NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business
Home Bancorp, Inc., a
Louisiana Corporation (Company), was organized by Home Bank (Bank) in May 2008 to facilitate the conversion of the Bank from the mutual to the stock form (Conversion) of ownership. The Conversion was completed on
October 2, 2008, at which time the Company became the holding company for the Bank, with the Company owning all of the issued and outstanding shares of the Banks common stock. Shares of the Companys common stock were issued and sold
in an offering to certain depositors of the Bank. The Company and Bank are headquartered in Lafayette, Louisiana.
Home Bank is a federally chartered
stock savings bank. The Bank was originally chartered in 1908 as a Louisiana state chartered savings association. The Bank converted to a federal mutual savings bank charter in 1993. In 2010, the Bank expanded into the Northshore (of Lake
Ponchartrain) through a Federal Deposit Insurance Corporation (FDIC) assisted acquisition of certain assets and liabilities of the former Statewide Bank (Statewide). In July 2011, the Bank expanded into the Greater New
Orleans region through its acquisition of GS Financial Corporation (GSFC), the former holding company of Guaranty Savings Bank (Guaranty). As of December 31, 2013, the Bank conducts business from 22 banking offices in
the Greater Lafayette, Northshore, Baton Rouge and Greater New Orleans regions of south Louisiana.
The Bank is primarily engaged in attracting deposits
from the general public and using those funds to invest in loans and investment securities. The Banks principal sources of funds are customer deposits, repayments of loans, repayments of investments and funds borrowed from outside sources such
as the Federal Home Loan Bank (FHLB) of Dallas. The Bank derives its income principally from interest earned on loans and investment securities and, to a lesser extent, from fees received in connection with the origination of loans,
service charges on deposit accounts and for other services. The Banks primary expenses are interest expense on deposits and borrowings and general operating expenses.
The Bank is regulated by the Office of the Comptroller of the Currency (OCC) and its deposits are insured to the maximum amount permissible under
federal law by the FDIC. In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was passed by Congress. The act, among other things, imposed new restrictions and an expanded framework of regulatory
oversight for financial institutions and their holding companies, including the Bank and the Company. Under the new law, the Companys and the Banks former primary regulator, the Office of Thrift Supervision (OTS), was
eliminated. Federal thrifts are now subject to regulation and supervision by the OCC, which also currently supervises and regulates all national banks. Savings and loan holding companies are now regulated by the Federal Reserve Board
(FRB), which has the authority to promulgate new regulations governing the Company that will impose additional capital requirements and may result in additional restrictions on investments and other holding company activities. The law
also created a new Consumer Financial Protection Bureau (CFPB) that has the authority to promulgate rules intended to protect consumers in the financial products and services market. Because many of the regulations under the new law have
not been promulgated, we cannot determine the full impact on our business and operations at this time.
50
2. Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial
statements include the accounts of the Company and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to
significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, income taxes, valuation of investments with other-than-temporary impairment, acquisition accounting valuations and valuation of
share-based compensation.
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, due from banks and interest-bearing deposits with the FHLB. The Company
considers all highly liquid debt instruments with original maturities of three months or less (excluding interest-bearing deposits in banks) to be cash equivalents.
The Bank is required to maintain cash reserves with the FRB. The requirement is dependent upon the Banks cash on hand or noninterest-bearing balances.
The reserve requirements as of December 31, 2013 and 2012 were $13,601,000 and $16,466,000, respectively, and the Bank was in compliance with such requirements at such dates.
Investment Securities
The Company follows the guidance
under the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320,
Investments Debt and Equity Securities
. This standard addresses the accounting and reporting for investments in
equity securities that have readily determinable fair values and for all investments in debt securities. Under the topic, investment securities, which the Company both positively intends and has the ability to hold to maturity, are classified as
held to maturity and carried at amortized cost.
Investment securities that are acquired with the intention of being resold in the near term are
classified as trading securities under ASC 320 and are carried at fair value, with unrealized holding gains and losses recognized in current earnings. The Company did not hold any securities for trading purposes at, or during the years ended,
December 31, 2013 or 2012.
Securities not meeting the criteria of either trading securities or held to maturity are classified as available for sale
and are carried at fair value. Unrealized holding gains and losses for these securities are recognized, net of related income tax effects in the Consolidated Statements of Comprehensive Income.
Interest income earned on securities either held to maturity or available for sale is included in current earnings, including the amortization of premiums and
the accretion of discounts using the interest method. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to the yield. The gain or loss realized on the sale of securities classified as available
for sale and held to maturity, as determined using the specific identification method for determining the cost of the securities sold, is computed with reference to its amortized cost and is also included in current earnings.
The Company reviews investment securities for other-than-temporary impairment quarterly. Impairment is considered to be other-than-temporary if it is likely
that all amounts contractually due will not be received for debt securities and when there is no positive evidence indicating that an investments carrying amount is recoverable in the near term for equity securities. When a decline in the fair
value of available for sale and held to maturity securities below cost is deemed to be credit related, a charge for other-than-temporary impairment is included in earnings as Other-than-temporary impairment of securities. The decline in
fair value attributed to non-credit related factors is recognized in other comprehensive income and a new cost basis for the security is
51
established. The new cost basis is not changed for subsequent recoveries in fair value. Increases and decreases between fair value and cost on available for sale securities are reflected in the
Consolidated Statements of Comprehensive Income. In evaluating whether impairment is temporary or other-than-temporary, the Company considers, among other things, the time period the security has been in an unrealized loss position; the financial
condition of the issuer and its industry; recommendations of investment advisors; economic forecasts; market or industry trends; changes in tax laws, regulations, or other governmental policies significantly affecting the issuer; any downgrades from
rating agencies; and any reduction or elimination of dividends. The Companys intent and ability to hold a security for a period of time sufficient to allow for any anticipated recovery in fair value is also considered.
Loans Held for Sale
The Company sells mortgage loans and
loan participations for an amount equal to the principal amount of loans or participations with yields to investors based upon current market rates. Realized gains and losses related to loan sales are included in noninterest income.
The Company allocates the cost to acquire or originate a mortgage loan between the loan and the right to service the loan if it intends to sell or securitize
the loan and retain servicing rights. In addition, the Company periodically assesses capitalized mortgage servicing rights for impairment based on the fair value of such rights. To the extent that temporary impairment exists, write-downs are
recognized in current earnings as an adjustment to the corresponding valuation allowance. Permanent impairment is recognized through a write-down of the asset with a corresponding reduction in the valuation allowance. For purposes of performing its
impairment evaluation, the portfolio is stratified on the basis of certain risk characteristics, including loan type and interest rates. Capitalized servicing rights are amortized over the period of, and in proportion to, estimated net servicing
income, which considers appropriate prepayment assumptions.
For financial reporting purposes, the Company classifies a portion of its loan portfolio as
Mortgage loans held for sale. Included in this category are loans which the Company has the current intent to sell and loans which are available to be sold in the event that the Company determines that loans should be sold to support the
Companys investment and liquidity objectives, as well as to support its overall asset and liability management strategies. Loans included in this category for which the Company has the current intention to sell are recorded at the lower of
aggregate cost or fair value. As of December 31, 2013 and 2012, the Company had $1,951,000 and $5,627,000, respectively, in loans classified as Mortgage loans held for sale.
As of December 31, 2013 and 2012, the Company had $119,922,000 and $133,107,000, respectively, outstanding in loans sold to government agencies that it
was servicing through a third party.
Loans
The
following briefly describes the distinction between originated, non-covered acquired and covered loans and certain significant accounting policies relevant to each category.
Originated Loans
Loans are carried net of
discounts on loan originations and purchased loans are amortized using the level yield interest method over the remaining contractual life of the loan. Nonrefundable loan origination fees, net of direct loan origination costs, are deferred and
recognized over the life of the loan as an adjustment of yield using the interest method.
Interest on loans receivable is accrued as earned using the
interest method over the life of the loan. Interest on loans deemed uncollectible is excluded from income. The accrual of interest is discontinued and reversed against current income once loans become more than 90 days past due or earlier if
conditions warrant. The past due status of loans is determined based on the contractual terms. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is charged against interest income on loans. Interest payments are
applied to reduce the principal balance on nonaccrual loans. Loans are returned to accrual status when all past due payments are received in full and future payments are probable.
Third party property valuations are obtained at the time of origination for real estate secured loans. When a determination is made that a loan has
deteriorated to the point of becoming a problem loan, updated valuations
52
may be ordered to help determine if there is impairment, which may lead to a recommendation for partial charge off or appropriate allowance allocation. Property valuations are ordered through,
and reviewed by, the Companys Appraisal and Review Department. The Company typically orders an as is valuation for collateral property if the loan is in a criticized loan classification.
Loans, or portions of loans, are charged off in the period that such loans, or portions thereof, are deemed uncollectible. The collectability of individual
loans is determined through an estimate of the fair value of the underlying collateral and/or assessment of the financial condition and repayment capacity of the borrower.
Non-covered Acquired Loans
Non-covered acquired
loans at December 31, 2013 and 2012 are those associated with our acquisition of GS Financial Corp. (GSFC), the former holding company of Guaranty Savings Bank of Metairie, Louisiana on July 15, 2011. These loans were recorded
at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The non-covered acquired loans were segregated between those considered to be performing (acquired performing) and those with
evidence of credit deterioration (acquired impaired), and then further segregated into loan pools designed to facilitate the development of expected cash flows. The fair value estimate for each pool of acquired performing and acquired
impaired loans was based on the estimate of expected cash flows, both principal and interest, from that pool, discounted at prevailing market interest rates.
The difference between the fair value of an acquired performing loan pool and the contractual amounts due at the acquisition date (the fair value
discount) is accreted into income over the estimated life of the pool. Management estimates an allowance for loan losses for acquired performing loans using a methodology similar to that used for originated loans. The allowance determined for
each loan pool is compared to the remaining fair value discount for that pool. If the allowance amount calculated under the Companys methodology is greater than the Companys remaining discount, the additional amount called for is added
to the reported allowance through a provision for loan losses. If the allowance amount calculated under the Companys methodology is less than the Companys recorded discount, no additional allowance or provision is recognized. Actual
losses first reduce any remaining fair value discount for the loan pool. Once the discount is fully depleted, losses are applied against the allowance established for that pool. Acquired performing loans are placed on nonaccrual status and
considered and reported as nonperforming or past due using the same criteria applied to the originated portfolio.
The excess of cash flows expected to be
collected from an acquired impaired loan pool over the pools estimated fair value at acquisition is referred to as the accretable yield and is recognized in interest income using an effective yield method over the remaining life of the pool.
Each pool of acquired impaired loans is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.
Management recasts the estimate of cash flows expected to be collected on each acquired impaired loan pool periodically. If the present value of expected cash
flows for a pool is less than its carrying value, an impairment is recognized by an increase in the allowance for loan losses and a charge to the provision for loan losses. If the present value of expected cash flows for a pool is greater than its
carrying value, any previously established allowance for loan losses is reversed and any remaining difference increases the accretable yield which will be taken into interest income over the remaining life of the loan pool. Acquired impaired loans
are generally not subject to individual evaluation for impairment and are not reported with impaired loans, even if they would otherwise qualify for such treatment.
Covered Loans and the Related Loss Share Receivable
The loans purchased in the Companys 2010 acquisition of certain assets and liabilities of Statewide Bank (Statewide) are covered by loss
share agreements between the FDIC and the Company that afford the Company significant loss protection. In connection with the transaction, Home Bank entered into loss sharing agreements with the FDIC which cover the acquired loan portfolio
(Covered Loans) and repossessed assets (collectively referred to as Covered Assets). Under the terms of the loss sharing agreements, the FDIC will, subject to the terms and conditions of the agreements, absorb 80% of the
first $41,000,000 of losses incurred on Covered Assets and 95% of losses on Covered Assets exceeding $41,000,000 during the periods specified in the loss sharing agreements. These Covered Loans are accounted for as acquired impaired loans as
described above. The loss share receivable is measured separately from the related covered loans as it is not contractually embedded in the loans and is not transferable should the loans be sold. The fair value of the loss share receivable at
acquisition was estimated by discounting projected cash flows related to the loss share agreements based on the expected reimbursements for losses using the applicable loss share percentages. The discounted amount is accreted into non-interest
income over the remaining life of the covered loan pool or the life of the loss share agreement.
53
The loss share receivable is reviewed and updated prospectively as loss estimates related to covered loans
change. Increases in expected reimbursements under the loss sharing agreements from a covered loan pool will lead to an increase in the loss share receivable. A decrease in expected reimbursements is reflected first as a reversal of any previously
recorded increase in the loss share receivable on the covered loan pool with the remainder reflected as a reduction in the loss share receivables accretion rate. Increases and decreases in the loss share receivable can result in reductions in
or additions to the provision for loan losses, which serve to offset the impact on the provision from impairment recognized on the underlying covered loan pool and reversals of previously recognized impairment. The impact on operations of a
reduction in the loss share receivables accretion rate is associated with an increase in the accretable yield on the underlying loan pool.
Allowance for Loan Losses
The allowance for loan losses
on loans in our portfolio is maintained at an amount which management believes covers the reasonably estimable and probable losses on such portfolio. The allowance for loan losses is comprised of specific and general reserves. The Company determines
specific reserves based on the provisions of ASC 310,
Receivables
. The Companys allowance for loan losses includes a measure of impairment related to those loans specifically identified for evaluation under the topic. This measurement
is based on a comparison of the recorded investment in the loan with either the expected cash flows discounted using the loans original effective interest rate, observable market price for the loan or the fair value of the collateral
underlying certain collateral-dependent loans. General reserves are based on managements evaluation of many factors, including current economic trends, industry experience, historical loss experience (generally three years), industry loan
concentrations, the borrowers abilities to repay and repayment performance, probability of foreclosure and estimated collateral values. As these factors change, adjustments to the loan loss reserve are charged to current operations. Loans that
are determined to be uncollectible are charged-off against the allowance for loan losses once that determination is made.
While management uses available
information to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance. The OCC, as an integral part of its examination processes,
periodically reviews the allowance for loan losses. The OCC may require the recognition of adjustments to the allowance for loan losses based on their judgment of information available to them as of the time of their examinations. To the extent the
OCCs estimates differ from managements estimates, additional provisions to the allowance for loan losses may be required as of the time of their examination. As part of the risk management program, an independent review is performed on
the loan portfolio, which supplements managements assessment of the loan portfolio and the allowance for loan losses. The result of the independent review is reported directly to the Audit Committee of the Board of Directors.
Repossessed Assets
Repossessed assets are recorded at
the lesser of the balance of the loan or fair value less estimated selling costs at the date acquired or upon receiving new property valuations. Costs relating to the development and improvement of foreclosed property are capitalized, and costs
relating to holding and maintaining the property are expensed. Write-downs from cost to fair value at the dates of foreclosure are charged against the allowance for loan losses. Valuations are performed periodically and a charge to operations is
recorded if the carrying value of a property exceeds its fair value less selling costs. Generally, the Company appraises the property at the time of foreclosure and at least every 12 months following the foreclosure. Excluding Covered Assets, the
Company had $1,406,000 and $3,771,000 of repossessed assets as of December 31, 2013 and 2012, respectively. Including Covered Assets, the Company had $4,566,000 and $6,454,000 of repossessed assets as of December 31, 2013 and 2012,
respectively. Repossessed Assets are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition.
Federal Home Loan Bank Stock
As a member of the FHLB,
the Bank is required to maintain a minimum investment in its stock that varies with the level of FHLB advances outstanding. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable
fair value and as such is classified as restricted stock,
54
carried at cost and evaluated for impairment in accordance with GAAP. The stocks value is determined by the ultimate recoverability of the par value rather than by recognizing temporary
declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time
this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the
customer base of the FHLB and (d) the liquidity position of the FHLB.
Office Properties and Equipment
Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method with rates based on
the estimated useful lives of the individual assets, which range from 3 to 40 years. Expenditures which substantially increase the useful lives of existing property and equipment are capitalized while routine expenditures for repairs and maintenance
are expensed as incurred.
Cash Surrender Value of Bank-owned Life Insurance
Life insurance contracts represent single premium life insurance contracts on the lives of certain officers of the Bank. The Bank is the beneficiary of these
policies. These contracts are reported at their cash surrender value and changes in the cash surrender value are included in noninterest income.
Intangible Assets
Intangible assets consist of goodwill,
core deposit intangibles and mortgage servicing rights. These assets are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition. Goodwill represents the excess purchase price over the fair
value of net assets acquired in business acquisitions. Goodwill is not amortized but rather is evaluated for impairment at least annually. Core deposit intangibles represent the estimated value related to customer deposit relationships assumed in
the Companys acquisitions. Core deposit intangibles are being amortized over nine or 10 years using an accelerated method. The mortgage servicing rights represent servicing assets related to mortgage loans sold and serviced at fair value.
Mortgage servicing rights are being amortized over a maximum of 10 years using an accelerated method.
Transfer of Financial Assets
Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be
surrendered when the assets have been isolated from the Company, the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and the Company does not
maintain effective control over the transferred assets through an agreement to repurchase them before maturity.
Salary Continuation Agreements
The Company records the expense associated with its salary continuation agreements over the service periods of the persons covered under these
agreements.
Income Taxes
The Company accounts for
income taxes under the liability method. Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their
respective tax bases. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the
years in which the assets and liabilities are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income taxes during the period that includes the enactment date.
In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Companys assets and liabilities
results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely
than not that some or all of the deferred tax asset will not be realized. In assessing the realizability of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable earnings and tax
planning strategies.
55
The income tax benefit or expense is the total of the current year income tax due or refundable and the change in
deferred tax assets and liabilities.
A tax position is recognized as a benefit only if it is more likely than not that the tax position would be
sustained in a tax examination, with a tax examination presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the more
likely than not test, no tax benefit is recorded.
The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if
applicable, in noninterest expense. During the years ended December 31, 2013, 2012, and 2011, the Company did not recognize any interest or penalties in its financial statements, nor has it recorded an accrued liability for interest or penalty
payments.
Stock-based Compensation Plans
The
Company issues stock options under the 2009 Stock Option Plan to directors, officers and other key employees. In accordance with the requirements of ASC 718,
Compensation Stock Compensation
, the Company has adopted a fair value based
method of accounting for employee stock compensation plans, whereby compensation cost is measured as of the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period.
The Company issues restricted stock under the 2009 Recognition and Retention Plan (RRP) for directors, officers and other key employees. The RRP
allows for the issuance of restricted stock awards that may not be sold or otherwise transferred until certain restrictions have lapsed. The holders of the restricted stock have the right to vote the shares as awards are earned. The unearned
compensation related to these awards is amortized to compensation expense over the service period, which is usually the vesting period. The total share-based compensation expense for these awards is determined based on the market price of the
Companys common stock as of the date of grant applied to the total number of shares granted and is amortized over the vesting period.
Earnings
Per Share
Earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding
during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.
Comprehensive Income
GAAP generally requires that
recognized revenues, expenses, gains and losses be included in net earnings. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity
section of the balance sheets, such items, along with net earnings, are components of comprehensive income. The tax effect for unrealized gains on investment securities was ($1,413,095), $853,987 and $474,623 for the periods ending December 31,
2013, 2012 and 2011, respectively. The reclassification adjustment for (gains) losses included in net income had a tax effect of ($149,870), ($75,406) and $58,068 for the periods ending December 31, 2013, 2012 and 2011. Comprehensive income is
reflected in the Consolidated Statements of Comprehensive Income.
Reclassifications
Certain reclassifications have been made to prior period balances to conform to the current period presentation.
Recent Accounting Pronouncements
In October 2012, the
FASB issued Accounting Standards Update (ASU) No. 2012-06, Subsequent Accounting for an Indemnification Asset as a result of a Government-Assisted Acquisition of a Financial Institution. ASU 2012-06 requires the change in
measurement of the indemnification asset to be accounted for on the same basis as the change in the indemnified item. Any amortization period for the changes in value is limited to the shorter of the term of the indemnification agreement or the
remaining life of the indemnified assets. The amendments are effective for fiscal years beginning on or after December 15, 2012 and interim periods within those fiscal years. The amendments are applied prospectively to any new indemnification
assets acquired after the date of adoption
56
and to indemnification assets existing as of the date of adoption. The Company adopted ASU 2012-06, and as a result of the adoption, amortized $1.8 million of the indemnification asset in 2013.
The Company continues to assess the carrying value of this asset at least quarterly.
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income
(Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income was issued in the first quarter of 2013 to improve the reporting of reclassifications out of accumulated other comprehensive income (AOCI). The
ASU requires information regarding the impact to net earnings of the reclassification on significant amounts out of AOCI to be presented on either the face of the statement of earnings or in the notes to the financial statements. The amendments in
this Update do not change the current reporting requirements for net earnings or AOCI. For public entities, the amendments in this Update are effective prospectively for reporting periods beginning after December 15, 2012. The Company has
adopted ASU 2013-02, and the information required has been included in the Consolidated Statements of Comprehensive Income.
In January 2013, the FASB
issued ASU No. 2013-01, Balance Sheet (Topic 210), Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The amendments limit the scope of ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, to certain
derivative instruments (including bifurcated embedded derivatives), repurchase agreements and reverse repurchase agreements, and securities borrowing and lending arrangements that are either (1) offset on the balance sheet or (2) subject
to an enforceable master netting arrangement or similar agreement. The effective date of the amendments coincides with that of ASU 2011-11 (i.e., for fiscal years beginning on or after January 1, 2013, and interim periods within those years).
The amendments are applied retrospectively for all comparative periods presented on the balance sheet. The Company has adopted ASU 2013-01, and the adoption of the guidance did not have a material impact on the Companys results of operations,
financial position or disclosures.
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740), which clarifies the presentation requirements of
unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years,
beginning after December 15, 2014 and should be applied prospectively. The adoption of this ASU is not expected to have a material effect on our consolidated statements of financial condition, results of operations or cash flows.
In January 2014, the FASB issued ASU No. 2014-04, Receivables Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification
of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure, which clarifies when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage
loan such that the loan should be derecognized and the real estate recognized. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and should be applied
prospectively. The adoption of this ASU is not expected to have a material effect on the Companys financial position, results of operations or cash flows.
3. Acquisition Activity
GS Financial Corp.
On July 15, 2011, the Company acquired GSFC, the former holding company of Guaranty of Metairie, Louisiana.
On the acquisition date, Home Bancorp Acquisition Corp., a newly created wholly owned subsidiary of the Company, was merged with and into GSFC, and immediately thereafter, GSFC was merged with and into the Company, with the Company as the surviving
corporation, and Guaranty, the former subsidiary of GSFC, was merged with and into Home Bank, with Home Bank as the surviving institution. Shareholders of GSFC received $21.00 per share in cash, yielding an aggregate purchase price of $26,417,000.
As a result of the acquisition, the four former Guaranty branches in the Greater New Orleans area were added to the Banks branch office network. Assets acquired from GSFC totaled $256,677,000, which included loans of $182,440,000, investment
securities of $46,481,000 and cash of $9,262,000. The Bank also recorded a core deposit intangible asset of $859,000 and goodwill of $296,000 relating to the acquisition of GSFC, and assumed liabilities of $230,614,000, which included $193,518,000
in deposits and $34,707,000 in FHLB advances.
57
Acquired loans which are impaired as of the date of acquisition are accounted for under ASC 310-30,
Loans and
Debt Securities Acquired with Deteriorated Credit Quality
. In accordance with ASC 310-30 and in estimating the fair value of the acquired loans with deteriorated credit quality as of the acquisition date, we (a) calculated the
contractual amount and timing of undiscounted principal and interest payments (the undiscounted contractual cash flows) and (b) estimated the amount and timing of undiscounted expected principal and interest payments (the
undiscounted expected cash flows). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference totaled $5,490,000 as of
July 15, 2011 and represented an estimate of the undiscounted loss exposure in the acquired loans with deteriorated credit quality as of the acquisition date.
The following table summarizes the accretable yield on the loans acquired from GSFC with deteriorated credit quality as of July 15, 2011 and the changes
therein through December 31, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Balance, beginning of period
|
|
$
|
(839
|
)
|
|
$
|
(644
|
)
|
|
$
|
|
|
Acquisition accretable yield
|
|
|
|
|
|
|
|
|
|
|
(1,169
|
)
|
Accretion
|
|
|
133
|
|
|
|
966
|
|
|
|
525
|
|
Net transfers from nonaccretable difference to accretable yield
|
|
|
(575
|
)
|
|
|
(1,161
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(1,281
|
)
|
|
$
|
(839
|
)
|
|
$
|
(644
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013, the weighted average remaining contractual life of the loan portfolio acquired with deteriorated
credit quality from GSFC was 8.2 years.
Statewide Bank
On March 12, 2010, the Bank acquired certain assets and liabilities of the former Statewide Bank, a full-service community bank formerly headquartered in
Covington, Louisiana, from the FDIC. As a result of the Statewide acquisition, the Banks branch office network was expanded to include six branches in the Northshore (of Lake Pontchartrain) region of Louisiana. Assets acquired in the Statewide
transaction totaled $188,026,000, which included loans of $110,415,000, investment securities of $24,841,000 and cash of $11,569,000. In addition, the Bank recorded an FDIC Asset, representing the portion of estimated losses covered by loss sharing
agreements between the Bank and the FDIC, of $34,422,000. The loss sharing agreements between the Bank and the FDIC afford us significant protection against future losses in the loan portfolio and repossessed assets acquired in the Statewide
transaction. The Bank also recorded a core deposit intangible asset of $1,429,000 and goodwill of $560,000 relating to the Statewide acquisition, and assumed liabilities of $223,910,000, which included $206,925,000 in deposits and $16,824,000 in
FHLB advances.
The following table summarizes the accretable yield on the Covered Loans as of March 12, 2010 and the changes therein through
December 31, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
Balance, beginning of period
|
|
$
|
(3,973
|
)
|
|
$
|
(8,550
|
)
|
|
$
|
(5,505
|
)
|
|
$
|
|
|
Acquisition accretable yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,110
|
)
|
Accretion
|
|
|
5,417
|
|
|
|
4,613
|
|
|
|
5,170
|
|
|
|
5,605
|
|
Net transfers from nonaccretable difference to accretable yield
|
|
|
(3,578
|
)
|
|
|
(36
|
)
|
|
|
(8,215
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(2,134
|
)
|
|
$
|
(3,973
|
)
|
|
$
|
(8,550
|
)
|
|
$
|
(5,505
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013, the weighted average remaining contractual life of the Covered Loan portfolio was 3.8 years.
Over the life of the Covered Loans, the Company will continue to estimate cash flows expected to be collected on pools of loans sharing common risk
characteristics. The Company will evaluate whether the present value of Covered Loans has decreased and if so, a provision for loan loss will be recognized. For any increases in cash flows expected to be collected, the Company will adjust the amount
of accretable yield recognized on a prospective basis
58
over the remaining life of the applicable loan or pool of loans. During the year ended December 31, 2013, there was an aggregate $3,578,000 increase in expected cash flows from the Covered
Loans acquired from Statewide over the amounts originally estimated. Such amount was recorded as an increase in the accretable yield to be recognized in interest income in future periods and a decrease to the nonaccretable yield.
The FDIC loss sharing receivable (FDIC Asset) is measured separately from the related Covered Assets. Deterioration in the credit quality of the
loans (immediately recorded as a provision to the allowance for loan losses) would immediately increase the basis of the FDIC Asset, with the offset recorded through the consolidated statement of income. Increases in the credit quality or cash flows
of loans (reflected as an adjustment to yield and accreted into income over the remaining life of the loans) decrease the basis of the FDIC Asset, with such decrease being accreted into income over 1) the same period or 2) the life of the loss
sharing agreements, whichever is shorter.
4. Investment Securities
Summary information regarding investment securities classified as available for sale and held to maturity as of December 31, 2013 and
2012 follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
Over 1
Year
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
96,145
|
|
|
$
|
1,765
|
|
|
$
|
909
|
|
|
$
|
216
|
|
|
$
|
96,785
|
|
Non-U.S. agency mortgage-backed
|
|
|
9,765
|
|
|
|
58
|
|
|
|
31
|
|
|
|
43
|
|
|
|
9,749
|
|
Municipal bonds
|
|
|
19,879
|
|
|
|
318
|
|
|
|
279
|
|
|
|
119
|
|
|
|
19,799
|
|
U.S. government agency
|
|
|
23,543
|
|
|
|
236
|
|
|
|
480
|
|
|
|
|
|
|
|
23,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
149,332
|
|
|
$
|
2,377
|
|
|
$
|
1,699
|
|
|
$
|
378
|
|
|
$
|
149,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
132
|
|
|
$
|
1
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
133
|
|
Municipal bonds
|
|
|
9,273
|
|
|
|
67
|
|
|
|
198
|
|
|
|
|
|
|
|
9,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity
|
|
$
|
9,405
|
|
|
$
|
68
|
|
|
$
|
198
|
|
|
$
|
|
|
|
$
|
9,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
Over 1
Year
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
99,137
|
|
|
$
|
3,391
|
|
|
$
|
14
|
|
|
$
|
1
|
|
|
$
|
102,513
|
|
Non-U.S. agency mortgage-backed
|
|
|
12,426
|
|
|
|
280
|
|
|
|
|
|
|
|
38
|
|
|
|
12,668
|
|
Municipal bonds
|
|
|
16,843
|
|
|
|
774
|
|
|
|
32
|
|
|
|
|
|
|
|
17,585
|
|
U.S. government agency
|
|
|
23,944
|
|
|
|
553
|
|
|
|
7
|
|
|
|
|
|
|
|
24,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
152,350
|
|
|
$
|
4,998
|
|
|
$
|
53
|
|
|
$
|
39
|
|
|
$
|
157,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
693
|
|
|
$
|
13
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
706
|
|
Municipal bonds
|
|
|
972
|
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
1,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity
|
|
$
|
1,665
|
|
|
$
|
81
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management evaluates securities for other-than-temporary impairment at least quarterly, and more frequently when economic and
market conditions warrant such evaluations. Consideration is given to (1) the extent and length of
59
time the fair value has been below cost; (2) the reasons for the decline in value; (3) the Companys intent to sell a security or whether it is more likely than not we will be
required to sell the security before the recovery of its amortized cost, which may extend to maturity and our ability and intent to hold the security for a period of time that allows for the recovery in value in the case of equity securities.
The Company developed a process to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves
evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, bond credit support, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow
projections and other factors as indicators of potential credit issues. When the Company determines that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.
As of December 31, 2013, 64 debt securities had unrealized losses totaling 3.3% of the individual securities amortized cost basis and 1.4% of the
Companys total amortized cost basis of the investment securities portfolio. Nine of the 64 securities had been in a continuous loss position for over 12 months at such date. The nine securities had an aggregate amortized cost basis and
unrealized loss of $7,478,000 and $378,000, respectively, at December 31, 2013. Management has the intent and ability to hold these debt securities until maturity, or until anticipated recovery. No declines in these 64 securities were deemed to
be other-than-temporary.
As of December 31, 2012, 16 debt securities had unrealized losses totaling 0.7% of the individual securities
amortized cost basis and 0.1% of the Companys total amortized cost basis of the investment securities portfolio. Five of the 16 securities had been in a continuous loss position for over 12 months at such date. The five securities had an
aggregate amortized cost basis and unrealized loss of $2,653,000 and $39,000, respectively, at December 31, 2012. Management has the intent and ability to hold these debt securities until maturity, or until anticipated recovery. No declines in
these five securities were deemed to be other-than-temporary.
The amortized cost and estimated fair value by maturity of investment securities as of
December 31, 2013 are shown in the following tables. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. The expected maturity of a
security, may differ from its contractual maturity because of the exercise of call options and potential paydowns. Accordingly, actual maturities may differ from contractual maturities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
One Year
or Less
|
|
|
After One
Year through
Five Years
|
|
|
After Five
Years through
Ten Years
|
|
|
After Ten
Years
|
|
|
Total
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
113
|
|
|
$
|
231
|
|
|
$
|
15,665
|
|
|
$
|
80,776
|
|
|
$
|
96,785
|
|
Non-U.S. agency mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,749
|
|
|
|
9,749
|
|
Municipal bonds
|
|
|
503
|
|
|
|
4,858
|
|
|
|
11,574
|
|
|
|
2,864
|
|
|
|
19,799
|
|
U.S. government agency
|
|
|
2,512
|
|
|
|
5,293
|
|
|
|
10,510
|
|
|
|
4,984
|
|
|
|
23,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale
|
|
$
|
3,128
|
|
|
$
|
10,382
|
|
|
$
|
37,749
|
|
|
$
|
98,373
|
|
|
$
|
149,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
133
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
133
|
|
Municipal bonds
|
|
|
216
|
|
|
|
797
|
|
|
|
6,886
|
|
|
|
1,243
|
|
|
|
9,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities held to maturity
|
|
$
|
349
|
|
|
$
|
797
|
|
|
$
|
6,886
|
|
|
$
|
1,243
|
|
|
$
|
9,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
One Year
or Less
|
|
|
After One
Year through
Five Years
|
|
|
After Five
Years through
Ten Years
|
|
|
After
Ten Years
|
|
|
Total
|
|
Amortized Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
108
|
|
|
$
|
214
|
|
|
$
|
15,696
|
|
|
$
|
80,127
|
|
|
$
|
96,145
|
|
Non-U.S. agency mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,765
|
|
|
|
9,765
|
|
Municipal bonds
|
|
|
503
|
|
|
|
4,743
|
|
|
|
11,761
|
|
|
|
2,872
|
|
|
|
19,879
|
|
U.S. government agency
|
|
|
2,500
|
|
|
|
5,225
|
|
|
|
10,990
|
|
|
|
4,828
|
|
|
|
23,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale
|
|
$
|
3,111
|
|
|
$
|
10,182
|
|
|
$
|
38,447
|
|
|
$
|
97,592
|
|
|
$
|
149,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
132
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
132
|
|
Municipal bonds
|
|
|
215
|
|
|
|
756
|
|
|
|
7,041
|
|
|
|
1,261
|
|
|
|
9,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities held to maturity
|
|
$
|
347
|
|
|
$
|
756
|
|
|
$
|
7,041
|
|
|
$
|
1,261
|
|
|
$
|
9,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2013, the Company recorded gross gains of $428,000 and no gross losses related to the
sale of investment securities. For the year ended December 31, 2012, the Company recorded gross gains of $230,000 and gross losses of $8,000 related to the sale of investment securities.
As of December 31, 2013 and 2012, the Company had accrued interest receivable for investment securities of $679,000 and $565,000, respectively.
As of December 31, 2013 and 2012, the Company had $43,977,000 and $41,462,000, respectively, of securities pledged to secure public deposits.
5. Loans
Loans, including Covered Loans and net of unearned income, consisted of the following as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
179,506
|
|
|
$
|
177,816
|
|
Home equity loans and lines
|
|
|
40,561
|
|
|
|
40,425
|
|
Commercial real estate
|
|
|
269,849
|
|
|
|
252,805
|
|
Construction and land
|
|
|
83,271
|
|
|
|
75,529
|
|
Multi-family residential
|
|
|
16,578
|
|
|
|
19,659
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
589,765
|
|
|
|
566,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
77,533
|
|
|
|
72,253
|
|
Consumer
|
|
|
40,158
|
|
|
|
34,641
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
117,691
|
|
|
|
106,894
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
707,456
|
|
|
$
|
673,128
|
|
|
|
|
|
|
|
|
|
|
61
A summary of activity in the allowance for loan losses for the years ended December 31, 2013, 2012 and 2011
is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2013
|
|
(dollars in thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
798
|
|
|
$
|
(76
|
)
|
|
$
|
|
|
|
$
|
182
|
|
|
$
|
904
|
|
Home equity loans and lines
|
|
|
322
|
|
|
|
|
|
|
|
10
|
|
|
|
34
|
|
|
|
366
|
|
Commercial real estate
|
|
|
2,040
|
|
|
|
|
|
|
|
|
|
|
|
487
|
|
|
|
2,528
|
|
Construction and land
|
|
|
785
|
|
|
|
(44
|
)
|
|
|
10
|
|
|
|
226
|
|
|
|
977
|
|
Multi-family residential
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
90
|
|
Commercial and industrial
|
|
|
683
|
|
|
|
(1,990
|
)
|
|
|
57
|
|
|
|
2,582
|
|
|
|
1,332
|
|
Consumer
|
|
|
400
|
|
|
|
(9
|
)
|
|
|
24
|
|
|
|
58
|
|
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
5,114
|
|
|
$
|
(2,119
|
)
|
|
$
|
101
|
|
|
$
|
3,574
|
|
|
$
|
6,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
184
|
|
|
$
|
(36
|
)
|
|
$
|
|
|
|
$
|
36
|
|
|
$
|
184
|
|
Home equity loans and lines
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
37
|
|
|
|
58
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
6
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
205
|
|
|
$
|
(36
|
)
|
|
$
|
|
|
|
$
|
79
|
|
|
$
|
248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
982
|
|
|
$
|
(112
|
)
|
|
$
|
|
|
|
$
|
218
|
|
|
$
|
1,088
|
|
Home equity loans and lines
|
|
|
343
|
|
|
|
|
|
|
|
10
|
|
|
|
71
|
|
|
|
424
|
|
Commercial real estate
|
|
|
2,040
|
|
|
|
|
|
|
|
|
|
|
|
488
|
|
|
|
2,528
|
|
Construction and land
|
|
|
785
|
|
|
|
(44
|
)
|
|
|
10
|
|
|
|
226
|
|
|
|
977
|
|
Multi-family residential
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
90
|
|
Commercial and industrial
|
|
|
683
|
|
|
|
(1,990
|
)
|
|
|
57
|
|
|
|
2,588
|
|
|
|
1,338
|
|
Consumer
|
|
|
400
|
|
|
|
(9
|
)
|
|
|
24
|
|
|
|
58
|
|
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
5,319
|
|
|
$
|
(2,155
|
)
|
|
$
|
101
|
|
|
$
|
3,653
|
|
|
$
|
6,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2012
|
|
(dollars in thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
778
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
20
|
|
|
$
|
798
|
|
Home equity loans and lines
|
|
|
336
|
|
|
|
(32
|
)
|
|
|
15
|
|
|
|
3
|
|
|
|
322
|
|
Commercial real estate
|
|
|
1,755
|
|
|
|
(1,980
|
)
|
|
|
94
|
|
|
|
2,171
|
|
|
|
2,040
|
|
Construction and land
|
|
|
904
|
|
|
|
(215
|
)
|
|
|
|
|
|
|
96
|
|
|
|
785
|
|
Multi-family residential
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
|
86
|
|
Commercial and industrial
|
|
|
872
|
|
|
|
(60
|
)
|
|
|
6
|
|
|
|
(135
|
)
|
|
|
683
|
|
Consumer
|
|
|
345
|
|
|
|
(38
|
)
|
|
|
14
|
|
|
|
79
|
|
|
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
5,054
|
|
|
$
|
(2,325
|
)
|
|
$
|
129
|
|
|
$
|
2,256
|
|
|
$
|
5,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
184
|
|
|
$
|
184
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
21
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
205
|
|
|
$
|
205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
(50
|
)
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
50
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(50
|
)
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
778
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
204
|
|
|
$
|
982
|
|
Home equity loans and lines
|
|
|
336
|
|
|
|
(32
|
)
|
|
|
15
|
|
|
|
24
|
|
|
|
343
|
|
Commercial real estate
|
|
|
1,755
|
|
|
|
(1,980
|
)
|
|
|
94
|
|
|
|
2,171
|
|
|
|
2,040
|
|
Construction and land
|
|
|
904
|
|
|
|
(215
|
)
|
|
|
|
|
|
|
96
|
|
|
|
785
|
|
Multi-family residential
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
|
86
|
|
Commercial and industrial
|
|
|
922
|
|
|
|
(60
|
)
|
|
|
6
|
|
|
|
(185
|
)
|
|
|
683
|
|
Consumer
|
|
|
345
|
|
|
|
(38
|
)
|
|
|
14
|
|
|
|
79
|
|
|
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
5,104
|
|
|
$
|
(2,325
|
)
|
|
$
|
129
|
|
|
$
|
2,411
|
|
|
$
|
5,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2011
|
|
(dollars in thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
641
|
|
|
$
|
|
|
|
$
|
16
|
|
|
$
|
121
|
|
|
$
|
778
|
|
Home equity loans and lines
|
|
|
296
|
|
|
|
|
|
|
|
|
|
|
|
40
|
|
|
|
336
|
|
Commercial real estate
|
|
|
1,258
|
|
|
|
|
|
|
|
6
|
|
|
|
491
|
|
|
|
1,755
|
|
Construction and land
|
|
|
666
|
|
|
|
|
|
|
|
|
|
|
|
238
|
|
|
|
904
|
|
Multi-family residential
|
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
64
|
|
Commercial and industrial
|
|
|
746
|
|
|
|
(281
|
)
|
|
|
25
|
|
|
|
382
|
|
|
|
872
|
|
Consumer
|
|
|
267
|
|
|
|
(53
|
)
|
|
|
11
|
|
|
|
120
|
|
|
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
3,920
|
|
|
$
|
(334
|
)
|
|
$
|
58
|
|
|
$
|
1,410
|
|
|
$
|
5,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
|
|
|
|
50
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
50
|
|
|
$
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
641
|
|
|
$
|
|
|
|
$
|
16
|
|
|
$
|
121
|
|
|
$
|
778
|
|
Home equity loans and lines
|
|
|
296
|
|
|
|
|
|
|
|
|
|
|
|
40
|
|
|
|
336
|
|
Commercial real estate
|
|
|
1,258
|
|
|
|
|
|
|
|
6
|
|
|
|
491
|
|
|
|
1,755
|
|
Construction and land
|
|
|
666
|
|
|
|
|
|
|
|
|
|
|
|
238
|
|
|
|
904
|
|
Multi-family residential
|
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
64
|
|
Commercial and industrial
|
|
|
746
|
|
|
|
(281
|
)
|
|
|
25
|
|
|
|
432
|
|
|
|
922
|
|
Consumer
|
|
|
267
|
|
|
|
(53
|
)
|
|
|
11
|
|
|
|
120
|
|
|
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
3,920
|
|
|
$
|
(334
|
)
|
|
$
|
58
|
|
|
$
|
1,460
|
|
|
$
|
5,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The allowance for loan losses and recorded investment in loans as of the periods indicated is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013
|
|
|
|
Originated Loans
|
|
|
Acquired Loans
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Non-covered
Acquired
Loans
(1)
|
|
|
Covered Loans
|
|
|
Total
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
904
|
|
|
$
|
|
|
|
$
|
184
|
|
|
$
|
|
|
|
$
|
1,088
|
|
Home equity loans and lines
|
|
|
366
|
|
|
|
|
|
|
|
58
|
|
|
|
|
|
|
|
424
|
|
Commercial real estate
|
|
|
2,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,528
|
|
Construction and land
|
|
|
977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
977
|
|
Multi-family residential
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
|
Commercial and industrial
|
|
|
850
|
|
|
|
482
|
|
|
|
6
|
|
|
|
|
|
|
|
1,338
|
|
Consumer
|
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
6,188
|
|
|
$
|
482
|
|
|
$
|
248
|
|
|
$
|
|
|
|
$
|
6,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013
|
|
|
|
Originated Loans
|
|
|
Acquired Loans
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Non-covered
Acquired
Loans
(1)
|
|
|
Covered Loans
|
|
|
Total
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
137,685
|
|
|
$
|
386
|
|
|
$
|
37,084
|
|
|
$
|
4,351
|
|
|
$
|
179,506
|
|
Home equity loans and lines
|
|
|
30,422
|
|
|
|
3
|
|
|
|
7,798
|
|
|
|
2,338
|
|
|
|
40,561
|
|
Commercial real estate
|
|
|
225,356
|
|
|
|
360
|
|
|
|
32,945
|
|
|
|
11,188
|
|
|
|
269,849
|
|
Construction and land
|
|
|
79,771
|
|
|
|
|
|
|
|
2,096
|
|
|
|
1,404
|
|
|
|
83,271
|
|
Multi-family residential
|
|
|
7,778
|
|
|
|
|
|
|
|
7,678
|
|
|
|
1,122
|
|
|
|
16,578
|
|
Commercial and industrial
|
|
|
72,003
|
|
|
|
1,831
|
|
|
|
2,428
|
|
|
|
1,271
|
|
|
|
77,533
|
|
Consumer
|
|
|
39,661
|
|
|
|
|
|
|
|
497
|
|
|
|
|
|
|
|
40,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
592,676
|
|
|
$
|
2,580
|
|
|
$
|
90,526
|
|
|
$
|
21,674
|
|
|
$
|
707,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012
|
|
|
|
Originated Loans
|
|
|
Acquired Loans
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Non-covered
Acquired
Loans
(1)
|
|
|
Covered Loans
|
|
|
Total
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
749
|
|
|
$
|
49
|
|
|
$
|
184
|
|
|
$
|
|
|
|
$
|
982
|
|
Home equity loans and lines
|
|
|
322
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
343
|
|
Commercial real estate
|
|
|
1,906
|
|
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
2,040
|
|
Construction and land
|
|
|
785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
785
|
|
Multi-family residential
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
86
|
|
Commercial and industrial
|
|
|
683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
683
|
|
Consumer
|
|
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
4,931
|
|
|
$
|
183
|
|
|
$
|
205
|
|
|
$
|
|
|
|
$
|
5,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012
|
|
|
|
Originated Loans
|
|
|
Acquired Loans
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Non-covered
Acquired
Loans
(1)
|
|
|
Covered Loans
|
|
|
Total
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
115,278
|
|
|
$
|
1,464
|
|
|
$
|
49,943
|
|
|
$
|
11,131
|
|
|
$
|
177,816
|
|
Home equity loans and lines
|
|
|
26,937
|
|
|
|
56
|
|
|
|
10,123
|
|
|
|
3,309
|
|
|
|
40,426
|
|
Commercial real estate
|
|
|
182,376
|
|
|
|
3,428
|
|
|
|
44,132
|
|
|
|
22,869
|
|
|
|
252,805
|
|
Construction and land
|
|
|
66,815
|
|
|
|
60
|
|
|
|
3,650
|
|
|
|
5,004
|
|
|
|
75,529
|
|
Multi-family residential
|
|
|
7,930
|
|
|
|
528
|
|
|
|
9,818
|
|
|
|
1,383
|
|
|
|
19,658
|
|
Commercial and industrial
|
|
|
66,321
|
|
|
|
|
|
|
|
4,469
|
|
|
|
1,463
|
|
|
|
72,253
|
|
Consumer
|
|
|
33,341
|
|
|
|
|
|
|
|
695
|
|
|
|
605
|
|
|
|
34,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
498,998
|
|
|
$
|
5,536
|
|
|
$
|
122,830
|
|
|
$
|
45,764
|
|
|
$
|
673,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
$4.6 million and $5.3 million in GSFC loans were accounted for under ASC 310-30 at December 31, 2013 and 2012, respectively.
|
Although the Company has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate
and is dependent on the real estate market.
65
Credit quality indicators on the Companys loan portfolio as of the dates indicated are as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
136,274
|
|
|
$
|
265
|
|
|
$
|
1,532
|
|
|
$
|
|
|
|
$
|
138,071
|
|
Home equity loans and lines
|
|
|
29,962
|
|
|
|
149
|
|
|
|
314
|
|
|
|
|
|
|
|
30,425
|
|
Commercial real estate
|
|
|
218,779
|
|
|
|
800
|
|
|
|
6,137
|
|
|
|
|
|
|
|
225,716
|
|
Construction and land
|
|
|
78,297
|
|
|
|
147
|
|
|
|
1,327
|
|
|
|
|
|
|
|
79,771
|
|
Multi-family residential
|
|
|
6,902
|
|
|
|
876
|
|
|
|
|
|
|
|
|
|
|
|
7,778
|
|
Commercial and industrial
|
|
|
65,271
|
|
|
|
4,682
|
|
|
|
3,881
|
|
|
|
|
|
|
|
73,834
|
|
Consumer
|
|
|
39,336
|
|
|
|
48
|
|
|
|
277
|
|
|
|
|
|
|
|
39,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
574,821
|
|
|
$
|
6,967
|
|
|
$
|
13,468
|
|
|
$
|
|
|
|
$
|
595,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
31,467
|
|
|
$
|
119
|
|
|
$
|
5,498
|
|
|
$
|
|
|
|
$
|
37,084
|
|
Home equity loans and lines
|
|
|
7,226
|
|
|
|
198
|
|
|
|
374
|
|
|
|
|
|
|
|
7,798
|
|
Commercial real estate
|
|
|
30,192
|
|
|
|
|
|
|
|
2,753
|
|
|
|
|
|
|
|
32,945
|
|
Construction and land
|
|
|
1,044
|
|
|
|
|
|
|
|
1,052
|
|
|
|
|
|
|
|
2,096
|
|
Multi-family residential
|
|
|
5,397
|
|
|
|
33
|
|
|
|
2,248
|
|
|
|
|
|
|
|
7,678
|
|
Commercial and industrial
|
|
|
2,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,428
|
|
Consumer
|
|
|
497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-covered acquired loans
|
|
$
|
78,251
|
|
|
$
|
350
|
|
|
$
|
11,925
|
|
|
$
|
|
|
|
$
|
90,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
3,108
|
|
|
$
|
151
|
|
|
$
|
1,092
|
|
|
$
|
|
|
|
$
|
4,351
|
|
Home equity loans and lines
|
|
|
2,084
|
|
|
|
21
|
|
|
|
233
|
|
|
|
|
|
|
|
2,338
|
|
Commercial real estate
|
|
|
9,702
|
|
|
|
249
|
|
|
|
1,237
|
|
|
|
|
|
|
|
11,188
|
|
Construction and land
|
|
|
1,247
|
|
|
|
64
|
|
|
|
93
|
|
|
|
|
|
|
|
1,404
|
|
Multi-family residential
|
|
|
206
|
|
|
|
916
|
|
|
|
|
|
|
|
|
|
|
|
1,122
|
|
Commercial and industrial
|
|
|
451
|
|
|
|
5
|
|
|
|
815
|
|
|
|
|
|
|
|
1,271
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total covered loans
|
|
$
|
16,798
|
|
|
$
|
1,406
|
|
|
$
|
3,470
|
|
|
$
|
|
|
|
$
|
21,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
170,849
|
|
|
$
|
535
|
|
|
$
|
8,122
|
|
|
$
|
|
|
|
$
|
179,506
|
|
Home equity loans and lines
|
|
|
39,272
|
|
|
|
368
|
|
|
|
921
|
|
|
|
|
|
|
|
40,561
|
|
Commercial real estate
|
|
|
258,673
|
|
|
|
1,049
|
|
|
|
10,127
|
|
|
|
|
|
|
|
269,849
|
|
Construction and land
|
|
|
80,588
|
|
|
|
211
|
|
|
|
2,472
|
|
|
|
|
|
|
|
83,271
|
|
Multi-family residential
|
|
|
12,505
|
|
|
|
1,825
|
|
|
|
2,248
|
|
|
|
|
|
|
|
16,578
|
|
Commercial and industrial
|
|
|
68,150
|
|
|
|
4,687
|
|
|
|
4,696
|
|
|
|
|
|
|
|
77,533
|
|
Consumer
|
|
|
39,833
|
|
|
|
48
|
|
|
|
277
|
|
|
|
|
|
|
|
40,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
669,870
|
|
|
$
|
8,723
|
|
|
$
|
28,863
|
|
|
$
|
|
|
|
$
|
707,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
114,278
|
|
|
$
|
690
|
|
|
$
|
1,774
|
|
|
$
|
|
|
|
$
|
116,742
|
|
Home equity loans and lines
|
|
|
26,870
|
|
|
|
56
|
|
|
|
67
|
|
|
|
|
|
|
|
26,993
|
|
Commercial real estate
|
|
|
176,410
|
|
|
|
4,951
|
|
|
|
4,443
|
|
|
|
|
|
|
|
185,804
|
|
Construction and land
|
|
|
66,441
|
|
|
|
267
|
|
|
|
167
|
|
|
|
|
|
|
|
66,875
|
|
Multi-family residential
|
|
|
7,030
|
|
|
|
899
|
|
|
|
529
|
|
|
|
|
|
|
|
8,458
|
|
Commercial and industrial
|
|
|
63,561
|
|
|
|
2,590
|
|
|
|
170
|
|
|
|
|
|
|
|
66,321
|
|
Consumer
|
|
|
33,280
|
|
|
|
60
|
|
|
|
1
|
|
|
|
|
|
|
|
33,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
487,870
|
|
|
$
|
9,513
|
|
|
$
|
7,151
|
|
|
$
|
|
|
|
$
|
504,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
43,673
|
|
|
$
|
952
|
|
|
$
|
5,318
|
|
|
$
|
|
|
|
$
|
49,943
|
|
Home equity loans and lines
|
|
|
9,402
|
|
|
|
82
|
|
|
|
639
|
|
|
|
|
|
|
|
10,123
|
|
Commercial real estate
|
|
|
37,137
|
|
|
|
782
|
|
|
|
6,213
|
|
|
|
|
|
|
|
44,132
|
|
Construction and land
|
|
|
3,072
|
|
|
|
106
|
|
|
|
472
|
|
|
|
|
|
|
|
3,650
|
|
Multi-family residential
|
|
|
8,756
|
|
|
|
264
|
|
|
|
798
|
|
|
|
|
|
|
|
9,818
|
|
Commercial and industrial
|
|
|
4,424
|
|
|
|
|
|
|
|
45
|
|
|
|
|
|
|
|
4,469
|
|
Consumer
|
|
|
695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-covered acquired loans
|
|
$
|
107,159
|
|
|
$
|
2,186
|
|
|
$
|
13,485
|
|
|
$
|
|
|
|
$
|
122,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
8,555
|
|
|
$
|
254
|
|
|
$
|
2,322
|
|
|
$
|
|
|
|
$
|
11,131
|
|
Home equity loans and lines
|
|
|
3,147
|
|
|
|
28
|
|
|
|
134
|
|
|
|
|
|
|
|
3,309
|
|
Commercial real estate
|
|
|
20,563
|
|
|
|
|
|
|
|
2,306
|
|
|
|
|
|
|
|
22,869
|
|
Construction and land
|
|
|
3,432
|
|
|
|
4
|
|
|
|
1,568
|
|
|
|
|
|
|
|
5,004
|
|
Multi-family residential
|
|
|
424
|
|
|
|
959
|
|
|
|
|
|
|
|
|
|
|
|
1,383
|
|
Commercial and industrial
|
|
|
577
|
|
|
|
5
|
|
|
|
881
|
|
|
|
|
|
|
|
1,463
|
|
Consumer
|
|
|
565
|
|
|
|
23
|
|
|
|
17
|
|
|
|
|
|
|
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total covered loans
|
|
$
|
37,263
|
|
|
$
|
1,273
|
|
|
$
|
7,228
|
|
|
$
|
|
|
|
$
|
45,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
166,506
|
|
|
$
|
1,896
|
|
|
$
|
9,414
|
|
|
$
|
|
|
|
$
|
177,816
|
|
Home equity loans and lines
|
|
|
39,419
|
|
|
|
166
|
|
|
|
840
|
|
|
|
|
|
|
|
40,425
|
|
Commercial real estate
|
|
|
234,110
|
|
|
|
5,733
|
|
|
|
12,962
|
|
|
|
|
|
|
|
252,805
|
|
Construction and land
|
|
|
72,945
|
|
|
|
377
|
|
|
|
2,207
|
|
|
|
|
|
|
|
75,529
|
|
Multi-family residential
|
|
|
16,210
|
|
|
|
2,122
|
|
|
|
1,327
|
|
|
|
|
|
|
|
19,659
|
|
Commercial and industrial
|
|
|
68,562
|
|
|
|
2,595
|
|
|
|
1,096
|
|
|
|
|
|
|
|
72,253
|
|
Consumer
|
|
|
34,540
|
|
|
|
83
|
|
|
|
18
|
|
|
|
|
|
|
|
34,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
632,292
|
|
|
$
|
12,972
|
|
|
$
|
27,864
|
|
|
$
|
|
|
|
$
|
673,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above classifications follow regulatory guidelines and can generally be described as follows:
|
|
Pass loans are of satisfactory quality.
|
|
|
Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the
collateral values.
|
|
|
Substandard loans have an existing specific and well defined weakness that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts.
Immediate corrective action is necessary.
|
|
|
Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable.
|
67
In addition, residential loans are classified using an inter-regulatory agency methodology that incorporates,
among other factors, the extent of delinquencies and loan-to-value ratios. These classifications were the most current available as of December 31, 2013 and were generally updated within the last three months. Loans acquired with deteriorated
credit quality are excluded from the schedule of credit quality indicators.
Age analysis of past due loans, as of the dates indicated is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,726
|
|
|
$
|
272
|
|
|
$
|
290
|
|
|
$
|
2,288
|
|
|
$
|
135,783
|
|
|
$
|
138,071
|
|
Home equity loans and lines
|
|
|
36
|
|
|
|
111
|
|
|
|
66
|
|
|
|
213
|
|
|
|
30,212
|
|
|
|
30,425
|
|
Commercial real estate
|
|
|
571
|
|
|
|
|
|
|
|
1,257
|
|
|
|
1,828
|
|
|
|
223,888
|
|
|
|
225,716
|
|
Construction and land
|
|
|
406
|
|
|
|
1
|
|
|
|
83
|
|
|
|
490
|
|
|
|
79,281
|
|
|
|
79,771
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,778
|
|
|
|
7,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
2,739
|
|
|
|
384
|
|
|
|
1,696
|
|
|
|
4,819
|
|
|
|
476,942
|
|
|
|
481,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
2,026
|
|
|
|
3,243
|
|
|
|
182
|
|
|
|
5,451
|
|
|
|
68,383
|
|
|
|
73,834
|
|
Consumer
|
|
|
514
|
|
|
|
262
|
|
|
|
277
|
|
|
|
1,053
|
|
|
|
38,608
|
|
|
|
39,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
2,540
|
|
|
|
3,505
|
|
|
|
459
|
|
|
|
6,504
|
|
|
|
106,991
|
|
|
|
113,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
5,279
|
|
|
$
|
3,889
|
|
|
$
|
2,155
|
|
|
$
|
11,323
|
|
|
$
|
583,933
|
|
|
$
|
595,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
884
|
|
|
$
|
658
|
|
|
$
|
3,457
|
|
|
$
|
4,999
|
|
|
$
|
32,085
|
|
|
$
|
37,084
|
|
Home equity loans and lines
|
|
|
50
|
|
|
|
|
|
|
|
174
|
|
|
|
224
|
|
|
|
7,574
|
|
|
|
7,798
|
|
Commercial real estate
|
|
|
239
|
|
|
|
241
|
|
|
|
2,753
|
|
|
|
3,233
|
|
|
|
29,712
|
|
|
|
32,945
|
|
Construction and land
|
|
|
8
|
|
|
|
|
|
|
|
1,052
|
|
|
|
1,060
|
|
|
|
1,036
|
|
|
|
2,096
|
|
Multi-family residential
|
|
|
879
|
|
|
|
|
|
|
|
987
|
|
|
|
1,866
|
|
|
|
5,812
|
|
|
|
7,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
2,060
|
|
|
|
899
|
|
|
|
8,423
|
|
|
|
11,382
|
|
|
|
76,219
|
|
|
|
87,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,428
|
|
|
|
2,428
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
497
|
|
|
|
497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,925
|
|
|
|
2,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-covered acquired loans
|
|
$
|
2,060
|
|
|
$
|
899
|
|
|
$
|
8,423
|
|
|
$
|
11,382
|
|
|
$
|
79,144
|
|
|
$
|
90,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
588
|
|
|
$
|
319
|
|
|
$
|
864
|
|
|
$
|
1,771
|
|
|
$
|
2,580
|
|
|
$
|
4,351
|
|
Home equity loans and lines
|
|
|
161
|
|
|
|
51
|
|
|
|
146
|
|
|
|
358
|
|
|
|
1,980
|
|
|
|
2,338
|
|
Commercial real estate
|
|
|
459
|
|
|
|
|
|
|
|
701
|
|
|
|
1,160
|
|
|
|
10,028
|
|
|
|
11,188
|
|
Construction and land
|
|
|
11
|
|
|
|
27
|
|
|
|
10
|
|
|
|
48
|
|
|
|
1,356
|
|
|
|
1,404
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,122
|
|
|
|
1,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,219
|
|
|
|
397
|
|
|
|
1,721
|
|
|
|
3,337
|
|
|
|
17,066
|
|
|
|
20,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
5
|
|
|
|
109
|
|
|
|
62
|
|
|
|
176
|
|
|
|
1,095
|
|
|
|
1,271
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
5
|
|
|
|
109
|
|
|
|
62
|
|
|
|
176
|
|
|
|
1,095
|
|
|
|
1,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total covered loans
|
|
$
|
1,224
|
|
|
$
|
506
|
|
|
$
|
1,783
|
|
|
$
|
3,513
|
|
|
$
|
18,161
|
|
|
$
|
21,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
3,198
|
|
|
$
|
1,249
|
|
|
$
|
4,611
|
|
|
$
|
9,058
|
|
|
$
|
170,448
|
|
|
$
|
179,506
|
|
Home equity loans and lines
|
|
|
247
|
|
|
|
162
|
|
|
|
386
|
|
|
|
795
|
|
|
|
39,766
|
|
|
|
40,561
|
|
Commercial real estate
|
|
|
1,269
|
|
|
|
241
|
|
|
|
4,711
|
|
|
|
6,221
|
|
|
|
263,628
|
|
|
|
269,849
|
|
Construction and land
|
|
|
425
|
|
|
|
28
|
|
|
|
1,145
|
|
|
|
1,598
|
|
|
|
81,673
|
|
|
|
83,271
|
|
Multi-family residential
|
|
|
879
|
|
|
|
|
|
|
|
987
|
|
|
|
1,866
|
|
|
|
14,712
|
|
|
|
16,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
6,018
|
|
|
|
1,680
|
|
|
|
11,840
|
|
|
|
19,538
|
|
|
|
570,227
|
|
|
|
589,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
2,031
|
|
|
|
3,352
|
|
|
|
244
|
|
|
|
5,627
|
|
|
|
71,906
|
|
|
|
77,533
|
|
Consumer
|
|
|
514
|
|
|
|
262
|
|
|
|
277
|
|
|
|
1,053
|
|
|
|
39,105
|
|
|
|
40,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
2,545
|
|
|
|
3,614
|
|
|
|
521
|
|
|
|
6,680
|
|
|
|
111,011
|
|
|
|
117,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
8,563
|
|
|
$
|
5,294
|
|
|
$
|
12,361
|
|
|
$
|
26,218
|
|
|
$
|
681,238
|
|
|
$
|
707,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
2,241
|
|
|
$
|
236
|
|
|
$
|
20
|
|
|
$
|
2,497
|
|
|
$
|
114,245
|
|
|
$
|
116,742
|
|
Home equity loans and lines
|
|
|
62
|
|
|
|
17
|
|
|
|
|
|
|
|
79
|
|
|
|
26,914
|
|
|
|
26,993
|
|
Commercial real estate
|
|
|
1,008
|
|
|
|
757
|
|
|
|
511
|
|
|
|
2,276
|
|
|
|
183,528
|
|
|
|
185,804
|
|
Construction and land
|
|
|
285
|
|
|
|
|
|
|
|
167
|
|
|
|
452
|
|
|
|
66,423
|
|
|
|
66,875
|
|
Multi-family residential
|
|
|
220
|
|
|
|
|
|
|
|
529
|
|
|
|
749
|
|
|
|
7,709
|
|
|
|
8,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
3,816
|
|
|
|
1,010
|
|
|
|
1,227
|
|
|
|
6,053
|
|
|
|
398,819
|
|
|
|
404,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
60
|
|
|
|
35
|
|
|
|
170
|
|
|
|
265
|
|
|
|
66,056
|
|
|
|
66,321
|
|
Consumer
|
|
|
479
|
|
|
|
449
|
|
|
|
1
|
|
|
|
929
|
|
|
|
32,412
|
|
|
|
33,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
539
|
|
|
|
484
|
|
|
|
171
|
|
|
|
1,194
|
|
|
|
98,468
|
|
|
|
99,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
4,355
|
|
|
$
|
1,494
|
|
|
$
|
1,398
|
|
|
$
|
7,247
|
|
|
$
|
497,287
|
|
|
$
|
504,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
726
|
|
|
$
|
240
|
|
|
$
|
1,489
|
|
|
$
|
2,455
|
|
|
$
|
47,488
|
|
|
$
|
49,943
|
|
Home equity loans and lines
|
|
|
54
|
|
|
|
98
|
|
|
|
147
|
|
|
|
299
|
|
|
|
9,824
|
|
|
|
10,123
|
|
Commercial real estate
|
|
|
348
|
|
|
|
92
|
|
|
|
2,907
|
|
|
|
3,347
|
|
|
|
40,785
|
|
|
|
44,132
|
|
Construction and land
|
|
|
577
|
|
|
|
|
|
|
|
366
|
|
|
|
943
|
|
|
|
2,707
|
|
|
|
3,650
|
|
Multi-family residential
|
|
|
311
|
|
|
|
|
|
|
|
678
|
|
|
|
989
|
|
|
|
8,829
|
|
|
|
9,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
2,016
|
|
|
|
430
|
|
|
|
5,587
|
|
|
|
8,033
|
|
|
|
109,633
|
|
|
|
117,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
48
|
|
|
|
65
|
|
|
|
|
|
|
|
113
|
|
|
|
4,356
|
|
|
|
4,469
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
695
|
|
|
|
695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
48
|
|
|
|
65
|
|
|
|
|
|
|
|
113
|
|
|
|
5,051
|
|
|
|
5,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-covered acquired loans
|
|
$
|
2,064
|
|
|
$
|
495
|
|
|
$
|
5,587
|
|
|
$
|
8,146
|
|
|
$
|
114,684
|
|
|
$
|
122,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,438
|
|
|
$
|
1,079
|
|
|
$
|
1,706
|
|
|
$
|
4,223
|
|
|
$
|
6,908
|
|
|
$
|
11,131
|
|
Home equity loans and lines
|
|
|
294
|
|
|
|
|
|
|
|
135
|
|
|
|
429
|
|
|
|
2,880
|
|
|
|
3,309
|
|
Commercial real estate
|
|
|
76
|
|
|
|
4
|
|
|
|
1,209
|
|
|
|
1,289
|
|
|
|
21,580
|
|
|
|
22,869
|
|
Construction and land
|
|
|
89
|
|
|
|
6
|
|
|
|
1,249
|
|
|
|
1,344
|
|
|
|
3,660
|
|
|
|
5,004
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,383
|
|
|
|
1,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,897
|
|
|
|
1,089
|
|
|
|
4,299
|
|
|
|
7,285
|
|
|
|
36,411
|
|
|
|
43,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
75
|
|
|
|
366
|
|
|
|
441
|
|
|
|
1,022
|
|
|
|
1,463
|
|
Consumer
|
|
|
44
|
|
|
|
4
|
|
|
|
13
|
|
|
|
61
|
|
|
|
544
|
|
|
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
44
|
|
|
|
79
|
|
|
|
379
|
|
|
|
502
|
|
|
|
1,566
|
|
|
|
2,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total covered loans
|
|
$
|
1,941
|
|
|
$
|
1,168
|
|
|
$
|
4,678
|
|
|
$
|
7,787
|
|
|
$
|
37,977
|
|
|
$
|
45,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
4,405
|
|
|
$
|
1,555
|
|
|
$
|
3,215
|
|
|
$
|
9,175
|
|
|
$
|
168,641
|
|
|
$
|
177,816
|
|
Home equity loans and lines
|
|
|
410
|
|
|
|
115
|
|
|
|
282
|
|
|
|
807
|
|
|
|
39,618
|
|
|
|
40,425
|
|
Commercial real estate
|
|
|
1,432
|
|
|
|
853
|
|
|
|
4,627
|
|
|
|
6,912
|
|
|
|
245,893
|
|
|
|
252,805
|
|
Construction and land
|
|
|
951
|
|
|
|
6
|
|
|
|
1,782
|
|
|
|
2,739
|
|
|
|
72,790
|
|
|
|
75,529
|
|
Multi-family residential
|
|
|
531
|
|
|
|
|
|
|
|
1,207
|
|
|
|
1,738
|
|
|
|
17,921
|
|
|
|
19,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
$
|
7,729
|
|
|
|
2,529
|
|
|
|
11,113
|
|
|
|
21,371
|
|
|
|
544,863
|
|
|
|
566,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
108
|
|
|
|
175
|
|
|
|
536
|
|
|
|
819
|
|
|
|
71,434
|
|
|
|
72,253
|
|
Consumer
|
|
|
523
|
|
|
|
453
|
|
|
|
14
|
|
|
|
990
|
|
|
|
33,651
|
|
|
|
34,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
631
|
|
|
|
628
|
|
|
|
550
|
|
|
|
1,809
|
|
|
|
105,085
|
|
|
|
106,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
8,360
|
|
|
$
|
3,157
|
|
|
$
|
11,663
|
|
|
$
|
23,180
|
|
|
$
|
649,948
|
|
|
$
|
673,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69
As of December 31, 2013 and 2012, the Company did not have any loans greater than 90 days past due which
were accruing interest.
The following is a summary of information pertaining to impaired loans, excluding acquired loans, as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2013
|
|
(dollars in thousands)
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
386
|
|
|
$
|
386
|
|
|
$
|
|
|
|
$
|
782
|
|
|
$
|
12
|
|
Home equity loans and lines
|
|
|
3
|
|
|
|
3
|
|
|
|
|
|
|
|
26
|
|
|
|
|
|
Commercial real estate
|
|
|
360
|
|
|
|
360
|
|
|
|
|
|
|
|
1,336
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
325
|
|
|
|
|
|
Commercial and industrial
|
|
|
584
|
|
|
|
584
|
|
|
|
|
|
|
|
743
|
|
|
|
17
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,333
|
|
|
$
|
1,333
|
|
|
$
|
|
|
|
$
|
3,292
|
|
|
$
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
126
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1,247
|
|
|
|
1,247
|
|
|
|
482
|
|
|
|
987
|
|
|
|
38
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,247
|
|
|
$
|
1,247
|
|
|
$
|
482
|
|
|
$
|
1,220
|
|
|
$
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
386
|
|
|
$
|
386
|
|
|
$
|
|
|
|
$
|
908
|
|
|
$
|
12
|
|
Home equity loans and lines
|
|
|
3
|
|
|
|
3
|
|
|
|
|
|
|
|
26
|
|
|
|
|
|
Commercial real estate
|
|
|
360
|
|
|
|
360
|
|
|
|
|
|
|
|
1,438
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
325
|
|
|
|
|
|
Commercial and industrial
|
|
|
1,831
|
|
|
|
1,831
|
|
|
|
482
|
|
|
|
1,730
|
|
|
|
55
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,580
|
|
|
$
|
2,580
|
|
|
$
|
482
|
|
|
$
|
4,512
|
|
|
$
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2012
|
|
(dollars in thousands)
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,117
|
|
|
$
|
1,117
|
|
|
$
|
|
|
|
$
|
956
|
|
|
$
|
62
|
|
Home equity loans and lines
|
|
|
56
|
|
|
|
56
|
|
|
|
|
|
|
|
71
|
|
|
|
2
|
|
Commercial real estate
|
|
|
2,985
|
|
|
|
2,985
|
|
|
|
|
|
|
|
3,451
|
|
|
|
100
|
|
Construction and land
|
|
|
60
|
|
|
|
60
|
|
|
|
|
|
|
|
631
|
|
|
|
|
|
Multi-family residential
|
|
|
528
|
|
|
|
528
|
|
|
|
|
|
|
|
528
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,746
|
|
|
$
|
4,746
|
|
|
$
|
|
|
|
$
|
5,685
|
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
347
|
|
|
$
|
347
|
|
|
$
|
49
|
|
|
$
|
445
|
|
|
$
|
23
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
Commercial real estate
|
|
|
443
|
|
|
|
443
|
|
|
|
134
|
|
|
|
296
|
|
|
|
30
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
950
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
790
|
|
|
$
|
790
|
|
|
$
|
183
|
|
|
$
|
1,723
|
|
|
$
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,464
|
|
|
$
|
1,464
|
|
|
$
|
49
|
|
|
$
|
1,401
|
|
|
$
|
85
|
|
Home equity loans and lines
|
|
|
56
|
|
|
|
56
|
|
|
|
|
|
|
|
74
|
|
|
|
2
|
|
Commercial real estate
|
|
|
3,428
|
|
|
|
3,428
|
|
|
|
134
|
|
|
|
3,747
|
|
|
|
130
|
|
Construction and land
|
|
|
60
|
|
|
|
60
|
|
|
|
|
|
|
|
1,581
|
|
|
|
|
|
Multi-family residential
|
|
|
528
|
|
|
|
528
|
|
|
|
|
|
|
|
528
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
5,536
|
|
|
$
|
5,536
|
|
|
$
|
183
|
|
|
$
|
7,408
|
|
|
$
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71
A summary of information pertaining to nonaccrual loans as of December 31, 2013 and 2012 is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
December 31, 2012
|
|
(dollars in thousands)
|
|
Originated
|
|
|
Non-
covered
Acquired
(1)
|
|
|
Covered
|
|
|
Total
|
|
|
Originated
|
|
|
Non-
covered
Acquired
(1)
|
|
|
Covered
|
|
|
Total
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
689
|
|
|
$
|
4,744
|
|
|
$
|
2,184
|
|
|
$
|
7,617
|
|
|
$
|
126
|
|
|
$
|
4,518
|
|
|
$
|
2,616
|
|
|
$
|
7,260
|
|
Home equity loans and lines
|
|
|
66
|
|
|
|
487
|
|
|
|
170
|
|
|
|
723
|
|
|
|
|
|
|
|
149
|
|
|
|
135
|
|
|
|
284
|
|
Commercial real estate
|
|
|
1,939
|
|
|
|
3,957
|
|
|
|
1,221
|
|
|
|
7,117
|
|
|
|
1,187
|
|
|
|
4,180
|
|
|
|
1,617
|
|
|
|
6,984
|
|
Construction and land
|
|
|
84
|
|
|
|
1,307
|
|
|
|
440
|
|
|
|
1,831
|
|
|
|
166
|
|
|
|
543
|
|
|
|
3,404
|
|
|
|
4,113
|
|
Multi-family residential
|
|
|
|
|
|
|
2,248
|
|
|
|
|
|
|
|
2,248
|
|
|
|
529
|
|
|
|
798
|
|
|
|
|
|
|
|
1,327
|
|
Commercial and industrial
|
|
|
3,881
|
|
|
|
|
|
|
|
954
|
|
|
|
4,835
|
|
|
|
170
|
|
|
|
|
|
|
|
1,746
|
|
|
|
1,916
|
|
Consumer
|
|
|
277
|
|
|
|
|
|
|
|
111
|
|
|
|
388
|
|
|
|
1
|
|
|
|
|
|
|
|
62
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
6,936
|
|
|
$
|
12,743
|
|
|
$
|
5,080
|
|
|
$
|
24,759
|
|
|
$
|
2,179
|
|
|
$
|
10,188
|
|
|
$
|
9,580
|
|
|
$
|
21,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Nonaccrual non-covered acquired loans accounted for under ASC 310-30 at the time of acquisition totaled $5.5 million and $3.4 million as of December 31, 2013 and 2012, respectively.
|
As of December 31, 2013, the Company was not committed to lend additional funds to any customer whose loan was classified as impaired.
As of December 31, 2013 and 2012, the Company had accrued interest receivable for loans of $2,553,000 and $2,708,000, respectively.
Troubled Debt Restructurings
During the course of
its lending operations, the Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and to minimize risk of loss. These concessions may include restructuring the terms of a customer
loan to alleviate the burden of the customers near-term cash requirements. Effective January 1, 2011, the Company adopted the provisions of ASU No. 2011-02,
Receivables
(Topic 310):
A Creditors Determination of
Whether a Restructuring is a Troubled Debt Restructuring
, which provides clarification on the determination of whether loan restructurings are considered troubled debt restructurings (TDRs). In accordance with the ASU, in order to be
considered a TDR, the Company must conclude that the restructuring of a loan to a borrower who is experiencing financial difficulties constitutes a concession. The Company defines a concession as a modification of existing terms granted
to a borrower for economic or legal reasons related to the borrowers financial difficulties that the Company would otherwise not consider. The concession is either granted through an agreement with the customer or is imposed by a court or by a
law. Concessions include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to:
|
|
a reduction of the stated interest rate for the remaining original life of the debt,
|
|
|
an extension of the maturity date or dates at an interest rate lower than the current market rate for new debt with similar risk characteristics,
|
|
|
a reduction of the face amount or maturity amount of the debt, or
|
|
|
a reduction of accrued interest receivable on the debt.
|
72
In its determination of whether the customer is experiencing financial difficulties, the Company considers
numerous indicators, including, but not limited to:
|
|
whether the customer is currently in default on its existing loan, or is in an economic position where it is probable the customer will be in default on its loan in the foreseeable future without a modification,
|
|
|
whether the customer has declared or is in the process of declaring bankruptcy,
|
|
|
whether there is substantial doubt about the customers ability to continue as a going concern,
|
|
|
whether, based on its projections of the customers current capabilities, the Company believes the customers future cash flows will be insufficient to service the debt, including interest, in accordance with
the contractual terms of the existing agreement for the foreseeable future, and
|
|
|
whether, without modification, the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for similar debt for a non-troubled debtor.
|
If the Company concludes that both a concession has been granted and the concession was granted to a customer experiencing financial difficulties, the Company
identifies the loan as a TDR. For purposes of the determination of an allowance for loan losses on TDRs, such loans are reviewed for specific impairment in accordance with the Companys allowance for loan loss methodology. If it is determined
that losses are probable on such TDRs, either because of delinquency or other credit quality indicators, the Company specifically allocates a portion of the allowance for loan losses to these loans.
Information about the Companys TDRs is presented in the following tables.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
(1)
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
296
|
|
|
$
|
296
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
275
|
|
|
|
|
|
|
|
111
|
|
|
|
386
|
|
Construction and land
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
147
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
422
|
|
|
|
|
|
|
|
407
|
|
|
|
829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
425
|
|
|
$
|
|
|
|
$
|
407
|
|
|
$
|
832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
586
|
|
|
$
|
586
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
1,046
|
|
|
|
1,046
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
676
|
|
|
|
676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
|
|
|
|
|
|
|
|
2,308
|
|
|
|
2,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
|
|
|
$
|
|
|
|
$
|
2,308
|
|
|
$
|
2,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
392
|
|
|
|
392
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
|
|
|
|
|
|
|
|
392
|
|
|
|
392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
830
|
|
|
|
830
|
|
Consumer
|
|
|
5
|
|
|
|
|
|
|
|
31
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
5
|
|
|
|
|
|
|
|
861
|
|
|
|
866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
5
|
|
|
$
|
|
|
|
$
|
1,253
|
|
|
$
|
1,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
882
|
|
|
$
|
882
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
275
|
|
|
|
|
|
|
|
1,157
|
|
|
|
1,432
|
|
Construction and land
|
|
|
147
|
|
|
|
|
|
|
|
392
|
|
|
|
539
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
676
|
|
|
|
676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
422
|
|
|
|
|
|
|
|
3,107
|
|
|
|
3,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
830
|
|
|
|
830
|
|
Consumer
|
|
|
8
|
|
|
|
|
|
|
|
31
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
8
|
|
|
|
|
|
|
|
861
|
|
|
|
869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
430
|
|
|
$
|
|
|
|
$
|
3,968
|
|
|
$
|
4,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
(1)
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
310
|
|
|
$
|
|
|
|
$
|
310
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
299
|
|
|
|
112
|
|
|
|
411
|
|
Construction and land
|
|
|
182
|
|
|
|
|
|
|
|
|
|
|
|
182
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
182
|
|
|
|
609
|
|
|
|
112
|
|
|
|
903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
Consumer
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
199
|
|
|
$
|
609
|
|
|
$
|
112
|
|
|
$
|
920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-covered acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
52
|
|
|
$
|
52
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
1,126
|
|
|
|
1,126
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
678
|
|
|
|
678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
|
|
|
|
|
|
|
|
1,856
|
|
|
|
1,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,856
|
|
|
$
|
1,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
289
|
|
|
|
|
|
|
|
|
|
|
|
289
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
289
|
|
|
|
|
|
|
|
|
|
|
|
289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
896
|
|
|
|
896
|
|
Consumer
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
17
|
|
|
|
|
|
|
|
896
|
|
|
|
913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
306
|
|
|
$
|
|
|
|
$
|
896
|
|
|
$
|
1,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
310
|
|
|
$
|
52
|
|
|
$
|
362
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
299
|
|
|
|
1,238
|
|
|
|
1,537
|
|
Construction and land
|
|
|
471
|
|
|
|
|
|
|
|
|
|
|
|
471
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
678
|
|
|
|
678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
471
|
|
|
|
609
|
|
|
|
1,968
|
|
|
|
3,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
5
|
|
|
|
|
|
|
|
896
|
|
|
|
901
|
|
Consumer
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
34
|
|
|
|
|
|
|
|
896
|
|
|
|
930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
505
|
|
|
$
|
609
|
|
|
$
|
2,864
|
|
|
$
|
3,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74
A summary of information pertaining to modified terms of loans, as of the date indicated is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013
|
|
|
As of December 31, 2012
|
|
(dollars in thousands)
|
|
Number
of
Contracts
|
|
|
Pre-
modification
Outstanding
Recorded
Investment
|
|
|
Post-
modification
Outstanding
Recorded
Investment
|
|
|
Number
of
Contracts
|
|
|
Pre-
modification
Outstanding
Recorded
Investment
|
|
|
Post-
modification
Outstanding
Recorded
Investment
|
|
Troubled debt restructurings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
|
5
|
|
|
$
|
1,036
|
|
|
$
|
882
|
|
|
|
2
|
|
|
$
|
365
|
|
|
$
|
361
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
3
|
|
|
|
1,452
|
|
|
|
1,432
|
|
|
|
3
|
|
|
|
1,556
|
|
|
|
1,537
|
|
Construction and land
|
|
|
4
|
|
|
|
1,299
|
|
|
|
539
|
|
|
|
3
|
|
|
|
936
|
|
|
|
471
|
|
Multi-family residential
|
|
|
1
|
|
|
|
784
|
|
|
|
676
|
|
|
|
1
|
|
|
|
787
|
|
|
|
679
|
|
Commercial and industrial
|
|
|
1
|
|
|
|
1,174
|
|
|
|
830
|
|
|
|
2
|
|
|
|
1,250
|
|
|
|
901
|
|
Other consumer
|
|
|
5
|
|
|
|
66
|
|
|
|
39
|
|
|
|
3
|
|
|
|
41
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
19
|
|
|
$
|
5,811
|
|
|
$
|
4,398
|
|
|
|
14
|
|
|
$
|
4,935
|
|
|
$
|
3,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
None of the other performing troubled debt restructurings as of December 31, 2013 has defaulted subsequent
to the restructuring through the date the financial statements were available to be issued. The Company restructured, as a TDR, four loans totaling $707,000 during 2013.
6. Loan Servicing
Mortgage loans sold to and serviced for others are not included in the accompanying statements of financial condition. The unpaid principal
balances of these loans as of December 31 of the years indicated are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Mortgage loans sold to Federal Home Loan Mortgage Corporation without recourse
|
|
$
|
13,325
|
|
|
$
|
16,755
|
|
|
$
|
23,832
|
|
Mortgage loans sold to Federal National Mortgage Association without recourse
|
|
|
106,597
|
|
|
|
116,352
|
|
|
|
112,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
119,922
|
|
|
$
|
133,107
|
|
|
$
|
136,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company records servicing assets related to mortgage loans sold and serviced at fair value and will amortize these
servicing assets over the period of estimated net servicing income associated with each loan. Management assesses servicing assets for potential impairment annually. Activity related to servicing assets for the years ended December 31, 2013,
2012 and 2011 is summarized as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Balance at the beginning of the year
|
|
$
|
611
|
|
|
$
|
545
|
|
|
$
|
145
|
|
Recognition of servicing assets from the transfer of financial assets
(1)
|
|
|
101
|
|
|
|
261
|
|
|
|
529
|
|
Amortization
|
|
|
(196
|
)
|
|
|
(195
|
)
|
|
|
(129
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
516
|
|
|
$
|
611
|
|
|
$
|
545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, end of period
|
|
$
|
1,009
|
|
|
$
|
1,995
|
|
|
$
|
1,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Includes $404,000 acquired in 2011 from the acquisition of GSFC.
|
Custodial and escrow account balances
maintained in connection with the foregoing loan servicing arrangements were $1,064,000 and $1,313,000 as of December 31, 2013 and 2012, respectively.
7. Office Properties and Equipment
Office properties and equipment consisted of the following as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
Land
|
|
$
|
10,330
|
|
|
$
|
10,330
|
|
Buildings and improvements
|
|
|
23,170
|
|
|
|
22,809
|
|
Furniture and equipment
|
|
|
10,419
|
|
|
|
9,433
|
|
|
|
|
|
|
|
|
|
|
Total office properties and equipment
|
|
|
43,919
|
|
|
|
42,572
|
|
Less accumulated depreciation
|
|
|
13,216
|
|
|
|
11,795
|
|
|
|
|
|
|
|
|
|
|
Total office properties and equipment, net
|
|
$
|
30,703
|
|
|
$
|
30,777
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $1,421,000, $1,452,000 and $1,299,000,
respectively.
76
8. Goodwill and Intangibles
The carrying amount of goodwill was $856,000 as of December 31, 2013 and 2012.
A summary of core deposit intangible assets as of December 31 of the years indicated follows.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
Gross carrying amount
|
|
$
|
1,385
|
|
|
$
|
1,762
|
|
Core deposit intangibles acquired during the year
|
|
|
|
|
|
|
|
|
Less amortization
|
|
|
(332
|
)
|
|
|
(377
|
)
|
|
|
|
|
|
|
|
|
|
Total core deposit intangible asset
|
|
$
|
1,053
|
|
|
$
|
1,385
|
|
|
|
|
|
|
|
|
|
|
Amortization expense on the core deposit intangible assets for the years ended December 31, 2013, 2012 and 2011 was
$332,000, $377,000 and $318,000, respectively.
The carrying amount of the mortgage servicing asset as of December 31, 2013, 2012 and 2011 was
$516,000, $611,000 and $545,000, respectively.
9. Deposits
Deposits consisted of the following major classifications as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
Demand deposit accounts
|
|
$
|
174,475
|
|
|
$
|
152,462
|
|
Savings
|
|
|
56,694
|
|
|
|
51,515
|
|
Money market accounts
|
|
|
192,303
|
|
|
|
191,191
|
|
NOW accounts
|
|
|
125,391
|
|
|
|
123,294
|
|
Certificates of deposit
|
|
|
192,449
|
|
|
|
252,967
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
|
$
|
741,312
|
|
|
$
|
771,429
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013, the scheduled maturities of certificates of deposit are as follows.
|
|
|
|
|
(dollars in thousands)
|
|
Amount
|
|
2014
|
|
$
|
115,188
|
|
2015
|
|
|
49,692
|
|
2016
|
|
|
7,618
|
|
2017
|
|
|
4,529
|
|
2018
|
|
|
1,164
|
|
Thereafter
|
|
|
14,258
|
|
|
|
|
|
|
Total certificates of deposit
|
|
$
|
192,449
|
|
|
|
|
|
|
As of December 31, 2013 and 2012, the aggregate amount of certificates of deposit with balances of $100,000 or more was
$83,863,000 and $119,766,000, respectively.
10. Short-term FHLB Advances
As of December 31, 2013, short-term FHLB advances totaled $87,000,000, compared to $10,000,000 as of December 31, 2012. For the
years ended December 31, 2013 and 2012, the average volume of short-term FHLB advances carried by the Company was $30,110,000 and $26,467,000, respectively.
Collateral for short and long-term FHLB advances is secured through a blanket lien evidenced by the Banks pledge of first mortgage collateral, demand
deposit accounts, capital stock and certain other assets pursuant to the
77
Advances, Collateral Pledge and Security Agreement. Under this collateral pledge agreement, the Bank must meet all statutory and regulatory capital standards and must meet all FHLB
credit underwriting standards. Management believes that the Bank was in compliance with all such requirements as of December 31, 2013 and 2012.
As
of December 31, 2013 and 2012, the Bank had $262,345,000 and $320,892,000, respectively, of additional FHLB advances available.
11. Long-term FHLB Advances
As of December 31, 2013 and 2012, long-term FHLB advances totaled $10,000,000 and $36,257,000, respectively. The Company has one fixed
rate long-term advance outstanding as of December 31, 2013 in the amount of $10,000,000. It matures in 2017 with a rate of 3.22%.
12. Income Taxes
The Company files federal income tax returns on a calendar year basis. Income tax (benefit) expense for the years indicated is summarized as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Current
|
|
$
|
5,001
|
|
|
$
|
4,281
|
|
|
$
|
988
|
|
Deferred
|
|
|
(1,265
|
)
|
|
|
324
|
|
|
|
1,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax expense
|
|
$
|
3,736
|
|
|
$
|
4,605
|
|
|
$
|
2,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the Companys net deferred tax asset as of December 31 of the years indicated are as follows:
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
Deferred tax assets (liabilities):
|
|
|
|
|
|
|
|
|
FHLB stock dividends
|
|
$
|
(7
|
)
|
|
$
|
10
|
|
Provision for loan losses
|
|
|
2,421
|
|
|
|
1,809
|
|
Accumulated depreciation
|
|
|
(1,166
|
)
|
|
|
(1,204
|
)
|
Intangible assets
|
|
|
311
|
|
|
|
203
|
|
Unrealized gain on securities available for sale
|
|
|
(105
|
)
|
|
|
(1,668
|
)
|
Discount on purchased loans
|
|
|
(372
|
)
|
|
|
(435
|
)
|
Borrowings
|
|
|
|
|
|
|
67
|
|
Premium on purchased deposits
|
|
|
9
|
|
|
|
34
|
|
Mortgage servicing rights
|
|
|
(181
|
)
|
|
|
(208
|
)
|
Deferred compensation
|
|
|
763
|
|
|
|
284
|
|
Stock-based compensation
|
|
|
790
|
|
|
|
623
|
|
Other
|
|
|
1,060
|
|
|
|
1,116
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset
|
|
$
|
3,523
|
|
|
$
|
631
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2013, 2012 and 2011, the provision for federal income taxes differed from the amount
computed by applying the federal income tax statutory rate of 35% for the year 2013 and 34% for previous years on income from operations as indicated in the following analysis:
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Federal tax based on statutory rate
|
|
$
|
3,857
|
|
|
$
|
4,686
|
|
|
$
|
2,637
|
|
State tax based on statutory rate
|
|
|
10
|
|
|
|
13
|
|
|
|
16
|
|
(Decrease) increase resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of tax-exempt income
|
|
|
(294
|
)
|
|
|
(160
|
)
|
|
|
(76
|
)
|
Other
|
|
|
163
|
|
|
|
66
|
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
$
|
3,736
|
|
|
$
|
4,605
|
|
|
$
|
2,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
33.9
|
%
|
|
|
33.4
|
%
|
|
|
34.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78
Retained earnings as of December 31, 2013, 2012 and 2011, included $5,837,000 for which no deferred federal
income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions for tax purposes only. Reductions of amounts so allocated for purposes other than bad debt losses would create income for tax purposes
only, which would be subject to the then-current federal statutory income tax rate. The unrecorded deferred income tax liability on the above amount was $1,985,000 as of December 31, 2013, 2012 and 2011. Current accounting standards do not
require the accrual of this deferred tax amount to be recorded unless it is probable that the reserve (for tax purposes) will be significantly depleted by loan losses deductible for tax purposes in the future. Based on current estimates of losses
within the Companys loan portfolio, accrual of the deferred tax liability associated with this reserve was not required as of December 31, 2013, 2012 and 2011.
13. Commitments and Contingencies
Standby letters of credit represent commitments by the Bank to meet the obligations of certain customers if called upon. The Bank normally
secures its outstanding standby letters of credit with deposits from the customer. Additionally, in the normal course of business, there were various other commitments and contingent liabilities which are not reflected in the financial statements.
Loan commitments are single-purpose commitments to lend which will be funded and reduced according to specified repayment schedules. Most of these commitments have maturities of less than one year. The following table summarizes our outstanding
commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and the undisbursed portion of construction loans as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
Standby letters of credit
|
|
$
|
1,253
|
|
|
$
|
2,907
|
|
Available portion of lines of credit
|
|
|
60,755
|
|
|
|
59,124
|
|
Undisbursed portion of loans in process
|
|
|
72,333
|
|
|
|
47,678
|
|
Commitments to originate loans
|
|
|
48,854
|
|
|
|
77,857
|
|
The Bank uses the same credit policies in making commitments as it does for on-balance-sheet instruments. The Bank evaluates
each customers creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on managements credit evaluation of the customer. Collateral held varies but
may include certificates of deposit, property, plant and equipment and income-producing properties. There are no commitments which present an unusual risk to the Bank, and no material losses are anticipated as a result of these transactions.
14. Regulatory Matters
The Bank is subject to regulatory capital requirements administered by the OCC. Failure to meet minimum capital requirements can initiate
certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Companys financial statements. Under capital adequacy guidelines and the regulatory framework for
prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Banks capital
amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Dividends
paid by the Bank are the primary source of funds available to the Company. Banking regulations limit the amount of dividends that may be paid without prior approval of the regulatory authorities. These restrictions for the Bank are based on the
level of regulatory classified assets, prior earnings, and the ratio of equity capital to total assets. The Bank may not declare dividends without prior regulatory approval.
79
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum
amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined) to average assets and risk-weighted assets (as defined). Management believes, as of December 31, 2013, that the Bank met all capital adequacy
requirements to which it was subject.
As of December 31, 2013, the most recent notification from the OCC categorized the Bank as well
capitalized under the OCC regulatory classification framework. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and tangible capital ratios as set forth in
the following table. There are no conditions or events since that notification that management believes have changed the Banks category.
The
Banks actual capital amounts and ratios are also presented in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Actual
|
|
|
Minimum
For Capital
Adequacy Purposes
|
|
|
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital:
|
|
$
|
139,182
|
|
|
|
20.84
|
%
|
|
$
|
26,712
|
|
|
|
4.0
|
%
|
|
$
|
40,068
|
|
|
|
6.0
|
%
|
Total risk-based capital:
|
|
|
146,100
|
|
|
|
21.88
|
%
|
|
|
53,424
|
|
|
|
8.0
|
%
|
|
|
66,780
|
|
|
|
10.0
|
%
|
Tier 1 leverage capital:
|
|
|
139,182
|
|
|
|
14.17
|
%
|
|
|
14,730
|
|
|
|
4.0
|
%
|
|
|
49,100
|
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital:
|
|
$
|
130,002
|
|
|
|
20.97
|
%
|
|
$
|
24,796
|
|
|
|
4.0
|
%
|
|
$
|
37,195
|
|
|
|
6.0
|
%
|
Total risk-based capital:
|
|
|
135,322
|
|
|
|
21.83
|
%
|
|
|
49,593
|
|
|
|
8.0
|
%
|
|
|
61,991
|
|
|
|
10.0
|
%
|
Tier 1 leverage capital:
|
|
|
130,002
|
|
|
|
13.67
|
%
|
|
|
38,050
|
|
|
|
4.0
|
%
|
|
|
47,562
|
|
|
|
5.0
|
%
|
15. Benefit Plans
401(k) Match and Profit Sharing Plan
The Companys 401(k) defined contribution plan allows its participants to contribute up to 75% of their pretax earnings on a tax-deferred basis up to the
statutory limit, and the Company contributes a matching contribution on behalf of plan participants limited to 4% of the employees salaries. For the years ended December 31, 2013, 2012 and 2011, the Company made contributions of $335,000,
$386,000 and $358,000, respectively, in connection with the plans, which is included in compensation and benefits expense in the accompanying statements of income.
Employee Stock Ownership Plan
In 2008, the Company
established an employee stock ownership plan (ESOP) for the benefit of all eligible employees of the Company. The leveraged ESOP is accounted for in accordance with the requirements of ASC 718,
Compensation Stock
Compensation
.
Employees of the Bank who have been employed for a six-month period and who have attained age 21 are eligible to participate in the
ESOP. It is anticipated that contributions will be made to the plan in amounts necessary to amortize the debt to the Company over a period of 20 years.
Under ASC 718, unearned ESOP shares are not considered outstanding and are shown as a reduction of shareholders equity as unearned compensation.
Dividends on unallocated ESOP shares are considered to be compensation expense. The Company recognizes compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the
fair value of the Companys ESOP shares differ from the cost of such shares, the differential is credited to shareholders equity. The Company receives a tax deduction equal to the cost of the shares released. As the loan is internally
leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a Company liability.
80
Compensation cost related to the ESOP was $653,000, $612,000 and $520,000 for the years ended December 31,
2013, 2012 and 2011, respectively. The fair value of the unearned ESOP shares, using the closing quoted market price per share as of year-end, was approximately $9,928,000 and $10,264,000 as of December 31, 2013 and 2012, respectively. A
summary of the ESOP share allocation as of December 31, 2013 follows.
|
|
|
|
|
Shares allocated, beginning of year
|
|
|
143,578
|
|
Shares allocated during the year
|
|
|
35,710
|
|
Shares distributed during the year
|
|
|
(7,341
|
)
|
|
|
|
|
|
Allocated shares held by ESOP trust as of year end
|
|
|
171,947
|
|
Unallocated shares
|
|
|
526,683
|
|
|
|
|
|
|
Total ESOP shares
|
|
|
698,630
|
|
|
|
|
|
|
Salary Continuation Agreements
As a supplement to its 401(k) retirement plan, the Bank has entered into nonqualified salary continuation agreements with two executive officers of the Bank.
Under his salary continuation agreement, the Chief Executive Officer (CEO) will be entitled to a stated annual benefit for a period of ten years upon retirement from the Bank after attaining age 62. Benefits under the agreement vest over
ten years, with 50% of this benefit having vested in 2007. In the event of early retirement, the Bank shall pay the CEO his vested benefits in 120 equal monthly installments upon his attaining age 62. Upon death during active service, the Bank shall
distribute to the executives beneficiary an amount equal to two times his fully vested normal retirement benefit, payable in monthly installments over five years.
In the event of a separation from service within 24 months following a change in control but prior to normal retirement age, the Bank shall distribute to the
CEO his fully vested annual benefit in 12 equal monthly installments for ten years beginning the earlier of 24 months after separation from service or age 62. If separation from service occurs more than 24 months following a change in control, the
annual benefit shall be distributed beginning at age 62.
The Banks nonqualified salary continuation agreement with its Chief Credit Officer
provides that the executive will be entitled to a stated annual benefit for a period of ten years upon retirement from the Bank after attaining age 65, distributed monthly. In the event of early retirement, the Bank shall pay the executive his
vested benefits in 120 equal monthly installments upon attaining age 65. Upon death during active service, the Bank shall distribute the fully vested normal retirement benefit to the executives beneficiary in 120 monthly installments. In the
event of a separation from service within 24 months following a change in control but prior to normal retirement age, the Bank shall distribute to the executive the vested portion of the annual benefit in a lump sum on the first day of the month
following the separation from service. Benefits are subject to a six-month delay to the extent required by applicable law. The Company had an outstanding liability totaling $958,000 and $835,000 as of December 31, 2013 and 2012, respectively,
in connection with the agreements.
16. Stock-based Payment Arrangements
The Companys shareholders approved the 2009 Stock Option Plan (SOP) and the 2009 Recognition and Retention Plan
(RRP) on May 12, 2009 to provide incentives and awards for directors, officers and other key employees of the Company and its subsidiary. These plans are administered by a committee appointed by the Board of Directors, which selects
persons eligible to receive awards and determines the number of shares and/or options subject to each award, the terms, conditions and other provisions of the awards. In accordance with ASC 718, the Company adopted a fair value based method of
accounting for employee stock compensation plans, whereby compensation cost is measured as of the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period.
81
Stock Option Plan
The Company issues stock options under the SOP to directors, officers and other key employees. The option exercise price cannot be less than the fair value of
the underlying common stock as of the date of the option grant and the maximum option term cannot exceed ten years. The stock options granted were issued with vesting periods of five years. The maximum number of shares issuable under the SOP is
892,687, subject to adjustment. As of December 31, 2013, options to acquire 850,020 shares were outstanding under the SOP.
The fair value of each
option granted is estimated on the grant date using the Black-Scholes option pricing model. This model requires management to make certain assumptions, including the expected life of the option, the risk-free rate of interest, the expected
volatility and the expected dividend yield. The following assumptions were made in estimating 2013 fair values:
|
|
|
|
|
Expected dividends
|
|
|
1.5
|
%
|
Expected volatility
|
|
|
32.42
|
%
|
Risk-free interest rate
|
|
|
1.7
|
%
|
Expected term (in years)
|
|
|
6.5
|
|
As of December 31, 2013, there was $497,000 of unrecognized compensation cost related to stock options which is expected
to be recognized over a period of 2.2 years.
For the years ended December 31, 2013, 2012 and 2011, the Company recognized $681,000, $663,000 and
$626,000, respectively, in compensation cost related to stock options, which is included in compensation and benefits expense in the accompanying consolidated statements of income.
The following table represents stock option activity for the year ended December 31, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
Number of
Options
|
|
|
Weighted-
Average
Exercise
Price
|
|
|
Weighted-
Average
Grant Date
Fair Value
|
|
|
Weighted-
Average
Remaining
Contractual
Term
(Years)
|
|
|
Aggregate
Intrinsic Value
|
|
Outstanding as of January 1, 2013
|
|
|
850,520
|
|
|
$
|
11.84
|
|
|
$
|
3.89
|
|
|
|
|
|
|
|
|
|
Granted
|
|
|
17,500
|
|
|
|
17.67
|
|
|
|
5.18
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
(7,900
|
)
|
|
|
11.53
|
|
|
|
3.79
|
|
|
|
|
|
|
|
|
|
Forfeited
|
|
|
(10,100
|
)
|
|
|
15.25
|
|
|
|
5.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding as of December 31, 2013
|
|
|
850,020
|
|
|
$
|
11.92
|
|
|
$
|
3.90
|
|
|
|
5.7
|
|
|
$
|
5,889,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable as of December 31, 2013
|
|
|
631,484
|
|
|
$
|
11.58
|
|
|
$
|
3.79
|
|
|
|
5.4
|
|
|
$
|
4,593,000
|
|
Recognition and Retention Plan
The Company issues restricted stock under the RRP to directors, officers and other key employees. A total of 357,075 shares of the Companys outstanding
common stock, or 4% of total shares outstanding at the time the RRP was implemented, were approved for restricted stock awards under the RRP. During 2009, the Company purchased in the open market all shares required to fund the RRP at an average
cost of $11.81 per share. As of December 31, 2013, the cost of such shares held by the RRP totaled $1,018,000, which is included in the Companys unallocated common stock held by the RRP in the consolidated statements of financial
condition.
The RRP allows for the issuance of restricted stock awards that may not be sold or otherwise transferred until certain restrictions have
lapsed. The holders of the restricted stock provide instructions to the trustees of the RRP as to how their restricted stock shall be voted. The unearned compensation related to these awards is amortized to compensation expense over the five-year
vesting period. The total share-based compensation expense for these awards is determined based on the market price of the Companys common stock as of the date of grant applied to the total number of shares granted and is amortized over the
vesting period. As of December 31, 2013, unearned share-based compensation associated with these awards totaled $493,000.
82
For the years ended December 31, 2013, 2012 and 2011, the Company recognized $793,000, $802,000 and
$771,000, respectively, in compensation cost related to restricted stock grants, which is included in compensation and benefits expense in the accompanying consolidated statements of income.
The following table represents unvested restricted stock activity in the RRP for the year ended December 31, 2013.
|
|
|
|
|
|
|
|
|
|
|
Number of
Shares
|
|
|
Weighted-
Average
Grant Date
Fair Value
|
|
Balance, beginning of year
|
|
|
144,840
|
|
|
$
|
11.83
|
|
Granted
|
|
|
8,000
|
|
|
|
17.54
|
|
Forfeited
|
|
|
(3,900
|
)
|
|
|
15.50
|
|
Released
|
|
|
(68,920
|
)
|
|
|
11.63
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
|
80,020
|
|
|
$
|
12.39
|
|
|
|
|
|
|
|
|
|
|
17. Earnings Per Share
Earnings per common share was computed based on the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
(in thousands, except per share data)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income applicable to common shares
|
|
$
|
7,294
|
|
|
$
|
9,190
|
|
|
$
|
5,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
6,591
|
|
|
|
6,912
|
|
|
|
7,106
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock
|
|
|
317
|
|
|
|
271
|
|
|
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - assuming dilution
|
|
|
6,908
|
|
|
|
7,183
|
|
|
|
7,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
$
|
1.11
|
|
|
$
|
1.33
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - assuming dilution
|
|
$
|
1.06
|
|
|
$
|
1.28
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options on 850,020, 850,520 and 833,180 shares of common stock were not included in computing diluted earnings per share for
the years ended December 31, 2013, 2012 and 2011, respectively, because the effect of these shares were anti-dilutive.
18. Related Party Transactions
Certain directors and officers of the Company are customers of the Company. Loan transactions with directors, officers and employees are
made on the same terms as those prevailing at the time for comparable loans to other persons. Loans outstanding to directors, executive officers and their affiliates totaled $7,277,000 and $7,858,000 as of December 31, 2013 and 2012,
respectively. A summary of related party loan activity during 2013 follows.
|
|
|
|
|
(dollars in thousands)
|
|
|
|
Balance, beginning of year
|
|
$
|
7,858
|
|
New loans
|
|
|
1,700
|
|
Repayments, net
|
|
|
(2,281
|
)
|
|
|
|
|
|
Balance, end of year
|
|
$
|
7,277
|
|
|
|
|
|
|
None of the related party loans were identified as impaired or exceeded 5% of shareholders equity for the years ended
2013 or 2012.
Related party deposits totaled $12,155,000 and $11,552,000 as of December 31, 2013 and 2012, respectively.
83
19. Fair Value Disclosures
The Company groups its financial assets and liabilities measured at fair value in three levels as required by ASC 820,
Fair Value
Measurements and Disclosures
. Under this guidance, fair value should be based on the assumptions market participants would use when pricing the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop
those assumptions and measure fair value. The hierarchy requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
|
|
Level 1 Quoted prices in active markets for identical assets or liabilities.
|
|
|
Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and
liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
|
|
Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted
cash flow methodologies and similar techniques that use significant unobservable inputs.
|
An assets or liabilitys categorization
within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Management reviews and updates the fair value hierarchy classifications of the Companys assets and liabilities on a
quarterly basis.
Recurring Basis
Investment Securities Available for Sale
Fair values of
investment securities available for sale are primarily measured using information from a third-party pricing service. This pricing service provides pricing information by utilizing evaluated pricing models supported with market data
information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data from market research publications. If quoted prices are available in an
active market, investment securities are classified as Level 1 measurements. If quoted prices are not available in an active market, fair values were estimated primarily by the use of pricing models. Level 2 investment securities
were primarily comprised of mortgage-backed securities issued by government agencies and U.S. government-sponsored enterprises. In certain cases, where there is limited or less transparent information provided by the Companys third-party
pricing service, fair value is estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. Investment securities are classified within Level 3 when little or no market activity supports the fair
value.
Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a
significant decrease in the volume and frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Investment securities that are deemed to have been trading
in illiquid or inactive markets may require the use of significant unobservable inputs. For example, management may use quoted prices for similar investment securities in the absence of a liquid and active market for the investment securities
being valued. As of December 31, 2013, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets.
84
The following tables present the balances of assets and liabilities measured on a recurring basis as of
December 31, 2013 and 2012 aggregated by the level in the fair value hierarchy in which these measurements fall.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
December 31, 2013
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
96,785
|
|
|
$
|
|
|
|
$
|
96,785
|
|
|
$
|
|
|
Non-U.S. agency mortgage-backed
|
|
|
9,749
|
|
|
|
|
|
|
|
9,749
|
|
|
|
|
|
Municipal bonds
|
|
|
19,799
|
|
|
|
|
|
|
|
19,799
|
|
|
|
|
|
U.S. government agency
|
|
|
23,299
|
|
|
|
|
|
|
|
23,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
149,632
|
|
|
$
|
|
|
|
$
|
149,632
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
December 31, 2012
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
102,513
|
|
|
$
|
|
|
|
$
|
102,513
|
|
|
$
|
|
|
Non-U.S. agency mortgage-backed
|
|
|
12,668
|
|
|
|
|
|
|
|
12,668
|
|
|
|
|
|
Municipal bonds
|
|
|
17,585
|
|
|
|
|
|
|
|
17,585
|
|
|
|
|
|
U.S. government agency
|
|
|
24,490
|
|
|
|
|
|
|
|
24,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
157,256
|
|
|
$
|
|
|
|
$
|
157,256
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company did not record any liabilities at fair value for which measurement of the fair value was made on a recurring
basis.
Nonrecurring Basis
In accordance with
the provisions of ASC 310,
Receivables
, the Company records loans considered impaired at their fair value. A loan is considered impaired if it is probable the Company will be unable to collect all amounts due according to the contractual
terms of the loan agreement. Fair value is measured at the fair value of the collateral for collateral-dependent loans. For non-collateral-dependent loans, fair value is measured by present valuing expected future cash flows. Impaired loans are
classified as Level 3 assets when measured using appraisals from external parties of the collateral less any prior liens. Repossessed assets are initially recorded at fair value less estimated costs to sell. The fair value of repossessed assets is
based on property appraisals and an analysis of similar properties available. As such, the Company classifies repossessed assets as Level 3 assets.
Acquired loans with deteriorated credit quality, the FDIC loss sharing receivable, and acquired interest-bearing deposit liabilities are measured on a
nonrecurring basis using significant unobservable inputs (Level 3).
85
The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring
basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
December 31, 2013
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans with deteriorated credit quality
|
|
$
|
26,220
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
26,220
|
|
Acquired loans without deteriorated credit quality
|
|
|
85,732
|
|
|
|
|
|
|
|
|
|
|
|
85,732
|
|
Impaired loans excluding acquired loans
|
|
|
2,099
|
|
|
|
|
|
|
|
|
|
|
|
2,099
|
|
Repossessed assets
|
|
|
4,566
|
|
|
|
|
|
|
|
|
|
|
|
4,566
|
|
FDIC loss sharing receivable
|
|
|
12,698
|
|
|
|
|
|
|
|
|
|
|
|
12,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
131,315
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
131,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits acquired through business combinations
|
|
$
|
39,010
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
39,010
|
|
FHLB advances acquired through business combinations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
39,010
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
39,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
December 31, 2012
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Acquired loans with deteriorated credit quality
|
|
$
|
50,854
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
50,854
|
|
Acquired loans without deteriorated credit quality
|
|
|
117,536
|
|
|
|
|
|
|
|
|
|
|
|
117,536
|
|
Impaired loans excluding acquired loans
|
|
|
5,353
|
|
|
|
|
|
|
|
|
|
|
|
5,353
|
|
Repossessed assets
|
|
|
6,454
|
|
|
|
|
|
|
|
|
|
|
|
6,454
|
|
FDIC loss sharing receivable
|
|
|
15,546
|
|
|
|
|
|
|
|
|
|
|
|
15,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
195,743
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
195,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Deposits acquired through business combinations
|
|
$
|
81,948
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
81,948
|
|
FHLB advances acquired through business combinations
|
|
|
18,257
|
|
|
|
|
|
|
|
|
|
|
|
18,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
100,205
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
100,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 820,
Fair Value Measurements and Disclosures
, requires the disclosure of each class of financial instruments for
which it is practicable to estimate. The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices.
However, in many instances, there are no quoted market prices for the Companys various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation
techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.
ASC 820 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.
86
Fair value estimates are made at a specific point in time, based on relevant market information and information
about the financial statement element. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the
estimates.
Fair value estimates included herein are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the
value of anticipated future business and the fair value of assets and liabilities that are not required to be recorded or disclosed at fair value like premises and equipment. In addition, the tax ramifications related to the realization of the
unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
The following methods
and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
The
carrying value of cash and cash equivalents and interest-bearing deposits in banks approximate their fair value.
The fair value for investment securities
is determined from quoted market prices when available. If a quoted market price is not available, fair value is estimated using third party pricing services or quoted market prices of securities with similar characteristics.
The carrying value of mortgage loans held for sale approximates its fair value.
The fair value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with
similar credit ratings and for the same remaining maturity.
The cash surrender value of bank-owned life insurance (BOLI) approximates its
fair value.
The fair value of the FDIC loss sharing receivable is determined by discounting projected cash flows from loss sharing agreements based on
expected reimbursements for losses at the applicable loss sharing percentages based on the terms of the loss sharing agreements.
The fair value of demand
deposits, savings and interest-bearing demand deposits is the amount payable on demand. The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of
similar remaining maturities.
The carrying amount of the FHLB advances is estimated using the rates currently offered for advances of similar maturities.
The fair value of off-balance sheet financial instruments as of December 31, 2013 and 2012 was immaterial.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2013
|
|
|
|
Carrying
Amount
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
32,639
|
|
|
$
|
32,639
|
|
|
$
|
32,639
|
|
|
$
|
|
|
|
$
|
|
|
Interest-bearing deposits in banks
|
|
|
2,940
|
|
|
|
2,940
|
|
|
|
2,940
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale
|
|
|
149,632
|
|
|
|
149,632
|
|
|
|
|
|
|
|
149,632
|
|
|
|
|
|
Investment securities held to maturity
|
|
|
9,405
|
|
|
|
9,275
|
|
|
|
|
|
|
|
9,275
|
|
|
|
|
|
Mortgage loans held for sale
|
|
|
1,951
|
|
|
|
1,951
|
|
|
|
|
|
|
|
1,951
|
|
|
|
|
|
Loans, net
|
|
|
700,538
|
|
|
|
708,863
|
|
|
|
|
|
|
|
|
|
|
|
708,863
|
|
Cash surrender value of BOLI
|
|
|
17,751
|
|
|
|
17,751
|
|
|
|
17,751
|
|
|
|
|
|
|
|
|
|
FDIC loss sharing receivable
|
|
|
12,698
|
|
|
|
12,698
|
|
|
|
|
|
|
|
|
|
|
|
12,698
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
741,312
|
|
|
$
|
702,168
|
|
|
$
|
|
|
|
$
|
663,158
|
|
|
$
|
39,010
|
|
Short-term FHLB advances
|
|
|
87,000
|
|
|
|
87,000
|
|
|
|
87,000
|
|
|
|
|
|
|
|
|
|
Long-term FHLB advances
|
|
|
10,000
|
|
|
|
10,613
|
|
|
|
|
|
|
|
10,613
|
|
|
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2012
|
|
(dollars in thousands)
|
|
Carrying
Amount
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
39,539
|
|
|
$
|
39,539
|
|
|
$
|
39,529
|
|
|
$
|
|
|
|
$
|
|
|
Interest-bearing deposits in banks
|
|
|
3,529
|
|
|
|
3,529
|
|
|
|
3,529
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale
|
|
|
157,256
|
|
|
|
157,256
|
|
|
|
|
|
|
|
157,256
|
|
|
|
|
|
Investment securities held to maturity
|
|
|
1,665
|
|
|
|
1,746
|
|
|
|
|
|
|
|
1,746
|
|
|
|
|
|
Mortgage loans held for sale
|
|
|
5,627
|
|
|
|
5,627
|
|
|
|
|
|
|
|
5,627
|
|
|
|
|
|
Loans, net
|
|
|
667,809
|
|
|
|
676,622
|
|
|
|
|
|
|
|
|
|
|
|
676,622
|
|
Cash surrender value of BOLI
|
|
|
17,286
|
|
|
|
17,286
|
|
|
|
17,286
|
|
|
|
|
|
|
|
|
|
FDIC loss sharing receivable
|
|
|
15,546
|
|
|
|
15,546
|
|
|
|
|
|
|
|
|
|
|
|
15,546
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
771,429
|
|
|
$
|
774,325
|
|
|
$
|
|
|
|
$
|
692,377
|
|
|
$
|
81,948
|
|
Short-term FHLB advances
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
|
|
|
|
|
|
Long-term FHLB advances
|
|
|
36,257
|
|
|
|
37,619
|
|
|
|
|
|
|
|
19,362
|
|
|
|
18,257
|
|
20. Condensed Parent Company Only Financial Statements
Condensed financial statements of Home Bancorp, Inc. (parent company only) are shown below. The parent company has no significant operating
activities.
Condensed Balance Sheets
December 31, 2013 and 2012
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash in bank
|
|
$
|
313
|
|
|
$
|
2,088
|
|
Investment securities
|
|
|
|
|
|
|
4,182
|
|
Investment in subsidiary
|
|
|
141,286
|
|
|
|
135,298
|
|
Other assets
|
|
|
650
|
|
|
|
629
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
142,249
|
|
|
$
|
142,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
$
|
340
|
|
|
$
|
623
|
|
Shareholders equity
|
|
|
141,909
|
|
|
|
141,574
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity
|
|
$
|
142,249
|
|
|
$
|
142,197
|
|
|
|
|
|
|
|
|
|
|
88
Condensed Statements of Operations
For the Years Ended December 31, 2013, 2012 and 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
44
|
|
|
$
|
160
|
|
|
$
|
397
|
|
Gain on sale of investment
|
|
|
241
|
|
|
|
163
|
|
|
|
|
|
Dividend from subsidiary
|
|
|
|
|
|
|
|
|
|
|
18,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating income
|
|
|
285
|
|
|
|
323
|
|
|
|
18,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses
|
|
|
155
|
|
|
|
163
|
|
|
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
155
|
|
|
|
163
|
|
|
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense and equity in undistributed earnings of subsidiary
|
|
|
130
|
|
|
|
160
|
|
|
|
18,194
|
|
Income tax expense
|
|
|
52
|
|
|
|
63
|
|
|
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before equity in undistributed earnings of subsidiary
|
|
|
78
|
|
|
|
97
|
|
|
|
18,118
|
|
Increase (decrease) in equity in undistributed earnings of subsidiary
|
|
|
7,216
|
|
|
|
9,093
|
|
|
|
(12,998
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
7,294
|
|
|
$
|
9,190
|
|
|
$
|
5,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Statements of Cash Flows
For the Years Ended December 31, 2013, 2012 and 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Cash Flows from Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
7,294
|
|
|
$
|
9,190
|
|
|
$
|
5,120
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net amortization of premium/discount on investments
|
|
|
(3
|
)
|
|
|
(6
|
)
|
|
|
(20
|
)
|
Gain on sale of investment securities
|
|
|
(241
|
)
|
|
|
(163
|
)
|
|
|
|
|
Non-cash compensation
|
|
|
652
|
|
|
|
612
|
|
|
|
520
|
|
(Increase) decrease in accrued interest and other assets
|
|
|
(21
|
)
|
|
|
(558
|
)
|
|
|
669
|
|
Decrease in equity in net income of subsidiary
|
|
|
(7,216
|
)
|
|
|
(9,093
|
)
|
|
|
(5,002
|
)
|
Dividend from subsidiary
|
|
|
|
|
|
|
|
|
|
|
18,000
|
|
(Decrease) increase in accrued expenses and other liabilities
|
|
|
(189
|
)
|
|
|
788
|
|
|
|
(456
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
276
|
|
|
|
770
|
|
|
|
18,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from prepayment on available for sale securities
|
|
|
312
|
|
|
|
2,437
|
|
|
|
6,332
|
|
Proceeds from sale of available for sale securities
|
|
|
3,837
|
|
|
|
2,527
|
|
|
|
|
|
Net cash paid in acquisitions
|
|
|
|
|
|
|
|
|
|
|
(26,417
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Investing Activities
|
|
|
4,149
|
|
|
|
4,964
|
|
|
|
(20,085
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
91
|
|
|
|
207
|
|
|
|
75
|
|
Purchase of treasury stock
|
|
|
(6,291
|
)
|
|
|
(5,828
|
)
|
|
|
(5,467
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Financing Activities
|
|
|
(6,200
|
)
|
|
|
(5,621
|
)
|
|
|
(5,392
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
(1,775
|
)
|
|
|
113
|
|
|
|
(6,646
|
)
|
Cash and Cash Equivalents as of Beginning of Period
|
|
|
2,088
|
|
|
|
1,975
|
|
|
|
8,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents as of End of Period
|
|
$
|
313
|
|
|
$
|
2,088
|
|
|
$
|
1,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89
21. Consolidated Quarterly Results of Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data)
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
$
|
10,875
|
|
|
$
|
10,852
|
|
|
$
|
11,226
|
|
|
$
|
10,767
|
|
Total interest expense
|
|
|
1,025
|
|
|
|
922
|
|
|
|
823
|
|
|
|
733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
9,850
|
|
|
|
9,930
|
|
|
|
10,403
|
|
|
|
10,034
|
|
Provision for loan losses
|
|
|
520
|
|
|
|
2,248
|
|
|
|
453
|
|
|
|
431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
9,330
|
|
|
|
7,682
|
|
|
|
9,950
|
|
|
|
9,603
|
|
Noninterest income
|
|
|
1,816
|
|
|
|
2,276
|
|
|
|
1,780
|
|
|
|
1,797
|
|
Noninterest expense
|
|
|
8,333
|
|
|
|
8,094
|
|
|
|
8,003
|
|
|
|
8,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
2,813
|
|
|
|
1,864
|
|
|
|
3,727
|
|
|
|
2,626
|
|
Income tax expense
|
|
|
952
|
|
|
|
621
|
|
|
|
1,244
|
|
|
|
919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,861
|
|
|
$
|
1,243
|
|
|
$
|
2,483
|
|
|
$
|
1,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic
|
|
$
|
0.28
|
|
|
$
|
0.19
|
|
|
$
|
0.38
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share diluted
|
|
$
|
0.26
|
|
|
$
|
0.18
|
|
|
$
|
0.37
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data)
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
|
|
|
|
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
$
|
11,265
|
|
|
$
|
11,230
|
|
|
$
|
12,120
|
|
|
$
|
11,507
|
|
Total interest expense
|
|
|
1,313
|
|
|
|
1,262
|
|
|
|
1,204
|
|
|
|
1,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
9,952
|
|
|
|
9,968
|
|
|
|
10,916
|
|
|
|
10,372
|
|
Provision for loan losses
|
|
|
712
|
|
|
|
1,160
|
|
|
|
56
|
|
|
|
483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
9,240
|
|
|
|
8,808
|
|
|
|
10,860
|
|
|
|
9,889
|
|
Noninterest income
|
|
|
1,763
|
|
|
|
1,970
|
|
|
|
2,160
|
|
|
|
1,868
|
|
Noninterest expense
|
|
|
7,872
|
|
|
|
8,113
|
|
|
|
8,462
|
|
|
|
8,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
3,131
|
|
|
|
2,665
|
|
|
|
4,558
|
|
|
|
3,441
|
|
Income tax expense
|
|
|
1,071
|
|
|
|
912
|
|
|
|
1,506
|
|
|
|
1,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,060
|
|
|
$
|
1,753
|
|
|
$
|
3,052
|
|
|
$
|
2,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic
|
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
$
|
0.44
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share diluted
|
|
$
|
0.29
|
|
|
$
|
0.24
|
|
|
$
|
0.42
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22. Subsequent Events
On February 14, 2014, Home Bancorp, Inc. (the Company) completed its acquisition of Britton & Koontz Capital
Corporation (Britton & Koontz) in accordance with the terms of the Agreement and Plan of Merger, dated as of November 4, 2013, by and between the Company and Britton & Koontz (the Merger Agreement).
Immediately after closing and in accordance with the terms of the Merger Agreement, Britton & Koontz Bank, N.A. (Britton & Koontz Bank), which had been the wholly owned subsidiary of Britton & Koontz, was
merged with and into Home Bank, the Companys wholly owned subsidiary, with Home Bank as the surviving institution.
As a result of the transaction,
Home Bank expanded its market area with three banking offices located in Natchez, Mississippi and two banking offices located in Vicksburg, Mississippi. The combined company has total assets of approximately $1.2 billion, $870 million in loans and
$960 million in deposits.
90