10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 0-14549

United Security Bancshares, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	63-0843362
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)
131 West Front Street Post Office Box 249 Thomasville, AL	36784
(Address of Principal Executive Offices)	(Zip Code)

(334) 636-5424

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at August 13, 2013
Common Stock, $0.01 par value	6,023,622 shares

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

	PAGE
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Statements of Financial Condition at June 30, 2013 (Unaudited) and December 31, 2012		4
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2013 and 2012 (Unaudited)		5
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2013 and 2012 (Unaudited)		6
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012 (Unaudited)		7
Notes to Condensed Consolidated Financial Statements (Unaudited)		8
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		35
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		39
ITEM 4. CONTROLS AND PROCEDURES		41
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS		41
ITEM 1A. RISK FACTORS		41
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		42
ITEM 6. EXHIBITS		42
Signature Page		42

2

FORWARD-LOOKING STATEMENTS

Statements contained in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). In addition, United Security Bancshares, Inc. (“USBI”) and its subsidiaries (collectively, the “Company”), through its senior management, from time to time makes forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995) concerning its expected future operations and performance and other developments. The words “estimate,” “project,” “intend,” “anticipate,” “expect,” “believe” and similar expressions are indicative of forward-looking statements. Such forward-looking statements are necessarily estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and various factors could cause results to differ materially from those contemplated by such forward-looking statements. Such factors could include those identified from time to time in USBI’s Securities and Exchange Commission filings and other public announcements, including the risk factors described in Part I, Item 1A of USBI’s Annual Report on Form 10-K, for the year ended December 31, 2012. Specifically, with respect to statements relating to loan demand, growth and earnings potential and the adequacy of the allowance for loan losses for the Company, these factors include, but are not limited to, the rate of growth (or lack thereof) in the economy, the relative strength and weakness in the consumer and commercial credit sectors and in the real estate markets and collateral values. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to revise forward-looking statements to reflect circumstances or events that occur after the dates on which the forward-looking statements are made, except as required by law.

3

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in Thousands, Except Per Share Data)

	June 30, 2013			December 31, 2012
	(Unaudited)
ASSETS
Cash and Due from Banks	$	10,628		$	12,181
Interest Bearing Deposits in Banks		38,351			41,945
Total Cash and Cash Equivalents		48,979			54,126
Federal Funds Sold		5,000			5,000
Investment Securities Available-for-Sale, at fair value		102,621			92,614
Investment Securities Held-to-Maturity, at amortized cost		35,105			21,136
Federal Home Loan Bank Stock, at cost		681			936
Loans, net of allowance for loan losses of $11,635 and $19,278, respectively		312,008			337,400
Premises and Equipment, net		8,697			8,903
Cash Surrender Value of Bank-Owned Life Insurance		13,479			13,303
Accrued Interest Receivable		2,750			3,101
Investment in Limited Partnerships		836			836
Other Real Estate Owned		12,377			13,286
Other Assets		13,173			16,492
Total Assets	$	555,706		$	567,133
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	478,086		$	489,034
Accrued Interest Expense		286			413
Other Liabilities		7,867			8,401
Short-Term Borrowings		456			638
Total Liabilities		486,695			498,486
Commitments and Contingencies
Shareholders’ Equity:
Common Stock, par value $0.01 per share, 10,000,000 shares authorized; 7,327,560 shares issued; 6,023,622 shares outstanding		73			73
Surplus		9,284			9,284
Accumulated Other Comprehensive Income, net of tax		1,435			3,139
Retained Earnings		79,355			77,287
Less Treasury Stock: 1,303,938 shares at cost		(21,123	)		(21,123	)
Noncontrolling Interest		(13	)		(13	)
Total Shareholders’ Equity		69,011			68,647
Total Liabilities and Shareholders’ Equity	$	555,706		$	567,133

The accompanying notes are an integral part of these Condensed Consolidated Statements.

4

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Unaudited)				(Unaudited)
INTEREST INCOME:
Interest and Fees on Loans	$	7,697	$	8,883	$	15,607	$	17,966
Interest on Investment Securities		735		865		1,419		1,792
Total Interest Income		8,432		9,748		17,026		19,758
INTEREST EXPENSE:
Interest on Deposits		735		1,147		1,522		2,522
Interest on Borrowings		2		30		4		115
Total Interest Expense		737		1,177		1,526		2,637
NET INTEREST INCOME		7,695		8,571		15,500		17,121
PROVISION FOR LOAN LOSSES		53		468		559		2,683
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		7,642		8,103		14,941		14,438
NON-INTEREST INCOME:
Service and Other Charges on Deposit Accounts		558		603		1,148		1,231
Credit Life Insurance Income		169		222		279		341
Other Income		501		506		1,424		1,033
Total Non-Interest Income		1,228		1,331		2,851		2,605
NON-INTEREST EXPENSE:
Salaries and Employee Benefits		3,965		3,714		7,977		7,479
Occupancy Expense		500		480		961		928
Furniture and Equipment Expense		281		343		564		653
Impairment on Other Real Estate		165		30		362		2,864
Loss on Sale of Other Real Estate		260		266		704		460
Other Expense		2,005		2,607		4,300		4,886
Total Non-Interest Expense		7,176		7,440		14,868		17,270
INCOME (LOSS) BEFORE INCOME TAXES		1,694		1,994		2,924		(227	)
PROVISION FOR (BENEFIT FROM) INCOME TAXES		512		623		856		(360	)
NET INCOME	$	1,182	$	1,371	$	2,068	$	133
BASIC AND DILUTED NET INCOME PER SHARE	$	0.20	$	0.23	$	0.34	$	0.02
DIVIDENDS PER SHARE	$	—	$	—	$	—	$	—

The accompanying notes are an integral part of these Condensed Consolidated Statements.

5

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in Thousands)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013			2012		2013			2012
	(Unaudited)					(Unaudited)
Net income	$	1,182		$	1,371	$	2,068		$	133
Other comprehensive income (loss):
Change in unrealized holding gains and losses on available-for-sale securities arising during period, net of tax (benefit) of $(703), $246, $(1,022) and $205, respectively		(1,172	)		410		(1,704	)		342
Total comprehensive income	$	10		$	1,781	$	364		$	475

The accompanying notes are an integral part of these Condensed Consolidated Statements.

6

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)

	Six Months Ended
	June 30,
	2013			2012
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,068		$	133
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation		340			360
Amortization of premiums and discounts, net		486			607
Provision for loan losses		559			2,683
Impairment of OREO		362			2,864
Loss on sale of OREO		704			460
Net other operating activities		3,801			1,054
Total adjustments		6,252			8,028
Net cash provided by operating activities		8,320			8,161
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and prepayments of investment securities, available-for-sale		20,077			22,911
Proceeds from maturities and prepayments of investment securities, held-to-maturity		9,223			1,170
Proceeds from redemption of Federal Home Loan Bank stock		256			1,444
Proceeds from the sale of other real estate		1,841			1,633
Purchase of premises and equipment		(80	)		(289	)
Purchase of investment securities, available-for-sale		(33,298	)		(8,258	)
Purchase of investment securities, held-to-maturity		(23,191	)		(5,161	)
Net change in loan portfolio		22,835			19,803
Net cash (used in) provided by investing activities		(2,337	)		33,253
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in customer deposits		(10,948	)		174
Decrease in borrowings		(182	)		(19,642	)
Reissuance of treasury stock		—			58
Net cash used in financing activities		(11,130	)		(19,410	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(5,147	)		22,004
CASH AND CASH EQUIVALENTS, beginning of period		54,126			52,797
CASH AND CASH EQUIVALENTS, end of period	$	48,979		$	74,801
SUPPLEMENTAL DISCLOSURES:
Cash paid for:
Interest	$	1,653		$	2,853
Income taxes		11			82
NON-CASH TRANSACTIONS:
Other real estate acquired in settlement of loans	$	1,998		$	3,187

The accompanying notes are an integral part of these Condensed Consolidated Statements.

7

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. GENERAL

The accompanying unaudited interim condensed consolidated financial statements include the accounts of United Security Bancshares, Inc. (“USBI”) and its subsidiaries (collectively, the “Company”). USBI is the parent holding company of First United Security Bank (the “Bank” or “FUSB”). The Bank operates a finance company, Acceptance Loan Company, Inc. (“ALC”). All significant intercompany transactions and accounts have been eliminated.

The unaudited interim condensed consolidated financial statements, in the opinion of management, reflect all adjustments necessary for a fair presentation of consolidated financial position, results of operations and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. The results of operations for any interim period are not necessarily indicative of results expected for the fiscal year ending December 31, 2013. While certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes that the disclosures herein are adequate to make the information presented not misleading. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in USBI’s Annual Report on Form 10-K for the year ended December 31, 2012. The accounting policies followed by the Company are set forth in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in USBI’s Annual Report on Form 10-K for the year ended December 31, 2012. In preparing the unaudited interim condensed consolidated financial statements, management evaluated subsequent events through the date on which the unaudited interim condensed consolidated financial statements were issued.

2. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of this guidance, which involves disclosure only, did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, which updated Accounting Standards Codification (“ASC”) Topic 220, Comprehensive Income, which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not reclassified in their entirety to net income, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. ASU No. 2013-02 is effective for annual reporting periods beginning on or after December 15, 2012 and interim periods within those annual periods. The adoption of ASU No. 2013-02 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

3. NET INCOME

Basic net income per share is computed by dividing net income by the weighted average shares during the three- and six-month periods ended June 30, 2013 and 2012. Diluted net income per share for each of the three- and six-month periods ended June 30, 2013 and 2012 is computed based on the weighted average shares outstanding during the period plus the dilutive effect of all potentially dilutive instruments outstanding. There were no outstanding potentially dilutive instruments during the three- and six month periods ended June 30, 2013 or 2012, and, therefore, basic and diluted weighted average shares outstanding were the same.

8

The following table represents the basic and diluted net income per share calculations for the three- and six-month periods ended June 30, 2013 and 2012 (in thousands of dollars, except per share data):

			Weighted		Basic and
			Average		Diluted Net
	Net		Shares		Income
For the Three Months Ended:	Income		Outstanding		Per Share
June 30, 2013	$	1,182		6,023,622	$	0.20
June 30, 2012	$	1,371		6,017,732	$	0.23
For the Six Months Ended:
June 30, 2013	$	2,068		6,023,622	$	0.34
June 30, 2012	$	133		6,017,410	$	0.02

4. COMPREHENSIVE INCOME

Comprehensive income consists of net income and the change in the unrealized gains or losses on the Company’s available-for-sale securities portfolio arising during the period. In the calculation of comprehensive income, certain reclassification adjustments would be made for any sale of investment securities to avoid double counting items that are displayed as part of net income for a period that also had been displayed as part of other comprehensive income in that period or earlier periods.

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company follows the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.

ASC Topic 820 requires disclosure of fair value information about financial instruments, whether or not recognized on the face of the consolidated statements of financial condition, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather represent a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. In determining fair value, the Company uses various methods, including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

• Level 1 — Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes equity securities in banks that are publicly traded. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

• Level 2 — Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.

• Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

9

The following is a description of the valuation methodologies used for instruments measured at fair value and recognized in the accompanying consolidated statements of financial condition, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-Sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include exchange traded equities. Level 2 securities include U.S. treasury and agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. Level 2 fair values are obtained from quoted prices of securities with similar characteristics. In certain cases, where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Impaired Loans

Estimates of fair value are determined based on a variety of information, including the use of available appraisals, estimates of market value by licensed appraisers or local real estate brokers and the knowledge and experience of the Bank’s management related to values of properties in the Bank’s market areas. Management takes into consideration the type, location and occupancy of the property, as well as current economic conditions in the area in which the property is located, in assessing estimates of fair value. Accordingly, fair value estimates for impaired loans are classified as Level 3.

Foreclosed Assets

Estimates of fair values are determined based on a variety of information, including the use of available appraisals, estimates of market value by licensed appraisers or local real estate brokers and the knowledge and experience of the Bank’s senior lending officers related to values of properties in the Bank’s market areas. These officers take into consideration the type, location and occupancy of the property, as well as current economic conditions in the area in which the property is located, in assessing estimates of fair value. Accordingly, the fair value estimates for foreclosed real estate are classified as Level 3.

Financial assets measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012 are summarized below.

10

	Fair Value Measurements at June 30, 2013 Using
	Totals At June 30, 2013		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Mortgage-backed securities	$	84,976	$	—	$	84,976	$	—
Obligations of states, counties and political subdivisions		13,696		—		13,696		—
U.S. treasury securities		3,949		—		3,949		—
	Fair Value Measurements at December 31, 2012 Using
	Totals At December 31, 2012		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Mortgage-backed securities	$	77,553	$	—	$	77,553	$	—
Obligations of states, counties and political subdivisions		14,981		—		14,981		—
U.S. treasury securities		80		—		80		—

Non-Financial Assets and Non-Financial Liabilities Measured at Fair Value

The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

The Company rarely transfers assets and liabilities measured at fair value between Level 1 and Level 2 measurements. There were no such transfers during the quarter ended June 30, 2013 or the year ended December 31, 2012. Trading account assets and securities available-for-sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the best method of pricing for an individual security. Such transfers are accounted for as if they occurred at the beginning of a reporting period.

11

Financial assets measured at fair value on a nonrecurring basis at June 30, 2013 and December 31, 2012 are summarized below.

	Fair Value Measurements at June 30, 2013 Using
	Totals At June 30, 2013		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Impaired loans	$	18,042	$	—	$	—	$	18,042
Foreclosed property and other real estate		3,275		—		—		3,275
	Fair Value Measurements at December 31, 2012 Using
	Totals At December 31, 2012		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Impaired loans	$	14,956	$	—	$	—	$	14,956
Foreclosed property and other real estate		11,368		—		—		11,368

The Company is required to measure certain assets at fair value on a nonrecurring basis, including impaired loans. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the present value of estimated future cash flows using the loan’s existing rate or the fair value of collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. When an impaired loan is determined to be collateral dependent, the fair value is determined through the utilization of a third-party appraisal. It is the policy of the Company to update appraisals every 18-24 months. The types of collateral influence the frequency of obtaining updated appraisals. Management knows the market trends of collateral values well and monitors trends in sales and valuations in all of the various categories of collateral. These trends influence how often new appraisals are obtained within the 18-24 month timeframe. For example, a significant number of currently impaired loans are collateralized by residential subdivision lots. The values of this type of collateral have been volatile in recent years, and, therefore, appraisals are generally updated at the lower end of the timeframe (i.e., closer to 18 months), while timberland appraisals would be updated closer to the upper end of the timeframe (i.e., closer to 24 months), as these values have remained more stable. Any observed trend indicating reduced valuations would require updated appraisals. Based on experience, current appraisals are discounted 9% for estimated costs associated with foreclosures and costs to sell. If a loan is evaluated for impairment under ASC Topic 310-10-35, Accounting by Creditors for Impairment of a Loan, and the appraisal is outdated, a new appraisal is ordered. If the new appraisal is not received in sufficient time to assess any required impairment to meet financial reporting obligations, the old appraisal may be discounted to reflect values observed in similar properties. These discounts have ranged from 20% to 30% and are based on the most recent valuation/appraisal information available related to that particular type of loan/collateral. After the new appraisal is obtained, the analysis is updated to reflect the new valuation. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan is confirmed. Loans, net of specific allowances, subject to this evaluation amounted to $18,041,521 and $14,956,079 as of June 30, 2013 and December 31, 2012, respectively. This valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis.

During 2013, certain foreclosed assets, upon initial recognition, were measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the foreclosed asset. The fair value of a foreclosed asset, upon initial recognition, is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. Foreclosed assets measured at fair value upon initial recognition

12

totaled $1,936,664 and $2,097,440 (utilizing Level 3 valuation inputs) as of June 30, 2013 and December 31, 2012, respectively. In connection with the measurement and initial recognition of the foregoing foreclosed assets, the Company has recognized charge-offs of the allowance for possible loan losses totaling approximately $375,667 and $407,043 during the periods ended June 30, 2013 and December 31, 2012, respectively. Foreclosed assets totaling $1,338,363 and $9,270,443 (utilizing Level 3 valuation inputs) were remeasured at fair value at June 30, 2013 and December 31, 2012, respectively, resulting in impairment loss of $361,775 and $3,582,596 on other real estate owned during the periods ended June 30, 2013 and December 31, 2012, respectively.

The following table presents detailed information regarding assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2013. The table includes the valuation techniques and the significant unobservable inputs utilized. The range of each unobservable input, as well as the weighted average within the range utilized at June 30, 2013, are both included. Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

	Level 3 Significant Unobservable Input Assumptions
	Fair Value June 30, 2013		Valuation Technique	Unobservable Input	Quantitative Range of  Unobservable Inputs (Weighted- Average)
	(In Thousands of Dollars, except for Percentages)
Nonrecurring fair value measurements:
Impaired loans	$	18,042	Multiple data points, including discount to appraised value of collateral based on recent market activity	Appraisal compatibility adjustment (discount)	9% - 10% (9.5%)
Foreclosed property and other real estate	$	3,275	Discount to appraised value of property based on recent market activity for sales of similar properties	Appraisal compatibility adjustment (discount)	9% - 10% (9.5%)

Non-Recurring Fair Value Measurements Using Significant Unobservable Inputs:

Impaired loans

Impaired loans are valued based on multiple data points indicating the fair value for each loan. The primary data point for non-performing loans is the appraisal value of the underlying collateral to which a discount is applied. Management establishes this discount or comparability adjustment based on recent sales of similar property types. As liquidity in the market increases or decreases, the comparability adjustment and the resulting asset valuation are impacted.

Foreclosed property and other real estate

Foreclosed property and other real estate under contract for sale are valued based on contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet.

Financial Instruments

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, due from banks and federal funds sold: The carrying amount of cash, due from banks and federal funds sold approximates fair value.

Federal Home Loan Bank (“FHLB”): Based on the redemption provision of the FHLB, the stock has no quoted market value and is carried at cost.

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Securities: Fair values of securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on market prices of comparable instruments.

Accrued interest receivable and payable: The carrying amount of accrued interest approximates fair value.

Loans, net: For variable-rate loans, fair values are based on carrying values. Fixed-rate commercial loans, other installment loans and certain real estate mortgage loans are valued using discounted cash flows. The discount rate used to determine the present value of these loans is based on interest rates currently being charged by the Company on comparable loans as to credit risk and term.

Demand and savings deposits: The fair values of demand deposits are equal to the carrying value of such deposits. Demand deposits include non-interest bearing demand deposits, savings accounts, NOW accounts and money market demand accounts.

Time deposits: The fair values of relatively short-term time deposits are equal to their carrying values. Discounted cash flows are used to value long-term time deposits. The discount rate used is based on interest rates currently being offered by the Company on comparable deposits as to amount and term.

Short-term borrowings: These borrowings may consist of federal funds purchased, securities sold under agreements to repurchase and the floating rate borrowings from the FHLB account. Due to the short-term nature of these borrowings, fair values approximate carrying values.

Long-term debt: The fair value of this debt is estimated using discounted cash flows based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements as of June 30, 2013 and December 31, 2012.

Off-balance sheet instruments: The carrying amount of commitments to extend credit and standby letters of credit approximates fair value. The carrying amount of the off-balance sheet financial instruments is based on fees currently charged to enter into such agreements.

The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Carrying Amount		Estimated Fair  Value		Level 1		Level 2		Level 3
	(In Thousands of Dollars)
Assets:
Cash and cash equivalents	$	48,979	$	48,979	$	48,979	$	—	$	—
Investment securities available-for-sale		102,621		102,621		—		102,621		—
Investment securities held-to-maturity		35,105		34,453		—		34,453		—
Federal funds sold		5,000		5,000		5,000		—		—
Federal Home Loan Bank stock		681		681		—		681		—
Loans, net of allowance for loan losses		312,008		312,146		—		—		312,146
Liabilities:
Deposits		478,086		478,786		—		478,786		—
Short-term borrowings		456		456		—		456		—

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	December 31, 2012
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In Thousands of Dollars)
Assets:
Cash and cash equivalents	$	54,126	$	54,126	$	54,126	$	—	$	—
Investment securities available-for-sale		92,614		92,614		—		92,614		—
Investment securities held-to-maturity		21,136		21,185		—		21,185		—
Federal funds sold		5,000		5,000		5,000		—		—
Federal Home Loan Bank stock		936		936		—		936		—
Loans, net of allowance for loan losses		337,400		339,230		—		—		339,230
Liabilities:
Deposits		489,034		490,596		—		490,596		—
Short-term borrowings		638		638		—		638		—

6. INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity at June 30, 2013 and December 31, 2012 are as follows:

	Available-for-Sale
	June 30, 2013
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
Mortgage-backed securities	$	83,566	$	2,046	$	(636	)	$	84,976
Obligations of states, counties and political subdivisions		12,593		1,103		—			13,696
U.S. treasury securities		4,166		—		(217	)		3,949
Total	$	100,325	$	3,149	$	(853	)	$	102,621
	Held-to-Maturity
	June 30, 2013
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
U.S. agencies	$	35,105	$	—	$	(652	)	$	34,453
	Available-for-Sale
	December 31, 2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
Mortgage-backed securities	$	74,117	$	3,468	$	(32	)	$	77,553
Obligations of states, counties and political subdivisions		13,395		1,586		—			14,981
U.S. treasury securities		80		—		—			80
Total	$	87,592	$	5,054	$	(32	)	$	92,614

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	Held-to-Maturity
	December 31, 2012
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
U.S. agencies	$	21,136	$	56	$	(7	)	$	21,185

The scheduled maturities of investment securities available-for-sale and held-to-maturity at June 30, 2013 are presented in the following table:

	Available-for-Sale				Held-to-Maturity
	Amortized		Estimated Fair		Amortized		Estimated Fair
	Cost		Value		Cost		Value
	(In Thousands of Dollars)
Maturing within one year	$	689	$	694	$	—	$	—
Maturing after one to five years		7,260		7,644		—		—
Maturing after five to ten years		32,793		33,365		15,195		14,995
Maturing after ten years		59,583		60,918		19,910		19,458
Total	$	100,325	$	102,621	$	35,105	$	34,453

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following table reflects the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012. Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) whether the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. At June 30, 2013 and December 31, 2012, based on the aforementioned considerations, management did not record an other-than-temporary impairment on any security that was in an unrealized loss position.

	Available-for-Sale
	June 30, 2013
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
Mortgage-backed securities	$	29,615	$	(617	)	$	322	$	(19	)
U.S. treasury securities		3,869		(217	)		—		—
	$	33,484	$	(834	)	$	322	$	(19	)
	Held-to-Maturity
	June 30, 2013
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. agencies	$	34,453	$	(652	)	$	—	$	—

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	Available-for-Sale
	December 31, 2012
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. treasury securities	$	80	$	—		$	—	$	—
Mortgage-backed securities		1,173		(3	)		5,617		(29	)
	$	1,253	$	(3	)	$	5,617	$	(29	)

	Held-to-Maturity
	December 31, 2012
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. agencies	$	7,491	$	(7	)	$	—	$	—

As of June 30, 2013, two debt securities had been in a loss position for more than twelve months, and twenty-eight debt securities had been in a loss position for less than twelve months. The losses for all securities are considered to be a direct result of the effect that the current interest rate environment has on the value of debt securities and not related to the creditworthiness of the issuers. Further, the Company has the current intent and ability to retain its investments in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Therefore, the Company has not recognized any other-than-temporary impairments.

Investment securities available-for-sale with a carrying value of $64.9 million and $61.6 million at June 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes.

There were no gross gains and losses realized on sales of securities available-for-sale during the periods ended June 30, 2013 or December 31, 2012, respectively.

7. INVESTMENTS IN LIMITED PARTNERSHIPS

The Company has limited partnership investments in affordable housing projects for which it provides funding as a limited partner and receives tax credits related to its investments in the projects based on its partnership share. The Company has invested in limited partnerships of affordable housing projects, both as direct investments and investments in funds that invest solely in affordable housing projects. The Company has determined that these structures require valuation as a variable interest entity (“VIE”) under ASC Topic 810, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities. The Company consolidates one of the funds in which it has a 99.9% limited partnership interest. The resulting financial impact to the Company of the consolidation was a net increase to total assets of approximately $69,845 as of June 30, 2013. The remaining limited partnership investments are unconsolidated and are accounted for under the cost method as allowed under ASC Topic 325, Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects. The Company amortizes the excess of carrying value of the investment over its estimated residual value during the period in which tax credits are allocated to the investors. The Company’s maximum exposure to future loss related to these limited partnerships is limited to the $836,163 recorded investment.

The assets and liabilities of these partnerships consist primarily of apartment complexes and related mortgages. The Company’s carrying value approximates cost or its underlying equity in the net assets of the partnerships. Market quotations are not available for any of the aforementioned partnerships. Management has no knowledge of intervening events since the date of the partnerships’ financial statements that would have had a material effect on the Company’s consolidated financial position or results of operations.

The Company had no remaining cash commitments to these partnerships at June 30, 2013.

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8. LOANS AND ALLOWANCE FOR LOAN LOSSES

At June 30, 2013 and December 31, 2012, the composition of the loan portfolio by reporting segment and portfolio segment was as follows:

	June 30, 2013
	FUSB		ALC		Total
	(In Thousands of Dollars)
Real estate loans:
Construction, land development and other land loans	$	15,354	$	—	$	15,354
Secured by 1-4 family residential properties		35,427		29,651		65,078
Secured by multi-family residential properties		22,415		—		22,415
Secured by non-farm, non-residential properties		127,689		—		127,689
Other		792		—		792
Commercial and industrial loans		37,853		—		37,853
Consumer loans		12,251		46,813		59,064
Other loans		594		—		594
Total loans		252,375		76,464		328,839
Less: Unearned Interest		169		5,027		5,196
Allowance for loan losses		8,622		3,013		11,635
Net loans	$	243,584	$	68,424	$	312,008

	December 31, 2012
	FUSB		ALC		Total
	(In Thousands of Dollars)
Real estate loans:
Construction, land development and other land loans	$	30,635	$	—	$	30,635
Secured by 1-4 family residential properties		38,450		33,047		71,497
Secured by multi-family residential properties		24,187		—		24,187
Secured by non-farm, non-residential properties		129,235		—		129,235
Other		801		—		801
Commercial and industrial loans		42,903		—		42,903
Consumer loans		14,483		47,001		61,484
Other loans		1,037		—		1,037
Total loans	$	281,731	$	80,048	$	361,779
Less: Unearned Interest		175		4,926		5,101
Allowance for loan losses		15,765		3,513		19,278
Net loans	$	265,791	$	71,609	$	337,400

The Company grants commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 70.3% and 70.9% of the portfolio was concentrated in loans secured by real estate located primarily within a single geographic region of the United States as of June 30, 2013 and December 31, 2012, respectively.

Portfolio Segments

The Company has divided the loan portfolio into eight portfolio segments, each with different risk characteristics and methodologies for assessing the risk described as follows:

Construction, land development and other land loans – Commercial construction, land and land development loans include the development of residential housing projects, loans for the development of commercial and industrial use property and loans for the purchase and improvement of raw land. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrower.

Secured by 1–4 family residential properties – These loans include conventional mortgage loans on one-to-four family residential properties. These properties may serve as the borrower’s primary residence, vacation home or investment property. Also included in this portfolio are home equity loans and lines of credit. This type of lending, which is secured by a first or second mortgage on the borrower’s residence, allows customers to borrow against the equity in their home.

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Secured by multi-family residential properties – These are mortgage loans secured by apartment buildings.

Secured by non-farm, non-residential properties – Commercial real estate loans include loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers or other commercial property. These loans are generally guaranteed by the principals of the borrower.

Other real estate loans – Other real estate loans are loans primarily for agricultural production, secured by mortgages on farm land.

Commercial and industrial loans – Includes loans to commercial customers for use in normal business to finance working projects. These credits may be loans and lines of credit to financially strong borrowers, secured by inventories, equipment or receivables, and are generally guaranteed by the principals of the borrower.

Consumer loans – Includes a variety of secured and unsecured personal loans, including automobile loans, loans for household and personal purposes and all other direct consumer installment loans.

Other loans – Other loans comprise overdrawn checking accounts reclassified to loans and overdraft lines of credit.

Related Party Loans

In the ordinary course of business, the Bank makes loans to certain officers and directors of USBI, the Bank and ALC, including companies with which they are associated. These loans are made on the same terms as those prevailing for comparable transactions with others. Such loans do not represent more than normal risk of collectibility, nor do they present other unfavorable features. The amounts of such related party loans and commitments at June 30, 2013 and December 31, 2012 were $3,743,077 and $2,468,563, respectively. During the quarter ended June 30, 2013, new loans to these parties totaled $1,509,242, and repayments by active related parties were $235,807. During the year ended December 31, 2012, new loans to these parties totaled $310,265, and repayments by active related parties were $747,536.

Allowance for Loan Losses

The following tables present changes in the allowance for loan losses by reporting segment and loan type as of June 30, 2013 and December 31, 2012:

	FUSB
	June 30, 2013
			Commercial					Residential
	Commercial		Real Estate			Consumer		Real Estate		Other			Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	977	$	14,216		$	168	$	338	$	66		$	—	$	15,765
Charge-offs		448		6,340			116		190		2			—		7,096
Recoveries		39		27			44		3		2			—		115
Provision		534		(895	)		37		203		(41	)		—		(162	)
Ending balance		1,102		7,008			133		354		25			—		8,622
Ending balance individually evaluated for impairment		399		4,378			—		—		—			—		4,777
Ending balance collectively evaluated for impairment	$	703	$	2,630		$	133	$	354	$	25		$	—	$	3,845
Loan receivables:
Ending balance		37,853		166,250			12,251		35,427		594			—		252,375
Ending balance individually evaluated for impairment		1,263		40,614			—		306		—			—		42,183
Ending balance collectively evaluated for impairment	$	36,590	$	125,636		$	12,251	$	35,121	$	594		$	—	$	210,192

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	ALC
	June 30, 2013
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	—	$	—	$	2,733	$	780	$	—	$	—	$	3,513
Charge-offs		—		—		1,403		282		—		—		1,685
Recoveries		—		—		454		10		—		—		464
Provision		—		—		588		133		—		—		721
Ending balance		—		—		2,372		641		—		—		3,013
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	2,372	$	641	$	—	$	—	$	3,013
Loan receivables:
Ending balance		—		—		46,813		29,651		—		—		76,464
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	46,813	$	29,651	$	—	$	—	$	76,464

	FUSB & ALC
	June 30, 2013
			Commercial					Residential
	Commercial		Real Estate			Consumer		Real Estate		Other			Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	977	$	14,216		$	2,901	$	1,118	$	66		$	—	$	19,278
Charge-offs		448		6,340			1,519		472		2			—		8,781
Recoveries		39		27			498		13		2			—		579
Provision		534		(895	)		625		336		(41	)		—		559
Ending balance		1,102		7,008			2,505		995		25			—		11,635
Ending balance individually evaluated for impairment		399		4,378			—		—		—			—		4,777
Ending balance collectively evaluated for impairment	$	703	$	2,630		$	2,505	$	995	$	25		$	—	$	6,858
Loan receivables:
Ending balance		37,853		166,250			59,064		65,078		594			—	$	328,839
Ending balance individually evaluated for impairment		1,263		40,614			—		306		—			—		42,183
Ending balance collectively evaluated for impairment	$	36,590	$	125,636		$	59,064	$	64,772	$	594		$	—	$	286,656

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	FUSB
	December 31, 2012
			Commercial					Residential
	Commercial		Real Estate		Consumer			Real Estate			Other		Unallocated			Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	889	$	16,533	$	306		$	684		$	78	$	201		$	18,691
Charge-offs		1,278		3,395		199			199			16		—			5,087
Recoveries		156		606		79			24			2		—			867
Provision		1,210		472		(18	)		(171	)		2		(201	)		1,294
Ending balance		977		14,216		168			338			66		—			15,765
Ending balance individually evaluated for impairment		406		10,818		—			—			—		—			11,224
Ending balance collectively evaluated for impairment	$	571	$	3,398	$	168		$	338		$	66	$	—		$	4,541
Loan receivables:
Ending balance		42,903		184,858		14,483			38,450			1,037		—			281,731
Ending balance individually evaluated for impairment		1,085		52,893		—			325			—		—			54,303
Ending balance collectively evaluated for impairment	$	41,818	$	131,965	$	14,483		$	38,125		$	1,037	$	—		$	227,428

	ALC
	December 31, 2012
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated		Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	—	$	—	$	2,542	$	1,034	$	—	$	—	$	3,576
Charge-offs		—		—		3,249		713		—		—		3,962
Recoveries		—		—		815		40		—		—		855
Provision		—		—		2,625		419		—		—		3,044
Ending balance		—		—		2,733		780		—		—		3,513
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	2,733	$	780	$	—	$	—	$	3,513
Loan receivables:
Ending balance		—		—		47,001		33,047		—		—		80,048
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	47,001	$	33,047	$	—	$	—	$	80,048

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	FUSB & ALC
	December 31, 2012
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated			Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	889	$	16,533	$	2,848	$	1,718	$	78	$	201		$	22,267
Charge-offs		1,278		3,395		3,448		912		16		—			9,049
Recoveries		156		606		894		64		2		—			1,722
Provision		1,210		472		2,607		248		2		(201	)		4,338
Ending balance		977		14,216		2,901		1,118		66		—			19,278
Ending balance individually evaluated for impairment		406		10,818		—		—		—		—			11,224
Ending balance collectively evaluated for impairment	$	571	$	3,398	$	2,901	$	1,118	$	66	$	—		$	8,054
Loan receivables:
Ending balance		42,903		184,858		61,484		71,497		1,037		—			361,779
Ending balance individually evaluated for impairment		1,085		52,893		—		325		—		—			54,303
Ending balance collectively evaluated for impairment	$	41,818	$	131,965	$	61,484	$	71,172	$	1,037	$	—		$	307,476

Credit Quality Indicators

The Bank has established a credit risk rating system to assess and manage the risk in the loan portfolio. It establishes a uniform framework and common language for assessing and monitoring risk in the portfolio.

The following is a guide for an 8-grade system of credit risk:

1. Minimal Risk: Borrowers in this category have the lowest risk of any resulting loss. Borrowers are of the highest quality, presently and prospectively.

2. Better Than Average Risk: Borrowers in the high end of medium range between borrowers who are definitely sound and those with minor risk characteristics.

3. Moderate Risk: Borrowers in this category have little chance of resulting in a loss. This category should include the average loan, under average economic conditions.

4. Acceptable Risk: Borrowers in this category have a limited chance of resulting in a loss.

5. Special Mention (Potential Weakness): Borrowers in this category exhibit potential credit weaknesses or downward trends deserving Bank management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification.

Included in special mention assets could be workout or turnaround situations, as well as those borrowers previously rated 2-4 who have shown deterioration, for whatever reason, indicating a downgrading from the better grade. The special mention rating is designed to identify a specific level of risk and concern about a loan’s and/or borrower’s quality. Although a special mention asset has a higher probability of default than previously rated categories, its default is not imminent.

6. Substandard (Definite Weakness – Loss Unlikely): These are borrowers with defined weaknesses that jeopardize the orderly liquidation of debt. A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. There is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard.

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7. Doubtful: Borrowers classified doubtful have all the weaknesses found in substandard borrowers with the added provision that the weaknesses make collection of debt in full, based on currently existing facts, conditions and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. The possibility of loss is extremely high, but because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. Management of borrowers classified doubtful may have demonstrated a history of failing to live up to agreements, unethical or dishonest business practices and/or conviction on criminal charges.

8. Loss: Borrowers deemed incapable of repayment of unsecured debt. Loans to such borrowers are considered uncollectible and of such little value that continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off these worthless assets, even though partial recovery may be affected in the future.

The table below illustrates the carrying amount of loans by credit quality indicator at June 30, 2013:

	FUSB
	Pass 1-4		Special Mention 5		Substandard 6		Doubtful 7		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	4,317	$	1,156	$	9,881	$	—	$	15,354
Secured by 1-4 family residential properties		30,034		1,199		4,194		—		35,427
Secured by multi-family residential properties		14,182		—		8,233		—		22,415
Secured by non-farm, non-residential properties		95,810		6,263		25,616		—		127,689
Other		792		—		—		—		792
Commercial and industrial loans		34,901		1,163		1,789		—		37,853
Consumer loans		10,867		136		1,248		—		12,251
Other loans		593		—		1		—		594
Total	$	191,496	$	9,917	$	50,962	$	—	$	252,375

	ALC
	Performing		Nonperforming		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	28,824	$	827	$	29,651
Consumer loans		45,737		1,076		46,813
Total	$	74,561	$	1,903	$	76,464

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The table below illustrates the carrying amount of loans by credit quality indicator at December 31, 2012:

	FUSB
	Pass 1-4		Special Mention 5		Substandard 6		Doubtful 7		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	12,653	$	1,235	$	16,747	$	—	$	30,635
Secured by 1-4 family residential properties		31,772		1,546		5,132		—		38,450
Secured by multi-family residential properties		10,776		3,132		10,279		—		24,187
Secured by non-farm, non-residential properties		90,139		8,630		30,466		—		129,235
Other		801		—		—		—		801
Commercial and industrial loans		40,607		419		1,877		—		42,903
Consumer loans		13,394		188		901		—		14,483
Other loans		1,036		—		1		—		1,037
Total	$	201,178	$	15,150	$	65,403	$	—	$	281,731

	ALC
	Performing		Nonperforming		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	32,036	$	1,011	$	33,047
Consumer loans		46,175		826		47,001
Total	$	78,211	$	1,837	$	80,048

The following table provides an aging analysis of past due loans by class at June 30, 2013:

	FUSB
	As of June 30, 2013
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	4,141	$	4,141	$	11,213	$	15,354	$	—
Secured by 1-4 family residential properties		379		116		1,318		1,813		33,614		35,427		—
Secured by multi-family residential properties		767		—		1,455		2,222		20,193		22,415		—
Secured by non-farm, non-residential properties		561		165		4,186		4,912		122,777		127,689		—
Other		—		—		—		—		792		792		—
Commercial and industrial loans		816		60		45		921		36,932		37,853		—
Consumer loans		227		4		56		287		11,964		12,251		—
Other loans		—		—		—		—		594		594		—
Total	$	2,750	$	345	$	11,201	$	14,296	$	238,079	$	252,375	$	—

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	ALC
	As of June 30, 2013
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by 1-4 family residential properties		303		175		768		1,246		28,405		29,651		670
Secured by multi-family residential properties		—		—		—		—		—		—		—
Secured by non-farm, non-residential properties		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—		—
Consumer loans		947		484		1,032		2,463		44,350		46,813		1,004
Other loans		—		—		—		—		—		—		—
Total	$	1,250	$	659	$	1,800	$	3,709	$	72,755	$	76,464	$	1,674

The following table provides an aging analysis of past due loans by class at December 31, 2012:

	FUSB
	As of December 31, 2012
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	456	$	1,126	$	10,329	$	11,911	$	18,724	$	30,635	$	—
Secured by 1-4 family residential properties		1,027		572		1,106		2,705		35,745		38,450		—
Secured by multi-family residential properties		—		—		2,884		2,884		21,303		24,187		—
Secured by non-farm, non-residential properties		210		32		4,930		5,172		124,063		129,235		—
Other		—		—		—		—		801		801		—
Commercial and industrial loans		430		59		480		969		41,934		42,903		—
Consumer loans		407		89		66		562		13,921		14,483		—
Other loans		—		—		—		—		1,037		1,037		—
Total	$	2,530	$	1,878	$	19,795	$	24,203	$	257,528	$	281,731	$	—

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	ALC
	As of December 31, 2012
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by 1-4 family residential properties		348		173		1,075		1,596		31,451		33,047		851
Secured by multi-family residential properties		—		—		—		—		—		—		—
Secured by non-farm, non-residential properties		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—		—
Consumer loans		989		609		1,159		2,757		44,244		47,001		720
Other loans		—		—		—		—		—		—		—
Total	$	1,337	$	782	$	2,234	$	4,353	$	75,695	$	80,048	$	1,571

The following table provides an analysis of nonaccruing loans by class at June 30, 2013 and December 31, 2012:

	Loans on Nonaccrual Status
	June 30, 2013		December 31, 2012
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	5,400	$	11,456
Secured by 1-4 family residential properties		2,057		2,441
Secured by multi-family residential properties		1,455		2,884
Secured by non-farm, non-residential properties		5,375		5,809
Commercial and industrial loans		368		822
Consumer loans		192		206
Total loans	$	14,847	$	23,618

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Impaired Loans

At June 30, 2013, the carrying amount of impaired loans consisted of the following:

	June 30, 2013
			Unpaid
	Carrying		Principal		Related
	Amount		Balance		Allowances
	(In Thousands of Dollars)
Impaired loans with no related allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	5,357	$	5,357	$	—
Secured by 1-4 family residential properties		306		306		—
Secured by multi-family residential properties		2,367		2,367		—
Secured by non-farm, non-residential properties		10,740		10,740		—
Commercial and industrial		594		594		—
Total loans with no related allowance recorded	$	19,364	$	19,364	$	—
Impaired loans with an allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	3,671	$	3,671	$	1,057
Secured by multi-family residential properties		5,866		5,866		1,726
Secured by non-farm, non-residential properties		12,613		12,613		1,595
Commercial and industrial		669		669		399
Total loans with an allowance recorded	$	22,819	$	22,819	$	4,777
Total impaired loans
Loans secured by real estate:
Construction, land development and other land loans	$	9,028	$	9,028	$	1,057
Secured by 1-4 family residential properties		306		306		—
Secured by multi-family residential properties		8,233		8,233		1,726
Secured by non-farm, non-residential properties		23,353		23,353		1,595
Commercial and industrial		1,263		1,263		399
Total impaired loans	$	42,183	$	42,183	$	4,777

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At December 31, 2012, the carrying amount of impaired loans consisted of the following:

	December 31, 2012
			Unpaid
	Carrying		Principal		Related
	Amount		Balance		Allowances
	(In Thousands of Dollars)
Impaired loans with no related allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	2,645	$	2,645	$	—
Secured by 1-4 family residential properties		325		325		—
Secured by multi-family residential properties		3,027		3,027		—
Secured by non-farm, non-residential properties		21,471		21,471		—
Commercial and industrial		655		655		—
Total loans with no related allowance recorded	$	28,123	$	28,123	$	—
Impaired loans with an allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	12,658	$	12,658	$	7,453
Secured by multi-family residential properties		7,252		7,252		1,865
Secured by non-farm, non-residential properties		5,840		5,840		1,500
Commercial and industrial		430		430		406
Total loans with an allowance recorded	$	26,180	$	26,180	$	11,224
Total impaired loans
Loans secured by real estate:
Construction, land development and other land loans	$	15,303	$	15,303	$	7,453
Secured by 1-4 family residential properties		325		325		—
Secured by multi-family residential properties		10,279		10,279		1,865
Secured by non-farm, non-residential properties		27,311		27,311		1,500
Commercial and industrial		1,085		1,085		406
Total impaired loans	$	54,303	$	54,303	$	11,224

The average net investment in impaired loans and interest income recognized and received on impaired loans at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Average Recorded		Interest Income		Interest Income
	Investment		Recognized		Received
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	13,155	$	94	$	95
Secured by 1-4 family residential properties		313		4		4
Secured by multi-family residential properties		9,831		209		199
Secured by non-farm, non-residential properties		25,212		573		535
Commercial and industrial		1,050		33		32
Total impaired loans	$	49,561	$	913	$	865

	December 31, 2012
	Average Recorded		Interest Income		Interest Income
	Investment		Recognized		Received
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	18,283	$	546	$	598
Secured by 1-4 family residential properties		146		10		10
Secured by multi-family residential properties		4,942		483		455
Secured by non-farm, non-residential properties		29,627		1,452		1,477
Commercial and industrial		1,222		38		42
Total impaired loans	$	54,220	$	2,529	$	2,582

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Loans on which the accrual of interest has been discontinued amounted to $14,847,248 and $23,618,330 at June 30, 2013 and December 31, 2012, respectively. If interest on those loans had been accrued, such income would have approximated $380,877 and $1,058,377 for the quarter ended June 30, 2013 and the year ended December 31, 2012, respectively. Interest income actually recorded on those loans amounted to $20,626 and $157,601 for the quarter ended June 30, 2013 and the year ended December 31, 2012, respectively. Accruing loans past due 90 days or more amounted to $1,673,624 and $1,570,548 at June 30, 2013 and December 31, 2012, respectively.

Troubled Debt Restructurings

Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included and treated with all other nonaccrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings. Generally, restructured loans remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on nonaccrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Based on the above, the Company had $8,332,305 and $12,397,049 of non-accruing loans that were restructured and remained on nonaccrual status at June 30, 2013 and December 31, 2012, respectively.

The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio as of June 30, 2013 and December 31, 2012, as well as the recorded investment and unpaid principal balance as of June 30, 2013 and December 31, 2012:

	June 30, 2013						December 31, 2012
			Pre-Modification		Post-				Pre-Modification		Post-
			Outstanding		Modification				Outstanding		Modification
	Number		Principal		Principal		Number		Principal		Principal
	of Loans		Balance		Balance		of Loans		Balance		Balance
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans		8	$	12,580	$	6,280		10	$	11,267	$	9,988
Secured by 1-4 family residential properties		5		449		418		4		596		586
Secured by non-farm, non-residential properties		8		1,801		1,508		6		1,811		1,586
Commercial loans		3		371		345		4		380		356
Total		24	$	15,201	$	8,551		24	$	14,054	$	12,516

The following table provides the number of loans modified in a troubled debt restructuring that have subsequently defaulted, by loan portfolio, as of June 30, 2013 and December 31, 2012:

	June 30, 2013				December 31, 2012
	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
	(In Thousands of Dollars)
Troubled debt restructurings that have subsequently defaulted:
Construction, land development and other land loans		—	$	—		6	$	7,062
Secured by non-farm, non-residential properties		5		1,210		2		433
Commercial		—		—		2		68
Total		5	$	1,210		10	$	7,563

Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure, principal reduction or some combination of these concessions. During the quarter ended June 30, 2013 and the year ended December 31, 2012, restructured loan modifications of loans secured by real estate, commercial and industrial loans primarily included maturity date extensions and payment schedule modifications.

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The change in troubled debt restructuring from December 31, 2012 to June 30, 2013 was as follows:

	June 30, 2013		December 31, 2012		Change
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	6,280	$	9,988	$	(3,708	)
Secured by 1-4 family residential properties		418		586		(168	)
Secured by non-farm, non-residential properties		1,508		1,586		(78	)
Commercial and industrial loans		345		356		(11	)
Total	$	8,551	$	12,516		(3,965	)

All loans $500,000 and over, modified in a troubled debt restructuring and rated substandard or lower, are evaluated for impairment. The nature and extent of impairment of restructured loans, including those that have experienced a subsequent payment default, is considered in the determination of an appropriate level of allowance for loan losses. This evaluation resulted in an allowance for loan losses of $1,291,911 and $6,322,593 at June 30, 2013 and December 31, 2012, respectively.

9. OTHER REAL ESTATE OWNED

Other real estate and certain other assets acquired in foreclosure are reported at the lower of the investment in the loan or fair value of the property less estimated costs to sell. The following table summarizes foreclosed property activity for the six months ended June 30, 2013 and 2012:

	June 30, 2013
	FUSB			ALC			Total
	(In Thousands of Dollars
Beginning balance	$	11,089		$	2,197		$	13,286
Transfers from loans		1,735			263			1,998
Sales proceeds		(1,011	)		(830	)		(1,841	)
Gross gains		51			21			72
Gross losses		(109	)		(667	)		(776	)
Net losses		(58	)		(646	)		(704	)
Impairment		(153	)		(209	)		(362	)
Ending balance	$	11,602		$	775		$	12,377

	June 30, 2012
	FUSB			ALC			Total
	(In Thousands of Dollars)
Beginning balance	$	12,607		$	4,168		$	16,775
Transfers from loans		2,732			456			3,188
Sales proceeds		(697	)		(938	)		(1,635	)
Gross gains		9			27			36
Gross losses		(43	)		(453	)		(496	)
Net losses		(34	)		(426	)		(460	)
Impairment		(2,604	)		(259	)		(2,863	)
Ending balance	$	12,004		$	3,001		$	15,005

Valuation adjustments are primarily recorded in other non-interest expense; adjustments are also recorded as a charge to the allowance for loan losses if incurred within 60 days after the date of transfer from loans. Valuation adjustments are primarily post-foreclosure write-downs that are a result of declining property values based on updated appraisals or other indications of value, such as offers to purchase.

10. SHORT-TERM BORROWINGS

Short-term borrowings consist of federal funds purchased and securities sold under repurchase agreements. Federal funds purchased generally mature within one to four days. There were no such amounts outstanding at June 30, 2013 or December 31, 2012.

30

Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The Company monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements at June 30, 2013 and December 31, 2012 were $455,943 and $638,000, respectively.

At June 30, 2013, the Bank had $17.8 million in available federal fund lines from correspondent banks.

11. LONG-TERM DEBT

The Company uses FHLB advances as an alternative to funding sources with similar maturities, such as certificates of deposit or other deposit programs. These advances generally offer more attractive rates when compared to other mid-term financing options. They are also flexible, allowing the Company to quickly obtain the necessary maturities and rates that best suit its overall asset/liability strategy. At June 30, 2013 and December 31, 2012, no advances were outstanding, and no assets were pledged.

At June 30, 2013, the Bank had $166.7 million in available credit from the FHLB.

12. INCOME TAXES

The Company files a consolidated income tax return with the federal government and the state of Alabama. ALC files a Mississippi state income tax return related to operations from its Mississippi branches. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and the states in which it files for the years ended December 31, 2009 through 2012.

As of June 30, 2013, the Company had no unrecognized tax benefits related to federal or state income tax matters and does not anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to June 30, 2013. As of June 30, 2013, the Company had accrued no interest and no penalties related to uncertain tax positions.

The consolidated tax expense (benefit) differed from the amount computed by applying the federal statutory income tax rate of 34.0%, as described in the following table:

	June 30, 2013			June 30, 2012
	(In Thousands of Dollars)
Income tax expense (benefit) at federal statutory rate	$	994		$	(77	)
Increase (decrease) resulting from:
Tax-exempt interest		(193	)		(175	)
State income tax expense (benefit), net of federal income taxes		114			(24	)
Other		(59	)		(84	)
Total	$	856		$	(360	)

The Company’s determination of the realization of the net deferred tax asset is based on its assessment of all available positive and negative evidence. The Company is currently in a three-year cumulative loss position, which represents negative evidence. As of June 30, 2013, of the $7.5 million net deferred tax asset, $4.4 million relates to the provision for loan losses, $1.8 million relates to impairment of other real estate owned (“OREO”) and $1.6 million resulted from deferred compensation. As of December 31, 2012, of the $9.5 million net deferred tax asset, $7.3 million relates to the provision for loan losses, $2.3 million relates to impairment of OREO and $1.5 million resulted from deferred compensation.

At June 30, 2013, positive evidence supporting the realization of the deferred tax asset included a strong earnings history, exclusive of loan loss provisions and other real estate write-downs, which created the most significant portion of the deferred asset. The majority of these provisions and write-downs resulted from one type of loan – real estate development. The Company believes that impaired loans of this type have been identified and adequately reserved. Management has projected taxable income over the next five years, resulting from reduced provisions for loan losses and write-downs of OREO. Except in unusual circumstances, the Company no longer invests in these types of loans.

Along with the taxable income in 2012 and the first and second quarters of 2013, the Company has projected future taxable income over the next five tax years, although there can be no assurance that such income will be realized due

31

to unanticipated changes in economic, competitive and other factors. Further positive evidence includes the Company’s strong capital position and history of significant pre-tax earnings, which the Company believes outweighs the negative evidence of recent pre-tax losses. Accordingly, a valuation allowance has not been established at June 30, 2013.

13. SEGMENT REPORTING

Under ASC Topic 280, Segment Reporting, certain information is disclosed for the two reportable operating segments of the Company. The reportable segments were determined using the internal management reporting system. These segments are composed of USBI’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in USBI’s Annual Report on Form 10-K for the period ended December 31, 2012. The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The results for the two reportable segments of the Company are included in the following table:

						All
	FUSB			ALC		Other		Eliminations			Consolidated
	(In Thousands of Dollars)
For the three months ended June 30, 2013
Net interest income	$	4,181		$	3,511	$	3	$	—		$	7,695
Provision for loan losses		(200	)		253		—		—			53
Total non-interest income		929			349		1,437		(1,487	)		1,228
Total non-interest expense		4,666			2,529		199		(218	)		7,176
Income before income taxes		644			1,078		1,241		(1,269	)		1,694
Provision for income taxes		96			415		1		—			512
Net income	$	548		$	663	$	1,240	$	(1,269	)	$	1,182
Other significant items:
Total assets	$	557,364		$	71,769	$	75,355	$	(148,782	)	$	555,706
Total investment securities		137,646			—		80		—			137,726
Total loans, net		299,497			68,424		—		(55,913	)		312,008
Investment in subsidiaries		784			—		70,136		(70,915	)		5
Fixed asset additions		33			7		—		—			40
Depreciation expense		137			38		—		—			175
Total interest income from external customers		4,123			4,309		—		—			8,432
Total interest income from affiliates		798			—		3		(801	)		—
For the six months ended June 30, 2013:
Net interest income	$	8,516		$	6,979	$	5	$	—		$	15,500
Provision for loan losses		(162	)		721		—		—			559
Total non-interest income		2,326			685		2,511		(2,671	)		2,851
Total non-interest expense		9,285			5,661		361		(439	)		14,868
Income before income taxes		1,719			1,282		2,155		(2,232	)		2,924
Provision for income taxes		358			496		2		—			856
Net income	$	1,361		$	786	$	2,153	$	(2,232	)	$	2,068
Other significant items:
Fixed asset additions	$	63		$	17	$	—	$	—		$	80
Depreciation expense		261			79		—		—			340
Total interest income from external customers		8,398			8,628		—		—			17,026
Total interest income from affiliates		1,649			—		4		(1,653	)		—

32

	FUSB			ALC		All Other		Eliminations			Consolidated
	(Dollars in Thousands)
For the three months ended June 30, 2012:
Net interest income	$	4,946		$	3,620	$	5	$	—		$	8,571
Provision for loan losses		20			448		—		—			468
Total non-interest income		957			334		1,666		(1,626	)		1,331
Total non-interest expense		4,707			2,696		219		(182	)		7,440
Income before income taxes		1,176			810		1,452		(1,444	)		1,994
Provision for income taxes		308			314		1		—			623
Net income	$	868		$	496	$	1,451	$	(1,444	)	$	1,371
Other significant items:
Total assets	$	604,227		$	82,382	$	72,921	$	(156,245	)	$	603,285
Total investment securities		112,545			—		75		—			112,620
Total loans, net		347,404			75,549		—		(67,542	)		355,411
Investment in subsidiaries		1,286			—		67,645		(68,926	)		5
Fixed asset additions		58			17		—		—			75
Depreciation expense		141			39		—		—			180
Total interest income from external customers		5,153			4,595		—		—			9,748
Total interest income from affiliates		975			—		5		(980	)		—
For the six months ended June 30, 2012:
Net interest income	$	9,932		$	7,180	$	9	$	—		$	17,121
Provision for loan losses		1,523			1,160		—		—			2,683
Total non-interest income		1,970			658		644		(667	)		2,605
Total non-interest expense		11,703			5,563		369		(365	)		17,270
Income (loss) before income taxes		(1,324	)		1,115		284		(302	)		(227	)
Provision for (benefit from) income taxes		(796	)		433		3		—			(360	)
Net income (loss)	$	(528	)	$	682	$	281	$	(302	)	$	133
Other significant items:
Fixed asset additions	$	112		$	177	$	—	$	—		$	289
Depreciation expense		282			78		—		—			360
Total interest income from external customers		10,594			9,164		—		—			19,758
Total interest income from affiliates		1,983			—		9		(1,992	)		—

33

14. GUARANTEES, COMMITMENTS AND CONTINGENCIES

The Bank’s exposure to credit loss in the event of nonperformance by the other party for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making these commitments as it does for on-balance sheet instruments. For interest rate swap transactions and commitments to purchase or sell securities for forward delivery, the contract or notional amounts do not represent exposure to credit loss. The Bank controls the credit risk of these derivative instruments through credit approvals, limits and monitoring procedures. Certain derivative contracts have credit risk for the carrying value plus the amount to replace such contracts in the event of counterparty default. All of the Bank’s financial instruments are held for risk management and not for trading purposes. During the quarters ended June 30, 2013 and 2012, there were no credit losses associated with derivative contracts.

In the normal course of business, there are outstanding commitments and contingent liabilities, such as commitments to extend credit, letters of credit and others, that are not included in the consolidated financial statements. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the condensed consolidated financial statements. A summary of these commitments and contingent liabilities is presented below:

	June 30, 2013		December 31, 2012
	(Dollars in Thousands)
Standby Letters of Credit	$	1,022	$	1,092
Commitments to Extend Credit	$	29,482	$	32,123

Standby letters of credit are contingent commitments issued by the Bank generally to guarantee the performance of a customer to a third party. The Bank has recourse against the customer for any amount that it is required to pay to a third party under a standby letter of credit. Revenues are recognized over the lives of the standby letters of credit. The potential amount of future payments that the Bank could be required to make under its standby letters of credit at June 30, 2013 and December 31, 2012 was $1.0 million, representing the Bank’s total credit risk.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties.

Commitments to purchase securities for delayed delivery require the Bank to purchase a specified security at a specified price for delivery on a specified date. Similarly, commitments to sell securities for delayed delivery require the Bank to sell a specified security at a specified price for delivery on a specified date. Market risk arises from potential movements in security values and interest rates between the commitment and delivery dates. At June 30, 2013 and December 31, 2012, there were no outstanding commitments to purchase and sell securities for delayed delivery.

Litigation

On September 27, 2007, Malcomb Graves Automotive, LLC (“Graves Automotive”), Malcomb Graves and Tina Graves filed a lawsuit in the Circuit Court of Shelby County, Alabama against USBI, the Bank, ALC and their respective directors and officers seeking an unspecified amount of compensatory and punitive damages. A former employee of ALC, Corey Mitchell, was named as a co-defendant, and ALC and the Bank filed a crossclaim against him seeking, among other relief, defense and indemnification for any damages suffered in the underlying lawsuit. The underlying complaint alleged that the defendants committed fraud in misrepresenting to Graves Automotive the amounts that Graves Automotive owed on certain loans and failing to credit Graves Automotive properly for certain loans. The defendants moved to compel arbitration, and the trial court denied the defendants’ motion. The defendants appealed this decision, and, on September 29, 2010, the Alabama Supreme Court affirmed the trial court’s denial of defendants’ motion. Following the return of the case to the active docket, on November 30, 2010, ALC and the Bank moved to dismiss the lawsuit. In response to this motion to dismiss, on June 15, 2011, the Circuit Court dismissed all claims against USBI, the Bank and their respective directors and officers and all claims that were brought by Malcomb Graves and Tina Graves in their individual capacities. The Circuit Court also dismissed Graves Automotive’s claims for conversion and negligent supervision against ALC and ordered Graves

34

Automotive to re-plead its fraud allegations against ALC with more particularity. On September 15, 2011, Graves Automotive filed a third amended complaint in response to the Circuit Court’s June 15, 2011 order. In its third amended complaint, Graves Automotive asserted claims against ALC for breach of contract, fraud, unjust enrichment and conversion. ALC moved to dismiss the third amended complaint on many of the same grounds as set forth in its previous motion to dismiss. On October 13, 2011, the Circuit Court dismissed Graves Automotive’s conversion claim and again ordered Graves Automotive to re-plead its fraud claims with more particularity, this time within 60 days. On December 12, 2011, Graves Automotive filed its fourth amended complaint, this time asserting only two counts, breach of contract and unjust enrichment. Despite removing the fraud claims, the fourth amended complaint still requests punitive damages. On January 11, 2012, ALC filed a motion to dismiss the fourth amended complaint and to strike Graves Automotive’s request for punitive damages. This motion was heard on November 27, 2012, and the Circuit Court struck the punitive damages claim but allowed the breach of contract and unjust enrichment claims to go forward. Because the case has been at a virtual standstill since the November 27, 2012 hearing, ALC recently requested a status conference with the Circuit Court. The Circuit Court granted this request and set the case for a status conference on September 24, 2013. ALC also recently made a nominal settlement offer to avoid the costs associated with additional litigation. ALC has yet to receive a response to this offer. Although the ultimate outcome of this matter remains unknown, ALC continues to deny the allegations against it in the underlying lawsuit with respect to the remaining claims and intends to vigorously defend itself in this matter.

On February 17, 2011, Wayne Allen Russell, Jr. (“Russell”) filed a lawsuit in the Circuit Court of Tuscaloosa County, Alabama against the Bank and Bill Morgan, who served as the Bank’s Business Development Officer. The allegations in the lawsuit relate to a mortgage on a parcel of real estate, executed by Russell in favor of the Bank as security for a loan, and certain related transactions, including foreclosure proceedings executed by the Bank. Additionally, on June 17, 2011, Mr. Russell’s wife, Rebecca Russell, in response to a lawsuit filed against Mrs. Russell by the Bank, filed a counterclaim against the Bank seeking compensatory and punitive damages, asserting that she was induced to mortgage a rental dwelling owned by her, the proceeds of which were paid upon certain obligations owed to the Bank by her husband, and that the Bank had orally agreed to refinance her loan as a part of an alleged refinancing promise by the Bank with respect to the obligations of Mr. Russell. On October 29, 2012, the Court granted summary judgment in favor of the Bank and Mr. Morgan with respect to all claims asserted in the consolidated lawsuits, and a subsequent motion to alter, amend or vacate filed by Mr. and Mrs. Russell was denied by operation of law. On March 25, 2013, Mr. and Mrs. Russell filed a Notice of Appeal to the Supreme Court of Alabama. Although the ultimate outcome of this matter remains unknown, the Bank believes that it should prevail on appeal, that the granting of summary judgment by the lower court will be upheld and that any contrary result would not have a material adverse effect on the Company’s consolidated financial statements or results of operations.

On or about June 1, 2012, a former employee filed a complaint against the Bank with the Occupational Safety and Health Administration (“OSHA”) alleging violations of Section 806 of the Corporate and Criminal Fraud Accountability Act, 18 U.S.C. § 1514A (“Section 806”), and Section 1057 of the Consumer Financial Protection Act, 12 U.S.C. § 5567, in connection with his separation from the Bank in April 2012. Based on its investigation, OSHA concluded it had no reasonable cause to believe the statutes were violated. As was his right, however, the former employee timely requested a hearing before an Administrative Law Judge (“ALJ”) and filed an amended complaint in that forum. The Bank filed a motion to dismiss the amended complaint (in lieu of an answer), and the motion has been granted as to all claims other than the claim alleging a violation of Section 806. The ALJ has suspended all discovery and is allowing the former employee to pursue, by subpoena to the Federal Deposit Insurance Corporation and the Alabama State Banking Department, the confidential supervisory information, if any, that relates to the Section 806 claim. This discovery from third-party agencies will run its course before other discovery by the parties is resumed. Although the Bank believes that the remaining Section 806 claim is wholly without merit and that it will be able to demonstrate several meritorious defenses, it is too early to assess the likelihood of a resolution of this matter or the possibility of an unfavorable outcome.

USBI and its subsidiaries also are parties to other litigation, and the Company intends to vigorously defend itself in all such litigation. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such other litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and consolidated financial information are presented to aid in an understanding of the current consolidated financial position, changes in financial position and results of operations of United Security Bancshares, Inc. (“USBI”). USBI is the parent holding company of First United Security Bank (the “Bank” or “FUSB”). The Bank operates a finance company, Acceptance Loan Company, Inc. (“ALC”). USBI has no operations of any consequence other than the ownership of its subsidiaries.

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The accounting principles and reporting policies of USBI and its subsidiaries (collectively, “the Company”), and the methods of applying these principles, conform with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the financial services industry. Critical accounting policies relate to securities, loans, allowance for loan losses, derivatives and hedging. A description of these estimates, which significantly affect the determination of consolidated financial position, results of operations and cash flows, is set forth in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in USBI’s Annual Report on Form 10-K for the year ended December 31, 2012.

The emphasis of this discussion is a comparison of assets, liabilities and shareholders’ equity as of June 30, 2013 to year-end 2012, while comparing income and expense for the three- and six-month periods ended June 30, 2013 and 2012.

All yields and ratios presented and discussed herein are based on the accrual basis and not on the tax-equivalent basis, unless otherwise indicated.

This information should be read in conjunction with the Company’s unaudited consolidated financial statements and related notes appearing elsewhere in this report and Management’s Discussion and Analysis of Financial Condition and Results of Operations appearing in USBI’s Annual Report on Form 10-K for the year ended December 31, 2012.

COMPARING THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2013 TO THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2012

Net income for the Company in the second quarter of 2013 was $1.2 million, compared to net income for the Company of $1.4 million for the second quarter of 2012, resulting in a decrease of basic net income per share from $0.23 per share during the second quarter of 2012 to $0.20 per share in the same quarter of 2013.

For the three-month period ended June 30, 2013, the Bank had net income of $548,000, compared to net income of $868,000 for the same quarter of 2012. The decline in income for the second quarter of 2013 compared to the same quarter of 2012 was primarily the result of a $1.2 million decline in interest income, offset somewhat by a $442,000 decrease in interest expense. The decline in interest income resulted from an overall decrease in the average volume and yield on loans. For the six-month period ended June 30, 2013, the Bank had net income of $1.4 million, compared to net loss of $528,000 for the same period in 2012. For the six-month period, the increase in net income for the Bank resulted primarily from lower impairment charges on other real estate owned (“OREO”) and lower provisions for loan losses.

Net income for ALC for the three-month period ended June 30, 2013 was $663,000, compared to $496,000 for the same quarter of 2012. For the six-month period ended June 30, 2013, net income for ALC was $786,000, compared to $682,000 for the same period in 2012. Improvement in both periods for ALC resulted from lower provisions for loan losses.

Interest income for the Company in the 2013 second quarter decreased $1.3 million, or 13.5%, compared to the second quarter of 2012. For the six months ended June 30, 2013, interest income decreased $2.7 million, or 13.8%, compared with the same period in 2012. The decrease in interest income during these periods was primarily due to a decrease in interest earned on loans resulting from an overall decrease in the average volume of loans and the decrease in the average yield on loans and investment securities. Interest income at the Bank for the 2013 second quarter decreased $1.1 million, or 20.0%, compared to the second quarter of 2012. For the six months ended June 30, 2013, interest income decreased $2.2 million, or 20.7%, compared with the same period of 2012. Interest income at ALC for the second quarter of 2013 decreased $286,000, or 6.2%, compared to the second quarter of 2012. For the six months ended June 30, 2013, interest income at ALC decreased $535,000, or 5.8%, compared with the same period of 2012. The decreases in interest income at the Bank and ALC were due to an overall decrease in the average volume of loans and a decrease in yield on loans. Interest income on investment securities decreased due to the decrease in the average yield of investment securities. Loan demand continues to be weak due to continuing challenging economic conditions in the Company’s market area.

Interest expense for the Company in the 2013 second quarter decreased $440,000, or 37.4%, compared to the second quarter of 2012. Interest expense decreased $1.1 million, or 42.1%, to $1.5 million for the first six months of 2013, compared to $2.6 million for the first six months of 2012. These decreases resulted from decreased volume of certificates of deposit, as well as lower interest rates paid on certificates of deposit. As longer term certificates of deposit mature, they reprice at lower rates, as rates on deposits remain at record historical lows.

Net interest income for the Company decreased $876,000, or 10.2%, for the second quarter of 2013, and decreased $1.6 million, or 9.5%, for the first six months of 2013, compared to the same periods in 2012, respectively. The net interest margin declined from 6.09% for the six months ended June 30, 2012 to 6.02% for the six months ended June

36

30, 2013, and from 6.16% for the second quarter of 2012 to 5.97% for the second quarter of 2013. Loan and investment yields declined for the three- and six-month periods ended June 30, 2013, compared to the same periods in 2012. The cost of funds declined due to a decline in interest rates paid on interest bearing deposits. Asset yields and funds costs have stabilized, and the net interest margin is expected to remain near current levels until the Federal Reserve adjusts rates.

The provision for loan losses for the Company was $53,000, or 0.06% annualized of average loans, in the second quarter of 2013, compared to $468,000, or 0.5% annualized of average loans, in the second quarter of 2012. For the six months ended June 30, 2013, the provision for loan losses decreased to $559,000, compared to $2.7 million for the same period in 2012. The annualized provision as a percent of average loans was 0.33% for the first six months of 2013, compared to 1.4% for the same period in 2012. Net charge-offs at the Company level were $5.2 million for the 2013 second quarter and $8.2 million for the first six months of 2013, compared to $1.1 million and $4.8 million for the same periods in 2012. The substantial increase in net charge-offs resulted from the actual charge-down of several large commercial real estate loans at the Bank that had been identified as non-performing, with the appropriate allowance allocated, and no additional provision was required.

The provision for loan losses at the Bank was a negative provision of $(200,000) for the 2013 second quarter and $(162,000) for the six months ended June 30, 2013. Net charge-offs increased $4.2 million to $4.7 million for the second quarter of 2013 and increased $3.6 million to $7.0 million for the six months ended June 30, 2013, when compared to the same periods in 2012.

The provision for loan losses at ALC decreased to $253,000 for the second quarter of 2013, compared to $448,000 for the same period of 2012. For the six-month period ended June 30, 2013, the provision was $721,000, compared to $1.2 million for the same period in 2012. Net charge-offs for the second quarter of 2013 were $562,000, compared to $620,000 for the second quarter of 2012. For the six-month period ended June 30, 2013, net charge-offs were $1.2 million, compared to $1.4 million for the first six months of 2012.

Total non-interest income for the Company decreased $103,000, or 7.7%, for the second quarter of 2013 and increased $246,000, or 9.4%, for the first six months of 2013. Service charges on deposit accounts decreased $45,000 for the second quarter of 2013, and decreased $83,000 for the six-month period ended June 30, 2013, when compared to the same periods in 2012, primarily due to decreased fees generated from customer overdrafts and non-sufficient funds in both quarters of 2013. Other income increased $391,000 for the six-month period ended June 30, 2013 compared to the same period in 2012. This increase is attributable to a non-recurring prepayment penalty of $484,000 from the early payoff of a mortgage-backed pool received in the first quarter of 2013.

Total non-interest expense decreased $264,000, or 3.5%, for the 2013 second quarter and decreased $2.4 million, or 13.9%, for the six months ended June 30, 2013, compared to the same periods in 2012. Salary and employee benefits increased $251,000 when comparing the second quarter of 2013 to the second quarter of 2012 and increased $498,000 for the six months ended June 30, 2013 compared to the same period in 2012. For the 2013 second quarter, impairment on other real estate increased $135,000, and realized loss on sale of OREO increased $6,000. For the six months ended June 30, 2013, impairment on OREO decreased $2.5 million, and realized loss on sale of OREO increased $245,000. Management was able to reduce OREO in 2012 and in the first and second quarters of 2013, which resulted in lower impairment expense on OREO. If the economy remains weak and real estate values decline, however, further impairment and losses could occur.

Income tax expense for the second quarter of 2013 was $512,000, compared to $623,000 for the same period of 2012. For the six-month period ended June 30, 2013, income tax expense was $856,000, compared to a tax benefit of $360,000 for the same period of 2012. Management estimates the effective tax rate for the Company to be approximately 30.0% of pre-tax income for the period ended June 30, 2013.

COMPARING THE JUNE 30, 2013 STATEMENTS OF FINANCIAL CONDITION TO DECEMBER 31, 2012

In comparing consolidated financial condition at June 30, 2013 to December 31, 2012, total assets decreased $11.4 million to $555.7 million, while liabilities decreased $11.8 million to $486.7 million. Shareholders’ equity increased $364,000 as a result of net income of $2.1 million, offset somewhat by a $1.7 million decrease in accumulated other comprehensive income.

Investment securities increased $24.0 million, or 21.1%, during the first six months of 2013. Investments provide the Company with a stable form of liquidity while maximizing earnings yield. Loans, net of unearned income, decreased $33.1 million, from $356.7 million at December 31, 2012 to $323.6 million at June 30, 2013. Deposits decreased $10.9 million, or 2.2%, during the first six months of 2013. Loans, net of unearned income, at ALC

37

decreased $3.7 million, from $75.1 million at December 31, 2012 to $71.4 million at June 30, 2013. Loans at the Bank, after consolidation eliminations, decreased $29.4 million, from $281.6 million at December 31, 2012 to $252.2 million at June 30, 2013.

Other assets declined $3.3 million from December 31, 2012 to June 30, 2013. This reduction resulted primarily from a $2.9 million income tax refund receivable and a $465,000 refund receivable from prepaid FDIC assessments as of December 31, 2012. All other components of other assets remained fairly consistent for the six month period.

The Company maintains the allowance for loan losses at a level deemed adequate by management to absorb possible losses from loans in the portfolio. In determining the adequacy of the allowance for loan losses, management considers numerous factors, including, but not limited to, management’s estimate of: (a) future economic conditions, (b) the financial condition and liquidity of certain loan customers and (c) collateral values of property securing certain loans. Because these factors and others involve the use of management’s estimation and judgment, the allowance for loan losses is inherently subject to adjustment at future dates. Unfavorable changes in the factors used by management to determine the adequacy of the allowance, including increased loan delinquencies and subsequent charge-offs, or the availability of new information, could require additional provisions, in excess of normal provisions, to the allowance for loan losses in future periods. There can be no assurance that loan losses in future periods will not exceed the allowance for loan losses or that additions to the allowances will not be required.

At June 30, 2013, the allowance for loan losses was $11.6 million, or 3.6% of loans net of unearned income, compared to $19.3 million, or 5.4% of loans net of unearned income, at December 31, 2012. The coverage ratio of the allowance for loan losses to non-performing assets decreased to 40.3% at June 30, 2013, compared to 50.1% at December 31, 2012. The level of non-performing and impaired loans has decreased since December 31, 2012 through collections, charge-offs and upgrades. The impairment and reserve required by loans evaluated individually for impairment has decreased. In addition, the historical loss ratios utilized in calculating the allowance for loan losses for the remaining portion of the loan portfolio, which is evaluated collectively for impairment, have also decreased. These factors have contributed to the decreased allowance for loan losses.

Net charge-offs for 2013 as of June 30, 2013 were $8.2 million, or 4.8% of average loans on an annualized basis, an increase of 41.5%, or $3.4 million, from the charge-offs of $4.8 million, or 2.5% of average loans on an annualized basis, reported a year earlier as of June 30, 2012. The provision for loan losses for the six months ended June 30, 2013 was $559,000, compared to $2.7 million for the same period of 2012.

Non-performing assets were as follows (in thousands of dollars):

	Consolidated
	June 30,			December 31,			June 30,
	2013			2012			2012
Loans Accounted for on a Nonaccrual Basis	$	14,847		$	23,618		$	17,533
Accruing Loans Past Due 90 Days or More		1,674			1,571			1,661
Real Estate Acquired in Settlement of Loans		12,377			13,286			15,005
Total	$	28,898		$	38,475		$	34,199
Non-Performing Assets as a Percentage of Net
Loans and Other Real Estate		8.60	%		10.40	%		8.76	%

	FUSB
	June 30,			December 31,			June 30,
	2013			2012			2012
Loans Accounted for on a Nonaccrual Basis	$	14,618		$	23,351		$	16,087
Accruing Loans Past Due 90 Days or More		—			—			41
Real Estate Acquired in Settlement of Loans		11,602			11,089			12,004
Total	$	26,220		$	34,440		$	28,132
Non-Performing Assets as a Percentage of Net Loans and Other Real Estate		9.94	%		11.77	%		9.11	%

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	ALC
	June 30,			December 31,			June 30,
	2013			2012			2012
Loans Accounted for on a Nonaccrual Basis	$	229		$	267		$	1,446
Accruing Loans Past Due 90 Days or More		1,674			1,571			1,620
Real Estate Acquired in Settlement of Loans		775			2,197			3,001
Total	$	2,678		$	4,035		$	6,067
Non-Performing Assets as a Percentage of Net Loans and Other Real Estate		3.71	%		5.22	%		11.22	%

Non-performing assets as a percentage of net loans and other real estate was 8.60% at June 30, 2013 and 10.40% at December 31, 2012. Loans on nonaccrual status decreased $8.8 million, accruing loans past due 90 days or more increased $103,000 and real estate acquired in settlement of loans decreased $0.9 million from December 31, 2012. The Company forecasts that challenging economic conditions and the weakened real estate market in the Company’s market area will continue to put downward pressure on real estate collateral values and will impact the Company’s ability to reduce non-performing assets. OREO as of June 30, 2013 consisted of six residential properties totaling $473,911 and thirty-three commercial properties totaling $11.1 million at the Bank and thirty-one residential properties totaling $505,413 and fifteen commercial properties totaling $269,326 at ALC. Every effort is made to dispose of these properties in a timely manner, but these efforts continue to be hampered by current economic conditions. Real estate values are depressed, and the real estate market remains weakened in all of the Company’s market areas. Management reviews these non-performing assets and reports to the Board of Directors of the Bank monthly. Loans past due 90 days or more and still accruing are reviewed by management and are allowed to continue accruing only when management believes that underlying collateral values and the financial strength of the borrowers are sufficient to protect the Bank from loss. If at any time management determines that there may be a loss of interest or principal, these loans will be changed to nonaccrual status and their asset values downgraded.

LIQUIDITY AND CAPITAL RESOURCES

The Bank’s primary sources of funds are customer deposits, FHLB advances, repayments of loan principal and interest from loans and investments. While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition, making them less predictable. The Bank manages the pricing of its deposits to maintain a desired deposit balance. In addition, the Bank invests in short-term interest-earning assets, which provide liquidity to meet lending requirements.

The Bank currently has up to $166.7 million in borrowing capacity from the FHLB and $17.8 million in established federal funds lines.

USBI and the Bank are required to maintain certain levels of regulatory capital. At June 30, 2013 and December 31, 2012, USBI and the Bank were in compliance with all regulatory capital requirements.

Management is not aware of any condition that currently exists that would have an adverse effect on the liquidity, capital resources or operation of the Company. However, USBI and its subsidiaries are defendants in certain claims and legal actions arising in the ordinary course of business. See Note 14 to Item 1, “Guarantees, Commitments and Contingencies,” for a discussion of such claims and legal actions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The primary functions of asset and liability management are to (1) assure adequate liquidity, (2) maintain an appropriate balance between interest-sensitive assets and interest-sensitive liabilities, (3) maximize the profit of the Bank and (4) reduce risks to the Bank’s capital. Liquidity management involves the ability to meet day-to-day cash flow requirements of the Bank’s customers, whether they are depositors wishing to withdraw funds or borrowers requiring funds to meet their credit needs. Without proper liquidity management, the Bank would not be able to perform a primary function under its role as a financial intermediary and would not be able to meet the needs of the communities that it serves. Interest rate risk management focuses on the maturity structure and repricing characteristics of the Bank’s assets and liabilities when changes occur in market interest rates. Effective interest rate sensitivity management ensures that both assets and liabilities respond to changes in interest rates within an acceptable time frame, thereby minimizing the effect of such interest rate movements on short- and long-term net interest margin and net interest income.

39

The asset portion of the balance sheet provides liquidity primarily from two sources. These are principal payments and maturities of loans and maturities and principal payments from the investment portfolio. Other short-term investments, such as federal funds sold, are additional sources of liquidity. Loans maturing or repricing in one year or less amounted to $155.5 million at December 31, 2012 and $127.0 million at June 30, 2013.

Investment securities forecasted to mature or reprice over the next twelve months ending June 30, 2014 are estimated to be $14.0 million, or approximately 10.2% of the investment portfolio, as of June 30, 2013. For comparison, principal payments on investment securities totaled $19.4 million, or 14.1% of the investment portfolio, as of June 30, 2013.

Although the majority of the securities portfolio has legal final maturities longer than 10 years, a substantial percentage of the portfolio provides monthly principal and interest payments and consists of securities that are readily marketable and easily convertible into cash on short notice. As of June 30, 2013, the bond portfolio had an expected average maturity of 2.7 years, and approximately 80.1% of the $137.7 million in bonds was expected to be repaid within 5 years. However, management does not rely solely upon the investment portfolio to generate cash flows to fund loans, capital expenditures, dividends, debt repayment and other cash requirements. Instead, these activities are funded by cash flows from loan payments, as well as increases in deposits and short-term borrowings.

The liability portion of the balance sheet provides liquidity through interest bearing and non-interest bearing deposit accounts. Federal funds purchased, FHLB advances, securities sold under agreements to repurchase and short-term and long-term borrowings are additional sources of liquidity. Liquidity management involves the continual monitoring of the sources and uses of funds to maintain an acceptable cash position. Long-term liquidity management focuses on considerations related to the total balance sheet structure.

At each of June 30, 2013 and December 31, 2012, the Bank had short-term borrowings that, on average, represented 0.9% of total liabilities and equity. The Bank had no long-term debt outstanding during 2013 to date or at year-end 2012.

Interest rate sensitivity is a function of the repricing characteristics of the portfolio of assets and liabilities. These repricing characteristics are the time frames during which the interest-bearing assets and liabilities are subject to changes in interest rates, either at replacement or maturity, during the life of the instruments. Measuring interest rate sensitivity is a function of the differences in the volume of assets and the volume of liabilities that are subject to repricing in future time periods. These differences are known as interest sensitivity gaps and are usually calculated for segments of time and on a cumulative basis.

Measuring Interest Rate Sensitivity: Gap analysis is a technique used to measure interest rate sensitivity at a particular point in time. Assets and liabilities are placed in gap intervals based on their repricing dates. Assets and liabilities for which no specific repricing dates exist are placed in gap intervals based on management’s judgment concerning their most likely repricing behaviors.

A net gap for each time period is calculated by subtracting the liabilities repricing in that interval from the assets repricing. A positive gap – more assets repricing than liabilities – will benefit net interest income if rates are rising and will detract from net interest income in a falling rate environment. Conversely, a negative gap – more liabilities repricing than assets – will benefit net interest income in a declining interest rate environment and will detract from net interest income in a rising interest rate environment.

Gap analysis is the simplest representation of the Bank’s interest rate sensitivity. However, it cannot reveal the impact of factors such as administered rates, pricing strategies on consumer and business deposits, changes in balance sheet mix or the effect of various options embedded in balance sheet instruments, such as refinancing rates within the loan and bond portfolios.

Simple gap analysis is no longer considered to be as accurate a tool for measuring interest rate risk as pro forma income simulation because it does not make an allowance for how much an item reprices as interest rates change, only that it is possible that the item could reprice. Accordingly, the Bank does not rely on gap analysis but instead measures changes in net interest income and net interest margin through income simulation over +/- 1%, 2%, 3% and 4% interest rate shocks. Our estimates have consistently shown that the Bank has very limited, if any, net interest margin and net interest income risk to rising interest rates.

On a monthly basis, the Bank simulates how changes in short- and long-term interest rates will impact future profitability, as reflected by changes in the Bank’s net interest margin.

40

Also on a monthly basis, the Bank calculates how changes in interest rates would impact the market value of its assets and liabilities, as well as changes in long-term profitability. The process is similar to assessing short-term risk but emphasizes and is measured over a five-year time period, which allows for a more comprehensive assessment of longer-term repricing and cash flow imbalances that may not be captured by short-term net interest margin simulation. The results of these calculations are representative of long-term interest rate risk, both in terms of changes in the present value of the Bank’s assets and liabilities, as well as long-term changes in core profitability.

ITEM 4. CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in USBI’s Securities Exchange Act of 1934 (the “Exchange Act”) reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

The management of the Company carried out an evaluation, under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of June 30, 2013, pursuant to the evaluation of these controls and procedures required by Rule 13a-15 of the Exchange Act. Based upon that evaluation, the Company’s management concluded, as of June 30, 2013, that the Company’s disclosure controls and procedures are effective to ensure that the information required to be disclosed in USBI’s periodic filings with the SEC is recorded, processed, summarized and reported within the time periods specified.

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the quarter ended June 30, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 14 to Item 1, “Guarantees, Commitments and Contingencies,” for information regarding certain litigation matters relating to the Company.

USBI and its subsidiaries also are parties to litigation other than as described in Note 14 to Item 1, and the Company intends to vigorously defend itself in all such litigation. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors,” in USBI’s Annual Report on Form 10-K for the year ended December 31, 2012 that could materially affect the Company’s business, financial condition or future results. The risks described in USBI’s Annual Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.

41

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth purchases made by or on behalf of USBI or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) of the Exchange Act, of shares of USBI’s common stock.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased			Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs (1)		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Programs (1)
April 1 – April 30		—		$	0.00		0		242,303
May 1 – May 31		3,200	(2)	$	8.63		0		242,303
June 1 – June 30		7,200	(2)	$	9.63		0		242,303
Total		10,400		$	9.32		0		242,303

(1) On December 17, 2012, the Board of Directors extended the share repurchase program previously approved by the Board on January 19, 2006. Under the repurchase program, USBI is authorized to repurchase up to 642,785 shares of common stock. The expiration date of the extended repurchase program is December 31, 2013. As of June 30, 2013, there were 242,303 shares that may still be purchased under the program.

(2) 10,400 shares were purchased in open-market transactions by an independent trustee for the United Security Bancshares Inc. Employee Stock Ownership Plan (With 401(k) Provisions).

ITEM 6. EXHIBITS

The exhibits listed in the Index to Exhibits below are filed herewith and are incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

UNITED SECURITY BANCSHARES, INC.
DATE: August 14, 2013
BY:	/s/ Robert Steen
	Robert Steen

Its Vice President, Treasurer and Assistant Secretary, Chief Financial Officer and Principal Accounting Officer (Duly Authorized Officer and Principal Financial Officer)

42

INDEX TO EXHIBITS

Exhibit No.	Description
3.1	Certificate of Incorporation of United Security Bancshares, Inc., incorporated herein by reference to the Exhibits to Form 10-Q for the quarter ended September 30, 1999.
3.2	Amended and Restated Bylaws of United Security Bancshares, Inc., incorporated by reference to Exhibit 3(ii) to the Current Report on Form 8-K filed August 29, 2007.
3.2A	First Amendment to the Bylaws of United Security Bancshares, Inc., incorporated by reference to Exhibit 3(ii) to the Current Report on Form 8-K filed February 24, 2012.
10.1	United Security Bancshares, Inc. 2013 Incentive Plan, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed May 22, 2013.
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
32	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive Data File for the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013.

43

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, James F. House, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Security Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

By:	/s/ James F. House
	James F. House
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Robert Steen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Security Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

By:	/s/ Robert Steen
	Robert Steen
	Vice President, Treasurer and Assistant
	Secretary, Chief Financial Officer and
	Principal Accounting Officer

EX-32

EXHIBIT 32

CERTIFICATION

PURSUANT TO 18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, James F. House, President and Chief Executive Officer of United Security Bancshares, Inc., and Robert Steen, Vice President, Treasurer and Assistant Secretary, Chief Financial Officer and Principal Accounting Officer of United Security Bancshares, Inc., certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of United Security Bancshares, Inc. for the fiscal quarter ended June 30, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of United Security Bancshares, Inc.

/s/ James F. House

James F. House

President and Chief Executive Officer

August 14, 2013

/s/ Robert Steen

Robert Steen

Vice President, Treasurer and Assistant

Secretary, Chief Financial Officer and

Principal Accounting Officer

August 14, 2013

XML

Short-Term Borrowings

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Short-Term Borrowings

10. SHORT-TERM BORROWINGS

Short-term borrowings consist of federal funds purchased and securities sold under repurchase agreements. Federal funds purchased generally mature within one to four days. There were no such amounts outstanding at June 30, 2013 or December 31, 2012.

Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The Company monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements at June 30, 2013 and December 31, 2012 were $455,943 and $638,000, respectively.

At June 30, 2013, the Bank had $17.8 million in available federal fund lines from correspondent banks.

XML

Other Real Estate Owned - Summary of Foreclosed Property Activity (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			$ 13,286,000	$ 16,775,000	$ 16,775,000
Transfers from loans			1,998,000	3,188,000
Sales proceeds			(1,841,000)	(1,635,000)
Gross gains			72,000	36,000
Gross losses			(776,000)	(496,000)
Net gains (losses)			(704,000)	(460,000)
Impairment	(165,000)	(30,000)	(362,000)	(2,864,000)	(3,582,596)
Ending balance	12,377,000	15,005,000	12,377,000	15,005,000	13,286,000
FUSB [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			11,089,000	12,607,000	12,607,000
Transfers from loans			1,735,000	2,732,000
Sales proceeds			(1,011,000)	(697,000)
Gross gains			51,000	9,000
Gross losses			(109,000)	(43,000)
Net gains (losses)			(58,000)	(34,000)
Impairment			(153,000)	(2,604,000)
Ending balance	11,602,000	12,004,000	11,602,000	12,004,000
ALC [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			2,197,000	4,168,000	4,168,000
Transfers from loans			263,000	456,000
Sales proceeds			(830,000)	(938,000)
Gross gains			21,000	27,000
Gross losses			(667,000)	(453,000)
Net gains (losses)			(646,000)	(426,000)
Impairment			(209,000)	(259,000)
Ending balance	$ 775,000	$ 3,001,000	$ 775,000	$ 3,001,000

XML

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
INTEREST INCOME:
Interest and Fees on Loans	$ 7,697,000	$ 8,883,000	$ 15,607,000	$ 17,966,000
Interest on Investment Securities	735,000	865,000	1,419,000	1,792,000
Total Interest Income	8,432,000	9,748,000	17,026,000	19,758,000
INTEREST EXPENSE:
Interest on Deposits	735,000	1,147,000	1,522,000	2,522,000
Interest on Borrowings	2,000	30,000	4,000	115,000
Total Interest Expense	737,000	1,177,000	1,526,000	2,637,000
NET INTEREST INCOME	7,695,000	8,571,000	15,500,000	17,121,000
Provision for loan losses	53,000	468,000	559,000	2,683,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	7,642,000	8,103,000	14,941,000	14,438,000
NON-INTEREST INCOME:
Service and Other Charges on Deposit Accounts	558,000	603,000	1,148,000	1,231,000
Credit Life Insurance Income	169,000	222,000	279,000	341,000
Other Income	501,000	506,000	1,424,000	1,033,000
Total Non-Interest Income	1,228,000	1,331,000	2,851,000	2,605,000
NON-INTEREST EXPENSE:
Salaries and Employee Benefits	3,965,000	3,714,000	7,977,000	7,479,000
Occupancy Expense	500,000	480,000	961,000	928,000
Furniture and Equipment Expense	281,000	343,000	564,000	653,000
Impairment on Other Real Estate	165,000	30,000	362,000	2,864,000
Loss on Sale of Other Real Estate	260,000	266,000	704,000	460,000
Other Expense	2,005,000	2,607,000	4,300,000	4,886,000
Total Non-Interest Expense	7,176,000	7,440,000	14,868,000	17,270,000
INCOME (LOSS) BEFORE INCOME TAXES	1,694,000	1,994,000	2,924,000	(227,000)
PROVISION FOR (BENEFIT FROM) INCOME TAXES	512,000	623,000	856,000	(360,000)
NET INCOME	$ 1,182,000	$ 1,371,000	$ 2,068,000	$ 133,000
BASIC AND DILUTED NET INCOME PER SHARE	$ 0.20	$ 0.23	$ 0.34	$ 0.02
DIVIDENDS PER SHARE

XML

Net Income

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Net Income

3. NET INCOME

Basic net income per share is computed by dividing net income by the weighted average shares during the three- and six-month periods ended June 30, 2013 and 2012. Diluted net income per share for each of the three- and six-month periods ended June 30, 2013 and 2012 is computed based on the weighted average shares outstanding during the period plus the dilutive effect of all potentially dilutive instruments outstanding. There were no outstanding potentially dilutive instruments during the three- and six month periods ended June 30, 2013 or 2012, and, therefore, basic and diluted weighted average shares outstanding were the same.

The following table represents the basic and diluted net income per share calculations for the three- and six-month periods ended June 30, 2013 and 2012 (in thousands of dollars, except per share data):

			Weighted		Basic and
			Average		Diluted Net
	Net		Shares		Income
For the Three Months Ended:	Income		Outstanding		Per Share
June 30, 2013	$	1,182		6,023,622	$	0.20
June 30, 2012	$	1,371		6,017,732	$	0.23
For the Six Months Ended:
June 30, 2013	$	2,068		6,023,622	$	0.34
June 30, 2012	$	133		6,017,410	$	0.02

XML

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Financial Assets Measured at Fair Value on Recurring Basis

Financial assets measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012 are summarized below.

	Fair Value Measurements at June 30, 2013 Using
	Totals At June 30, 2013		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Mortgage-backed securities	$	84,976	$	—	$	84,976	$	—
Obligations of states, counties and political subdivisions		13,696		—		13,696		—
U.S. treasury securities		3,949		—		3,949		—
	Fair Value Measurements at December 31, 2012 Using
	Totals At December 31, 2012		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Mortgage-backed securities	$	77,553	$	—	$	77,553	$	—
Obligations of states, counties and political subdivisions		14,981		—		14,981		—
U.S. treasury securities		80		—		80		—

Financial Assets Measured at Fair Value on Nonrecurring Basis

Financial assets measured at fair value on a nonrecurring basis at June 30, 2013 and December 31, 2012 are summarized below.

	Fair Value Measurements at June 30, 2013 Using
	Totals At June 30, 2013		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Impaired loans	$	18,042	$	—	$	—	$	18,042
Foreclosed property and other real estate		3,275		—		—		3,275
	Fair Value Measurements at December 31, 2012 Using
	Totals At December 31, 2012		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Impaired loans	$	14,956	$	—	$	—	$	14,956
Foreclosed property and other real estate		11,368		—		—		11,368

Summary of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

	Level 3 Significant Unobservable Input Assumptions
	Fair Value June 30, 2013		Valuation Technique	Unobservable Input	Quantitative Range of  Unobservable Inputs (Weighted- Average)
	(In Thousands of Dollars, except for Percentages)
Nonrecurring fair value measurements:
Impaired loans	$	18,042	Multiple data points, including discount to appraised value of collateral based on recent market activity	Appraisal compatibility adjustment (discount)	9% - 10% (9.5%)
Foreclosed property and other real estate	$	3,275	Discount to appraised value of property based on recent market activity for sales of similar properties	Appraisal compatibility adjustment (discount)	9% - 10% (9.5%)

Schedule of Estimated Fair Value and Related Carrying or Notional Amounts of Company's Financial Instruments

The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Carrying Amount		Estimated Fair  Value		Level 1		Level 2		Level 3
	(In Thousands of Dollars)
Assets:
Cash and cash equivalents	$	48,979	$	48,979	$	48,979	$	—	$	—
Investment securities available-for-sale		102,621		102,621		—		102,621		—
Investment securities held-to-maturity		35,105		34,453		—		34,453		—
Federal funds sold		5,000		5,000		5,000		—		—
Federal Home Loan Bank stock		681		681		—		681		—
Loans, net of allowance for loan losses		312,008		312,146		—		—		312,146
Liabilities:
Deposits		478,086		478,786		—		478,786		—
Short-term borrowings		456		456		—		456		—

	December 31, 2012
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In Thousands of Dollars)
Assets:
Cash and cash equivalents	$	54,126	$	54,126	$	54,126	$	—	$	—
Investment securities available-for-sale		92,614		92,614		—		92,614		—
Investment securities held-to-maturity		21,136		21,185		—		21,185		—
Federal funds sold		5,000		5,000		5,000		—		—
Federal Home Loan Bank stock		936		936		—		936		—
Loans, net of allowance for loan losses		337,400		339,230		—		—		339,230
Liabilities:
Deposits		489,034		490,596		—		490,596		—
Short-term borrowings		638		638		—		638		—

XML

Long-Term Debt - Additional Information (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Advances outstanding to secure borrowings	$ 0	$ 0
Assets pledged	0	0
Available credit from the FHLB	$ 166,700,000

XML

Long-Term Debt

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Long-Term Debt

11. LONG-TERM DEBT

The Company uses FHLB advances as an alternative to funding sources with similar maturities, such as certificates of deposit or other deposit programs. These advances generally offer more attractive rates when compared to other mid-term financing options. They are also flexible, allowing the Company to quickly obtain the necessary maturities and rates that best suit its overall asset/liability strategy. At June 30, 2013 and December 31, 2012, no advances were outstanding, and no assets were pledged.

At June 30, 2013, the Bank had $166.7 million in available credit from the FHLB.

XML

Loans and Allowance for Loan Losses - Schedule of Analysis of Non-Accruing Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 14,847	$ 23,618
Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	5,400	11,456
Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	2,057	2,441
Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	1,455	2,884
Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	5,375	5,809
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	368	822
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 192	$ 206

XML

Income Taxes - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0
Accrued interest and penalties	0
Federal statutory income tax rate	34.00%
Cumulative loss position period	3 years
Net deferred tax assets	7,500,000	9,500,000
Provision for loan losses	4,400,000	7,300,000
Impairment of OREO	1,800,000	2,300,000
Deferred compensation	$ 1,600,000	$ 1,500,000
Projected future taxable income period	5 years

XML

Investment Securities - Investment Securities Available-for-Sale and Held-to-Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Held-to-Maturity, Amortized Cost	$ 35,105
Available-for-Sale, Amortized Cost	100,325	87,592
Available-for-Sale, Gross Unrealized Gains	3,149	5,054
Available-for-Sale, Gross Unrealized Losses	(853)	(32)
Available-for-Sale, Estimated Fair Value	102,621	92,614
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-Sale, Amortized Cost	83,566	74,117
Available-for-Sale, Gross Unrealized Gains	2,046	3,468
Available-for-Sale, Gross Unrealized Losses	(636)	(32)
Available-for-Sale, Estimated Fair Value	84,976	77,553
Obligations of States, Counties and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-Sale, Amortized Cost	12,593	13,395
Available-for-Sale, Gross Unrealized Gains	1,103	1,586
Available-for-Sale, Gross Unrealized Losses
Available-for-Sale, Estimated Fair Value	13,696	14,981
U.S. Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-Sale, Amortized Cost	4,166	80
Available-for-Sale, Gross Unrealized Gains
Available-for-Sale, Gross Unrealized Losses	(217)
Available-for-Sale, Estimated Fair Value	3,949	80
U.S. agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-Maturity, Amortized Cost	35,105	21,136
Held-to-Maturity, Gross Unrealized Gains		56
Held-to-Maturity, Gross Unrealized Losses	(652)	(7)
Held-to-Maturity, Estimated Fair Value	$ 34,453	$ 21,185

XML

Other Real Estate Owned (Tables)

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Summary of Foreclosed Property Activity

The following table summarizes foreclosed property activity for the six months ended June 30, 2013 and 2012:

	June 30, 2013
	FUSB			ALC			Total
	(In Thousands of Dollars
Beginning balance	$	11,089		$	2,197		$	13,286
Transfers from loans		1,735			263			1,998
Sales proceeds		(1,011	)		(830	)		(1,841	)
Gross gains		51			21			72
Gross losses		(109	)		(667	)		(776	)
Net losses		(58	)		(646	)		(704	)
Impairment		(153	)		(209	)		(362	)
Ending balance	$	11,602		$	775		$	12,377

	June 30, 2012
	FUSB			ALC			Total
	(In Thousands of Dollars)
Beginning balance	$	12,607		$	4,168		$	16,775
Transfers from loans		2,732			456			3,188
Sales proceeds		(697	)		(938	)		(1,635	)
Gross gains		9			27			36
Gross losses		(43	)		(453	)		(496	)
Net losses		(34	)		(426	)		(460	)
Impairment		(2,604	)		(259	)		(2,863	)
Ending balance	$	12,004		$	3,001		$	15,005

XML

Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Schedule of Loan Portfolio by Reporting Segment and Portfolio Segment

At June 30, 2013 and December 31, 2012, the composition of the loan portfolio by reporting segment and portfolio segment was as follows:

	June 30, 2013
	FUSB		ALC		Total
	(In Thousands of Dollars)
Real estate loans:
Construction, land development and other land loans	$	15,354	$	—	$	15,354
Secured by 1-4 family residential properties		35,427		29,651		65,078
Secured by multi-family residential properties		22,415		—		22,415
Secured by non-farm, non-residential properties		127,689		—		127,689
Other		792		—		792
Commercial and industrial loans		37,853		—		37,853
Consumer loans		12,251		46,813		59,064
Other loans		594		—		594
Total loans		252,375		76,464		328,839
Less: Unearned Interest		169		5,027		5,196
Allowance for loan losses		8,622		3,013		11,635
Net loans	$	243,584	$	68,424	$	312,008

	December 31, 2012
	FUSB		ALC		Total
	(In Thousands of Dollars)
Real estate loans:
Construction, land development and other land loans	$	30,635	$	—	$	30,635
Secured by 1-4 family residential properties		38,450		33,047		71,497
Secured by multi-family residential properties		24,187		—		24,187
Secured by non-farm, non-residential properties		129,235		—		129,235
Other		801		—		801
Commercial and industrial loans		42,903		—		42,903
Consumer loans		14,483		47,001		61,484
Other loans		1,037		—		1,037
Total loans	$	281,731	$	80,048	$	361,779
Less: Unearned Interest		175		4,926		5,101
Allowance for loan losses		15,765		3,513		19,278
Net loans	$	265,791	$	71,609	$	337,400

Schedule of Changes in Allowance for Loan Losses and Recorded Investment in Loans

The following tables present changes in the allowance for loan losses by reporting segment and loan type as of June 30, 2013 and December 31, 2012:

	FUSB
	June 30, 2013
			Commercial					Residential
	Commercial		Real Estate			Consumer		Real Estate		Other			Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	977	$	14,216		$	168	$	338	$	66		$	—	$	15,765
Charge-offs		448		6,340			116		190		2			—		7,096
Recoveries		39		27			44		3		2			—		115
Provision		534		(895	)		37		203		(41	)		—		(162	)
Ending balance		1,102		7,008			133		354		25			—		8,622
Ending balance individually evaluated for impairment		399		4,378			—		—		—			—		4,777
Ending balance collectively evaluated for impairment	$	703	$	2,630		$	133	$	354	$	25		$	—	$	3,845
Loan receivables:
Ending balance		37,853		166,250			12,251		35,427		594			—		252,375
Ending balance individually evaluated for impairment		1,263		40,614			—		306		—			—		42,183
Ending balance collectively evaluated for impairment	$	36,590	$	125,636		$	12,251	$	35,121	$	594		$	—	$	210,192

	ALC
	June 30, 2013
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	—	$	—	$	2,733	$	780	$	—	$	—	$	3,513
Charge-offs		—		—		1,403		282		—		—		1,685
Recoveries		—		—		454		10		—		—		464
Provision		—		—		588		133		—		—		721
Ending balance		—		—		2,372		641		—		—		3,013
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	2,372	$	641	$	—	$	—	$	3,013
Loan receivables:
Ending balance		—		—		46,813		29,651		—		—		76,464
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	46,813	$	29,651	$	—	$	—	$	76,464

	FUSB & ALC
	June 30, 2013
			Commercial					Residential
	Commercial		Real Estate			Consumer		Real Estate		Other			Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	977	$	14,216		$	2,901	$	1,118	$	66		$	—	$	19,278
Charge-offs		448		6,340			1,519		472		2			—		8,781
Recoveries		39		27			498		13		2			—		579
Provision		534		(895	)		625		336		(41	)		—		559
Ending balance		1,102		7,008			2,505		995		25			—		11,635
Ending balance individually evaluated for impairment		399		4,378			—		—		—			—		4,777
Ending balance collectively evaluated for impairment	$	703	$	2,630		$	2,505	$	995	$	25		$	—	$	6,858
Loan receivables:
Ending balance		37,853		166,250			59,064		65,078		594			—	$	328,839
Ending balance individually evaluated for impairment		1,263		40,614			—		306		—			—		42,183
Ending balance collectively evaluated for impairment	$	36,590	$	125,636		$	59,064	$	64,772	$	594		$	—	$	286,656

	FUSB
	December 31, 2012
			Commercial					Residential
	Commercial		Real Estate		Consumer			Real Estate			Other		Unallocated			Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	889	$	16,533	$	306		$	684		$	78	$	201		$	18,691
Charge-offs		1,278		3,395		199			199			16		—			5,087
Recoveries		156		606		79			24			2		—			867
Provision		1,210		472		(18	)		(171	)		2		(201	)		1,294
Ending balance		977		14,216		168			338			66		—			15,765
Ending balance individually evaluated for impairment		406		10,818		—			—			—		—			11,224
Ending balance collectively evaluated for impairment	$	571	$	3,398	$	168		$	338		$	66	$	—		$	4,541
Loan receivables:
Ending balance		42,903		184,858		14,483			38,450			1,037		—			281,731
Ending balance individually evaluated for impairment		1,085		52,893		—			325			—		—			54,303
Ending balance collectively evaluated for impairment	$	41,818	$	131,965	$	14,483		$	38,125		$	1,037	$	—		$	227,428

	ALC
	December 31, 2012
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated		Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	—	$	—	$	2,542	$	1,034	$	—	$	—	$	3,576
Charge-offs		—		—		3,249		713		—		—		3,962
Recoveries		—		—		815		40		—		—		855
Provision		—		—		2,625		419		—		—		3,044
Ending balance		—		—		2,733		780		—		—		3,513
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	2,733	$	780	$	—	$	—	$	3,513
Loan receivables:
Ending balance		—		—		47,001		33,047		—		—		80,048
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	47,001	$	33,047	$	—	$	—	$	80,048

	FUSB & ALC
	December 31, 2012
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated			Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	889	$	16,533	$	2,848	$	1,718	$	78	$	201		$	22,267
Charge-offs		1,278		3,395		3,448		912		16		—			9,049
Recoveries		156		606		894		64		2		—			1,722
Provision		1,210		472		2,607		248		2		(201	)		4,338
Ending balance		977		14,216		2,901		1,118		66		—			19,278
Ending balance individually evaluated for impairment		406		10,818		—		—		—		—			11,224
Ending balance collectively evaluated for impairment	$	571	$	3,398	$	2,901	$	1,118	$	66	$	—		$	8,054
Loan receivables:
Ending balance		42,903		184,858		61,484		71,497		1,037		—			361,779
Ending balance individually evaluated for impairment		1,085		52,893		—		325		—		—			54,303
Ending balance collectively evaluated for impairment	$	41,818	$	131,965	$	61,484	$	71,172	$	1,037	$	—		$	307,476

Schedule of Carrying Amount of Loans by Credit Quality Indicator

The table below illustrates the carrying amount of loans by credit quality indicator at June 30, 2013:

	FUSB
	Pass 1-4		Special Mention 5		Substandard 6		Doubtful 7		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	4,317	$	1,156	$	9,881	$	—	$	15,354
Secured by 1-4 family residential properties		30,034		1,199		4,194		—		35,427
Secured by multi-family residential properties		14,182		—		8,233		—		22,415
Secured by non-farm, non-residential properties		95,810		6,263		25,616		—		127,689
Other		792		—		—		—		792
Commercial and industrial loans		34,901		1,163		1,789		—		37,853
Consumer loans		10,867		136		1,248		—		12,251
Other loans		593		—		1		—		594
Total	$	191,496	$	9,917	$	50,962	$	—	$	252,375

	ALC
	Performing		Nonperforming		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	28,824	$	827	$	29,651
Consumer loans		45,737		1,076		46,813
Total	$	74,561	$	1,903	$	76,464

The table below illustrates the carrying amount of loans by credit quality indicator at December 31, 2012:

	FUSB
	Pass 1-4		Special Mention 5		Substandard 6		Doubtful 7		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	12,653	$	1,235	$	16,747	$	—	$	30,635
Secured by 1-4 family residential properties		31,772		1,546		5,132		—		38,450
Secured by multi-family residential properties		10,776		3,132		10,279		—		24,187
Secured by non-farm, non-residential properties		90,139		8,630		30,466		—		129,235
Other		801		—		—		—		801
Commercial and industrial loans		40,607		419		1,877		—		42,903
Consumer loans		13,394		188		901		—		14,483
Other loans		1,036		—		1		—		1,037
Total	$	201,178	$	15,150	$	65,403	$	—	$	281,731

	ALC
	Performing		Nonperforming		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	32,036	$	1,011	$	33,047
Consumer loans		46,175		826		47,001
Total	$	78,211	$	1,837	$	80,048

Schedule of Aging Analysis of Past Due Loans

The following table provides an aging analysis of past due loans by class at June 30, 2013:

	FUSB
	As of June 30, 2013
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	4,141	$	4,141	$	11,213	$	15,354	$	—
Secured by 1-4 family residential properties		379		116		1,318		1,813		33,614		35,427		—
Secured by multi-family residential properties		767		—		1,455		2,222		20,193		22,415		—
Secured by non-farm, non-residential properties		561		165		4,186		4,912		122,777		127,689		—
Other		—		—		—		—		792		792		—
Commercial and industrial loans		816		60		45		921		36,932		37,853		—
Consumer loans		227		4		56		287		11,964		12,251		—
Other loans		—		—		—		—		594		594		—
Total	$	2,750	$	345	$	11,201	$	14,296	$	238,079	$	252,375	$	—

	ALC
	As of June 30, 2013
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by 1-4 family residential properties		303		175		768		1,246		28,405		29,651		670
Secured by multi-family residential properties		—		—		—		—		—		—		—
Secured by non-farm, non-residential properties		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—		—
Consumer loans		947		484		1,032		2,463		44,350		46,813		1,004
Other loans		—		—		—		—		—		—		—
Total	$	1,250	$	659	$	1,800	$	3,709	$	72,755	$	76,464	$	1,674

The following table provides an aging analysis of past due loans by class at December 31, 2012:

	FUSB
	As of December 31, 2012
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	456	$	1,126	$	10,329	$	11,911	$	18,724	$	30,635	$	—
Secured by 1-4 family residential properties		1,027		572		1,106		2,705		35,745		38,450		—
Secured by multi-family residential properties		—		—		2,884		2,884		21,303		24,187		—
Secured by non-farm, non-residential properties		210		32		4,930		5,172		124,063		129,235		—
Other		—		—		—		—		801		801		—
Commercial and industrial loans		430		59		480		969		41,934		42,903		—
Consumer loans		407		89		66		562		13,921		14,483		—
Other loans		—		—		—		—		1,037		1,037		—
Total	$	2,530	$	1,878	$	19,795	$	24,203	$	257,528	$	281,731	$	—

	ALC
	As of December 31, 2012
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by 1-4 family residential properties		348		173		1,075		1,596		31,451		33,047		851
Secured by multi-family residential properties		—		—		—		—		—		—		—
Secured by non-farm, non-residential properties		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—		—
Consumer loans		989		609		1,159		2,757		44,244		47,001		720
Other loans		—		—		—		—		—		—		—
Total	$	1,337	$	782	$	2,234	$	4,353	$	75,695	$	80,048	$	1,571

Schedule of Analysis of Non-Accruing Loans

The following table provides an analysis of nonaccruing loans by class at June 30, 2013 and December 31, 2012:

	Loans on Nonaccrual Status
	June 30, 2013		December 31, 2012
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	5,400	$	11,456
Secured by 1-4 family residential properties		2,057		2,441
Secured by multi-family residential properties		1,455		2,884
Secured by non-farm, non-residential properties		5,375		5,809
Commercial and industrial loans		368		822
Consumer loans		192		206
Total loans	$	14,847	$	23,618

Schedule of Carrying Amount of Impaired Loans

At June 30, 2013, the carrying amount of impaired loans consisted of the following:

	June 30, 2013
			Unpaid
	Carrying		Principal		Related
	Amount		Balance		Allowances
	(In Thousands of Dollars)
Impaired loans with no related allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	5,357	$	5,357	$	—
Secured by 1-4 family residential properties		306		306		—
Secured by multi-family residential properties		2,367		2,367		—
Secured by non-farm, non-residential properties		10,740		10,740		—
Commercial and industrial		594		594		—
Total loans with no related allowance recorded	$	19,364	$	19,364	$	—
Impaired loans with an allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	3,671	$	3,671	$	1,057
Secured by multi-family residential properties		5,866		5,866		1,726
Secured by non-farm, non-residential properties		12,613		12,613		1,595
Commercial and industrial		669		669		399
Total loans with an allowance recorded	$	22,819	$	22,819	$	4,777
Total impaired loans
Loans secured by real estate:
Construction, land development and other land loans	$	9,028	$	9,028	$	1,057
Secured by 1-4 family residential properties		306		306		—
Secured by multi-family residential properties		8,233		8,233		1,726
Secured by non-farm, non-residential properties		23,353		23,353		1,595
Commercial and industrial		1,263		1,263		399
Total impaired loans	$	42,183	$	42,183	$	4,777

At December 31, 2012, the carrying amount of impaired loans consisted of the following:

	December 31, 2012
			Unpaid
	Carrying		Principal		Related
	Amount		Balance		Allowances
	(In Thousands of Dollars)
Impaired loans with no related allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	2,645	$	2,645	$	—
Secured by 1-4 family residential properties		325		325		—
Secured by multi-family residential properties		3,027		3,027		—
Secured by non-farm, non-residential properties		21,471		21,471		—
Commercial and industrial		655		655		—
Total loans with no related allowance recorded	$	28,123	$	28,123	$	—
Impaired loans with an allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	12,658	$	12,658	$	7,453
Secured by multi-family residential properties		7,252		7,252		1,865
Secured by non-farm, non-residential properties		5,840		5,840		1,500
Commercial and industrial		430		430		406
Total loans with an allowance recorded	$	26,180	$	26,180	$	11,224
Total impaired loans
Loans secured by real estate:
Construction, land development and other land loans	$	15,303	$	15,303	$	7,453
Secured by 1-4 family residential properties		325		325		—
Secured by multi-family residential properties		10,279		10,279		1,865
Secured by non-farm, non-residential properties		27,311		27,311		1,500
Commercial and industrial		1,085		1,085		406
Total impaired loans	$	54,303	$	54,303	$	11,224

Schedule of Average Net Investment Impaired Loans and Interest Income Recognized and Received on Impaired Loans

The average net investment in impaired loans and interest income recognized and received on impaired loans at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Average Recorded		Interest Income		Interest Income
	Investment		Recognized		Received
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	13,155	$	94	$	95
Secured by 1-4 family residential properties		313		4		4
Secured by multi-family residential properties		9,831		209		199
Secured by non-farm, non-residential properties		25,212		573		535
Commercial and industrial		1,050		33		32
Total impaired loans	$	49,561	$	913	$	865
	December 31, 2012
	Average Recorded		Interest Income		Interest Income
	Investment		Recognized		Received
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	18,283	$	546	$	598
Secured by 1-4 family residential properties		146		10		10
Secured by multi-family residential properties		4,942		483		455
Secured by non-farm, non-residential properties		29,627		1,452		1,477
Commercial and industrial		1,222		38		42
Total impaired loans	$	54,220	$	2,529	$	2,582

Schedule of Number of Loans Modified Troubled Debt Restructuring by Loan Portfolio

The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio as of June 30, 2013 and December 31, 2012, as well as the recorded investment and unpaid principal balance as of June 30, 2013 and December 31, 2012:

	June 30, 2013						December 31, 2012
			Pre-Modification		Post-				Pre-Modification		Post-
			Outstanding		Modification				Outstanding		Modification
	Number		Principal		Principal		Number		Principal		Principal
	of Loans		Balance		Balance		of Loans		Balance		Balance
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans		8	$	12,580	$	6,280		10	$	11,267	$	9,988
Secured by 1-4 family residential properties		5		449		418		4		596		586
Secured by non-farm, non-residential properties		8		1,801		1,508		6		1,811		1,586
Commercial loans		3		371		345		4		380		356
Total		24	$	15,201	$	8,551		24	$	14,054	$	12,516

The following table provides the number of loans modified in a troubled debt restructuring that have subsequently defaulted, by loan portfolio, as of June 30, 2013 and December 31, 2012:

	June 30, 2013				December 31, 2012
	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
	(In Thousands of Dollars)
Troubled debt restructurings that have subsequently defaulted:
Construction, land development and other land loans		—	$	—		6	$	7,062
Secured by non-farm, non-residential properties		5		1,210		2		433
Commercial		—		—		2		68
Total		5	$	1,210		10	$	7,563

Schedule of Change in Troubled Debt Restructuring

The change in troubled debt restructuring from December 31, 2012 to June 30, 2013 was as follows:

	June 30, 2013		December 31, 2012		Change
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	6,280	$	9,988	$	(3,708	)
Secured by 1-4 family residential properties		418		586		(168	)
Secured by non-farm, non-residential properties		1,508		1,586		(78	)
Commercial and industrial loans		345		356		(11	)
Total	$	8,551	$	12,516		(3,965	)

XML

Loans and Allowance for Loan Losses - Schedule of Carrying Amount of Loans by Credit Quality Indicator (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Ending balance	$ 328,839	$ 361,779
Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	65,078	71,497
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	59,064	61,484
Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	15,354	30,635
Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	22,415	24,187
Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	127,689	129,235
Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	792	801
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	37,853	42,903
Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	594	1,037
ALC [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	76,464	80,048
ALC [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	29,651	33,047
ALC [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	46,813	47,001
ALC [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
ALC [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
ALC [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
ALC [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
ALC [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
ALC [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
FUSB [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	252,375	281,731
FUSB [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	35,427	38,450
FUSB [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	12,251	14,483
FUSB [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	15,354	30,635
FUSB [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	22,415	24,187
FUSB [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	127,689	129,235
FUSB [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	792	801
FUSB [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	37,853	42,903
FUSB [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	594	1,037
Performing [Member] | ALC [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	74,561	78,211
Performing [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	28,824	32,036
Performing [Member] | ALC [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	45,737	46,175
Nonperforming [Member] | ALC [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1,903	1,837
Nonperforming [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	827	1,011
Nonperforming [Member] | ALC [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1,076	826
Pass 1-4 [Member] | FUSB [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	191,496	201,178
Pass 1-4 [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	30,034	31,772
Pass 1-4 [Member] | FUSB [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	10,867	13,394
Pass 1-4 [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	4,317	12,653
Pass 1-4 [Member] | FUSB [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	14,182	10,776
Pass 1-4 [Member] | FUSB [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	95,810	90,139
Pass 1-4 [Member] | FUSB [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	792	801
Pass 1-4 [Member] | FUSB [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	34,901	40,607
Pass 1-4 [Member] | FUSB [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	593	1,036
Special Mention 5 [Member] | FUSB [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	9,917	15,150
Special Mention 5 [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1,199	1,546
Special Mention 5 [Member] | FUSB [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	136	188
Special Mention 5 [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1,156	1,235
Special Mention 5 [Member] | FUSB [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance		3,132
Special Mention 5 [Member] | FUSB [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	6,263	8,630
Special Mention 5 [Member] | FUSB [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Special Mention 5 [Member] | FUSB [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1,163	419
Special Mention 5 [Member] | FUSB [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Substandard 6 [Member] | FUSB [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	50,962	65,403
Substandard 6 [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	4,194	5,132
Substandard 6 [Member] | FUSB [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1,248	901
Substandard 6 [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	9,881	16,747
Substandard 6 [Member] | FUSB [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	8,233	10,279
Substandard 6 [Member] | FUSB [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	25,616	30,466
Substandard 6 [Member] | FUSB [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Substandard 6 [Member] | FUSB [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1,789	1,877
Substandard 6 [Member] | FUSB [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance	1	1
Doubtful 7 [Member] | FUSB [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance
Doubtful 7 [Member] | FUSB [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Ending balance

XML

Fair Value of Financial Instruments - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Fair Value Measurement [Line Items]
Non-Financial Assets measured at fair value on recurring basis			$ 0
Non-Financial Liabilities measured at fair value on recurring basis			0
Assets transferred into or out of Levels 1-2	0		0		0
Liabilities transferred into or out of Levels 1-2	0		0		0
Charge-offs of the allowance for possible loan losses			375,667		407,043
Impairment on Other Real Estate	165,000	30,000	362,000	2,864,000	3,582,596
Level 3 [Member]
Fair Value Measurement [Line Items]
Loans, net of specific allowances, subject to nonrecurring measurement valuation	18,041,521		18,041,521		14,956,079
Foreclosed assets measured at fair value upon initial recognition			1,936,664		2,097,440
Foreclosed assets, total	$ 1,338,363		$ 1,338,363		$ 9,270,443
Impaired Loans [Member]
Fair Value Measurement [Line Items]
Discounted rate for estimated cost in current affairs			9.00%
Minimum [Member]
Fair Value Measurement [Line Items]
Duration for appraisal			18 months
Percentage of fair value input discount rate as per old appraisal			20.00%
Maximum [Member]
Fair Value Measurement [Line Items]
Duration for appraisal			24 months
Percentage of fair value input discount rate as per old appraisal			30.00%

XML

Investment Securities - Investments' Gross Unrealized Losses and Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Available For Sale And Held To Maturity Securities In Continuous Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 Months, Fair Value	$ 33,484	$ 1,253
Available-for-Sale, Less than 12 Months, Unrealized Losses	(834)	(3)
Available-for-Sale, 12 Months or More, Fair Value	322	5,617
Available-for-Sale, 12 Months or More, Unrealized Losses	(19)	(29)
U.S. agencies [Member]
Available For Sale And Held To Maturity Securities In Continuous Unrealized Loss Position [Line Items]
Held-to-Maturity, Less than 12 Months, Fair Value	34,453	7,491
Held-to-Maturity, Less than 12 Months, Unrealized Losses	(652)	(7)
Held-to-Maturity, 12 Months or More, Fair Value
Held-to-Maturity, 12 Months or More, Unrealized Losses
Mortgage-Backed Securities [Member]
Available For Sale And Held To Maturity Securities In Continuous Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 Months, Fair Value	29,615	1,173
Available-for-Sale, Less than 12 Months, Unrealized Losses	(617)	(3)
Available-for-Sale, 12 Months or More, Fair Value	322	5,617
Available-for-Sale, 12 Months or More, Unrealized Losses	(19)	(29)
U.S. Treasury Securities [Member]
Available For Sale And Held To Maturity Securities In Continuous Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 Months, Fair Value	3,869	80
Available-for-Sale, Less than 12 Months, Unrealized Losses	(217)
Available-for-Sale, 12 Months or More, Fair Value
Available-for-Sale, 12 Months or More, Unrealized Losses

XML

Loans and Allowance for Loan Losses - Schedule of Carrying Amount of Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule Of Financial Receivables [Line Items]
Carrying Amount	$ 328,839	$ 361,779
Construction, Land Development and Other Land Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	15,354	30,635
Secured by 1-4 Family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	65,078	71,497
Secured by Multi-family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	22,415	24,187
Secured by Non-farm, Non-residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	127,689	129,235
Commercial and Industrial Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	37,853	42,903
Impaired Loans with No Related Allowance Recorded [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	19,364	28,123
Unpaid Principal Balance	19,364	28,123
Related Allowances
Impaired Loans with No Related Allowance Recorded [Member] | Construction, Land Development and Other Land Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	5,357	2,645
Unpaid Principal Balance	5,357	2,645
Related Allowances
Impaired Loans with No Related Allowance Recorded [Member] | Secured by 1-4 Family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	306	325
Unpaid Principal Balance	306	325
Related Allowances
Impaired Loans with No Related Allowance Recorded [Member] | Secured by Multi-family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	2,367	3,027
Unpaid Principal Balance	2,367	3,027
Related Allowances
Impaired Loans with No Related Allowance Recorded [Member] | Secured by Non-farm, Non-residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	10,740	21,471
Unpaid Principal Balance	10,740	21,471
Related Allowances
Impaired Loans with No Related Allowance Recorded [Member] | Commercial and Industrial Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	594	655
Unpaid Principal Balance	594	655
Related Allowances
Impaired Loans With an Allowance Recorded [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	22,819	26,180
Unpaid Principal Balance	22,819	26,180
Related Allowances	4,777	11,224
Impaired Loans With an Allowance Recorded [Member] | Construction, Land Development and Other Land Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	3,671	12,658
Unpaid Principal Balance	3,671	12,658
Related Allowances	1,057	7,453
Impaired Loans With an Allowance Recorded [Member] | Secured by Multi-family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	5,866	7,252
Unpaid Principal Balance	5,866	7,252
Related Allowances	1,726	1,865
Impaired Loans With an Allowance Recorded [Member] | Secured by Non-farm, Non-residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	12,613	5,840
Unpaid Principal Balance	12,613	5,840
Related Allowances	1,595	1,500
Impaired Loans With an Allowance Recorded [Member] | Commercial and Industrial Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	669	430
Unpaid Principal Balance	669	430
Related Allowances	399	406
Impaired Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	42,183	54,303
Unpaid Principal Balance	42,183	54,303
Related Allowances	4,777	11,224
Impaired Loans [Member] | Construction, Land Development and Other Land Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	9,028	15,303
Unpaid Principal Balance	9,028	15,303
Related Allowances	1,057	7,453
Impaired Loans [Member] | Secured by 1-4 Family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	306	325
Unpaid Principal Balance	306	325
Related Allowances
Impaired Loans [Member] | Secured by Multi-family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	8,233	10,279
Unpaid Principal Balance	8,233	10,279
Related Allowances	1,726	1,865
Impaired Loans [Member] | Secured by Non-farm, Non-residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	23,353	27,311
Unpaid Principal Balance	23,353	27,311
Related Allowances	1,595	1,500
Impaired Loans [Member] | Commercial and Industrial Loans [Member]
Schedule Of Financial Receivables [Line Items]
Carrying Amount	1,263	1,085
Unpaid Principal Balance	1,263	1,085
Related Allowances	$ 399	$ 406

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Net Income - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Abstract]
Outstanding potentially dilutive instruments	0	0	0	0

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Loans and Allowance for Loan Losses - Schedule of Loan Portfolio by Reporting Segment and Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 328,839	$ 361,779
Less: Unearned Interest	5,196	5,101
Allowance for loan losses	11,635	19,278
Net loans	312,008	337,400
Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	15,354	30,635
Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	65,078	71,497
Secured by Multi-family Residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	22,415	24,187
Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	127,689	129,235
Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	792	801
Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	37,853	42,903
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	59,064	61,484
Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	594	1,037
FUSB [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	252,375	281,731
Less: Unearned Interest	169	175
Allowance for loan losses	8,622	15,765	18,691
Net loans	243,584	265,791
FUSB [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	15,354	30,635
FUSB [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	35,427	38,450
FUSB [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	22,415	24,187
FUSB [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	127,689	129,235
FUSB [Member] | Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	792	801
FUSB [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	37,853	42,903
FUSB [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	12,251	14,483
FUSB [Member] | Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	594	1,037
Allowance for loan losses	25	66	78
ALC [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	76,464	80,048
Less: Unearned Interest	5,027	4,926
Allowance for loan losses	3,013	3,513	3,576
Net loans	68,424	71,609
ALC [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans
ALC [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	29,651	33,047
ALC [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans
ALC [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans
ALC [Member] | Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans
ALC [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans
ALC [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	46,813	47,001
ALC [Member] | Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans
Allowance for loan losses

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Investment Securities Available-for-Sale and Held-to-Maturity

Details of investment securities available-for-sale and held-to-maturity at June 30, 2013 and December 31, 2012 are as follows:

	Available-for-Sale
	June 30, 2013
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
Mortgage-backed securities	$	83,566	$	2,046	$	(636	)	$	84,976
Obligations of states, counties and political subdivisions		12,593		1,103		—			13,696
U.S. treasury securities		4,166		—		(217	)		3,949
Total	$	100,325	$	3,149	$	(853	)	$	102,621
	Held-to-Maturity
	June 30, 2013
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
U.S. agencies	$	35,105	$	—	$	(652	)	$	34,453
	Available-for-Sale
	December 31, 2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
Mortgage-backed securities	$	74,117	$	3,468	$	(32	)	$	77,553
Obligations of states, counties and political subdivisions		13,395		1,586		—			14,981
U.S. treasury securities		80		—		—			80
Total	$	87,592	$	5,054	$	(32	)	$	92,614

	Held-to-Maturity
	December 31, 2012
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
U.S. agencies	$	21,136	$	56	$	(7	)	$	21,185

Scheduled Maturities of Investment Securities Available-for-Sale and Held-to-Maturity

The scheduled maturities of investment securities available-for-sale and held-to-maturity at June 30, 2013 are presented in the following table:

	Available-for-Sale				Held-to-Maturity
	Amortized		Estimated Fair		Amortized		Estimated Fair
	Cost		Value		Cost		Value
	(In Thousands of Dollars)
Maturing within one year	$	689	$	694	$	—	$	—
Maturing after one to five years		7,260		7,644		—		—
Maturing after five to ten years		32,793		33,365		15,195		14,995
Maturing after ten years		59,583		60,918		19,910		19,458
Total	$	100,325	$	102,621	$	35,105	$	34,453

Investments' Gross Unrealized Losses and Fair Value

At June 30, 2013 and December 31, 2012, based on the aforementioned considerations, management did not record an other-than-temporary impairment on any security that was in an unrealized loss position.

	Available-for-Sale
	June 30, 2013
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
Mortgage-backed securities	$	29,615	$	(617	)	$	322	$	(19	)
U.S. treasury securities		3,869		(217	)		—		—
	$	33,484	$	(834	)	$	322	$	(19	)
	Held-to-Maturity
	June 30, 2013
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. agencies	$	34,453	$	(652	)	$	—	$	—

	Available-for-Sale
	December 31, 2012
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. treasury securities	$	80	$	—		$	—	$	—
Mortgage-backed securities		1,173		(3	)		5,617		(29	)
	$	1,253	$	(3	)	$	5,617	$	(29	)

	Held-to-Maturity
	December 31, 2012
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. agencies	$	7,491	$	(7	)	$	—	$	—

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (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 Income And Comprehensive Income [Abstract]
Tax (benefits) on change in unrealized holding gains on available-for-sale securities arising during period	$ (703)	$ 246	$ (1,022)	$ 205

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General

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

General

1. GENERAL

The accompanying unaudited interim condensed consolidated financial statements include the accounts of United Security Bancshares, Inc. (“USBI”) and its subsidiaries (collectively, the “Company”). USBI is the parent holding company of First United Security Bank (the “Bank” or “FUSB”). The Bank operates a finance company, Acceptance Loan Company, Inc. (“ALC”). All significant intercompany transactions and accounts have been eliminated.

The unaudited interim condensed consolidated financial statements, in the opinion of management, reflect all adjustments necessary for a fair presentation of consolidated financial position, results of operations and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. The results of operations for any interim period are not necessarily indicative of results expected for the fiscal year ending December 31, 2013. While certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes that the disclosures herein are adequate to make the information presented not misleading. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in USBI’s Annual Report on Form 10-K for the year ended December 31, 2012. The accounting policies followed by the Company are set forth in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in USBI’s Annual Report on Form 10-K for the year ended December 31, 2012. In preparing the unaudited interim condensed consolidated financial statements, management evaluated subsequent events through the date on which the unaudited interim condensed consolidated financial statements were issued.

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Comprehensive Income

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Comprehensive Income

4. COMPREHENSIVE INCOME

Comprehensive income consists of net income and the change in the unrealized gains or losses on the Company’s available-for-sale securities portfolio arising during the period. In the calculation of comprehensive income, certain reclassification adjustments would be made for any sale of investment securities to avoid double counting items that are displayed as part of net income for a period that also had been displayed as part of other comprehensive income in that period or earlier periods.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2013

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

2. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of this guidance, which involves disclosure only, did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, which updated Accounting Standards Codification (“ASC”) Topic 220, Comprehensive Income, which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not reclassified in their entirety to net income, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. ASU No. 2013-02 is effective for annual reporting periods beginning on or after December 15, 2012 and interim periods within those annual periods. The adoption of ASU No. 2013-02 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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Investment Securities - Additional Information (Detail) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013 Security	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Number of debt securities continues loss position for more than twelve months	2
Number of debt securities continues loss position for less than twelve months	28
Investment securities available-for-sale carrying amount	$ 64,900,000	$ 61,600,000
Net gains and losses realized on securities available-for-sale	$ 0	$ 0

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate

The consolidated tax expense (benefit) differed from the amount computed by applying the federal statutory income tax rate of 34.0%, as described in the following table:

	June 30, 2013			June 30, 2012
	(In Thousands of Dollars)
Income tax expense (benefit) at federal statutory rate	$	994		$	(77	)
Increase (decrease) resulting from:
Tax-exempt interest		(193	)		(175	)
State income tax expense (benefit), net of federal income taxes		114			(24	)
Other		(59	)		(84	)
Total	$	856		$	(360	)

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Net Income - Basic and Diluted Net Income Per Share Calculations (Detail) (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
Earnings Per Share [Abstract]
Net income	$ 1,182	$ 1,371	$ 2,068	$ 133
Weighted Average Shares Outstanding	6,023,622	6,017,732	6,023,622	6,017,410
BASIC AND DILUTED NET INCOME PER SHARE	$ 0.20	$ 0.23	$ 0.34	$ 0.02

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Fair Value of Financial Instruments - Schedule of Estimated Fair Value and Related Carrying or Notional Amounts of Company's Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Assets:
Investment securities available-for-sale	$ 102,621	$ 92,614
Federal Funds Sold	5,000	5,000
Carrying Amount [Member]
Assets:
Cash and cash equivalents	48,979	54,126
Investment securities available-for-sale	102,621	92,614
Investment securities held-to-maturity	35,105	21,136
Federal Funds Sold	5,000	5,000
Federal Home Loan Bank stock	681	936
Loans, net of allowance for loan losses	312,008	337,400
Liabilities:
Deposits	478,086	489,034
Short-term borrowings	456	638
Estimated Fair Value [Member]
Assets:
Cash and cash equivalents	48,979	54,126
Investment securities available-for-sale	102,621	92,614
Investment securities held-to-maturity	34,453	21,185
Federal Funds Sold	5,000	5,000
Federal Home Loan Bank stock	681	936
Loans, net of allowance for loan losses	312,416	339,230
Liabilities:
Deposits	478,786	490,596
Short-term borrowings	456	638
Level 1 [Member]
Assets:
Cash and cash equivalents	48,979	54,126
Investment securities available-for-sale
Investment securities held-to-maturity
Federal Funds Sold	5,000	5,000
Federal Home Loan Bank stock
Loans, net of allowance for loan losses
Liabilities:
Deposits
Short-term borrowings
Level 2 [Member]
Assets:
Cash and cash equivalents
Investment securities available-for-sale	102,621	92,614
Investment securities held-to-maturity	34,453	21,185
Federal Funds Sold
Federal Home Loan Bank stock	681	936
Loans, net of allowance for loan losses
Liabilities:
Deposits	478,786	490,596
Short-term borrowings	456	638
Level 3 [Member]
Assets:
Cash and cash equivalents
Investment securities available-for-sale
Investment securities held-to-maturity
Federal Funds Sold
Federal Home Loan Bank stock
Loans, net of allowance for loan losses	312,146	339,230
Liabilities:
Deposits
Short-term borrowings

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Short-Term Borrowings - Additional Information (Detail) (USD $)			6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Minimum [Member]	Jun. 30, 2013 Maximum [Member]
Short-term Debt [Line Items]
Maturity period of federal funds			1 day	4 days
Federal funds purchased	$ 0	$ 0
Treasury tax and loan deposits	0	0
Securities sold under repurchase agreements	456,000	638,000
Available fund lines from correspondent banks	$ 17,800,000

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Loans and Allowance for Loan Losses - Schedule of Average Net Investment Impaired Loans and Interest Income Recognized and Received on Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Schedule Of Financial Receivables [Line Items]
Average Recorded Investment	$ 49,561	$ 54,220
Interest Income Recognized	913	2,529
Interest Income Received	865	2,582
Construction, Land Development and Other Land Loans [Member]
Schedule Of Financial Receivables [Line Items]
Average Recorded Investment	13,155	18,283
Interest Income Recognized	94	546
Interest Income Received	95	598
Secured by 1-4 Family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Average Recorded Investment	313	146
Interest Income Recognized	4	10
Interest Income Received	4	10
Secured by Multi-family Residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Average Recorded Investment	9,831	4,942
Interest Income Recognized	209	483
Interest Income Received	199	455
Secured by Non-farm, Non-residential Properties [Member]
Schedule Of Financial Receivables [Line Items]
Average Recorded Investment	25,212	29,627
Interest Income Recognized	573	1,452
Interest Income Received	535	1,477
Commercial and Industrial Loans [Member]
Schedule Of Financial Receivables [Line Items]
Average Recorded Investment	1,050	1,222
Interest Income Recognized	33	38
Interest Income Received	$ 32	$ 42

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Loans and Allowance for Loan Losses - Schedule of Changes in Allowance for Loan Losses and Recorded Investment in Loans (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Allowance for loan losses:
Ending balance	$ 11,635	$ 19,278
Loan receivables:
Ending balance	328,839	361,779
Other Loans [Member]
Loan receivables:
Ending balance	594	1,037
FUSB & ALC [Member]
Allowance for loan losses:
Beginning balance	19,278	22,267
Charge-offs	8,781	9,049
Recoveries	579	1,722
Provision	559	4,338
Ending balance	11,635	19,278
Ending balance individually evaluated for impairment	4,777	11,224
Ending balance collectively evaluated for impairment	6,858	8,054
Loan receivables:
Ending balance	328,839	361,779
Ending balance individually evaluated for impairment	42,183	54,303
Ending balance collectively evaluated for impairment	286,656	307,476
FUSB & ALC [Member] | Other Loans [Member]
Allowance for loan losses:
Beginning balance	66	78
Charge-offs	2	16
Recoveries	2	2
Provision	(41)	2
Ending balance	25	66
Ending balance collectively evaluated for impairment	25	66
Loan receivables:
Ending balance	594	1,037
Ending balance collectively evaluated for impairment	594	1,037
FUSB & ALC [Member] | Unallocated [Member]
Allowance for loan losses:
Beginning balance		201
Provision		(201)
FUSB & ALC [Member] | Commercial [Member]
Allowance for loan losses:
Beginning balance	977	889
Charge-offs	448	1,278
Recoveries	39	156
Provision	534	1,210
Ending balance	1,102	977
Ending balance individually evaluated for impairment	399	406
Ending balance collectively evaluated for impairment	703	571
Loan receivables:
Ending balance	37,853	42,903
Ending balance individually evaluated for impairment	1,263	1,085
Ending balance collectively evaluated for impairment	36,590	41,818
FUSB & ALC [Member] | Commercial Real Estate [Member]
Allowance for loan losses:
Beginning balance	14,216	16,533
Charge-offs	6,340	3,395
Recoveries	27	606
Provision	(895)	472
Ending balance	7,008	14,216
Ending balance individually evaluated for impairment	4,378	10,818
Ending balance collectively evaluated for impairment	2,630	3,398
Loan receivables:
Ending balance	166,250	184,858
Ending balance individually evaluated for impairment	40,614	52,893
Ending balance collectively evaluated for impairment	125,636	131,965
FUSB & ALC [Member] | Consumer [Member]
Allowance for loan losses:
Beginning balance	2,901	2,848
Charge-offs	1,519	3,448
Recoveries	498	894
Provision	625	2,607
Ending balance	2,505	2,901
Ending balance collectively evaluated for impairment	2,505	2,901
Loan receivables:
Ending balance	59,064	61,484
Ending balance collectively evaluated for impairment	59,064	61,484
FUSB & ALC [Member] | Residential Real Estate [Member]
Allowance for loan losses:
Beginning balance	1,118	1,718
Charge-offs	472	912
Recoveries	13	64
Provision	336	248
Ending balance	955	1,118
Ending balance collectively evaluated for impairment	955	1,118
Loan receivables:
Ending balance	65,078	71,497
Ending balance individually evaluated for impairment	306	325
Ending balance collectively evaluated for impairment	64,772	71,172
ALC [Member]
Allowance for loan losses:
Beginning balance	3,513	3,576
Charge-offs	1,685	3,962
Recoveries	464	855
Provision	721	3,044
Ending balance	3,013	3,513
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	3,013	3,513
Loan receivables:
Ending balance	76,464	80,048
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	76,464	80,048
ALC [Member] | Other Loans [Member]
Allowance for loan losses:
Beginning balance
Charge-offs
Recoveries
Provision
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
Loan receivables:
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
ALC [Member] | Unallocated [Member]
Allowance for loan losses:
Beginning balance
Charge-offs
Recoveries
Provision
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
Loan receivables:
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
ALC [Member] | Commercial [Member]
Allowance for loan losses:
Beginning balance
Charge-offs
Recoveries
Provision
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
Loan receivables:
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
ALC [Member] | Commercial Real Estate [Member]
Allowance for loan losses:
Beginning balance
Charge-offs
Recoveries
Provision
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
Loan receivables:
Ending balance
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
ALC [Member] | Consumer [Member]
Allowance for loan losses:
Beginning balance	2,733	2,542
Charge-offs	1,403	3,249
Recoveries	454	815
Provision	588	2,625
Ending balance	2,372	2,733
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	2,372	2,733
Loan receivables:
Ending balance	46,813	47,001
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	46,813	47,001
ALC [Member] | Residential Real Estate [Member]
Allowance for loan losses:
Beginning balance	780	1,034
Charge-offs	282	713
Recoveries	10	40
Provision	133	419
Ending balance	641	780
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	641	780
Loan receivables:
Ending balance	29,651	33,047
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	29,651	33,047
FUSB [Member]
Allowance for loan losses:
Beginning balance	15,765	18,691
Charge-offs	7,096	5,087
Recoveries	115	867
Provision	(162)	1,294
Ending balance	8,622	15,765
Ending balance individually evaluated for impairment	4,777	11,224
Ending balance collectively evaluated for impairment	3,845	4,541
Loan receivables:
Ending balance	252,375	281,731
Ending balance individually evaluated for impairment	42,183	54,303
Ending balance collectively evaluated for impairment	210,192	227,428
FUSB [Member] | Other Loans [Member]
Allowance for loan losses:
Beginning balance	66	78
Charge-offs	2	16
Recoveries	2	2
Provision	(41)	2
Ending balance	25	66
Ending balance collectively evaluated for impairment	25	66
Loan receivables:
Ending balance	594	1,037
Ending balance collectively evaluated for impairment	594	1,037
FUSB [Member] | Unallocated [Member]
Allowance for loan losses:
Beginning balance		201
Provision		(201)
FUSB [Member] | Commercial [Member]
Allowance for loan losses:
Beginning balance	977	889
Charge-offs	448	1,278
Recoveries	39	156
Provision	534	1,210
Ending balance	1,102	977
Ending balance individually evaluated for impairment	399	406
Ending balance collectively evaluated for impairment	703	571
Loan receivables:
Ending balance	37,853	42,903
Ending balance individually evaluated for impairment	1,263	1,085
Ending balance collectively evaluated for impairment	36,590	41,818
FUSB [Member] | Commercial Real Estate [Member]
Allowance for loan losses:
Beginning balance	14,216	16,533
Charge-offs	6,340	3,395
Recoveries	27	606
Provision	(895)	472
Ending balance	7,008	14,216
Ending balance individually evaluated for impairment	4,378	10,818
Ending balance collectively evaluated for impairment	2,630	3,398
Loan receivables:
Ending balance	166,250	184,858
Ending balance individually evaluated for impairment	40,614	52,893
Ending balance collectively evaluated for impairment	125,636	131,965
FUSB [Member] | Consumer [Member]
Allowance for loan losses:
Beginning balance	168	306
Charge-offs	116	199
Recoveries	44	79
Provision	37	(18)
Ending balance	133	168
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	133	168
Loan receivables:
Ending balance	12,251	14,483
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	12,251	14,483
FUSB [Member] | Residential Real Estate [Member]
Allowance for loan losses:
Beginning balance	338	684
Charge-offs	190	199
Recoveries	3	24
Provision	203	(171)
Ending balance	354	338
Ending balance collectively evaluated for impairment	354	338
Loan receivables:
Ending balance	35,427	38,450
Ending balance individually evaluated for impairment	306	325
Ending balance collectively evaluated for impairment	$ 35,121	$ 38,125

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Condensed Consolidated Statements of Financial Condition (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Loans, allowance for loan losses	$ 11,635	$ 19,278
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	10,000,000	10,000,000
Common Stock, shares issued	7,327,560	7,327,560
Common Stock, shares outstanding	6,023,622	6,023,622
Treasury Stock, shares	1,303,938	1,303,938

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Investments in Limited Partnerships

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Investments in Limited Partnerships

7. INVESTMENTS IN LIMITED PARTNERSHIPS

The Company has limited partnership investments in affordable housing projects for which it provides funding as a limited partner and receives tax credits related to its investments in the projects based on its partnership share. The Company has invested in limited partnerships of affordable housing projects, both as direct investments and investments in funds that invest solely in affordable housing projects. The Company has determined that these structures require valuation as a variable interest entity (“VIE”) under ASC Topic 810, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities. The Company consolidates one of the funds in which it has a 99.9% limited partnership interest. The resulting financial impact to the Company of the consolidation was a net increase to total assets of approximately $69,845 as of June 30, 2013. The remaining limited partnership investments are unconsolidated and are accounted for under the cost method as allowed under ASC Topic 325, Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects. The Company amortizes the excess of carrying value of the investment over its estimated residual value during the period in which tax credits are allocated to the investors. The Company’s maximum exposure to future loss related to these limited partnerships is limited to the $836,163 recorded investment.

The assets and liabilities of these partnerships consist primarily of apartment complexes and related mortgages. The Company’s carrying value approximates cost or its underlying equity in the net assets of the partnerships. Market quotations are not available for any of the aforementioned partnerships. Management has no knowledge of intervening events since the date of the partnerships’ financial statements that would have had a material effect on the Company’s consolidated financial position or results of operations.

The Company had no remaining cash commitments to these partnerships at June 30, 2013.

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Condensed Consolidated Statements of Comprehensive Income (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 Income And Comprehensive Income [Abstract]
Net income	$ 1,182	$ 1,371	$ 2,068	$ 133
Other comprehensive income (loss):
Change in unrealized holding gains and losses on available-for-sale securities arising during period, net of tax (benefit) of $(703), $246, $(1,022) and $205, respectively	(1,172)	410	(1,704)	342
Total comprehensive income	$ 10	$ 1,781	$ 364	$ 475

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Income Taxes - Schedule of Effective Income Tax Rate (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Tax Disclosure [Abstract]
Income tax expense (benefit) at federal statutory rate			$ 994	$ (77)
Increase (decrease) resulting from:
Tax-exempt interest			(193)	(175)
State income tax expense (benefit), net of federal income taxes			114	(24)
Other			(59)	(84)
Total	$ 512	$ 623	$ 856	$ (360)

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Condensed Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash and Due from Banks	$ 10,628	$ 12,181
Interest Bearing Deposits in Banks	38,351	41,945
Total Cash and Cash Equivalents	48,979	54,126
Federal Funds Sold	5,000	5,000
Investment Securities Available-for-Sale, at fair value	102,621	92,614
Investment Securities Held-to-Maturity, at amortized cost	35,105	21,136
Federal Home Loan Bank Stock, at cost	681	936
Loans, net of allowance for loan losses of $11,635 and $19,278, respectively	312,008	337,400
Premises and Equipment, net	8,697	8,903
Cash Surrender Value of Bank-Owned Life Insurance	13,479	13,303
Accrued Interest Receivable	2,750	3,101
Investment in Limited Partnerships	836	836
Other Real Estate Owned	12,377	13,286
Other Assets	13,173	16,492
Total Assets	555,706	567,133
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	478,086	489,034
Accrued Interest Expense	286	413
Other Liabilities	7,867	8,401
Short-Term Borrowings	456	638
Total Liabilities	486,695	498,486
Commitments and Contingencies
Shareholders' Equity:
Common Stock, par value $0.01 per share, 10,000,000 shares authorized; 7,327,560 shares issued; 6,023,622 shares outstanding	73	73
Surplus	9,284	9,284
Accumulated Other Comprehensive Income, net of tax	1,435	3,139
Retained Earnings	79,355	77,287
Less Treasury Stock: 1,303,938 shares at cost	(21,123)	(21,123)
Noncontrolling Interest	(13)	(13)
Total Shareholders' Equity	69,011	68,647
Total Liabilities and Shareholders' Equity	$ 555,706	$ 567,133

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Loans and Allowance for Loan Losses - Schedule of Number of Loans Modified Troubled Debt Restructuring by Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013 SecurityLoan	Dec. 31, 2012 SecurityLoan
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans	24	24
Pre-Modification Outstanding Principal Balance	$ 15,201	$ 14,054
Post-Modification Principal Balance	8,551	12,516
Subsequent default number of loans	5	10
Recorded Investment	1,210	7,563
Construction, Land Development and Other Land Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans	8	10
Pre-Modification Outstanding Principal Balance	12,580	11,267
Post-Modification Principal Balance	6,280	9,988
Subsequent default number of loans		6
Recorded Investment		7,062
Secured by 1-4 Family Residential Properties [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans	5	4
Pre-Modification Outstanding Principal Balance	449	596
Post-Modification Principal Balance	418	586
Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans	8	6
Pre-Modification Outstanding Principal Balance	1,801	1,811
Post-Modification Principal Balance	1,508	1,586
Subsequent default number of loans	5	2
Recorded Investment	1,210	433
Commercial Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of Loans	3	4
Pre-Modification Outstanding Principal Balance	371	380
Post-Modification Principal Balance	345	356
Commercial [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Subsequent default number of loans		2
Recorded Investment		$ 68

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Summary of Results for Reportable Segments

All intercompany transactions have been eliminated to determine the consolidated balances. The results for the two reportable segments of the Company are included in the following table:

						All
	FUSB			ALC		Other		Eliminations			Consolidated
	(In Thousands of Dollars)
For the three months ended June 30, 2013
Net interest income	$	4,181		$	3,511	$	3	$	—		$	7,695
Provision for loan losses		(200	)		253		—		—			53
Total non-interest income		929			349		1,437		(1,487	)		1,228
Total non-interest expense		4,666			2,529		199		(218	)		7,176
Income before income taxes		644			1,078		1,241		(1,269	)		1,694
Provision for income taxes		96			415		1		—			512
Net income	$	548		$	663	$	1,240	$	(1,269	)	$	1,182
Other significant items:
Total assets	$	557,364		$	71,769	$	75,355	$	(148,782	)	$	555,706
Total investment securities		137,646			—		80		—			137,726
Total loans, net		299,497			68,424		—		(55,913	)		312,008
Investment in subsidiaries		784			—		70,136		(70,915	)		5
Fixed asset additions		33			7		—		—			40
Depreciation expense		137			38		—		—			175
Total interest income from external customers		4,123			4,309		—		—			8,432
Total interest income from affiliates		798			—		3		(801	)		—
For the six months ended June 30, 2013:
Net interest income	$	8,516		$	6,979	$	5	$	—		$	15,500
Provision for loan losses		(162	)		721		—		—			559
Total non-interest income		2,326			685		2,511		(2,671	)		2,851
Total non-interest expense		9,285			5,661		361		(439	)		14,868
Income before income taxes		1,719			1,282		2,155		(2,232	)		2,924
Provision for income taxes		358			496		2		—			856
Net income	$	1,361		$	786	$	2,153	$	(2,232	)	$	2,068
Other significant items:
Fixed asset additions	$	63		$	17	$	—	$	—		$	80
Depreciation expense		261			79		—		—			340
Total interest income from external customers		8,398			8,628		—		—			17,026
Total interest income from affiliates		1,649			—		4		(1,653	)		—

	FUSB			ALC		All Other		Eliminations			Consolidated
	(Dollars in Thousands)
For the three months ended June 30, 2012:
Net interest income	$	4,946		$	3,620	$	5	$	—		$	8,571
Provision for loan losses		20			448		—		—			468
Total non-interest income		957			334		1,666		(1,626	)		1,331
Total non-interest expense		4,707			2,696		219		(182	)		7,440
Income before income taxes		1,176			810		1,452		(1,444	)		1,994
Provision for income taxes		308			314		1		—			623
Net income	$	868		$	496	$	1,451	$	(1,444	)	$	1,371
Other significant items:
Total assets	$	604,227		$	82,382	$	72,921	$	(156,245	)	$	603,285
Total investment securities		112,545			—		75		—			112,620
Total loans, net		347,404			75,549		—		(67,542	)		355,411
Investment in subsidiaries		1,286			—		67,645		(68,926	)		5
Fixed asset additions		58			17		—		—			75
Depreciation expense		141			39		—		—			180
Total interest income from external customers		5,153			4,595		—		—			9,748
Total interest income from affiliates		975			—		5		(980	)		—
For the six months ended June 30, 2012:
Net interest income	$	9,932		$	7,180	$	9	$	—		$	17,121
Provision for loan losses		1,523			1,160		—		—			2,683
Total non-interest income		1,970			658		644		(667	)		2,605
Total non-interest expense		11,703			5,563		369		(365	)		17,270
Income (loss) before income taxes		(1,324	)		1,115		284		(302	)		(227	)
Provision for (benefit from) income taxes		(796	)		433		3		—			(360	)
Net income (loss)	$	(528	)	$	682	$	281	$	(302	)	$	133
Other significant items:
Fixed asset additions	$	112		$	177	$	—	$	—		$	289
Depreciation expense		282			78		—		—			360
Total interest income from external customers		10,594			9,164		—		—			19,758
Total interest income from affiliates		1,983			—		9		(1,992	)		—

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Net Income (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Basic and Diluted Net Income Per Share Calculations

The following table represents the basic and diluted net income per share calculations for the three- and six-month periods ended June 30, 2013 and 2012 (in thousands of dollars, except per share data):

			Weighted		Basic and
			Average		Diluted Net
	Net		Shares		Income
For the Three Months Ended:	Income		Outstanding		Per Share
June 30, 2013	$	1,182		6,023,622	$	0.20
June 30, 2012	$	1,371		6,017,732	$	0.23
For the Six Months Ended:
June 30, 2013	$	2,068		6,023,622	$	0.34
June 30, 2012	$	133		6,017,410	$	0.02

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Loans and Allowance for Loan Losses - Additional Information (Detail) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013 Segment	Dec. 31, 2012
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Number of portfolio segments	8
Related party loans and commitments	$ 3,743,077	$ 2,468,563
New loans to parties	1,509,242	310,265
Repayments of loan	235,807	747,536
Accrued interest on loans, discontinued amount	14,847,248	23,618,330
Accrued interest on loans	380,877	1,058,377
Interest income actually recorded	20,626	157,601
Accruing loans past due 90 days or more amounted	1,673,624	1,570,548
Trouble Debt restructuring Modified period term	6 months
Period of repayment performance under the modified loan terms	6 months
Non-accruing loans restructured and remained on nonaccrual status	8,332,305	12,397,049
Troubled debt restructuring evaluated impairment	500,000
Allowance for loans losses	$ 1,291,911	$ 6,322,593
Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Percentage of loan portfolio	70.30%	70.90%

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Other Real Estate Owned - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013
Real Estate [Abstract]
Maximum period for recording the adjustments to loan losses	60 days

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Investment Securities - Scheduled Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Investments Debt And Equity Securities [Abstract]
Available-for Sale, Maturing within one year, Amortized Cost	$ 689
Available-for Sale, Maturing after one to five years, Amortized Cost	7,260
Available-for Sale, Maturing after five to ten years, Amortized Cost	32,793
Available-for Sale, Maturing after ten years, Amortized Cost	59,583
Available-for Sale, Amortized Cost, Total	100,325
Available-for Sale, Maturing within one year, Estimated Fair Value	694
Available-for Sale, Maturing after one to five years, Estimated Fair Value	7,644
Available-for Sale, Maturing after five to ten years, Estimated Fair Value	33,365
Available-for Sale, Maturing after ten years, Estimated Fair Value	60,918
Available-for Sale, Estimated Fair Value, Total	102,621
Held-to-maturity, Maturing within one year, Amortized Cost
Held-to-maturity, Maturing after one to five years, Amortized Cost
Held-to-maturity, Maturing after five to ten years, Amortized Cost	15,195
Held-to-maturity, Maturing after ten years, Amortized Cost	19,910
Held-to-Maturity, Amortized Cost, Total	35,105
Held-to-maturity, Maturing within one year, Estimated Fair Value
Held-to-maturity, Maturing after one to five years, Estimated Fair Value
Held-to-maturity, Maturing after five to ten years, Estimated Fair Value	14,995
Held-to-maturity, Maturing after ten years, Estimated Fair Value	19,458
Held-to-Maturity, Estimated Fair Value, Total	$ 34,453

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Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Nonrecurring Basis (Detail) (Nonrecurring Fair Value Measurements [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	$ 18,042	$ 14,956
Foreclosed Property and Other Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	3,275	11,368
Level 1 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 1 [Member] | Foreclosed Property and Other Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 2 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 2 [Member] | Foreclosed Property and Other Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 3 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	18,042	14,956
Level 3 [Member] | Foreclosed Property and Other Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	$ 3,275	$ 11,368

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Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Detail) (Nonrecurring Fair Value Measurements [Member], USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 18,042	$ 14,956
Valuation Technique	Multiple data points,including discount to appraised value of collateral based on recent market activity
Quantitative Range of Unobservable Inputs (Weighted-Average)	9.50%
Foreclosed Property and Other Real Estate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 3,275	$ 11,368
Valuation Technique	Discount to appraised value of property based on recent market activity for sales of similar properties
Quantitative Range of Unobservable Inputs (Weighted-Average)	9.50%
Minimum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs (Weighted-Average)	9.00%
Minimum [Member] | Foreclosed Property and Other Real Estate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs (Weighted-Average)	9.00%
Maximum [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs (Weighted-Average)	10.00%
Maximum [Member] | Foreclosed Property and Other Real Estate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quantitative Range of Unobservable Inputs (Weighted-Average)	10.00%

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Investment Securities

6 Months Ended

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Investment Securities

6. INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity at June 30, 2013 and December 31, 2012 are as follows:

	Available-for-Sale
	June 30, 2013
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
Mortgage-backed securities	$	83,566	$	2,046	$	(636	)	$	84,976
Obligations of states, counties and political subdivisions		12,593		1,103		—			13,696
U.S. treasury securities		4,166		—		(217	)		3,949
Total	$	100,325	$	3,149	$	(853	)	$	102,621
	Held-to-Maturity
	June 30, 2013
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
U.S. agencies	$	35,105	$	—	$	(652	)	$	34,453
	Available-for-Sale
	December 31, 2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
Mortgage-backed securities	$	74,117	$	3,468	$	(32	)	$	77,553
Obligations of states, counties and political subdivisions		13,395		1,586		—			14,981
U.S. treasury securities		80		—		—			80
Total	$	87,592	$	5,054	$	(32	)	$	92,614

	Held-to-Maturity
	December 31, 2012
	Amortized		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
	(In Thousands of Dollars)
U.S. agencies	$	21,136	$	56	$	(7	)	$	21,185

The scheduled maturities of investment securities available-for-sale and held-to-maturity at June 30, 2013 are presented in the following table:

	Available-for-Sale				Held-to-Maturity
	Amortized		Estimated Fair		Amortized		Estimated Fair
	Cost		Value		Cost		Value
	(In Thousands of Dollars)
Maturing within one year	$	689	$	694	$	—	$	—
Maturing after one to five years		7,260		7,644		—		—
Maturing after five to ten years		32,793		33,365		15,195		14,995
Maturing after ten years		59,583		60,918		19,910		19,458
Total	$	100,325	$	102,621	$	35,105	$	34,453

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following table reflects the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012. Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) whether the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. At June 30, 2013 and December 31, 2012, based on the aforementioned considerations, management did not record an other-than-temporary impairment on any security that was in an unrealized loss position.

	Available-for-Sale
	June 30, 2013
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
Mortgage-backed securities	$	29,615	$	(617	)	$	322	$	(19	)
U.S. treasury securities		3,869		(217	)		—		—
	$	33,484	$	(834	)	$	322	$	(19	)
	Held-to-Maturity
	June 30, 2013
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. agencies	$	34,453	$	(652	)	$	—	$	—

	Available-for-Sale
	December 31, 2012
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. treasury securities	$	80	$	—		$	—	$	—
Mortgage-backed securities		1,173		(3	)		5,617		(29	)
	$	1,253	$	(3	)	$	5,617	$	(29	)

	Held-to-Maturity
	December 31, 2012
	Less than 12 Months					12 Months or More
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(In Thousands of Dollars)
U.S. agencies	$	7,491	$	(7	)	$	—	$	—

As of June 30, 2013, two debt securities had been in a loss position for more than twelve months, and twenty-eight debt securities had been in a loss position for less than twelve months. The losses for all securities are considered to be a direct result of the effect that the current interest rate environment has on the value of debt securities and not related to the creditworthiness of the issuers. Further, the Company has the current intent and ability to retain its investments in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Therefore, the Company has not recognized any other-than-temporary impairments.

Investment securities available-for-sale with a carrying value of $64.9 million and $61.6 million at June 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes.

There were no gross gains and losses realized on sales of securities available-for-sale during the periods ended June 30, 2013 or December 31, 2012, respectively.

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Guarantees, Commitments and Contingencies - Summary of Commitments and Contingent Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Summary Of Commitments And Contingent Liabilities [Line Items]
Commitments and contingent liabilities
Standby Letters of Credit [Member]
Summary Of Commitments And Contingent Liabilities [Line Items]
Commitments and contingent liabilities	1,022	1,092
Commitments to Extend Credit [Member]
Summary Of Commitments And Contingent Liabilities [Line Items]
Commitments and contingent liabilities	$ 29,482	$ 32,123

XML

Guarantees, Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Summary of Commitments and Contingent Liabilities

A summary of these commitments and contingent liabilities is presented below:

	June 30, 2013		December 31, 2012
	(Dollars in Thousands)
Standby Letters of Credit	$	1,022	$	1,092
Commitments to Extend Credit	$	29,482	$	32,123

XML

Investments in Limited Partnerships - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2013
Equity Method Investments And Joint Ventures [Abstract]
Consolidated VIE limited partnership interest	99.90%
Net increase to total assets due to consolidation	$ 69,845
Maximum exposure to future loss related to limited partnerships recorded investment	836,163
Remaining cash commitments	$ 0

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Other Real Estate Owned

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Other Real Estate Owned

9. OTHER REAL ESTATE OWNED

Other real estate and certain other assets acquired in foreclosure are reported at the lower of the investment in the loan or fair value of the property less estimated costs to sell. The following table summarizes foreclosed property activity for the six months ended June 30, 2013 and 2012:

	June 30, 2013
	FUSB			ALC			Total
	(In Thousands of Dollars
Beginning balance	$	11,089		$	2,197		$	13,286
Transfers from loans		1,735			263			1,998
Sales proceeds		(1,011	)		(830	)		(1,841	)
Gross gains		51			21			72
Gross losses		(109	)		(667	)		(776	)
Net losses		(58	)		(646	)		(704	)
Impairment		(153	)		(209	)		(362	)
Ending balance	$	11,602		$	775		$	12,377

	June 30, 2012
	FUSB			ALC			Total
	(In Thousands of Dollars)
Beginning balance	$	12,607		$	4,168		$	16,775
Transfers from loans		2,732			456			3,188
Sales proceeds		(697	)		(938	)		(1,635	)
Gross gains		9			27			36
Gross losses		(43	)		(453	)		(496	)
Net losses		(34	)		(426	)		(460	)
Impairment		(2,604	)		(259	)		(2,863	)
Ending balance	$	12,004		$	3,001		$	15,005

Valuation adjustments are primarily recorded in other non-interest expense; adjustments are also recorded as a charge to the allowance for loan losses if incurred within 60 days after the date of transfer from loans. Valuation adjustments are primarily post-foreclosure write-downs that are a result of declining property values based on updated appraisals or other indications of value, such as offers to purchase. Foreclosed property sold represents the net book value of the properties sold.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company follows the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.

ASC Topic 820 requires disclosure of fair value information about financial instruments, whether or not recognized on the face of the consolidated statements of financial condition, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather represent a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. In determining fair value, the Company uses various methods, including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

• Level 1 — Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes equity securities in banks that are publicly traded. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

• Level 2 — Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.

• Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

The following is a description of the valuation methodologies used for instruments measured at fair value and recognized in the accompanying consolidated statements of financial condition, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-Sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include exchange traded equities. Level 2 securities include U.S. treasury and agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. Level 2 fair values are obtained from quoted prices of securities with similar characteristics. In certain cases, where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Impaired Loans

Estimates of fair value are determined based on a variety of information, including the use of available appraisals, estimates of market value by licensed appraisers or local real estate brokers and the knowledge and experience of the Bank’s management related to values of properties in the Bank’s market areas. Management takes into consideration the type, location and occupancy of the property, as well as current economic conditions in the area in which the property is located, in assessing estimates of fair value. Accordingly, fair value estimates for impaired loans are classified as Level 3.

Foreclosed Assets

Estimates of fair values are determined based on a variety of information, including the use of available appraisals, estimates of market value by licensed appraisers or local real estate brokers and the knowledge and experience of the Bank’s senior lending officers related to values of properties in the Bank’s market areas. These officers take into consideration the type, location and occupancy of the property, as well as current economic conditions in the area in which the property is located, in assessing estimates of fair value. Accordingly, the fair value estimates for foreclosed real estate are classified as Level 3.

Financial assets measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012 are summarized below.

	Fair Value Measurements at June 30, 2013 Using
	Totals At June 30, 2013		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Mortgage-backed securities	$	84,976	$	—	$	84,976	$	—
Obligations of states, counties and political subdivisions		13,696		—		13,696		—
U.S. treasury securities		3,949		—		3,949		—
	Fair Value Measurements at December 31, 2012 Using
	Totals At December 31, 2012		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Mortgage-backed securities	$	77,553	$	—	$	77,553	$	—
Obligations of states, counties and political subdivisions		14,981		—		14,981		—
U.S. treasury securities		80		—		80		—

Non-Financial Assets and Non-Financial Liabilities Measured at Fair Value

The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.

The Company rarely transfers assets and liabilities measured at fair value between Level 1 and Level 2 measurements. There were no such transfers during the quarter ended June 30, 2013 or the year ended December 31, 2012. Trading account assets and securities available-for-sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the best method of pricing for an individual security. Such transfers are accounted for as if they occurred at the beginning of a reporting period.

Financial assets measured at fair value on a nonrecurring basis at June 30, 2013 and December 31, 2012 are summarized below.

	Fair Value Measurements at June 30, 2013 Using
	Totals At June 30, 2013		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Impaired loans	$	18,042	$	—	$	—	$	18,042
Foreclosed property and other real estate		3,275		—		—		3,275
	Fair Value Measurements at December 31, 2012 Using
	Totals At December 31, 2012		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In Thousands of Dollars)
Impaired loans	$	14,956	$	—	$	—	$	14,956
Foreclosed property and other real estate		11,368		—		—		11,368

The Company is required to measure certain assets at fair value on a nonrecurring basis, including impaired loans. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the present value of estimated future cash flows using the loan’s existing rate or the fair value of collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. When an impaired loan is determined to be collateral dependent, the fair value is determined through the utilization of a third-party appraisal. It is the policy of the Company to update appraisals every 18-24 months. The types of collateral influence the frequency of obtaining updated appraisals. Management knows the market trends of collateral values well and monitors trends in sales and valuations in all of the various categories of collateral. These trends influence how often new appraisals are obtained within the 18-24 month timeframe. For example, a significant number of currently impaired loans are collateralized by residential subdivision lots. The values of this type of collateral have been volatile in recent years, and, therefore, appraisals are generally updated at the lower end of the timeframe (i.e., closer to 18 months), while timberland appraisals would be updated closer to the upper end of the timeframe (i.e., closer to 24 months), as these values have remained more stable. Any observed trend indicating reduced valuations would require updated appraisals. Based on experience, current appraisals are discounted 9% for estimated costs associated with foreclosures and costs to sell. If a loan is evaluated for impairment under ASC Topic 310-10-35, Accounting by Creditors for Impairment of a Loan, and the appraisal is outdated, a new appraisal is ordered. If the new appraisal is not received in sufficient time to assess any required impairment to meet financial reporting obligations, the old appraisal may be discounted to reflect values observed in similar properties. These discounts have ranged from 20% to 30% and are based on the most recent valuation/appraisal information available related to that particular type of loan/collateral. After the new appraisal is obtained, the analysis is updated to reflect the new valuation. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan is confirmed. Loans, net of specific allowances, subject to this evaluation amounted to $18,041,521 and $14,956,079 as of June 30, 2013 and December 31, 2012, respectively. This valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis.

During 2013, certain foreclosed assets, upon initial recognition, were measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the foreclosed asset. The fair value of a foreclosed asset, upon initial recognition, is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. Foreclosed assets measured at fair value upon initial recognition totaled $1,936,664 and $2,097,440 (utilizing Level 3 valuation inputs) as of June 30, 2013 and December 31, 2012, respectively. In connection with the measurement and initial recognition of the foregoing foreclosed assets, the Company has recognized charge-offs of the allowance for possible loan losses totaling approximately $375,667 and $407,043 during the periods ended June 30, 2013 and December 31, 2012, respectively. Foreclosed assets totaling $1,338,363 and $9,270,443 (utilizing Level 3 valuation inputs) were remeasured at fair value at June 30, 2013 and December 31, 2012, respectively, resulting in impairment loss of $361,775 and $3,582,596 on other real estate owned during the periods ended June 30, 2013 and December 31, 2012, respectively.

The following table presents detailed information regarding assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2013. The table includes the valuation techniques and the significant unobservable inputs utilized. The range of each unobservable input, as well as the weighted average within the range utilized at June 30, 2013, are both included. Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

	Level 3 Significant Unobservable Input Assumptions
	Fair Value June 30, 2013		Valuation Technique	Unobservable Input	Quantitative Range of  Unobservable Inputs (Weighted- Average)
	(In Thousands of Dollars, except for Percentages)
Nonrecurring fair value measurements:
Impaired loans	$	18,042	Multiple data points, including discount to appraised value of collateral based on recent market activity	Appraisal compatibility adjustment (discount)	9% - 10% (9.5%)
Foreclosed property and other real estate	$	3,275	Discount to appraised value of property based on recent market activity for sales of similar properties	Appraisal compatibility adjustment (discount)	9% - 10% (9.5%)

Non-Recurring Fair Value Measurements Using Significant Unobservable Inputs:

Impaired loans

Impaired loans are valued based on multiple data points indicating the fair value for each loan. The primary data point for non-performing loans is the appraisal value of the underlying collateral to which a discount is applied. Management establishes this discount or comparability adjustment based on recent sales of similar property types. As liquidity in the market increases or decreases, the comparability adjustment and the resulting asset valuation are impacted.

Foreclosed property and other real estate

Foreclosed property and other real estate under contract for sale are valued based on contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet.

Financial Instruments

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, due from banks and federal funds sold: The carrying amount of cash, due from banks and federal funds sold approximates fair value.

Federal Home Loan Bank (“FHLB”): Based on the redemption provision of the FHLB, the stock has no quoted market value and is carried at cost.

Securities: Fair values of securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on market prices of comparable instruments.

Accrued interest receivable and payable: The carrying amount of accrued interest approximates fair value.

Loans, net: For variable-rate loans, fair values are based on carrying values. Fixed-rate commercial loans, other installment loans and certain real estate mortgage loans are valued using discounted cash flows. The discount rate used to determine the present value of these loans is based on interest rates currently being charged by the Company on comparable loans as to credit risk and term.

Demand and savings deposits: The fair values of demand deposits are equal to the carrying value of such deposits. Demand deposits include non-interest bearing demand deposits, savings accounts, NOW accounts and money market demand accounts.

Time deposits: The fair values of relatively short-term time deposits are equal to their carrying values. Discounted cash flows are used to value long-term time deposits. The discount rate used is based on interest rates currently being offered by the Company on comparable deposits as to amount and term.

Short-term borrowings: These borrowings may consist of federal funds purchased, securities sold under agreements to repurchase and the floating rate borrowings from the FHLB account. Due to the short-term nature of these borrowings, fair values approximate carrying values.

Long-term debt: The fair value of this debt is estimated using discounted cash flows based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements as of June 30, 2013 and December 31, 2012.

Off-balance sheet instruments: The carrying amount of commitments to extend credit and standby letters of credit approximates fair value. The carrying amount of the off-balance sheet financial instruments is based on fees currently charged to enter into such agreements.

The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Carrying Amount		Estimated Fair  Value		Level 1		Level 2		Level 3
	(In Thousands of Dollars)
Assets:
Cash and cash equivalents	$	48,979	$	48,979	$	48,979	$	—	$	—
Investment securities available-for-sale		102,621		102,621		—		102,621		—
Investment securities held-to-maturity		35,105		34,453		—		34,453		—
Federal funds sold		5,000		5,000		5,000		—		—
Federal Home Loan Bank stock		681		681		—		681		—
Loans, net of allowance for loan losses		312,008		312,146		—		—		312,146
Liabilities:
Deposits		478,086		478,786		—		478,786		—
Short-term borrowings		456		456		—		456		—

	December 31, 2012
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In Thousands of Dollars)
Assets:
Cash and cash equivalents	$	54,126	$	54,126	$	54,126	$	—	$	—
Investment securities available-for-sale		92,614		92,614		—		92,614		—
Investment securities held-to-maturity		21,136		21,185		—		21,185		—
Federal funds sold		5,000		5,000		5,000		—		—
Federal Home Loan Bank stock		936		936		—		936		—
Loans, net of allowance for loan losses		337,400		339,230		—		—		339,230
Liabilities:
Deposits		489,034		490,596		—		490,596		—
Short-term borrowings		638		638		—		638		—

XML

Condensed Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,068,000	$ 133,000
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	340,000	360,000
Amortization of premiums and discounts, net	486,000	607,000
Provision for loan losses	559,000	2,683,000
Impairment of OREO	362,000	2,864,000
Loss on sale of OREO	704,000	460,000
Net other operating activities	3,801,000	1,054,000
Total adjustments	6,252,000	8,028,000
Net cash provided by operating activities	8,320,000	8,161,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and prepayments of investment securities, available for sale	20,077,000	22,911,000
Proceeds from maturities and prepayments of investment securities, held to maturity	9,223,000	1,170,000
Proceeds from redemption of Federal Home Loan Bank stock	256,000	1,444,000
Proceeds from the sale of other real estate	1,841,000	1,633,000
Purchase of premises and equipment	(80,000)	(289,000)
Purchase of investment securities, available-for-sale	(33,298,000)	(8,258,000)
Purchase of investment securities, held-to-maturity	(23,191,000)	(5,161,000)
Net change in loan portfolio	22,835,000	19,803,000
Net cash (used in) provided by investing activities	(2,337,000)	33,253,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in customer deposits	(10,948,000)	174,000
Decrease in borrowings	(182,000)	(19,642,000)
Reissuance of treasury stock		58,000
Net cash used in financing activities	(11,130,000)	(19,410,000)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(5,147,000)	22,004,000
CASH AND CASH EQUIVALENTS, beginning of period	54,126,000	52,797,000
CASH AND CASH EQUIVALENTS, end of period	48,979,000	74,801,000
Cash paid for:
Interest	1,653,000	2,853,000
Income taxes	11,000	82,000
NON-CASH TRANSACTIONS:
Other real estate acquired in settlement of loans	$ 1,998,000	$ 3,187,000

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Loans and Allowance for Loan Losses - Schedule of Change in Troubled Debt Restructuring (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable Modifications Number Of Contracts [Line Items]
Post-Modification Principal Balance	$ 8,551	$ 12,516
Change	(3,965)
Construction, Land Development and Other Land Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Post-Modification Principal Balance	6,280	9,988
Change	(3,708)
Secured by 1-4 Family Residential Properties [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Post-Modification Principal Balance	418	586
Change	(168)
Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Post-Modification Principal Balance	1,508	1,586
Change	(78)
Commercial Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Post-Modification Principal Balance	345	356
Change	$ (11)

XML

Loans and Allowance for Loan Losses - Schedule of Aging Analysis of Past Due Loans (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 328,839,000	$ 361,779,000
Accruing loans past due 90 days or more amounted	1,673,624	1,570,548
Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	15,354,000	30,635,000
Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	65,078,000	71,497,000
Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	22,415,000	24,187,000
Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	127,689,000	129,235,000
Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	792,000	801,000
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	37,853,000	42,903,000
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	59,064,000	61,484,000
Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	594,000	1,037,000
ALC [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,250,000	1,337,000
60-89 Days Past Due	659,000	782,000
Greater than 90 Days	1,800,000	2,234,000
Total Past Due	3,709,000	4,353,000
Current	72,755,000	75,695,000
Total loans	76,464,000	80,048,000
Accruing loans past due 90 days or more amounted	1,674,000	1,571,000
ALC [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current
Total loans
Accruing loans past due 90 days or more amounted
ALC [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	303,000	348,000
60-89 Days Past Due	175,000	173,000
Greater than 90 Days	768,000	1,075,000
Total Past Due	1,246,000	1,596,000
Current	28,405,000	31,451,000
Total loans	29,651,000	33,047,000
Accruing loans past due 90 days or more amounted	670,000	851,000
ALC [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current
Total loans
Accruing loans past due 90 days or more amounted
ALC [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current
Total loans
Accruing loans past due 90 days or more amounted
ALC [Member] | Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current
Total loans
Accruing loans past due 90 days or more amounted
ALC [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current
Total loans
Accruing loans past due 90 days or more amounted
ALC [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	947,000	989,000
60-89 Days Past Due	484,000	609,000
Greater than 90 Days	1,032,000	1,159,000
Total Past Due	2,463,000	2,757,000
Current	44,350,000	44,244,000
Total loans	46,813,000	47,001,000
Accruing loans past due 90 days or more amounted	1,004,000	720,000
ALC [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current
Total loans
Accruing loans past due 90 days or more amounted
FUSB [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	2,750,000	2,530,000
60-89 Days Past Due	345,000	1,878,000
Greater than 90 Days	11,201,000	19,795,000
Total Past Due	14,296,000	24,203,000
Current	238,079,000	257,528,000
Total loans	252,375,000	281,731,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Construction, Land Development and Other Land Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due		456,000
60-89 Days Past Due		1,126,000
Greater than 90 Days	4,141,000	10,329,000
Total Past Due	4,141,000	11,911,000
Current	11,213,000	18,724,000
Total loans	15,354,000	30,635,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	379,000	1,027,000
60-89 Days Past Due	116,000	572,000
Greater than 90 Days	1,318,000	1,106,000
Total Past Due	1,813,000	2,705,000
Current	33,614,000	35,745,000
Total loans	35,427,000	38,450,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Secured by Multi-family Residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	767,000
60-89 Days Past Due
Greater than 90 Days	1,455,000	2,884,000
Total Past Due	2,222,000	2,884,000
Current	20,193,000	21,303,000
Total loans	22,415,000	24,187,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Secured by Non-farm, Non-residential Properties [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	561,000	210,000
60-89 Days Past Due	165,000	32,000
Greater than 90 Days	4,186,000	4,930,000
Total Past Due	4,912,000	5,172,000
Current	122,777,000	124,063,000
Total loans	127,689,000	129,235,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current	792,000	801,000
Total loans	792,000	801,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	816,000	430,000
60-89 Days Past Due	60,000	59,000
Greater than 90 Days	45,000	480,000
Total Past Due	921,000	969,000
Current	36,932,000	41,934,000
Total loans	37,853,000	42,903,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	227,000	407,000
60-89 Days Past Due	4,000	89,000
Greater than 90 Days	56,000	66,000
Total Past Due	287,000	562,000
Current	11,964,000	13,921,000
Total loans	12,251,000	14,483,000
Accruing loans past due 90 days or more amounted
FUSB [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due
60-89 Days Past Due
Greater than 90 Days
Total Past Due
Current	594,000	1,037,000
Total loans	594,000	1,037,000
Accruing loans past due 90 days or more amounted

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Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) (Recurring Fair Value Measurements [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	$ 84,976	$ 77,553
U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	3,949	80
Obligations of States, Counties and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	13,696	14,981
Level 1 [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 1 [Member] | U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 1 [Member] | Obligations of States, Counties and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 2 [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	84,976	77,553
Level 2 [Member] | U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	3,949	80
Level 2 [Member] | Obligations of States, Counties and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value	13,696	14,981
Level 3 [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 3 [Member] | U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value
Level 3 [Member] | Obligations of States, Counties and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value

XML

Segment Reporting - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013 Segment
Segment Reporting [Abstract]
Number of reportable operating segments	2

XML

Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

12. INCOME TAXES

The Company files a consolidated income tax return with the federal government and the state of Alabama. ALC files a Mississippi state income tax return related to operations from its Mississippi branches. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and the states in which it files for the years ended December 31, 2009 through 2012.

As of June 30, 2013, the Company had no unrecognized tax benefits related to federal or state income tax matters and does not anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to June 30, 2013. As of June 30, 2013, the Company had accrued no interest and no penalties related to uncertain tax positions.

The consolidated tax expense (benefit) differed from the amount computed by applying the federal statutory income tax rate of 34.0%, as described in the following table:

	June 30, 2013			June 30, 2012
	(In Thousands of Dollars)
Income tax expense (benefit) at federal statutory rate	$	994		$	(77	)
Increase (decrease) resulting from:
Tax-exempt interest		(193	)		(175	)
State income tax expense (benefit), net of federal income taxes		114			(24	)
Other		(59	)		(84	)
Total	$	856		$	(360	)

The Company’s determination of the realization of the net deferred tax asset is based on its assessment of all available positive and negative evidence. The Company is currently in a three-year cumulative loss position, which represents negative evidence. As of June 30, 2013, of the $7.5 million net deferred tax asset, $4.4 million relates to the provision for loan losses, $1.8 million relates to impairment of other real estate owned (“OREO”) and $1.6 million resulted from deferred compensation. As of December 31, 2012, of the $9.5 million net deferred tax asset, $7.3 million relates to the provision for loan losses, $2.3 million relates to impairment of OREO and $1.5 million resulted from deferred compensation.

At June 30, 2013, positive evidence supporting the realization of the deferred tax asset included a strong earnings history, exclusive of loan loss provisions and other real estate write-downs, which created the most significant portion of the deferred asset. The majority of these provisions and write-downs resulted from one type of loan – real estate development. The Company believes that impaired loans of this type have been identified and adequately reserved. Management has projected taxable income over the next five years, resulting from reduced provisions for loan losses and write-downs of OREO. Except in unusual circumstances, the Company no longer invests in these types of loans.

Along with the taxable income in 2012 and the first and second quarters of 2013, the Company has projected future taxable income over the next five tax years, although there can be no assurance that such income will be realized due to unanticipated changes in economic, competitive and other factors. Further positive evidence includes the Company’s strong capital position and history of significant pre-tax earnings, which the Company believes outweighs the negative evidence of recent pre-tax losses. Accordingly, a valuation allowance has not been established at June 30, 2013.

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Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Loans and Allowance for Loan Losses

8. LOANS AND ALLOWANCE FOR LOAN LOSSES

At June 30, 2013 and December 31, 2012, the composition of the loan portfolio by reporting segment and portfolio segment was as follows:

	June 30, 2013
	FUSB		ALC		Total
	(In Thousands of Dollars)
Real estate loans:
Construction, land development and other land loans	$	15,354	$	—	$	15,354
Secured by 1-4 family residential properties		35,427		29,651		65,078
Secured by multi-family residential properties		22,415		—		22,415
Secured by non-farm, non-residential properties		127,689		—		127,689
Other		792		—		792
Commercial and industrial loans		37,853		—		37,853
Consumer loans		12,251		46,813		59,064
Other loans		594		—		594
Total loans		252,375		76,464		328,839
Less: Unearned Interest		169		5,027		5,196
Allowance for loan losses		8,622		3,013		11,635
Net loans	$	243,584	$	68,424	$	312,008

	December 31, 2012
	FUSB		ALC		Total
	(In Thousands of Dollars)
Real estate loans:
Construction, land development and other land loans	$	30,635	$	—	$	30,635
Secured by 1-4 family residential properties		38,450		33,047		71,497
Secured by multi-family residential properties		24,187		—		24,187
Secured by non-farm, non-residential properties		129,235		—		129,235
Other		801		—		801
Commercial and industrial loans		42,903		—		42,903
Consumer loans		14,483		47,001		61,484
Other loans		1,037		—		1,037
Total loans	$	281,731	$	80,048	$	361,779
Less: Unearned Interest		175		4,926		5,101
Allowance for loan losses		15,765		3,513		19,278
Net loans	$	265,791	$	71,609	$	337,400

The Company grants commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 70.3% and 70.9% of the portfolio was concentrated in loans secured by real estate located primarily within a single geographic region of the United States as of June 30, 2013 and December 31, 2012, respectively.

Portfolio Segments

The Company has divided the loan portfolio into eight portfolio segments, each with different risk characteristics and methodologies for assessing the risk described as follows:

Construction, land development and other land loans – Commercial construction, land and land development loans include the development of residential housing projects, loans for the development of commercial and industrial use property and loans for the purchase and improvement of raw land. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrower.

Secured by 1–4 family residential properties – These loans include conventional mortgage loans on one-to-four family residential properties. These properties may serve as the borrower’s primary residence, vacation home or investment property. Also included in this portfolio are home equity loans and lines of credit. This type of lending, which is secured by a first or second mortgage on the borrower’s residence, allows customers to borrow against the equity in their home.

Secured by multi-family residential properties – These are mortgage loans secured by apartment buildings.

Secured by non-farm, non-residential properties – Commercial real estate loans include loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers or other commercial property. These loans are generally guaranteed by the principals of the borrower.

Other real estate loans – Other real estate loans are loans primarily for agricultural production, secured by mortgages on farm land.

Commercial and industrial loans – Includes loans to commercial customers for use in normal business to finance working projects. These credits may be loans and lines of credit to financially strong borrowers, secured by inventories, equipment or receivables, and are generally guaranteed by the principals of the borrower.

Consumer loans – Includes a variety of secured and unsecured personal loans, including automobile loans, loans for household and personal purposes and all other direct consumer installment loans.

Other loans – Other loans comprise overdrawn checking accounts reclassified to loans and overdraft lines of credit.

Related Party Loans

In the ordinary course of business, the Bank makes loans to certain officers and directors of USBI, the Bank and ALC, including companies with which they are associated. These loans are made on the same terms as those prevailing for comparable transactions with others. Such loans do not represent more than normal risk of collectibility, nor do they present other unfavorable features. The amounts of such related party loans and commitments at June 30, 2013 and December 31, 2012 were $3,743,077 and $2,468,563, respectively. During the quarter ended June 30, 2013, new loans to these parties totaled $1,509,242, and repayments by active related parties were $235,807. During the year ended December 31, 2012, new loans to these parties totaled $310,265, and repayments by active related parties were $747,536.

Allowance for Loan Losses

The following tables present changes in the allowance for loan losses by reporting segment and loan type as of June 30, 2013 and December 31, 2012:

	FUSB
	June 30, 2013
			Commercial					Residential
	Commercial		Real Estate			Consumer		Real Estate		Other			Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	977	$	14,216		$	168	$	338	$	66		$	—	$	15,765
Charge-offs		448		6,340			116		190		2			—		7,096
Recoveries		39		27			44		3		2			—		115
Provision		534		(895	)		37		203		(41	)		—		(162	)
Ending balance		1,102		7,008			133		354		25			—		8,622
Ending balance individually evaluated for impairment		399		4,378			—		—		—			—		4,777
Ending balance collectively evaluated for impairment	$	703	$	2,630		$	133	$	354	$	25		$	—	$	3,845
Loan receivables:
Ending balance		37,853		166,250			12,251		35,427		594			—		252,375
Ending balance individually evaluated for impairment		1,263		40,614			—		306		—			—		42,183
Ending balance collectively evaluated for impairment	$	36,590	$	125,636		$	12,251	$	35,121	$	594		$	—	$	210,192

	ALC
	June 30, 2013
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	—	$	—	$	2,733	$	780	$	—	$	—	$	3,513
Charge-offs		—		—		1,403		282		—		—		1,685
Recoveries		—		—		454		10		—		—		464
Provision		—		—		588		133		—		—		721
Ending balance		—		—		2,372		641		—		—		3,013
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	2,372	$	641	$	—	$	—	$	3,013
Loan receivables:
Ending balance		—		—		46,813		29,651		—		—		76,464
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	46,813	$	29,651	$	—	$	—	$	76,464

	FUSB & ALC
	June 30, 2013
			Commercial					Residential
	Commercial		Real Estate			Consumer		Real Estate		Other			Unallocated		Total
Allowance for loan losses:	(In Thousands of Dollars)
Beginning balance	$	977	$	14,216		$	2,901	$	1,118	$	66		$	—	$	19,278
Charge-offs		448		6,340			1,519		472		2			—		8,781
Recoveries		39		27			498		13		2			—		579
Provision		534		(895	)		625		336		(41	)		—		559
Ending balance		1,102		7,008			2,505		995		25			—		11,635
Ending balance individually evaluated for impairment		399		4,378			—		—		—			—		4,777
Ending balance collectively evaluated for impairment	$	703	$	2,630		$	2,505	$	995	$	25		$	—	$	6,858
Loan receivables:
Ending balance		37,853		166,250			59,064		65,078		594			—	$	328,839
Ending balance individually evaluated for impairment		1,263		40,614			—		306		—			—		42,183
Ending balance collectively evaluated for impairment	$	36,590	$	125,636		$	59,064	$	64,772	$	594		$	—	$	286,656

	FUSB
	December 31, 2012
			Commercial					Residential
	Commercial		Real Estate		Consumer			Real Estate			Other		Unallocated			Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	889	$	16,533	$	306		$	684		$	78	$	201		$	18,691
Charge-offs		1,278		3,395		199			199			16		—			5,087
Recoveries		156		606		79			24			2		—			867
Provision		1,210		472		(18	)		(171	)		2		(201	)		1,294
Ending balance		977		14,216		168			338			66		—			15,765
Ending balance individually evaluated for impairment		406		10,818		—			—			—		—			11,224
Ending balance collectively evaluated for impairment	$	571	$	3,398	$	168		$	338		$	66	$	—		$	4,541
Loan receivables:
Ending balance		42,903		184,858		14,483			38,450			1,037		—			281,731
Ending balance individually evaluated for impairment		1,085		52,893		—			325			—		—			54,303
Ending balance collectively evaluated for impairment	$	41,818	$	131,965	$	14,483		$	38,125		$	1,037	$	—		$	227,428

	ALC
	December 31, 2012
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated		Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	—	$	—	$	2,542	$	1,034	$	—	$	—	$	3,576
Charge-offs		—		—		3,249		713		—		—		3,962
Recoveries		—		—		815		40		—		—		855
Provision		—		—		2,625		419		—		—		3,044
Ending balance		—		—		2,733		780		—		—		3,513
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	2,733	$	780	$	—	$	—	$	3,513
Loan receivables:
Ending balance		—		—		47,001		33,047		—		—		80,048
Ending balance individually evaluated for impairment		—		—		—		—		—		—		—
Ending balance collectively evaluated for impairment	$	—	$	—	$	47,001	$	33,047	$	—	$	—	$	80,048

	FUSB & ALC
	December 31, 2012
			Commercial				Residential
	Commercial		Real Estate		Consumer		Real Estate		Other		Unallocated			Total
	(In Thousands of Dollars)
Allowance for loan losses:
Beginning balance	$	889	$	16,533	$	2,848	$	1,718	$	78	$	201		$	22,267
Charge-offs		1,278		3,395		3,448		912		16		—			9,049
Recoveries		156		606		894		64		2		—			1,722
Provision		1,210		472		2,607		248		2		(201	)		4,338
Ending balance		977		14,216		2,901		1,118		66		—			19,278
Ending balance individually evaluated for impairment		406		10,818		—		—		—		—			11,224
Ending balance collectively evaluated for impairment	$	571	$	3,398	$	2,901	$	1,118	$	66	$	—		$	8,054
Loan receivables:
Ending balance		42,903		184,858		61,484		71,497		1,037		—			361,779
Ending balance individually evaluated for impairment		1,085		52,893		—		325		—		—			54,303
Ending balance collectively evaluated for impairment	$	41,818	$	131,965	$	61,484	$	71,172	$	1,037	$	—		$	307,476

Credit Quality Indicators

The Bank has established a credit risk rating system to assess and manage the risk in the loan portfolio. It establishes a uniform framework and common language for assessing and monitoring risk in the portfolio.

The following is a guide for an 8-grade system of credit risk:

1. Minimal Risk: Borrowers in this category have the lowest risk of any resulting loss. Borrowers are of the highest quality, presently and prospectively.

2. Better Than Average Risk: Borrowers in the high end of medium range between borrowers who are definitely sound and those with minor risk characteristics.

3. Moderate Risk: Borrowers in this category have little chance of resulting in a loss. This category should include the average loan, under average economic conditions.

4. Acceptable Risk: Borrowers in this category have a limited chance of resulting in a loss.

5. Special Mention (Potential Weakness): Borrowers in this category exhibit potential credit weaknesses or downward trends deserving Bank management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification.

Included in special mention assets could be workout or turnaround situations, as well as those borrowers previously rated 2-4 who have shown deterioration, for whatever reason, indicating a downgrading from the better grade. The special mention rating is designed to identify a specific level of risk and concern about a loan’s and/or borrower’s quality. Although a special mention asset has a higher probability of default than previously rated categories, its default is not imminent.

6. Substandard (Definite Weakness – Loss Unlikely): These are borrowers with defined weaknesses that jeopardize the orderly liquidation of debt. A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. There is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard.

7. Doubtful: Borrowers classified doubtful have all the weaknesses found in substandard borrowers with the added provision that the weaknesses make collection of debt in full, based on currently existing facts, conditions and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. The possibility of loss is extremely high, but because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. Management of borrowers classified doubtful may have demonstrated a history of failing to live up to agreements, unethical or dishonest business practices and/or conviction on criminal charges.

8. Loss: Borrowers deemed incapable of repayment of unsecured debt. Loans to such borrowers are considered uncollectible and of such little value that continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off these worthless assets, even though partial recovery may be affected in the future.

The table below illustrates the carrying amount of loans by credit quality indicator at June 30, 2013:

	FUSB
	Pass 1-4		Special Mention 5		Substandard 6		Doubtful 7		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	4,317	$	1,156	$	9,881	$	—	$	15,354
Secured by 1-4 family residential properties		30,034		1,199		4,194		—		35,427
Secured by multi-family residential properties		14,182		—		8,233		—		22,415
Secured by non-farm, non-residential properties		95,810		6,263		25,616		—		127,689
Other		792		—		—		—		792
Commercial and industrial loans		34,901		1,163		1,789		—		37,853
Consumer loans		10,867		136		1,248		—		12,251
Other loans		593		—		1		—		594
Total	$	191,496	$	9,917	$	50,962	$	—	$	252,375

	ALC
	Performing		Nonperforming		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	28,824	$	827	$	29,651
Consumer loans		45,737		1,076		46,813
Total	$	74,561	$	1,903	$	76,464

The table below illustrates the carrying amount of loans by credit quality indicator at December 31, 2012:

	FUSB
	Pass 1-4		Special Mention 5		Substandard 6		Doubtful 7		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	12,653	$	1,235	$	16,747	$	—	$	30,635
Secured by 1-4 family residential properties		31,772		1,546		5,132		—		38,450
Secured by multi-family residential properties		10,776		3,132		10,279		—		24,187
Secured by non-farm, non-residential properties		90,139		8,630		30,466		—		129,235
Other		801		—		—		—		801
Commercial and industrial loans		40,607		419		1,877		—		42,903
Consumer loans		13,394		188		901		—		14,483
Other loans		1,036		—		1		—		1,037
Total	$	201,178	$	15,150	$	65,403	$	—	$	281,731

	ALC
	Performing		Nonperforming		Total
	(In Thousands of Dollars)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	32,036	$	1,011	$	33,047
Consumer loans		46,175		826		47,001
Total	$	78,211	$	1,837	$	80,048

The following table provides an aging analysis of past due loans by class at June 30, 2013:

	FUSB
	As of June 30, 2013
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	4,141	$	4,141	$	11,213	$	15,354	$	—
Secured by 1-4 family residential properties		379		116		1,318		1,813		33,614		35,427		—
Secured by multi-family residential properties		767		—		1,455		2,222		20,193		22,415		—
Secured by non-farm, non-residential properties		561		165		4,186		4,912		122,777		127,689		—
Other		—		—		—		—		792		792		—
Commercial and industrial loans		816		60		45		921		36,932		37,853		—
Consumer loans		227		4		56		287		11,964		12,251		—
Other loans		—		—		—		—		594		594		—
Total	$	2,750	$	345	$	11,201	$	14,296	$	238,079	$	252,375	$	—

	ALC
	As of June 30, 2013
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by 1-4 family residential properties		303		175		768		1,246		28,405		29,651		670
Secured by multi-family residential properties		—		—		—		—		—		—		—
Secured by non-farm, non-residential properties		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—		—
Consumer loans		947		484		1,032		2,463		44,350		46,813		1,004
Other loans		—		—		—		—		—		—		—
Total	$	1,250	$	659	$	1,800	$	3,709	$	72,755	$	76,464	$	1,674

The following table provides an aging analysis of past due loans by class at December 31, 2012:

	FUSB
	As of December 31, 2012
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	456	$	1,126	$	10,329	$	11,911	$	18,724	$	30,635	$	—
Secured by 1-4 family residential properties		1,027		572		1,106		2,705		35,745		38,450		—
Secured by multi-family residential properties		—		—		2,884		2,884		21,303		24,187		—
Secured by non-farm, non-residential properties		210		32		4,930		5,172		124,063		129,235		—
Other		—		—		—		—		801		801		—
Commercial and industrial loans		430		59		480		969		41,934		42,903		—
Consumer loans		407		89		66		562		13,921		14,483		—
Other loans		—		—		—		—		1,037		1,037		—
Total	$	2,530	$	1,878	$	19,795	$	24,203	$	257,528	$	281,731	$	—

	ALC
	As of December 31, 2012
													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by 1-4 family residential properties		348		173		1,075		1,596		31,451		33,047		851
Secured by multi-family residential properties		—		—		—		—		—		—		—
Secured by non-farm, non-residential properties		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—		—
Consumer loans		989		609		1,159		2,757		44,244		47,001		720
Other loans		—		—		—		—		—		—		—
Total	$	1,337	$	782	$	2,234	$	4,353	$	75,695	$	80,048	$	1,571

The following table provides an analysis of nonaccruing loans by class at June 30, 2013 and December 31, 2012:

	Loans on Nonaccrual Status
	June 30, 2013		December 31, 2012
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	5,400	$	11,456
Secured by 1-4 family residential properties		2,057		2,441
Secured by multi-family residential properties		1,455		2,884
Secured by non-farm, non-residential properties		5,375		5,809
Commercial and industrial loans		368		822
Consumer loans		192		206
Total loans	$	14,847	$	23,618

Impaired Loans

At June 30, 2013, the carrying amount of impaired loans consisted of the following:

	June 30, 2013
			Unpaid
	Carrying		Principal		Related
	Amount		Balance		Allowances
	(In Thousands of Dollars)
Impaired loans with no related allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	5,357	$	5,357	$	—
Secured by 1-4 family residential properties		306		306		—
Secured by multi-family residential properties		2,367		2,367		—
Secured by non-farm, non-residential properties		10,740		10,740		—
Commercial and industrial		594		594		—
Total loans with no related allowance recorded	$	19,364	$	19,364	$	—
Impaired loans with an allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	3,671	$	3,671	$	1,057
Secured by multi-family residential properties		5,866		5,866		1,726
Secured by non-farm, non-residential properties		12,613		12,613		1,595
Commercial and industrial		669		669		399
Total loans with an allowance recorded	$	22,819	$	22,819	$	4,777
Total impaired loans
Loans secured by real estate:
Construction, land development and other land loans	$	9,028	$	9,028	$	1,057
Secured by 1-4 family residential properties		306		306		—
Secured by multi-family residential properties		8,233		8,233		1,726
Secured by non-farm, non-residential properties		23,353		23,353		1,595
Commercial and industrial		1,263		1,263		399
Total impaired loans	$	42,183	$	42,183	$	4,777

At December 31, 2012, the carrying amount of impaired loans consisted of the following:

	December 31, 2012
			Unpaid
	Carrying		Principal		Related
	Amount		Balance		Allowances
	(In Thousands of Dollars)
Impaired loans with no related allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	2,645	$	2,645	$	—
Secured by 1-4 family residential properties		325		325		—
Secured by multi-family residential properties		3,027		3,027		—
Secured by non-farm, non-residential properties		21,471		21,471		—
Commercial and industrial		655		655		—
Total loans with no related allowance recorded	$	28,123	$	28,123	$	—
Impaired loans with an allowance recorded
Loans secured by real estate:
Construction, land development and other land loans	$	12,658	$	12,658	$	7,453
Secured by multi-family residential properties		7,252		7,252		1,865
Secured by non-farm, non-residential properties		5,840		5,840		1,500
Commercial and industrial		430		430		406
Total loans with an allowance recorded	$	26,180	$	26,180	$	11,224
Total impaired loans
Loans secured by real estate:
Construction, land development and other land loans	$	15,303	$	15,303	$	7,453
Secured by 1-4 family residential properties		325		325		—
Secured by multi-family residential properties		10,279		10,279		1,865
Secured by non-farm, non-residential properties		27,311		27,311		1,500
Commercial and industrial		1,085		1,085		406
Total impaired loans	$	54,303	$	54,303	$	11,224

The average net investment in impaired loans and interest income recognized and received on impaired loans at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Average Recorded		Interest Income		Interest Income
	Investment		Recognized		Received
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	13,155	$	94	$	95
Secured by 1-4 family residential properties		313		4		4
Secured by multi-family residential properties		9,831		209		199
Secured by non-farm, non-residential properties		25,212		573		535
Commercial and industrial		1,050		33		32
Total impaired loans	$	49,561	$	913	$	865

	December 31, 2012
	Average Recorded		Interest Income		Interest Income
	Investment		Recognized		Received
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	18,283	$	546	$	598
Secured by 1-4 family residential properties		146		10		10
Secured by multi-family residential properties		4,942		483		455
Secured by non-farm, non-residential properties		29,627		1,452		1,477
Commercial and industrial		1,222		38		42
Total impaired loans	$	54,220	$	2,529	$	2,582

Loans on which the accrual of interest has been discontinued amounted to $14,847,248 and $23,618,330 at June 30, 2013 and December 31, 2012, respectively. If interest on those loans had been accrued, such income would have approximated $380,877 and $1,058,377 for the quarter ended June 30, 2013 and the year ended December 31, 2012, respectively. Interest income actually recorded on those loans amounted to $20,626 and $157,601 for the quarter ended June 30, 2013 and the year ended December 31, 2012, respectively. Accruing loans past due 90 days or more amounted to $1,673,624 and $1,570,548 at June 30, 2013 and December 31, 2012, respectively.

Troubled Debt Restructurings

Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included and treated with all other nonaccrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings. Generally, restructured loans remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on nonaccrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Based on the above, the Company had $8,332,305 and $12,397,049 of non-accruing loans that were restructured and remained on nonaccrual status at June 30, 2013 and December 31, 2012, respectively.

The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio as of June 30, 2013 and December 31, 2012, as well as the recorded investment and unpaid principal balance as of June 30, 2013 and December 31, 2012:

	June 30, 2013						December 31, 2012
			Pre-Modification		Post-				Pre-Modification		Post-
			Outstanding		Modification				Outstanding		Modification
	Number		Principal		Principal		Number		Principal		Principal
	of Loans		Balance		Balance		of Loans		Balance		Balance
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans		8	$	12,580	$	6,280		10	$	11,267	$	9,988
Secured by 1-4 family residential properties		5		449		418		4		596		586
Secured by non-farm, non-residential properties		8		1,801		1,508		6		1,811		1,586
Commercial loans		3		371		345		4		380		356
Total		24	$	15,201	$	8,551		24	$	14,054	$	12,516

The following table provides the number of loans modified in a troubled debt restructuring that have subsequently defaulted, by loan portfolio, as of June 30, 2013 and December 31, 2012:

	June 30, 2013				December 31, 2012
	Number		Recorded		Number		Recorded
	of Loans		Investment		of Loans		Investment
	(In Thousands of Dollars)
Troubled debt restructurings that have subsequently defaulted:
Construction, land development and other land loans		—	$	—		6	$	7,062
Secured by non-farm, non-residential properties		5		1,210		2		433
Commercial		—		—		2		68
Total		5	$	1,210		10	$	7,563

Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure, principal reduction or some combination of these concessions. During the quarter ended June 30, 2013 and the year ended December 31, 2012, restructured loan modifications of loans secured by real estate, commercial and industrial loans primarily included maturity date extensions and payment schedule modifications.

The change in troubled debt restructuring from December 31, 2012 to June 30, 2013 was as follows:

	June 30, 2013		December 31, 2012		Change
	(In Thousands of Dollars)
Loans secured by real estate:
Construction, land development and other land loans	$	6,280	$	9,988	$	(3,708	)
Secured by 1-4 family residential properties		418		586		(168	)
Secured by non-farm, non-residential properties		1,508		1,586		(78	)
Commercial and industrial loans		345		356		(11	)
Total	$	8,551	$	12,516		(3,965	)

All loans $500,000 and over, modified in a troubled debt restructuring and rated substandard or lower, are evaluated for impairment. The nature and extent of impairment of restructured loans, including those that have experienced a subsequent payment default, is considered in the determination of an appropriate level of allowance for loan losses. This evaluation resulted in an allowance for loan losses of $1,291,911 and $6,322,593 at June 30, 2013 and December 31, 2012, respectively.

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Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Changes And Error Corrections [Abstract]

Disclosures about Offsetting Assets and Liabilities

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this ASU. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of this guidance, which involves disclosure only, did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Comprehensive Income

In February 2013, the FASB issued ASU No. 2013-02, which updated Accounting Standards Codification (“ASC”) Topic 220, Comprehensive Income, which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not reclassified in their entirety to net income, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. ASU No. 2013-02 is effective for annual reporting periods beginning on or after December 15, 2012 and interim periods within those annual periods. The adoption of ASU No. 2013-02 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Fair Value Measurement and Disclosures

The Company follows the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.

ASC Topic 820 requires disclosure of fair value information about financial instruments, whether or not recognized on the face of the consolidated statements of financial condition, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather represent a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance.

Accounting by Creditors for Impairment of a Loan

The Company is required to measure certain assets at fair value on a nonrecurring basis, including impaired loans. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the present value of estimated future cash flows using the loan’s existing rate or the fair value of collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. When an impaired loan is determined to be collateral dependent, the fair value is determined through the utilization of a third-party appraisal. It is the policy of the Company to update appraisals every 18-24 months. The types of collateral influence the frequency of obtaining updated appraisals. Management knows the market trends of collateral values well and monitors trends in sales and valuations in all of the various categories of collateral. These trends influence how often new appraisals are obtained within the 18-24 month timeframe. For example, a significant number of currently impaired loans are collateralized by residential subdivision lots. The values of this type of collateral have been volatile in recent years, and, therefore, appraisals are generally updated at the lower end of the timeframe (i.e., closer to 18 months), while timberland appraisals would be updated closer to the upper end of the timeframe (i.e., closer to 24 months), as these values have remained more stable. Any observed trend indicating reduced valuations would require updated appraisals. Based on experience, current appraisals are discounted 9% for estimated costs associated with foreclosures and costs to sell. If a loan is evaluated for impairment under ASC Topic 310-10-35, Accounting by Creditors for Impairment of a Loan, and the appraisal is outdated, a new appraisal is ordered. If the new appraisal is not received in sufficient time to assess any required impairment to meet financial reporting obligations, the old appraisal may be discounted to reflect values observed in similar properties. These discounts have ranged from 20% to 30% and are based on the most recent valuation/appraisal information available related to that particular type of loan/collateral. After the new appraisal is obtained, the analysis is updated to reflect the new valuation. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan is confirmed. Loans, net of specific allowances, subject to this evaluation amounted to $18,041,521 and $14,956,079 as of June 30, 2013 and December 31, 2012, respectively. This valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis.

Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities

The Company has determined that these structures require valuation as a variable interest entity (“VIE”) under ASC Topic 810, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities. The Company consolidates one of the funds in which it has a 99.9% limited partnership interest. The resulting financial impact to the Company of the consolidation was a net increase to total assets of approximately $69,845 as of June 30, 2013.

Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects

The remaining limited partnership investments are unconsolidated and are accounted for under the cost method as allowed under ASC Topic 325, Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects. The Company amortizes the excess of carrying value of the investment over its estimated residual value during the period in which tax credits are allocated to the investors. The Company’s maximum exposure to future loss related to these limited partnerships is limited to the $836,163 recorded investment.

Segment Reporting

Under ASC Topic 280, Segment Reporting, certain information is disclosed for the two reportable operating segments of the Company. The reportable segments were determined using the internal management reporting system. These segments are composed of USBI’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in USBI’s Annual Report on Form 10-K for the period ended December 31, 2012. The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The results for the two reportable segments of the Company are included in the following table:

						All
	FUSB			ALC		Other		Eliminations			Consolidated
	(In Thousands of Dollars)
For the three months ended June 30, 2013
Net interest income	$	4,181		$	3,511	$	3	$	—		$	7,695
Provision for loan losses		(200	)		253		—		—			53
Total non-interest income		929			349		1,437		(1,487	)		1,228
Total non-interest expense		4,666			2,529		199		(218	)		7,176
Income before income taxes		644			1,078		1,241		(1,269	)		1,694
Provision for income taxes		96			415		1		—			512
Net income	$	548		$	663	$	1,240	$	(1,269	)	$	1,182
Other significant items:
Total assets	$	557,364		$	71,769	$	75,355	$	(148,782	)	$	555,706
Total investment securities		137,646			—		80		—			137,726
Total loans, net		299,497			68,424		—		(55,913	)		312,008
Investment in subsidiaries		784			—		70,136		(70,915	)		5
Fixed asset additions		33			7		—		—			40
Depreciation expense		137			38		—		—			175
Total interest income from external customers		4,123			4,309		—		—			8,432
Total interest income from affiliates		798			—		3		(801	)		—
For the six months ended June 30, 2013:
Net interest income	$	8,516		$	6,979	$	5	$	—		$	15,500
Provision for loan losses		(162	)		721		—		—			559
Total non-interest income		2,326			685		2,511		(2,671	)		2,851
Total non-interest expense		9,285			5,661		361		(439	)		14,868
Income before income taxes		1,719			1,282		2,155		(2,232	)		2,924
Provision for income taxes		358			496		2		—			856
Net income	$	1,361		$	786	$	2,153	$	(2,232	)	$	2,068
Other significant items:
Fixed asset additions	$	63		$	17	$	—	$	—		$	80
Depreciation expense		261			79		—		—			340
Total interest income from external customers		8,398			8,628		—		—			17,026
Total interest income from affiliates		1,649			—		4		(1,653	)		—

	FUSB			ALC		All Other		Eliminations			Consolidated
	(Dollars in Thousands)
For the three months ended June 30, 2012:
Net interest income	$	4,946		$	3,620	$	5	$	—		$	8,571
Provision for loan losses		20			448		—		—			468
Total non-interest income		957			334		1,666		(1,626	)		1,331
Total non-interest expense		4,707			2,696		219		(182	)		7,440
Income before income taxes		1,176			810		1,452		(1,444	)		1,994
Provision for income taxes		308			314		1		—			623
Net income	$	868		$	496	$	1,451	$	(1,444	)	$	1,371
Other significant items:
Total assets	$	604,227		$	82,382	$	72,921	$	(156,245	)	$	603,285
Total investment securities		112,545			—		75		—			112,620
Total loans, net		347,404			75,549		—		(67,542	)		355,411
Investment in subsidiaries		1,286			—		67,645		(68,926	)		5
Fixed asset additions		58			17		—		—			75
Depreciation expense		141			39		—		—			180
Total interest income from external customers		5,153			4,595		—		—			9,748
Total interest income from affiliates		975			—		5		(980	)		—
For the six months ended June 30, 2012:
Net interest income	$	9,932		$	7,180	$	9	$	—		$	17,121
Provision for loan losses		1,523			1,160		—		—			2,683
Total non-interest income		1,970			658		644		(667	)		2,605
Total non-interest expense		11,703			5,563		369		(365	)		17,270
Income (loss) before income taxes		(1,324	)		1,115		284		(302	)		(227	)
Provision for (benefit from) income taxes		(796	)		433		3		—			(360	)
Net income (loss)	$	(528	)	$	682	$	281	$	(302	)	$	133
Other significant items:
Fixed asset additions	$	112		$	177	$	—	$	—		$	289
Depreciation expense		282			78		—		—			360
Total interest income from external customers		10,594			9,164		—		—			19,758
Total interest income from affiliates		1,983			—		9		(1,992	)		—

XML

Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

13. SEGMENT REPORTING

Under ASC Topic 280, Segment Reporting, certain information is disclosed for the two reportable operating segments of the Company. The reportable segments were determined using the internal management reporting system. These segments are composed of USBI’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in USBI’s Annual Report on Form 10-K for the period ended December 31, 2012. The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The results for the two reportable segments of the Company are included in the following table:

						All
	FUSB			ALC		Other		Eliminations			Consolidated
	(In Thousands of Dollars)
For the three months ended June 30, 2013
Net interest income	$	4,181		$	3,511	$	3	$	—		$	7,695
Provision for loan losses		(200	)		253		—		—			53
Total non-interest income		929			349		1,437		(1,487	)		1,228
Total non-interest expense		4,666			2,529		199		(218	)		7,176
Income before income taxes		644			1,078		1,241		(1,269	)		1,694
Provision for income taxes		96			415		1		—			512
Net income	$	548		$	663	$	1,240	$	(1,269	)	$	1,182
Other significant items:
Total assets	$	557,364		$	71,769	$	75,355	$	(148,782	)	$	555,706
Total investment securities		137,646			—		80		—			137,726
Total loans, net		299,497			68,424		—		(55,913	)		312,008
Investment in subsidiaries		784			—		70,136		(70,915	)		5
Fixed asset additions		33			7		—		—			40
Depreciation expense		137			38		—		—			175
Total interest income from external customers		4,123			4,309		—		—			8,432
Total interest income from affiliates		798			—		3		(801	)		—
For the six months ended June 30, 2013:
Net interest income	$	8,516		$	6,979	$	5	$	—		$	15,500
Provision for loan losses		(162	)		721		—		—			559
Total non-interest income		2,326			685		2,511		(2,671	)		2,851
Total non-interest expense		9,285			5,661		361		(439	)		14,868
Income before income taxes		1,719			1,282		2,155		(2,232	)		2,924
Provision for income taxes		358			496		2		—			856
Net income	$	1,361		$	786	$	2,153	$	(2,232	)	$	2,068
Other significant items:
Fixed asset additions	$	63		$	17	$	—	$	—		$	80
Depreciation expense		261			79		—		—			340
Total interest income from external customers		8,398			8,628		—		—			17,026
Total interest income from affiliates		1,649			—		4		(1,653	)		—

	FUSB			ALC		All Other		Eliminations			Consolidated
	(Dollars in Thousands)
For the three months ended June 30, 2012:
Net interest income	$	4,946		$	3,620	$	5	$	—		$	8,571
Provision for loan losses		20			448		—		—			468
Total non-interest income		957			334		1,666		(1,626	)		1,331
Total non-interest expense		4,707			2,696		219		(182	)		7,440
Income before income taxes		1,176			810		1,452		(1,444	)		1,994
Provision for income taxes		308			314		1		—			623
Net income	$	868		$	496	$	1,451	$	(1,444	)	$	1,371
Other significant items:
Total assets	$	604,227		$	82,382	$	72,921	$	(156,245	)	$	603,285
Total investment securities		112,545			—		75		—			112,620
Total loans, net		347,404			75,549		—		(67,542	)		355,411
Investment in subsidiaries		1,286			—		67,645		(68,926	)		5
Fixed asset additions		58			17		—		—			75
Depreciation expense		141			39		—		—			180
Total interest income from external customers		5,153			4,595		—		—			9,748
Total interest income from affiliates		975			—		5		(980	)		—
For the six months ended June 30, 2012:
Net interest income	$	9,932		$	7,180	$	9	$	—		$	17,121
Provision for loan losses		1,523			1,160		—		—			2,683
Total non-interest income		1,970			658		644		(667	)		2,605
Total non-interest expense		11,703			5,563		369		(365	)		17,270
Income (loss) before income taxes		(1,324	)		1,115		284		(302	)		(227	)
Provision for (benefit from) income taxes		(796	)		433		3		—			(360	)
Net income (loss)	$	(528	)	$	682	$	281	$	(302	)	$	133
Other significant items:
Fixed asset additions	$	112		$	177	$	—	$	—		$	289
Depreciation expense		282			78		—		—			360
Total interest income from external customers		10,594			9,164		—		—			19,758
Total interest income from affiliates		1,983			—		9		(1,992	)		—

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 13, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Entity Registrant Name	UNITED SECURITY BANCSHARES INC
Entity Central Index Key	0000717806
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,023,622

XML

Guarantees, Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Guarantees, Commitments and Contingencies

14. GUARANTEES, COMMITMENTS AND CONTINGENCIES

The Bank’s exposure to credit loss in the event of nonperformance by the other party for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making these commitments as it does for on-balance sheet instruments. For interest rate swap transactions and commitments to purchase or sell securities for forward delivery, the contract or notional amounts do not represent exposure to credit loss. The Bank controls the credit risk of these derivative instruments through credit approvals, limits and monitoring procedures. Certain derivative contracts have credit risk for the carrying value plus the amount to replace such contracts in the event of counterparty default. All of the Bank’s financial instruments are held for risk management and not for trading purposes. During the quarters ended June 30, 2013 and 2012, there were no credit losses associated with derivative contracts.

In the normal course of business, there are outstanding commitments and contingent liabilities, such as commitments to extend credit, letters of credit and others, that are not included in the consolidated financial statements. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the condensed consolidated financial statements. A summary of these commitments and contingent liabilities is presented below:

	June 30, 2013		December 31, 2012
	(Dollars in Thousands)
Standby Letters of Credit	$	1,022	$	1,092
Commitments to Extend Credit	$	29,482	$	32,123

Standby letters of credit are contingent commitments issued by the Bank generally to guarantee the performance of a customer to a third party. The Bank has recourse against the customer for any amount that it is required to pay to a third party under a standby letter of credit. Revenues are recognized over the lives of the standby letters of credit. The potential amount of future payments that the Bank could be required to make under its standby letters of credit at June 30, 2013 and December 31, 2012 was $1.0 million, representing the Bank’s total credit risk.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties.

Commitments to purchase securities for delayed delivery require the Bank to purchase a specified security at a specified price for delivery on a specified date. Similarly, commitments to sell securities for delayed delivery require the Bank to sell a specified security at a specified price for delivery on a specified date. Market risk arises from potential movements in security values and interest rates between the commitment and delivery dates. At June 30, 2013 and December 31, 2012, there were no outstanding commitments to purchase and sell securities for delayed delivery.

Litigation

On September 27, 2007, Malcomb Graves Automotive, LLC (“Graves Automotive”), Malcomb Graves and Tina Graves filed a lawsuit in the Circuit Court of Shelby County, Alabama against USBI, the Bank, ALC and their respective directors and officers seeking an unspecified amount of compensatory and punitive damages. A former employee of ALC, Corey Mitchell, was named as a co-defendant, and ALC and the Bank filed a crossclaim against him seeking, among other relief, defense and indemnification for any damages suffered in the underlying lawsuit. The underlying complaint alleged that the defendants committed fraud in misrepresenting to Graves Automotive the amounts that Graves Automotive owed on certain loans and failing to credit Graves Automotive properly for certain loans. The defendants moved to compel arbitration, and the trial court denied the defendants’ motion. The defendants appealed this decision, and, on September 29, 2010, the Alabama Supreme Court affirmed the trial court’s denial of defendants’ motion. Following the return of the case to the active docket, on November 30, 2010, ALC and the Bank moved to dismiss the lawsuit. In response to this motion to dismiss, on June 15, 2011, the Circuit Court dismissed all claims against USBI, the Bank and their respective directors and officers and all claims that were brought by Malcomb Graves and Tina Graves in their individual capacities. The Circuit Court also dismissed Graves Automotive’s claims for conversion and negligent supervision against ALC and ordered Graves Automotive to re-plead its fraud allegations against ALC with more particularity. On September 15, 2011, Graves Automotive filed a third amended complaint in response to the Circuit Court’s June 15, 2011 order. In its third amended complaint, Graves Automotive asserted claims against ALC for breach of contract, fraud, unjust enrichment and conversion. ALC moved to dismiss the third amended complaint on many of the same grounds as set forth in its previous motion to dismiss. On October 13, 2011, the Circuit Court dismissed Graves Automotive’s conversion claim and again ordered Graves Automotive to re-plead its fraud claims with more particularity, this time within 60 days. On December 12, 2011, Graves Automotive filed its fourth amended complaint, this time asserting only two counts, breach of contract and unjust enrichment. Despite removing the fraud claims, the fourth amended complaint still requests punitive damages. On January 11, 2012, ALC filed a motion to dismiss the fourth amended complaint and to strike Graves Automotive’s request for punitive damages. This motion was heard on November 27, 2012, and the Circuit Court struck the punitive damages claim but allowed the breach of contract and unjust enrichment claims to go forward. Because the case has been at a virtual standstill since the November 27, 2012 hearing, ALC recently requested a status conference with the Circuit Court. The Circuit Court granted this request and set the case for a status conference on September 24, 2013. ALC also recently made a nominal settlement offer to avoid the costs associated with additional litigation. ALC has yet to receive a response to this offer. Although the ultimate outcome of this matter remains unknown, ALC continues to deny the allegations against it in the underlying lawsuit with respect to the remaining claims and intends to vigorously defend itself in this matter.

On February 17, 2011, Wayne Allen Russell, Jr. (“Russell”) filed a lawsuit in the Circuit Court of Tuscaloosa County, Alabama against the Bank and Bill Morgan, who served as the Bank’s Business Development Officer. The allegations in the lawsuit relate to a mortgage on a parcel of real estate, executed by Russell in favor of the Bank as security for a loan, and certain related transactions, including foreclosure proceedings executed by the Bank. Additionally, on June 17, 2011, Mr. Russell’s wife, Rebecca Russell, in response to a lawsuit filed against Mrs. Russell by the Bank, filed a counterclaim against the Bank seeking compensatory and punitive damages, asserting that she was induced to mortgage a rental dwelling owned by her, the proceeds of which were paid upon certain obligations owed to the Bank by her husband, and that the Bank had orally agreed to refinance her loan as a part of an alleged refinancing promise by the Bank with respect to the obligations of Mr. Russell. On October 29, 2012, the Court granted summary judgment in favor of the Bank and Mr. Morgan with respect to all claims asserted in the consolidated lawsuits, and a subsequent motion to alter, amend or vacate filed by Mr. and Mrs. Russell was denied by operation of law. On March 25, 2013, Mr. and Mrs. Russell filed a Notice of Appeal to the Supreme Court of Alabama. Although the ultimate outcome of this matter remains unknown, the Bank believes that it should prevail on appeal, that the granting of summary judgment by the lower court will be upheld and that any contrary result would not have a material adverse effect on the Company’s consolidated financial statements or results of operations.

On or about June 1, 2012, a former employee filed a complaint against the Bank with the Occupational Safety and Health Administration (“OSHA”) alleging violations of Section 806 of the Corporate and Criminal Fraud Accountability Act, 18 U.S.C. § 1514A (“Section 806”), and Section 1057 of the Consumer Financial Protection Act, 12 U.S.C. § 5567, in connection with his separation from the Bank in April 2012. Based on its investigation, OSHA concluded it had no reasonable cause to believe the statutes were violated. As was his right, however, the former employee timely requested a hearing before an Administrative Law Judge (“ALJ”) and filed an amended complaint in that forum. The Bank filed a motion to dismiss the amended complaint (in lieu of an answer), and the motion has been granted as to all claims other than the claim alleging a violation of Section 806. The ALJ has suspended all discovery and is allowing the former employee to pursue, by subpoena to the Federal Deposit Insurance Corporation and the Alabama State Banking Department, the confidential supervisory information, if any, that relates to the Section 806 claim. This discovery from third-party agencies will run its course before other discovery by the parties is resumed. Although the Bank believes that the remaining Section 806 claim is wholly without merit and that it will be able to demonstrate several meritorious defenses, it is too early to assess the likelihood of a resolution of this matter or the possibility of an unfavorable outcome.

USBI and its subsidiaries also are parties to other litigation, and the Company intends to vigorously defend itself in all such litigation. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such other litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations.

XML

Guarantees, Commitments and Contingencies - Additional Information (Detail) (USD $)	6 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Standby Letters of Credit [Member]	Dec. 31, 2012 Standby Letters of Credit [Member]
Long-term Purchase Commitment [Line Items]
Credit losses associated with derivative contracts	$ 0	$ 0
Bank's total credit risk			1,000,000	1,000,000
Outstanding commitments to purchase and sell securities			$ 0	$ 0
Conversion claim and again ordered graves automotive to re-plead its fraud claims period	60 days

XML

Segment Reporting - Summary of Results for Reportable Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
Net interest income	$ 7,695	$ 8,571	$ 15,500	$ 17,121
Provision for loan losses	53	468	559	2,683
Total non-interest income	1,228	1,331	2,851	2,605
Total non-interest expense	7,176	7,440	14,868	17,270
Income (loss) before income taxes	1,694	1,994	2,924	(227)
PROVISION FOR (BENEFIT FROM) INCOME TAXES	512	623	856	(360)
NET INCOME	1,182	1,371	2,068	133
Other significant items:
Total assets	555,706	603,285	555,706	603,285	567,133
Total investment securities	137,726	112,620	137,726	112,620
Total loans, net	312,008	355,411	312,008	355,411
Investment in subsidiaries	5	5	5	5
Fixed asset additions	40	75	80	289
Depreciation expense	175	180	340	360
Total interest income from external customers	8,432	9,748	17,026	19,758
FUSB [Member]
Segment Reporting Information [Line Items]
Net interest income	4,181	4,946	8,516	9,932
Provision for loan losses	(200)	20	(162)	1,523
Total non-interest income	929	957	2,326	1,970
Total non-interest expense	4,666	4,707	9,285	11,703
Income (loss) before income taxes	644	1,176	1,719	(1,324)
PROVISION FOR (BENEFIT FROM) INCOME TAXES	96	308	358	(796)
NET INCOME	548	868	1,361	(528)
Other significant items:
Total assets	557,364	604,227	557,364	604,227
Total investment securities	137,646	112,545	137,646	112,545
Total loans, net	299,497	347,404	299,497	347,404
Investment in subsidiaries	784	1,286	784	1,286
Fixed asset additions	33	58	63	112
Depreciation expense	137	141	261	282
Total interest income from external customers	4,123	5,153	8,398	10,594
Total interest income from affiliates	798	975	1,649	1,983
ALC [Member]
Segment Reporting Information [Line Items]
Net interest income	3,511	3,620	6,979	7,180
Provision for loan losses	253	448	721	1,160
Total non-interest income	349	334	685	658
Total non-interest expense	2,529	2,696	5,661	5,563
Income (loss) before income taxes	1,078	810	1,282	1,115
PROVISION FOR (BENEFIT FROM) INCOME TAXES	415	314	496	433
NET INCOME	663	496	786	682
Other significant items:
Total assets	71,769	82,382	71,769	82,382
Total loans, net	68,424	75,549	68,424	75,549
Fixed asset additions	7	17	17	177
Depreciation expense	38	39	79	78
Total interest income from external customers	4,309	4,595	8,628	9,164
All Other [Member]
Segment Reporting Information [Line Items]
Net interest income	3	5	5	9
Total non-interest income	1,437	1,666	2,511	644
Total non-interest expense	199	219	361	369
Income (loss) before income taxes	1,241	1,452	2,155	284
PROVISION FOR (BENEFIT FROM) INCOME TAXES	1	1	2	3
NET INCOME	1,240	1,451	2,153	281
Other significant items:
Total assets	75,355	72,921	75,355	72,921
Total investment securities	80	75	80	75
Investment in subsidiaries	70,136	67,645	70,136	67,645
Total interest income from affiliates	3	5	4	9
Eliminations [Member]
Segment Reporting Information [Line Items]
Total non-interest income	(1,487)	(1,626)	(2,671)	(667)
Total non-interest expense	(218)	(182)	(439)	(365)
Income (loss) before income taxes	(1,269)	(1,444)	(2,232)	(302)
NET INCOME	(1,269)	(1,444)	(2,232)	(302)
Other significant items:
Total assets	(148,782)	(156,245)	(148,782)	(156,245)
Total loans, net	(55,913)	(67,542)	(55,913)	(67,542)
Investment in subsidiaries	(70,915)	(68,926)	(70,915)	(68,926)
Total interest income from affiliates	$ (801)	$ (980)	$ (1,653)	$ (1,992)