Virginia (State or other jurisdiction of incorporation or organization) | 54-1696103 (I.R.S. Employer Identification No.) |
111 West Washington Street Middleburg, Virginia (Address of principal executive offices) | 20117 (Zip Code) |
Yes þ | No ¨ |
Yes þ | No ¨ |
Large accelerated filer ¨ | Accelerated filer þ | ||
Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Yes ¨ | No þ |
Page No. | |||
MIDDLEBURG FINANCIAL CORPORATION | |||||||
Consolidated Balance Sheets | |||||||
(In thousands, except for share and per share data) | |||||||
(Unaudited) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 7,312 | $ | 7,139 | |||
Interest-bearing deposits with other institutions | 51,164 | 47,276 | |||||
Total cash and cash equivalents | 58,476 | 54,415 | |||||
Securities available for sale, at fair value | 320,132 | 319,457 | |||||
Loans held for sale | 65,322 | 82,114 | |||||
Restricted securities, at cost | 7,005 | 6,990 | |||||
Loans receivable, net of allowance for loan losses of $13,616 at June 30, 2013 and $14,311 at December 31, 2012 | 693,383 | 695,166 | |||||
Premises and equipment, net | 20,208 | 20,587 | |||||
Goodwill and identified intangibles | 5,932 | 6,017 | |||||
Other real estate owned, net of valuation allowance of $348 at June 30, 2013 and $1,707 at December 31, 2012 | 7,570 | 9,929 | |||||
Prepaid federal deposit insurance | — | 3,015 | |||||
Bank owned life insurance | 16,726 | 16,484 | |||||
Accrued interest receivable and other assets | 22,446 | 22,607 | |||||
TOTAL ASSETS | $ | 1,217,200 | $ | 1,236,781 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Non-interest-bearing demand deposits | $ | 174,459 | $ | 167,137 | |||
Savings and interest-bearing demand deposits | 496,394 | 522,740 | |||||
Time deposits | 291,021 | 292,023 | |||||
Total deposits | 961,874 | 981,900 | |||||
Securities sold under agreements to repurchase | 35,783 | 33,975 | |||||
Short-term borrowings | 5,688 | 11,873 | |||||
FHLB borrowings | 85,000 | 77,912 | |||||
Subordinated notes | 5,155 | 5,155 | |||||
Accrued interest payable and other liabilities | 8,043 | 8,844 | |||||
Commitments and contingent liabilities | — | — | |||||
TOTAL LIABILITIES | 1,101,543 | 1,119,659 | |||||
SHAREHOLDERS' EQUITY | |||||||
Common stock ($2.50 par value; 20,000,000 shares authorized, 7,089,598 and 7,052,554 issued and outstanding at June 30, 2013 and December 31, 2012, respectively) | 17,397 | 17,357 | |||||
Capital surplus | 44,000 | 43,869 | |||||
Retained earnings | 48,947 | 46,235 | |||||
Accumulated other comprehensive income | 2,600 | 6,467 | |||||
Total Middleburg Financial Corporation shareholders' equity | 112,944 | 113,928 | |||||
Non-controlling interest in consolidated subsidiary | 2,713 | 3,194 | |||||
TOTAL SHAREHOLDERS' EQUITY | 115,657 | 117,122 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,217,200 | $ | 1,236,781 |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(In thousands, except for per share data) | |||||||||||||||
Unaudited | Unaudited | ||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||
Interest and fees on loans | $ | 8,795 | $ | 9,594 | $ | 17,760 | $ | 19,376 | |||||||
Interest and dividends on securities available for sale | |||||||||||||||
Taxable | 1,468 | 1,704 | 2,999 | 3,439 | |||||||||||
Tax-exempt | 646 | 596 | 1,276 | 1,203 | |||||||||||
Dividends | 54 | 45 | 110 | 89 | |||||||||||
Interest on deposits in banks and federal funds sold | 29 | 25 | 59 | 49 | |||||||||||
Total interest and dividend income | 10,992 | 11,964 | 22,204 | 24,156 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Interest on deposits | 1,253 | 1,846 | 2,626 | 3,739 | |||||||||||
Interest on securities sold under agreements to repurchase | 81 | 84 | 161 | 167 | |||||||||||
Interest on short-term borrowings | 18 | 89 | 47 | 237 | |||||||||||
Interest on FHLB borrowings and other debt | 299 | 287 | 594 | 584 | |||||||||||
Total interest expense | 1,651 | 2,306 | 3,428 | 4,727 | |||||||||||
NET INTEREST INCOME | 9,341 | 9,658 | 18,776 | 19,429 | |||||||||||
Provision for (recovery of) loan losses | 184 | 730 | (4 | ) | 1,522 | ||||||||||
NET INTEREST INCOME AFTER PROVISION | |||||||||||||||
FOR (RECOVERY OF) LOAN LOSSES | 9,157 | 8,928 | 18,780 | 17,907 | |||||||||||
NONINTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 574 | 538 | 1,108 | 1,068 | |||||||||||
Trust services income | 1,014 | 979 | 1,974 | 1,900 | |||||||||||
Gains on loans held for sale | 4,483 | 5,075 | 8,376 | 8,927 | |||||||||||
Gains on securities available for sale, net | 326 | 148 | 373 | 288 | |||||||||||
Total other-than-temporary impairment losses | — | (36 | ) | — | (46 | ) | |||||||||
Portion of loss recognized in other comprehensive income | — | 36 | — | 46 | |||||||||||
Net impairment losses | — | — | — | — | |||||||||||
Commissions on investment sales | 110 | 125 | 204 | 272 | |||||||||||
Fees on mortgages held for sale | 58 | 64 | 75 | 106 | |||||||||||
Bank-owned life insurance | 123 | 123 | 243 | 245 | |||||||||||
Other operating income | 392 | 119 | 655 | 349 | |||||||||||
Total noninterest income | 7,080 | 7,171 | 13,008 | 13,155 | |||||||||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries and employees' benefits | 7,692 | 7,506 | 15,492 | 14,863 | |||||||||||
Net occupancy and equipment expense | 1,787 | 1,755 | 3,592 | 3,533 | |||||||||||
Advertising | 435 | 447 | 703 | 747 | |||||||||||
Computer operations | 458 | 394 | 919 | 779 | |||||||||||
Other real estate owned | 142 | 874 | 961 | 1,160 | |||||||||||
Other taxes | 187 | 205 | 379 | 408 | |||||||||||
Federal deposit insurance expense | 270 | 261 | 535 | 519 | |||||||||||
Other operating expenses | 2,137 | 1,869 | 4,455 | 4,616 | |||||||||||
Total noninterest expense | 13,108 | 13,311 | 27,036 | 26,625 | |||||||||||
Income before income taxes | 3,129 | 2,788 | 4,752 | 4,437 | |||||||||||
Income tax expense | 774 | 598 | 1,137 | 1,014 | |||||||||||
NET INCOME | 2,355 | 2,190 | 3,615 | 3,423 | |||||||||||
Net income attributable to noncontrolling interest | (262 | ) | (421 | ) | (195 | ) | (72 | ) | |||||||
Net income attributable to Middleburg Financial Corporation | $ | 2,093 | $ | 1,769 | $ | 3,420 | $ | 3,351 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.30 | $ | 0.25 | $ | 0.48 | $ | 0.48 | |||||||
Diluted | $ | 0.29 | $ | 0.25 | $ | 0.48 | $ | 0.48 | |||||||
Dividends per common share | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||
(In thousands) | |||||||||||||||
Unaudited | Unaudited | ||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 2,355 | $ | 2,190 | $ | 3,615 | $ | 3,423 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized holding gains (losses) arising during the period (net of tax of $1,861, $389, $1,972 and $748 respectively for the periods presented) | (3,610 | ) | 756 | (3,825 | ) | 1,451 | |||||||||
Reclassification adjustment for gains included in net income (net of tax of $111, $50, $127, and $98 respectively for the periods presented) | (215 | ) | (98 | ) | (246 | ) | (190 | ) | |||||||
Unrealized gain (loss) on interest rate swap (net of tax of $85, $72, $105, and $45 respectively for the periods presented) | 165 | (140 | ) | 204 | (87 | ) | |||||||||
Total other comprehensive income (loss) | (3,660 | ) | 518 | (3,867 | ) | 1,174 | |||||||||
Total comprehensive income (loss) | (1,305 | ) | 2,708 | (252 | ) | 4,597 | |||||||||
Comprehensive income attributable to non-controlling interest | (262 | ) | (421 | ) | (195 | ) | (72 | ) | |||||||
Comprehensive income (loss) attributable to Middleburg Financial Corporation | $ | (1,567 | ) | $ | 2,287 | $ | (447 | ) | $ | 4,525 |
Middleburg Financial Corporation | |||||||||||||||||||||||
Consolidated Statements of Changes in Shareholders' Equity | |||||||||||||||||||||||
For the Six Months Ended June 30, 2013 and 2012 | |||||||||||||||||||||||
(In Thousands, Except Share Data) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Middleburg Financial Corporation Shareholders | |||||||||||||||||||||||
Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total | ||||||||||||||||||
Balances - December 31, 2011 | $ | 17,331 | $ | 43,498 | $ | 41,157 | $ | 3,926 | $ | 2,101 | $ | 108,013 | |||||||||||
Net income | 3,351 | 72 | 3,423 | ||||||||||||||||||||
Other comprehensive income, net of tax | 1,174 | 1,174 | |||||||||||||||||||||
Cash dividends declared | (703 | ) | (703 | ) | |||||||||||||||||||
Vesting of restricted stock awards (12,432 shares) | 33 | (33 | ) | — | |||||||||||||||||||
Repurchase of restricted stock (2,736 shares) | — | (43 | ) | (43 | ) | ||||||||||||||||||
Distributions to non-controlling interest | (53 | ) | (53 | ) | |||||||||||||||||||
Share-based compensation | 194 | 194 | |||||||||||||||||||||
Balances - June 30, 2012 | $ | 17,364 | $ | 43,616 | $ | 43,805 | $ | 5,100 | $ | 2,120 | $ | 112,005 | |||||||||||
Balances - December 31, 2012 | $ | 17,357 | $ | 43,869 | $ | 46,235 | $ | 6,467 | $ | 3,194 | $ | 117,122 | |||||||||||
Net income | 3,420 | 195 | 3,615 | ||||||||||||||||||||
Other comprehensive loss, net of tax | (3,867 | ) | (3,867 | ) | |||||||||||||||||||
Cash dividends declared | (708 | ) | (708 | ) | |||||||||||||||||||
Vesting of restricted stock awards (21,455 shares) | 54 | (54 | ) | — | |||||||||||||||||||
Repurchase of restricted stock (5,281 shares) | (14 | ) | (88 | ) | (102 | ) | |||||||||||||||||
Distributions to non-controlling interest | (676 | ) | (676 | ) | |||||||||||||||||||
Share-based compensation | 273 | 273 | |||||||||||||||||||||
Balances - June 30, 2013 | $ | 17,397 | $ | 44,000 | $ | 48,947 | $ | 2,600 | $ | 2,713 | $ | 115,657 |
MIDDLEBURG FINANCIAL CORPORATION | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
Unaudited | |||||||
For the six months ended | |||||||
June 30, 2013 | June 30, 2012 | ||||||
Cash Flows From Operating Activities | |||||||
Net income | $ | 3,615 | $ | 3,423 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 970 | 957 | |||||
Undistributed earnings of affiliate | (33 | ) | (4 | ) | |||
Provision for (recovery of) loan losses | (4 | ) | 1,522 | ||||
Net gain on securities available for sale | (373 | ) | (288 | ) | |||
Net loss on disposal of assets | 9 | 7 | |||||
Premium amortization on securities, net | 1,840 | 1,790 | |||||
Origination of loans held for sale | (400,893 | ) | (444,613 | ) | |||
Proceeds from sales of loans held for sale | 426,061 | 477,984 | |||||
Net gains on mortgages held for sale | (8,376 | ) | (8,822 | ) | |||
Share-based compensation | 273 | 194 | |||||
Net loss on sale of other real estate owned | 649 | 24 | |||||
Valuation adjustment on other real estate owned | — | 460 | |||||
Decrease in prepaid FDIC insurance | 3,015 | 483 | |||||
Changes in other assets and liabilities: | |||||||
Decrease in other assets | 2,198 | 622 | |||||
(Decrease) increase in other liabilities | (801 | ) | 172 | ||||
Net cash provided by operating activities | $ | 28,150 | $ | 33,911 | |||
Cash Flows from Investing Activities | |||||||
Proceeds from maturity, principal paydowns and calls of securities available for sale | $ | 46,701 | $ | 41,046 | |||
Proceeds from sale of securities available for sale | 9,913 | 15,986 | |||||
Purchase of securities available for sale | (64,924 | ) | (62,912 | ) | |||
Purchase of restricted stock | (15 | ) | (50 | ) | |||
Purchases of bank premises and equipment | (460 | ) | (534 | ) | |||
Net increase in loans | (306 | ) | (21,805 | ) | |||
Proceeds from sale of other real estate owned | 3,803 | 829 | |||||
Net cash used in investing activities | $ | (5,288 | ) | $ | (27,440 | ) |
MIDDLEBURG FINANCIAL CORPORATION | |||||||
Consolidated Statements of Cash Flows | |||||||
(Continued) | |||||||
(In thousands) | |||||||
For the three and six months ended | |||||||
June 30, 2013 | June 30, 2012 | ||||||
Cash Flows from Financing Activities | |||||||
Net (decrease) increase in non-interest-bearing and interest-bearing demand deposits and savings accounts | $ | (19,024 | ) | $ | 60,155 | ||
Net (decrease) in time deposits | (1,002 | ) | (14,739 | ) | |||
Increase in securities sold under agreements to repurchase | 1,808 | 1,348 | |||||
Proceeds from short-term borrowings | 13,320 | 58,882 | |||||
Payments on short-term borrowings | (19,505 | ) | (78,820 | ) | |||
Proceeds from FHLB borrowings | 55,000 | 62,912 | |||||
Payments on FHLB borrowings | (47,912 | ) | (67,912 | ) | |||
Distributions to non-controlling interest | (676 | ) | (53 | ) | |||
Payment of dividends on common stock | (708 | ) | (703 | ) | |||
Repurchase of common stock | (102 | ) | — | ||||
Net cash (used in) provided by financing activities | $ | (18,801 | ) | $ | 21,070 | ||
Increase in cash and and cash equivalents | 4,061 | 27,541 | |||||
Cash and Cash Equivalents | |||||||
Beginning | 54,415 | 51,270 | |||||
Ending | $ | 58,476 | $ | 78,811 | |||
Supplemental Disclosures of Cash Flow Information | |||||||
Cash payments for: | |||||||
Interest | $ | 3,538 | $ | 4,893 | |||
Income taxes | $ | — | $ | 850 | |||
Supplemental Disclosure of Non-cash Transactions | |||||||
Unrealized gain (loss) on securities available for sale | $ | (6,169 | ) | $ | 1,910 | ||
Change in market value of interest rate swap | $ | 309 | $ | (131 | ) | ||
Transfer of loans to other real estate owned | $ | 2,093 | $ | 6,261 | |||
Loans originated from sale of other real estate owned | $ | — | $ | 149 |
Note 1. | General |
Note 2. | Share–Based Compensation |
June 30, 2013 | ||||||||||
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | ||||||||
Outstanding at beginning of year | 82,171 | $ | 17.32 | |||||||
Granted | — | — | ||||||||
Exercised | — | — | ||||||||
Forfeited | (16,000 | ) | 22.00 | |||||||
Outstanding at end of period | 66,171 | $ | 16.19 | $ | 192,000 |
June 30, 2013 | ||||||||||
Shares | Weighted Average Grant-Date Fair Value | Aggregate Intrinsic Value | ||||||||
Outstanding at beginning of year | 120,455 | $ | 15.66 | |||||||
Granted | 32,000 | 16.83 | ||||||||
Vested | (21,455 | ) | (14.33 | ) | ||||||
Forfeited | (2,000 | ) | (16.86 | ) | ||||||
Non-vested at end of period | 129,000 | $ | 16.09 | $ | 2,464,000 |
Note 3. | Securities |
June 30, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
Available for Sale | |||||||||||||||
U.S. government agencies | $ | 13,720 | $ | 300 | $ | (72 | ) | $ | 13,948 | ||||||
Obligations of states and | |||||||||||||||
political subdivisions | 79,309 | 1,921 | (2,083 | ) | 79,147 | ||||||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 162,925 | 4,592 | (954 | ) | 166,563 | ||||||||||
Non-agency | 17,529 | 148 | (186 | ) | 17,491 | ||||||||||
Other asset backed securities | 32,283 | 839 | (89 | ) | 33,033 | ||||||||||
Corporate preferred stock | 68 | 2 | — | 70 | |||||||||||
Corporate securities | 10,207 | 20 | (347 | ) | 9,880 | ||||||||||
Total | $ | 316,041 | $ | 7,822 | $ | (3,731 | ) | $ | 320,132 |
December 31, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
Available for Sale | |||||||||||||||
U.S. government agencies | $ | 15,391 | $ | 459 | $ | (28 | ) | $ | 15,822 | ||||||
Obligations of states and | |||||||||||||||
political subdivisions | 74,485 | 3,920 | (105 | ) | 78,300 | ||||||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 161,564 | 5,659 | (280 | ) | 166,943 | ||||||||||
Non-agency | 15,310 | 287 | (18 | ) | 15,579 | ||||||||||
Other asset backed securities | 33,648 | 1,079 | (85 | ) | 34,642 | ||||||||||
Corporate preferred stock | 68 | — | (6 | ) | 62 | ||||||||||
Corporate securities | 8,730 | 12 | (633 | ) | 8,109 | ||||||||||
Total | $ | 309,196 | $ | 11,416 | $ | (1,155 | ) | $ | 319,457 |
June 30, 2013 | |||||||
Amortized Cost | Fair Value | ||||||
(In thousands) | |||||||
Due in one year or less | $ | 3,677 | $ | 3,708 | |||
Due after one year through | |||||||
five years | 35,915 | 36,686 | |||||
Due after five years through | |||||||
ten years | 24,264 | 24,176 | |||||
Due after ten years | 39,380 | 38,405 | |||||
Mortgage-backed securities | 180,454 | 184,054 | |||||
Other asset backed securities | 32,283 | 33,033 | |||||
Corporate preferred stock | 68 | 70 | |||||
Total | $ | 316,041 | $ | 320,132 |
June 30, 2013 | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
U.S. government agencies | $ | 5,521 | $ | (72 | ) | $ | 16 | $ | — | $ | 5,537 | $ | (72 | ) | ||||||||||
Obligations of states and | ||||||||||||||||||||||||
political subdivisions | 26,468 | (2,083 | ) | — | — | 26,468 | (2,083 | ) | ||||||||||||||||
Mortgage backed securities: | ||||||||||||||||||||||||
Agency | 42,803 | (844 | ) | 2,570 | (110 | ) | 45,373 | (954 | ) | |||||||||||||||
Non-agency | 11,087 | (186 | ) | — | — | 11,087 | (186 | ) | ||||||||||||||||
Other asset backed securities | 333 | — | 2,357 | (89 | ) | 2,690 | (89 | ) | ||||||||||||||||
Corporate securities | 4,483 | (97 | ) | 4,250 | (250 | ) | 8,733 | (347 | ) | |||||||||||||||
Total | $ | 90,695 | $ | (3,282 | ) | $ | 9,193 | $ | (449 | ) | $ | 99,888 | $ | (3,731 | ) |
December 31, 2012 | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
U.S. government agencies | $ | 3,850 | $ | (28 | ) | $ | 16 | $ | — | $ | 3,866 | $ | (28 | ) | ||||||||||
Obligations of states and | ||||||||||||||||||||||||
political subdivisions | 6,966 | (105 | ) | — | — | 6,966 | (105 | ) | ||||||||||||||||
Mortgage backed securities: | ||||||||||||||||||||||||
Agency | 24,344 | (234 | ) | 1,241 | (46 | ) | 25,585 | (280 | ) | |||||||||||||||
Non-agency | 3,295 | (18 | ) | — | — | 3,295 | (18 | ) | ||||||||||||||||
Other asset backed securities | 2,791 | (57 | ) | 1,418 | (28 | ) | 4,209 | (85 | ) | |||||||||||||||
Corporate preferred stock | — | — | 33 | (6 | ) | 33 | (6 | ) | ||||||||||||||||
Corporate securities | — | — | 6,867 | (633 | ) | 6,867 | (633 | ) | ||||||||||||||||
Total | $ | 41,246 | $ | (442 | ) | $ | 9,575 | $ | (713 | ) | $ | 50,821 | $ | (1,155 | ) |
Note 4. | Loan Portfolio |
June 30, 2013 | December 31, 2012 | ||||||||||||
Outstanding Balance | Percent of Total Portfolio | Outstanding Balance | Percent of Total Portfolio | ||||||||||
(In Thousands) | (In Thousands) | ||||||||||||
Real estate loans: | |||||||||||||
Construction | $ | 48,040 | 6.8 | % | $ | 50,218 | 7.1 | % | |||||
Secured by farmland | 11,575 | 1.6 | % | 11,876 | 1.7 | % | |||||||
Secured by 1-4 family residential | 258,078 | 36.5 | % | 260,620 | 36.7 | % | |||||||
Other real estate loans | 258,465 | 36.6 | % | 254,930 | 35.9 | % | |||||||
Commercial loans | 117,235 | 16.6 | % | 118,573 | 16.8 | % | |||||||
Consumer loans | 13,606 | 1.9 | % | 13,260 | 1.8 | % | |||||||
706,999 | 100.0 | % | 709,477 | 100.0 | % | ||||||||
Less allowance for loan losses | 13,616 | 14,311 | |||||||||||
Net loans | $ | 693,383 | $ | 695,166 |
June 30, 2013 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | ||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Construction | $ | 234 | $ | — | $ | 945 | $ | 1,179 | $ | 46,861 | $ | 48,040 | |||||||||||
Secured by farmland | 608 | — | — | 608 | 10,967 | 11,575 | |||||||||||||||||
Secured by 1-4 family residential | 753 | 117 | 2,847 | 3,717 | 254,361 | 258,078 | |||||||||||||||||
Other real estate loans | 825 | — | 4,726 | 5,551 | 252,914 | 258,465 | |||||||||||||||||
Commercial loans | 10 | — | 108 | 118 | 117,117 | 117,235 | |||||||||||||||||
Consumer loans | 130 | 44 | — | 174 | 13,432 | 13,606 | |||||||||||||||||
Total | $ | 2,560 | $ | 161 | $ | 8,626 | $ | 11,347 | $ | 695,652 | $ | 706,999 |
December 31, 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | ||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Construction | $ | — | $ | 108 | $ | 2,043 | $ | 2,151 | $ | 48,067 | $ | 50,218 | |||||||||||
Secured by farmland | 415 | — | — | 415 | 11,461 | 11,876 | |||||||||||||||||
Secured by 1-4 family residential | 1,625 | 568 | 1,910 | 4,103 | 256,517 | 260,620 | |||||||||||||||||
Other real estate loans | 197 | 361 | 6,112 | 6,670 | 248,260 | 254,930 | |||||||||||||||||
Commercial loans | — | 44 | 144 | 188 | 118,385 | 118,573 | |||||||||||||||||
Consumer loans | 27 | 10 | 32 | 69 | 13,191 | 13,260 | |||||||||||||||||
Total | $ | 2,264 | $ | 1,091 | $ | 10,241 | $ | 13,596 | $ | 695,881 | $ | 709,477 |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Nonaccrual | Past due 90 days or more and still accruing | Nonaccrual | Past due 90 days or more and still accruing | ||||||||||||
(In Thousands) | |||||||||||||||
Real estate loans: | |||||||||||||||
Construction | $ | 2,780 | $ | 268 | $ | 2,861 | $ | 780 | |||||||
Secured by 1-4 family residential | 9,086 | 168 | 8,761 | 228 | |||||||||||
Other real estate loans | 6,346 | 368 | 7,866 | — | |||||||||||
Commercial loans | 2,134 | 25 | 2,146 | 34 | |||||||||||
Consumer loans | 30 | — | 30 | 2 | |||||||||||
Total | $ | 20,376 | $ | 829 | $ | 21,664 | $ | 1,044 |
June 30, 2013 | |||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Pass | $ | 37,904 | $ | 3,064 | $ | 236,954 | $ | 233,718 | $ | 113,948 | $ | 13,337 | $ | 638,925 | |||||||||||||
Special Mention | 6,254 | 7,903 | 2,618 | 12,360 | 375 | 22 | 29,532 | ||||||||||||||||||||
Substandard | 3,307 | 608 | 16,440 | 12,387 | 2,823 | 63 | 35,628 | ||||||||||||||||||||
Doubtful | 575 | — | 2,066 | — | 89 | 184 | 2,914 | ||||||||||||||||||||
Loss | — | — | — | — | — | — | — | ||||||||||||||||||||
Ending Balance | $ | 48,040 | $ | 11,575 | $ | 258,078 | $ | 258,465 | $ | 117,235 | $ | 13,606 | $ | 706,999 |
December 31, 2012 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Pass | $ | 29,741 | $ | 11,068 | $ | 237,121 | $ | 228,052 | $ | 112,298 | $ | 13,134 | $ | 631,414 | |||||||||||||
Special Mention | 15,540 | 199 | 3,767 | 12,949 | 3,332 | 47 | 35,834 | ||||||||||||||||||||
Substandard | 3,902 | 609 | 18,333 | 12,887 | 2,831 | 49 | 38,611 | ||||||||||||||||||||
Doubtful | 1,035 | — | 1,399 | 1,042 | 112 | 30 | 3,618 | ||||||||||||||||||||
Loss | — | — | — | — | — | — | — | ||||||||||||||||||||
Ending Balance | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 |
June 30, 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||
Construction | $ | 1,982 | $ | 2,533 | $ | — | $ | 2,015 | $ | 13 | |||||||||
Secured by farmland | — | — | — | — | — | ||||||||||||||
Secured by 1-4 family residential | 4,205 | 4,623 | — | 4,367 | 50 | ||||||||||||||
Other real estate loans | 3,659 | 3,659 | — | 3,684 | 116 | ||||||||||||||
Commercial loans | 1,962 | 1,962 | — | 1,954 | — | ||||||||||||||
Consumer loans | — | — | — | — | — | ||||||||||||||
Total with no related allowance | 11,808 | 12,777 | — | 12,020 | 179 | ||||||||||||||
With an allowance recorded: | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||
Construction | 1,066 | 1,066 | 493 | 1,073 | — | ||||||||||||||
Secured by farmland | — | — | — | — | — | ||||||||||||||
Secured by 1-4 family residential | 6,872 | 6,923 | 3,129 | 6,977 | 51 | ||||||||||||||
Other real estate loans | 5,796 | 5,798 | 913 | 5,820 | 71 | ||||||||||||||
Commercial loans | 365 | 386 | 270 | 382 | 10 | ||||||||||||||
Consumer loans | 35 | 35 | 35 | 34 | — | ||||||||||||||
Total with a related allowance | 14,134 | 14,208 | 4,840 | 14,286 | 132 | ||||||||||||||
Total | $ | 25,942 | $ | 26,985 | $ | 4,840 | $ | 26,306 | $ | 311 |
December 31, 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||
Construction | $ | 1,819 | $ | 2,370 | $ | — | $ | 2,543 | $ | — | |||||||||
Secured by farmland | — | — | — | — | — | ||||||||||||||
Secured by 1-4 family residential | 3,248 | 3,667 | — | 3,712 | 50 | ||||||||||||||
Other real estate loans | 3,135 | 3,178 | — | 3,141 | 91 | ||||||||||||||
Commercial loans | 1,947 | 1,947 | — | 1,924 | — | ||||||||||||||
Consumer loans | — | — | — | — | — | ||||||||||||||
Total with no related allowance | 10,149 | 11,162 | — | 11,320 | 141 | ||||||||||||||
With an allowance recorded: | |||||||||||||||||||
Real estate loans: | |||||||||||||||||||
Construction | 1,150 | 2,250 | 166 | 1,685 | — | ||||||||||||||
Secured by farmland | — | — | — | — | — | ||||||||||||||
Secured by 1-4 family residential | 7,544 | 8,203 | 2,724 | 7,842 | 65 | ||||||||||||||
Other real estate loans | 7,505 | 7,605 | 1,045 | 7,691 | 73 | ||||||||||||||
Commercial loans | 417 | 464 | 338 | 446 | 14 | ||||||||||||||
Consumer loans | 30 | 30 | 30 | 30 | — | ||||||||||||||
Total with a related allowance | 16,646 | 18,552 | 4,303 | 17,694 | 152 | ||||||||||||||
Total | $ | 26,795 | $ | 29,714 | $ | 4,303 | $ | 29,014 | $ | 293 |
Loans modified as TDR's | ||||||||||
For the three months ended | ||||||||||
June 30, 2013 | ||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||
(In thousands) | ||||||||||
Real estate loans: | ||||||||||
Construction | 1 | $ | 512 | $ | 473 | |||||
Secured by farmland | — | — | — | |||||||
Secured by 1-4 family residential | 5 | 1,394 | 1,387 | |||||||
Other real estate loans | — | — | — | |||||||
Total real estate loans | 6 | 1,906 | 1,860 | |||||||
Commercial loans | 1 | 466 | 466 | |||||||
Consumer loans | — | — | — | |||||||
Total | 7 | $ | 2,372 | $ | 2,326 | |||||
Loans modified as TDR's | ||||||||||
For the six months ended | ||||||||||
June 30, 2013 | ||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||
(In thousands) | ||||||||||
Real estate loans: | ||||||||||
Construction | 1 | $ | 512 | $ | 473 | |||||
Secured by farmland | — | — | — | |||||||
Secured by 1-4 family residential | 6 | 1,445 | 1,433 | |||||||
Other real estate loans | 2 | 168 | 143 | |||||||
Total real estate loans | 9 | 2,125 | 2,049 | |||||||
Commercial loans | 1 | 466 | 466 | |||||||
Consumer loans | — | — | — | |||||||
Total | 10 | $ | 2,591 | $ | 2,515 |
Note 5. | Allowance for Loan Losses |
June 30, 2013 | |||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Balances as of December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | |||||||||||||
Chargeoffs | (123 | ) | — | (569 | ) | (97 | ) | (38 | ) | (22 | ) | (849 | ) | ||||||||||||||
Recoveries | 37 | — | 78 | 20 | 8 | 15 | 158 | ||||||||||||||||||||
Provision (Recovery) | 112 | (18 | ) | 531 | (371 | ) | (266 | ) | 8 | (4 | ) | ||||||||||||||||
Balances as of June 30 2013 | $ | 1,284 | $ | 117 | $ | 6,316 | $ | 3,900 | $ | 1,802 | $ | 197 | $ | 13,616 | |||||||||||||
Ending allowance balance: | |||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 493 | $ | — | $ | 3,128 | $ | 913 | $ | 271 | $ | 35 | $ | 4,840 | |||||||||||||
Collectively evaluated for impairment | 791 | 117 | 3,188 | 2,987 | 1,531 | 162 | 8,776 | ||||||||||||||||||||
Total ending allowance balances | $ | 1,284 | $ | 117 | $ | 6,316 | $ | 3,900 | $ | 1,802 | $ | 197 | $ | 13,616 | |||||||||||||
Ending loan recorded investment balances: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,048 | $ | — | $ | 11,077 | $ | 9,455 | $ | 2,327 | $ | 35 | $ | 25,942 | |||||||||||||
Collectively evaluated for impairment | 44,992 | 11,575 | 247,001 | 249,010 | 114,908 | 13,571 | 681,057 | ||||||||||||||||||||
Total ending loan balances | $ | 48,040 | $ | 11,575 | $ | 258,078 | $ | 258,465 | $ | 117,235 | $ | 13,606 | $ | 706,999 |
December 31, 2012 | |||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Balances at December 31, 2011 | $ | 897 | $ | 110 | $ | 7,465 | $ | 4,385 | $ | 1,621 | $ | 145 | $ | 14,623 | |||||||||||||
Chargeoffs | (2,152 | ) | — | (893 | ) | (760 | ) | (394 | ) | (72 | ) | (4,271 | ) | ||||||||||||||
Recoveries | 2 | — | 388 | 86 | 12 | 33 | 521 | ||||||||||||||||||||
Provision | 2,511 | 25 | (684 | ) | 637 | 859 | 90 | 3,438 | |||||||||||||||||||
Balances at December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | |||||||||||||
Ending allowance balance: | |||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166 | $ | — | $ | 2,724 | $ | 1,045 | $ | 338 | $ | 30 | $ | 4,303 | |||||||||||||
Collectively evaluated for impairment | 1,092 | 135 | 3,552 | 3,303 | 1,760 | 166 | 10,008 | ||||||||||||||||||||
Total ending allowance balances | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | |||||||||||||
Ending loan recorded investment balances: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,969 | $ | — | $ | 10,792 | $ | 10,640 | $ | 2,364 | $ | 30 | $ | 26,795 | |||||||||||||
Collectively evaluated for impairment | 47,249 | 11,876 | 249,828 | 244,290 | 116,209 | 13,230 | 682,682 | ||||||||||||||||||||
Total ending loan balances | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 |
Note 6. | Earnings Per Share |
Three months ended | |||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||
Shares | Per share Amount | Shares | Per share Amount | ||||||||||
Basic earnings per share | 7,072,587 | $ | 0.30 | 7,030,639 | $ | 0.25 | |||||||
Effect of dilutive securities: | |||||||||||||
stock options and grants | 30,083 | (0.01 | ) | 11,473 | — | ||||||||
Diluted earnings per share | 7,102,670 | $ | 0.29 | 7,042,112 | $ | 0.25 | |||||||
Six months ended | |||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||
Weighted Average Shares | Per share Amount | Weighted Average Shares | Per share Amount | ||||||||||
Basic earnings per share | 7,066,279 | $ | 0.48 | 7,017,629 | $ | 0.48 | |||||||
Effect of dilutive securities: | |||||||||||||
stock options and grants | 30,226 | — | 7,122 | $ | — | ||||||||
Diluted earnings per share | 7,096,505 | $ | 0.48 | 7,024,751 | $ | 0.48 |
Note 7. | Segment Reporting |
For the three months ended | For the three months ended | ||||||||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||||||||||||||||||
Retail Banking | Wealth Management | Mortgage Banking | Inter-company Elimina-tions | Consolidated | Retail Banking | Wealth Management | Mortgage Banking | Inter-company Elimina-tions | Consolidated | ||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Interest income | $ | 10,904 | $ | 3 | $ | 409 | $ | (324 | ) | $ | 10,992 | $ | 11,721 | $ | 3 | $ | 699 | $ | (459 | ) | $ | 11,964 | |||||||||||||||||
Trust and investment fee income | — | 1,162 | — | (37 | ) | 1,125 | — | 1,285 | — | (34 | ) | 1,251 | |||||||||||||||||||||||||||
Other income | 1,341 | — | 4,691 | (77 | ) | 5,955 | 822 | — | 5,246 | (148 | ) | 5,920 | |||||||||||||||||||||||||||
Total operating income | 12,245 | 1,165 | 5,100 | (438 | ) | 18,072 | 12,543 | 1,288 | 5,945 | (641 | ) | 19,135 | |||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Interest expense | 1,634 | — | 341 | (324 | ) | 1,651 | 2,219 | — | 546 | (459 | ) | 2,306 | |||||||||||||||||||||||||||
Salaries and employee benefits | 4,116 | 615 | 2,961 | — | 7,692 | 3,877 | 552 | 3,077 | — | 7,506 | |||||||||||||||||||||||||||||
Provision for (recovery of) loan losses | 180 | — | 4 | — | 184 | 766 | — | (36 | ) | — | 730 | ||||||||||||||||||||||||||||
Other | 4,096 | 337 | 1,097 | (114 | ) | 5,416 | 4,420 | 324 | 1,243 | (182 | ) | 5,805 | |||||||||||||||||||||||||||
Total operating expenses | 10,026 | 952 | 4,403 | (438 | ) | 14,943 | 11,282 | 876 | 4,830 | (641 | ) | 16,347 | |||||||||||||||||||||||||||
Income before income taxes and non-controlling interest | 2,219 | 213 | 697 | — | 3,129 | 1,261 | 412 | 1,115 | — | 2,788 | |||||||||||||||||||||||||||||
Income tax expense | 686 | 88 | — | — | 774 | 493 | 105 | — | — | 598 | |||||||||||||||||||||||||||||
Net Income | 1,533 | 125 | 697 | — | 2,355 | 768 | 307 | 1,115 | — | 2,190 | |||||||||||||||||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (262 | ) | — | (262 | ) | — | — | (421 | ) | — | (421 | ) | |||||||||||||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,533 | $ | 125 | $ | 435 | $ | — | $ | 2,093 | $ | 768 | $ | 307 | $ | 694 | $ | — | $ | 1,769 | |||||||||||||||||||
Total assets | $ | 1,203,277 | $ | 6,355 | $ | 75,257 | $ | (67,689 | ) | $ | 1,217,200 | $ | 1,201,833 | $ | 12,380 | $ | 76,990 | $ | (72,353 | ) | $ | 1,218,850 | |||||||||||||||||
Capital expenditures | 203 | — | 9 | — | $ | 212 | $ | 330 | $ | — | $ | — | $ | — | $ | 330 | |||||||||||||||||||||||
Goodwill and other intangibles | $ | — | $ | 4,065 | $ | 1,867 | $ | — | $ | 5,932 | $ | — | $ | 4,236 | $ | 1,867 | $ | — | $ | 6,103 |
For the six months ended | For the six months ended | ||||||||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||||||||||||||||||
Retail Banking | Wealth Management | Mortgage Banking | Inter-company Elimina-tions | Consolidated | Retail Banking | Wealth Management | Mortgage Banking | Inter-company Elimina-tions | Consolidated | ||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Interest income | $ | 21,992 | $ | 7 | $ | 878 | $ | (673 | ) | $ | 22,204 | $ | 23,575 | $ | 5 | $ | 1,437 | $ | (861 | ) | $ | 24,156 | |||||||||||||||||
Trust and investment fee income | — | 2,257 | — | (78 | ) | 2,179 | — | 2,241 | — | (69 | ) | 2,172 | |||||||||||||||||||||||||||
Other income | 2,185 | 74 | 8,803 | (233 | ) | 10,829 | 1,915 | — | 9,413 | (345 | ) | 10,983 | |||||||||||||||||||||||||||
Total operating income | 24,177 | 2,338 | 9,681 | (984 | ) | 35,212 | 25,490 | 2,246 | 10,850 | (1,275 | ) | 37,311 | |||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Interest expense | 3,382 | — | 719 | (673 | ) | 3,428 | 4,491 | — | 1,097 | (861 | ) | 4,727 | |||||||||||||||||||||||||||
Salaries and employee benefits | 8,302 | 1,230 | 5,960 | — | 15,492 | 7,673 | 1,080 | 6,110 | — | 14,863 | |||||||||||||||||||||||||||||
Provision for (recovery of) loan losses | (9 | ) | — | 5 | — | (4 | ) | 1,558 | — | (36 | ) | — | 1,522 | ||||||||||||||||||||||||||
Other | 8,690 | 687 | 2,478 | (311 | ) | 11,544 | 8,044 | 642 | 3,490 | (414 | ) | 11,762 | |||||||||||||||||||||||||||
Total operating expenses | 20,365 | 1,917 | 9,162 | (984 | ) | 30,460 | 21,766 | 1,722 | 10,661 | (1,275 | ) | 32,874 | |||||||||||||||||||||||||||
Income before income taxes and non-controlling interest | 3,812 | 421 | 519 | — | 4,752 | 3,724 | 524 | 189 | — | 4,437 | |||||||||||||||||||||||||||||
Income tax expense | 963 | 174 | — | — | 1,137 | 806 | 208 | — | — | 1,014 | |||||||||||||||||||||||||||||
Net Income | 2,849 | 247 | 519 | — | 3,615 | 2,918 | 316 | 189 | — | 3,423 | |||||||||||||||||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (195 | ) | — | (195 | ) | — | — | (72 | ) | — | (72 | ) | |||||||||||||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 2,849 | $ | 247 | $ | 324 | $ | — | $ | 3,420 | $ | 2,918 | $ | 316 | $ | 117 | $ | — | $ | 3,351 | |||||||||||||||||||
Total assets | $ | 1,203,277 | $ | 6,355 | $ | 75,257 | $ | (67,689 | ) | $ | 1,217,200 | $ | 1,201,833 | $ | 12,380 | $ | 76,990 | $ | (72,353 | ) | $ | 1,218,850 | |||||||||||||||||
Capital expenditures | $ | 451 | $ | — | $ | 9 | $ | — | $ | 460 | $ | 534 | $ | — | $ | — | $ | — | $ | 534 | |||||||||||||||||||
Goodwill and other intangibles | $ | — | $ | 4,065 | $ | 1,867 | $ | — | $ | 5,932 | $ | — | $ | 4,236 | $ | 1,867 | $ | — | $ | 6,103 |
Level I: | Quoted prices are available in active markets for identical assets or liabilities as of the reported date. |
Level II: | Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. |
Level III: | Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. |
June 30, 2013 | |||||||||||||||
(In thousands) | |||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||
Assets: | |||||||||||||||
U.S. government agencies | $ | 13,948 | $ | — | $ | 13,948 | $ | — | |||||||
Obligations of states and political subdivisions | 79,147 | — | 79,147 | — | |||||||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 166,563 | — | 166,563 | — | |||||||||||
Non-agency | 17,491 | — | 17,491 | — | |||||||||||
Other asset-backed securities | 33,033 | — | 33,033 | — | |||||||||||
Corporate preferred stock | 70 | — | 70 | — | |||||||||||
Corporate securities | 9,880 | — | 9,880 | — | |||||||||||
Loans held for sale | 65,322 | — | 65,322 | — | |||||||||||
Interest rate swaps | 159 | — | 159 | — | |||||||||||
Mortgage banking hedge instruments | 251 | — | 251 | — | |||||||||||
Liabilities: | |||||||||||||||
Mortgage interest rate locks | 73 | $ | — | $ | 73 | $ | — | ||||||||
Interest rate swaps | $ | 312 | $ | — | $ | 312 | $ | — |
December 31, 2012 | |||||||||||||||
(In thousands) | |||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||
Assets: | |||||||||||||||
U.S. government agencies | $ | 15,822 | $ | — | $ | 15,822 | $ | — | |||||||
Obligations of states and political subdivisions | 78,300 | — | 78,300 | — | |||||||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 166,943 | — | 166,943 | — | |||||||||||
Non-agency | 15,579 | — | 15,579 | — | |||||||||||
Other asset-backed securities | 34,642 | — | 34,642 | — | |||||||||||
Corporate preferred stock | 62 | — | 62 | — | |||||||||||
Corporate securities | 8,109 | — | 8,109 | — | |||||||||||
Loans held for sale | 82,114 | — | 82,114 | — | |||||||||||
Mortgage interest rate locks | 35 | — | 35 | — | |||||||||||
Interest rate swaps | 80 | — | 80 | — | |||||||||||
Liabilities: | |||||||||||||||
Interest rate swap | 541 | — | 541 | — | |||||||||||
Mortgage banking hedge instruments | 39 | — | 39 | — |
June 30, 2013 | ||||||||||||
(In thousands) | ||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||
Assets: | ||||||||||||
Impaired loans | 9,294 | — | 7,494 | 1,800 | ||||||||
December 31, 2012 | ||||||||||||
(In thousands) | ||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||
Assets: | ||||||||||||
Impaired loans | 12,343 | — | 11,165 | 1,178 |
June 30, 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||
Assets: | ||||||||||||||||
Other real estate owned | $ | 7,570 | $ | — | $ | 7,570 | $ | — | ||||||||
December 31, 2012 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||
Assets: | ||||||||||||||||
Other real estate owned | $ | 9,929 | $ | — | $ | 7,619 | $ | 2,310 |
Range | ||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | (Weighted Average) | |||||||
Impaired Loans | $ | 1,800 | Discounted appraised value | Discount for selling costs and age of appraisals. | 10% - 30% (21%) | |||||
Range | ||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | (Weighted Average) | |||||||
Impaired Loans | $ | 1,178 | Discounted appraised value | Discount for selling costs and age of appraisals. | 10% - 30% (21%) | |||||
Other real estate owned | $ | 2,310 | Discounted appraised value | Discount for selling costs, construction status, and age of appraisals. | 12% - 12% (12%) | |||||
June 30, 2013 | ||||||||||||||||||
Fair value measurements using: | ||||||||||||||||||
Carrying Amount | Total Fair Value | Level I | Level II | Level III | ||||||||||||||
(In thousands) | ||||||||||||||||||
Financial assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 58,476 | $ | 58,476 | $ | 58,476 | $ | — | — | |||||||||
Securities | 320,132 | 320,132 | — | 320,132 | — | |||||||||||||
Loans held for sale | 65,322 | 65,322 | — | 65,322 | — | |||||||||||||
Net portfolio loans | 693,383 | 707,058 | — | 7,494 | 699,564 | |||||||||||||
Bank owned life insurance | 16,726 | 16,726 | — | 16,726 | — | |||||||||||||
Accrued interest receivable | 4,038 | 4,038 | — | 4,038 | — | |||||||||||||
Interest rate swaps | 159 | 159 | — | 159 | — | |||||||||||||
Mortgage banking hedge instruments | 251 | 251 | — | 251 | — | |||||||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 961,874 | $ | 964,296 | $ | — | $ | 964,296 | — | |||||||||
Securities sold under agreements | ||||||||||||||||||
to repurchase | 35,783 | 35,783 | — | 35,783 | — | |||||||||||||
Short-term borrowings | 5,688 | 5,688 | — | 5,688 | — | |||||||||||||
FHLB borrowings | 85,000 | 85,929 | — | 85,929 | — | |||||||||||||
Trust preferred capital notes | 5,155 | 5,211 | — | 5,211 | — | |||||||||||||
Accrued interest payable | 544 | 544 | — | 544 | — | |||||||||||||
Mortgage interest rate locks | 73 | 73 | — | 73 | — | |||||||||||||
Interest rate swaps | 312 | 312 | — | 312 | — |
December 31, 2012 | ||||||||||||||||||
Fair value measurements using: | ||||||||||||||||||
Carrying Amount | Total Fair Value | Level I | Level II | Level III | ||||||||||||||
(In thousands) | ||||||||||||||||||
Financial assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 54,415 | $ | 54,415 | $ | 54,415 | $ | — | — | |||||||||
Securities | 319,457 | 319,457 | — | 319,457 | — | |||||||||||||
Loans held for sale | 82,114 | 82,114 | — | 82,114 | — | |||||||||||||
Net portfolio loans | 695,166 | 716,358 | — | 1,178 | 715,180 | |||||||||||||
Bank-owned life insurance | 16,484 | 16,484 | — | 16,484 | — | |||||||||||||
Accrued interest receivable | 3,974 | 3,974 | — | 3,974 | — | |||||||||||||
Mortgage interest rate locks | 35 | 35 | — | 35 | — | |||||||||||||
Interest rate swaps | 80 | 80 | — | 80 | — | |||||||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 981,900 | $ | 984,682 | $ | — | $ | 984,682 | — | |||||||||
Securities sold under agreements | ||||||||||||||||||
to repurchase | 33,975 | 33,975 | — | 33,975 | — | |||||||||||||
Short-term debt | 11,873 | 11,873 | — | 11,873 | — | |||||||||||||
FHLB borrowings | 72,912 | 78,912 | — | 78,912 | — | |||||||||||||
Trust preferred capital notes | 5,155 | 5,221 | — | 5,221 | — | |||||||||||||
Accrued interest payable | 654 | 654 | — | 654 | — | |||||||||||||
Interest rate swaps | 541 | 541 | — | 541 | — | |||||||||||||
Mortgage banking hedge instruments | 39 | 39 | — | 39 | — |
Accumulated Other Comprehensive Income (1) | |||||||||||
(in thousands) | |||||||||||
Net Unrealized Gains (Losses) on Securities | Derivatives | Total | |||||||||
Balance December 31, 2011 | $ | 4,133 | $ | (207 | ) | $ | 3,926 | ||||
Other comprehensive income before reclassifications | 1,451 | (87 | ) | 1,364 | |||||||
Amounts reclassified from accumulated other comprehensive income | (190 | ) | — | (190 | ) | ||||||
Change during period | 1,261 | (87 | ) | 1,174 | |||||||
Balance June 30, 2012 | $ | 5,394 | $ | (294 | ) | $ | 5,100 | ||||
Balance December 31, 2012 | $ | 6,771 | $ | (304 | ) | $ | 6,467 | ||||
Other comprehensive income (loss) before reclassifications | (3,825 | ) | 204 | (3,621 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | (246 | ) | — | (246 | ) | ||||||
Change during period | (4,071 | ) | 204 | (3,867 | ) | ||||||
Balance June 30, 2013 | $ | 2,700 | $ | (100 | ) | $ | 2,600 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||
(in thousands) | ||||||||||
Details about Accumulated Other Comprehensive Income Components | For the three months ended June 30, | Affected Line Item in the Consolidated Statements of Income | ||||||||
2013 | 2012 | |||||||||
Securities available for sale (1): | ||||||||||
Net securities gains reclassified into earnings | $ | (326 | ) | $ | (148 | ) | Gain on securities available for sale | |||
Related income tax expense | 111 | 50 | Income tax expense | |||||||
Net effect on accumulated other comprehensive income for the period | (215 | ) | (98 | ) | Net of tax | |||||
Total reclassifications for the period | $ | (215 | ) | $ | (98 | ) | Net of tax | |||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||
(in thousands) | ||||||||||
Details about Accumulated Other Comprehensive Income Components | For the six months ended June 30, | Affected Line Item in the Consolidated Statements of Income | ||||||||
2013 | 2012 | |||||||||
Securities available for sale (1): | ||||||||||
Net securities gains reclassified into earnings | $ | (373 | ) | $ | (288 | ) | Gain on securities available for sale | |||
Related income tax expense | 127 | 98 | Income tax expense | |||||||
Net effect on accumulated other comprehensive income for the period | (246 | ) | (190 | ) | Net of tax | |||||
Total reclassifications for the period | $ | (246 | ) | $ | (190 | ) | Net of tax |
Allocation of Goodwill to Reporting Units | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Carrying Value of Goodwill | (1) Carrying Value of Reporting Unit | (1) Estimated Fair Value of Reporting Unit | (1) Percentage by which Estimated Fair Value of Reporting Unit Exceeds | ||||||||||||||
Reporting Unit | December 31, 2012 | December 31, 2012 | December 31, 2012 | Carrying Value | |||||||||||||
STM | $ | 1,867 | $ | 7,880 | $ | 10,040 | 27.41 | % | |||||||||
MIG | 3,422 | 6,244 | (2) | 9,167 | 46.81 | % | |||||||||||
Total | $ | 5,289 | $ | 14,124 | $ | 19,207 | 35.99 | % |
(1) | Reported amounts reflect only Middleburg Financial Corporation shareholders' ownership interests. Estimated fair values are as of December 31, 2012. |
(2) | Includes $728,000 of amortizing intangible assets at December 31, 2012. |
Nonperforming Assets Middleburg Financial Corporation | |||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Nonperforming assets: | |||||||||||||||||||
Nonaccrual loans | $ | 20,376 | $ | 21,664 | $ | 25,346 | $ | 29,386 | $ | 8,606 | |||||||||
Restructured loans (1) | 5,366 | 5,132 | 3,853 | 1,254 | 2,096 | ||||||||||||||
Accruing loans greater than 90 days past due | 829 | 1,044 | 1,233 | 909 | 908 | ||||||||||||||
Total nonperforming loans | $ | 26,571 | $ | 27,840 | $ | 30,432 | $ | 31,549 | $ | 11,610 | |||||||||
Foreclosed property | 7,570 | 9,929 | 8,535 | 8,394 | 6,511 | ||||||||||||||
Total nonperforming assets | $ | 34,141 | $ | 37,769 | $ | 38,967 | $ | 39,943 | $ | 18,121 | |||||||||
Allowance for loan losses | $ | 13,616 | $ | 14,311 | $ | 14,623 | $ | 14,967 | $ | 9,185 | |||||||||
Nonperforming loans to period end portfolio loans | 3.76 | % | 3.92 | % | 4.53 | % | 4.79 | % | 1.80 | % | |||||||||
Allowance for loan losses to nonperforming loans | 51.24 | % | 51.40 | % | 48.05 | % | 47.44 | % | 79.11 | % | |||||||||
Nonperforming assets to period end assets | 2.80 | % | 3.05 | % | 3.27 | % | 3.62 | % | 1.86 | % |
Allowance for Loan Losses | |||||||
Six Months Ended | Year Ended | ||||||
June 30, 2013 | December 31, 2012 | ||||||
Balance, beginning of year | $ | 14,311 | $ | 14,623 | |||
Provision for loan losses | (4 | ) | 3,438 | ||||
Charge-offs: | |||||||
Real estate loans: | |||||||
Construction | 123 | 2,152 | |||||
Secured by 1-4 family residential | 569 | 893 | |||||
Other real estate loans | 97 | 760 | |||||
Commercial loans | 38 | 394 | |||||
Consumer loans | 22 | 72 | |||||
Total charge-offs | $ | 849 | $ | 4,271 | |||
Recoveries: | |||||||
Real estate loans: | |||||||
Construction | $ | 37 | $ | 2 | |||
Secured by 1-4 family residential | 78 | 388 | |||||
Other real estate loans | 20 | 86 | |||||
Commercial loans | 8 | 12 | |||||
Consumer loans | 15 | 33 | |||||
Total recoveries | $ | 158 | $ | 521 | |||
Net charge-offs | 691 | 3,750 | |||||
Balance, end of period | $ | 13,616 | $ | 14,311 | |||
Ratio of allowance for loan losses to portfolio loans outstanding at end of period | 1.93 | % | 2.02 | % | |||
Annualized ratio of net charge offs to average portfolio loans outstanding during the period | 0.18 | % | 0.54 | % |
Allocation of Allowance for Loan Losses | |||||||||||||
June 30, 2013 | Percent of loans in each category to total loans | December 31, 2012 | Percent of loans in each category to total loans | ||||||||||
Commercial, financial and agricultural | $ | 1,919 | 18.22 | % | $ | 2,233 | 18.39 | % | |||||
Real estate construction | 1,284 | 6.79 | % | 1,258 | 7.08 | % | |||||||
Real estate mortgage | 10,216 | 73.07 | % | 10,624 | 72.67 | % | |||||||
Consumer loans | 197 | 1.92 | % | 196 | 1.86 | % | |||||||
Totals | $ | 13,616 | 100.00 | % | $ | 14,311 | 100.00 | % |
June 30, 2013 | December 31, 2012 | |||
Total risk-based capital ratio | 15.4 | % | 15.4% | |
Tier 1 risk-based capital ratio | 14.2 | % | 14.1% | |
Tier 1 leverage ratio | 9.3 | % | 9.1% |
MIDDLEBURG FINANCIAL CORPORATION Average Balances, Income and Expenses, Yields and Rates | |||||||||||||||||||||
Three months ended June 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Average Balance | Income/ Expense | Yield/ Rate (2) | Average Balance | Income/ Expense | Yield/ Rate (2) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets : | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 268,369 | $ | 1,523 | 2.28 | % | $ | 264,106 | $ | 1,749 | 2.66 | % | |||||||||
Tax-exempt (1) | 69,390 | 978 | 5.65 | % | 61,813 | 903 | 5.88 | % | |||||||||||||
Total securities | $ | 337,759 | $ | 2,501 | 2.97 | % | $ | 325,919 | $ | 2,652 | 3.27 | % | |||||||||
Loans | |||||||||||||||||||||
Taxable | $ | 759,360 | $ | 8,789 | 4.64 | % | $ | 749,834 | $ | 9,616 | 5.16 | % | |||||||||
Tax-exempt (1) | 687 | 9 | 5.25 | % | — | — | — | ||||||||||||||
Total loans (3) | $ | 760,047 | $ | 8,798 | 4.64 | % | $ | 749,834 | $ | 9,616 | 5.16 | % | |||||||||
Interest bearing deposits in other financial institutions | 45,371 | 29 | 0.26 | % | 48,025 | 25 | 0.21 | % | |||||||||||||
Total earning assets | $ | 1,143,177 | $ | 11,328 | 3.97 | % | $ | 1,123,778 | $ | 12,293 | 4.40 | % | |||||||||
Less: allowances for credit losses | (13,550 | ) | (15,138 | ) | |||||||||||||||||
Total nonearning assets | 79,748 | 83,781 | |||||||||||||||||||
Total assets | $ | 1,209,375 | $ | 1,192,421 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Checking | $ | 319,704 | $ | 210 | 0.26 | % | $ | 310,262 | $ | 334 | 0.43 | % | |||||||||
Regular savings | 110,713 | 63 | 0.23 | % | 106,725 | 96 | 0.36 | % | |||||||||||||
Money market savings | 75,733 | 43 | 0.23 | % | 57,566 | 49 | 0.34 | % | |||||||||||||
Time deposits: | |||||||||||||||||||||
$100,000 and over | 139,073 | 432 | 1.25 | % | 140,233 | 560 | 1.61 | % | |||||||||||||
Under $100,000 | 142,217 | 505 | 1.42 | % | 180,961 | 807 | 1.79 | % | |||||||||||||
Total interest-bearing deposits | $ | 787,440 | $ | 1,253 | 0.64 | % | $ | 795,747 | $ | 1,846 | 0.93 | % | |||||||||
Short-term borrowings | 2,090 | 18 | 3.45 | % | 7,687 | 89 | 4.60 | % | |||||||||||||
Securities sold under agreements to repurchase | 34,204 | 81 | 0.95 | % | 32,268 | 84 | 1.03 | % | |||||||||||||
FHLB advances and other borrowings | 90,155 | 299 | 1.33 | % | 87,463 | 287 | 1.32 | % | |||||||||||||
Federal Funds Purchased | — | — | — | % | 3 | — | 0.00 | % | |||||||||||||
Total interest-bearing liabilities | $ | 913,889 | $ | 1,651 | 0.72 | % | $ | 923,168 | $ | 2,306 | 1.00 | % | |||||||||
Non-interest bearing liabilities | |||||||||||||||||||||
Demand Deposits | 169,894 | 150,689 | |||||||||||||||||||
Other liabilities | 6,917 | 6,822 | |||||||||||||||||||
Total liabilities | $ | 1,090,700 | $ | 1,080,679 | |||||||||||||||||
Non-controlling interest | 2,835 | 2,231 | |||||||||||||||||||
Shareholders' equity | 115,840 | 109,511 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,209,375 | $ | 1,192,421 | |||||||||||||||||
Net interest income | $ | 9,677 | $ | 9,987 | |||||||||||||||||
Interest rate spread | 3.25 | % | 3.40 | % | |||||||||||||||||
Cost of Funds | 0.61 | % | 0.86 | % | |||||||||||||||||
Interest expense as a percent of average earning assets | 0.58 | % | 0.82 | % | |||||||||||||||||
Net interest margin | 3.40 | % | 3.57 | % |
(1) | Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%. |
(2) | All yields and rates have been annualized on a 365 day year for 2013 and a 366 day year for 2012. |
(3) | Total average loans include loans on non-accrual status and loans held for sale. |
MIDDLEBURG FINANCIAL CORPORATION Average Balances, Income and Expenses, Yields and Rates | |||||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Average Balance | Income/ Expense | Yield/ Rate (2) | Average Balance | Income/ Expense | Yield/ Rate (2) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets : | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 267,177 | $ | 3,109 | 2.35 | % | $ | 263,757 | $ | 3,528 | 2.69 | % | |||||||||
Tax-exempt (1) | 68,327 | 1,933 | 5.70 | % | 61,808 | 1,823 | 5.93 | % | |||||||||||||
Total securities | $ | 335,504 | $ | 5,042 | 3.03 | % | $ | 325,565 | $ | 5,351 | 3.31 | % | |||||||||
Loans: | |||||||||||||||||||||
Taxable | $ | 757,913 | $ | 17,748 | 4.72 | % | $ | 747,647 | $ | 19,547 | 5.26 | % | |||||||||
Tax-exempt (1) | 687 | 18 | 5.28 | % | — | — | 0.00 | % | |||||||||||||
Total loans (3) | $ | 758,600 | $ | 17,766 | 4.72 | % | $ | 747,647 | $ | 19,547 | 5.26 | % | |||||||||
Interest bearing deposits in other financial institutions | 51,603 | 59 | 0.23 | % | 47,174 | 49 | 0.21 | % | |||||||||||||
Total earning assets | $ | 1,145,707 | $ | 22,867 | 4.03 | % | $ | 1,120,386 | $ | 24,947 | 4.48 | % | |||||||||
Less: allowances for credit losses | (13,905 | ) | (15,005 | ) | |||||||||||||||||
Total nonearning assets | 82,346 | 82,625 | |||||||||||||||||||
Total assets | $ | 1,214,148 | $ | 1,188,006 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Checking | $ | 326,329 | $ | 445 | 0.28 | % | $ | 306,953 | $ | 717 | 0.47 | % | |||||||||
Regular savings | 109,740 | 123 | 0.23 | % | 105,867 | 211 | 0.40 | % | |||||||||||||
Money market savings | 76,903 | 90 | 0.24 | % | 57,095 | 106 | 0.37 | % | |||||||||||||
Time deposits: | |||||||||||||||||||||
$100,000 and over | 143,242 | 939 | 1.32 | % | 141,460 | 1,132 | 1.61 | % | |||||||||||||
Under $100,000 | 142,795 | 1,029 | 1.45 | % | 180,568 | 1,573 | 1.75 | % | |||||||||||||
Total interest-bearing deposits | $ | 799,009 | $ | 2,626 | 0.66 | % | $ | 791,943 | $ | 3,739 | 0.95 | % | |||||||||
Short-term borrowings | 2,372 | 47 | 4.00 | % | 10,542 | 236 | 4.50 | % | |||||||||||||
Securities sold under agreements to repurchase | 34,153 | 161 | 0.95 | % | 33,196 | 167 | 1.01 | % | |||||||||||||
FHLB advances and other borrowings | 85,810 | 594 | 1.40 | % | 87,627 | 585 | 1.34 | % | |||||||||||||
Federal Funds Purchased | — | — | 0.00 | % | 2 | — | 0.00 | % | |||||||||||||
Total interest-bearing liabilities | $ | 921,344 | $ | 3,428 | 0.75 | % | $ | 923,310 | $ | 4,727 | 1.03 | % | |||||||||
Non-interest bearing liabilities | |||||||||||||||||||||
Demand Deposits | 167,268 | 147,411 | |||||||||||||||||||
Other liabilities | 7,249 | 6,536 | |||||||||||||||||||
Total liabilities | $ | 1,095,861 | $ | 1,077,257 | |||||||||||||||||
Non-controlling interest | 2,941 | 2,293 | |||||||||||||||||||
Shareholders' equity | 115,346 | 108,456 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,214,148 | $ | 1,188,006 | |||||||||||||||||
Net interest income | $ | 19,439 | $ | 20,220 |
Interest rate spread | 3.28 | % | 3.45 | % | |||||||||||||||||
Cost of Funds | 0.64 | % | 0.89 | % | |||||||||||||||||
Interest expense as a percent of average earning assets | 0.60 | % | 0.85 | % | |||||||||||||||||
Net interest margin | 3.42 | % | 3.63 | % |
(1) | Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%. |
(2) | All yields and rates have been annualized on a 365 day year for 2013 and a 366 day year for 2012. |
(3) | Total average loans include loans on non-accrual status and loans held for sale. |
For the three months ended June 30, | |||||||
Earnings Per Share | 2013 | 2012 | |||||
GAAP measures: | (in thousands) | ||||||
Interest Income – Loans | $ | 8,795 | $ | 9,594 | |||
Interest Income - Investments & Other | 2,197 | 2,370 | |||||
Interest Expense – Deposits | 1,253 | 1,846 | |||||
Interest Expense - Other Borrowings | 398 | 460 | |||||
Total Net Interest Income | $ | 9,341 | $ | 9,658 | |||
NON-GAAP measures: | |||||||
Tax Benefit Realized on Non-Taxable Interest Income - Municipal Securities and Loans | 336 | 329 | |||||
Total Tax Benefit Realized on Non-Taxable Interest Income | $ | 336 | $ | 329 | |||
Total Tax Equivalent Net Interest Income | $ | 9,677 | $ | 9,987 | |||
For the six months ended June 30, | |||||||
Earnings Per Share | 2013 | 2012 | |||||
GAAP measures: | (in thousands) | ||||||
Interest Income – Loans | $ | 17,760 | $ | 19,376 | |||
Interest Income - Investments & Other | 4,444 | 4,780 | |||||
Interest Expense – Deposits | 2,626 | 3,739 | |||||
Interest Expense - Other Borrowings | 802 | 988 | |||||
Total Net Interest Income | $ | 18,776 | $ | 19,429 | |||
NON-GAAP measures: | |||||||
Tax Benefit Realized on Non-Taxable Interest Income - Municipal Securities and Loans. | 663 | 791 | |||||
Total Tax Benefit Realized on Non-Taxable Interest Income | $ | 663 | $ | 791 | |||
$ | 19,439 | $ | 20,220 |
• | changes in general economic and business conditions in the Company’s market area; |
• | changes in banking and other laws and regulations applicable to the Company; |
• | maintaining asset qualities; |
• | risks inherent in making loans such as repayment risks and fluctuating collateral values; |
• | changing trends in customer profiles and behavior; |
• | maintaining cost controls and asset qualities as the Company opens or acquires new branches; |
• | changes in interest rates and interest rate policies; |
• | competition with other banks and financial institutions, and companies outside of the banking industry, including those companies that have substantially greater access to capital and other resources; |
• | the ability to continue to attract low cost core deposits to fund asset growth; |
• | the ability to successfully manage the Company’s growth or implement its growth strategies if it is unable to identify attractive markets, locations or opportunities to expand in the future; |
• | reliance on the Company’s management team, including its ability to attract and retain key personnel; |
• | demand, development and acceptance of new products and services; |
• | problems with technology utilized by the Company; |
• | maintaining capital levels adequate to support the Company’s growth; and |
• | other factors described in Item 1A, “Risk Factors,” included in our quarterly reports on Form 10-Q and the 2012 Form 10-K. |
Estimated Net Interest Income Sensitivity | ||||
Rate Change | As of June 30, 2013 | As of December 31, 2012 | ||
+ 200 bp | 3.0% | 0.4% | ||
- 200 bp | (12.9)% | (11.1)% |
31.1 | Rule 13a-14(a) Certification of Chief Executive Officer |
31.2 | Rule 13a-14(a) Certification of Chief Financial Officer |
32.1 | Statement of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. § 1350 |
101 | The following materials from the Middleburg Financial Corporation Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 formatted in Extensible Business reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. |
MIDDLEBURG FINANCIAL CORPORATION | |||||
(Registrant) | |||||
Date: | August 9, 2013 | /s/ Gary R. Shook | |||
Gary R. Shook | |||||
President & Chief Executive Officer | |||||
Date: | August 9, 2013 | /s/ Raj Mehra | |||
Raj Mehra | |||||
Executive Vice President | |||||
& Chief Financial Officer |
31.1 | Rule 13a-14(a) Certification of Chief Executive Officer |
31.2 | Rule 13a-14(a) Certification of Chief Financial Officer |
32.1 | Statement of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. § 1350 |
101 | The following materials from the Middleburg Financial Corporation Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 formatted in Extensible Business reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. |
1. | I have reviewed the Quarterly Report on Form 10-Q of Middleburg Financial Corporation for the period ended June 30, 2013; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Gary R. Shook | ||
Gary R. Shook | ||
President & Chief Executive Officer |
1. | I have reviewed the Quarterly Report on Form 10-Q of Middleburg Financial Corporation for the period ended June 30, 2013; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Raj Mehra | ||
Raj Mehra | ||
Executive Vice President and | ||
Chief Financial Officer |
(a) | the Form 10-Q fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and |
(b) | the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented in the Form 10-Q. |
By: | /s/ Gary R. Shook | Date: | August 9, 2013 | ||
Gary R. Shook | |||||
Chief Executive Officer | |||||
By: | /s/ Raj Mehra | Date: | August 9, 2013 | ||
Raj Mehra | |||||
Chief Financial Officer |
Capital Purchase Program
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Stockholders' Equity Note [Abstract] | |
Capital Purchase Program | Capital Purchase Program During 2009, the Company participated in the Capital Purchase Program established by the U.S. Department of the Treasury (the “Treasury”) under the Emergency Economic Stabilization Act of 2008 and issued 22,000 shares of preferred stock to the Treasury as well as a warrant (“the Warrant”) to purchase 208,202 shares of the Company’s common stock at an initial exercise price of $15.85 per share. As a result of the completion of the Company’s public stock offering in August 2009, the number of shares of common stock underlying the Warrant was reduced by one-half to 104,101. On December 23, 2009, the Company redeemed all of the shares of preferred stock issued to the Treasury. During 2011, the Warrant was sold by the U.S. Treasury at public auction and has not been exercised as of June 30, 2013. |
General
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at June 30, 2013 and December 31, 2012, the results of operations and comprehensive income (loss) for the three and six months ended June 30, 2013 and 2012, and changes in shareholders’ equity and cash flows for the six months ended June 30, 2013 and 2012, in accordance with accounting principles generally accepted in the United States of America. The statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”) of Middleburg Financial Corporation (the “Company”). The results of operations for the three and six month periods ended June 30, 2013 are not necessarily indicative of the results to be expected for the full year. In preparing these financial statements, management has evaluated subsequent events and transactions for potential recognition or disclosure through the date these financial statements were issued. Management has concluded there were no additional material subsequent events to be disclosed. Certain amounts in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation. The amounts of these items are not considered to be material variations from the original classifications and presentations. |
Allowance for Loan Losses (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | The following tables present a rollforward of the changes in the allowance for loan losses balance by class of loan, the balances in the allowance for loan losses and the recorded investment in loans by class of loan and, for the ending loan balances, based on impairment evaluation method as of June 30, 2013 and December 31, 2012.
|
Fair Value Measurements
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company adopted ASC 820, Fair Value Measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. ASC 820 clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows:
Measured on recurring basis The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the consolidated financial statements: Securities available for sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level I). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level II). Loans Held for Sale Loans held for sale are carried at market value. These loans currently consist of one-to-four-family residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data (Level II). Gains and losses on the sale of loans are recorded within income from mortgage banking activities on the consolidated statements of income. Derivatives Derivatives are recorded at fair value on a recurring basis. Third party vendors compile prices from various sources and may determine the fair value of identical or similar instruments by using pricing models that consider observable market data (Level II). The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012.
There were no financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the six months ended June 30, 2013. Measured on nonrecurring basis Certain financial assets and certain financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or impairment of individual assets. The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the consolidated financial statements: Impaired Loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, or the fair value of the underlying collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level II). However, if the collateral is a house or building in the process of construction or if an appraisal of the real estate property is over two years old, then the fair value is considered Level III. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level III). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments as a result of the evaluation process are recorded in the period incurred as provision for loan losses on the consolidated statements of income. When collateral-dependent loans are performing in accordance with the original terms of their contract, the Company continues to use the appraisal that was done at origination as the basis for the collateral value. When collateral-dependent loans are considered non-performing, they are assessed to determine the next appropriate course of action: either foreclosure or modification with forbearance agreement. The loans would then be re-appraised prior to foreclosure or before a forbearance agreement is executed. Thereafter, collateral for loans under a forbearance agreement may be re-appraised as the circumstances warrant. This process does not vary by loan type. The Company’s procedure to monitor the value of collateral for collateral dependent impaired loans between the receipt of an original appraisal and an updated appraisal is to review tax assessment records when they change annually. At the time of any change in tax assessment, an appropriate adjustment is made to the appraised value. Information considered in a determination not to order an updated appraisal includes the availability and reliability of tax assessment records and any significant changes in capitalization rates for income properties since the original appraisal. Other facts and circumstances on a case by case basis may be considered relative to a decision to order or not to order an updated appraisal. If, in the judgment of management, a reliable collateral value estimate cannot be obtained by an alternative method, an updated appraisal would be obtained. Circumstances that may warrant a re-appraisal for non-performing (impaired) loans might include foreclosure proceedings or a material adverse change in the borrower’s condition or that of the collateral underlying the loan. Examples include bankruptcy filing by the debtor or guarantors, loss of a major tenant in an income property, or a significant increase in capitalization rates for income properties. In some cases, management may decide that an updated appraisal for a non-performing loan is not necessary. In such cases, an estimate of the fair value of the collateral for the loans would be made by management by reference to current tax assessment records, the latest appraised value, and knowledge of collateral value fluctuations in a loan’s market area. If, in the judgment of management, a reliable collateral value estimate cannot be obtained by an alternative method, an updated appraisal would be obtained. For the purpose of the evaluation of the adequacy of our allowance for loan losses, new appraisals are discounted 10% for selling costs when determining the amount of the specific reserve. Thereafter, for collateral dependent impaired loans, we consider each loan on a case-by-case basis to determine whether or not the recorded values are appropriate given current market conditions. When warranted, new appraisals are obtained. If an appraisal is less than 12 months old, the only adjustment made to appraised values is the 10% discount for selling costs. If an appraisal is older than 12 months, management will use judgment based on knowledge of current market values and specific facts surrounding any particular property to determine if an additional valuation adjustment may be necessary. For real estate-secured impaired loans, if the Company does not have an adequate appraisal a new one is ordered to determine fair value. An appraisal that would be considered adequate for real estate-secured loans is one that is less than 12 months or one that is more than 12 months old but alternative methods with which to monitor the collateral value exist, such as reference to frequently updated tax assessments. Appraisals that would be considered inadequate for real estate-secured loans include appraisals older than 12 months and with a property located in a jurisdiction that does not reassess property values on a regular basis, or with a property to which substantial changes have been made since the last assessment. If the loan is secured by assets other than real estate and an appraisal is neither available nor feasible, the loan is treated as unsecured. It is the Company’s policy to account for partially charged-off loans consistently both before and after updated appraisals are obtained. Partially charged-off loans are placed in non-accrual status and remain in that status until the borrower has made a minimum of six consecutive monthly payments on a timely basis and there is evidence that the borrower has the ability to repay the balance of the loan plus accrued interest in full. Partially charged-off loans are not automatically returned to accrual status when updated appraisals are obtained. The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis as of June 30, 2013 and December 31, 2012:
Other Real Estate Owned The value of other real estate owned (“OREO”) is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level II). For other real estate owned properties, the Company’s policy is to obtain “as-is” appraisals on an annual basis as opposed to “as-completed” appraisals. This approach provides current values without regard to completion of any construction or renovation that may be in process on OREO properties. Accordingly, the Company considers the valuations to be Level II valuations even though some properties may be in process of renovation or construction. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability or other factors, then the fair value is considered Level III. Any initial fair value adjustment is charged against the Allowance for Loan Losses. Any subsequent fair value adjustments are recorded in the period incurred and included in other non-interest expense on the consolidated statements of income. For the purpose of OREO valuations, appraisals are discounted 10% for selling and holding costs and it is the policy of the Company to obtain annual appraisals for properties held in OREO. The following table summarizes the Company’s non-financial assets that were measured at fair value on a nonrecurring basis during the period.
The following table presents quantitative information as of June 30, 2013 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis:
The following table presents quantitative information as of December 31, 2012 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis:
The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. U.S. generally accepted accounting principles excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents For those cash equivalents, the carrying amount is a reasonable estimate of fair value. Loans, Net and Loans Held for Sale For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value. (See "Impaired Loans" above for a discussion of valuation methodologies for loans considered to be impaired.) Bank Owned Life Insurance The carrying amount of bank owned life insurance is a reasonable estimate of fair value. Accrued Interest Receivable and Payable The carrying amounts of accrued interest approximate fair values. Deposits The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. For all other deposits, the fair value is determined using the discounted cash flow method. The discount rate used is equal to the rate currently offered on similar products. Securities Sold Under Agreements to Repurchase and Short-Term Debt The carrying amounts approximate fair values. FHLB Borrowings, Long-Term and Subordinated Debt For variable rate long-term debt, fair values are based on carrying values. For fixed rate debt, fair values are estimated based on observable market prices and discounted cash flow analysis using interest rates for borrowings of similar remaining maturities and characteristics. The fair values of the Company's Subordinated Debentures are estimated using discounted cash flow analysis based on the Company's current incremental borrowing rates for similar types of borrowing arrangements. Derivatives Derivatives are are valued based on current market values obtained from independent sources. Third party vendors compile prices from various sources and may determine the fair value of identical or similar instruments by using pricing models. Off-Balance-Sheet Financial Instruments The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At June 30, 2013 and December 31, 2012, the fair values of loan commitments and standby letters of credit were deemed immaterial; therefore, they have not been included in the table below. Fair Value of Financial Instruments The estimated fair values, and related carrying amounts, of the Company's financial instruments as of June 30, 2013 are as follows:
The estimated fair values, and related carrying amounts, of the Company's financial instruments at December 31, 2012 are as follows:
The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company's financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company's overall interest rate risk. |
Earnings Per Share (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Shares | ||||
Basic earnings per share (in shares) | 7,072,587 | 7,030,639 | 7,066,279 | 7,017,629 |
Effect of dilutive securities: | ||||
stock options and grants (in shares) | 30,083 | 11,473 | 30,226 | 7,122 |
Diluted earnings per share (in shares) | 7,102,670 | 7,042,112 | 7,096,505 | 7,024,751 |
Per share Amount | ||||
Basic earnings per share (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.48 | $ 0.48 |
stock options and grant (in dollars per share) | $ (0.01) | $ 0.00 | $ 0.00 | $ 0.00 |
Diluted earnings per share (in dollars per share) | $ 0.29 | $ 0.25 | $ 0.48 | $ 0.48 |
Stock options, restricted grants and warrants excluded computation of earning per share (in shares) | 6,000 | 33,000 |
Fair Value Measurements (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial and non-financial assets measured at fair value on a nonrecurring basis | The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis as of June 30, 2013 and December 31, 2012:
The following table summarizes the Company’s non-financial assets that were measured at fair value on a nonrecurring basis during the period.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative information about Level III fair value measurements | The following table presents quantitative information as of June 30, 2013 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis:
The following table presents quantitative information as of December 31, 2012 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair values and related carrying amounts of financial instruments | The estimated fair values, and related carrying amounts, of the Company's financial instruments as of June 30, 2013 are as follows:
The estimated fair values, and related carrying amounts, of the Company's financial instruments at December 31, 2012 are as follows:
|
Segment Reporting (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment information | The following table presents segment information for the three months ended June 30, 2013 and 2012, respectively.
The following table presents segment information for the six months ended June 30, 2013 and 2012, respectively.
|
Capital Purchase Program (Details)
|
12 Months Ended | |
---|---|---|
Dec. 31, 2009
|
Aug. 31, 2009
|
|
Stockholders' Equity Note [Abstract] | ||
Preferred stock issued under capital repurchase program (in shares) | 22,000 | |
Warrants issued under capital repurchase program (in shares) | 208,202 | |
Exercise price of warrants (in dollars per share) | 15.85 | |
Class of warrant or right outstanding (in shares) | 104,101 |
Securities, Other Than Temporary Impairment (Details)
|
Jun. 30, 2013
Security
|
---|---|
Investments, Debt and Equity Securities [Abstract] | |
Number of securities temporarily impaired | 108 |
Number of securities temporarily impaired in investment grade | 107 |
Number of securities temporarily impaired in speculative grade | 1 |
Number of securities not temporarily impaired | 1 |
Earnings Per Share (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average number of shares used in computing earnings per share and the effect on weighted-average number of shares of diluted potential common stock | The following table shows the weighted average number of common shares used in computing earnings per share and the effect on the weighted average number of shares of potential dilutive common stock. Potential dilutive common stock has no effect on income available to common shareholders.
|
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (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
|
|
Other comprehensive income, net of tax: | ||||
Unrealized holding gains arising during the period, tax | $ 1,861 | $ 389 | $ 1,972 | $ 748 |
Reclassification adjustment for gains included in net income, tax | 111 | 50 | 127 | 98 |
Unrealized gain on interest rate swap, tax | $ 85 | $ 72 | $ 105 | $ 45 |
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Statement of Stockholders' Equity [Abstract] | ||
Vesting of restricted stock awards (in shares) | 21,455 | 12,432 |
Repurchase of restricted stock (in shares) | 5,281 | 2,736 |
Stock-Based Compensation
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Share–Based Compensation As of June 30, 2013, the Company sponsored one stock-based compensation plan (the 2006 Equity Compensation Plan), which provides for the granting of stock options, stock appreciation rights, stock awards, performance share awards, incentive awards and stock units. The 2006 Equity Compensation Plan was approved by the Company’s shareholders at the Annual Meeting held on April 26, 2006 and has succeeded the Company’s 1997 Stock Incentive Plan. The 2006 Equity Compensation plan was amended by the Company's shareholders at the Annual Meeting held on May 1, 2013 to increase the total number of shares which may be awarded. Under the plan, the Company may grant share-based compensation to its directors, officers, employees and other persons the Company determines have contributed to the profits or growth of the Company. The Company may grant awards of up to 430,000 shares of common stock under the 2006 Equity Compensation Plan as amended. The Company recognized $273,000 for share-based compensation expenses for the six months ended June 30, 2013. The following table summarizes stock options awarded under the 2006 Equity Compensation Plan and remaining unexercised options under the 1997 Stock Incentive Plan at the end of the reporting period.
As of the end of the reporting period, 66,171 options were vested and exercisable representing 6,000 shares issued under the original 1997 plan and 60,171 vested options under the 2006 Plan. As of June 30, 2013, no outstanding options were unvested. The weighted average remaining contractual term for options outstanding and exercisable at June 30, 2013 was 5.3 years. As of June 30, 2013, all compensation expense related to stock option awards has been recognized. The Aggregate Intrinsic Value above represents the difference between the market value of the stock at the end of the period and the weighted average exercise price of the options at the end of the period. The following table summarizes restricted stock awarded under the 2006 Equity Compensation Plan at the end of the reportable period.
The weighted average remaining contractual term for non-vested restricted stock at June 30, 2013 was 4.33 years. As of June 30, 2013, there was approximately $1.6 million of total unrecognized compensation expense related to non-vested restricted stock awards under the 2006 Equity Compensation Plan. |
Accumulated Other Comprehensive Income (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in component of accumulated other comprehensive income for the period | The following table presents information on changes in each component of accumulated other comprehensive income and the ending balances for the periods indicated:
(1) All amounts shown are net of applicable income taxes using an income tax rate of 34%. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information related to reclassifications from accumulated other comprehensive income during the period | The following tables present information related to reclassifications from accumulated other comprehensive income during the periods indicated.
(1) For more information related to unrealized gains on securities available for sale, see Note 3, "Securities." |