total assets | 1,417,000 | (2,080,000) | 1,417,000 | (2,080,000) | |
Deposits | (6,795,000) | (13,291,000) | (6,795,000) | (13,291,000) | |
Consolidated Company [Member]
|
|||||
Total interest income | 16,029,000 | 16,768,000 | 48,608,000 | 50,956,000 | |
Total interest expense | 2,381,000 | 3,243,000 | 7,671,000 | 10,483,000 | |
Net interest income | 13,648,000 | 13,525,000 | 40,937,000 | 40,473,000 | |
Provision for loan losses | (300,000) | 875,000 | 300,000 | 2,450,000 | |
Net interest income after provision for loan losses | 13,948,000 | 12,650,000 | 40,637,000 | 38,023,000 | |
Noninterest income | 1,872,000 | 1,816,000 | 5,435,000 | 5,046,000 | |
Noninterest expenses | 11,529,000 | 11,435,000 | 33,774,000 | 33,221,000 | |
Income before income tax provision | 4,291,000 | 3,031,000 | 12,298,000 | 9,848,000 | |
Provision (benefit) for income taxes | 1,410,000 | 762,000 | 4,023,000 | 3,090,000 | |
Net income (loss) | 2,881,000 | 2,269,000 | 8,275,000 | 6,758,000 | |
Net loans | 1,071,313,000 | 1,029,196,000 | 1,071,313,000 | 1,029,196,000 | |
Total assets | 1,526,088,000 | 1,497,780,000 | 1,526,088,000 | 1,497,780,000 | |
Deposits | $ 1,265,057,000 | $ 1,241,492,000 | $ 1,265,057,000 | $ 1,241,492,000 |