X
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
____ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
57-1001177
|
(State or other Jurisdiction of
|
(I.R.S. Employer
|
Incorporation or Organization)
|
Identification No.)
|
Large accelerated filer o
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller Reporting Company ■
|
Part I.
|
Financial Information
|
Page |
3 | ||
4 | ||
5 | ||
6 | ||
|
for the six months ended June 30, 2013 and 2012 |
7
|
8
|
||
27
|
||
|
50 | |
50
|
||
Part II.
|
Other Information
|
|
50
|
||
50
|
||
50
|
||
51
|
||
51
|
||
51
|
||
51
|
||
52
|
PROVIDENT COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
June 30, 2013 and December 31, 2012
|
||||||||
June 30,
|
December 31,
|
|||||||
ASSETS
|
2013
|
2012
|
||||||
(Unaudited)
|
(Audited)
|
|||||||
(DOLLARS IN THOUSANDS)
|
||||||||
Cash and due from banks
|
$ | 4,254 | $ | 6,230 | ||||
Interest earning balances with the Federal Reserve
|
4,251 | 2,531 | ||||||
Federal funds sold
|
8,470 | 20,298 | ||||||
Cash and cash equivalents
|
16,975 | 29,059 | ||||||
Investment and mortgage-backed securities-available for sale
|
180,408 | 169,214 | ||||||
Loans, net of unearned fees
|
124,400 | 127,781 | ||||||
Allowance for loan losses (ALL)
|
(4,312 | ) | (4,367 | ) | ||||
Loans, net of ALL
|
120,088 | 123,414 | ||||||
Other real estate owned (OREO)
|
5,182 | 9,174 | ||||||
Office properties and equipment, net
|
3,252 | 3,180 | ||||||
Federal Home Loan Bank stock, at cost
|
2,107 | 2,253 | ||||||
Federal Reserve Bank stock, at cost
|
736 | 771 | ||||||
Accrued interest receivable
|
1,232 | 1,248 | ||||||
Cash surrender value of life insurance
|
8,335 | 8,210 | ||||||
Other assets
|
5,733 | 3,419 | ||||||
TOTAL ASSETS
|
$ | 344,048 | $ | 349,942 | ||||
LIABILITIES
|
||||||||
Demand and savings deposits
|
$ | 163,868 | $ | 160,314 | ||||
Time deposits
|
113,745 | 117,167 | ||||||
Total deposits
|
277,613 | 277,481 | ||||||
Advances from the Federal Home Loan Bank
|
37,500 | 37,500 | ||||||
Securities sold under agreements to repurchase
|
5,449 | 6,280 | ||||||
Floating rate junior subordinated deferrable interest debentures
|
12,372 | 12,372 | ||||||
Accrued interest payable
|
1,266 | 1,148 | ||||||
Other liabilities
|
3,330 | 2,953 | ||||||
TOTAL LIABILITIES
|
337,530 | 337,734 | ||||||
Commitments and contingencies-Note 5
|
||||||||
SHAREHOLDERS' EQUITY
|
||||||||
Serial preferred stock - $0.01 par value
|
||||||||
authorized - 500, 000 shares
|
||||||||
issued and outstanding - 9,266 shares
|
||||||||
at June 30, 2013 and December 31, 2012
|
9,263 | 9,260 | ||||||
Common stock - $0.01 par value,
|
||||||||
authorized - 5,000,000 shares,
|
||||||||
issued-2,192,958 and outstanding 1,790,599 shares at June 30, 2013
|
||||||||
and December 31, 2012, respectively
|
20 | 20 | ||||||
Common stock warrant
|
25 | 25 | ||||||
Additional paid-in capital
|
12,919 | 12,919 | ||||||
Accumulated other comprehensive loss
|
(4,541 | ) | (527 | ) | ||||
Retained deficit, substantially restricted
|
(4,868 | ) | (3,189 | ) | ||||
Treasury stock, at cost
|
(6,300 | ) | (6,300 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY
|
6,518 | 12,208 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 344,048 | $ | 349,942 | ||||
See notes to consolidated financial statements.
|
PROVIDENT COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
|
|
|||||||||||||||
Three and Six Months Ended June 30, 2013 and 2012 (unaudited)
|
||||||||||||||||
Three Months Ended |
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(DOLLARS IN THOUSANDS
EXCEPT PER SHARE)
|
(DOLLARS IN THOUSANDS
EXCEPT PER SHARE)
|
|||||||||||||||
Interest Income:
|
||||||||||||||||
Loans
|
$ | 1,526 | $ | 1,805 | $ | 3,042 | $ | 3,781 | ||||||||
Deposits and federal funds sold
|
3 | 5 | 7 | 8 | ||||||||||||
Interest on mortgage-backed securities
|
259 | 337 | 462 | 766 | ||||||||||||
Interest and dividends on investment securities
|
721 | 646 | 1,375 | 1,244 | ||||||||||||
Total interest income
|
2,509 | 2,793 | 4,886 | 5,799 | ||||||||||||
Interest Expense:
|
||||||||||||||||
Deposit accounts
|
257 | 340 | 535 | 718 | ||||||||||||
Floating rate junior subordinated deferrable interest debentures
|
63 | 70 | 127 | 141 | ||||||||||||
Advances from the FHLB and other borrowings
|
370 | 569 | 735 | 1,175 | ||||||||||||
Total interest expense
|
690 | 979 | 1,397 | 2,034 | ||||||||||||
Net Interest Income
|
1,819 | 1,814 | 3,489 | 3,765 | ||||||||||||
Provision for loan losses
|
500 | 195 | 500 | 630 | ||||||||||||
Net interest income after
|
||||||||||||||||
provision for loan losses
|
1,319 | 1,619 | 2,989 | 3,135 | ||||||||||||
Non-Interest Income:
|
||||||||||||||||
Fees for financial services
|
652 | 653 | 1,285 | 1,265 | ||||||||||||
Other fees, net
|
5 | 5 | 9 | 10 | ||||||||||||
Net gain on sale of investments
|
24 | 286 | 24 | 525 | ||||||||||||
Total non-interest income
|
681 | 944 | 1,318 | 1,800 | ||||||||||||
Non-Interest Expense:
|
||||||||||||||||
Compensation and employee benefits
|
1,195 | 1,037 | 2,289 | 2,126 | ||||||||||||
Occupancy and equipment
|
664 | 674 | 1,291 | 1,280 | ||||||||||||
Deposit insurance premiums
|
193 | 211 | 385 | 394 | ||||||||||||
Professional services
|
170 | 192 | 335 | 355 | ||||||||||||
Advertising and public relations
|
9 | 14 | 17 | 25 | ||||||||||||
OREO and loan operations
|
711 | (65 | ) | 888 | 76 | |||||||||||
Items processing
|
64 | 69 | 127 | 137 | ||||||||||||
Telephone
|
48 | 53 | 90 | 89 | ||||||||||||
Other
|
237 | 223 | 476 | 382 | ||||||||||||
Total non-interest expense
|
3,291 | 2,408 | 5,898 | 4,864 | ||||||||||||
Net (loss) income before income taxes
|
(1,291 | ) | 155 | (1,591 | ) | 71 | ||||||||||
Expense for income taxes
|
42 | 12 | 85 | 12 | ||||||||||||
Net (loss) income
|
(1,333 | ) | 143 | (1,676 | ) | 59 | ||||||||||
Accretion of preferred stock to redemption value and preferred dividends accrued
|
119 | 119 | 235 | 237 | ||||||||||||
Net (loss) income to common shareholders
|
$ | (1,452 | ) | $ | 24 | $ | (1,911 | ) | $ | (178 | ) | |||||
Net (loss) income per common share (basic)
|
$ | (0.81 | ) | $ | 0.01 | $ | (1.07 | ) | $ | (0.10 | ) | |||||
Net (loss) income per common share (diluted)
|
$ | (0.81 | ) | $ | 0.01 | $ | (1.07 | ) | $ | (0.10 | ) | |||||
Weighted average number of common shares outstanding
|
||||||||||||||||
Basic
|
1,790,599 | 1,790,599 | 1,790,599 | 1,790,599 | ||||||||||||
Diluted
|
1,790,599 | 1,790,599 | 1,790,599 | 1,790,599 | ||||||||||||
See notes to consolidated financial statements.
|
PROVIDENT COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
|
|
|||||||||||||||
Three and Six Months Ended June 30, 2013 and 2012 (unaudited)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(DOLLARS IN THOUSANDS) |
(DOLLARS IN THOUSANDS)
|
|||||||||||||||
Net (loss) income
|
$ | (1,333 | ) | $ | 143 | $ | (1,676 | ) | $ | 59 | ||||||
Unrealized gain (loss) from'available for sale securities:
|
||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss):
|
||||||||||||||||
Unrealized holding gain (loss) arising during the period, pretax
|
(5,706 | ) | 655 | (6,213 | ) | (618 | ) | |||||||||
Tax expense (benefit)
|
1,940 | (223 | ) | 2,176 | 211 | |||||||||||
Reclassification adjustment for realized gain (loss) in net income (loss)
|
36 | 433 | 35 | 795 | ||||||||||||
Tax expense (benefit)
|
(12 | ) | (147 | ) | (12 | ) | (270 | ) | ||||||||
Other comprehensive income (loss)
|
(3,742 | ) | 718 | (4,014 | ) | 118 | ||||||||||
Comprehensive (loss) income
|
$ | (5,075 | ) | $ | 861 | $ | (5,690 | ) | $ | 177 |
PROVIDENT COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
Six Months Ended June 30, 2013 and 2012 (unaudited)
|
||||||||
Six Months Ended
|
||||||||
June 30,
|
June 30,
|
|||||||
2013
|
2012
|
|||||||
(IN THOUSANDS)
|
||||||||
OPERATING ACTIVITIES:
|
||||||||
Net (loss) income
|
$ | (1,676 | ) | $ | 59 | |||
Adjustments to reconcile net income (loss) to
|
||||||||
net cash (used for) provided by operating activities:
|
||||||||
Provision for loan losses
|
500 | 630 | ||||||
Amortization of securities
|
569 | 543 | ||||||
Depreciation expense
|
164 | 182 | ||||||
Recognition of deferred income, net of costs
|
(15 | ) | (127 | ) | ||||
Deferral of fee income, net of costs
|
55 | 129 | ||||||
Gain on investment transactions
|
(24 | ) | (525 | ) | ||||
Loss (gain) on OREO sales
|
258 | (97 | ) | |||||
OREO impairment
|
750 | 119 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Decrease in accrued interest receivable
|
16 | 220 | ||||||
Increase in cash surrender value of life insurance
|
(125 | ) | (143 | ) | ||||
(Increase) decrease in other assets
|
(2,314 | ) | 126 | |||||
Increase in other liabilities
|
377 | 208 | ||||||
Increase in accrued interest payable
|
118 | 108 | ||||||
Net cash (used for) provided by operating activities
|
(1,347 | ) | 1,432 | |||||
INVESTING ACTIVITIES:
|
||||||||
Purchase of AFS securities
|
(91,000 | ) | (107,426 | ) | ||||
Proceeds from sales of AFS securities
|
1,774 | 24,448 | ||||||
Maturities of AFS securities
|
66,550 | 86,954 | ||||||
Principal repayment on mortgage-backed securities AFS
|
6,923 | 8,598 | ||||||
Net decrease in loans
|
1,669 | 12,840 | ||||||
Redemption of FHLB/FRB stock
|
181 | 208 | ||||||
Proceeds from sales of OREO, net of costs and improvements
|
4,101 | 826 | ||||||
Purchase of office properties and equipment
|
(236 | ) | (64 | ) | ||||
Net cash (used) provided by investing activities
|
(10,038 | ) | 26,384 | |||||
FINANCING ACTIVITIES:
|
||||||||
Decrease in other borrowings
|
(831 | ) | (4,429 | ) | ||||
Increase (decrease) in deposit accounts
|
132 | (1,974 | ) | |||||
Net cash used for financing activities
|
(699 | ) | (6,403 | ) | ||||
NET INCREASE (DECREASE) IN CASH
|
||||||||
AND CASH EQUIVALENTS
|
(12,084 | ) | 21,413 | |||||
CASH AND CASH EQUIVALENTS
|
||||||||
AT BEGINNING OF PERIOD
|
29,059 | 23,893 | ||||||
CASH AND CASH EQUIVALENTS
|
||||||||
AT END OF PERIOD
|
$ | 16,975 | $ | 45,306 | ||||
SUPPLEMENTAL DISCLOSURES:
|
||||||||
Cash paid for:
|
||||||||
Income taxes
|
$ | -- | $ | -- | ||||
Interest
|
1,279 | 1,926 | ||||||
Non-cash transactions:
|
||||||||
Loans foreclosed
|
$ | 1,117 | $ | 2,090 | ||||
Unrealized gain (loss) on securities available for sale, net of income tax
|
(4,014 | ) | 444 | |||||
See notes to consolidated financial statements.
|
PROVIDENT COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 and 2012 (Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
Retained
|
Accumulated
|
|||||||||||||||||||||||||||||||||||||||
Additional
|
Earnings,
|
Other
|
Treasury |
Total
|
||||||||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid-in
|
Substantially
|
Comprehensive
|
Stock
|
Shareholders'
|
||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Warrants
|
Capital
|
Restricted
|
Loss
|
at Cost
|
Equity
|
|||||||||||||||||||||||||||||||
(Dollars in Thousands, Except Share Data) | ||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2011
|
9,266 | $ | 9,255 | 1,790,599 | $ | 20 | $ | 25 | $ | 12,919 | $ | (3,062 | ) | $ | (387 | ) | $ | (6,300 | ) | $ | 12,470 | |||||||||||||||||||
Net income
|
59 | 59 | ||||||||||||||||||||||||||||||||||||||
Comprehensive loss
|
118 | 118 | ||||||||||||||||||||||||||||||||||||||
Accretion of Preferred Stock to redemption value
|
3 | (3 | ) | -- | ||||||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2012
|
9,266 | $ | 9,258 | 1,790,599 | $ | 20 | $ | 25 | $ | 12,919 | $ | (3,006 | ) | $ | (269 | ) | $ | (6,300 | ) | $ | 12,647 | |||||||||||||||||||
BALANCE AT DECEMBER 31, 2012
|
9,266 | $ | 9,260 | 1,790,599 | $ | 20 | $ | 25 | $ | 12,919 | $ | (3,189 | ) | $ | (527 | ) | $ | (6,300 | ) | $ | 12,208 | |||||||||||||||||||
Net loss
|
(1,676 | ) | (1,676 | ) | ||||||||||||||||||||||||||||||||||||
Comprehensive loss
|
(4,014 | ) | (4,014 | ) | ||||||||||||||||||||||||||||||||||||
Accretion of Preferred Stock to redemption value
|
3 | (3 | ) | -- | ||||||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2013
|
9,266 | $ | 9,263 | 1,790,599 | $ | 20 | $ | 25 | $ | 12,919 | $ | (4,868 | ) | $ | (4,541 | ) | $ | (6,300 | ) | $ | 6,518 | |||||||||||||||||||
See notes to consolidated financial statements
|
June 30, | December 31, | |||||||
2013 | 2012 | |||||||
Mortgage loans:
|
||||||||
Fixed-rate residential
|
$ | 5,740 | $ | 6,329 | ||||
Adjustable-rate residential
|
3,230 | 3,376 | ||||||
Commercial real estate
|
74,383 | 75,210 | ||||||
Construction
|
414 | 59 | ||||||
Total mortgage loans
|
83,767 | 84,974 | ||||||
Commercial nonreal estate
|
9,120 | 9,024 | ||||||
Consumer loans:
|
||||||||
Home equity
|
13,045 | 14,063 | ||||||
Consumer and installment
|
17,100 | 19,468 | ||||||
Consumer lines of credit
|
267 | 267 | ||||||
Total consumer loans
|
30,412 | 33,798 | ||||||
Total loans
|
123,299 | 127,796 | ||||||
Adjustments:
|
||||||||
Unamortized loan discount
|
(169 | ) | (181 | ) | ||||
Loans in process
|
1,141 | -- | ||||||
Allowance for loan losses
|
(4,312 | ) | (4,367 | ) | ||||
Net deferred loan origination costs
|
129 | 166 | ||||||
Total, net
|
$ | 120,088 | $ | 123,414 | ||||
Weighted-average interest rate of loans
|
4.90 | % | 5.15 | % |
June 30, | December 31, | |||||||
2013
|
2012
|
|||||||
Loans receivable for which there is a related allowance for credit losses
determined in accordance with ASC 310-10/Statement No. 114
|
$ | 4,944 | $ | 5,339 | ||||
Other impaired loans
|
15,755 | 20,508 | ||||||
Total impaired loans
|
$ | 20,699 | $ | 25,847 | ||||
Average monthly balance of impaired loans
|
$ | 19,161 | $ | 29,171 | ||||
Specific allowance for credit losses
|
$ | 2,135 | $ | 2,385 |
June 30, 2013
|
Unpaid
Principal
Balance
|
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial real estate
|
$ | 9,929 | $ | 8,499 | $ | -- | $ | 9,214 | ||||||||
Commercial non real estate
|
2,353 | 2,002 | -- | 2,178 | ||||||||||||
|
||||||||||||||||
Consumer
|
||||||||||||||||
Consumer – other
|
3,989 | 3,036 | -- | 3,513 | ||||||||||||
Consumer - home equity
|
689 | 646 | -- | 667 | ||||||||||||
Residential real estate
|
||||||||||||||||
1-4 Family
|
1,773 | 1,572 | -- | 1,672 | ||||||||||||
With a related allowance recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial real estate
|
$ | 5,597 | $ | 3,340 | $ | 1,273 | $ | 4,468 | ||||||||
Commercial non real estate
|
112 | 95 | 47 | 104 | ||||||||||||
|
||||||||||||||||
Consumer
|
||||||||||||||||
Consumer – other
|
1,778 | 1,509 | 815 | 1,644 | ||||||||||||
Residential real estate
|
||||||||||||||||
1-4 Family
|
-- | -- | -- | -- | ||||||||||||
Total:
|
$ | 26,220 | $ | 20,699 | $ | 2,135 | $ | 23,460 | ||||||||
Commercial
|
17,991 | 13,936 | 1,320 | 15,964 | ||||||||||||
Consumer
|
6,456 | 5,191 | 815 | 5,824 | ||||||||||||
Residential
|
1,773 | 1,572 | -- | 1,672 |
December 31, 2012
|
Unpaid
Principal Balance
|
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial real estate
|
$ | 14,778 | $ | 13,273 | $ | -- | $ | 14,025 | ||||||||
Commercial non real estate
|
2,004 | 1,680 | -- | 1,842 | ||||||||||||
|
||||||||||||||||
Consumer
|
||||||||||||||||
Consumer - other
|
4,611 | 3,696 | -- | 4,154 | ||||||||||||
Consumer - home equity
|
566 | 536 | -- | 551 | ||||||||||||
Residential real estate
|
||||||||||||||||
1-4 Family
|
1,448 | 1,323 | -- | 1,385 | ||||||||||||
With a related allowance recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial real estate
|
$ | 5,622 | $ | 3,388 | $ | 1,260 | $ | 4,505 | ||||||||
Commercial non real estate
|
206 | 189 | 49 | 198 | ||||||||||||
|
||||||||||||||||
Consumer
|
||||||||||||||||
Consumer – other
|
1,363 | 1,354 | 962 | 1,358 | ||||||||||||
Residential real estate
|
||||||||||||||||
1-4 Family
|
416 | 408 | 114 | 412 | ||||||||||||
Total:
|
$ | 31,014 | $ | 25,847 | $ | 2,385 | $ | 28,430 | ||||||||
Commercial
|
22,610 | 18,530 | 1,309 | 20,570 | ||||||||||||
Consumer
|
6,540 | 5,586 | 962 | 6,063 | ||||||||||||
Residential
|
1,864 | 1,731 | 114 | 1,797 |
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Commercial
|
||||||||
Commercial real estate
|
$ | 6,878 | $ | 8,734 | ||||
Commercial non real estate
|
917 | 835 | ||||||
Consumer
|
||||||||
Consumer – other
|
2,733 | 2,287 | ||||||
Consumer – automobile
|
7 | 19 | ||||||
Consumer – home equity
|
440 | 329 | ||||||
Residential real estate
|
||||||||
1-4 family
|
1,228 | 970 | ||||||
Total
|
$ | 12,203 | $ | 13,174 |
Commercial
|
||||||||||||||||||||
Commercial
|
Real Estate
|
Consumer
|
Residential
|
Total
|
||||||||||||||||
June 30, 2013
|
||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning balance
|
$ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | ||||||||||
Charge-offs
|
-- | (299 | ) | (337 | ) | (15 | ) | (651 | ) | |||||||||||
Recoveries
|
3 | 65 | 22 | 5 | 95 | |||||||||||||||
Provisions
|
-- | 400 | 204 | (104 | ) | 500 | ||||||||||||||
Ending balance
|
$ | 1,043 | $ | 1,841 | $ | 1,190 | $ | 238 | $ | 4,312 | ||||||||||
Loans receivable:
|
||||||||||||||||||||
Ending balances:
|
||||||||||||||||||||
Individually evaluated for impairment
|
$ | 2,097 | $ | 11,839 | $ | 5,191 | $ | 1,572 | $ | 20,699 | ||||||||||
Allowance for loan losses
|
47 | 1,273 | 815 | -- | 2,135 | |||||||||||||||
Collectively evaluated for impairment imprimpairment
|
$ | 7,023 | $ | 62,544 | $ | 25,221 | $ | 7,812 | $ | 102,518 | ||||||||||
Allowance for loan losses
|
996 | 568 | 375 | 238 | 2,177 | |||||||||||||||
Ending balance
|
$ | 9,120 | $ | 74,383 | $ | 30,412 | $ | 9,384 | $ | 123,217 | ||||||||||
Total allowance for loan losses
|
$ | 1,043 | $ | 1,841 | $ | 1,190 | $ | 238 | $ | 4,312 |
Commercial
|
||||||||||||||||||||
Commercial
|
Real Estate
|
Consumer
|
Residential
|
Total
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning balance
|
$ | 1,887 | $ | 1,920 | $ | 484 | $ | 258 | $ | 4,549 | ||||||||||
Charge-offs
|
(118 | ) | (339 | ) | (576 | ) | (8 | ) | (1,041 | ) | ||||||||||
Recoveries
|
52 | 94 | 5 | 4 | 155 | |||||||||||||||
Provisions
|
(781 | ) | -- | 1,388 | 97 | 704 | ||||||||||||||
Ending Balance
|
$ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | ||||||||||
Loans receivable:
|
||||||||||||||||||||
Ending balances:
|
||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,869 | $ | 16,661 | $ | 5,586 | $ | 1,731 | $ | 25,847 | ||||||||||
Allowance for loan losses
|
49 | 1,260 | 962 | 114 | 2,385 | |||||||||||||||
Collectively evaluated for impairment imprimpairment
|
$ | 7,155 | $ | 58,549 | $ | 28,212 | $ | 8,033 | $ | 101,949 | ||||||||||
Allowance for loan losses
|
991 | 415 | 339 | 237 | 1,982 | |||||||||||||||
Ending balance
|
$ | 9,024 | $ | 75,210 | $ | 33,798 | $ | 9,764 | $ | 127,796 | ||||||||||
Total allowance for loan losses
|
$ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 |
|
Commercial non real
estate
|
Commercial real
estate
|
||||||||||||||
June 30,
|
December 31,
|
June 30,
|
December 31,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Grade 1 Superior quality
|
$ | 53 | $ | 58 | $ | -- | $ | -- | ||||||||
Grade 2 Good quality
|
-- | -- | -- | -- | ||||||||||||
Grade 3 Satisfactory
|
215 | 209 | 6,565 | 7,238 | ||||||||||||
Grade 4 Acceptable
|
3,379 | 4,148 | 25,928 | 24,844 | ||||||||||||
Grade 5 Watch
|
2,631 | 2,433 | 27,316 | 23,762 | ||||||||||||
Grade 6 Special mention
|
1,165 | 1,125 | 3,930 | 6,860 | ||||||||||||
Grade 7 Substandard
|
1,582 | 957 | 9,394 | 11,256 | ||||||||||||
Grade 8 Doubtful
|
95 | 94 | 1,250 | 1,250 | ||||||||||||
Total
|
$ | 9,120 | $ | 9,024 | $ | 74,383 | $ | 75,210 |
Residential
|
Consumer
|
|||||||||||||||
June 30,
|
December 31,
|
June 30, |
December 31,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Grade:
|
||||||||||||||||
Pass
|
$ | 7,619 | $ | 7,905 | $ | 25,470 | $ | 27,976 | ||||||||
Special mention
|
383 | 732 | 791 | 1,366 | ||||||||||||
Substandard
|
1,382 | 1,127 | 4,151 | 4,456 | ||||||||||||
Total
|
$ | 9,384 | $ | 9,764 | $ | 30,412 | $ | 33,798 |
Residential real estate | ||||||||||||||||||||||||||||||||
Other
|
Consumer automobile
|
Home equity
|
1-4 family
|
|||||||||||||||||||||||||||||
June 30,
|
December 31,
|
June 30,
|
December 31,
|
June 30,
|
December 31,
|
June 30,
|
December 31,
|
|||||||||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||||||||||
Performing | $ | 13,843 | $ | 16,676 | $ | 784 | $ | 753 | $ | 12,605 | $ | 13,734 | $ | 8,156 | $ | 8,794 | ||||||||||||||||
Nonperforming | 2,733 | 2,287 | 7 | 19 | 440 | 329 | 1,228 | 970 | ||||||||||||||||||||||||
Total | $ | 16,576 | $ | 18,963 | $ | 791 | $ | 772 | $ | 13,045 | $ | 14,063 | $ | 9,384 | $ | 9,764 |
Greater | ||||||||||||||||||||||||
30 -59 Days | 60 - 89 Days | Than | Total Past | Total Loans | ||||||||||||||||||||
Past Due | Past Due | 90 Days | Due | Current | Receivable | |||||||||||||||||||
June 30, 2013
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial non real estate
|
$ | 75 | $ | 64 | $ | 854 | $ | 993 | $ | 8,127 | $ | 9,120 | ||||||||||||
Commercial real estate
|
931 | 1,459 | 4,536 | 6,926 | 67,457 | 74,383 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Consumer – other
|
635 | 322 | 1,161 | 2,118 | 14,458 | 16,576 | ||||||||||||||||||
Consumer – automobile
|
2 | 3 | 2 | 7 | 784 | 791 | ||||||||||||||||||
Consumer – home equity
|
148 | -- | 163 | 311 | 12,734 | 13,045 | ||||||||||||||||||
Residential 1-4 family
|
156 | 162 | 278 | 596 | 8,788 | 9,384 | ||||||||||||||||||
Total
|
$ | 1,947 | $ | 2,010 | $ | 6,994 | $ | 10,951 | $ | 112,348 | $ | 123,299 |
December 31, 2012
|
||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial non real estate
|
$ | 146 | $ | 110 | $ | 646 | $ | 902 | $ | 8,122 | $ | 9,024 | ||||||||||||
Commercial real estate
|
2,525 | 482 | 6,047 | 9,054 | 66,156 | 75,210 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Consumer – other
|
638 | 419 | 1,045 | 2,102 | 16,861 | 18,963 | ||||||||||||||||||
Consumer – automobile
|
11 | 5 | 3 | 19 | 753 | 772 | ||||||||||||||||||
Consumer – home equity
|
157 | 7 | 168 | 332 | 13,731 | 14,063 | ||||||||||||||||||
Residential 1-4 family
|
259 | 406 | 970 | 1,635 | 8,129 | 9,764 | ||||||||||||||||||
Total
|
$ | 3,736 | $ | 1,429 | $ | 8,879 | 14,044 | $ | 113,752 | $ | 127,796 |
Three Months Ended June 30, 2013
|
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Pre
|
Post
|
Pre
|
Post
|
|||||||||||||||||||
Modification
|
Modification
|
Modification
|
Modification
|
|||||||||||||||||||
Number
|
Outstanding
|
Outstanding
|
Number
|
Outstanding
|
Outstanding
|
|||||||||||||||||
Troubled Debt Restructurings
|
of New
|
Recorded
|
Recorded
|
of New
|
Recorded
|
Recorded
|
||||||||||||||||
Added during current period
|
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
||||||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||
Commercial non real estate
|
- | $ | -- | $ | -- | -- | $ | -- | $ | -- | ||||||||||||
Commercial real estate
|
2 | 326 | 326 | 2 | 326 | 326 | ||||||||||||||||
Consumer:
|
||||||||||||||||||||||
Consumer – other
|
2 | 261 | 261 | 3 | 346 | 341 | ||||||||||||||||
Residential 1-4 family
|
1 | 49 | 49 | 1 | 49 | 49 | ||||||||||||||||
Total | 5 | $ | 636 | $ | 636 | 6 | $ | 721 | $ | 716 | ||||||||||||
Three Months Ended June 30, 2013
|
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Post
|
Post
|
|||||||||||||||||||||
Modification
|
Modification
|
|||||||||||||||||||||
Number
|
Outstanding
|
Defaulted
|
Number
|
Outstanding
|
Defaulted
|
|||||||||||||||||
Troubled Debt Restructurings
|
of New
|
Recorded
|
Recorded
|
of New
|
Recorded
|
Recorded
|
||||||||||||||||
Defaulted during the period
|
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
||||||||||||||||
Added since last twelve months
|
(in thousands)
|
|||||||||||||||||||||
|
||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||
Commercial non real estate
|
-- | $ | -- | $ | -- | -- | $ | -- | $ | -- | ||||||||||||
Commercial real estate
|
-- | -- | -- | -- | -- | -- | ||||||||||||||||
Consumer:
|
||||||||||||||||||||||
Consumer – other
|
2 | 187 | 187 | 2 | 187 | 187 | ||||||||||||||||
Total
|
2 | $ | 187 | $ | 187 | 2 | $ | 187 | $ | 187 |
The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Total credit exposure at June 30, 2013 related to these items is summarized below:
|
Loan Commitments:
|
Contract Amount
|
|||
Unused portions of loans and credit lines
|
$ | 14,076,000 |
Amount Outstanding at
June 30,
|
||||||||||||||||||||
Name
|
2013
|
2012 |
Rate
|
Maturity
|
Distribution
Payment
Frequency
|
|||||||||||||||
Provident Community
Bancshares Capital Trust I
|
$ | 4,000,000 | $ | 4,000,000 | 2.02 | % |
October 1, 2036
|
Quarterly
|
||||||||||||
Provident Community
Bancshares Capital Trust II
|
8,000,000 | 8,000,000 | 2.02 | % |
March 1, 2037
|
Quarterly
|
||||||||||||||
Total
|
$ | 12,000,000 | $ | 12,000,000 |
Level 1
|
Valuation is based upon quoted prices in active markets for identical assets or liabilities.
|
Level 2
|
Valuation is based upon quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3
|
Valuation is based upon quoted prices for similar assets or liabilities; quoted prices in markets that are not active; and model-based techniques whose value is determined using pricing models, discounted cash flow methodologies and similar techniques.
|
Quoted Prices in
|
Significant Other |
Significant
|
||||||||||||||
Total
|
Active Markets for
|
Observable |
Unobservable
|
|||||||||||||
June 30, |
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
2013
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Investment Securities:
|
||||||||||||||||
Government Sponsored Enterprises
|
$ | 121,055 | $ | 121,055 | $ | -- | $ | -- | ||||||||
Trust Preferred Securities
|
4,247 | -- | 2,554 | 1,693 | ||||||||||||
Total Investment Securities
|
125,302 | 121,055 | 2,554 | 1,693 | ||||||||||||
Mortgage-Backed and
Related Securities
|
55,106 | -- | 55,106 | -- | ||||||||||||
Total
|
$ | 180,408 | $ | 121,055 | $ | 57,660 | $ | 1,693 |
Quoted Prices in
|
Significant Other
|
Significant
|
||||||||||||||
Total
|
Active Markets for |
Observable
|
Unobservable
|
|||||||||||||
December 31, |
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Investment Securities:
|
||||||||||||||||
Government Sponsored Enterprises
|
$ | 123,679 | $ | 123,679 | -- | -- | ||||||||||
Trust Preferred Securities
|
4,335 | -- | 2,788 | 1,547 | ||||||||||||
Total Investment Securities
|
128,014 | 123,679 | 2,788 | 1,547 | ||||||||||||
Mortgage-Backed and
Related Securities
|
41,200 | -- | 41,200 | -- | ||||||||||||
Total
|
$ | 169,214 | $ | 123,679 | $ | 43,988 | $ | 1,547 |
Fair Value Measurements Using Significant
|
||||
Unobservable Inputs (Level 3)
|
||||
|
(in thousands)
|
|||
Investment Securities
|
||||
|
Available-for-Sale
|
|||
Beginning balance at March 31, 2013
|
$ | 1,820 | ||
Transfers into Level 3
|
-- | |||
Total gains/ (losses) included in:
|
||||
Net loss
|
-- | |||
Other comprehensive income
|
(123 | ) | ||
Purchases, sales, issuances and settlements, net
|
(4 | ) | ||
Ending balance at June 30, 2013
|
$ | 1,693 | ||
|
Fair Value Measurements Using Significant
|
|||
Unobservable Inputs (Level 3)
|
||||
(in thousands)
|
||||
Investment Securities
|
||||
|
Available-for-Sale
|
|||
Beginning balance at December 31, 2012
|
$ | 1,547 | ||
Transfers into Level 3
|
-- | |||
Total gains/ (losses) included in:
|
||||
Net loss
|
-- | |||
Other comprehensive income
|
150 | |||
Purchases, sales, issuances and settlements, net
|
(4 | ) | ||
Ending balance at June 30, 2013
|
$ | 1,693 |
Fair Value at
June 30,
2013
|
Valuation
Technique
|
Significant
Unobservable
Inputs
|
General Range
Of Significant
Unobservable
Input Values
|
|||||||||||||
Impaired loans
|
$ | 18,564 |
Appraised Value/
Discounted Cash
Flows Market Value of Note
|
Appraisals and/or sales of
comparable properties/
Independent quotes
|
0-25 | % | ||||||||||
Other
real estate owned
|
5,182 |
Appraised Value/
Comparable Sales/
Other Estimates from
Independent Sources
|
Appraisals and/or sales of
comparable properties/
Independent quotes
|
0-40 | % | |||||||||||
Assets at fair value
|
$ | 23,746 |
Fair Value at
December 31,
2012
|
Valuation
Technique
|
Significant
Unobservable
Inputs
|
General Range
Of Significant
Unobservable
Input Values
|
|||||||||||||
Impaired loans
|
$ | 23,462 |
Appraised Value/
Discounted Cash Flows
Market Value of Note
|
Appraisals and/or sales of
comparable properties/
Independent quotes
|
0-25 | % | ||||||||||
Other real estate owned
|
9,174 |
Appraised Value/
Comparable Sales/
Other Estimates from
Independent Sources
|
Appraisals and/or sales of
comparable properties/
Independent quotes
|
0-40 | % | |||||||||||
Asets at fair value
|
$ | 32,636 |
Fair Value Measurements
|
||||||||||||||||||||
Quoted
|
||||||||||||||||||||
Prices in
|
||||||||||||||||||||
Active Markets
|
Significant
|
|||||||||||||||||||
|
for Identical
|
Other
|
Significant
|
|||||||||||||||||
|
Assets or
|
Observable
|
Unobservable
|
|||||||||||||||||
Carrying
|
Liabilities
|
Inputs
|
Inputs
|
|||||||||||||||||
(dollars in thousands)
|
Amount
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||||
June 30, 2013
|
||||||||||||||||||||
Financial Instruments - Assets
|
||||||||||||||||||||
Loans
|
$ | 120,088 | $ | 120,040 | -- | -- | $ | 120,040 | ||||||||||||
Financial Instruments – Liabilities
|
||||||||||||||||||||
Time deposits | $ | 113,745 | $ | 114,166 | $ | -- | $ | 114,166 | $ | -- | ||||||||||
Securities sold under agreements
|
||||||||||||||||||||
to repurchase | 5,449 | 5,449 | -- | 5,449 | -- | |||||||||||||||
Subordinated debentures
|
12,372 | 12,372 | -- | 12,372 | -- | |||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Financial Instruments - Assets
|
||||||||||||||||||||
Loans
|
$ | 123,414 | $ | 123,553 | -- | -- | $ | 123,553 | ||||||||||||
Financial Instruments – Liabilities
|
||||||||||||||||||||
Time deposits | $ | 117,167 | $ | 117,723 | $ | -- | $ | 117,723 | $ | -- | ||||||||||
Securities sold under agreements
|
||||||||||||||||||||
to repurchase
|
6,280 | 6,280 | -- | 6,280 | -- | |||||||||||||||
Subordinated debentures
|
12,372 | 12,372 | -- | 12,372 | -- |
June 30, 2013
|
December 31, 2012
|
|||||||||||||||
Available for sale:
|
Fair
Value
|
Percent of
Portfolio
|
Fair
Value
|
Percent of
Portfolio
|
||||||||||||
Investment Securities:
|
||||||||||||||||
Government Sponsored Enterprises
|
$ | 121,055 | 67.10 | % | $ | 123,679 | 73.09 | % | ||||||||
Trust Preferred Securities
|
4,247 | 2.35 | 4,335 | 2.56 | ||||||||||||
Total Investment Securities
|
125,302 | 69.45 | 128,014 | 75.65 | ||||||||||||
Mortgage-Backed Securities
|
55,106 | 30.55 | 41,200 | 24.35 | ||||||||||||
Total
|
$ | 180,408 | 100.00 | % | $ | 169,214 | 100.00 | % |
As of June 30, 2013
|
||||||||||||||||
Amortized
|
Gross Unrealized
|
Fair | ||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Investment Securities:
|
||||||||||||||||
Government Sponsored Enterprises
|
$ | 124,617 | $ | 77 | $ | (3,639 | ) | $ | 121,055 | |||||||
Trust Preferred Securities
|
5,825 | 5 | (1,583 | ) | 4,247 | |||||||||||
Total Investment Securities
|
130,442 | 82 | (5,222 | ) | 125,302 | |||||||||||
Mortgage-Backed Securities:
|
||||||||||||||||
Fannie Mae
|
28,336 | 37 | (1,534 | ) | 26,839 | |||||||||||
Ginnie Mae
|
15,585 | 11 | (246 | ) | 15,350 | |||||||||||
Freddie Mac
|
12,738 | 36 | (141 | ) | 12,633 | |||||||||||
Collateralized Mortgage Obligations
|
294 | -- | (10 | ) | 284 | |||||||||||
Total Mortgage-Backed Securities
|
56,953 | 84 | (1,931 | ) | 55,106 | |||||||||||
Total Available for Sale
|
$ | 187,395 | $ | 166 | $ | (7,153 | ) | $ | 180,408 |
As of December 31, 2012
|
||||||||||||||||
Amortized |
Gross Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value | |||||||||||||
Investment Securities:
|
||||||||||||||||
Government Sponsored Enterprises
|
$ | 123,381 | $ | 324 | $ | (26 | ) | $ | 123,679 | |||||||
Trust Preferred Securities
|
5,828 | -- | (1,493 | ) | 4,335 | |||||||||||
Total Investment Securities
|
129,209 | 324 | (1,519 | ) | 128,014 | |||||||||||
Mortgage-Backed Securities:
|
||||||||||||||||
Fannie Mae
|
11,950 | 72 | (20 | ) | 12,002 | |||||||||||
Ginnie Mae
|
16,726 | 101 | (72 | ) | 16,755 | |||||||||||
Freddie Mac
|
11,822 | 297 | (-- | ) | 12,119 | |||||||||||
Collateralized Mortgage Obligations
|
317 | 7 | (-- | ) | 324 | |||||||||||
Total Mortgage-Backed Securities
|
40,815 | 477 | (92 | ) | 41,200 | |||||||||||
Total Available for Sale
|
$ | 170,024 | $ | 801 | $ | (1,611 | ) | $ | 169,214 |
Available for Sale
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
Due in one year or less
|
$ | 4 | $ | 4 | ||||
Due after one year through five years
|
3 | 3 | ||||||
Due after five years through ten years
|
41,817 | 39,926 | ||||||
Due after ten years
|
145,571 | 140,475 | ||||||
Total Investment and Mortgage-Backed Securities
|
$ | 187,395 | $ | 180,408 |
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Available for Sale
|
||||||||||||||||||||||||
Government Sponsored Enterprises
|
$ | 118,675 | $ | 3,639 | $ | – | $ | – | $ | 118,675 | $ | 3,639 | ||||||||||||
Trust Preferred Securities
|
– | – | 3,081 | 1,583 | 3,081 | 1,583 | ||||||||||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities
|
42,646 | 1,898 | 1,802 | 33 | 44,448 | 1,931 | ||||||||||||||||||
Total
|
$ | 161,321 | $ | 5,537 | $ | 4,883 | $ | 1,616 | $ | 166,204 | $ | 7,153 |
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Available for Sale
|
||||||||||||||||||||||||
Government Sponsored Enterprises
|
$ | 19,337 | $ | 26 | $ | – | $ | – | $ | 19,337 | $ | 26 | ||||||||||||
Trust Preferred Securities
|
– | – | 4,335 | 1,493 | 4,335 | 1,493 | ||||||||||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities
|
8,665 | 79 | 2,149 | 13 | 10,814 | 92 | ||||||||||||||||||
Total
|
$ | 28,002 | $ | 105 | $ | 6,484 | $ | 1,506 | $ | 34,486 | $ | 1,611 |
|
●
|
Break in Yield – This is the level of deferrals/defaults the tranche could experience before the tranche would not receive all of its contractual cash flows (principal and interest) by maturity (not just a temporary interest shortfall but an actual loss in yield on the investment). In other words, a break in yield occurs when the magnitude of the deferrals/defaults has depleted the entire credit enhancement (excess interest and over-collateralization) beneath the given tranche.
|
|
●
|
Temporary Interest Shortfall – A temporary interest shortfall is caused by an amount of deferrals/defaults high enough such that there is insufficient cash flow available to pay current interest on the given tranche or by breaching the principal coverage test of the tranche immediately senior to the given tranche. Principal coverage tests are set up to protect the Senior and Mezzanine Notes from credit events, providing the most credit protection to the Class A-1 Senior Notes, then to the Class A-2 Senior Notes, then to the Class B notes and so on. Cash flow is diverted from the lowest tranches first then from the successively higher tranches as necessary.
|
Security
Name
|
Single/
Pooled
|
Class
Tranche
|
Amortized
Cost
|
Fair
Value
|
Unrealized
(Gain)Loss
|
Credit
Portion
|
Other
|
YTD
OTTI
Total
|
||||||||||||||||||||||
Alesco II
|
Pooled
|
B-1 | $ | 1,161 | $ | 1,166 | $ | (5 | ) | $ | -- | $ | -- | $ | -- | |||||||||||||||
MM Com III
|
Pooled
|
B | 511 | 417 | 94 | -- | -- | -- | ||||||||||||||||||||||
PreTSL IV
|
Pooled
|
Mezz
|
152 | 110 | 42 | -- | -- | -- | ||||||||||||||||||||||
Total
|
$ | 1,824 | $ | 1,693 | $ | 131 | $ | -- | $ | -- | $ | -- |
|
Lowest
Rating (1)
|
% of
Current
Performing
|
%
Deferrals/
Defaults (2)
|
High
|
Low
|
Discount
Margin (3)
|
|||||||||||||||||
Alesco II
|
C | 84.89 | % | 15.11 | % | 1.20 | % | 0.40 | % | 4.65 | % | ||||||||||||
MM Com III
|
CC
|
70.00 | % | 30.00 | % | 1.20 | % | 0.40 | % | 5.05 | % | ||||||||||||
PreTSL IV
|
CCC
|
72.93 | % | 27.07 | % | 1.50 | % | 0.75 | % | 2.25 | % |
|
(1)
|
Credit Ratings represent Moody’s and Fitch ratings (S&P does not rate this security).
|
|
(2)
|
The ratio represents the amount of specific deferrals/defaults that have occurred, plus those that are known or projected for the following quarters to the total amount of original collateral for a given security. Fewer deferrals/defaults produce a lower ratio.
|
|
(3)
|
Fair market value discount margin to LIBOR.
|
|
June 30, 2013
|
December 31, 2012
|
||||||
Nonaccrual loans
|
||||||||
Real estate
|
$ | 1,228 | $ | 970 | ||||
Commercial
|
7,795 | 9,569 | ||||||
Consumer
|
3,180 | 2,635 | ||||||
Total
|
12,203 | 13,174 | ||||||
Accruing troubled debt restructurings
|
676 | 4,187 | ||||||
Other real estate owned, net
|
5,182 | 9,174 | ||||||
Total nonperforming assets
|
$ | 18,061 | $ | 26,535 | ||||
Percentage of nonperforming loans to loans
|
||||||||
receivable, net
|
10.72 | % | 14.07 | % | ||||
Percentage of nonperforming assets to total assets
|
5.25 | % | 7.58 | % | ||||
Allowance for loan losses to total
|
||||||||
loans outstanding
|
3.54 | % | 3.42 | % | ||||
Allowance for loan losses as a percent of
|
||||||||
nonperforming loans
|
33.48 | % | 25.15 | % | ||||
Allowance for loan losses
|
$ | 4,312 | $ | 4,367 |
June 30, | December 31, | |||||||
2013
|
2012
|
|||||||
Balance at beginning of period
|
$ | 9,174 | $ | 8,398 | ||||
Foreclosures added during the period
|
1,117 | 2,423 | ||||||
Bank assets transferred to OREO
|
-- | 1,356 | ||||||
Sales of foreclosed property
|
(4,359 | ) | (2,190 | ) | ||||
Provision charged as a write-down
|
(750 | ) | (813 | ) | ||||
Balance at the end of period
|
$ | 5,182 | $ | 9,174 |
June 30, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Rate
|
Balance
|
%
|
Rate
|
Balance
|
%
|
|||||||||||||||||||
Account Type
|
||||||||||||||||||||||||
NOW accounts:
|
||||||||||||||||||||||||
Commercial noninterest-bearing
|
-- | $ | 41,668 | 15.01 | % | -- | $ | 38,346 | 13.82 | % | ||||||||||||||
Noncommercial
|
0.27 | % | 58,974 | 21.24 | % | 0.32 | % | 63,433 | 22.86 | % | ||||||||||||||
Money market checking accounts
|
0.19 | % | 29,829 | 10.75 | % | 0.27 | % | 27,842 | 10.03 | % | ||||||||||||||
Regular savings
|
0.28 | % | 33,397 | 12.03 | % | 0.33 | % | 30,693 | 11.06 | % | ||||||||||||||
Total demand and savings deposits
|
0.19 | % | 163,868 | 59.03 | % | 0.23 | % | 160,314 | 57.77 | % | ||||||||||||||
Time deposits:
|
||||||||||||||||||||||||
Up to 1.00%
|
84,388 | 30.40 | % | 81,649 | 29.43 | % | ||||||||||||||||||
1.01 %-2.00% | 29,289 | 10.55 | % | 35,322 | 12.73 | % | ||||||||||||||||||
2.01 %- 3.00% | 68 | 0.02 | % | 150 | 0.05 | % | ||||||||||||||||||
3.01 %- 4.00% | -- | -- | % | 46 | 0.02 | % | ||||||||||||||||||
Total time deposits
|
0.59 | % | 113,745 | 40.97 | % | 0.63 | % | 117,167 | 42.23 | % | ||||||||||||||
Total deposit accounts
|
0.36 | % | $ | 277,613 | 100.00 | % | 0.40 | % | $ | 277,481 | 100.00 | % |
June 30, 2013
|
December 31, 2012
|
|||||||||||||||
Balance
|
Wtd Avg Rate
|
Balance
|
Wtd Avg Rate
|
|||||||||||||
Contractual Maturity:
|
||||||||||||||||
After three but within five years – adjustable rate
|
24,000 | 4.10 | % | 24,000 | 4.10 | % | ||||||||||
Greater than five years - adjustable rate
|
13,500 | 3.52 | % | 13,500 | 3.52 | % | ||||||||||
Total advances
|
$ | 37,500 | 3.89 | % | $ | 37,500 | 3.89 | % |
Minimum Capital Levels
|
||||||||||||||||||||||||
Actual
|
Regulatory Minimum
|
From Consent Order(1)
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Leverage ratio
|
||||||||||||||||||||||||
Corporation
|
$ | 13,814 | 3.95 | % | $ | 13,984 | 4.00 | % | $ | n/a | n/a | % | ||||||||||||
Bank
|
23,163 | 6.63 | 13,970 | 4.00 | 27,940 | 8.00 | ||||||||||||||||||
Tier 1 capital ratio
|
||||||||||||||||||||||||
Corporation
|
13,814 | 8.01 | 6,894 | 4.00 | n/a | n/a | ||||||||||||||||||
Bank
|
23,163 | 13.47 | 6,880 | 4.00 | n/a | n/a | ||||||||||||||||||
Total risk-based capital ratio
|
||||||||||||||||||||||||
Corporation
|
24,305 | 14.10 | 13,789 | 8.00 | n/a | n/a | ||||||||||||||||||
Bank
|
25,340 | 14.73 | 13,760 | 8.00 | 20,640 | 12.00 |
•
|
Revised its loan policy, and created a commercial real estate concentration management program. The Bank also established a new loan review program to ensure the timely and independent identification of problem loans and modified its existing program for the maintenance of an adequate allowance for loan and lease losses;
|
•
|
Took immediate and continuing action to protect the Bank’s interest in certain assets identified by the OCC and develop a criticized assets report covering the entire credit relationship with respect to such assets;
|
•
|
Implemented and adhered to a program for the maintenance of an adequate allowance for loan and lease losses that is consistent with OCC requirements; and
|
•
|
Ensured that the Bank has competent management in place on a full-time basis to carry out the Board’s policies and operate the Bank in a safe and sound manner.
|
|
●
|
required the Corporation to fully utilize its financial and managerial resources to serve as a source of strength to the Bank;
|
|
●
|
prohibited the Company from paying any dividends and taking any dividends representing a reduction in capital from the Bank, in each case without the prior written approval of the Federal Reserve;
|
|
●
|
prohibited the Corporation from making any distributions on subordinated debentures or trust preferred securities without the prior written approval of the Federal Reserve; and
|
|
●
|
prohibited the Corporation from incurring, increasing or guaranteeing any debt or redeeming any shares of its common stock, in each case without the prior written approval of the Federal Reserve.
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost(2)
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Loans (1)
|
$ | 122,730 | $ | 1,526 | 4.97 | % | $ | 145,523 | $ | 1,805 | 4.96 | % | ||||||||||||
Mortgage-backed securities
|
52,444 | 259 | 1.98 | % | 64,359 | 337 | 2.09 | % | ||||||||||||||||
Investment securities
|
133,729 | 721 | 2.16 | % | 109,120 | 646 | 2.37 | % | ||||||||||||||||
Deposits and fed funds sold
|
13,305 | 3 | 0.07 | % | 18,872 | 5 | 0.10 | % | ||||||||||||||||
Total interest earning assets
|
322,208 | 2,509 | 3.11 | % | 337,874 | 2,793 | 3.31 | % | ||||||||||||||||
Noninterest earning assets
|
28,326 | 33,916 | ||||||||||||||||||||||
Total assets
|
$ | 350,534 | $ | 371,790 | ||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ | 238,549 | 257 | 0.43 | % | $ | 261,078 | 340 | 0.52 | % | ||||||||||||||
Floating rate junior subordinated
deferrable interest debentures
|
12,372 | 63 | 2.05 | % | 12,372 | 70 | 2.26 | % | ||||||||||||||||
FHLB advances and other borrowings
|
42,555 | 370 | 3.48 | % | 60,537 | 569 | 3.76 | % | ||||||||||||||||
Total interest bearing liabilities
|
293,476 | 690 | 0.94 | % | 333,987 | 979 | 1.17 | % | ||||||||||||||||
Noninterest bearing sources:
|
||||||||||||||||||||||||
Noninterest bearing deposits
|
41,422 | 22,084 | ||||||||||||||||||||||
Noninterest bearing liabilities
|
4,502 | 3,916 | ||||||||||||||||||||||
Total liabilities
|
339,400 | 359,987 | ||||||||||||||||||||||
Shareholders’ equity
|
11,134 | 11,803 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 350,534 | $ | 371,790 | ||||||||||||||||||||
Net interest income
|
$ | 1,819 | $ | 1,814 | ||||||||||||||||||||
Interest rate spread (2)
|
2.17 | % | 2.14 | % | ||||||||||||||||||||
Impact of noninterest bearing (3) deposits
|
0.06 | % | 0.08 | % | ||||||||||||||||||||
Net interest margin (4)
|
2.23 | % | 2.22 | % |
|
Commercial
|
Consumer
|
Residential
|
Total
|
||||||||||||
June 30, 2013
|
||||||||||||||||
Charge-offs
|
$ | 272 | $ | 298 | $ | 16 | $ | 586 | ||||||||
Recoveries
|
(32 | ) | (21 | ) | (5 | ) | (58 | ) | ||||||||
Net Charge-offs
|
$ | 240 | $ | 277 | $ | 11 | $ | 528 | ||||||||
|
Commercial
|
Consumer
|
Residential
|
Total
|
||||||||||||
June 30, 2012
|
||||||||||||||||
Charge-offs
|
$ | 256 | $ | 188 | $ | 6 | $ | 450 | ||||||||
Recoveries
|
(4 | ) | (2 | ) | (1 | ) | (7 | ) | ||||||||
Net Charge-offs
|
$ | 252 | $ | 186 | $ | 5 | $ | 443 |
Six Months Ended June 30,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost(2)
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans (1)
|
$ | 124,247 | $ | 3,042 | 4.90 | % | $ | 150,284 | $ | 3,781 | 5.03 | % | ||||||||||||
Mortgage-backed securities
|
48,651 | 462 | 1.90 | % | 66,893 | 766 | 2.29 | % | ||||||||||||||||
Investment securities
|
130,617 | 1,375 | 2.11 | % | 101,726 | 1,244 | 2.45 | % | ||||||||||||||||
Deposits and fed funds sold
|
19,179 | 7 | 0.07 | % | 20,867 | 8 | 0.07 | % | ||||||||||||||||
Total interest-earning assets
|
322,694 | 4,886 | 3.03 | % | 339,770 | 5,799 | 3.41 | % | ||||||||||||||||
Non-interest-earning assets
|
28,246 | 34,280 | ||||||||||||||||||||||
Total assets
|
$ | 350,940 | $ | 374,050 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ | 239,898 | 535 | 0.45 | % | $ | 262,195 | 718 | 0.55 | % | ||||||||||||||
Floating rate junior subordinated
deferrable interest debentures
|
12,372 | 127 | 2.04 | % | 12,372 | 141 | 2.27 | % | ||||||||||||||||
FHLB advances and other borrowings
|
42,543 | 735 | 3.46 | % | 61,997 | 1,175 | 3.79 | % | ||||||||||||||||
Total interest-bearing liabilities
|
294,813 | 1,397 | 0.95 | % | 336,564 | 2,034 | 1.21 | % | ||||||||||||||||
Non-interest-bearing sources:
|
||||||||||||||||||||||||
Non-interest-bearing deposits
|
40,208 | 21,488 | ||||||||||||||||||||||
Non-interest-bearing liabilities
|
4,290 | 3,842 | ||||||||||||||||||||||
Total liabilities
|
339,311 | 361,894 | ||||||||||||||||||||||
Shareholders’ equity
|
11,629 | 12,156 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 350,940 | $ | 374,050 | ||||||||||||||||||||
Net interest income
|
$ | 3,489 | $ | 3,765 | ||||||||||||||||||||
Interest rate spread (2)
|
2.08 | % | 2.20 | % | ||||||||||||||||||||
Impact of non-interest-bearing (3) deposits
|
0.07 | 0.08 | ||||||||||||||||||||||
Net interest margin (4)
|
2.15 | % | 2.28 | % |
Legal Proceedings
|
Risk Factors
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Defaults upon Senior Securities
|
31(a)
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
||
31(b)
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
||
32(a)
|
Chief Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
32(b)
|
Chief Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
Interactive Data File*
|
||
The following materials from Provident Community Bancshares, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income (Loss), (iii) the Consolidated Statement of Comprehensive Income (Loss), (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders’ Equity and (vi) related notes.
|
Date: August 14, 2013
|
By:
|
/s/ Dwight V. Neese | |
Dwight V. Neese, President and | |||
Chief Executive Officer |
Date: August 14, 2013
|
By:
|
/s/ Richard H. Flake | |
Richard H. Flake, Executive Vice President | |||
and Chief Financial Officer |
1.
|
I have reviewed this Form 10-Q of Provident Community Bancshares, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
|
|
|
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted account 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.
|
Date: August 14, 2013
|
/s/ Dwight V. Neese
|
||
Dwight V. Neese
|
|||
President and Chief Executive Officer
|
1.
|
I have reviewed this Form 10-Q of Provident Community Bancshares, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
|
|
|
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted account 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.
|
Date: August 14, 2013
|
/s/ Richard H. Flake
|
||
Richard H. Flake
|
|||
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.
|
/s/ Dwight V. Neese
|
|
Dwight V. Neese
|
|
President and Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.
|
/s/ Richard H. Flake
|
|
Richard H. Flake
|
|
Executive Vice President and Chief Financial Officer
|
Loans, net (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable | Loans
receivable consisted of the following (dollars in
thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information about Impaired Loans | Information
about impaired loans for the periods ended June 30, 2013 and
December 31, 2012 is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans |
Impaired Loans
For the Periods Ended June 30, 2013 and December 31,
2012
(in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable on Non - Accrual Basis |
Loans Receivable on Nonaccrual Status
As of June 30, 2013 and December 31, 2012
(in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans Receivable |
Allowance for Loan Losses and Recorded Investment in Loans
Receivable
(in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category |
Consumer Credit Exposure (1)
Credit Risk Profile Based on Payment Activity
(1)
Credit quality indicators are reviewed and updated as applicable on
an ongoing basis in accordance with credit policies.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Loan Trends for Corporation's Loans Receivable | The
following are past due loans for the Corporation’s loans
receivable for the periods ended June 30, 2013 and December 31,
2012 (in thousands).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Modifications for Corporation's Loans Receivable | The
following are loan modifications for the Corporation’s loans
receivable for the three and six month periods ended June 30,
2013.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Portfolio Segment
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category |
Consumer Credit Exposure (1)
Credit Risk Profile by Internally Assigned Grade
(1)
Credit quality indicators are reviewed and updated as applicable on
an ongoing basis in accordance with credit policies.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Portfolio Segment
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category |
Commercial Credit Exposure (1)
Credit Risk Profile by Creditworthiness Category
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. |
Assets Pledged
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Assets Pledged | 3. Assets
Pledged
Approximately $58.9 million and $62.7 million of debt securities at June 30, 2013 and December 31, 2012, respectively, were pledged by the Bank as collateral to secure deposits of the State of South Carolina, and Union, Laurens and York counties along with additional borrowings and repurchase agreements. The Bank pledges as collateral for Federal Home Loan Bank (the “FHLB”) advances commercial and residential real estate mortgage loans under a collateral agreement with the FHLB whereby the Bank maintains, free of other encumbrances, qualifying mortgages (as defined) with unpaid principal balances equal to, when discounted at 75% of the unpaid principal balances, 100% of total advances. As part of the total assets pledged, the Bank will also pledge securities to cover additional advances from the FHLB that exceed the qualifying mortgages balance along with security repurchase lines with various brokerage houses. |
Contingencies and loan commitments (Tables)
|
6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||
Credit Exposure |
|
Reconciliation of Beginning and Ending Balances for Assets Measured at Fair Value on Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
|
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 1,820 | $ 1,547 |
Transfers into Level 3 | ||
Total gains/ (losses) included in: | ||
Net loss | ||
Other comprehensive income | (123) | 150 |
Purchases, sales, issuances and settlements, net | (4) | (4) |
Ending balance | $ 1,693 | $ 1,693 |
Allowance for Loan Losses and Recorded Investment in Loans Receivable (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | $ 4,367 | $ 4,549 | $ 4,549 | ||
Charge-offs | (651) | (1,041) | |||
Recoveries | 95 | 155 | |||
Provisions | 500 | 195 | 500 | 630 | 704 |
Ending balance | 4,312 | 4,312 | 4,367 | ||
Individually evaluated for impairment | 20,699 | 20,699 | 25,847 | ||
Allowance for loan losses | 2,135 | 2,135 | 2,385 | ||
Collectively evaluated for impairment | 102,518 | 102,518 | 101,949 | ||
Allowance for loan losses | 2,177 | 2,177 | 1,982 | ||
Ending balance | 123,217 | 123,217 | 127,796 | ||
Total allowance for loan losses | 4,312 | 4,312 | 4,367 | ||
Commercial
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 1,040 | 1,887 | 1,887 | ||
Charge-offs | (118) | ||||
Recoveries | 3 | 52 | |||
Provisions | (781) | ||||
Ending balance | 1,043 | 1,043 | 1,040 | ||
Individually evaluated for impairment | 2,097 | 2,097 | 1,869 | ||
Allowance for loan losses | 47 | 47 | 49 | ||
Collectively evaluated for impairment | 7,023 | 7,023 | 7,155 | ||
Allowance for loan losses | 996 | 996 | 991 | ||
Ending balance | 9,120 | 9,120 | 9,024 | ||
Total allowance for loan losses | 1,043 | 1,043 | 1,040 | ||
Commercial Real Estate
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 1,675 | 1,920 | 1,920 | ||
Charge-offs | (299) | (339) | |||
Recoveries | 65 | 94 | |||
Provisions | 400 | ||||
Ending balance | 1,841 | 1,841 | 1,675 | ||
Individually evaluated for impairment | 11,839 | 11,839 | 16,661 | ||
Allowance for loan losses | 1,273 | 1,273 | 1,260 | ||
Collectively evaluated for impairment | 62,544 | 62,544 | 58,549 | ||
Allowance for loan losses | 568 | 568 | 415 | ||
Ending balance | 74,383 | 74,383 | 75,210 | ||
Total allowance for loan losses | 1,841 | 1,841 | 1,675 | ||
Consumer
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 1,301 | 484 | 484 | ||
Charge-offs | (337) | (576) | |||
Recoveries | 22 | 5 | |||
Provisions | 204 | 1,388 | |||
Ending balance | 1,190 | 1,190 | 1,301 | ||
Individually evaluated for impairment | 5,191 | 5,191 | 5,586 | ||
Allowance for loan losses | 815 | 815 | 962 | ||
Collectively evaluated for impairment | 25,221 | 25,221 | 28,212 | ||
Allowance for loan losses | 375 | 375 | 339 | ||
Ending balance | 30,412 | 30,412 | 33,798 | ||
Total allowance for loan losses | 1,190 | 1,190 | 1,301 | ||
Residential Real Estate
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 351 | 258 | 258 | ||
Charge-offs | (15) | (8) | |||
Recoveries | 5 | 4 | |||
Provisions | (104) | 97 | |||
Ending balance | 238 | 238 | 351 | ||
Individually evaluated for impairment | 1,572 | 1,572 | 1,731 | ||
Allowance for loan losses | 114 | ||||
Collectively evaluated for impairment | 7,812 | 7,812 | 8,033 | ||
Allowance for loan losses | 238 | 238 | 237 | ||
Ending balance | 9,384 | 9,384 | 9,764 | ||
Total allowance for loan losses | $ 238 | $ 238 | $ 351 |
Contingencies and Loan Commitments - Additional Information (Detail)
|
Jun. 30, 2013
|
---|---|
Commitments Disclosure [Line Items] | |
Loan commitments fixed and adjusting rate, minimum | 4.50% |
Loan commitments fixed and adjusting rate, maximum | 6.50% |
Fair Value Measurements (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Financial Instruments - Assets, Carrying Amount | ||
Loans | $ 120,088 | $ 123,414 |
Financial Instruments - Liabilities, Carrying Amount | ||
Time deposits | 113,745 | 117,167 |
Securities sold under agreements to repurchase | 5,449 | 6,280 |
Subordinated debentures | 12,372 | 12,372 |
Financial Instruments - Assets, Fair Value | ||
Loans | 120,040 | 123,553 |
Financial Instruments - Liabilities, Fair Value | ||
Time deposits | 114,166 | 117,723 |
Securities sold under agreements to repurchase | 5,449 | 6,280 |
Subordinated debentures | 12,372 | 12,372 |
Level 2
|
||
Financial Instruments - Liabilities, Fair Value | ||
Time deposits | 114,166 | 117,723 |
Securities sold under agreements to repurchase | 5,449 | 6,280 |
Subordinated debentures | 12,372 | 12,372 |
Level 3
|
||
Financial Instruments - Assets, Fair Value | ||
Loans | $ 120,040 | $ 123,553 |
Past Due Loan Trends for Corporation's Loans Receivable (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 -59 Days Past Due | $ 1,947 | $ 3,736 |
60 - 89 Days Past Due | 2,010 | 1,429 |
Greater Than 90 Days | 6,994 | 8,879 |
Total Past Due | 10,951 | 14,044 |
Current | 112,348 | 113,752 |
Total loans | 123,299 | 127,796 |
Commercial Portfolio Segment | Commercial Non Real Estate
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 -59 Days Past Due | 75 | 146 |
60 - 89 Days Past Due | 64 | 110 |
Greater Than 90 Days | 854 | 646 |
Total Past Due | 993 | 902 |
Current | 8,127 | 8,122 |
Total loans | 9,120 | 9,024 |
Commercial Portfolio Segment | Commercial Real Estate
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 -59 Days Past Due | 931 | 2,525 |
60 - 89 Days Past Due | 1,459 | 482 |
Greater Than 90 Days | 4,536 | 6,047 |
Total Past Due | 6,926 | 9,054 |
Current | 67,457 | 66,156 |
Total loans | 74,383 | 75,210 |
Consumer Portfolio Segment | Other Consumer
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 -59 Days Past Due | 635 | 638 |
60 - 89 Days Past Due | 322 | 419 |
Greater Than 90 Days | 1,161 | 1,045 |
Total Past Due | 2,118 | 2,102 |
Current | 14,458 | 16,861 |
Total loans | 16,576 | 18,963 |
Consumer Portfolio Segment | Automobiles
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 -59 Days Past Due | 2 | 11 |
60 - 89 Days Past Due | 3 | 5 |
Greater Than 90 Days | 2 | 3 |
Total Past Due | 7 | 19 |
Current | 784 | 753 |
Total loans | 791 | 772 |
Consumer Portfolio Segment | Consumer Home Equity
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 -59 Days Past Due | 148 | 157 |
60 - 89 Days Past Due | 7 | |
Greater Than 90 Days | 163 | 168 |
Total Past Due | 311 | 332 |
Current | 12,734 | 13,731 |
Total loans | 13,045 | 14,063 |
Residential Real Estate | Residential 1-4 family
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 -59 Days Past Due | 156 | 259 |
60 - 89 Days Past Due | 162 | 406 |
Greater Than 90 Days | 278 | 970 |
Total Past Due | 596 | 1,635 |
Current | 8,788 | 8,129 |
Total loans | $ 9,384 | $ 9,764 |
Loans Receivable on Non-accrual Status (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable on Non-accrual Status | $ 12,203 | $ 13,174 |
Commercial Real Estate
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable on Non-accrual Status | 6,878 | 8,734 |
Commercial Non Real Estate
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable on Non-accrual Status | 917 | 835 |
Other Consumer
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable on Non-accrual Status | 2,733 | 2,287 |
Automobiles
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable on Non-accrual Status | 7 | 19 |
Consumer Home Equity
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable on Non-accrual Status | 440 | 329 |
Residential 1-4 family
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable on Non-accrual Status | $ 1,228 | $ 970 |
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
OPERATING ACTIVITIES: | |||
Net (loss) income | $ (1,676) | $ 59 | |
Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities: | |||
Provision for loan losses | 500 | 630 | 704 |
Amortization of securities | 569 | 543 | |
Depreciation expense | 164 | 182 | |
Recognition of deferred income, net of costs | (15) | (127) | |
Deferral of fee income, net of costs | 55 | 129 | |
Gain on investment transactions | (24) | (525) | |
Loss (gain) on OREO sales | 258 | (97) | |
OREO impairment | 750 | 119 | |
Changes in operating assets and liabilities: | |||
Decrease in accrued interest receivable | 16 | 220 | |
Increase in cash surrender value of life insurance | (125) | (143) | |
(Increase) decrease in other assets | (2,314) | 126 | |
Increase in other liabilities | 377 | 208 | |
Increase in accrued interest payable | 118 | 108 | |
Net cash (used for) provided by operating activities | (1,347) | 1,432 | |
INVESTING ACTIVITIES: | |||
Purchase of AFS securities | (91,000) | (107,426) | |
Proceeds from sales of AFS securities | 1,774 | 24,448 | |
Maturities of AFS securities | 66,550 | 86,954 | |
Principal repayment on mortgage-backed securities AFS | 6,923 | 8,598 | |
Net decrease in loans | 1,669 | 12,840 | |
Redemption of FHLB/FRB stock | 181 | 208 | |
Proceeds from sales of OREO, net of costs and improvements | 4,101 | 826 | |
Purchase of office properties and equipment | (236) | (64) | |
Net cash (used) provided by investing activities | (10,038) | 26,384 | |
FINANCING ACTIVITIES: | |||
Decrease in other borrowings | (831) | (4,429) | |
Increase (decrease) in deposit accounts | 132 | (1,974) | |
Net cash used for financing activities | (699) | (6,403) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (12,084) | 21,413 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 29,059 | 23,893 | 23,893 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 16,975 | 45,306 | 29,059 |
Cash paid for: | |||
Income taxes | |||
Interest | 1,279 | 1,926 | |
Non-cash transactions: | |||
Loans foreclosed | 1,117 | 2,090 | |
Unrealized gain (loss) on securities available for sale, net of income tax | $ (4,014) | $ 444 |
Presentation of Consolidated Financial Statements
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Presentation of Consolidated Financial Statements | 1. Presentation
of Consolidated Financial Statements
The
accompanying unaudited consolidated financial statements of
Provident Community Bancshares, Inc. (the
“Corporation”) and Provident Community Bank, N.A. (the
“Bank”) were prepared in accordance with instructions
for Form 10-Q and, therefore, do not include all disclosures
necessary for a complete presentation of the consolidated financial
condition, results of operations, and cash flows in conformity with
accounting principles generally accepted in the United States of
America. However, all adjustments which are, in the opinion of
management, necessary for the fair presentation of the interim
consolidated financial statements have been included. All such
adjustments are of a normal and recurring nature. The results of
operations for the three and six months ended June 30, 2013 are not
necessarily indicative of the results which may be expected for the
entire calendar year or for any other period. This quarterly report
should be read in conjunction with the Corporation’s annual
report on Form 10-K for the year ended December 31, 2012. Certain
amounts in the prior year’s financial statements have been
reclassified to conform to current year
classifications.
Recently Issued Accounting Standards
The
following is a summary of recent authoritative pronouncements that
may affect accounting, reporting, and disclosure of financial
information by the Corporation.
The Comprehensive Income topic of the Accounting Standards Codification (“ASC”) was amended in June 2011. The amendment eliminated the option to present other comprehensive income as a part of the statement of changes in stockholders’ equity and required consecutive presentation of the statement of net income and other comprehensive income. The amendments were applicable to the Corporation January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements while the Financial Accounting Standards Board (“FASB”) redeliberated the presentation requirements for the reclassification adjustments. In February 2013, the FASB further amended the Comprehensive Income topic clarifying the conclusions from such redeliberations. Specifically, the amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments do require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendments were effective for the Corporation on a prospective basis for reporting periods beginning after December 15, 2012. These amendments did not have a material effect on the Corporation’s financial statements. In
February, 2013, the FASB amended the Liabilities topic to address
obligations resulting from joint and several liability
arrangements. The guidance addresses recognition of
financial commitments arising from joint and several liability
arrangements. Specifically, the amendments require
recognition of financial commitments arising from loans, contracts,
and legal rulings if the Corporation can be held liable for the
entire claim. The amendments will be effective for the
Corporation for reporting periods beginning after December 15,
2013. The Corporation does not expect these amendments
to have a material effect on its financial statements.
On
April 22, 2013, the FASB issued guidance addressing application of
the liquidation basis of accounting. The guidance is
intended to clarify when an entity should apply the liquidation
basis of accounting. In addition, the guidance provides
principles for the recognition and measurement of assets and
liabilities and requirements for financial statements prepared
using the liquidation basis of accounting. The
amendments will be effective for entities that determine
liquidation is imminent during annual reporting periods beginning
after December 15, 2013, and interim reporting periods therein and
those requirements should be applied prospectively from the day
that liquidation becomes imminent. Early adoption is
permitted. The Corporation does not expect these
amendments to have any effect on its financial
statements.
Other
accounting standards that have been issued or proposed by the
Financial Accounting Standards Board or other standards-setting
bodies are not expected to have a material impact on the
Corporation’s financial position, results of operations or
cash flows.
|
Loans, net
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | 4.
Loans,
net
Loans
receivable consisted of the following (dollars in
thousands):
Information
about impaired loans for the periods ended June 30, 2013 and
December 31, 2012 is as follows (in thousands):
Impaired Loans
For the Periods Ended June 30, 2013 and December 31,
2012
(in thousands)
Loans Receivable on Nonaccrual Status
As of June 30, 2013 and December 31, 2012
(in thousands)
Allowance for Loan Losses and Recorded Investment in Loans
Receivable
(in thousands)
Credit Quality Indicators
As of June 30, 2013 and December 31, 2012
(in thousands)
Credit
Quality Indicators: The Corporation regularly monitors the credit
quality of its loan portfolio. Credit quality refers to the current
and expected ability of borrowers to repay their obligations
according to the contractual terms of such loans. Credit quality is
evaluated through assignment of individual loan grades, as well as
past-due and performing status analysis. Credit quality indicators
allow the Corporation to assess the inherent loss on certain
individual and pools of loans.
Commercial Credit Exposure (1)
Credit Risk Profile by Creditworthiness Category
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. The
Corporation uses an internal risk rating system to classify and
monitor the credit quality of loans. Loan risk ratings are based on
a graduated scale representing increasing likelihood of loss.
Primary responsibility for the assignment of risk ratings of loans
is with the individual loan officer assigned to each loan, subject
to verification by the Credit Administration department. Risk
ratings are also reviewed periodically by an independent third
party loan review firm that reports directly to the Board of
Directors.
Consumer Credit Exposure (1)
Credit Risk Profile by Internally Assigned Grade
(1)
Credit quality indicators are reviewed and updated as applicable on
an ongoing basis in accordance with credit policies.
Consumer Credit Exposure (1)
Credit Risk Profile Based on Payment Activity
(1)
Credit quality indicators are reviewed and updated as applicable on
an ongoing basis in accordance with credit policies.
Loans
graded one through five are considered “pass”
credits. As of June 30, 2013, approximately 80% of the
loan portfolio was considered pass credits. For loans to
qualify for these grades, they must be performing relatively close
to expectations, with no significant departures from the intended
source and timing of repayment.
Loans
with a credit grade of six are not considered classified; however
they are categorized as a special mention or watch list credit.
This classification is utilized by us when we have an initial
concern about the financial health of a borrower. These loans are
designated as such in order to be monitored more closely than other
credits in our portfolio. We then gather current financial
information about the borrower and evaluate our current risk in the
credit. We will then either reclassify the loan as
“substandard” or back to its original risk rating after
a review of the information. There are times when we may leave the
loan on the watch list, if, in management’s opinion, there
are risks that cannot be fully evaluated without the passage of
time, and we determine to review the loan on a more regular basis.
Loans on the watch list are not considered problem loans until they
are determined by management to be classified as substandard. As of
June 30, 2013, we had loans totaling $6.3 million rated as Special
Mention.
Loans
graded seven or greater are considered classified credits. Loans
classified as substandard are inadequately protected by the current
sound worth and paying capacity of the borrower or of the
collateral pledged. The loan has well-defined weaknesses that
jeopardize the liquidation value and has the distinct possibility
that the Corporation will sustain some loss if the deficiencies are
not corrected. Loans classified as doubtful have the weaknesses of
Substandard but have additional factors that make collection or
liquidation in full highly questionable and improbable. At June 30,
2013, classified loans totaled $17.9 million, with all but one loan
being collateralized by real estate. This compares to classified
loans of $19.1 million at December 31, 2012. Classified credits are
evaluated for impairment on a quarterly basis.
The
following are past due loans for the Corporation’s loans
receivable for the periods ended June 30, 2013 and December 31,
2012 (in thousands).
Troubled Debt Restructurings
As
a result of adopting the amendments in ASU 2011-02, the Corporation
reassessed all restructurings that occurred on or after the
beginning of the fiscal year of adoption (January 1, 2011) to
determine whether they were considered troubled debt restructurings
(TDRs) under the amended guidance. The Corporation identified as
TDRs certain loans for which the allowance for loan losses had
previously been measured under a general allowance methodology.
Upon identifying those loans as TDRs, the Corporation identified
them as impaired under the guidance in ASC 310-10-35. The
amendments in ASU 2011-02 require prospective application of the
impairment measurement guidance in ASC 310-10-35 for those loans
newly identified as impaired. At June 30, 2013, the recorded
investment in loans for which the allowance was previously measured
under a general allowance methodology and are now impaired under
ASC 310-10-35 was $3.9 million, and the allowance for loan losses
associated with those loans, on the basis of a current evaluation
of loss was $238,000. The following are loan modifications for the
Corporation’s loans receivable for the three and six month
periods ended June 30, 2013.
During
the six months ended June 30, 2013, the Corporation modified 6
loans that were considered to be troubled debt restructurings. We
extended the terms for 6 of these loans and the interest rate was
lowered for 2 of these loans. During the six months ended June 30,
2013, the Corporation had 2 loans default that had previously been
restructured. A default occurs when a loan does not perform as
agreed under the new terms to the point it becomes 90 days or more
past due.
|
Loss Per Common Share
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Loss Per Common Share | 2. Income
(Loss) Per Common Share
Basic income (loss) per common share amounts for the three and six months ended June 30, 2013 and 2012 were computed based on the weighted average number of common shares outstanding during the period. Diluted income (loss) per share adjusts for the dilutive effect of outstanding common stock options and warrants during the periods utilizing the treasury stock method. There were no common stock equivalents included in the diluted loss per share calculation for the three and six months ended June 30, 2013 and 2012 as all outstanding options and warrants had a higher average exercise price than the average market price and were therefore anti-dilutive. Anti-dilutive common stock equivalents that were excluded in the diluted loss per common share calculation for the three and six months ended June 30, 2013 and 2012 were 235,380. |
Preferred Stock - Additional Information (Detail) (USD $)
|
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 13, 2009
|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Class of Stock [Line Items] | |||
Preferred stock issued | 9,266 | 9,266 | |
Preferred Stock, liquidation preference per share | $ 1,000 | ||
Exercise price of warrant | 7.77 | ||
Proceed from issuance of preferred stock and warrant | $ 9,300,000 | ||
Increase in Additional paid-in-capital due to allotment to warrants | 25,000 | ||
Period in which warrant to be exercised | 10 years | ||
Amortization period for amount allocated to warrant | 5 years | ||
Preferred Stock, Dividend Payment Terms | Under the terms of the TARP Preferred Stock, the Corporation is required to pay on a quarterly basis a dividend rate of 5% per year for the first five years, after which the dividend rate automatically increases to 9% per year. Dividend payments may be deferred, but the dividend is cumulative and failure to pay dividends for six dividend periods may trigger board appointment rights for the holder of the TARP Preferred Stock. | ||
Total deferred dividends | $ 1,200,000 | ||
First five years
|
|||
Class of Stock [Line Items] | |||
Dividend Rate | 5.00% | ||
After five years
|
|||
Class of Stock [Line Items] | |||
Dividend Rate | 9.00% | ||
Series A Preferred Stock
|
|||
Class of Stock [Line Items] | |||
Preferred stock issued | 9,266 | ||
Maximum
|
|||
Class of Stock [Line Items] | |||
Common stock purchase warrant | 178,880 |
Credit Risk Profile by Internally Assigned Grade (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
||||
---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||||||
Residential | $ 9,384 | [1] | $ 9,764 | [1] | ||
Consumer | 30,412 | [1] | 33,798 | [1] | ||
Credit Risk Profile by Internally Assigned Grade | Pass Credit
|
||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Residential | 7,619 | [1] | 7,905 | [1] | ||
Consumer | 25,470 | [1] | 27,976 | [1] | ||
Credit Risk Profile by Internally Assigned Grade | Grade 6 Special Mention
|
||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Residential | 383 | [1] | 732 | [1] | ||
Consumer | 791 | [1] | 1,366 | [1] | ||
Credit Risk Profile by Internally Assigned Grade | Grade 7 Substandard
|
||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Residential | 1,382 | [1] | 1,127 | [1] | ||
Consumer | $ 4,151 | [1] | $ 4,456 | [1] | ||
|
Loan Modifications for Corporation's Loans Receivable (Detail) (Troubled Debt Restructuring, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2013
Contract
|
Jun. 30, 2013
Contract
|
|
Added during current period
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of New Contracts | 5 | 6 |
Pre Modification Outstanding Recorded Investment | $ 636 | $ 721 |
Post Modification Outstanding Recorded Investment | 636 | 716 |
Added during current period | Commercial Real Estate
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of New Contracts | 2 | 2 |
Pre Modification Outstanding Recorded Investment | 326 | 326 |
Post Modification Outstanding Recorded Investment | 326 | 326 |
Added during current period | Other Consumer
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of New Contracts | 2 | 3 |
Pre Modification Outstanding Recorded Investment | 261 | 346 |
Post Modification Outstanding Recorded Investment | 261 | 341 |
Added during current period | Residential 1-4 family
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of New Contracts | 1 | 1 |
Pre Modification Outstanding Recorded Investment | 49 | 49 |
Post Modification Outstanding Recorded Investment | 49 | 49 |
Defaulted during the period
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of New Contracts | 2 | 2 |
Post Modification Outstanding Recorded Investment | 187 | 187 |
Defaulted Recorded Investment | 187 | 187 |
Defaulted during the period | Other Consumer
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of New Contracts | 2 | 2 |
Post Modification Outstanding Recorded Investment | 187 | 187 |
Defaulted Recorded Investment | $ 187 | $ 187 |
Assets Measured at Fair Value on Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | $ 180,408 | $ 169,214 |
Securities Investment
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 125,302 | 128,014 |
Securities Investment | Government Sponsored Enterprises
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 121,055 | 123,679 |
Securities Investment | Trust Preferred Securities
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 4,247 | 4,335 |
Mortgage-Backed Securities
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 55,106 | 41,200 |
Level 1
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 121,055 | 123,679 |
Level 1 | Securities Investment
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 121,055 | 123,679 |
Level 1 | Securities Investment | Government Sponsored Enterprises
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 121,055 | 123,679 |
Level 2
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 57,660 | 43,988 |
Level 2 | Securities Investment
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 2,554 | 2,788 |
Level 2 | Securities Investment | Trust Preferred Securities
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 2,554 | 2,788 |
Level 2 | Mortgage-Backed Securities
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 55,106 | 41,200 |
Level 3
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 1,693 | 1,547 |
Level 3 | Securities Investment
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | 1,693 | 1,547 |
Level 3 | Securities Investment | Trust Preferred Securities
|
||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset Fair Value disclosure | $ 1,693 | $ 1,547 |