þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Idaho | 82-0499463 | |
(State or other jurisdiction of | (IRS Employer | |
incorporation or organization) | Identification No.) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company þ |
(Do not check if a smaller reporting company) |
Item 4 —Mine Safety Disclosure | |
EX-31.1 | |
EX-31.2 | |
EX-32 | |
EX-101 |
June 30, 2013 | December 31, 2012 | ||||||
(Dollars in thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents: | |||||||
Interest-bearing | $ | 33,474 | $ | 53,403 | |||
Non-interest bearing and vault | 7,003 | 13,536 | |||||
Restricted cash | 12,464 | 13,146 | |||||
Available-for-sale securities, at fair value | 256,616 | 280,169 | |||||
Held-to-maturity securities, at amortized cost | 22,991 | 14,826 | |||||
Federal Home Loan Bank (“FHLB”) of Seattle stock, at cost | 2,228 | 2,269 | |||||
Loans held for sale | 1,081 | 1,684 | |||||
Loans receivable, net | 522,740 | 520,768 | |||||
Accrued interest receivable | 4,463 | 4,320 | |||||
Office properties and equipment, net | 35,408 | 35,453 | |||||
Bank-owned life insurance ("BOLI") | 9,642 | 9,472 | |||||
Other real estate owned (“OREO”) | 4,512 | 4,951 | |||||
Prepaid expenses and other assets | 17,936 | 18,142 | |||||
Total assets | $ | 930,558 | $ | 972,139 | |||
LIABILITIES | |||||||
Deposits | $ | 699,521 | $ | 748,934 | |||
Securities sold subject to repurchase agreements | 85,605 | 76,738 | |||||
Advances from Federal Home Loan Bank | 4,000 | 4,000 | |||||
Unexercised stock warrant liability | 826 | 828 | |||||
Cashier checks issued and payable | 2,278 | 2,024 | |||||
Accrued interest payable | 316 | 1,185 | |||||
Other borrowings | 16,527 | 16,527 | |||||
Accrued expenses and other liabilities | 8,440 | 7,469 | |||||
Total liabilities | 817,513 | 857,705 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Common stock 30,000,000 shares authorized; 2,603,606 and 2,603,674 shares issued and 2,603,606,and 2,603,131 shares outstanding as of June 30, 2013 and December 31, 2012, respectively | 96,358 | 96,368 | |||||
Common stock - non-voting 10,000,000 shares authorized; 3,839,688 and 3,839,688 shares issued and outstanding as of June 30, 2013 and December 31, 2012, respectively | 31,941 | 31,941 | |||||
Preferred stock, Series A, 27,000 shares issued and outstanding as of June 30, 2013 and December 31, 2012, respectively; liquidation preference of $1,000 per share | 26,770 | 26,527 | |||||
Accumulated other comprehensive income, net of tax | (641 | ) | 3,529 | ||||
Accumulated deficit | (41,383 | ) | (43,931 | ) | |||
Total stockholders’ equity | 113,045 | 114,434 | |||||
Total liabilities and stockholders’ equity | $ | 930,558 | $ | 972,139 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||
Interest income: | |||||||||||||||
Loans | $ | 6,893 | $ | 7,054 | $ | 13,604 | $ | 14,126 | |||||||
Investments | 1,580 | 2,072 | 3,172 | 4,120 | |||||||||||
Total interest income | 8,473 | 9,126 | 16,776 | 18,246 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 510 | 744 | 1,070 | 1,566 | |||||||||||
Other borrowings | 441 | 571 | 866 | 1,247 | |||||||||||
Total interest expense | 951 | 1,315 | 1,936 | 2,813 | |||||||||||
Net interest income | 7,522 | 7,811 | 14,840 | 15,433 | |||||||||||
Provision for losses on loans | (247 | ) | (1,575 | ) | (426 | ) | (2,534 | ) | |||||||
Net interest income after provision for losses on loans | 7,275 | 6,236 | 14,414 | 12,899 | |||||||||||
Other income: | |||||||||||||||
Fees and service charges | 1,895 | 1,592 | 3,570 | 3,185 | |||||||||||
Loan related fee income | 696 | 686 | 1,263 | 1,299 | |||||||||||
Net gain on sale of securities | 163 | — | 203 | 585 | |||||||||||
Net gain (loss) on sale of other assets | 2 | 18 | 6 | 22 | |||||||||||
Other-than-temporary impairment (“OTTI”) losses on investments (1) | (21 | ) | (52 | ) | (63 | ) | (323 | ) | |||||||
Bank-owned life insurance | 85 | 87 | 170 | 174 | |||||||||||
Fair value adjustment on cash flow hedge | 80 | 90 | 146 | (294 | ) | ||||||||||
Unexercised warrant liability fair value adjustment | (54 | ) | 158 | 2 | 158 | ||||||||||
Other | 40 | 189 | 153 | 398 | |||||||||||
Total other income | 2,886 | 2,768 | 5,450 | 5,204 | |||||||||||
Operating expenses: | |||||||||||||||
Salaries and employee benefits | 4,283 | 3,871 | 8,458 | 8,006 | |||||||||||
Occupancy expense | 1,521 | 1,623 | 3,045 | 3,307 | |||||||||||
Advertising | 180 | 168 | 294 | 280 | |||||||||||
Fees and service charges | 656 | 629 | 1,273 | 1,250 | |||||||||||
Printing, postage and supplies | 173 | 300 | 390 | 601 | |||||||||||
Legal and accounting | 471 | 396 | 812 | 746 | |||||||||||
FDIC assessment | 165 | 308 | 351 | 621 | |||||||||||
OREO operations | 32 | 120 | 143 | 224 | |||||||||||
Other expenses | 739 | 807 | 1,632 | 1,485 | |||||||||||
Total operating expenses | 8,220 | 8,222 | 16,398 | 16,520 | |||||||||||
Net income before income taxes | 1,941 | 782 | 3,466 | 1,583 | |||||||||||
Income tax benefit | — | — | — | — | |||||||||||
Net income | 1,941 | 782 | 3,466 | 1,583 | |||||||||||
Preferred stock dividend | 460 | 481 | 918 | 947 | |||||||||||
Net income applicable to common stockholders | $ | 1,481 | $ | 301 | $ | 2,548 | $ | 636 | |||||||
Earnings per share — basic | $ | 0.23 | $ | 0.05 | $ | 0.40 | $ | 0.12 | |||||||
Earnings per share — diluted | $ | 0.23 | $ | 0.05 | $ | 0.39 | $ | 0.12 | |||||||
Weighted average common shares outstanding — basic | 6,443,294 | 5,901,321 | 6,443,142 | 5,164,576 | |||||||||||
Weighted average common shares outstanding — diluted | 6,484,762 | 5,919,188 | 6,482,376 | 5,181,109 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net income | $ | 1,941 | $ | 782 | $ | 3,466 | $ | 1,583 | |||||||
Other comprehensive income: | |||||||||||||||
Change in unrealized gains/losses on investments, and mortgage backed securities (“MBS”) available for sale, excluding non-credit loss on impairment of securities | (7,259 | ) | 292 | (6,763 | ) | (439 | ) | ||||||||
Realized net losses reclassified from other comprehensive income | (163 | ) | — | (203 | ) | (585 | ) | ||||||||
Non-credit loss on impairment on available-for-sale debt securities | 21 | 52 | 63 | 316 | |||||||||||
Less deferred income tax benefit (provision) on securities | 2,931 | (136 | ) | 2,734 | 280 | ||||||||||
Change in fair value of qualifying cash flow hedge, net of tax | — | — | — | 330 | |||||||||||
Net other comprehensive income (loss) | (4,470 | ) | 208 | (4,169 | ) | (98 | ) | ||||||||
Comprehensive income (loss) | $ | (2,529 | ) | $ | 990 | $ | (703 | ) | $ | 1,485 |
Intermountain Community Bancorp Consolidated Statements of Cash Flows (Unaudited) | |||||||
Six Months Ended | |||||||
June 30, | |||||||
2013 | 2012 | ||||||
(Dollars in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 3,466 | $ | 1,583 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 1,194 | 1,341 | |||||
Stock-based compensation expense | 13 | 43 | |||||
Net amortization of premiums on securities | 3,291 | 2,485 | |||||
Provisions for losses on loans | 426 | 2,534 | |||||
Amortization of core deposit intangibles | 29 | 58 | |||||
(Gain) on sale of loans, investments, property and equipment | (978 | ) | (1,413 | ) | |||
Impact of hedge dedesignation and current fair value adjustment | (147 | ) | 374 | ||||
OTTI credit loss on available-for-sale investments | 63 | 323 | |||||
OREO valuation adjustments | 17 | 30 | |||||
Accretion of deferred gain on sale of branch property | (8 | ) | (8 | ) | |||
Net accretion of loan and deposit discounts and premiums | (5 | ) | (7 | ) | |||
Increase in cash surrender value of bank-owned life insurance | (170 | ) | (174 | ) | |||
Change in value of stock warrants | (2 | ) | (158 | ) | |||
Change in: | |||||||
Accrued interest receivable | (143 | ) | (422 | ) | |||
Prepaid expenses and other assets | 2,886 | 2,385 | |||||
Accrued interest payable and other liabilities | 257 | 605 | |||||
Accrued expenses and other cashiers checks | 254 | (199 | ) | ||||
Proceeds from sale of loans originated for sale | 31,274 | 38,824 | |||||
Loans originated for sale | (29,895 | ) | (36,533 | ) | |||
Net cash provided by operating activities | 11,822 | 11,671 | |||||
Cash flows from investing activities: | |||||||
Proceeds from redemption of FHLB Stock | 41 | — | |||||
Purchases of available-for-sale securities | (62,574 | ) | (100,754 | ) | |||
Proceeds from sales, calls or maturities of available-for-sale securities | 34,798 | 2,967 | |||||
Principal payments on mortgage-backed securities | 33,058 | 28,692 | |||||
Proceeds from sales, calls or maturities of held-to-maturity securities | 53 | 1,261 | |||||
Origination of loans, net of principal payments | (2,787 | ) | (11,653 | ) | |||
Purchase of office properties and equipment | (1,164 | ) | (184 | ) | |||
Proceeds from sale of other real estate owned | 817 | 2,047 | |||||
Proceeds from sale of office properties and equipment | 13 | 16 | |||||
Net change in restricted cash | 683 | (296 | ) | ||||
Net cash provided by (used in) investing activities | 2,938 | (77,904 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of series B preferred stock, gross | — | 32,460 | |||||
Proceeds from issuance of common stock, gross | — | 22,532 | |||||
Proceeds from issuance of warrant, gross | — | 1,007 | |||||
Capital issuance costs | — | (5,651 | ) | ||||
Net change in demand, money market and savings deposits | (32,033 | ) | 5,403 | ||||
Net change in certificates of deposit | (17,380 | ) | (18,266 | ) | |||
Net change in repurchase agreements | 8,867 | (19,646 | ) | ||||
Retirement of treasury stock | (1 | ) | — | ||||
Payment of preferred stock dividend | (675 | ) | — | ||||
Net cash provided by (used in) financing activities | (41,222 | ) | 17,839 | ||||
Net change in cash and cash equivalents | (26,462 | ) | (48,394 | ) | |||
Cash and cash equivalents, beginning of period | 66,939 | 107,199 | |||||
Cash and cash equivalents, end of period | $ | 40,477 | $ | 58,805 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 2,804 | $ | 2,812 | |||
Noncash investing and financing activities: | |||||||
Loans converted to other real estate owned | $ | 394 | $ | 694 | |||
Accrual of preferred stock dividend | $ | — | $ | 763 | |||
Transfer from securities available-for-sale to securities held-to-maturity | $ | 8,234 | $ | — |
6/30/2013 | 12/31/2012 | ||||||
Unrestricted interest-bearing cash and cash equivalents | $ | 33,474 | $ | 53,403 | |||
Unrestricted non interest-bearing and vault cash | $ | 7,003 | $ | 13,536 | |||
Restricted non-interest bearing cash | $ | 12,464 | $ | 13,146 |
• | $1.3 million in reserve balances to meet FRB reserve requirements; |
• | $572,000 pledged to various correspondent banks to secure interest rate swap transactions and foreign currency exchange lines; |
• | $1.1 million held at the Company's subsidiary Bank to be used for future tenant improvements of the Sandpoint Center, as required by the agreement executed to sell the Sandpoint Center in 2009; |
• | $9.5 million held at the Company's subsidiary Bank as required by an intercompany agreement signed by the Company and the Bank as part of the Company's January 2012 capital raise, which represents a pledge of funds to the Bank to partially secure the loan made by the Bank to the third party who bought and subsequently leased the Sandpoint Center back to the Bank. |
Available-for-Sale | |||||||||||||||||||
Amortized Cost | Cumulative Non-Credit OTTI (Losses) Recognized in OCI | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value/ Carrying Value | |||||||||||||||
June 30, 2013 | |||||||||||||||||||
Corporate Bonds | $ | 6,013 | $ | — | $ | — | $ | (69 | ) | $ | 5,944 | ||||||||
State and municipal securities | 50,567 | — | 136 | (1,237 | ) | 49,466 | |||||||||||||
Mortgage-backed securities - Agency Pass Throughs | 53,454 | — | 794 | (705 | ) | 53,543 | |||||||||||||
Mortgage-backed securities - Agency CMO's | 114,546 | — | 1,478 | (1,185 | ) | 114,839 | |||||||||||||
SBA Pools | 24,593 | — | 519 | (42 | ) | 25,070 | |||||||||||||
Mortgage-backed securities - Non Agency CMO's (below investment grade) | 8,240 | (902 | ) | 624 | (208 | ) | 7,754 | ||||||||||||
$ | 257,413 | $ | (902 | ) | $ | 3,551 | $ | (3,446 | ) | $ | 256,616 | ||||||||
December 31, 2012 | |||||||||||||||||||
State and municipal securities | $ | 60,984 | $ | — | $ | 2,823 | $ | (158 | ) | $ | 63,649 | ||||||||
Mortgage-backed securities - Agency Pass Throughs | 71,821 | — | 2,224 | (652 | ) | 73,393 | |||||||||||||
Mortgage-backed securities - Agency CMO's | 110,683 | — | 2,209 | (328 | ) | 112,564 | |||||||||||||
SBA Pools | 19,962 | — | 359 | — | 20,321 | ||||||||||||||
Mortgage-backed securities - Non Agency CMO's (below investment grade) | 10,889 | (1,661 | ) | 1,401 | (387 | ) | 10,242 | ||||||||||||
$ | 274,339 | $ | (1,661 | ) | $ | 9,016 | $ | (1,525 | ) | $ | 280,169 | ||||||||
Held-to-Maturity | |||||||||||||||||||
Carrying Value / Amortized Cost | Cumulative Non-Credit OTTI (Losses) Recognized in OCI | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||
June 30, 2013 | |||||||||||||||||||
State and municipal securities | $ | 22,991 | $ | — | $ | 1,064 | $ | (2 | ) | $ | 24,053 | ||||||||
December 31, 2012 | |||||||||||||||||||
State and municipal securities | $ | 14,826 | $ | — | $ | 1,518 | $ | — | $ | 16,344 |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
June 30, 2013 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Corporate Bonds | $ | 5,944 | $ | (69 | ) | $ | — | $ | — | $ | 5,944 | $ | (69 | ) | |||||||||
Residential mortgage-back securities | 70,796 | (1,452 | ) | 16,765 | (646 | ) | 87,561 | (2,098 | ) | ||||||||||||||
SBA Pools | 4,443 | (42 | ) | — | — | 4,443 | (42 | ) | |||||||||||||||
State and municipal securities | 37,249 | (1,239 | ) | — | — | 37,249 | (1,239 | ) | |||||||||||||||
Total | $ | 118,432 | $ | (2,802 | ) | $ | 16,765 | $ | (646 | ) | $ | 135,197 | $ | (3,448 | ) |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
December 31, 2012 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Residential mortgage-back securities | $ | 57,180 | $ | (785 | ) | $ | 11,408 | $ | (582 | ) | $ | 68,588 | $ | (1,367 | ) | ||||||||
State and municipal securities | 12,019 | (158 | ) | — | — | 12,019 | (158 | ) | |||||||||||||||
Total | $ | 69,199 | $ | (943 | ) | $ | 11,408 | $ | (582 | ) | $ | 80,607 | $ | (1,525 | ) |
Available-for-Sale | Held-to-Maturity | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
One year or less | $ | — | $ | — | $ | 507 | $ | 510 | |||||||
After one year through five years | 3,577 | 3,576 | 4,001 | 4,095 | |||||||||||
After five years through ten years | 6,717 | 6,507 | 16,976 | 17,753 | |||||||||||
After ten years | 46,286 | 45,327 | 1,507 | 1,695 | |||||||||||
Subtotal | 56,580 | 55,410 | 22,991 | 24,053 | |||||||||||
Mortgage-backed securities | 176,240 | 176,136 | — | — | |||||||||||
SBA Pools | 24,593 | 25,070 | — | — | |||||||||||
Total Securities | $ | 257,413 | $ | 256,616 | $ | 22,991 | $ | 24,053 |
2013 | 2012 | ||||||||||||||
Held To Maturity | Available For Sale | Held To Maturity | Available For Sale | ||||||||||||
Total other-than-temporary impairment losses | $ | — | $ | — | $ | — | $ | 7 | |||||||
Portion of other-than-temporary impairment losses transferred from (recognized in) other comprehensive income (1) | — | 63 | — | 316 | |||||||||||
Net impairment losses recognized in earnings (2) | $ | — | $ | 63 | $ | — | $ | 323 |
(1) | Represents other-than-temporary impairment losses related to all other factors. |
(2) | Represents other-than-temporary impairment losses related to credit losses. |
June 30, 2013 | ||||||||||||||
Loans Receivable | % | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||||
Commercial | $ | 113,699 | 21.4 | % | $ | 4,480 | $ | 109,219 | ||||||
Commercial real estate | 190,816 | 36.0 | 4,463 | 186,353 | ||||||||||
Commercial construction | 10,085 | 1.9 | — | 10,085 | ||||||||||
Land and land development loans | 30,895 | 5.8 | 2,860 | 28,035 | ||||||||||
Agriculture | 94,831 | 17.8 | 4,537 | 90,294 | ||||||||||
Multifamily | 15,271 | 2.9 | — | 15,271 | ||||||||||
Residential real estate | 58,309 | 11.0 | 2,707 | 55,602 | ||||||||||
Residential construction | 2,004 | 0.4 | — | 2,004 | ||||||||||
Consumer | 8,843 | 1.7 | 161 | 8,682 | ||||||||||
Municipal | 6,029 | 1.1 | — | 6,029 | ||||||||||
Total loans receivable | 530,782 | 100.0 | % | $ | 19,208 | $ | 511,574 | |||||||
Allowance for loan losses | (8,042 | ) | ||||||||||||
Deferred loan fees, net of direct origination costs | — | |||||||||||||
Loans receivable, net | $ | 522,740 | ||||||||||||
Weighted average interest rate | 5.28 | % |
December 31, 2012 | ||||||||||||||
Loans Receivable | % | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||||
Commercial | $ | 121,307 | 23.0 | % | $ | 6,133 | $ | 115,174 | ||||||
Commercial real estate | 186,844 | 35.4 | 3,373 | 183,471 | ||||||||||
Commercial construction | 3,832 | 0.7 | — | 3,832 | ||||||||||
Land and land development loans | 31,278 | 5.9 | 2,023 | 29,255 | ||||||||||
Agriculture | 85,967 | 16.3 | 2,134 | 83,833 | ||||||||||
Multifamily | 16,544 | 3.1 | — | 16,544 | ||||||||||
Residential real estate | 60,020 | 11.3 | 2,362 | 57,658 | ||||||||||
Residential construction | 940 | 0.2 | — | 940 | ||||||||||
Consumer | 9,626 | 1.8 | 168 | 9,458 | ||||||||||
Municipal | 12,267 | 2.3 | — | 12,267 | ||||||||||
Total loans receivable | 528,625 | 100.0 | % | $ | 16,193 | $ | 512,432 | |||||||
Allowance for loan losses | (7,943 | ) | ||||||||||||
Deferred loan fees, net of direct origination costs | 86 | |||||||||||||
Loans receivable, net | $ | 520,768 | ||||||||||||
Weighted average interest rate | 5.28 | % |
June 30, 2013 | |||||||||||
Total Allowance | Individually Evaluated Allowance | Collectively Evaluated Allowance | |||||||||
Commercial | $ | 1,900 | $ | 253 | $ | 1,647 | |||||
Commercial real estate | 2,736 | 366 | 2,370 | ||||||||
Commercial construction | 231 | — | 231 | ||||||||
Land and land development loans | 956 | 112 | 844 | ||||||||
Agriculture | 692 | — | 692 | ||||||||
Multifamily | 54 | — | 54 | ||||||||
Residential real estate | 1,195 | 458 | 737 | ||||||||
Residential construction | 44 | — | 44 | ||||||||
Consumer | 203 | 109 | 94 | ||||||||
Municipal | 31 | — | 31 | ||||||||
Total | $ | 8,042 | $ | 1,298 | $ | 6,744 |
December 31, 2012 | |||||||||||
Total Allowance | Individually Evaluated Allowance | Collectively Evaluated Allowance | |||||||||
Commercial | $ | 2,156 | $ | 628 | $ | 1,528 | |||||
Commercial real estate | 2,762 | 267 | 2,495 | ||||||||
Commercial construction | 101 | — | 101 | ||||||||
Land and land development loans | 1,197 | 114 | 1,083 | ||||||||
Agriculture | 228 | 10 | 218 | ||||||||
Multifamily | 51 | — | 51 | ||||||||
Residential real estate | 1,144 | 458 | 686 | ||||||||
Residential construction | 24 | — | 24 | ||||||||
Consumer | 202 | 87 | 115 | ||||||||
Municipal | 78 | — | 78 | ||||||||
Total | $ | 7,943 | $ | 1,564 | $ | 6,379 |
Current | 30-89 Days Past Due | 90 Days or More Past Due and Accruing | Nonaccrual | Total | |||||||||||||||
Commercial | $ | 112,038 | $ | 244 | $ | — | $ | 1,417 | $ | 113,699 | |||||||||
Commercial real estate | 188,088 | — | — | 2,728 | 190,816 | ||||||||||||||
Commercial construction | 10,085 | — | — | — | 10,085 | ||||||||||||||
Land and land development loans | 30,622 | 159 | — | 114 | 30,895 | ||||||||||||||
Agriculture | 94,151 | 404 | — | 276 | 94,831 | ||||||||||||||
Multifamily | 15,271 | — | — | — | 15,271 | ||||||||||||||
Residential real estate | 57,681 | 455 | — | 173 | 58,309 | ||||||||||||||
Residential construction | 2,004 | — | — | — | 2,004 | ||||||||||||||
Consumer | 8,741 | 11 | — | 91 | 8,843 | ||||||||||||||
Municipal | 6,029 | — | — | — | 6,029 | ||||||||||||||
Total | $ | 524,710 | $ | 1,273 | $ | — | $ | 4,799 | $ | 530,782 |
Current | 30-89 Days Past Due | 90 Days or More Past Due and Accruing | Nonaccrual | Total | |||||||||||||||
Commercial | $ | 117,096 | $ | 169 | $ | — | $ | 4,042 | $ | 121,307 | |||||||||
Commercial real estate | 185,128 | — | — | 1,716 | 186,844 | ||||||||||||||
Commercial construction | 3,832 | — | — | — | 3,832 | ||||||||||||||
Land and land development loans | 31,032 | — | — | 246 | 31,278 | ||||||||||||||
Agriculture | 85,835 | 34 | — | 98 | 85,967 | ||||||||||||||
Multifamily | 16,544 | — | — | — | 16,544 | ||||||||||||||
Residential real estate | 59,158 | 439 | — | 423 | 60,020 | ||||||||||||||
Residential construction | 940 | — | — | — | 940 | ||||||||||||||
Consumer | 9,577 | 45 | — | 4 | 9,626 | ||||||||||||||
Municipal | 12,267 | — | — | — | 12,267 | ||||||||||||||
Total | $ | 521,409 | $ | 687 | $ | — | $ | 6,529 | $ | 528,625 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Nonaccrual | Accrual | Total | Nonaccrual | Accrual | Total | ||||||||||||||||||
Commercial | $ | 29 | $ | 2,743 | $ | 2,772 | $ | 1,900 | $ | 277 | $ | 2,177 | |||||||||||
Commercial real estate | 1,540 | 2,286 | 3,826 | 1,463 | 956 | 2,419 | |||||||||||||||||
Land and land development loans | — | 914 | 914 | — | 1,327 | 1,327 | |||||||||||||||||
Agriculture | — | 3,015 | 3,015 | — | 291 | 291 | |||||||||||||||||
Residential real estate | — | 1,164 | 1,164 | — | 417 | 417 | |||||||||||||||||
Consumer | — | 100 | 100 | — | 88 | 88 | |||||||||||||||||
Total | $ | 1,569 | $ | 10,222 | $ | 11,791 | $ | 3,363 | $ | 3,356 | $ | 6,719 |
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||||||||
Number | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | ||||||||||||||||
Commercial | 3 | $ | 2,243 | $ | 2,243 | 7 | $ | 2,506 | $ | 2,506 | |||||||||||
Commercial real estate | 4 | 392 | 392 | 4 | 392 | 392 | |||||||||||||||
Land and land development loans | 1 | 182 | 182 | 3 | 335 | 335 | |||||||||||||||
Agriculture | — | — | — | 4 | 1,216 | 1,216 | |||||||||||||||
Residential real estate | 3 | 225 | 167 | 3 | 225 | 167 | |||||||||||||||
Consumer | — | — | — | 1 | 89 | 89 | |||||||||||||||
11 | $ | 3,042 | $ | 2,984 | 22 | $ | 4,763 | $ | 4,705 |
Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | ||||||||||||||||||||
Number | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | ||||||||||||||||
Commercial | — | $ | — | $ | — | 1 | $ | 75 | $ | 75 | |||||||||||
Commercial real estate | — | — | — | 1 | 100 | 100 | |||||||||||||||
Land and land development loans | — | — | — | — | — | — | |||||||||||||||
Agriculture | — | — | — | 1 | 110 | 110 | |||||||||||||||
Residential real estate | — | — | — | — | — | — | |||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||
— | $ | — | $ | — | 3 | $ | 285 | $ | 285 |
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||
Adjusted Interest Rate Only | Other* | Adjusted Interest Rate Only | Other* | ||||||||||||
Commercial | $ | 1,350 | $ | 893 | $ | 1,350 | $ | 1,156 | |||||||
Commercial real estate | — | 392 | — | 392 | |||||||||||
Land and land development loans | — | 182 | 36 | 299 | |||||||||||
Agriculture | — | — | 852 | 364 | |||||||||||
Residential real estate | 147 | 20 | 147 | 20 | |||||||||||
Consumer | — | — | — | 90 | |||||||||||
$ | 1,497 | $ | 1,487 | $ | 2,385 | $ | 2,321 | ||||||||
(*) Other includes term or principal concessions or a combination of concessions, including interest rates. |
Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | ||||||||||||||
Adjusted Interest Rate Only | Other* | Adjusted Interest Rate Only | Other* | ||||||||||||
Commercial | $ | — | $ | — | $ | 75 | $ | — | |||||||
Commercial real estate | — | — | — | 100 | |||||||||||
Agriculture | — | — | 110 | — | |||||||||||
$ | — | $ | — | $ | 185 | $ | 100 | ||||||||
(*) Other includes term or principal concessions or a combination of concessions, including interest rates. |
Allowance for Loan Losses for the three months ended June 30, 2013 | |||||||||||||||||||
Balance, Beginning of Quarter | Charge-Offs Apr 1 through June 30, 2013 | Recoveries Apr 1 through June 30, 2013 | Provision | Balance, End of Quarter | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Commercial | $ | 1,763 | $ | (132 | ) | $ | 310 | $ | (41 | ) | $ | 1,900 | |||||||
Commercial real estate | 2,814 | (48 | ) | 20 | (50 | ) | 2,736 | ||||||||||||
Commercial construction | 217 | — | 14 | — | 231 | ||||||||||||||
Land and land development loans | 1,210 | (130 | ) | 49 | (173 | ) | 956 | ||||||||||||
Agriculture | 241 | — | 23 | 428 | 692 | ||||||||||||||
Multifamily | 55 | — | — | (1 | ) | 54 | |||||||||||||
Residential real estate | 1,103 | (40 | ) | 45 | 87 | 1,195 | |||||||||||||
Residential construction | 35 | — | — | 9 | 44 | ||||||||||||||
Consumer | 206 | (46 | ) | 52 | (9 | ) | 203 | ||||||||||||
Municipal | 34 | — | — | (3 | ) | 31 | |||||||||||||
Allowance for loan losses | $ | 7,678 | $ | (396 | ) | $ | 513 | $ | 247 | $ | 8,042 |
Allowance for Loan Losses for the six months ended June 30, 2013 | |||||||||||||||||||
Balance, Beginning of Year | Charge-Offs Jan 1 through June 30, 2013 | Recoveries Jan 1 through June 30, 2013 | Provision | Balance, End of Period | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Commercial | $ | 2,156 | $ | (221 | ) | $ | 489 | $ | (524 | ) | $ | 1,900 | |||||||
Commercial real estate | 2,762 | (614 | ) | 27 | 561 | 2,736 | |||||||||||||
Commercial construction | 101 | — | 15 | 115 | 231 | ||||||||||||||
Land and land development loans | 1,197 | (137 | ) | 64 | (168 | ) | 956 | ||||||||||||
Agriculture | 228 | — | 41 | 423 | 692 | ||||||||||||||
Multifamily | 51 | — | — | 3 | 54 | ||||||||||||||
Residential real estate | 1,144 | (40 | ) | 70 | 21 | 1,195 | |||||||||||||
Residential construction | 24 | — | — | 20 | 44 | ||||||||||||||
Consumer | 202 | (110 | ) | 89 | 22 | 203 | |||||||||||||
Municipal | 78 | — | — | (47 | ) | 31 | |||||||||||||
Allowance for loan losses | $ | 7,943 | $ | (1,122 | ) | $ | 795 | $ | 426 | $ | 8,042 |
Allowance for Loan Losses for the three months ended June 30, 2012 | |||||||||||||||||||
Balance, Beginning of Quarter | Charge-Offs Apr 1 through June 30, 2012 | Recoveries Apr 1 through June 30, 2012 | Provision | Balance, End of Quarter | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Commercial | $ | 2,577 | $ | (1,078 | ) | $ | 289 | $ | 641 | $ | 2,429 | ||||||||
Commercial real estate | 3,953 | (841 | ) | 134 | 786 | 4,032 | |||||||||||||
Commercial construction | 474 | (243 | ) | 3 | (140 | ) | 94 | ||||||||||||
Land and land development loans | 2,210 | (711 | ) | 229 | (163 | ) | 1,565 | ||||||||||||
Agriculture | 138 | (1 | ) | 18 | 52 | 207 | |||||||||||||
Multifamily | 77 | — | — | (20 | ) | 57 | |||||||||||||
Residential real estate | 1,575 | (502 | ) | 60 | 468 | 1,601 | |||||||||||||
Residential construction | 62 | — | — | (58 | ) | 4 | |||||||||||||
Consumer | 258 | (127 | ) | 56 | 14 | 201 | |||||||||||||
Municipal | 48 | — | — | (5 | ) | 43 | |||||||||||||
Allowances for loan losses | $ | 11,372 | $ | (3,503 | ) | $ | 789 | $ | 1,575 | $ | 10,233 |
Allowance for Loan Losses for the six months ended June 30, 2012 | |||||||||||||||||||
Balance, Beginning of Year | Charge-Offs an 1 through June 30, 2012 | Recoveries Jan 1 through June 30, 2012 | Provision | Balance, End of Period | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Commercial | $ | 2,817 | $ | (1,757 | ) | $ | 326 | $ | 1,043 | $ | 2,429 | ||||||||
Commercial real estate | 4,880 | (1,978 | ) | 219 | 911 | 4,032 | |||||||||||||
Commercial construction | 500 | (243 | ) | 5 | (168 | ) | 94 | ||||||||||||
Land and land development loans | 2,273 | (1,184 | ) | 267 | 209 | 1,565 | |||||||||||||
Agriculture | 172 | (32 | ) | 69 | (2 | ) | 207 | ||||||||||||
Multifamily | 91 | — | — | (34 | ) | 57 | |||||||||||||
Residential real estate | 1,566 | (665 | ) | 114 | 586 | 1,601 | |||||||||||||
Residential construction | 59 | — | 7 | (62 | ) | 4 | |||||||||||||
Consumer | 295 | (254 | ) | 115 | 45 | 201 | |||||||||||||
Municipal | 37 | — | — | 6 | 43 | ||||||||||||||
Allowance for loan losses | $ | 12,690 | $ | (6,113 | ) | $ | 1,122 | $ | 2,534 | $ | 10,233 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Beginning of period | $ | 17 | $ | 14 | $ | 15 | $ | 13 | |||||||
Adjustment | (2 | ) | 1 | — | 2 | ||||||||||
Allowance — Unfunded Commitments at end of period | $ | 15 | $ | 15 | $ | 15 | $ | 15 |
Impaired Loans | |||||||||||||||||||||||
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Recorded Investment | Principal Balance | Related Allowance | Recorded Investment | Principal Balance | Related Allowance | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||
Commercial | $ | 1,204 | $ | 1,427 | $ | 253 | $ | 1,796 | $ | 1,964 | $ | 628 | |||||||||||
Commercial real estate | 1,225 | 1,260 | 366 | 1,315 | 1,486 | 267 | |||||||||||||||||
Land and land development loans | 834 | 834 | 112 | 1,601 | 1,627 | 114 | |||||||||||||||||
Agriculture | — | — | — | 31 | 31 | 10 | |||||||||||||||||
Residential real estate | 921 | 939 | 458 | 1,240 | 1,243 | 458 | |||||||||||||||||
Consumer | 125 | 126 | 109 | 138 | 140 | 87 | |||||||||||||||||
Total | $ | 4,309 | $ | 4,586 | $ | 1,298 | $ | 6,121 | $ | 6,491 | $ | 1,564 | |||||||||||
Without an allowance recorded: | |||||||||||||||||||||||
Commercial | $ | 3,276 | $ | 4,508 | $ | — | $ | 4,337 | $ | 6,273 | $ | — | |||||||||||
Commercial real estate | 3,238 | 4,931 | — | 2,058 | 3,178 | — | |||||||||||||||||
Land and land development loans | 2,026 | 2,166 | — | 422 | 493 | — | |||||||||||||||||
Agriculture | 4,537 | 4,539 | — | 2,103 | 2,103 | — | |||||||||||||||||
Residential real estate | 1,786 | 1,839 | — | 1,122 | 1,254 | — | |||||||||||||||||
Consumer | 36 | 53 | — | 30 | 48 | — | |||||||||||||||||
Total | $ | 14,899 | $ | 18,036 | $ | — | $ | 10,072 | $ | 13,349 | $ | — | |||||||||||
Total: | |||||||||||||||||||||||
Commercial | $ | 4,480 | $ | 5,935 | $ | 253 | $ | 6,133 | $ | 8,237 | $ | 628 | |||||||||||
Commercial real estate | 4,463 | 6,191 | 366 | 3,373 | 4,664 | 267 | |||||||||||||||||
Land and land development loans | 2,860 | 3,000 | 112 | 2,023 | 2,120 | 114 | |||||||||||||||||
Agriculture | 4,537 | 4,539 | — | 2,134 | 2,134 | 10 | |||||||||||||||||
Residential real estate | 2,707 | 2,778 | 458 | 2,362 | 2,497 | 458 | |||||||||||||||||
Consumer | 161 | 179 | 109 | 168 | 188 | 87 | |||||||||||||||||
Total | $ | 19,208 | $ | 22,622 | $ | 1,298 | $ | 16,193 | $ | 19,840 | $ | 1,564 |
Impaired Loans | |||||||||||||||
Six Months Ended June 30, 2013 | Six Months Ended June 30, 2012 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized (*) | Average Recorded Investment | Interest Income Recognized (*) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
With an allowance recorded: | |||||||||||||||
Commercial | $ | 1,308 | $ | 52 | $ | 2,668 | $ | 99 | |||||||
Commercial real estate | 1,294 | 39 | 5,605 | 222 | |||||||||||
Commercial construction | — | — | 400 | — | |||||||||||
Land and land development loans | 1,351 | 25 | 1,921 | 95 | |||||||||||
Agriculture | 15 | — | 21 | 3 | |||||||||||
Residential real estate | 959 | 28 | 1,870 | 66 | |||||||||||
Consumer | 136 | 6 | 230 | 10 | |||||||||||
Total | $ | 5,063 | $ | 150 | $ | 12,715 | $ | 495 | |||||||
Without an allowance recorded: | |||||||||||||||
Commercial | $ | 3,385 | $ | 297 | $ | 5,920 | $ | 549 | |||||||
Commercial real estate | 2,977 | 232 | 2,618 | 162 | |||||||||||
Commercial construction | — | — | 97 | — | |||||||||||
Land and land development loans | 929 | 31 | 2,396 | 137 | |||||||||||
Agriculture | 3,056 | 189 | 2,305 | 124 | |||||||||||
Residential real estate | 1,511 | 67 | 1,698 | 52 | |||||||||||
Consumer | 36 | 2 | 35 | 4 | |||||||||||
Total | $ | 11,894 | $ | 818 | $ | 15,069 | $ | 1,028 | |||||||
Total: | |||||||||||||||
Commercial | $ | 4,693 | $ | 349 | $ | 8,588 | $ | 648 | |||||||
Commercial real estate | 4,271 | 271 | 8,223 | 384 | |||||||||||
Commercial construction | — | — | 497 | — | |||||||||||
Land and land development loans | 2,280 | 56 | 4,317 | 232 | |||||||||||
Agriculture | 3,071 | 189 | 2,326 | 127 | |||||||||||
Residential real estate | 2,470 | 95 | 3,568 | 118 | |||||||||||
Consumer | 172 | 8 | 265 | 14 | |||||||||||
Total | $ | 16,957 | $ | 968 | $ | 27,784 | 1,523 | ||||||||
(*) Interest Income on individually impaired loans is calculated using the cash-basis method, using year to date interest on loans outstanding at 6/30/13. |
Loan Portfolio Credit Grades by Type June 30, 2013 | |||||||||||||||||||||||
Satisfactory Grade 1-3 | Internal Watch Grade 4 | Special Mention Grade 5 | Substandard Grade 6 | Doubtful Grade 7 | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial | $ | 76,751 | $ | 29,435 | $ | 837 | $ | 6,676 | $ | — | $ | 113,699 | |||||||||||
Commercial real estate | 144,662 | 40,090 | — | 6,064 | — | 190,816 | |||||||||||||||||
Commercial construction | 10,085 | — | — | — | — | 10,085 | |||||||||||||||||
Land and land development loans | 16,981 | 12,774 | — | 1,140 | — | 30,895 | |||||||||||||||||
Agriculture | 75,381 | 14,030 | 1,107 | 4,313 | — | 94,831 | |||||||||||||||||
Multifamily | 2,275 | 8,675 | — | 4,321 | — | 15,271 | |||||||||||||||||
Residential real estate | 45,062 | 9,705 | — | 3,542 | — | 58,309 | |||||||||||||||||
Residential construction | 2,004 | — | — | — | — | 2,004 | |||||||||||||||||
Consumer | 8,192 | 414 | 5 | 232 | — | 8,843 | |||||||||||||||||
Municipal | 5,907 | 122 | — | — | — | 6,029 | |||||||||||||||||
Loans receivable, net | $ | 387,300 | $ | 115,245 | $ | 1,949 | $ | 26,288 | $ | — | $ | 530,782 |
Loan Portfolio Credit Grades by Type December 31, 2012 | |||||||||||||||||||||||
Satisfactory Grade 1-3 | Internal Watch Grade 4 | Special Mention Grade 5 | Substandard Grade 6 | Doubtful Grade 7 | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial | $ | 90,520 | $ | 23,094 | $ | — | $ | 7,693 | $ | — | $ | 121,307 | |||||||||||
Commercial real estate | 132,659 | 49,029 | — | 5,156 | — | 186,844 | |||||||||||||||||
Commercial construction | 3,794 | 38 | — | — | — | 3,832 | |||||||||||||||||
Land and land development loans | 15,869 | 13,894 | — | 1,515 | — | 31,278 | |||||||||||||||||
Agriculture | 69,445 | 14,379 | — | 2,143 | — | 85,967 | |||||||||||||||||
Multifamily | 2,465 | 8,961 | — | 5,118 | — | 16,544 | |||||||||||||||||
Residential real estate | 47,102 | 9,873 | — | 3,045 | — | 60,020 | |||||||||||||||||
Residential construction | 940 | — | — | — | — | 940 | |||||||||||||||||
Consumer | 8,529 | 835 | — | 262 | — | 9,626 | |||||||||||||||||
Municipal | 12,125 | 142 | — | — | — | 12,267 | |||||||||||||||||
Loans receivable, net | $ | 383,448 | $ | 120,245 | $ | — | $ | 24,932 | $ | — | $ | 528,625 |
June 30, 2013 | December 31, 2012 | ||||||
(Dollars in thousands) | |||||||
Loans past due in excess of 90 days and still accruing | $ | — | $ | — | |||
Non-accrual loans | 4,799 | 6,529 | |||||
Total non-performing loans | 4,799 | 6,529 | |||||
Other real estate owned (“OREO”) | 4,512 | 4,951 | |||||
Total non-performing assets (“NPAs”) | $ | 9,311 | $ | 11,480 | |||
Classified loans (1) | $ | 26,288 | $ | 24,932 |
1) | Classified loan totals are inclusive of non-performing loans and may also include troubled debt restructured loans, depending on the grading of these restructured loans. |
June 30, 2013 | December 31, 2012 | ||||||
Term note payable (1) | $ | 8,279 | $ | 8,279 | |||
Term note payable (2) | 8,248 | 8,248 | |||||
Total other borrowings | $ | 16,527 | $ | 16,527 |
(1) | In January 2003, the Company issued $8.0 million of Trust Preferred securities through its subsidiary, Intermountain Statutory Trust I. The debt associated with these securities bears interest on a variable basis tied to the 90-day LIBOR (London Inter-Bank Offering Rate) index plus 3.25%, with interest only paid quarterly. The rate on this borrowing was 3.53% at June 30, 2013. The debt is callable by the Company quarterly and matures in March 2033. See Note A below. |
(2) | In March 2004, the Company issued $8.0 million of Trust Preferred securities through its subsidiary, Intermountain Statutory Trust II. The debt associated with these securities bears interest on a variable basis tied to the 90-day LIBOR index plus 2.8%, with interest only paid quarterly. The rate on this borrowing was 3.08% at June 30, 2013. The debt is callable by the Company quarterly and matures in April 2034. During the third quarter of 2008, the Company entered into an interest rate swap contract with Pacific Coast Bankers Bank. The purpose of the $8.2 million notional value swap is to convert the variable rate payments made on our Trust Preferred I obligation to a series of fixed rate payments at 7.38% for five years, as a hedging strategy to help manage the Company’s interest-rate risk. See Note A below: |
A) | Intermountain’s obligations under the debentures issued to the trusts referred to above constitute a full and unconditional guarantee by Intermountain of the Statutory Trusts’ obligations under the Trust Preferred Securities. In accordance with ASC 810, Consolidation, the trusts are not consolidated and the debentures and related amounts are treated as debt of Intermountain. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Numerator: | |||||||||||||||
Net income - basic and diluted | $ | 1,941 | $ | 782 | $ | 3,466 | $ | 1,583 | |||||||
Preferred stock dividend | 460 | 481 | 918 | 947 | |||||||||||
Net income applicable to common stockholders | $ | 1,481 | $ | 301 | $ | 2,548 | $ | 636 | |||||||
Denominator: | |||||||||||||||
Weighted average shares outstanding - basic | 6,443,294 | 5,901,321 | 6,443,142 | 5,164,576 | |||||||||||
Dilutive effect of common stock options, warrants, restricted stock awards | 41,468 | 17,867 | 39,234 | 16,533 | |||||||||||
Weighted average shares outstanding — diluted | 6,484,762 | 5,919,188 | 6,482,376 | 5,181,109 | |||||||||||
Earnings per share — basic and diluted: | |||||||||||||||
Earnings per share — basic | $ | 0.23 | $ | 0.05 | $ | 0.40 | $ | 0.12 | |||||||
Effect of dilutive common stock options, warrants, restricted stock awards | — | — | (0.01 | ) | — | ||||||||||
Earnings per share — diluted | $ | 0.23 | $ | 0.05 | $ | 0.39 | $ | 0.12 |
Fair Value Measurements as of | ||||||||||||||||||
June 30, 2013 | December 31, 2012 | |||||||||||||||||
Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||
Financial assets: | ||||||||||||||||||
Cash, cash equivalents, restricted cash and federal funds sold | 1 | $ | 52,941 | $ | 52,941 | $ | 80,085 | $ | 80,085 | |||||||||
Available-for-sale securities | 2 & 3 | 256,616 | 256,616 | 280,169 | 280,169 | |||||||||||||
Held-to-maturity securities | 2 | 22,991 | 24,053 | 14,826 | 16,344 | |||||||||||||
Loans held for sale | 2 | 1,081 | 1,081 | 1,684 | 1,684 | |||||||||||||
Loans receivable, net | 3 | 522,740 | 530,204 | 520,768 | 536,003 | |||||||||||||
Accrued interest receivable | 2 | 4,463 | 4,463 | 4,320 | 4,320 | |||||||||||||
BOLI | 1 | 9,642 | 9,642 | 9,472 | 9,472 | |||||||||||||
Other assets | 2 | 2,076 | 2,076 | 2,024 | 2,024 | |||||||||||||
Financial liabilities: | ||||||||||||||||||
Deposit liabilities | 3 | 699,521 | 667,667 | 748,934 | 751,808 | |||||||||||||
Borrowings | 3 | 106,132 | 92,969 | 97,265 | 94,673 | |||||||||||||
Accrued interest payable | 2 | 316 | 316 | 1,185 | 1,185 | |||||||||||||
Unexercised warrants | 3 | 826 | 826 | 828 | 828 | |||||||||||||
Other liabilities | 2 | 179 | 179 | 328 | 328 |
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Balance, 6/30/2013 | |||||||||||||||
Available-for-Sale Securities: | |||||||||||||||
Corporate Bonds | $ | 5,944 | $ | — | $ | 5,944 | $ | — | |||||||
State and municipal bonds | 49,466 | — | 49,466 | — | |||||||||||
Residential mortgage backed securities and SBA Pools | 201,205 | — | 193,451 | 7,754 | |||||||||||
Other Assets — Derivative | (152 | ) | — | — | (152 | ) | |||||||||
Total Assets Measured at Fair Value | $ | 256,463 | $ | — | $ | 248,861 | $ | 7,602 | |||||||
Other Liabilities — Derivatives | $ | 179 | $ | — | $ | — | $ | 179 | |||||||
Unexercised Warrants | 826 | — | — | 826 | |||||||||||
Total Liabilities Measured at Fair Value | $ | 1,005 | $ | — | $ | — | $ | 1,005 | |||||||
Balance, 12/31/2012 | |||||||||||||||
Available-for-Sale Securities: | |||||||||||||||
State and municipal bonds | $ | 63,649 | $ | — | $ | 63,649 | $ | — | |||||||
Residential mortgage backed securities and SBA Pools | 216,519 | — | 206,277 | 10,242 | |||||||||||
Other Assets — Derivative | (245 | ) | — | — | (245 | ) | |||||||||
Total Assets Measured at Fair Value | $ | 279,923 | $ | — | $ | 269,926 | $ | 9,997 | |||||||
Other Liabilities — Derivatives | $ | 328 | $ | — | $ | — | $ | 328 | |||||||
Unexercised Warrants | 828 | — | — | 828 | |||||||||||
Total Liabilities Measured at Fair Value | $ | 1,156 | $ | — | $ | — | $ | 1,156 | |||||||
Fair Value Measurements Using Significant Unobservable Inputs ( Level 3) Quarter to Date | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Description | Residential MBS | Derivatives (net) | Unexercised Warrants | Residential MBS | Derivatives (net) | Unexercised Warrants | |||||||||||||||||
April 1, Balance | $ | 8,220 | $ | (480 | ) | (772 | ) | $ | 14,118 | $ | (752 | ) | $ | (1,007 | ) | ||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||
Included in earnings | (21 | ) | 149 | (54 | ) | (52 | ) | 37 | 157 | ||||||||||||||
Included in other comprehensive income | 48 | — | — | 183 | — | — | |||||||||||||||||
Principal Payments | (493 | ) | — | — | (748 | ) | — | — | |||||||||||||||
Sales of Securities | — | — | — | — | — | — | |||||||||||||||||
Transfers in and /or out of Level 3 | — | — | — | — | — | — | |||||||||||||||||
June 30, Balance | $ | 7,754 | $ | (331 | ) | $ | (826 | ) | $ | 13,501 | $ | (715 | ) | $ | (850 | ) |
Fair Value Measurements Using Significant Unobservable Inputs ( Level 3) Year to Date | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Description | Residential MBS | Derivatives (net) | Unexercised Warrants | Residential MBS | Derivatives (net) | Unexercised Warrants | |||||||||||||||||
January 1, Balance | $ | 10,242 | $ | (573 | ) | (828 | ) | $ | 14,774 | $ | (850 | ) | $ | — | |||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||
Included in earnings | (22 | ) | 242 | 2 | (323 | ) | (411 | ) | 157 | ||||||||||||||
Included in other comprehensive income | 229 | — | — | 427 | 546 | — | |||||||||||||||||
Principal Payments | (833 | ) | — | — | (1,377 | ) | — | — | |||||||||||||||
Sales of Securities | (1,862 | ) | — | — | — | — | (1,007 | ) | |||||||||||||||
Transfers in and /or out of Level 3 | — | — | — | — | — | — | |||||||||||||||||
June 30, Balance | $ | 7,754 | $ | (331 | ) | $ | (826 | ) | $ | 13,501 | $ | (715 | ) | $ | (850 | ) |
Valuation Techniques | Unobservable Input | Range of Inputs | ||||
Residential mortgage-backed securities | Discounted cash flow and consensus pricing | Prepayment | 8.98% to 42.52% CPR (1) | |||
Default rates | (0.15)% to 15.88% CDR (2) | |||||
Loss severities | 0% to 100.03% | |||||
Interest Rate Derivatives | Discounted cash flow modeling and market indications | Cash flows of underlying instruments | Various payment mismatches based on characteristics of underlying loans | |||
Swap rates | 0.50% to 1.00% | |||||
LIBOR rates | 0.19% to 0.42% | |||||
Unexercised Warrants | Warrant valuation models | Estimated underlying stock price volatility | 60% to 100% | |||
Duration | 1.75 to 2.0 years | |||||
Risk-free rate | 0.30% to 0.50% | |||||
(1) CPR: Constant prepayment rate | ||||||
(2) CDR: Constant default rate |
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Balance, 6/30/2013 | |||||||||||||||
Loans(1) | $ | 17,910 | $ | — | $ | — | $ | 17,910 | |||||||
OREO | 4,512 | — | — | 4,512 | |||||||||||
Total Assets Measured at Fair Value | $ | 22,422 | $ | — | $ | — | $ | 22,422 | |||||||
Balance, 12/31/2012 | |||||||||||||||
Loans(1) | $ | 14,629 | $ | — | $ | — | $ | 14,629 | |||||||
OREO | 4,951 | — | — | 4,951 | |||||||||||
Total Assets Measured at Fair Value | $ | 19,580 | $ | — | $ | — | $ | 19,580 |
(1) | Represents impaired loans, net of allowance for loan loss, which are included in loans. |
Valuation Techniques | Unobservable Input | Range of Inputs | ||||
Impaired Loans | Discounted cash flows and appraisal of collateral | Amount and timing of cash flows | No payment deferral to indefinite payment deferral | |||
Discount Rate | 4% to 9% | |||||
Appraisal adjustments | 10% to 35% | |||||
Liquidation Expenses | 10% to 15% | |||||
OREO | Appraisal of collateral | Appraisal adjustments | 10% to 35% | |||
Liquidation Expenses | 10% to 15% |
• | Increasing and diversifying its loan origination activity by pursuing attractive small and mid-market commercial credits in its markets, originating commercial real estate loans to strong borrowers, originating mortgage loans to strong borrowers at conservative loan-to-values in rural and smaller suburban areas, expanding and diversifying its agricultural portfolio, and expanding its already strong government-guaranteed loan marketing efforts. |
• | Maintaining a conservative balance sheet and effectively managing Company risk amidst a still uncertain economic and regulatory environment. |
• | Increasing the efficiency of its operations by continuing to restructure processes, re-negotiate contracts and rationalize various business functions. |
• | Increasing local, transactional deposit balances while continuing to minimize interest expense by increasing referral activity and targeting specific business and non-profit groups. |
• | Offsetting regulatory pressures on current non-interest income streams by expanding its trust, investment and insurance sales, and pursuing opportunities to diversify into new fee-based programs serving both its existing clientele and new potential markets. |
6/30/2013 | 3/31/2013 | 12/31/2012 | 6/30/2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Total non-performing loans (“NPLs”) | $ | 4,799 | $ | 5,137 | $ | 6,529 | $ | 6,595 | |||||||
OREO | 4,512 | 4,664 | 4,951 | 5,267 | |||||||||||
Total non-performing assets (“NPAs”) | $ | 9,311 | $ | 9,801 | $ | 11,480 | $ | 11,862 | |||||||
Classified loans (1) | $ | 26,288 | $ | 25,295 | $ | 24,933 | $ | 35,764 | |||||||
Troubled debt restructured loans (2) | $ | 11,791 | $ | 7,827 | $ | 6,719 | $ | 5,237 | |||||||
Total allowance related to non-accrual loans | $ | 121 | $ | 86 | $ | 536 | $ | 368 | |||||||
Interest income recorded on non-accrual loans (3) | $ | 119 | $ | 85 | $ | 424 | $ | 166 | |||||||
Non-accrual loans as a percentage of net loans receivable | 0.92 | % | 1.03 | % | 1.25 | % | 1.29 | % | |||||||
Total non-performing loans as a % of net loans receivable | 0.92 | % | 1.03 | % | 1.25 | % | 1.29 | % | |||||||
Allowance for loan losses (“ALLL”) as a percentage of non-performing loans | 167.6 | % | 149.5 | % | 121.7 | % | 155.2 | % | |||||||
Total NPAs as a % of total assets (4) | 1.00 | % | 1.05 | % | 1.18 | % | 1.23 | % | |||||||
Total NPAs as a % of tangible capital + ALLL (“Texas Ratio”) (4) | 7.69 | % | 7.93 | % | 9.39 | % | 9.74 | % | |||||||
Loan delinquency ratio (30 days and over) | 0.22 | % | 0.14 | % | 0.13 | % | 0.25 | % |
(1) | Classified loan totals are inclusive of non-performing loans and may also include troubled debt restructured loans, depending on the grading of these restructured loans. |
(2) | Includes accruing restructured loans of $10.2 million and non-accruing restructured loans of $1.6 million. No other funds are available for disbursement on restructured loans. |
(3) | Interest income on non-accrual loans based on year-to-date interest totals |
(4) | NPAs include both nonperforming loans and OREO |
6/30/2013 | 3/31/2013 | 6/30/2012 | ||||||||||
(Dollars in thousands) | ||||||||||||
Commercial loans | $ | 1,417 | $ | 1,573 | $ | 4,283 | ||||||
Commercial real estate loans | 2,728 | 2,910 | 682 | |||||||||
Land and land development loans | 4,626 | 4,852 | 6,364 | |||||||||
Agriculture loans | 276 | 276 | 34 | |||||||||
Residential real estate loans | 173 | 186 | 479 | |||||||||
Consumer loans | 91 | 4 | 20 | |||||||||
Total NPAs by Categories | $ | 9,311 | $ | 9,801 | $ | 11,862 |
June 30, 2013 | December 31, 2012 | ||||||||||||
Amount | % of Total | Amount | % of Total | ||||||||||
(Dollars in thousands) | |||||||||||||
Commercial loans | $ | 6,676 | 25.4 | % | $ | 7,693 | 30.9 | % | |||||
Commercial real estate loans | 6,064 | 23.1 | 5,156 | 20.7 | |||||||||
Land and land development loans | 1,140 | 4.3 | 1,515 | 6.1 | |||||||||
Agriculture loans | 4,313 | 16.4 | 2,143 | 8.6 | |||||||||
Multifamily loans | 4,321 | 16.4 | 5,118 | 20.5 | |||||||||
Residential real estate loans | 3,542 | 13.5 | 3,045 | 12.2 | |||||||||
Consumer loans | 232 | 0.9 | 262 | 1.0 | |||||||||
Total classified loans | $ | 26,288 | 100.0 | % | $ | 24,932 | 100.0 | % |
Other Income - Three Months Ended | June 30, 2013 | June 30, 2012 | Change | Percent Change | ||||||||||
(Dollars in thousands) | ||||||||||||||
Fees and service charges | $ | 1,895 | $ | 1,592 | $ | 303 | 19 | % | ||||||
Loan related fee income | 696 | 686 | 10 | 1 | ||||||||||
Net gain on sale of securities | 163 | — | 163 | 100 | ||||||||||
Net gain on sale of other assets | 2 | 18 | (16 | ) | (89 | ) | ||||||||
Other-than-temporary credit impairment on investment securities ("OTTI") | (21 | ) | (52 | ) | 31 | (60 | ) | |||||||
Bank-owned life insurance | 85 | 87 | (2 | ) | (2 | ) | ||||||||
Fair value adjustment on cash flow hedge | 80 | 90 | (10 | ) | (11 | ) | ||||||||
Unexercised warrant liability fair value adjustment | (54 | ) | 158 | (212 | ) | (134 | ) | |||||||
Other income | 40 | 189 | (149 | ) | (79 | ) | ||||||||
Total | $ | 2,886 | $ | 2,768 | $ | 118 | 4 | % |
Other Income - Six Months Ended | June 30, 2013 | June 30, 2012 | Change | Percent Change | ||||||||||
(Dollars in thousands) | ||||||||||||||
Fees and service charges | $ | 3,570 | $ | 3,185 | $ | 385 | 12 | % | ||||||
Loan related fee income | 1,263 | 1,299 | (36 | ) | (3 | ) | ||||||||
Net gain on sale of securities | 203 | 585 | (382 | ) | (65 | ) | ||||||||
Net gain on sale of other assets | 6 | 22 | (16 | ) | (73 | ) | ||||||||
Other-than-temporary credit impairment on investment securities ("OTTI") | (63 | ) | (323 | ) | 260 | (80 | ) | |||||||
Bank-owned life insurance | 170 | 174 | (4 | ) | (2 | ) | ||||||||
Fair value adjustment on cash flow hedge | 146 | (294 | ) | 440 | (150 | ) | ||||||||
Unexercised warrant liability fair value adjustment | 2 | 158 | (156 | ) | (99 | ) | ||||||||
Other income | 153 | 398 | (245 | ) | (62 | ) | ||||||||
Total | $ | 5,450 | $ | 5,204 | $ | 246 | 5 | % |
Other Expense - Three Months Ended | June 30, 2013 | June 30, 2012 | Change | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||||
Salaries and employee benefits | $ | 4,283 | 3,871 | 412 | 11 | % | ||||||
Occupancy expense | 1,521 | 1,623 | (102 | ) | (6 | )% | ||||||
Advertising | 180 | 168 | 12 | 7 | % | |||||||
Fees and service charges | 656 | 629 | 27 | 4 | % | |||||||
Printing, postage and supplies | 173 | 300 | (127 | ) | (42 | )% | ||||||
Legal and accounting | 471 | 396 | 75 | 19 | % | |||||||
FDIC assessment | 165 | 308 | (143 | ) | (46 | )% | ||||||
OREO operations(1) | 32 | 120 | (88 | ) | (73 | )% | ||||||
Other expense | 739 | 807 | (68 | ) | (8 | )% | ||||||
Total | $ | 8,220 | 8,222 | (2 | ) | — | % |
Other Expense - Six Months Ended | June 30, 2013 | June 30, 2012 | Change | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||||
Salaries and employee benefits | $ | 8,458 | 8,006 | 452 | 6 | % | ||||||
Occupancy expense | 3,045 | 3,307 | (262 | ) | (8 | )% | ||||||
Advertising | 294 | 280 | 14 | 5 | % | |||||||
Fees and service charges | 1,273 | 1,250 | 23 | 2 | % | |||||||
Printing, postage and supplies | 390 | 601 | (211 | ) | (35 | )% | ||||||
Legal and accounting | 812 | 746 | 66 | 9 | % | |||||||
FDIC assessment | 351 | 621 | (270 | ) | (43 | )% | ||||||
OREO operations(1) | 143 | 224 | (81 | ) | (36 | )% | ||||||
Other expense | 1,632 | 1,485 | 147 | 10 | % | |||||||
Total | $ | 16,398 | 16,520 | (122 | ) | (1 | )% |
(1) | Amount includes chargedowns and gains and losses on sale of OREO |
Principal | Fair | Unrealized | Cumulative OTTI Credit Loss Recorded in | Cumulative OTTI Impairment Loss Recorded in | ||||||||||
Balance | Value | (Loss) Gain | Income | OCI | ||||||||||
Security 1 | 5,808 | 4,757 | 558 | (901 | ) | (864 | ) |
June 30, 2013 | December 31, 2012 | ||||||||||||
Amount | % | Amount | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Commercial loans | $ | 113,699 | 21.4 | % | $ | 121,307 | 23.0 | % | |||||
Commercial real estate loans | 190,816 | 36.0 | 186,844 | 35.4 | |||||||||
Commercial construction loans | 10,085 | 1.9 | 3,832 | 0.7 | |||||||||
Land and land development loans | 30,895 | 5.8 | 31,278 | 5.9 | |||||||||
Agriculture loans | 94,831 | 17.8 | 85,967 | 16.3 | |||||||||
Multifamily loans | 15,271 | 2.9 | 16,544 | 3.1 | |||||||||
Residential real estate loans | 58,309 | 11.0 | 60,020 | 11.3 | |||||||||
Residential construction loans | 2,004 | 0.4 | 940 | 0.2 | |||||||||
Consumer loans | 8,843 | 1.7 | 9,626 | 1.8 | |||||||||
Municipal loans | 6,029 | 1.1 | 12,267 | 2.3 | |||||||||
Total loans | 530,782 | 100.0 | % | 528,625 | 100.0 | % | |||||||
Allowance for loan losses | (8,042 | ) | (7,943 | ) | |||||||||
Deferred loan fees, net of direct origination costs | — | 86 | |||||||||||
Loans receivable, net | $ | 522,740 | $ | 520,768 | |||||||||
Weighted average interest rate | 5.28 | % | 5.28 | % |
North Idaho — Eastern | Magic Valley | Greater Boise | E. Oregon, SW Idaho, excluding | % of Loan type to total | ||||||||||||||||||||||
Loan Portfolio by Location | Washington | Idaho | Area | Boise | Other | Total | loans | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial loans | $ | 81,190 | $ | 4,981 | $ | 7,810 | $ | 15,858 | $ | 3,860 | $ | 113,699 | 21.4 | % | ||||||||||||
Commercial real estate loans | 130,795 | 10,229 | 8,491 | 19,483 | 21,818 | 190,816 | 36.0 | % | ||||||||||||||||||
Commercial construction loans | 5,085 | — | 5,000 | — | — | 10,085 | 1.9 | % | ||||||||||||||||||
Land and land development loans | 20,623 | 1,547 | 6,655 | 1,349 | 721 | 30,895 | 5.8 | % | ||||||||||||||||||
Agriculture loans | 1,902 | 3,633 | 18,925 | 65,836 | 4,535 | 94,831 | 17.8 | % | ||||||||||||||||||
Multifamily loans | 10,087 | 150 | 4,984 | 30 | 20 | 15,271 | 2.9 | % | ||||||||||||||||||
Residential real estate loans | 41,939 | 3,103 | 3,799 | 6,967 | 2,501 | 58,309 | 11.0 | % | ||||||||||||||||||
Residential construction loans | 1,214 | — | 193 | 597 | — | 2,004 | 0.4 | % | ||||||||||||||||||
Consumer loans | 5,256 | 782 | 610 | 1,875 | 320 | 8,843 | 1.7 | % | ||||||||||||||||||
Municipal loans | 4,678 | 1,351 | — | — | — | 6,029 | 1.1 | % | ||||||||||||||||||
Total | $ | 302,769 | $ | 25,776 | $ | 56,467 | $ | 111,995 | $ | 33,775 | $ | 530,782 | 100.0 | % | ||||||||||||
Percent of total loans in geographic area | 57.0 | % | 4.9 | % | 10.6 | % | 21.1 | % | 6.4 | % | 100.0 | % | ||||||||||||||
Percent of total loans where real estate is the primary collateral | 69.8 | % | 61.4 | % | 56.2 | % | 40.1 | % | 77.8 | % | 62.2 | % |
North Idaho — Eastern | Magic Valley | Greater Boise | E. Oregon, SW Idaho, excluding | % of Loan type to total | ||||||||||||||||||||||
Loan Portfolio by Location | Washington | Idaho | Area | Boise | Other | Total | loans | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial loans | $ | 87,387 | $ | 4,606 | $ | 9,252 | $ | 13,852 | $ | 6,210 | $ | 121,307 | 23.0 | % | ||||||||||||
Commercial real estate loans | 123,451 | 11,330 | 10,651 | 18,895 | 22,517 | 186,844 | 35.4 | % | ||||||||||||||||||
Commercial construction loans | 503 | — | 2,819 | — | 510 | 3,832 | 0.7 | % | ||||||||||||||||||
Land and land development loans | 20,710 | 1,748 | 6,298 | 1,500 | 1,022 | 31,278 | 5.9 | % | ||||||||||||||||||
Agriculture loans | 1,670 | 3,269 | 16,886 | 60,479 | 3,663 | 85,967 | 16.3 | % | ||||||||||||||||||
Multifamily loans | 10,396 | 151 | 5,947 | 30 | 20 | 16,544 | 3.1 | % | ||||||||||||||||||
Residential real estate loans | 41,624 | 3,734 | 3,808 | 7,083 | 3,771 | 60,020 | 11.3 | % | ||||||||||||||||||
Residential construction loans | 387 | — | 240 | 313 | — | 940 | 0.2 | % | ||||||||||||||||||
Consumer loans | 5,716 | 1,026 | 517 | 2,053 | 314 | 9,626 | 1.8 | % | ||||||||||||||||||
Municipal loans | 10,880 | 1,387 | — | — | — | 12,267 | 2.3 | % | ||||||||||||||||||
Total | $ | 302,724 | $ | 27,251 | $ | 56,418 | $ | 104,205 | $ | 38,027 | $ | 528,625 | 100.0 | % | ||||||||||||
Percent of total loans in geographic area | 57.3 | % | 5.2 | % | 10.7 | % | 19.7 | % | 7.1 | % | 100.0 | % | ||||||||||||||
Percent of total loans where real estate is the primary collateral | 65.5 | % | 67.4 | % | 54.5 | % | 43.3 | % | 74.8 | % | 60.7 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial loans | $ | 16,209 | $ | 20,568 | (21.2 | )% | $ | 23,168 | $ | 29,103 | (20.4 | )% | |||||||||
Commercial real estate loans | 18,995 | 13,601 | 39.7 | 22,119 | 14,382 | 53.8 | |||||||||||||||
Commercial construction loans | 1,257 | 400 | 214.3 | 6,641 | 854 | 677.6 | |||||||||||||||
Land and land development loans | 2,000 | 2,060 | (2.9 | ) | 2,203 | 2,526 | (12.8 | ) | |||||||||||||
Agriculture loans | 10,229 | 18,817 | (45.6 | ) | 19,096 | 31,474 | (39.3 | ) | |||||||||||||
Multifamily loans | — | 1,191 | — | — | 1,191 | (100.0 | ) | ||||||||||||||
Residential real estate loans | 20,782 | 24,434 | (14.9 | ) | 36,234 | 45,081 | (19.6 | ) | |||||||||||||
Residential construction loans | 887 | 473 | 87.5 | 1,493 | 789 | 89.2 | |||||||||||||||
Consumer | 873 | 694 | 25.8 | 1,640 | 1,223 | 34.1 | |||||||||||||||
Municipal | 220 | 2,823 | (92.2 | ) | 377 | 3,120 | (87.9 | ) | |||||||||||||
Total loans originated | $ | 71,452 | $ | 85,061 | (16.0 | )% | $ | 112,971 | $ | 129,743 | (12.9 | )% | |||||||||
Renewed Loans | $ | 59,441 | $ | 46,762 | 27.1 | % | $ | 104,869 | $ | 105,673 | 27.1 | % |
2013 | 2012 | ||||||
(Dollars in thousands) | |||||||
Balance, beginning of period, January 1 | $ | 4,951 | $ | 6,650 | |||
Additions to OREO | 394 | 694 | |||||
Proceeds from sale of OREO | (817 | ) | (2,047 | ) | |||
Valuation Adjustments in the period(1) | (16 | ) | (30 | ) | |||
Balance, end of period, June 30 | $ | 4,512 | $ | 5,267 |
(1) | Amount includes chargedowns and gains/losses on sale of OREO |
June 30, 2013 | December 31, 2012 | ||||||||||||
Amount | % of total deposits | Amount | % of total deposits | ||||||||||
(Dollars in thousands) | |||||||||||||
Non-interest bearing demand accounts | $ | 224,472 | 32.0 | % | $ | 254,979 | 34.0 | % | |||||
Interest bearing demand accounts | 100,490 | 14.4 | % | 99,623 | 13.3 | % | |||||||
Money market 0.0% to 4.02% | 222,161 | 31.8 | % | 213,155 | 28.5 | % | |||||||
Savings and IRA 0.0% to 4.91% | 64,390 | 9.2 | % | 75,788 | 10.1 | % | |||||||
Certificate of deposit accounts (CDs) | 37,495 | 5.4 | % | 43,535 | 5.8 | % | |||||||
Jumbo CDs | 50,362 | 7.2 | % | 56,228 | 7.5 | % | |||||||
Brokered CDs | — | — | % | 5,200 | 0.7 | % | |||||||
CDARS CDs to local customers | 151 | — | % | 426 | 0.1 | % | |||||||
Total deposits | $ | 699,521 | 100.0 | % | $ | 748,934 | 100.0 | % | |||||
Weighted average interest rate on certificates of deposit | 1.20 | % | 1.28 | % | |||||||||
Core Deposits as a percentage of total deposits (1) | 92.6 | % | 91.7 | % | |||||||||
Deposits generated from the Company’s market area as a % of total deposits | 100.0 | % | 99.3 | % |
(1) | Core deposits consist of non-interest bearing checking, money market checking, savings accounts, and certificate of deposit accounts of less than $100,000 (excluding public deposits). |
June 30, 2013 | % of total deposits | December 31, 2012 | % of total deposits | June 30, 2012 | % of total deposits | |||||||||||||||
Deposits by Location | ||||||||||||||||||||
North Idaho — Eastern Washington | $ | 358,681 | 51.3 | % | $ | 372,772 | 49.9 | % | $ | 337,540 | 46.5 | % | ||||||||
Magic Valley Idaho | 64,964 | 9.3 | % | 72,254 | 9.6 | % | 68,184 | 9.4 | % | |||||||||||
Greater Boise Area | 62,068 | 8.9 | % | 67,585 | 9.0 | % | 62,770 | 8.6 | % | |||||||||||
Southwest Idaho — Oregon, excluding Boise | 162,243 | 23.2 | % | 172,509 | 23.0 | % | 154,551 | 21.3 | % | |||||||||||
Administration, Secured Savings | 51,565 | 7.3 | % | 63,814 | 8.5 | % | 102,964 | 14.2 | % | |||||||||||
Total | $ | 699,521 | 100.0 | % | $ | 748,934 | 100.0 | % | $ | 726,009 | 100.0 | % |
Well-Capitalized | ||||||||||||||||||||
Actual | Capital Requirements | Requirements | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||
The Company | $ | 124,829 | 20.93 | % | $ | 47,724 | 8 | % | $ | 59,654 | 10 | % | ||||||||
Panhandle State Bank | 117,572 | 19.72 | % | 47,700 | 8 | % | 59,626 | 10 | % | |||||||||||
Tier I capital (to risk-weighted assets): | ||||||||||||||||||||
The Company | 117,365 | 19.67 | % | 23,862 | 4 | % | 35,793 | 6 | % | |||||||||||
Panhandle State Bank | 110,112 | 18.47 | % | 23,850 | 4 | % | 35,775 | 6 | % | |||||||||||
Tier I capital (to average assets): | ||||||||||||||||||||
The Company | 117,365 | 12.90 | % | 36,379 | 4 | % | 45,474 | 5 | % | |||||||||||
Panhandle State Bank | 110,112 | 12.12 | % | 36,555 | 4 | % | 45,443 | 5 | % |
• | deterioration in economic conditions that could result in increased loan and lease losses; |
• | inflation and interest rate levels, and market and monetary fluctuations; |
• | changes in market interest rates and spreads, which could adversely affect our net interest income and profitability, and the value of our investment securities portfolio; |
• | trade, monetary and fiscal policies and laws, including interest rate and income tax policies of the federal government; |
• | growth and acquisition strategies; |
• | applicable laws and regulations and legislative or regulatory changes, including the ultimate financial and operational burden of financial regulatory reform legislation and related regulations; |
• | the restrictions imposed on participants in the Troubled Asset Relief Program (“TARP”) Capital Purchase Program, including the impact of executive compensation restrictions, which may affect our ability to retain and recruit executives in competition with other firms who do not operate under those restrictions; |
• | our ability to attract new deposits and loans and leases; |
• | competitive market pricing factors; |
• | the effects of any adverse regulatory action; |
• | our ability to raise capital or incur debt on reasonable terms; |
• | the risks associated with lending and potential adverse changes in credit quality; |
• | risks associated with concentrations in real estate-related loans; |
• | declines in real estate values supporting loan collateral; |
• | increased loan delinquency rates; |
• | the timely development and acceptance of our new products and services; |
• | the willingness of customers to substitute competitors’ products and services for our products and services; |
• | technological and management changes; |
• | our ability to recruit and retain key management and staff; |
• | changes in estimates and assumptions used in financial accounting; |
• | our critical accounting policies and the implementation of such policies; |
• | potential interruption or breach in security of our systems; |
• | lower-than-expected revenue or cost savings or other issues in connection with mergers and acquisitions; |
• | changes in consumer spending, saving and borrowing habits; |
• | the strength of the United States economy in general and the strength of the local economies in which Intermountain conducts its operations; |
• | stability of funding sources and continued availability of borrowings; |
• | our success in gaining regulatory approvals, when required; |
• | results of regulatory examinations that could restrict growth; and |
• | our success at managing the risks involved in the foregoing. |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
Exhibit No. | Exhibit | ||
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | ||
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | ||
32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002. | ||
101* | The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 is formatted in XBRL: (i) the Unaudited Consolidated Balance Sheets, (ii) the Unaudited Consolidated Statements of Operations, (iii) the Unaudited Consolidated Statements of Changes in Cash Flows, (iv) the Unaudited Consolidated Statements of Comprehensive Income (Loss),and (v) the Notes to Unaudited Consolidated Financial Statements, tagged as blocks of text. | ||
* | Furnished herewith |
INTERMOUNTAIN COMMUNITY BANCORP (Registrant) | |||
August 12, 2013 | By: | /s/ Curt Hecker | |
Date | Curt Hecker | ||
President and Chief Executive Officer | |||
August 12, 2013 | By: | /s/ Doug Wright | |
Date | Doug Wright | ||
Executive Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report of Intermountain Community Bancorp; |
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(s) 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 Rule 13a-15(f) and 15(d)-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(s) 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/ Curt Hecker | ||
Curt Hecker President and Chief Executive Officer |
1. | I have reviewed this quarterly report of Intermountain Community Bancorp; |
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(s) 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 Rule 13a-15(f) and 15(d)-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(s) 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/ Doug Wright | ||
Doug Wright Executive Vice President and 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 results of operations of the Company. |
/s/ Curt Hecker | /s/ Doug Wright | |
Curt Hecker Chief Executive Officer | Doug Wright Chief Financial Officer |
New Accounting Pronouncements
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU No. 2013-01 clarifies that ASU No. 2011-11 applies only to derivatives, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The amendments are effective for annual and interim reporting periods beginning on or after January 1, 2013. The adoption of ASU No. 2013-01 did not have a material impact on the Company's consolidated financial statements. In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income. The amendments are effective for annual and interim reporting periods beginning on or after December 15, 2012. The adoption of ASU No. 2013-02 did not have a material impact on the Company's consolidated financial statements. |
Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|||||||
Interest income: | ||||||||||
Loans | $ 6,893 | $ 7,054 | $ 13,604 | $ 14,126 | ||||||
Investments | 1,580 | 2,072 | 3,172 | 4,120 | ||||||
Total interest income | 8,473 | 9,126 | 16,776 | 18,246 | ||||||
Interest expense: | ||||||||||
Deposits | 510 | 744 | 1,070 | 1,566 | ||||||
Other borrowings | 441 | 571 | 866 | 1,247 | ||||||
Total interest expense | 951 | 1,315 | 1,936 | 2,813 | ||||||
Net interest income | 7,522 | 7,811 | 14,840 | 15,433 | ||||||
Provision for losses on loans | (247) | (1,575) | (426) | (2,534) | ||||||
Net interest income after provision for losses on loans | 7,275 | 6,236 | 14,414 | 12,899 | ||||||
Other income: | ||||||||||
Fees and service charges | 1,895 | 1,592 | 3,570 | 3,185 | ||||||
Loan related fee income | 696 | 686 | 1,263 | 1,299 | ||||||
Net gain on sale of securities | 163 | 0 | 203 | 585 | ||||||
Net gain (loss) on sale of other assets | 2 | 18 | 6 | 22 | ||||||
Other-than-temporary impairment (“OTTI”) losses on investments | (21) | [1] | (52) | [1] | (63) | [1] | (323) | [1] | ||
Bank-owned life insurance | 85 | 87 | 170 | 174 | ||||||
Fair value adjustment on cash flow hedge | 80 | 90 | 146 | (294) | ||||||
Unexercised warrant liability fair value adjustment | (54) | 158 | 2 | 158 | ||||||
Other | 40 | 189 | 153 | 398 | ||||||
Total other income | 2,886 | 2,768 | 5,450 | 5,204 | ||||||
Operating expenses | ||||||||||
Salaries and employee benefits | 4,283 | 3,871 | 8,458 | 8,006 | ||||||
Occupancy expense | 1,521 | 1,623 | 3,045 | 3,307 | ||||||
Advertising | 180 | 168 | 294 | 280 | ||||||
Fees and service charges | 656 | 629 | 1,273 | 1,250 | ||||||
Printing, postage and supplies | 173 | 300 | 390 | 601 | ||||||
Legal and accounting | 471 | 396 | 812 | 746 | ||||||
FDIC assessment | 165 | 308 | 351 | 621 | ||||||
OREO operations | 32 | 120 | 143 | 224 | ||||||
Other expenses | 739 | 807 | 1,632 | 1,485 | ||||||
Total operating expenses | 8,220 | 8,222 | 16,398 | 16,520 | ||||||
Net income before income taxes | 1,941 | 782 | 3,466 | 1,583 | ||||||
Income tax benefit | 0 | 0 | 0 | 0 | ||||||
Net income | 1,941 | 782 | 3,466 | 1,583 | ||||||
Preferred stock dividend | 460 | 481 | 918 | 947 | ||||||
Net income applicable to common stockholders | $ 1,481 | $ 301 | $ 2,548 | $ 636 | ||||||
Earnings per share — basic (in dollars per share) | $ 0.23 | $ 0.05 | $ 0.40 | $ 0.12 | ||||||
Earnings per share — diluted (in dollars per share) | $ 0.23 | $ 0.05 | $ 0.39 | $ 0.12 | ||||||
Weighted average common shares outstanding — basic | 6,443,294 | 5,901,321 | 6,443,142 | 5,164,576 | ||||||
Weighted average common shares outstanding — diluted | 6,484,762 | 5,919,188 | 6,482,376 | 5,181,109 | ||||||
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Investments
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Jun. 30, 2013
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments: The amortized cost and fair values of investments are as follows (in thousands):
The following table summarizes the duration of Intermountain’s unrealized losses on available-for-sale and held-to-maturity securities as of the dates indicated (in thousands).
At June 30, 2013, the amortized cost and fair value of available-for-sale and held-to-maturity debt securities, by contractual maturity, are as follows (in thousands):
Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Intermountain’s investment portfolios are managed to provide and maintain liquidity; to maintain a balance of high quality, diversified investments to minimize risk; to offset other asset portfolio elements in managing interest rate risk; to provide collateral for pledging; and to maximize returns. At June 30, 2013, the Company does not intend to sell any of its available-for-sale securities that have a loss position and it is not likely that it will be required to sell the available-for-sale securities before the anticipated recovery of their remaining amortized cost or maturity date. The unrealized losses on residential mortgage-backed securities without other-than-temporary impairment (“OTTI”) were considered by management to be temporary in nature. The following table presents the OTTI losses for the six months ended June 30, 2013 and June 30, 2012:
_____________________________
The OTTI recognized on investment securities available for sale in 2013 relates to one non-agency collateralized mortgage obligation. Another security for which OTTI had been recognized in 2012 was sold in the first quarter of 2013. Each of these securities held various levels of credit subordination. These securities were valued by third-party pricing services using matrix or model pricing methodologies and were corroborated by broker indicative bids. We estimated the cash flows of the underlying collateral for each security considering credit, interest and prepayment risk models that incorporate management’s estimate of projected key assumptions including prepayment rates, collateral default rates and loss severity. Assumptions utilized vary from security to security, and are influenced by factors such as underlying loan interest rates, geographic location, borrower characteristics, vintage, and historical experience. We then used a third party to obtain information about the structure of each security, including subordination and other credit enhancements, in order to determine how the underlying collateral cash flows will be distributed to each security issued in the structure. These cash flows were then discounted at the interest rate equal to the yield anticipated at the time the security was purchased. We review the actual collateral performance of these securities on a quarterly basis and update the inputs as appropriate to determine the projected cash flows. On June 30, 2013,six securities with a amortized cost of $8,512,039were transferred from the available-for-sale category to the held-to-maturity category of the portfolio. The fair market value of the securities at the time of transfer was $8,234,244. The unrealized loss of $277,795 will continue to be reported as a component of accumulated other comprehensive income, net of tax, and amortized over the remaining life of the securities as an adjustment to yield. Upon transfer to the held-to-maturity category, premium and discount accounts were adjusted to reflect the fair market value of the security. The resulting premiums and discounts will also be amortized as an adjustment to yield. See Note 9 “Fair Value of Financial Instruments” for more information on the calculation of fair or carrying value for the investment securities. |
Basis of Presentation Basis of Presentation (Details) (Decrease in Unrestriced Cash and Deposit Balance, Restatement Adjustment, USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Jun. 30, 2013
|
|
Decrease in Unrestriced Cash and Deposit Balance | Restatement Adjustment
|
|
Decrease as a result of the restatement | $ 9.5 |
Cash and Cash Equivalents (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The balances of the Company's cash and cash equivalents are as follows (in thousands):
|
Loans and Allowance for Loan Losses (Impaired loans) (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | $ 1,298 | $ 1,564 | |||||
Principal balance: | |||||||
With an allowance recorded, principal balance | 4,586 | 6,491 | |||||
Without an allowance recorded, principal balance | 18,036 | 13,349 | |||||
Principal balance, total | 22,622 | 19,840 | |||||
Recorded investment: | |||||||
With an allowance recorded, recorded investments | 4,309 | 6,121 | |||||
Without an allowance recorded, recorded investment | 14,899 | 10,072 | |||||
Recorded investment, total | 19,208 | 16,193 | |||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 5,063 | 12,715 | |||||
Without an allowance recorded, average recorded investment | 11,894 | 15,069 | |||||
Average recorded investment | 16,957 | 27,784 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 150 | [1] | 495 | [1] | |||
Without an allowance recorded, interest income recognized | 818 | [1] | 1,028 | [1] | |||
Interest income recognized | 968 | [1] | 1,523 | [1] | |||
Commercial
|
|||||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | 253 | 628 | |||||
Principal balance: | |||||||
With an allowance recorded, principal balance | 1,427 | 1,964 | |||||
Without an allowance recorded, principal balance | 4,508 | 6,273 | |||||
Principal balance, total | 5,935 | 8,237 | |||||
Recorded investment: | |||||||
With an allowance recorded, recorded investments | 1,204 | 1,796 | |||||
Without an allowance recorded, recorded investment | 3,276 | 4,337 | |||||
Recorded investment, total | 4,480 | 6,133 | |||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 1,308 | 2,668 | |||||
Without an allowance recorded, average recorded investment | 3,385 | 5,920 | |||||
Average recorded investment | 4,693 | 8,588 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 52 | [1] | 99 | [1] | |||
Without an allowance recorded, interest income recognized | 297 | [1] | 549 | [1] | |||
Interest income recognized | 349 | [1] | 648 | [1] | |||
Commercial real estate
|
|||||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | 366 | 267 | |||||
Principal balance: | |||||||
With an allowance recorded, principal balance | 1,260 | 1,486 | |||||
Without an allowance recorded, principal balance | 4,931 | 3,178 | |||||
Principal balance, total | 6,191 | 4,664 | |||||
Recorded investment: | |||||||
With an allowance recorded, recorded investments | 1,225 | 1,315 | |||||
Without an allowance recorded, recorded investment | 3,238 | 2,058 | |||||
Recorded investment, total | 4,463 | 3,373 | |||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 1,294 | 5,605 | |||||
Without an allowance recorded, average recorded investment | 2,977 | 2,618 | |||||
Average recorded investment | 4,271 | 8,223 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 39 | [1] | 222 | [1] | |||
Without an allowance recorded, interest income recognized | 232 | [1] | 162 | [1] | |||
Interest income recognized | 271 | [1] | 384 | [1] | |||
Commercial construction
|
|||||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 0 | 400 | |||||
Without an allowance recorded, average recorded investment | 0 | 97 | |||||
Average recorded investment | 0 | 497 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 0 | [1] | 0 | [1] | |||
Without an allowance recorded, interest income recognized | 0 | [1] | 0 | [1] | |||
Interest income recognized | 0 | [1] | 0 | [1] | |||
Land and land development loans
|
|||||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | 112 | 114 | |||||
Principal balance: | |||||||
With an allowance recorded, principal balance | 834 | 1,627 | |||||
Without an allowance recorded, principal balance | 2,166 | 493 | |||||
Principal balance, total | 3,000 | 2,120 | |||||
Recorded investment: | |||||||
With an allowance recorded, recorded investments | 834 | 1,601 | |||||
Without an allowance recorded, recorded investment | 2,026 | 422 | |||||
Recorded investment, total | 2,860 | 2,023 | |||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 1,351 | 1,921 | |||||
Without an allowance recorded, average recorded investment | 929 | 2,396 | |||||
Average recorded investment | 2,280 | 4,317 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 25 | [1] | 95 | [1] | |||
Without an allowance recorded, interest income recognized | 31 | [1] | 137 | [1] | |||
Interest income recognized | 56 | [1] | 232 | [1] | |||
Agriculture
|
|||||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | 0 | 10 | |||||
Principal balance: | |||||||
With an allowance recorded, principal balance | 0 | 31 | |||||
Without an allowance recorded, principal balance | 4,539 | 2,103 | |||||
Principal balance, total | 4,539 | 2,134 | |||||
Recorded investment: | |||||||
With an allowance recorded, recorded investments | 0 | 31 | |||||
Without an allowance recorded, recorded investment | 4,537 | 2,103 | |||||
Recorded investment, total | 4,537 | 2,134 | |||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 15 | 21 | |||||
Without an allowance recorded, average recorded investment | 3,056 | 2,305 | |||||
Average recorded investment | 3,071 | 2,326 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 0 | [1] | 3 | [1] | |||
Without an allowance recorded, interest income recognized | 189 | [1] | 124 | [1] | |||
Interest income recognized | 189 | [1] | 127 | [1] | |||
Residential real estate
|
|||||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | 458 | 458 | |||||
Principal balance: | |||||||
With an allowance recorded, principal balance | 939 | 1,243 | |||||
Without an allowance recorded, principal balance | 1,839 | 1,254 | |||||
Principal balance, total | 2,778 | 2,497 | |||||
Recorded investment: | |||||||
With an allowance recorded, recorded investments | 921 | 1,240 | |||||
Without an allowance recorded, recorded investment | 1,786 | 1,122 | |||||
Recorded investment, total | 2,707 | 2,362 | |||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 959 | 1,870 | |||||
Without an allowance recorded, average recorded investment | 1,511 | 1,698 | |||||
Average recorded investment | 2,470 | 3,568 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 28 | [1] | 66 | [1] | |||
Without an allowance recorded, interest income recognized | 67 | [1] | 52 | [1] | |||
Interest income recognized | 95 | [1] | 118 | [1] | |||
Consumer
|
|||||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | 109 | 87 | |||||
Principal balance: | |||||||
With an allowance recorded, principal balance | 126 | 140 | |||||
Without an allowance recorded, principal balance | 53 | 48 | |||||
Principal balance, total | 179 | 188 | |||||
Recorded investment: | |||||||
With an allowance recorded, recorded investments | 125 | 138 | |||||
Without an allowance recorded, recorded investment | 36 | 30 | |||||
Recorded investment, total | 161 | 168 | |||||
Average recorded investment: | |||||||
With an allowance recorded, average recorded investment | 136 | 230 | |||||
Without an allowance recorded, average recorded investment | 36 | 35 | |||||
Average recorded investment | 172 | 265 | |||||
Interest income recognized: | |||||||
With an allowance recorded, interest income recognized | 6 | [1] | 10 | [1] | |||
Without an allowance recorded, interest income recognized | 2 | [1] | 4 | [1] | |||
Interest income recognized | $ 8 | [1] | $ 14 | [1] | |||
|
Investments (Amortized cost and fair values of investments) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Available-for-sale Securities [Abstract] | ||
Amortized Cost | $ 257,413 | $ 274,339 |
Cumulative Non-Credit OTTI (Losses) Recognized in OCI | (902) | (1,661) |
Gross Unrealized Gains | 3,551 | 9,016 |
Gross Unrealized Losses | (3,446) | (1,525) |
Fair Value/ Carrying Value | 256,616 | 280,169 |
Held-to-maturity Securities, Unclassified [Abstract] | ||
Carrying Value/ Amortized Cost | 22,991 | 14,826 |
Fair Value | 24,053 | |
Corporate Bonds
|
||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 6,013 | |
Cumulative Non-Credit OTTI (Losses) Recognized in OCI | 0 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (69) | |
Fair Value/ Carrying Value | 5,944 | |
State and municipal bonds
|
||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 50,567 | 60,984 |
Cumulative Non-Credit OTTI (Losses) Recognized in OCI | 0 | 0 |
Gross Unrealized Gains | 136 | 2,823 |
Gross Unrealized Losses | (1,237) | (158) |
Fair Value/ Carrying Value | 49,466 | 63,649 |
Held-to-maturity Securities, Unclassified [Abstract] | ||
Carrying Value/ Amortized Cost | 22,991 | 14,826 |
Other than Temporary Impairment Losses, Non-credit Losses Included in Other Comprehensive Income, Held-to-Maturity Securities | 0 | 0 |
Gross Unrealized Gains | 1,064 | 1,518 |
Gross Unrealized Losses | (2) | 0 |
Fair Value | 24,053 | 16,344 |
Mortgage-backed securities
|
||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 53,454 | 71,821 |
Cumulative Non-Credit OTTI (Losses) Recognized in OCI | 0 | 0 |
Gross Unrealized Gains | 794 | 2,224 |
Gross Unrealized Losses | (705) | (652) |
Fair Value/ Carrying Value | 53,543 | 73,393 |
SBA Pools
|
||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 24,593 | 19,962 |
Cumulative Non-Credit OTTI (Losses) Recognized in OCI | 0 | 0 |
Gross Unrealized Gains | 519 | 359 |
Gross Unrealized Losses | (42) | 0 |
Fair Value/ Carrying Value | 25,070 | 20,321 |
Agency Securities | CMO's
|
||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 114,546 | 110,683 |
Cumulative Non-Credit OTTI (Losses) Recognized in OCI | 0 | 0 |
Gross Unrealized Gains | 1,478 | 2,209 |
Gross Unrealized Losses | (1,185) | (328) |
Fair Value/ Carrying Value | 114,839 | 112,564 |
Non-Agency (below investment grade) | CMO's
|
||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 8,240 | 10,889 |
Cumulative Non-Credit OTTI (Losses) Recognized in OCI | (902) | (1,661) |
Gross Unrealized Gains | 624 | 1,401 |
Gross Unrealized Losses | (208) | (387) |
Fair Value/ Carrying Value | $ 7,754 | $ 10,242 |
Cash and Cash Equivalents (Restricted Cash) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted non-interest bearing cash | $ 12,464 | $ 13,146 |
Reserve for FRB Requirement
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted non-interest bearing cash | 1,300 | 1,100 |
Secure Interest Swap Transactions and Foreign Currency Exchange
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted non-interest bearing cash | 572 | 572 |
Escrow Deposit for Deferred Interest [Member]
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted non-interest bearing cash | 900 | |
Held for Future Tenant Improvement by Company's Subsidiary
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted non-interest bearing cash | 1,100 | 1,100 |
Held for Intercompany Agreement by Company's Subsidiary
|
||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted non-interest bearing cash | $ 9,500 | $ 9,500 |
Derivative Financial Instruments (Balance sheet disclosures) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Restricted cash | $ 12,464 | $ 13,146 |
Loans and Allowance for Loan Losses (Aging of loan receivables) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 524,710 | $ 521,409 |
30 to 89 days past due | 1,273 | 687 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 4,799 | 6,529 |
Total loans receivable | 530,782 | 528,625 |
Commercial
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 112,038 | 117,096 |
30 to 89 days past due | 244 | 169 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 1,417 | 4,042 |
Total loans receivable | 113,699 | 121,307 |
Commercial real estate
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 188,088 | 185,128 |
30 to 89 days past due | 0 | 0 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 2,728 | 1,716 |
Total loans receivable | 190,816 | 186,844 |
Commercial construction
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 10,085 | 3,832 |
30 to 89 days past due | 0 | 0 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans receivable | 10,085 | 3,832 |
Land and land development loans
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 30,622 | 31,032 |
30 to 89 days past due | 159 | 0 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 114 | 246 |
Total loans receivable | 30,895 | 31,278 |
Agriculture
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 94,151 | 85,835 |
30 to 89 days past due | 404 | 34 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 276 | 98 |
Total loans receivable | 94,831 | 85,967 |
Multifamily
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 15,271 | 16,544 |
30 to 89 days past due | 0 | 0 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans receivable | 15,271 | 16,544 |
Residential real estate
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 57,681 | 59,158 |
30 to 89 days past due | 455 | 439 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 173 | 423 |
Total loans receivable | 58,309 | 60,020 |
Residential construction
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,004 | 940 |
30 to 89 days past due | 0 | 0 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans receivable | 2,004 | 940 |
Consumer
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 8,741 | 9,577 |
30 to 89 days past due | 11 | 45 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 91 | 4 |
Total loans receivable | 8,843 | 9,626 |
Municipal
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,029 | 12,267 |
30 to 89 days past due | 0 | 0 |
90 days past due and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans receivable | $ 6,029 | $ 12,267 |
Loans and Allowance for Loan Losses (Nonperforming assets and classified loans) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
||||
---|---|---|---|---|---|---|
Loans and Allowance for Loan Losses: [Abstract] | ||||||
Loans past due in excess of 90 days and still accruing | $ 0 | $ 0 | ||||
Non-accrual loans | 4,799 | 6,529 | ||||
Total non-performing loans | 4,799 | 6,529 | ||||
Other real estate owned (“OREO”) | 4,512 | 4,951 | ||||
Total non-performing assets ('NPA's') | 9,311 | 11,480 | ||||
Classified loans | $ 26,288 | [1] | $ 24,932 | [1] | ||
|
Fair Value of Financial Instruments (Unobservable inputs reconciliation - assets) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Residential mortgage backed securities
|
||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | $ 8,220 | $ 14,118 | $ 10,242 | $ 14,774 |
Total gains or losses (realized/unrealized) included in earnings | (21) | (52) | (22) | (323) |
Total gains or losses (realized/unrealized) included in other comprehensive income | 48 | 183 | 229 | 427 |
Principal payments | (493) | (748) | (833) | (1,377) |
Sales of securities | 0 | 0 | (1,862) | 0 |
Transfers in and /or out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 7,754 | 13,501 | 7,754 | 13,501 |
Derivative Financial Instruments, Assets
|
||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | (480) | (752) | (573) | (850) |
Total gains or losses (realized/unrealized) included in earnings | 149 | 37 | 242 | (411) |
Total gains or losses (realized/unrealized) included in other comprehensive income | 0 | 0 | 0 | 546 |
Principal payments | 0 | 0 | 0 | 0 |
Sales of securities | 0 | 0 | 0 | 0 |
Transfers in and /or out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | (331) | (715) | (331) | (715) |
Unexercised Warrants
|
||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | (772) | (1,007) | (828) | 0 |
Total gains or losses (realized/unrealized) included in earnings | (54) | 157 | 2 | 157 |
Total gains or losses (realized/unrealized) included in other comprehensive income | 0 | 0 | 0 | 0 |
Principal payments | 0 | 0 | 0 | 0 |
Sales of securities | 0 | 0 | 0 | (1,007) |
Transfers in and /or out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | $ (826) | $ (850) | $ (826) | $ (850) |
Investments (Narrative) (Details) (USD $)
|
6 Months Ended |
---|---|
Jun. 30, 2013
security
|
|
Investement [Abstract] | |
Number of Available-for-sale securities transferred to held-to-maturity | 6 |
Security transferred to held-to-maturity, amortized cost | $ 8,512,039 |
Security transferred to held-to-maturity, fair value | 8,234,244 |
Security transferred to held-to-maturity, unrealized loss | $ 277,795 |
Earnings Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jan. 31, 2012
|
|
Numerator: | |||||
Net income (loss) - basic and diluted | $ 1,941 | $ 782 | $ 3,466 | $ 1,583 | |
Preferred stock dividend | 460 | 481 | 918 | 947 | |
Net income (loss) applicable to common stockholders | $ 1,481 | $ 301 | $ 2,548 | $ 636 | |
Denominator: | |||||
Weighted average shares outstanding - basic | 6,443,294 | 5,901,321 | 6,443,142 | 5,164,576 | |
Dilutive effect of common stock options, warrants, restricted stock awards | 41,468 | 17,867 | 39,234 | 16,533 | |
Weighted average common shares outstanding — diluted | 6,484,762 | 5,919,188 | 6,482,376 | 5,181,109 | |
Earnings (loss) per share — basic (in dollars per share) | $ 0.23 | $ 0.05 | $ 0.40 | $ 0.12 | |
Effect of dilutive common stock options, warrants, restricted stock awards (in dollars per share) | $ 0.00 | $ 0.00 | $ (0.01) | $ 0.00 | |
Earnings (loss) per share — diluted (in dollars per share) | $ 0.23 | $ 0.05 | $ 0.39 | $ 0.12 | |
Number of securities called by warrants | 1,700,000 | ||||
Stock Options
|
|||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common stock options not included in diluted earnings per share | 6,269 | 15,310 | |||
Common stock warrant - Series A
|
|||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common stock options not included in diluted earnings per share | 65,323 |
Cash and Cash Equivalents (Summary of Cash) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Unrestricted interest-bearing cash and cash equivalents | $ 33,474 | $ 53,403 |
Unrestricted non interest-bearing and vault cash | 7,003 | 13,536 |
Restricted non-interest bearing cash | $ 12,464 | $ 13,146 |
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Statement of Other Comprehensive Income [Abstract] | ||||
Net income | $ 1,941 | $ 782 | $ 3,466 | $ 1,583 |
Other comprehensive income: | ||||
Change in unrealized gains/losses on investments, and mortgage backed securities (“MBS”) available for sale, excluding non-credit loss on impairment of securities | (7,259) | 292 | (6,763) | (439) |
Realized net losses reclassified from other comprehensive income | (163) | 0 | (203) | (585) |
Non-credit loss on impairment on available-for-sale debt securities | 21 | 52 | 63 | 316 |
Less deferred income tax benefit (provision) on securities | 2,931 | (136) | 2,734 | 280 |
Change in fair value of qualifying cash flow hedge, net of tax | 0 | 0 | 0 | 330 |
Net other comprehensive income (loss) | (4,470) | 208 | (4,169) | (98) |
Comprehensive income (loss) | $ (2,529) | $ 990 | $ (703) | $ 1,485 |
Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Basis of Presentation: [Abstract] | |
Basis of Presentation | Basis of Presentation: The foregoing unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, these financial statements do not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2012. In the opinion of management, the unaudited interim consolidated financial statements furnished herein include adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of Intermountain Community Bancorp’s (“Intermountain’s” or “the Company’s”) consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of Intermountain’s consolidated financial position and results of operations. During the fourth quarter of 2012, the Company identified a misstatement related to the elimination of cash deposited by the parent company with the subsidiary bank. The misstatement increased the unrestricted cash and deposit balances in the Consolidated Balance Sheet and the amount of cash received from financing activities reported in the Consolidated Statement of Cash Flows for the quarters ended March 31, June 30 and September 30, 2012. In accordance with the SEC Staff Accounting Bulletin (SAB) No. 99, "Materiality," and SAB No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements," management evaluated the materiality of the error from qualitative and quantitative perspectives and concluded that the error was immaterial to these prior interim periods. Consequently, the Consolidated Balance Sheet and Consolidated Statement of Cash Flows contained in this Report have been revised for the six months ended June 30, 2012. This change resulted in a corresponding decrease of $9.5 million from non-interest bearing and vault cash and deposit liabilities on the balance sheet and from cash flows from financing activities on the statement of cash flows. This change did not affect net income or shareholders' equity for any period. |
Loans and Allowance for Loan Losses
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Loans and Allowance for Loan Losses: [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses: The components of loans receivable are as follows (in thousands):
The components of the allowance for loan loss by types are as follows (in thousands):
A summary of current, past due and nonaccrual loans as of June 30, 2013 is as follows, (in thousands):
A summary of current, past due and nonaccrual loans as of December 31, 2012 is as follows, (in thousands):
The following table provides a summary of Troubled Debt Restructurings ("TDR") outstanding at period end by performing status, (in thousands).
The Company's loans that were modified in the three and six month period ended June 30, 2013 and 2012 and considered a TDR are as follows (dollars in thousands):
The balances below provide information as to how the loans were modified as TDRs during the three and six months ended June 30, 2013 and 2012, (in thousands).
As of June 30, 2013, the Company had specific reserves of $460,000 on TDRs, and there were no TDRs in default. The allowance for loan losses and reserve for unfunded commitments are maintained at levels considered adequate by management to provide for probable loan losses as of the reporting dates. The allowance for loan losses and reserve for unfunded commitments are based on management’s assessment of various factors affecting the loan portfolio, including problem loans, business conditions and loss experience, and an overall evaluation of the quality of the underlying collateral. Changes in the allowance for loan losses and the reserve for unfunded commitments during the three and six month periods ended June 30, 2013 and 2012 are as follows:
Allowance for Unfunded Commitments
Management's policy is to charge off loans or portions of loans as soon as an identifiable loss amount can be determined from evidence obtained, such as current cash flow information, updated appraisals or similar real estate evaluations, equipment, inventory or similar collateral evaluations, accepted offers on loan sales or negotiated discounts, and/or guarantor asset valuations. In situations where problem loans are dependent on collateral liquidation for repayment, management obtains updated independent valuations, such as appraisals or broker opinions, generally no less frequently than once every twelve months and more frequently for larger or more troubled loans. In the time period between these independent valuations, the Company monitors market conditions for any significant event or events that would materially change the valuations, and updates them as appropriate. If the valuations suggest an increase in collateral values, the Company does not recover prior amounts charged off until the assets are actually sold and the increase realized. However, if the updated valuations suggest additional loss, the Company charges off the additional amount. The following tables summarize impaired loans:
Loan Risk Factors The following is a recap of the risk characteristics associated with each of the Company's major loan portfolio segments. Commercial Loans: Although the impacts of the soft recovery continue to heighten risk in the commercial portfolio, management does not consider the portfolio to present “concentration risk” at this time. Management believes there is adequate diversification by type, industry, and geography to mitigate excessive risk. The commercial portfolio includes a mix of term loan facilities and operating loans and lines made to a variety of different business types in the markets it serves. The Company utilizes SBA, USDA and other government-assisted or guaranteed financing programs whenever advantageous to further mitigate risk in this area. With the exception of the agricultural portfolio discussed in more detail below, there is no other significant concentration of industry types in its loan portfolio, and no dominant employer or industry across all the markets it serves. Underwriting focuses on the evaluation of potential future cash flows to cover debt requirements, sufficient collateral margins to buffer against devaluations, credit history of the business and its principals, and additional support from willing and capable guarantors. Commercial Real Estate Loans: Recovering economic conditions and stabilizing commercial property values have reduced risk in this segment from prior recent quarters. In comparison to its national peer group, the Company has less overall exposure to commercial real estate and a stronger mix of owner-occupied (where the borrower occupies and operates in at least part of the building) versus non-owner occupied loans. The loans represented in this category are spread across the Company's footprint, and there are no significant concentrations by industry type or borrower. The most significant property types represented in the portfolio are office 21.2%, industrial 14.0%, health care 14.8% and retail 11.2%. The other 38.8% is a mix of property types with smaller concentrations, including religious facilities, auto-related properties, restaurants, convenience stores, storage units, motels and commercial investment land. While 68.5% of the Company's commercial real estate portfolio is in its Northern Idaho/Eastern Washington region, this region is a large and diverse region with differing local economies and real estate markets. Given this diversity, and the diversity of property types and industries represented, management does not believe that this concentration represents a significant concentration risk. Non-owner occupied commercial real estate loans are made only to projects with strong debt-service-coverage and lower loan-to-value ratios and/or to borrowers with established track records and the ability to fund potential project cash flow shortfalls from other income sources or liquid assets. Project due diligence is conducted by the Bank, to help provide for adequate contingencies, collateral and/or government guaranties. The Company has largely avoided speculative financing of investment properties, particularly of the types most vulnerable in the recent downturn, including investment office buildings and retail strip developments. Management believes geographic, borrower and property-type diversification, and prudent underwriting and monitoring standards applied by seasoned commercial lenders mitigate concentration risk in this segment. Construction and Development Loans: After the aggressive reduction efforts of the past few years, the land development and commercial construction loan components pose much lower concentration risk for the total loan portfolio, and now total $40.1 million, or 7.7% of the loan portfolio. The substantial portfolio reduction, combined with stabilizing real estate values, has reduced risk in this portfolio to a level where it no longer represents a significant concentration risk. Agricultural Loans: The agricultural portfolio represents a larger percentage of the loans in the Bank's southern Idaho region. At the end of the period, agricultural loans and agricultural real estate loans totaled $94.8 million or 17.8% of the total loan portfolio. The agricultural portfolio consists of loans secured by livestock, crops and real estate. Agriculture has typically been a cyclical industry with periods of both strong and weak performance. Current conditions remain strong but may weaken in the next few years because of rising input costs, weaker commodity prices, and potential water shortages. To mitigate credit risk, specific underwriting is applied to retain only borrowers that have proven track records in the agricultural industry. Many of Intermountain's agricultural borrowers are third or fourth generation farmers and ranchers with limited real estate debt, which reduces overall debt coverage requirements and provides extra flexibility and collateral for equipment and operating borrowing needs. In addition, the Bank has hired senior lenders with significant experience in agricultural lending to administer these loans. Further mitigation is provided through frequent collateral inspections, adherence to farm operating budgets, and annual or more frequent review of financial performance. Multifamily: The multifamily segment comprises $15.3 million or 2.9% of the total loan portfolio at the end of the period. This portfolio represents relatively low risk for the Company, as a result of the strong current market for multifamily properties and low vacancy rates across the Company's footprint. Residential Real Estate, Residential Construction and Consumer: Residential real estate, residential construction and consumer loans total $69.2 million or 13.1% of the total loan portfolio. Management does not believe they represent significant concentration risk. However, continuing soft employment conditions and reduced home equity is putting pressure on some borrowers in this portfolio. Municipal loans: Municipal loans comprise $6.0 million or 1.1% of the total loan portfolio. The small size of the portfolio and careful underwriting of the loans within it limit overall concentration risk in this segment. Credit quality indicators The risk grade analyses included as part of the Company's credit quality indicators for loans and leases are developed through review of individual borrowers on an ongoing basis. Each loan is evaluated at the time of origination and each subsequent renewal. Loans with principal balances exceeding $500,000 are evaluated on a more frequent basis. Trigger events (such as loan delinquencies, customer contact, and significant collateral devaluation) also require an updated credit quality review. Loans with risk grades four through eight are evaluated at least annually with more frequent evaluations often done as borrower, collateral or market conditions change. In situations where problem loans are dependent on collateral liquidation for repayment, management obtains updated independent valuations, generally no less frequently than once every twelve months and more frequently for larger or more troubled loans. Other measurements used to assess credit quality, including delinquency statistics, nonaccrual and OREO levels, net chargeoff activity, and classified asset trends, are updated and evaluated monthly. These risk grades are defined as follows: Satisfactory — A satisfactory rated loan is not adversely classified because it does not display any of the characteristics for adverse classification. Watch — A watch loan has a solid but vulnerable repayment source. There is loss exposure only if the primary repayment source and collateral experience prolonged deterioration. Loans in this risk grade category are subject to frequent review and change due to the increased vulnerability of repayment sources and collateral valuations. Special mention — A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention loans are not adversely classified and do not warrant adverse classification. Substandard — A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected. Doubtful — A loan classified doubtful has all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions, and values. Loss — Loans classified loss are considered uncollectible and of such little value that their continuing to be carried as an asset is not warranted. This classification does not necessarily mean that there is to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be realized in the future. Credit quality indicators by loan segment are summarized as follows:
The following table summarizes non-performing assets and classified loans at the dates indicated:
_____________________________
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Cash and Cash Equivalents (Notes)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash & Cash Equivalents: The balances of the Company's cash and cash equivalents are as follows (in thousands):
In June 2013 and December 2012, unrestricted interest bearing cash was deposited at the Federal Reserve ("FRB") and Federal Home Loan Bank of Seattle ("FHLB"). Unrestricted non-interest bearing cash includes overnight cash deposited at several of the Company's correspondent banks and balances kept in the vaults of its various offices. At June 30 restricted non-interest bearing cash consisted of the following:
At December 31, 2012, restricted cash consisted of $1.1 million to meet FRB reserve requirements, $572,000 to secure interest swap transactions, $877,000 deposited in escrow for the payment of deferred interest on the Company's Trust II debenture and foreign currency exchange lines, $1.1 million to fund future tenant improvements at the Sandpoint Center, and $9.5 million as required by the intercompany agreement discussed above. |
Loans and Allowance for Loan Losses (Narrative) (Details) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 530,782,000 | $ 528,625,000 |
Percentage of loans receivable | 100.00% | 100.00% |
Financing receivable credit quality review threshold | 500,000 | |
Specific reserves | 460,000 | |
Commercial real estate
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 190,816,000 | 186,844,000 |
Percentage of loans receivable | 36.00% | 35.40% |
Commercial real estate | Northern Idaho / Eastern Washington
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loans receivable | 68.50% | |
Commercial real estate | Office
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loans receivable | 21.20% | |
Commercial real estate | Industrial
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loans receivable | 14.00% | |
Commercial real estate | Health care
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loans receivable | 14.80% | |
Commercial real estate | Retail
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loans receivable | 11.20% | |
Commercial real estate | Other
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loans receivable | 38.80% | |
Construction and Development Loans [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 40,100,000 | |
Percentage of loans receivable | 7.70% | |
Agriculture
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 94,831,000 | 85,967,000 |
Percentage of loans receivable | 17.80% | 16.30% |
Multifamily
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 15,271,000 | 16,544,000 |
Percentage of loans receivable | 2.90% | 3.10% |
Residential
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 69,200,000 | |
Percentage of loans receivable | 13.10% | |
Municipal
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 6,029,000 | $ 12,267,000 |
Percentage of loans receivable | 1.10% | 2.30% |
Investments (Continuous unrealized loss position) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Available-for-sale And Held-To-Maturity Securities, Continuous Unrealized Loss Position [Abstract] [Abstract] | ||
Less than 12 months, fair value | $ 118,432 | $ 69,199 |
Less than 12 months, unrealized losses | (2,802) | (943) |
12 months or longer, fair value | 16,765 | 11,408 |
12 months or longer, unrealized losses | (646) | (582) |
Total, fair value | 135,197 | 80,607 |
Total, unrealized losses | (3,448) | (1,525) |
Corporate Bonds
|
||
Available-for-sale And Held-To-Maturity Securities, Continuous Unrealized Loss Position [Abstract] [Abstract] | ||
Less than 12 months, fair value | 5,944 | |
Less than 12 months, unrealized losses | (69) | |
12 months or longer, fair value | 0 | |
12 months or longer, unrealized losses | 0 | |
Total, fair value | 5,944 | |
Total, unrealized losses | (69) | |
State and municipal bonds
|
||
Available-for-sale And Held-To-Maturity Securities, Continuous Unrealized Loss Position [Abstract] [Abstract] | ||
Less than 12 months, fair value | 37,249 | 12,019 |
Less than 12 months, unrealized losses | (1,239) | (158) |
12 months or longer, fair value | 0 | 0 |
12 months or longer, unrealized losses | 0 | 0 |
Total, fair value | 37,249 | 12,019 |
Total, unrealized losses | (1,239) | (158) |
Mortgage-backed securities & CMO's
|
||
Available-for-sale And Held-To-Maturity Securities, Continuous Unrealized Loss Position [Abstract] [Abstract] | ||
Less than 12 months, fair value | 57,180 | |
Less than 12 months, unrealized losses | (785) | |
12 months or longer, fair value | 11,408 | |
12 months or longer, unrealized losses | (582) | |
Total, fair value | 68,588 | |
Total, unrealized losses | (1,367) | |
Residential mortgage backed securities
|
||
Available-for-sale And Held-To-Maturity Securities, Continuous Unrealized Loss Position [Abstract] [Abstract] | ||
Less than 12 months, fair value | 70,796 | |
Less than 12 months, unrealized losses | (1,452) | |
12 months or longer, fair value | 16,765 | |
12 months or longer, unrealized losses | (646) | |
Total, fair value | 87,561 | |
Total, unrealized losses | (2,098) | |
SBA Pools
|
||
Available-for-sale And Held-To-Maturity Securities, Continuous Unrealized Loss Position [Abstract] [Abstract] | ||
Less than 12 months, fair value | 4,443 | |
Less than 12 months, unrealized losses | (42) | |
12 months or longer, fair value | 0 | |
12 months or longer, unrealized losses | 0 | |
Total, fair value | 4,443 | |
Total, unrealized losses | $ (42) |
Loans and Allowance for Loan Losses (Components of loans receivable) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | $ 511,574 | $ 512,432 | ||||
Individually evaluated for impairment | 19,208 | 16,193 | ||||
Percentage of loans receivable | 100.00% | 100.00% | ||||
Total loans receivable | 530,782 | 528,625 | ||||
Allowance for loan losses | (8,042) | (7,678) | (7,943) | (10,233) | (11,372) | (12,690) |
Deferred loan fees, net of direct origination costs | 0 | 86 | ||||
Loans receivable, net | 522,740 | 520,768 | ||||
Weighted average interest rate | 5.28% | 5.28% | ||||
Commercial
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 109,219 | 115,174 | ||||
Individually evaluated for impairment | 4,480 | 6,133 | ||||
Percentage of loans receivable | 21.40% | 23.00% | ||||
Total loans receivable | 113,699 | 121,307 | ||||
Allowance for loan losses | (1,900) | (1,763) | (2,156) | (2,429) | (2,577) | (2,817) |
Commercial real estate
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 186,353 | 183,471 | ||||
Individually evaluated for impairment | 4,463 | 3,373 | ||||
Percentage of loans receivable | 36.00% | 35.40% | ||||
Total loans receivable | 190,816 | 186,844 | ||||
Allowance for loan losses | (2,736) | (2,814) | (2,762) | (4,032) | (3,953) | (4,880) |
Commercial construction
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 10,085 | 3,832 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Percentage of loans receivable | 1.90% | 0.70% | ||||
Total loans receivable | 10,085 | 3,832 | ||||
Allowance for loan losses | (231) | (217) | (101) | (94) | (474) | (500) |
Land and land development loans
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 28,035 | 29,255 | ||||
Individually evaluated for impairment | 2,860 | 2,023 | ||||
Percentage of loans receivable | 5.80% | 5.90% | ||||
Total loans receivable | 30,895 | 31,278 | ||||
Allowance for loan losses | (956) | (1,210) | (1,197) | (1,565) | (2,210) | (2,273) |
Agriculture
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 90,294 | 83,833 | ||||
Individually evaluated for impairment | 4,537 | 2,134 | ||||
Percentage of loans receivable | 17.80% | 16.30% | ||||
Total loans receivable | 94,831 | 85,967 | ||||
Allowance for loan losses | (692) | (241) | (228) | (207) | (138) | (172) |
Multifamily
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 15,271 | 16,544 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Percentage of loans receivable | 2.90% | 3.10% | ||||
Total loans receivable | 15,271 | 16,544 | ||||
Allowance for loan losses | (54) | (55) | (51) | (57) | (77) | (91) |
Residential real estate
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 55,602 | 57,658 | ||||
Individually evaluated for impairment | 2,707 | 2,362 | ||||
Percentage of loans receivable | 11.00% | 11.30% | ||||
Total loans receivable | 58,309 | 60,020 | ||||
Allowance for loan losses | (1,195) | (1,103) | (1,144) | (1,601) | (1,575) | (1,566) |
Residential construction
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 2,004 | 940 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Percentage of loans receivable | 0.40% | 0.20% | ||||
Total loans receivable | 2,004 | 940 | ||||
Allowance for loan losses | (44) | (35) | (24) | (4) | (62) | (59) |
Consumer
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 8,682 | 9,458 | ||||
Individually evaluated for impairment | 161 | 168 | ||||
Percentage of loans receivable | 1.70% | 1.80% | ||||
Total loans receivable | 8,843 | 9,626 | ||||
Allowance for loan losses | (203) | (206) | (202) | (201) | (258) | (295) |
Municipal
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 6,029 | 12,267 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Percentage of loans receivable | 1.10% | 2.30% | ||||
Total loans receivable | 6,029 | 12,267 | ||||
Allowance for loan losses | $ (31) | $ (34) | $ (78) | $ (43) | $ (48) | $ (37) |
Loans and Allowance for Loan Losses (Allowance for loan losses, rollforward) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | $ 7,678 | $ 11,372 | $ 7,943 | $ 12,690 |
Charge-offs during period | (396) | (3,503) | (1,122) | (6,113) |
Recoveries during period | 513 | 789 | 795 | 1,122 |
Provision | 247 | 1,575 | 426 | 2,534 |
Balance, end of period | 8,042 | 10,233 | 8,042 | 10,233 |
Commercial
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 1,763 | 2,577 | 2,156 | 2,817 |
Charge-offs during period | (132) | (1,078) | (221) | (1,757) |
Recoveries during period | 310 | 289 | 489 | 326 |
Provision | (41) | 641 | (524) | 1,043 |
Balance, end of period | 1,900 | 2,429 | 1,900 | 2,429 |
Commercial real estate
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 2,814 | 3,953 | 2,762 | 4,880 |
Charge-offs during period | (48) | (841) | (614) | (1,978) |
Recoveries during period | 20 | 134 | 27 | 219 |
Provision | (50) | 786 | 561 | 911 |
Balance, end of period | 2,736 | 4,032 | 2,736 | 4,032 |
Commercial construction
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 217 | 474 | 101 | 500 |
Charge-offs during period | 0 | (243) | 0 | (243) |
Recoveries during period | 14 | 3 | 15 | 5 |
Provision | 0 | (140) | 115 | (168) |
Balance, end of period | 231 | 94 | 231 | 94 |
Land and land development loans
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 1,210 | 2,210 | 1,197 | 2,273 |
Charge-offs during period | (130) | (711) | (137) | (1,184) |
Recoveries during period | 49 | 229 | 64 | 267 |
Provision | (173) | (163) | (168) | 209 |
Balance, end of period | 956 | 1,565 | 956 | 1,565 |
Agriculture
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 241 | 138 | 228 | 172 |
Charge-offs during period | 0 | (1) | 0 | (32) |
Recoveries during period | 23 | 18 | 41 | 69 |
Provision | 428 | 52 | 423 | (2) |
Balance, end of period | 692 | 207 | 692 | 207 |
Multifamily
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 55 | 77 | 51 | 91 |
Charge-offs during period | 0 | 0 | 0 | 0 |
Recoveries during period | 0 | 0 | 0 | 0 |
Provision | (1) | (20) | 3 | (34) |
Balance, end of period | 54 | 57 | 54 | 57 |
Residential real estate
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 1,103 | 1,575 | 1,144 | 1,566 |
Charge-offs during period | (40) | (502) | (40) | (665) |
Recoveries during period | 45 | 60 | 70 | 114 |
Provision | 87 | 468 | 21 | 586 |
Balance, end of period | 1,195 | 1,601 | 1,195 | 1,601 |
Residential construction
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 35 | 62 | 24 | 59 |
Charge-offs during period | 0 | 0 | 0 | 0 |
Recoveries during period | 0 | 0 | 0 | 7 |
Provision | 9 | (58) | 20 | (62) |
Balance, end of period | 44 | 4 | 44 | 4 |
Consumer
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 206 | 258 | 202 | 295 |
Charge-offs during period | (46) | (127) | (110) | (254) |
Recoveries during period | 52 | 56 | 89 | 115 |
Provision | (9) | 14 | 22 | 45 |
Balance, end of period | 203 | 201 | 203 | 201 |
Municipal
|
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, beginning of period | 34 | 48 | 78 | 37 |
Charge-offs during period | 0 | 0 | 0 | 0 |
Recoveries during period | 0 | 0 | 0 | 0 |
Provision | (3) | (5) | (47) | 6 |
Balance, end of period | $ 31 | $ 43 | $ 31 | $ 43 |