þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2013
|
|||
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)
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76-0579161
(I.R.S. Employer
Identification No.)
|
Large Accelerated Filer £
|
Accelerated Filer R
|
||
Non-accelerated Filer £ (Do not check if a smaller reporting company)
|
Smaller Reporting Company £
|
Item 1.
|
Financial Statements.
|
March 31,
2013 |
December 31,
2012 |
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
25,013
|
$
|
31,203
|
||||
Federal funds sold and other short-term investments
|
163,282
|
128,246
|
||||||
Total cash and cash equivalents
|
188,295
|
159,449
|
||||||
Interest-bearing time deposits in banks
|
15,354
|
15,321
|
||||||
Securities available-for-sale, at fair value
|
142,713
|
119,422
|
||||||
Securities available-for-sale pledged with creditors’ right to repledge, at fair value
|
37,959
|
44,626
|
||||||
Total securities available-for-sale
|
180,672
|
164,048
|
||||||
Securities held-to-maturity (fair value $4,670 and $4,757 at March 31, 2013 and December 31, 2012, respectively)
|
4,046
|
4,046
|
||||||
Other investments
|
5,413
|
5,592
|
||||||
Loans, net of allowance for loan losses of $22,832 and $24,592, respectively
|
1,101,884
|
1,075,745
|
||||||
Accrued interest receivable
|
3,680
|
4,120
|
||||||
Premises and equipment, net
|
3,948
|
4,046
|
||||||
Goodwill
|
14,327
|
14,327
|
||||||
Deferred tax asset, net
|
12,676
|
13,110
|
||||||
Customers' liability on acceptances
|
4,914
|
7,045
|
||||||
Foreclosed assets, net
|
12,152
|
12,555
|
||||||
Cash value of bank owned life insurance
|
33,120
|
32,794
|
||||||
Prepaid FDIC assessment
|
3,001
|
3,439
|
||||||
Other assets
|
3,754
|
4,175
|
||||||
Total assets
|
$
|
1,587,236
|
$
|
1,519,812
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
318,912
|
$
|
309,696
|
||||
Interest-bearing
|
1,009,140
|
957,334
|
||||||
Total deposits
|
1,328,052
|
1,267,030
|
||||||
Junior subordinated debentures
|
36,083
|
36,083
|
||||||
Other borrowings
|
30,000
|
25,000
|
||||||
Accrued interest payable
|
274
|
233
|
||||||
Acceptances outstanding
|
4,914
|
7,045
|
||||||
Other liabilities
|
8,390
|
7,390
|
||||||
Total liabilities
|
1,407,713
|
1,342,781
|
||||||
Commitments and contingencies
|
–
|
—
|
||||||
Shareholders' equity:
|
||||||||
Common stock, $1.00 par value, 50,000,000 shares authorized; 18,766,765 shares issued and 18,725,901 and 18,746,385 outstanding at March 31, 2013 and December 31, 2012, respectively
|
18,767
|
18,767
|
||||||
Additional paid-in-capital
|
75,019
|
74,998
|
||||||
Retained earnings
|
85,908
|
82,881
|
||||||
Accumulated other comprehensive loss
|
221
|
567
|
||||||
Treasury stock, at cost, 40,864 and 20,380 shares at March 31, 2013 and December 31, 2012, respectively
|
(392
|
)
|
(182
|
)
|
||||
Total shareholders' equity
|
179,523
|
177,031
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,587,236
|
$
|
1,519,812
|
For the Three Months
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
Interest income:
|
||||||||
Loans
|
$
|
13,829
|
$
|
14,999
|
||||
Securities:
|
||||||||
Taxable
|
791
|
1,027
|
||||||
Tax-exempt
|
147
|
117
|
||||||
Other investments
|
50
|
43
|
||||||
Federal funds sold and other short-term investments (1)
|
200
|
212
|
||||||
Total interest income
|
15,017
|
16,398
|
||||||
Interest expense:
|
||||||||
Time deposits
|
1,219
|
1,536
|
||||||
Demand and savings deposits
|
427
|
635
|
||||||
Junior subordinated debentures
|
316
|
336
|
||||||
Other borrowings
|
233
|
247
|
||||||
Total interest expense
|
2,195
|
2,754
|
||||||
Net interest income
|
12,822
|
13,644
|
||||||
(Reduction in) provision for loan losses
|
(450
|
)
|
400
|
|||||
Net interest income after provision for loan losses
|
13,272
|
13,244
|
||||||
Noninterest income:
|
||||||||
Service fees
|
909
|
1,117
|
||||||
Loan-related fees
|
130
|
70
|
||||||
Letters of credit commissions and fees
|
199
|
197
|
||||||
Gain on securities transactions, net
|
14
|
12
|
||||||
Total other-than-temporary-impairment (“OTTI”) on securities
|
(40
|
)
|
(39
|
)
|
||||
Less: Noncredit portion of OTTI
|
(13
|
)
|
–
|
|||||
Net impairments on securities
|
(27
|
)
|
(39
|
)
|
||||
Other noninterest income
|
425
|
446
|
||||||
Total noninterest income
|
1,650
|
1,803
|
||||||
Noninterest expenses:
|
||||||||
Salaries and employee benefits
|
6,292
|
5,921
|
||||||
Occupancy and equipment
|
1,650
|
1,689
|
||||||
Foreclosed assets, net
|
(841
|
)
|
1,001
|
|||||
FDIC assessment
|
460
|
397
|
||||||
Other noninterest expense
|
2,741
|
1,925
|
||||||
Total noninterest expenses
|
10,302
|
10,933
|
||||||
Income before provision for income taxes
|
4,620
|
4,114
|
||||||
Provision for income taxes
|
1,593
|
1,346
|
||||||
Net income
|
$
|
3,027
|
$
|
2,768
|
||||
Dividends and discount – preferred stock
|
–
|
(598
|
)
|
|||||
Net income available to common shareholders
|
$
|
3,027
|
$
|
2,170
|
||||
Earnings per common share:
|
||||||||
Basic
|
$
|
0.17
|
$
|
0.16
|
||||
Diluted
|
$
|
0.16
|
$
|
0.16
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
18,332
|
13,169
|
||||||
Diluted
|
18,723
|
13,309
|
||||||
Dividends per common share
|
$
|
–
|
$
|
–
|
(1)
|
Includes interest-bearing time deposits in banks
|
For the Three Months
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
Net income
|
$
|
3,027
|
$
|
2,768
|
||||
Other comprehensive income, net of tax:
|
||||||||
Change in accumulated gain on effective cash flow hedging derivatives
|
96
|
43
|
||||||
Change in unrealized losses on investment securities, net of tax:
|
||||||||
Securities with OTTI charges during the period
|
(25
|
)
|
(25
|
)
|
||||
Less: OTTI charges recognized in net income
|
(17
|
)
|
(25
|
)
|
||||
Net unrealized losses on investment securities with OTTI
|
(8
|
)
|
–
|
|||||
Unrealized holding (losses) gains arising during the period
|
(425
|
)
|
21
|
|||||
Less: reclassification adjustment for losses included in net income
|
9
|
8
|
||||||
Net unrealized (losses) gains on investment securities
|
(434
|
)
|
13
|
|||||
Other comprehensive (loss) income
|
(346
|
)
|
56
|
|||||
Total comprehensive income
|
$
|
2,681
|
$
|
2,824
|
Common Stock
|
Additional
paid-in
|
Retained
|
Accumulated other comprehensive income
|
Treasury Stock at
|
||||||||||||||||||||||||
Shares
|
At par
|
capital
|
earnings
|
(loss)
|
cost
|
Total
|
||||||||||||||||||||||
Balance at December 31, 2012
|
18,767
|
$
|
18,767
|
$
|
74,998
|
$
|
82,881
|
$
|
567
|
(182
|
)
|
$
|
177,031
|
|||||||||||||||
Repurchase of common stock
|
–
|
–
|
–
|
–
|
–
|
(210
|
)
|
(210
|
)
|
|||||||||||||||||||
Stock-based compensation expense related to stock options recognized in earnings
|
–
|
–
|
21
|
–
|
–
|
–
|
21
|
|||||||||||||||||||||
Net income
|
–
|
–
|
–
|
3,027
|
–
|
–
|
3,027
|
|||||||||||||||||||||
Other comprehensive loss
|
–
|
–
|
–
|
–
|
(346
|
)
|
–
|
(346
|
)
|
|||||||||||||||||||
Balance at March 31, 2013
|
18,767
|
$
|
18,767
|
$
|
75,019
|
$
|
85,908
|
$
|
221
|
(392
|
)
|
$
|
179,523
|
For the Three Months Ended
March 31,
|
||||||||
2013
|
2012
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
3,027
|
$
|
2,768
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
234
|
284
|
||||||
(Reduction in) provision for loan losses
|
(450
|
)
|
400
|
|||||
Impairment on securities
|
27
|
39
|
||||||
Gain on securities transactions, net
|
(14
|
)
|
(12
|
)
|
||||
(Gain) loss on sale or writedown of foreclosed assets, net
|
(910
|
)
|
782
|
|||||
Amortization of premiums and discounts on securities
|
191
|
128
|
||||||
Amortization of deferred loan fees and discounts
|
(312
|
)
|
(244
|
)
|
||||
Amortization of core deposit intangibles
|
10
|
14
|
||||||
Stock-based compensation
|
21
|
20
|
||||||
Change in:
|
||||||||
Accrued interest receivable
|
440
|
(40
|
)
|
|||||
Other assets
|
995
|
538
|
||||||
Accrued interest payable
|
41
|
(25
|
)
|
|||||
Other liabilities
|
1,096
|
(529
|
)
|
|||||
Net cash provided by operating activities
|
4,396
|
4,123
|
||||||
Cash flows from investing activities:
|
||||||||
Net change in interest-bearing deposits in banks
|
(33
|
)
|
–
|
|||||
Purchases of securities available-for-sale
|
(28,484
|
)
|
(31,565
|
)
|
||||
Purchases of other investments
|
–
|
(1
|
)
|
|||||
Proceeds from maturities, calls and principal paydowns of securities available-for-sale
|
10,966
|
12,603
|
||||||
Proceeds from sales and maturities of other investments
|
179
|
110
|
||||||
Net change in loans
|
(32,056
|
)
|
(2,546
|
)
|
||||
Proceeds from sales of foreclosed assets
|
7,992
|
2,800
|
||||||
Purchases of premises and equipment
|
(136
|
)
|
(83
|
)
|
||||
Net cash used in investing activities
|
(41,572
|
)
|
(18,682
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net change in:
|
||||||||
Deposits
|
61,022
|
5,252
|
||||||
Other borrowings
|
5,000
|
(315
|
)
|
|||||
Repurchase of common stock
|
–
|
(112
|
)
|
|||||
Cash dividends paid on preferred stock
|
–
|
(563
|
)
|
|||||
Net cash provided by financing activities
|
66,022
|
4,262
|
||||||
Net increase (decrease) in cash and cash equivalents
|
28,846
|
(10,297
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
159,449
|
193,609
|
||||||
Cash and cash equivalents at end of period
|
$
|
188,295
|
$
|
183,312
|
||||
Supplemental information:
|
||||||||
Interest paid
|
$
|
2,154
|
$
|
2,778
|
||||
Income taxes paid
|
250
|
1,160
|
||||||
Noncash investing and financing activities:
|
||||||||
Issuance of common stock pursuant to incentive plan
|
–
|
44
|
||||||
Foreclosed assets acquired
|
6,679
|
202
|
||||||
Loans originated to finance foreclosed assets
|
6,120
|
–
|
As of March 31, 2013
|
||||||||||||||||||||
Amortized
|
Unrealized
|
Fair
|
||||||||||||||||||
Cost
|
Gains
|
Losses
|
OTTI
|
Value
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||
Debt securities
|
||||||||||||||||||||
U.S. Treasury and other U.S. government sponsored enterprises and agencies
|
$
|
81,385
|
$
|
240
|
$
|
(206
|
)
|
$
|
-
|
$
|
81,419
|
|||||||||
Obligations of state and political subdivisions
|
14,618
|
426
|
(49
|
)
|
-
|
14,995
|
||||||||||||||
Corporate
|
6,074
|
265
|
-
|
-
|
6,339
|
|||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations
|
||||||||||||||||||||
Government issued or guaranteed
|
61,558
|
1,225
|
(51
|
)
|
-
|
62,732
|
||||||||||||||
Privately issued residential
|
684
|
353
|
(342
|
)
|
695
|
|||||||||||||||
Asset backed securities
|
176
|
148
|
-
|
(167
|
)
|
157
|
||||||||||||||
Equity Securities
|
||||||||||||||||||||
CRA funds
|
14,204
|
131
|
-
|
-
|
14,335
|
|||||||||||||||
Total available-for-sale securities
|
$
|
178,699
|
$
|
2,788
|
$
|
(306
|
)
|
$
|
(509
|
)
|
$
|
180,672
|
||||||||
Securities held-to-maturity
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
$
|
4,046
|
$
|
624
|
$
|
-
|
$
|
-
|
$
|
4,670
|
||||||||||
Total held-to-maturity securities
|
$
|
4,046
|
$
|
624
|
$
|
-
|
$
|
-
|
$
|
4,670
|
||||||||||
Other investments
|
||||||||||||||||||||
FHLB (1)/Federal Reserve Bank stock (2)
|
$
|
4,330
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
4,330
|
||||||||||
Investment in subsidiary trust (3)
|
1,083
|
-
|
-
|
-
|
1,083
|
|||||||||||||||
Total other investments
|
$
|
5,413
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
5,413
|
As of December 31, 2012
|
||||||||||||||||||||
Amortized
|
Unrealized
|
Fair
|
||||||||||||||||||
Cost
|
Gains
|
Losses
|
OTTI
|
Value
|
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||
Debt securities
|
||||||||||||||||||||
U.S. Treasury and other U.S. government sponsored enterprises and agencies
|
$
|
70,892
|
$
|
362
|
$
|
(73
|
)
|
$
|
—
|
$
|
71,181
|
|||||||||
Obligations of state and political subdivisions
|
12,810
|
579
|
—
|
—
|
13,389
|
|||||||||||||||
Corporate
|
6,080
|
270
|
—
|
—
|
6,350
|
|||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||||||||||
Government issued or guaranteed
|
56,572
|
1,369
|
—
|
—
|
57,941
|
|||||||||||||||
Privately issued residential
|
718
|
330
|
—
|
(365
|
)
|
683
|
||||||||||||||
Asset backed securities
|
187
|
129
|
—
|
(173
|
)
|
143
|
||||||||||||||
Equity securities
|
||||||||||||||||||||
Investment in CRA funds
|
14,128
|
233
|
—
|
—
|
14,361
|
|||||||||||||||
Total available-for-sale securities
|
$
|
161,387
|
$
|
3,272
|
$
|
(73
|
)
|
$
|
(538
|
)
|
$
|
164,048
|
||||||||
Securities held-to-maturity
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
$
|
4,046
|
$
|
711
|
$
|
—
|
$
|
—
|
$
|
4,757
|
||||||||||
Total held-to-maturity securities
|
$
|
4,046
|
$
|
711
|
$
|
—
|
$
|
—
|
$
|
4,757
|
||||||||||
Other investments
|
||||||||||||||||||||
FHLB (1)/Federal Reserve Bank (2) stock
|
4,509
|
—
|
—
|
—
|
4,509
|
|||||||||||||||
Investment in subsidiary trust (3)
|
1,083
|
—
|
—
|
—
|
1,083
|
|||||||||||||||
Total other investments
|
$
|
5,592
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
5,592
|
(1)
|
FHLB stock held by the Banks is subject to certain restrictions under a credit policy of the FHLB dated May 1, 1997. Redemption of FHLB stock is dependent upon repayment of borrowings, if any, from the FHLB.
|
(2)
|
Federal Reserve Bank stock held by MetroBank is subject to certain restrictions under Federal Reserve Bank Policy.
|
(3)
|
The Company’s ownership of common securities of MCBI Trust I is carried at cost.
|
March 31, 2013
|
||||||||||||||||||||||||
Less Than 12 Months
|
Greater Than 12 Months
|
Total
|
||||||||||||||||||||||
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||
U.S. Treasury and other U.S. government sponsored enterprises and agencies
|
$
|
31,078
|
$
|
(206
|
)
|
$
|
—
|
$
|
—
|
$
|
31,078
|
$
|
(206
|
)
|
||||||||||
Obligations of state and political subdivisions
|
2,573
|
(49
|
)
|
—
|
—
|
2,573
|
(49
|
)
|
||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations
|
||||||||||||||||||||||||
Government issued or guaranteed
|
14,697
|
(51
|
)
|
—
|
—
|
14,697
|
(51
|
)
|
||||||||||||||||
Privately issued residential
|
—
|
—
|
71
|
—
|
71
|
—
|
||||||||||||||||||
Total securities
|
$
|
48,348
|
$
|
(306
|
)
|
$
|
71
|
$
|
—
|
$
|
48,419
|
$
|
(306
|
)
|
As of December 31, 2012
|
||||||||||||||||||||||||
Less Than 12
Months
|
Greater Than 12
Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||||||
U.S. Treasury and other U.S. government sponsored enterprises and agencies
|
$
|
9,921
|
$
|
(73
|
)
|
$
|
—
|
$
|
—
|
$
|
9,921
|
$
|
(73
|
)
|
||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
||||||||||||||||||||||||
Privately issued residential
|
—
|
—
|
72
|
—
|
72
|
—
|
||||||||||||||||||
Total securities
|
$
|
9,921
|
$
|
(73
|
)
|
$
|
72
|
$
|
—
|
$
|
9,993
|
$
|
(73
|
)
|
Impairment related to credit losses
|
Three months ended
March 31, 2013
|
Three months ended
March 31, 2012
|
||||||
Beginning balance at beginning of period
|
$
|
1,716
|
$
|
1,594
|
||||
Addition of OTTI that was not previously recognized
|
—
|
—
|
||||||
Additions to OTTI that was previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis
|
—
|
21
|
||||||
Transfers from accumulated other comprehensive income (“AOCI”) to OTTI related to credit losses
|
16
|
18
|
||||||
Reclassifications from OTTI to realized losses
|
—
|
—
|
||||||
Ending balance at end of period
|
$
|
1,732
|
$
|
1,633
|
Securities
Available-for-sale |
Securities
Held-to-maturity |
|||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||
Within one year
|
$
|
702
|
$
|
711
|
$
|
—
|
$
|
—
|
||||||||
Within two to five years
|
12,569
|
12,845
|
—
|
—
|
||||||||||||
Within six to ten years
|
75,675
|
75,800
|
—
|
—
|
||||||||||||
After ten years
|
13,307
|
13,554
|
4,046
|
4,670
|
||||||||||||
Mortgage-backed securities and collateralized mortgage obligations
|
62,242
|
63,427
|
—
|
—
|
||||||||||||
Total debt securities
|
$
|
164,495
|
$
|
166,337
|
$
|
4,046
|
$
|
4,670
|
As of March 31, 2013
|
As of December 31, 2012
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial and industrial
|
$
|
395,640
|
35.10
|
%
|
$
|
383,641
|
34.78
|
%
|
||||||||
Real estate mortgage
|
||||||||||||||||
Residential
|
37,526
|
3.33
|
36,807
|
3.34
|
||||||||||||
Commercial
|
677,061
|
60.07
|
665,244
|
60.32
|
||||||||||||
714,587
|
63.40
|
702,051
|
63.66
|
|||||||||||||
Real estate construction
|
||||||||||||||||
Residential
|
2,753
|
0.24
|
2,420
|
0.22
|
||||||||||||
Commercial
|
7,379
|
0.66
|
7,284
|
0.66
|
||||||||||||
10,132
|
0.90
|
9,704
|
0.88
|
|||||||||||||
Consumer and other
|
6,808
|
0.60
|
7,531
|
0.68
|
||||||||||||
Gross loans
|
1,127,167
|
100.00
|
%
|
1,102,927
|
100.00
|
%
|
||||||||||
Unearned discounts, interest and deferred fees
|
(2,451
|
)
|
(2,590
|
)
|
||||||||||||
Total loans
|
1,124,716
|
1,100,337
|
||||||||||||||
Allowance for loan losses
|
(22,832
|
)
|
(24,592
|
)
|
||||||||||||
Loans, net
|
$
|
1,101,884
|
$
|
1,075,745
|
March 31, 2013
|
Gross Loan
Balance
|
Deferred Loan
Fees
|
Accrued
Interest
Receivable
|
Recorded
Investment
in Loans
|
||||||||||||
Commercial and industrial
|
$
|
395,640
|
$
|
(687
|
)
|
$
|
958
|
$
|
395,911
|
|||||||
Real estate mortgage
|
714,587
|
(1,574
|
)
|
2,020
|
715,033
|
|||||||||||
Real estate construction
|
10,132
|
(37
|
)
|
17
|
10,112
|
|||||||||||
Consumer and other
|
6,808
|
(153
|
)
|
18
|
6,673
|
|||||||||||
Total
|
$
|
1,127,167
|
$
|
(2,451
|
)
|
$
|
3,013
|
$
|
1,127,729
|
December 31, 2012
|
Gross Loan
Balance
|
Deferred Loan
Fees
|
Accrued
Interest
Receivable
|
Recorded
Investment
in Loans
|
||||||||||||
Commercial and industrial
|
$
|
383,641
|
$
|
(814
|
)
|
$
|
1,078
|
$
|
383,905
|
|||||||
Real estate mortgage
|
702,051
|
(1,595
|
)
|
2,024
|
702,480
|
|||||||||||
Real estate construction
|
9,704
|
(30
|
)
|
18
|
9,692
|
|||||||||||
Consumer and other
|
7,531
|
(151
|
)
|
21
|
7,401
|
|||||||||||
Total
|
$
|
1,102,927
|
$
|
(2,590
|
)
|
$
|
3,141
|
$
|
1,103,478
|
As of March 31, 2013
|
Commercial and industrial
|
Real estate
mortgage
|
Real estate construction
|
Consumer and other
|
Total
|
|||||||||||||||
Grade:
|
||||||||||||||||||||
1-6 - “Pass”
|
$
|
380,163
|
$
|
645,678
|
$
|
5,583
|
$
|
6,673
|
$
|
1,038,097
|
||||||||||
7 - “Special Mention”/ “Watch”
|
3,797
|
13,268
|
—
|
—
|
17,065
|
|||||||||||||||
8 - “Substandard”
|
11,951
|
56,087
|
4,529
|
—
|
72,567
|
|||||||||||||||
9 -“Doubtful"
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total
|
$
|
395,911
|
$
|
715,033
|
$
|
10,112
|
$
|
6,673
|
$
|
1,127,729
|
As of December 31, 2012
|
Commercial and industrial
|
Real estate
mortgage
|
Real estate construction
|
Consumer and other
|
Total
|
|||||||||||||||
Grade:
|
||||||||||||||||||||
1-6 - “Pass”
|
$
|
366,571
|
$
|
611,159
|
$
|
5,163
|
$
|
7,401
|
$
|
990,294
|
||||||||||
7 - “Special Mention”/ “Watch”
|
4,393
|
14,593
|
—
|
—
|
18,986
|
|||||||||||||||
8 - “Substandard”
|
12,941
|
76,728
|
4,529
|
—
|
94,198
|
|||||||||||||||
9 -“Doubtful"
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total
|
$
|
383,905
|
$
|
702,480
|
$
|
9,692
|
$
|
7,401
|
$
|
1,103,478
|
As of March 31, 2013
|
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
and Accruing
|
|||||||||||||||||||||
Commercial and industrial
|
$
|
870
|
$
|
645
|
$
|
510
|
$
|
2,025
|
$
|
393,886
|
$
|
395,911
|
$
|
—
|
||||||||||||||
Real estate mortgage:
|
||||||||||||||||||||||||||||
Residential
|
66
|
—
|
142
|
208
|
37,401
|
37,609
|
—
|
|||||||||||||||||||||
Commercial
|
2,264
|
376
|
12,053
|
14,693
|
662,731
|
677,424
|
—
|
|||||||||||||||||||||
Real estate construction:
|
||||||||||||||||||||||||||||
Residential
|
—
|
—
|
1,426
|
1,426
|
1,322
|
2,748
|
—
|
|||||||||||||||||||||
Commercial
|
—
|
—
|
3,103
|
3,103
|
4,261
|
7,364
|
—
|
|||||||||||||||||||||
Consumer and other
|
—
|
—
|
—
|
—
|
6,673
|
6,673
|
—
|
|||||||||||||||||||||
Total
|
$
|
3,200
|
$
|
1,021
|
$
|
17,234
|
$
|
21,455
|
$
|
1,106,274
|
$
|
1,127,729
|
$
|
—
|
As of December 31, 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
and Accruing
|
|||||||||||||||||||||
Commercial and industrial
|
$
|
2,233
|
$
|
817
|
$
|
1,308
|
$
|
4,358
|
$
|
379,547
|
$
|
383,905
|
$
|
—
|
||||||||||||||
Real estate mortgage:
|
||||||||||||||||||||||||||||
Residential
|
—
|
—
|
239
|
239
|
36,667
|
36,906
|
—
|
|||||||||||||||||||||
Commercial
|
114
|
3,817
|
18,141
|
22,072
|
643,502
|
665,574
|
—
|
|||||||||||||||||||||
Real estate construction:
|
||||||||||||||||||||||||||||
Residential
|
—
|
—
|
1,426
|
1,426
|
984
|
2,410
|
—
|
|||||||||||||||||||||
Commercial
|
150
|
—
|
3,103
|
3,253
|
4,029
|
7,282
|
—
|
|||||||||||||||||||||
Consumer and other
|
—
|
—
|
—
|
—
|
7,401
|
7,401
|
—
|
|||||||||||||||||||||
Total
|
$
|
2,497
|
$
|
4,634
|
$
|
24,217
|
$
|
31,348
|
$
|
1,072,130
|
$
|
1,103,478
|
$
|
—
|
Recorded investment in nonaccrual loans
|
March 31, 2013
|
December 31, 2012
|
||||||
Commercial and industrial
|
$
|
579
|
$
|
1,308
|
||||
Real estate mortgage:
|
||||||||
Residential
|
142
|
239
|
||||||
Commercial
|
16,347
|
22,501
|
||||||
Real estate construction:
|
||||||||
Residential
|
1,426
|
1,426
|
||||||
Commercial
|
3,104
|
3,103
|
||||||
Total
|
$
|
21,598
|
$
|
28,577
|
As of March 31, 2013
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
579
|
$
|
579
|
$
|
—
|
$
|
4,394
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
142
|
142
|
—
|
188
|
||||||||||||
Commercial
|
12,368
|
12,368
|
—
|
17,096
|
||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
1,426
|
1,426
|
—
|
1,885
|
||||||||||||
Commercial
|
3,104
|
3,104
|
—
|
3,132
|
||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
17
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
3,979
|
3,980
|
252
|
4,530
|
||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$
|
579
|
$
|
579
|
$
|
—
|
$
|
4,411
|
||||||||
Real estate mortgage
|
16,489
|
16,490
|
252
|
21,814
|
||||||||||||
Real estate construction
|
4,530
|
4,530
|
—
|
5,017
|
As of December 31, 2012
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
1,287
|
$
|
1,289
|
$
|
—
|
$
|
5,162
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
239
|
239
|
—
|
213
|
||||||||||||
Commercial
|
18,369
|
18,369
|
—
|
19,732
|
||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
1,426
|
1,426
|
—
|
1,529
|
||||||||||||
Commercial
|
3,103
|
3,103
|
—
|
3,171
|
||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
21
|
21
|
21
|
1,434
|
||||||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
4,533
|
4,535
|
503
|
6,836
|
||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$
|
1,308
|
$
|
1,310
|
$
|
21
|
$
|
6,596
|
||||||||
Real estate mortgage
|
23,141
|
23,143
|
503
|
26,781
|
||||||||||||
Real estate construction
|
4,529
|
4,529
|
—
|
4,700
|
Three Months Ended March 31, 2012
|
||||||||||||
Troubled Debt Restructurings
|
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||
Real estate mortgage:
|
||||||||||||
Commercial
|
1
|
$
|
2,699
|
$
|
2,699
|
As of and for the three months ended
March 31, 2013
|
Commercial and industrial
|
Real estate
mortgage
|
Real estate
construction
|
Consumer
and other
|
Unallocated
|
Total
|
||||||||||||||||||
Allowance for loan losses at beginning of period
|
$
|
8,255
|
$
|
14,748
|
$
|
216
|
$
|
143
|
$
|
1,230
|
$
|
24,592
|
||||||||||||
(Reduction in) provision for loan losses
|
(408
|
)
|
(1,031
|
)
|
(41
|
)
|
(43
|
)
|
1,073
|
(450
|
)
|
|||||||||||||
Charge-offs
|
(884
|
)
|
(550
|
)
|
—
|
(25
|
)
|
—
|
(1,459
|
)
|
||||||||||||||
Recoveries
|
90
|
50
|
5
|
4
|
—
|
149
|
||||||||||||||||||
Allowance for loan losses at end of period
|
$
|
7,053
|
$
|
13,217
|
$
|
180
|
$
|
79
|
$
|
2,303
|
$
|
22,832
|
||||||||||||
Ending allowance for loan losses balance for loans individually evaluated for impairment
|
$
|
—
|
$
|
289
|
$
|
—
|
$
|
—
|
$
|
289
|
||||||||||||||
Ending allowance for loan losses balance for loans collectively evaluated for impairment
|
$
|
7,053
|
$
|
12,928
|
$
|
180
|
$
|
79
|
$
|
20,240
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||
Recorded investment in loans
|
$
|
395,911
|
$
|
715,033
|
$
|
10,112
|
$
|
6,673
|
$
|
1,127,729
|
||||||||||||||
Recorded investment in loans individually evaluated for impairment
|
$
|
579
|
$
|
16,489
|
$
|
4,530
|
$
|
—
|
$
|
21,598
|
||||||||||||||
Recorded investment in loans collectively evaluated for impairment
|
$
|
395,332
|
$
|
698,544
|
$
|
5,582
|
$
|
6,673
|
$
|
1,106,131
|
As of and for the three months ended
March 31, 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
|
||||||||||||
(Reduction in) provision for loan losses
|
1,923
|
(2,638
|
)
|
(104
|
)
|
(6
|
)
|
1,225
|
400
|
|||||||||||||||
Charge-offs
|
(784
|
)
|
(340
|
)
|
—
|
(42
|
)
|
—
|
(1,166
|
)
|
||||||||||||||
Recoveries
|
118
|
363
|
19
|
11
|
—
|
511
|
||||||||||||||||||
Allowance for loan losses at end of period
|
$
|
9,223
|
$
|
16,598
|
$
|
235
|
$
|
100
|
$
|
1,910
|
$
|
28,066
|
||||||||||||
Ending allowance for loan losses balance for loans individually evaluated for impairment
|
$
|
362
|
$
|
655
|
$
|
—
|
$
|
—
|
$
|
1,017
|
||||||||||||||
Ending allowance for loan losses balance for loans collectively evaluated for impairment
|
$
|
8,861
|
$
|
15,943
|
$
|
235
|
$
|
100
|
$
|
25,139
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||
Recorded investment in loans
|
$
|
344,975
|
$
|
691,071
|
$
|
9,208
|
$
|
4,795
|
$
|
1,050,049
|
||||||||||||||
Recorded investment in loans individually evaluated for impairment
|
$
|
9,315
|
$
|
29,165
|
$
|
3,263
|
$
|
1
|
$
|
41,744
|
||||||||||||||
Recorded investment in loans collectively evaluated for impairment
|
$
|
335,660
|
$
|
661,906
|
$
|
5,945
|
$
|
4,794
|
$
|
1,008,305
|
Balance as of January 1, 2013
|
||||
Goodwill
|
21,827
|
|||
Accumulated impairment losses
|
7,500
|
|||
Net goodwill
|
$
|
14,327
|
||
Impairment losses for the three months ended March 31, 2013
|
—
|
|||
Balance as of March 31, 2013
|
||||
Goodwill
|
21,827
|
|||
Accumulated impairment losses
|
7,500
|
|||
Net goodwill
|
$
|
14,327
|
For the Three Months
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(In thousands, except per share amounts)
|
||||||||
Net income available to common shareholders
|
$
|
3,027
|
$
|
2,170
|
||||
Weighted average common shares in basic EPS
|
18,332
|
13,169
|
||||||
Effect of dilutive securities
|
391
|
140
|
||||||
Weighted average common and potentially dilutive common shares used in diluted EPS
|
18,723
|
13,309
|
||||||
Income per common share:
|
||||||||
Basic
|
$
|
0.17
|
$
|
0.16
|
||||
Diluted
|
$
|
0.16
|
$
|
0.16
|
As of
March 31, 2013
|
As of
December 31, 2012
|
|||||||
(Dollars in thousands)
|
||||||||
Unfunded loan commitments including unfunded lines of credit
|
$
|
117,221
|
$
|
99,474
|
||||
Standby letters of credit
|
9,821
|
10,387
|
||||||
Commercial letters of credit
|
2,660
|
1,595
|
||||||
Operating leases
|
6,750
|
7,337
|
||||||
Total financial instruments with off-balance sheet risk
|
$
|
136,452
|
$
|
118,793
|
Actual
|
Minimum
Required For
Capital Adequacy
Purposes
|
To be Categorized
as Well Capitalized
under Prompt
Corrective Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of March 31, 2013
|
||||||||||||||||||||||||
Total risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
$
|
214,605
|
17.75
|
%
|
$
|
96,750
|
8.00
|
%
|
$
|
N/A
|
N/A
|
%
|
||||||||||||
MetroBank, N.A.
|
155,837
|
17.76
|
70,186
|
8.00
|
87,733
|
10.00
|
||||||||||||||||||
Metro United Bank
|
52,931
|
16.10
|
26,309
|
8.00
|
32,886
|
10.00
|
||||||||||||||||||
Tier 1 risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
199,323
|
16.48
|
48,375
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
144,743
|
16.50
|
35,093
|
4.00
|
52,640
|
6.00
|
||||||||||||||||||
Metro United Bank
|
48,782
|
14.83
|
13,154
|
4.00
|
19,732
|
6.00
|
||||||||||||||||||
Leverage ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
199,323
|
13.09
|
60,923
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
144,743
|
13.04
|
44,389
|
4.00
|
55,487
|
5.00
|
||||||||||||||||||
Metro United Bank
|
48,782
|
11.76
|
16,596
|
4.00
|
20,745
|
5.00
|
||||||||||||||||||
As of December 31, 2012
|
||||||||||||||||||||||||
Total risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
$
|
212,083
|
17.95
|
%
|
$
|
94,509
|
8.00
|
%
|
$
|
N/A
|
N/A
|
%
|
||||||||||||
MetroBank, N.A.
|
152,613
|
17.80
|
68,587
|
8.00
|
85,734
|
10.00
|
||||||||||||||||||
Metro United Bank
|
52,714
|
16.34
|
25,814
|
8.00
|
32,267
|
10.00
|
||||||||||||||||||
Tier 1 risk-based capital ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
197,077
|
16.68
|
47,255
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
141,702
|
16.53
|
34,293
|
4.00
|
51,440
|
6.00
|
||||||||||||||||||
Metro United Bank
|
48,636
|
15.07
|
12,907
|
4.00
|
19,360
|
6.00
|
||||||||||||||||||
Leverage ratio
|
||||||||||||||||||||||||
MetroCorp Bancshares, Inc.
|
197,077
|
13.18
|
59,812
|
4.00
|
N/A
|
N/A
|
||||||||||||||||||
MetroBank, N.A.
|
141,702
|
12.70
|
44,613
|
4.00
|
55,766
|
5.00
|
||||||||||||||||||
Metro United Bank
|
48,636
|
12.76
|
15,243
|
4.00
|
19,053
|
5.00
|
Three Months Ended March 31, 2013
|
Three Months Ended March 31, 2012
|
|||||||||||||||||||||||
Before Tax Amount
|
Tax Expense (Benefit)
|
Net of Tax Amount
|
Before Tax Amount
|
Tax Expense (Benefit)
|
Net of Tax Amount
|
|||||||||||||||||||
Change in accumulated gain on effective cash flow derivatives
|
$
|
151
|
$
|
55
|
$
|
96
|
$
|
68
|
$
|
25
|
$
|
43
|
||||||||||||
Unrealized loss on investment securities with OTTI:
|
||||||||||||||||||||||||
Securities with OTTI charges during the period
|
(40
|
)
|
(15
|
)
|
(25
|
)
|
(39
|
)
|
(14
|
)
|
(25
|
)
|
||||||||||||
Less: OTTI charges recognized in net income
|
(27
|
)
|
(10
|
)
|
(17
|
)
|
(39
|
)
|
(14
|
)
|
(25
|
)
|
||||||||||||
Net unrealized losses on investment securities with OTTI
|
(13
|
)
|
(5
|
)
|
(8
|
)
|
—
|
—
|
—
|
|||||||||||||||
Unrealized gain (loss) on investment securities:
|
||||||||||||||||||||||||
Unrealized holding gain (loss) arising during the period
|
(663
|
)
|
(238
|
)
|
(425
|
)
|
31
|
10
|
21
|
|||||||||||||||
Less: reclassification adjustment for gain included in net income
|
14
|
5
|
9
|
12
|
4
|
8
|
||||||||||||||||||
Net unrealized gains (losses) on investment securities
|
(677
|
)
|
(243
|
)
|
(434
|
)
|
19
|
6
|
13
|
|||||||||||||||
Other comprehensive (loss) income
|
$
|
(539
|
)
|
$
|
(193
|
)
|
$
|
(346
|
)
|
$
|
87
|
$
|
31
|
$
|
56
|
Gains (Losses) on Effective Cash Hedging Derivatives
|
Net Unrealized Gains (Losses) on Investments with OTTI
|
Net Unrealized Investment Gains
|
Total Accumulated Other Comprehensive Income (Loss)
|
|||||||||||||
Accumulated other comprehensive income (loss) December 31, 2012
|
$
|
(1,136
|
)
|
$
|
(1,017
|
)
|
$
|
2,720
|
$
|
567
|
||||||
Other comprehensive income (loss)before reclassifications
|
96
|
(8
|
)
|
(425
|
)
|
(337
|
)
|
|||||||||
Amounts reclassified from other comprehensive income (loss) (1)
|
—
|
—
|
(9
|
)
|
(9
|
)
|
||||||||||
Net current-period other comprehensive income (loss)
|
96
|
(8
|
)
|
(434
|
)
|
(346
|
)
|
|||||||||
Accumulated other comprehensive income (loss) March 31, 2013
|
$
|
(1,040
|
)
|
$
|
(1,025
|
)
|
$
|
2,286
|
$
|
221
|
(1)
|
Amounts reclassified from other comprehensive income were transferred to gain (loss) on securities, net.
|
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Notional Amount
|
Estimated Fair Value
|
Notional Amount
|
Estimated Fair Value
|
|||||||||||||
Interest rate derivative contract designated as a hedge of cash flows
|
$
|
17,500
|
$
|
(1,624
|
)
|
$
|
17,500
|
$
|
(1,775
|
)
|
||||||
Interest rate derivative contract not designated as a hedge of cash flows
|
$
|
15,000
|
$
|
49
|
$
|
15,000
|
$
|
41
|
Gains recorded in income and other comprehensive income, net of tax
(in thousands)
|
||||||||||||||||||||
Derivatives – effective portion reclassified from AOCI into income
|
Hedge ineffectiveness recorded directly in income
|
Total income statement impact
|
Derivatives – effective portion recorded in OCI
|
Total change in OCI
for period
|
||||||||||||||||
Three months ended March 31, 2013
|
||||||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
96
|
$
|
96
|
||||||||||
Three months ended March 31, 2012
|
||||||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
43
|
$
|
43
|
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Non-hedging interest rate derivative:
|
||||||||
Other non-interest income
|
$
|
7
|
$
|
(34)
|
For the Three Months Ended March 31, 2013
|
For the Three Months Ended March 31, 2012
|
|||||||||||||||||||||||||||||||
MetroBank
|
Metro United
|
Other
|
Consolidated Company
|
MetroBank
|
Metro United
|
Other
|
Consolidated Company
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Total interest income
|
$ | 10,849 | $ | 4,166 | $ | 2 | $ | 15,017 | $ | 12,410 | $ | 3,981 | $ | 7 | $ | 16,398 | ||||||||||||||||
Total interest expense
|
1,309 | 574 | 312 | 2,195 | 1,737 | 669 | 348 | 2,754 | ||||||||||||||||||||||||
Net interest income
|
9,540 | 3,592 | (310 | ) | 12,822 | 10,673 | 3,312 | (341 | ) | 13,644 | ||||||||||||||||||||||
(Reduction in) provision for loan losses
|
(450 | ) |
─
|
─
|
(450 | ) | 400 |
─
|
─
|
400 | ||||||||||||||||||||||
Net interest income after provision for loan losses
|
9,990 | 3,592 | (310 | ) | 13,272 | 10,273 | 3,312 | (341 | ) | 13,244 | ||||||||||||||||||||||
Noninterest income
|
1,905 | 106 | (361 | ) | 1,650 | 2,057 | 84 | (338 | ) | 1,803 | ||||||||||||||||||||||
Noninterest expenses
|
7,418 | 2,411 | 473 | 10,302 | 8,513 | 2,391 | 29 | 10,933 | ||||||||||||||||||||||||
Income (loss) before income tax provision
|
4,477 | 1,287 | (1,144 | ) | 4,620 | 3,817 | 1,005 | (708 | ) | 4,114 | ||||||||||||||||||||||
Provision (benefit) for income taxes
|
1,435 | 548 | (390 | ) | 1,593 | 1,160 | 423 | (237 | ) | 1,346 | ||||||||||||||||||||||
Net income (loss)
|
$ | 3,042 | $ | 739 | $ | (754 | ) | $ | 3,027 | $ | 2,657 | $ | 582 | $ | (471 | ) | $ | 2,768 |
As of March 31, 2013
|
As of March 31, 2012
|
|||||||||||||||||||||||||||||||
MetroBank
|
Metro United
|
Other
|
Consolidated Company
|
MetroBank
|
Metro United
|
Other
|
Consolidated Company
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Net loans
|
$ | 767,618 | $ | 334,266 | $ |
─
|
$ | 1,101,884 | $ | 724,511 | $ | 293,972 | $ |
─
|
$ | 1,018,483 | ||||||||||||||||
Total assets
|
1,146,420 | 440,418 | 398 | 1,587,236 | 1,106,658 | 395,975 | (1,626 | ) | 1,501,007 | |||||||||||||||||||||||
Deposits
|
964,232 | 370,574 | (6,754 | ) | 1,328,052 | 933,396 | 333,992 | (10,561 | ) | 1,256,827 |
·
|
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.
|
Fair Value Measurements, using
|
||||||||||||||||
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Fair Value
Measurements
|
|||||||||||||
Securities available-for-sale at March 31, 2013
|
||||||||||||||||
U.S. Treasury and other U.S. government sponsored enterprises and agencies
|
$
|
—
|
$
|
81,419
|
$
|
—
|
$
|
81,419
|
||||||||
Obligations of state and political subdivisions
|
—
|
14,995
|
—
|
14,995
|
||||||||||||
Corporate
|
—
|
6,339
|
—
|
6,339
|
||||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
—
|
|||||||||||||||
Government issued or guaranteed
|
—
|
62,732
|
—
|
62,732
|
||||||||||||
Privately issued residential
|
—
|
695
|
—
|
695
|
||||||||||||
Asset backed securities
|
—
|
157
|
—
|
157
|
||||||||||||
Investment in CRA funds
|
14,335
|
—
|
—
|
14,335
|
||||||||||||
Total available-for-sale securities
|
14,335
|
166,337
|
—
|
180,672
|
||||||||||||
Derivative assets
|
||||||||||||||||
Interest rate cap
|
—
|
49
|
—
|
49
|
||||||||||||
Total assets measured at fair value on a recurring basis
|
$
|
14,335
|
$
|
166,386
|
$
|
—
|
$
|
180,721
|
||||||||
Derivative liabilities at March 31, 2013
|
||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
(1,624
|
)
|
$
|
—
|
$
|
(1,624
|
)
|
||||||
Securities available-for-sale at December 31, 2012
|
||||||||||||||||
U.S. Treasury and other U.S. government sponsored enterprises and agencies
|
$
|
—
|
$
|
71,181
|
$
|
—
|
$
|
71,181
|
||||||||
Obligations of state and political subdivisions
|
—
|
13,389
|
—
|
13,389
|
||||||||||||
Corporate
|
—
|
6,350
|
—
|
6,350
|
||||||||||||
Mortgage-backed securities and collateralized mortgage obligations:
|
—
|
|||||||||||||||
Government issued or guaranteed
|
—
|
57,941
|
—
|
57,941
|
||||||||||||
Privately issued residential
|
—
|
683
|
—
|
683
|
||||||||||||
Asset backed securities
|
—
|
143
|
—
|
143
|
||||||||||||
Investment in CRA funds
|
14,361
|
—
|
—
|
14,361
|
||||||||||||
Total available-for-sale securities
|
14,361
|
149,687
|
—
|
164,048
|
||||||||||||
Derivative assets
|
||||||||||||||||
Interest rate cap
|
—
|
41
|
—
|
41
|
||||||||||||
Total assets measured at fair value on a recurring basis
|
$
|
14,361
|
$
|
149,728
|
$
|
—
|
$
|
164,089
|
||||||||
Derivative liabilities at December 31, 2012
|
||||||||||||||||
Interest rate swap
|
$
|
—
|
$
|
(1,775)
|
$
|
—
|
$
|
(1,775)
|
As of March 31, 2013
|
||||||||
Level 2
|
Level 3
|
|||||||
Assets
|
||||||||
Goodwill
|
$ | — | $ | 14,327 | ||||
Foreclosed assets
|
— | 12,152 | ||||||
Impaired loans (1)
|
3,728 | — |
As of December 31, 2012
|
||||||||
Level 2
|
Level 3
|
|||||||
Assets
|
||||||||
Goodwill
|
$ | — | $ | 14,327 | ||||
Foreclosed assets
|
— | 12,555 | ||||||
Impaired loans (1)
|
4,646 | — |
Three Months Ended
March 31,
|
||||||||
2013
|
2012
|
|||||||
Losses related to:
|
||||||||
Goodwill
|
$ | — | $ | — | ||||
Foreclosed assets (1)
|
64 | 77 | ||||||
Impaired loans (2)
|
— | — |
As of March 31, 2013
|
As of December 31, 2012
|
|||||||||||||||
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
|
$
|
188,295
|
$
|
188,295
|
$
|
159,449
|
$
|
159,449
|
||||||||
Interest-bearing time deposits in banks
|
15,354
|
15,354
|
15,321
|
15,321
|
||||||||||||
Investment securities held-to-maturity
|
4,046
|
4,670
|
4,046
|
4,757
|
||||||||||||
Other investments
|
5,413
|
5,413
|
5,592
|
5,592
|
||||||||||||
Cash value of bank owned life insurance
|
33,120
|
33,120
|
32,794
|
32,794
|
||||||||||||
Accrued interest receivable
|
3,680
|
3,680
|
4,120
|
4,120
|
||||||||||||
Level 3 inputs:
|
||||||||||||||||
Loans held-for-investment, net
|
1,101,884
|
1,091,892
|
1,075,745
|
1,062,432
|
||||||||||||
Financial Liabilities
|
||||||||||||||||
Level 2 inputs:
|
||||||||||||||||
Deposit transaction accounts
|
810,247
|
810,247
|
808,377
|
808,377
|
||||||||||||
Junior subordinated debentures
|
36,083
|
36,083
|
36,083
|
36,083
|
||||||||||||
Accrued interest payable
|
274
|
274
|
233
|
233
|
||||||||||||
Level 3 inputs: | ||||||||||||||||
Time deposits
|
517,804
|
520,982
|
458,653
|
461,672
|
||||||||||||
Other borrowings
|
30,000
|
29,976
|
25,000
|
25,008
|
||||||||||||
Off-balance sheet financial instruments
|
||||||||||||||||
Unfunded loan commitments, including unfunded lines of credit
|
—
|
226
|
—
|
251
|
||||||||||||
Standby letters of credit
|
—
|
13
|
—
|
24
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
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 Agreement with the OCC;
|
•
|
the Company’s ability to identify suitable acquisition candidates;
|
•
|
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 our 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 our present and future banking and other subsidiaries, including changes in tax requirements and tax rates;
|
•
|
the potential payment of interest on demand deposit accounts in order to effectively compete 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 March 31,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|||||||||||||||||||
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|||||||||||||||||||
Balance
|
Paid
|
Rate(1)
|
Balance
|
Paid
|
Rate(1)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$
|
1,095,386
|
$
|
13,829
|
5.12
|
%
|
$
|
1,048,717
|
$
|
14,999
|
5.75
|
%
|
||||||||||||
Taxable securities
|
149,913
|
791
|
2.14
|
172,909
|
1,027
|
2.39
|
||||||||||||||||||
Tax-exempt securities
|
17,111
|
147
|
3.48
|
11,622
|
117
|
4.05
|
||||||||||||||||||
Other investments (2)
|
5,580
|
50
|
3.63
|
6,464
|
43
|
2.68
|
||||||||||||||||||
Federal funds sold and other short-term investments
|
171,880
|
200
|
0.47
|
155,617
|
212
|
0.55
|
||||||||||||||||||
Total interest-earning assets
|
1,439,870
|
15,017
|
4.23
|
1,395,329
|
16,398
|
4.73
|
||||||||||||||||||
Allowance for loan losses
|
(24,262
|
)
|
(28,707
|
)
|
||||||||||||||||||||
Total interest-earning assets, net of allowance for loan losses
|
1,415,608
|
1,366,622
|
||||||||||||||||||||||
Noninterest-earning assets
|
121,471
|
126,791
|
||||||||||||||||||||||
Total assets
|
$
|
1,537,079
|
$
|
1,493,413
|
||||||||||||||||||||
Liabilities and shareholders' equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
70,776
|
$
|
21
|
0.12
|
%
|
$
|
63,839
|
$
|
21
|
0.13
|
%
|
||||||||||||
Savings and money market accounts
|
412,248
|
406
|
0.40
|
438,445
|
614
|
0.56
|
||||||||||||||||||
Time deposits
|
491,428
|
1,219
|
1.01
|
498,564
|
1,536
|
1.24
|
||||||||||||||||||
Junior subordinated debentures
|
36,083
|
316
|
3.50
|
36,083
|
336
|
3.68
|
||||||||||||||||||
Other borrowings
|
28,833
|
233
|
3.28
|
26,007
|
247
|
3.82
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,039,368
|
2,195
|
0.86
|
1,062,938
|
2,754
|
1.04
|
||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing demand deposits
|
306,101
|
247,030
|
||||||||||||||||||||||
Other liabilities
|
13,087
|
16,416
|
||||||||||||||||||||||
Total liabilities
|
1,358,556
|
1,326,384
|
||||||||||||||||||||||
Shareholders' equity
|
178,523
|
167,029
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,537,079
|
$
|
1,493,413
|
||||||||||||||||||||
Net interest income
|
$
|
12,822
|
$
|
13,644
|
||||||||||||||||||||
Net interest spread
|
3.37
|
%
|
3.68
|
%
|
||||||||||||||||||||
Net interest margin
|
3.61
|
%
|
3.93
|
%
|
(1)
|
Annualized.
|
|
(2)
|
Other investments include Federal Reserve Bank stock, Federal Home Loan Bank stock and investment in subsidiary trust.
|
Three Months Ended March 31,
|
||||||||||||
2013 vs 2012
|
||||||||||||
Increase (Decrease)
|
||||||||||||
Due to
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans
|
$
|
538
|
$
|
(1,708
|
)
|
$
|
(1,170
|
)
|
||||
Taxable securities
|
(144
|
)
|
(92
|
)
|
(236
|
)
|
||||||
Tax-exempt securities
|
54
|
(24
|
)
|
30
|
||||||||
Other investments
|
(6
|
)
|
13
|
7
|
||||||||
Federal funds sold and other short-term investments
|
20
|
(32
|
)
|
(12
|
)
|
|||||||
Total decrease in interest income
|
462
|
(1,843
|
)
|
(1,381
|
)
|
|||||||
Interest-bearing liabilities:
|
||||||||||||
Interest-bearing demand deposits
|
2
|
(2
|
)
|
—
|
||||||||
Savings and money market accounts
|
(41
|
)
|
(167
|
)
|
(208
|
)
|
||||||
Time deposits
|
(35
|
)
|
(282
|
)
|
(317
|
)
|
||||||
Junior subordinated debentures
|
(8
|
)
|
(12
|
)
|
(20
|
)
|
||||||
Other borrowings
|
25
|
|
(39
|
)
|
(14
|
)
|
||||||
Total decrease in interest expense
|
(57
|
)
|
(502
|
)
|
(559
|
)
|
||||||
(Decrease) increase in net interest income
|
$
|
519
|
$
|
(1,341
|
)
|
$
|
(822
|
)
|
As of March 31, 2013
|
As of December 31, 2012
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial and industrial
|
$
|
395,640
|
35.10
|
%
|
$
|
383,641
|
34.78
|
%
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
37,526
|
3.33
|
36,807
|
3.34
|
||||||||||||
Commercial
|
677,061
|
60.07
|
665,244
|
60.32
|
||||||||||||
714,587
|
63.40
|
702,051
|
63.66
|
|||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
2,753
|
0.24
|
2,420
|
0.22
|
||||||||||||
Commercial
|
7,379
|
0.66
|
7,284
|
0.66
|
||||||||||||
10,132
|
0.90
|
9,704
|
0.88
|
|||||||||||||
Consumer and other
|
6,808
|
0.60
|
7,531
|
0.68
|
||||||||||||
Gross loans
|
1,127,167
|
100.00
|
%
|
1,102,927
|
100.00
|
%
|
||||||||||
Unearned discounts, interest and deferred fees
|
(2,451
|
)
|
(2,590
|
)
|
||||||||||||
Total loans
|
1,124,716
|
1,100,337
|
||||||||||||||
Allowance for loan losses
|
(22,832
|
)
|
(24,592
|
)
|
||||||||||||
Loans, net
|
$
|
1,101,884
|
$
|
1,075,745
|
As of
|
As of
|
|||||||
March 31, 2013
|
December 31, 2012
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans (1)
|
$
|
17,501
|
$
|
23,568
|
||||
Accruing loans 90 days or more past due (1)
|
—
|
—
|
||||||
Troubled debt restructurings – accruing (1)
|
—
|
400
|
||||||
Troubled debt restructurings – nonaccruing (1)
|
4,098
|
5,014
|
||||||
Other real estate (“ORE”)
|
12,152
|
12,555
|
||||||
Total nonperforming assets
|
33,751
|
41,537
|
||||||
Total nonperforming assets to total assets
|
2.13
|
%
|
2.73
|
%
|
||||
Total nonperforming assets to total loans and ORE
|
2.97
|
%
|
3.73
|
%
|
As of March 31, 2013
|
Recorded Investment
|
Unpaid
Principal Balance
|
Related Allowance
|
Average
Recorded Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
579
|
$
|
579
|
$
|
—
|
$
|
4,394
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
142
|
142
|
—
|
188
|
||||||||||||
Commercial
|
12,368
|
12,368
|
—
|
17,096
|
||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
1,426
|
1,426
|
—
|
1,885
|
||||||||||||
Commercial
|
3,104
|
3,104
|
—
|
3,132
|
||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
17
|
||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
3,979
|
3,980
|
252
|
4,530
|
||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$
|
579
|
$
|
579
|
$
|
—
|
$
|
4,411
|
||||||||
Real estate mortgage
|
16,489
|
16,490
|
252
|
21,814
|
||||||||||||
Real estate construction
|
4,530
|
4,530
|
—
|
5,017
|
As of December 31, 2012
|
Recorded Investment
|
Unpaid
Principal Balance
|
Related Allowance
|
Average
Recorded Investment
|
||||||||||||
Impaired loans with no allowance
|
||||||||||||||||
Commercial and industrial
|
$ | 1,287 | $ | 1,289 | $ | — | $ | 5,162 | ||||||||
Real estate mortgage:
|
||||||||||||||||
Residential
|
239 | 239 | — | 213 | ||||||||||||
Commercial
|
18,369 | 18,369 | — | 19,732 | ||||||||||||
Real estate construction:
|
||||||||||||||||
Residential
|
1,426 | 1,426 | — | 1,529 | ||||||||||||
Commercial
|
3,103 | 3,103 | — | 3,171 | ||||||||||||
Impaired loans with an allowance
|
||||||||||||||||
Commercial and industrial
|
21 | 21 | 21 | 1,434 | ||||||||||||
Real estate mortgage:
|
||||||||||||||||
Commercial
|
4,533 | 4,535 | 503 | 6,836 | ||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$ | 1,308 | $ | 1,310 | $ | 21 | $ | 6,596 | ||||||||
Real estate mortgage
|
23,141 | 23,143 | 503 | 26,781 | ||||||||||||
Real estate construction
|
4,529 | 4,529 | — | 4,700 |
As of and for the
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(Dollars in thousands)
|
||||||||
Average total loans outstanding for the period
|
$
|
1,095,386
|
$
|
1,048,717
|
||||
Total loans outstanding at end of period
|
$
|
1,124,716
|
$
|
1,046,549
|
||||
Allowance for loan losses at beginning of period
|
$
|
24,592
|
$
|
28,321
|
||||
(Reduction in) provision for loan losses
|
(450
|
)
|
400
|
|||||
Charge-offs:
|
||||||||
Commercial and industrial
|
(884
|
)
|
(784
|
)
|
||||
Real estate mortgage
|
(550
|
)
|
(340
|
)
|
||||
Real estate construction
|
–
|
–
|
||||||
Consumer and other
|
(25
|
)
|
(42
|
)
|
||||
Total charge-offs
|
(1,459
|
)
|
(1,166
|
)
|
||||
Recoveries:
|
||||||||
Commercial and industrial
|
90
|
118
|
||||||
Real estate mortgage
|
50
|
363
|
||||||
Real estate construction
|
5
|
19
|
||||||
Consumer and other
|
4
|
11
|
||||||
Total recoveries
|
149
|
511
|
||||||
Net charge-offs
|
(1,310
|
)
|
(655
|
)
|
||||
Allowance for loan losses at end of period
|
22,832
|
28,066
|
||||||
Reserve for unfunded lending commitments at beginning of period
|
961
|
1,012
|
||||||
Provision (reversal) for unfunded lending commitments
|
(12
|
)
|
(212
|
)
|
||||
Reserve for unfunded lending commitments at end of period
|
949
|
800
|
||||||
Allowance for credit losses
|
$
|
23,781
|
$
|
28,866
|
||||
Ratio of allowance for loan losses to end of period total loans
|
2.03
|
%
|
2.68
|
%
|
||||
Ratio of net (charge-offs) recoveries to average total loans
|
(0.12
|
)%
|
(0.06
|
)%
|
||||
Ratio of allowance for loan losses to end of period total nonperforming loans (1)
|
105.71
|
%
|
67.18
|
%
|
(1)
|
Total nonperforming loans are nonaccrual loans, accruing and nonaccruing TDRs, plus loans over 90 days past due.
|
As of and for the
Three Months Ended
March 31, 2013
|
As of and for the
Year Ended
December 31, 2012
|
|||||||
(Dollars in thousands)
|
||||||||
FHLB Notes and Advances:
|
||||||||
at end of period
|
$ | 5,000 | $ | — | ||||
average during the period
|
3,833 | — | ||||||
maximum month-end balance during the period
|
5,000 | 3 | ||||||
Interest rate at end of period
|
0.91 | % | — | % | ||||
Interest rate during the period
|
0.89 | 0.02 | ||||||
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
|
$ | — | $ | — | ||||
average during the period
|
— | 926 | ||||||
maximum month-end balance during the period
|
— | 1,000 | ||||||
Interest rate at end of period
|
— | % | 5.00 | % | ||||
Interest rate during the period
|
— | 5.00 | ||||||
Federal Reserve TT&L:
|
||||||||
at end of period
|
$ | — | $ | — | ||||
average during the period
|
— | 2 | ||||||
maximum month-end balance during the period
|
— | — |
Minimum
Required For
Capital Adequacy
Purposes
|
To Be Categorized
as Well Capitalized
Under
Prompt Corrective
Action Provisions
|
Actual Ratio At
March 31, 2013
|
||||||||||
The Company
|
||||||||||||
Leverage ratio
|
4.00 | %(1) | N/A | 13.09 | % | |||||||
Tier 1 risk-based capital ratio
|
4.00 | N/A | 16.48 | |||||||||
Risk-based capital ratio
|
8.00 | N/A | 17.75 | |||||||||
MetroBank
|
||||||||||||
Leverage ratio
|
4.00 | %(2) | 5.00 | % | 13.04 | % | ||||||
Tier 1 risk-based capital ratio
|
4.00 | 6.00 | 16.50 | |||||||||
Risk-based capital ratio
|
8.00 | 10.00 | 17.76 | |||||||||
Metro United
|
||||||||||||
Leverage ratio
|
4.00 | %(3) | 5.00 | % | 11.76 | % | ||||||
Tier 1 risk-based capital ratio
|
4.00 | 6.00 | 14.83 | |||||||||
Risk-based capital ratio
|
8.00 | 10.00 | 16.10 |
(1)
|
The Federal Reserve Board may require the Company to maintain a leverage ratio above the required minimum.
|
||
(2)
|
The OCC may require MetroBank to maintain a leverage ratio above the required minimum.
|
||
(3)
|
The FDIC may require Metro United to maintain a leverage ratio above the required minimum.
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
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)
|
||||||||||||
February 1, 2013 to February 28, 2013
|
20,210
|
$
|
10.27
|
N/A
|
N/A
|
|||||||||||
March 1, 2013 to March 31, 2013
|
274
|
10.61
|
N/A
|
N/A
|
||||||||||||
Total
|
20,484
|
$
|
10.27
|
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 us and certain key employees and directors.
|
|
(2)
|
The Company has no publicly announced plans or programs.
|
Item 3.
|
Defaults Upon Senior Securities.
|
Not applicable
|
Item 4.
|
Mine Safety Disclosures.
Not applicable
|
Item 5.
|
Other Information.
|
Not applicable
|
Item 6.
|
Exhibits.
|
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.
|
* Filed herewith.
|
** Furnished herewith.
|
METROCORP BANCSHARES, INC.
|
|||
By:
|
/s/ George M. Lee
|
||
Date: May 9, 2013
|
George M. Lee
Co-Chairman, President and
|
||
Chief Executive Officer (principal executive officer)
|
|||
Date: May 9, 2013
|
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.
|
* Filed herewith.
|
** Furnished herewith.
|
I, George M. Lee, certify that:
|
|
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
|
|
Co-Chairman, President and Chief Executive Officer
|
I, David C. Choi, certify that:
|
|
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
Co-Chairman, President and Chief Executive Officer
|
||
May 9, 2013
|
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
|
|
May 9, 2013
|
Note 3 - Loans and Allowance for Loan Losses (Detail) - Recorded Investment In Loans By Credit Risk Profile (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
---|---|---|---|
Grade | $ 1,127,729 | $ 1,103,478 | $ 1,050,049 |
Commercial And Industrial [Member] | Pass [Member]
|
|||
Grade | 380,163 | 366,571 | |
Commercial And Industrial [Member] | Special Mention [Member]
|
|||
Grade | 3,797 | 4,393 | |
Commercial And Industrial [Member] | Substandard [Member]
|
|||
Grade | 11,951 | 12,941 | |
Commercial And Industrial [Member]
|
|||
Grade | 395,911 | 383,905 | 344,975 |
Real Estate Mortgage [Member] | Pass [Member]
|
|||
Grade | 645,678 | 611,159 | |
Real Estate Mortgage [Member] | Special Mention [Member]
|
|||
Grade | 13,268 | 14,593 | |
Real Estate Mortgage [Member] | Substandard [Member]
|
|||
Grade | 56,087 | 76,728 | |
Real Estate Mortgage [Member]
|
|||
Grade | 715,033 | 702,480 | 691,071 |
Real Estate Construction [Member] | Pass [Member]
|
|||
Grade | 5,583 | 5,163 | |
Real Estate Construction [Member] | Substandard [Member]
|
|||
Grade | 4,529 | 4,529 | |
Real Estate Construction [Member]
|
|||
Grade | 10,112 | 9,692 | 9,208 |
Consumer And Other [Member] | Pass [Member]
|
|||
Grade | 6,673 | 7,401 | |
Consumer And Other [Member]
|
|||
Grade | 6,673 | 7,401 | 4,795 |
Pass [Member]
|
|||
Grade | 1,038,097 | 990,294 | |
Special Mention [Member]
|
|||
Grade | 17,065 | 18,986 | |
Substandard [Member]
|
|||
Grade | $ 72,567 | $ 94,198 |
Note 9 - Derivative Financial Instruments (Detail) - Notional Amounts And Estimated Fair Values Of Interest Rate Derivative Contracts (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Interest rate derivative contract designated as a hedge of cash flows | $ 17,500 | $ 17,500 |
Interest rate derivative contract designated as a hedge of cash flows | (1,624) | (1,775) |
Interest rate derivative contract not designated as a hedge of cash flows | 15,000 | 15,000 |
Interest rate derivative contract not designated as a hedge of cash flows | $ 49 | $ 41 |
Note 5 - Earnings Per Share (Detail) - Earnings Per Common Share: (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Net income available to common shareholders (in Dollars) | $ 3,027 | $ 2,170 |
Weighted average common shares in basic EPS | 18,332 | 13,169 |
Effect of dilutive securities | 391 | 140 |
Weighted average common and potentially dilutive common shares used in diluted EPS | 18,723 | 13,309 |
Income per common share: | ||
Basic (in Dollars per share) | $ 0.17 | $ 0.16 |
Diluted (in Dollars per share) | $ 0.16 | $ 0.16 |
Note 9 - Derivative Financial Instruments (Detail) - Derivatives Designated As Cash Flow Hedges (Interest Rate Swap [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Interest Rate Swap [Member]
|
||
Interest rate swap | $ 96 | $ 43 |
Note 4 - Goodwill (Detail) - Changes In The Carrying Amount of the Company’s Goodwill (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Goodwill | $ 21,827 | $ 21,827 |
Accumulated impairment losses | 7,500 | 7,500 |
Net goodwill | $ 14,327 | $ 14,327 |
Note 6 - Commitments and Contingencies (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] |
|
Note 3 - Loans and Allowance for Loan Losses (Detail) - Information On Impaired Loans (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Commercial And Industrial [Member] | No Allowance [Member]
|
||
Recorded Investment | $ 579 | $ 1,287 |
Unpaid Principal Balance | 579 | 1,289 |
Average Recorded Investment | 4,394 | 5,162 |
Commercial And Industrial [Member] | With Allowance [Member]
|
||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
Related Allowance | 21 | |
Average Recorded Investment | 17 | 1,434 |
Real Estate Mortgage Residential [Member] | No Allowance [Member]
|
||
Recorded Investment | 142 | 239 |
Unpaid Principal Balance | 142 | 239 |
Average Recorded Investment | 188 | 213 |
Real Estate Mortgage Commercial [Member] | No Allowance [Member]
|
||
Recorded Investment | 12,368 | 18,369 |
Unpaid Principal Balance | 12,368 | 18,369 |
Average Recorded Investment | 17,096 | 19,732 |
Real Estate Mortgage Commercial [Member] | With Allowance [Member]
|
||
Recorded Investment | 3,979 | 4,533 |
Unpaid Principal Balance | 3,980 | 4,535 |
Related Allowance | 252 | 503 |
Average Recorded Investment | 4,530 | 6,836 |
Real Estate Construction Residential [Member] | No Allowance [Member]
|
||
Recorded Investment | 1,426 | 1,426 |
Unpaid Principal Balance | 1,426 | 1,426 |
Average Recorded Investment | 1,885 | 1,529 |
Real Estate Construction Commercial [Member] | No Allowance [Member]
|
||
Recorded Investment | 3,104 | 3,103 |
Unpaid Principal Balance | 3,104 | 3,103 |
Average Recorded Investment | 3,132 | 3,171 |
Commercial And Industrial [Member]
|
||
Recorded Investment | 579 | 1,308 |
Unpaid Principal Balance | 579 | 1,310 |
Related Allowance | 21 | |
Average Recorded Investment | 4,411 | 6,596 |
Real Estate Mortgage [Member]
|
||
Recorded Investment | 16,489 | 23,141 |
Unpaid Principal Balance | 16,490 | 23,143 |
Related Allowance | 252 | 503 |
Average Recorded Investment | 21,814 | 26,781 |
Real Estate Construction [Member]
|
||
Recorded Investment | 4,530 | 4,529 |
Unpaid Principal Balance | 4,530 | 4,529 |
Average Recorded Investment | $ 5,017 | $ 4,700 |
Note 3 - Loans and Allowance for Loan Losses (Detail) - Classified By Major Type: (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Unearned discounts, interest and deferred fees | $ (2,451) | $ (2,590) |
Total loans | 1,124,716 | 1,100,337 |
Allowance for loan losses | (22,832) | (24,592) |
Loans, net | 1,101,884 | 1,075,745 |
Commercial And Industrial [Member]
|
||
Amount | 395,640 | 383,641 |
Percent | 35.10% | 34.78% |
Real Estate Mortgage Residential [Member]
|
||
Amount | 37,526 | 36,807 |
Percent | 3.33% | 3.34% |
Real Estate Mortgage Commercial [Member]
|
||
Amount | 677,061 | 665,244 |
Percent | 60.07% | 60.32% |
Real Estate Mortgage [Member]
|
||
Amount | 714,587 | 702,051 |
Percent | 63.40% | 63.66% |
Real Estate Construction Residential [Member]
|
||
Amount | 2,753 | 2,420 |
Percent | 0.24% | 0.22% |
Real Estate Construction Commercial [Member]
|
||
Amount | 7,379 | 7,284 |
Percent | 0.66% | 0.66% |
Real Estate Construction [Member]
|
||
Amount | 10,132 | 9,704 |
Percent | 0.90% | 0.88% |
Consumer And Other [Member]
|
||
Amount | 6,808 | 7,531 |
Percent | 0.60% | 0.68% |
Variable And Fixed [Member]
|
||
Amount | $ 1,127,167 | $ 1,102,927 |
Percent | 100.00% | 100.00% |
Note 11 - Fair Value (Detail) - Carrying Value And Estimated Fair Values Of Financial Instruments (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2009
|
---|---|---|---|---|---|
Level 2 inputs: | |||||
Cash and cash equivalents | $ 188,295 | $ 159,449 | $ 183,312 | $ 193,609 | |
Interest-bearing time deposits in banks | 15,354 | 15,321 | |||
Investment securities held-to-maturity | 4,046 | ||||
Other investments | 5,413 | 5,592 | |||
Cash value of bank owned life insurance | 33,120 | 32,794 | |||
Accrued interest receivable | 3,680 | 4,120 | |||
Level 3 inputs: | |||||
Loans held-for-investment, net | 1,101,884 | 1,075,745 | |||
Level 2 inputs: | |||||
Junior subordinated debentures | 36,100 | ||||
Level 3 inputs: | |||||
Time deposits | 1,328,052 | 1,267,030 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
|||||
Level 2 inputs: | |||||
Cash and cash equivalents | 188,295 | 159,449 | |||
Interest-bearing time deposits in banks | 15,354 | 15,321 | |||
Investment securities held-to-maturity | 4,046 | 4,046 | |||
Other investments | 5,413 | 5,592 | |||
Cash value of bank owned life insurance | 33,120 | 32,794 | |||
Accrued interest receivable | 3,680 | 4,120 | |||
Level 3 inputs: | |||||
Loans held-for-investment, net | 1,101,884 | 1,075,745 | |||
Level 2 inputs: | |||||
Deposit transaction accounts | 810,247 | 808,377 | |||
Junior subordinated debentures | 36,083 | 36,083 | |||
Accrued interest payable | 274 | 233 | |||
Level 3 inputs: | |||||
Time deposits | 517,804 | 458,653 | |||
Other borrowings | 30,000 | 25,000 | |||
Estimate of Fair Value, Fair Value Disclosure [Member]
|
|||||
Level 2 inputs: | |||||
Cash and cash equivalents | 188,295 | 159,449 | |||
Interest-bearing time deposits in banks | 15,354 | 15,321 | |||
Investment securities held-to-maturity | 4,670 | 4,757 | |||
Other investments | 5,413 | 5,592 | |||
Cash value of bank owned life insurance | 33,120 | 32,794 | |||
Accrued interest receivable | 3,680 | 4,120 | |||
Level 3 inputs: | |||||
Loans held-for-investment, net | 1,091,892 | 1,062,432 | |||
Level 2 inputs: | |||||
Deposit transaction accounts | 810,247 | 808,377 | |||
Junior subordinated debentures | 36,083 | 36,083 | |||
Accrued interest payable | 274 | 233 | |||
Level 3 inputs: | |||||
Time deposits | 520,982 | 461,672 | |||
Other borrowings | 29,976 | 25,008 | |||
Off-balance sheet financial instruments | |||||
Unfunded loan commitments, including unfunded lines of credit | 226 | 251 | |||
Standby letters of credit | $ 13 | $ 24 |
Note 5 - Earnings Per Share (Detail)
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3 Months Ended | 12 Months Ended |
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Mar. 31, 2013
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Dec. 31, 2012
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Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 258,920 | 652,750 |
Note 2 - Securities
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investment [Text Block] |
2. SECURITIES
The
amortized cost and approximate fair value of securities is as
follows:
The
following tables display the fair value and gross unrealized
losses on securities available-for-sale as of March 31, 2013
and December 31, 2012 for which 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 March 31, 2013 or December 31, 2012.
As
of March 31, 2013, 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 any of the
unrealized losses above are due to credit quality.
Accordingly, management believes the $306,000 of unrealized
losses is temporary and the remaining $509,000 of OTTI as of
March 31, 2013 represents an unrealized loss for which an
impairment has been recognized in other comprehensive
loss.
Other-Than-Temporary
Impairments (OTTI)
The
following table represents the impairment activity related to
debt securities (in thousands):
For
the three months ended March 31, 2013, the Company
recognized credit-related losses of $10,000 on one non-agency
residential mortgage-backed security and $6,000 on one
asset-backed security. There were no noncredit impairments
included in accumulated other comprehensive
income for the three months ended March 31,
2013.
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.
Other
Securities Information
There
were no sales (excluding calls and maturities) of
available-for-sale securities for the three months ended
March 31, 2013 or 2012. There were no sales or
transfers of held-to-maturity securities for the three months
ended March 31, 2013 or 2012.
At
March 31, 2013, 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 12 - Income Taxes (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Effective Income Tax Rate, Continuing Operations | 34.50% | 32.70% |
Deferred Tax Assets, Net (in Dollars) | $ 12.7 | |
Operating Loss Carryforward Period | 20 years |