☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland
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52-1726127
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. employer identification no.)
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200 Westgate Circle, Suite 200
Annapolis, Maryland
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21401
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer ☐
|
Accelerated filer ☐
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|
Non- accelerated filer ☐ (Do not check if a smaller reporting company)
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Smaller reporting company ☑
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PART I – FINANCIAL INFORMATION
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Page
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|
Item 1.
|
Financial Statements (Unaudited)
|
|
1
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||
2
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||
3
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||
4
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||
6
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||
Item 2.
|
44
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Item 3.
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54
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Item 4.
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54
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PART II – OTHER INFORMATION
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||
Item 1.
|
54
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Item 1A.
|
55
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Item 2.
|
55
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Item 3.
|
55
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Item 4.
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55
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Item 5.
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55
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Item 6.
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55
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56
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Item 1. | Financial Statements |
June 30,
2016
|
December 31,
2015
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
38,976
|
$
|
28,366
|
||||
Interest-bearing deposits in other banks
|
7,786
|
15,225
|
||||||
Federal funds sold
|
1,913
|
-
|
||||||
Cash and cash equivalents
|
48,675
|
43,591
|
||||||
Investment securities held to maturity (fair value: $73,987 at June 30, 2016; $76,310 at December 31, 2015)
|
72,580
|
76,133
|
||||||
Loans held for sale
|
13,380
|
13,203
|
||||||
Loans receivable, net of allowance for loan losses of $8,804 and $8,758, respectively
|
609,096
|
589,656
|
||||||
Premises and equipment, net
|
24,007
|
24,290
|
||||||
Foreclosed real estate
|
1,112
|
1,744
|
||||||
Federal Home Loan Bank stock, at cost
|
5,995
|
5,626
|
||||||
Deferred Tax Asset
|
11,239
|
-
|
||||||
Accrued interest receivable and other assets
|
8,058
|
7,836
|
||||||
Total assets
|
$
|
794,142
|
$
|
762,079
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits
|
$
|
539,677
|
$
|
523,771
|
||||
Short-term borrowings
|
10,000
|
-
|
||||||
Long-term borrowings
|
115,000
|
115,000
|
||||||
Subordinated debentures
|
24,119
|
24,119
|
||||||
Accrued interest payable and other liabilities
|
5,825
|
12,733
|
||||||
Total liabilities
|
694,621
|
675,623
|
||||||
Stockholders’ Equity
|
||||||||
Preferred stock, $0.01 par value, 1,000,000 shares authorized:
|
||||||||
Preferred stock series “A”, 437,500 shares issued and outstanding; $3,500 liquidation preference
|
4
|
4
|
||||||
Preferred stock series “B”, 13,393 and 23,393 shares issued and outstanding; and $13,393 and $23,393 liquidation preference, respectively
|
-
|
-
|
||||||
Common stock, $0.01 par value, 20,000,000 shares authorized; 12,104,379 and 10,088,879 shares issued and outstanding, respectively
|
121
|
101
|
||||||
Additional paid-in capital
|
77,055
|
76,335
|
||||||
Retained earnings
|
22,341
|
10,016
|
||||||
Total stockholders' equity
|
99,521
|
86,456
|
||||||
Total liabilities and stockholders' equity
|
$
|
794,142
|
$
|
762,079
|
For the Three Months Ended
June 30, |
For the Six Months Ended
June 30, |
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Interest Income
|
||||||||||||||||
Loans, including fees
|
$
|
7,261
|
$
|
7,446
|
$
|
14,368
|
$
|
14,992
|
||||||||
Securities, taxable
|
299
|
241
|
610
|
474
|
||||||||||||
Other
|
82
|
92
|
168
|
173
|
||||||||||||
Total interest income
|
7,642
|
7,779
|
15,146
|
15,639
|
||||||||||||
Interest Expense
|
||||||||||||||||
Deposits
|
1,004
|
1,019
|
1,983
|
2,023
|
||||||||||||
Long-term/short-term borrowings and subordinated debentures
|
1,097
|
1,224
|
2,387
|
2,421
|
||||||||||||
Total interest expense
|
2,101
|
2,243
|
4,370
|
4,444
|
||||||||||||
Net interest income
|
5,541
|
5,536
|
10,776
|
11,195
|
||||||||||||
Provision for loan losses
|
100
|
100
|
100
|
200
|
||||||||||||
Net interest income after provision for loan losses
|
5,441
|
5,436
|
10,676
|
10,995
|
||||||||||||
Non-interest Income
|
||||||||||||||||
Mortgage banking activities
|
340
|
949
|
1,032
|
1,419
|
||||||||||||
Real estate commissions
|
673
|
491
|
791
|
598
|
||||||||||||
Real estate management fees
|
185
|
167
|
350
|
325
|
||||||||||||
Other
|
645
|
725
|
891
|
890
|
||||||||||||
Total non-interest income
|
1,843
|
2,332
|
3,064
|
3,232
|
||||||||||||
Non-Interest Expenses
|
||||||||||||||||
Compensation and related expenses
|
3,814
|
4,091
|
7,450
|
7,901
|
||||||||||||
Occupancy
|
449
|
453
|
901
|
878
|
||||||||||||
Legal
|
6
|
67
|
136
|
129
|
||||||||||||
Foreclosed real estate, net
|
98
|
52
|
143
|
(13
|
)
|
|||||||||||
FDIC assessments and regulatory expense
|
164
|
292
|
294
|
610
|
||||||||||||
Professional fees
|
235
|
235
|
407
|
501
|
||||||||||||
Advertising
|
208
|
201
|
341
|
343
|
||||||||||||
Online charges
|
243
|
198
|
500
|
407
|
||||||||||||
Credit report and appraisal fees
|
229
|
346
|
332
|
476
|
||||||||||||
Other
|
557
|
433
|
1,048
|
729
|
||||||||||||
Total non-interest expenses
|
6,003
|
6,368
|
11,552
|
11,961
|
||||||||||||
Income before income tax (benefit) provision
|
1,281
|
1,400
|
2,188
|
2,266
|
||||||||||||
Income tax (benefit) provision
|
(11,194
|
)
|
35
|
(11,194
|
)
|
36
|
||||||||||
Net income
|
12,475
|
1,365
|
13,382
|
2,230
|
||||||||||||
Amortization of discount on preferred stock
|
(67
|
)
|
(67
|
)
|
(135
|
)
|
(135
|
)
|
||||||||
Dividends on preferred stock
|
(396
|
)
|
(526
|
)
|
(922
|
)
|
(1,053
|
)
|
||||||||
Net income available to common stockholders
|
$
|
12,012
|
$
|
772
|
$
|
12,325
|
$
|
1,042
|
||||||||
Basic income per share
|
$
|
1.02
|
$
|
0.08
|
$
|
1.13
|
$
|
0.10
|
||||||||
Diluted income per share
|
$
|
1.02
|
$
|
0.08
|
$
|
1.12
|
$
|
0.10
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Total
Stockholders’
Equity
|
||||||||||||||||
Balance - December 31, 2015
|
$
|
4
|
$
|
101
|
$
|
76,335
|
$
|
10,016
|
$
|
86,456
|
||||||||||
Net Income
|
-
|
-
|
-
|
13,382
|
13,382
|
|||||||||||||||
Stock issuance (2,015,500 shares) net of expenses of $575
|
20
|
10,490
|
10,510
|
|||||||||||||||||
Stock-based compensation
|
-
|
-
|
95
|
-
|
95
|
|||||||||||||||
Dividend declared on Series A preferred stock
|
-
|
-
|
-
|
(70
|
)
|
(70
|
)
|
|||||||||||||
Stock redemption on Series B preferred stock (10,000 shares)
|
-
|
-
|
(10,000
|
)
|
-
|
(10,000
|
)
|
|||||||||||||
Dividend declared on Series B preferred stock
|
-
|
-
|
-
|
(852
|
)
|
(852
|
)
|
|||||||||||||
Amortization of discount on
|
||||||||||||||||||||
Series B preferred stock warrants
|
135
|
(135
|
)
|
-
|
||||||||||||||||
Balance – June 30, 2016
|
$
|
4
|
$
|
121
|
$
|
77,055
|
$
|
22,341
|
$
|
99,521
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Total
Stockholders’
Equity
|
||||||||||||||||
Balance - December 31, 2014
|
$
|
4
|
$
|
101
|
$
|
75,848
|
$
|
7,857
|
$
|
83,810
|
||||||||||
Net Income
|
-
|
-
|
-
|
2,230
|
2,230
|
|||||||||||||||
Stock-based compensation
|
-
|
-
|
62
|
-
|
62
|
|||||||||||||||
Dividend declared on Series B preferred stock
|
-
|
-
|
-
|
(1,053
|
)
|
(1,053
|
)
|
|||||||||||||
Amortization of discount on Series B preferred stock warrants
|
135
|
(135
|
)
|
-
|
||||||||||||||||
Exercised Options (21,500 shares)
|
-
|
-
|
96
|
96
|
||||||||||||||||
Balance – June 30, 2015
|
$
|
4
|
$
|
101
|
$
|
76,141
|
$
|
8,899
|
$
|
85,145
|
For the Six Months Ended
June 30,
|
||||||||
2016
|
2015
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
13,382
|
$
|
2,230
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization of deferred loan fees
|
(592
|
)
|
(623
|
)
|
||||
Net amortization of premiums and discounts
|
214
|
184
|
||||||
Provision for loan losses
|
100
|
200
|
||||||
Provision for depreciation
|
571
|
564
|
||||||
Provision for losses on foreclosed real estate
|
133
|
-
|
||||||
Gain on sale of loans
|
(1,033
|
)
|
(1,419
|
)
|
||||
Gain on sale of foreclosed real estate
|
(46
|
)
|
(82
|
)
|
||||
Proceeds from loans sold to others
|
61,428
|
76,538
|
||||||
Loans originated for sale
|
(60,572
|
)
|
(80,899
|
)
|
||||
Stock-based compensation expense
|
95
|
62
|
||||||
Deferred income tax benefit
|
(11,239
|
)
|
-
|
|||||
(Increase) decrease in accrued interest receivable and other assets
|
(222
|
)
|
1,245
|
|||||
(Decrease) increase in accrued interest payable and other liabilities
|
(358
|
)
|
2,909
|
|||||
Net cash provided by operating activities
|
1,861
|
909
|
||||||
Cash Flows from Investing Activities
|
||||||||
Purchase of investment securities held to maturity
|
(4,562
|
)
|
(20,661
|
)
|
||||
Proceeds from maturing investment securities held to maturity
|
5,000
|
2,000
|
||||||
Principal collected on mortgage-backed securities held to maturity
|
2,901
|
1,269
|
||||||
Net (increase) decrease in loans
|
(20,025
|
)
|
29,519
|
|||||
Proceeds from sale of foreclosed real estate
|
1,622
|
1,844
|
||||||
Investment in premises and equipment
|
(288
|
)
|
(170
|
)
|
||||
(Purchase) redemption of FHLB stock
|
(369
|
)
|
310
|
|||||
Net cash (used in) provided by investing activities
|
(15,721
|
)
|
14,111
|
For the Six Months Ended
June 30,
|
||||||||
2016
|
2015
|
|||||||
Cash Flows from Financing Activities
|
||||||||
Net increase in deposits
|
15,906
|
298
|
||||||
Net increase in short-term borrowings
|
10,000
|
-
|
||||||
Series A preferred stock dividends
|
(70
|
)
|
-
|
|||||
Series B preferred stock dividends
|
(7,402
|
)
|
-
|
|||||
Stock redemption of Series B preferred stock
|
(10,000
|
)
|
-
|
|||||
Net proceeds from common stock issuance
|
10,510
|
-
|
||||||
Proceeds from exercise of options
|
-
|
96
|
||||||
Net cash provided by financing activities
|
18,944
|
394
|
Increase in cash and cash equivalents
|
5,084
|
15,414
|
||||||
Cash and cash equivalents at beginning of year
|
43,591
|
33,335
|
||||||
Cash and cash equivalents at end of period
|
$
|
48,675
|
$
|
48,749
|
||||
Supplemental disclosure of cash flows information:
|
||||||||
Cash paid (received) during period for:
|
||||||||
Interest
|
$
|
7,099
|
$
|
3,979
|
||||
Income taxes
|
$
|
-
|
$
|
(301
|
)
|
|||
Transfer of loans to foreclosed real estate
|
$
|
1,077
|
$
|
1,907
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Common shares – weighted average (basic)
|
11,772,195
|
10,088,549
|
10,930,537
|
10,078,923
|
||||||||||||
Common share equivalents – weighted average
|
55,447
|
24,746
|
47,788
|
23,298
|
||||||||||||
Common shares – weighted average (diluted)
|
11,827,642
|
10,113,295
|
10,978,325
|
10,102,221
|
Actual
|
For Capital
Adequacy Purposes
|
Minimum Capital
Adequacy with
Capital Buffer
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||
June 30, 2016
|
||||||||||||||||||||||||||||||||
Tangible (1)
|
$
|
109,289
|
14.3
|
%
|
$
|
11,477
|
1.5
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||
Tier 1 capital (2)
|
109,289
|
18.5
|
%
|
35,428
|
6.0
|
%
|
$
|
39,118
|
6.6
|
%
|
$
|
47,237
|
8.0
|
%
|
||||||||||||||||||
Common Equity Tier 1 (2)
|
109,289
|
18.5
|
%
|
26,571
|
4.5
|
%
|
30,261
|
5.1
|
%
|
38,380
|
6.5
|
%
|
||||||||||||||||||||
Leverage (1)
|
109,289
|
14.3
|
%
|
30,604
|
4.0
|
%
|
35,386
|
4.6
|
%
|
38,255
|
5.0
|
%
|
||||||||||||||||||||
Total (2)
|
116,727
|
19.8
|
%
|
47,237
|
8.0
|
%
|
50,927
|
8.6
|
%
|
59,046
|
10.0
|
%
|
(1)
|
To adjusted total assets.
|
(2)
|
To risk-weighted assets.
|
2016
|
||||||||
Shares
|
Weighted Average
Price |
|||||||
Options outstanding, December 31, 2015
|
339,800
|
$
|
4.83
|
|||||
Options granted
|
-
|
-
|
||||||
Options exercised
|
-
|
-
|
||||||
Options forfeited
|
-
|
-
|
||||||
Options outstanding, June 30, 2016
|
339,800
|
$
|
4.83
|
|||||
Options exercisable, June 30, 2016
|
137,210
|
$
|
4.34
|
Shares
|
Weighted
AverageExercise Price
|
|||||||
Nonvested options outstanding, December 31, 2015
|
235,570
|
$
|
5.13
|
|||||
Nonvested options granted
|
-
|
-
|
||||||
Nonvested options vested
|
(32,980
|
)
|
$
|
4.88
|
||||
Nonvested options forfeited
|
-
|
-
|
||||||
Nonvested options outstanding, June 30, 2016
|
202,590
|
$
|
5.17
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized Losses
|
Fair
Value
|
|||||||||||||
June 30, 2016:
|
||||||||||||||||
US Treasury securities
|
$
|
18,018
|
$
|
354
|
$
|
-
|
$
|
18,372
|
||||||||
US Agency securities
|
21,043
|
461
|
-
|
21,504
|
||||||||||||
US Government sponsored mortgage-backed securities
|
33,519
|
592
|
-
|
34,111
|
||||||||||||
Total
|
$
|
72,580
|
$
|
1,407
|
$
|
-
|
$
|
73,987
|
December 31, 2015:
|
||||||||||||||||
US Treasury securities
|
$
|
21,057
|
$
|
276
|
$
|
8
|
$
|
21,325
|
||||||||
US Agency securities
|
20,011
|
139
|
76
|
20,074
|
||||||||||||
US Government sponsored mortgage-backed securities
|
35,065
|
41
|
195
|
34,911
|
||||||||||||
Total
|
$
|
76,133
|
$
|
456
|
$
|
279
|
$
|
76,310
|
Less than 12 months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
|||||||||||||||||||
June 30, 2016:
|
(dollars in thousands)
|
|||||||||||||||||||||||
US Treasury securities
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
US Agency securities
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
US Government sponsored mortgage-backed securities
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Less than 12 months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
|||||||||||||||||||
December 31, 2015: |
(dollars in thousands)
|
|||||||||||||||||||||||
US Treasury securities
|
$
|
3,992
|
$
|
8
|
$
|
-
|
$
|
-
|
$
|
3,992
|
$
|
8
|
||||||||||||
US Agency securities
|
12,958
|
76
|
-
|
-
|
12,958
|
76
|
||||||||||||||||||
US Government sponsored mortgage-backed securities
|
31,091
|
195
|
-
|
-
|
31,091
|
195
|
||||||||||||||||||
Total
|
$
|
48,041
|
$
|
279
|
$
|
-
|
$
|
-
|
$
|
48,041
|
$
|
279
|
Held to Maturity
(dollars in thousands) |
||||||||
Amortized
Cost |
Estimated
Fair Value |
|||||||
Due in one year or less
|
$
|
8,025
|
$
|
8,065
|
||||
Due from one year to five years
|
29,078
|
29,642
|
||||||
Due from five years to ten years
|
1,958
|
2,169
|
||||||
US Government sponsored mortgage-backed securities
|
33,519
|
34,111
|
||||||
$
|
72,580
|
$
|
73,987
|
June 30 | December 31 | |||||||
2016
|
2015
|
|||||||
(dollars in thousands)
|
||||||||
Residential mortgage, total
|
$
|
277,245
|
$
|
285,930
|
||||
Individually evaluated for impairment
|
23,078
|
26,087
|
||||||
Collectively evaluated for impairment
|
254,167
|
259,843
|
||||||
Construction, land acquisition and development, total
|
61,576
|
77,478
|
||||||
Individually evaluated for impairment
|
378
|
309
|
||||||
Collectively evaluated for impairment
|
61,198
|
77,169
|
||||||
Land, total
|
33,139
|
28,677
|
||||||
Individually evaluated for impairment
|
1,298
|
1,608
|
||||||
Collectively evaluated for impairment
|
31,841
|
27,069
|
||||||
Lines of credit, total
|
26,926
|
20,188
|
||||||
Individually evaluated for impairment
|
279
|
299
|
||||||
Collectively evaluated for impairment
|
26,647
|
19,889
|
||||||
Commercial real estate, total
|
202,484
|
174,912
|
||||||
Individually evaluated for impairment
|
5,949
|
6,321
|
||||||
Collectively evaluated for impairment
|
196,535
|
168,591
|
||||||
Commercial non-real estate, total
|
15,521
|
9,296
|
||||||
Individually evaluated for impairment
|
-
|
122
|
||||||
Collectively evaluated for impairment
|
15,521
|
9,174
|
||||||
Home equity, total
|
22,397
|
24,529
|
||||||
Individually evaluated for impairment
|
1,928
|
2,285
|
||||||
Collectively evaluated for impairment
|
20,469
|
22,244
|
||||||
Consumer, total
|
1,646
|
1,224
|
||||||
Individually evaluated for impairment
|
105
|
10
|
||||||
Collectively evaluated for impairment
|
1,541
|
1,214
|
||||||
Total Loans
|
640,934
|
622,234
|
||||||
Less
|
||||||||
Unfunded commitments included above
|
(20,117
|
)
|
(21,101
|
)
|
||||
$
|
620,817
|
601,133
|
||||||
Individually evaluated for impairment
|
33,015
|
37,041
|
||||||
Collectively evaluated for impairment
|
587,802
|
564,092
|
||||||
620,817
|
601,133
|
|||||||
Allowance for loan losses
|
(8,804
|
)
|
(8,758
|
)
|
||||
Deferred loan origination fees and costs, net
|
(2,917
|
)
|
(2,719
|
)
|
||||
Net Loans
|
$
|
609,096
|
$
|
589,656
|
· | Levels and trends in delinquencies and nonaccruals; |
· | Inherent risk in the loan portfolio; |
· | Trends in volume and terms of the loan; |
· | Effects of any change in lending policies and procedures; |
· | Experience, ability and depth of management; |
· | National and local economic trends and conditions; and |
· | Effect of any changes in concentration of credit. |
· | Loans that are 90 days or more in arrears (nonaccrual loans); or |
· | Loans where, based on current information and events, it is probable that a borrower will be unable to pay all amounts due according to the contractual terms of the loan agreement. |
· | The loan has been foreclosed on. Once the loan has been transferred from the Loans Receivable to Foreclosed Real Estate, a charge off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral. |
· | An agreement to accept less than the recorded balance of the loan has been made with the borrower. Once an agreement has been finalized, and any proceeds from the borrower are received, a charge off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral. |
· | The loan is considered to be impaired collateral dependent and its collateral valuation is less than the recorded balance. The loan is written down for accounting purposes by the amount of the difference between the recorded balance and collateral value. |
Total
|
Residential
Mortgage
|
Construction
Acquisition
Development
|
Land
|
Lines of
Credit
|
Commercial
Real Estate
|
Commercial
Non-Real
Estate
|
Home
Equity
|
Consumer
|
||||||||||||||||||||||||||||
Six months ended June 30, 2016
|
||||||||||||||||||||||||||||||||||||
Beginning Balance
|
$
|
8,758
|
$
|
4,188
|
$
|
446
|
$
|
510
|
$
|
57
|
$
|
2,792
|
$
|
234
|
$
|
528
|
$
|
3
|
||||||||||||||||||
Provision
|
100
|
(330
|
)
|
(246
|
)
|
173
|
(18
|
)
|
(37
|
)
|
463
|
91
|
4
|
|||||||||||||||||||||||
Charge-offs
|
(374
|
)
|
(151
|
)
|
-
|
-
|
-
|
(178
|
)
|
(17
|
)
|
(28
|
)
|
-
|
||||||||||||||||||||||
Recoveries
|
320
|
185
|
97
|
3
|
10
|
-
|
23
|
2
|
-
|
|||||||||||||||||||||||||||
Ending Balance
|
$
|
8,804
|
$
|
3,892
|
$
|
297
|
$
|
686
|
$
|
49
|
$
|
2,577
|
$
|
703
|
$
|
593
|
$
|
7
|
||||||||||||||||||
Ending balance related to:
|
||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
1,948
|
$
|
1,663
|
$
|
-
|
$
|
60
|
$
|
15
|
$
|
203
|
$
|
-
|
$
|
2
|
$
|
5
|
||||||||||||||||||
Loans collectively evaluated for impairment
|
$
|
6,856
|
$
|
2,229
|
$
|
297
|
$
|
626
|
$
|
34
|
$
|
2,374
|
$
|
703
|
$
|
591
|
$
|
2
|
||||||||||||||||||
Three months ended June 30, 2016
|
||||||||||||||||||||||||||||||||||||
Beginning Balance
|
$
|
8,633
|
$
|
4,223
|
$
|
335
|
$
|
684
|
$
|
42
|
$
|
2,348
|
$
|
348
|
$
|
650
|
$
|
3
|
||||||||||||||||||
Provision
|
100
|
(423
|
)
|
(135
|
)
|
(1
|
)
|
2
|
360
|
351
|
(58
|
)
|
4
|
|||||||||||||||||||||||
Charge-offs
|
(142
|
)
|
(11
|
)
|
-
|
-
|
-
|
(131
|
)
|
-
|
-
|
-
|
||||||||||||||||||||||||
Recoveries
|
213
|
103
|
97
|
3
|
5
|
-
|
4
|
1
|
-
|
|||||||||||||||||||||||||||
Ending Balance
|
$
|
8,804
|
$
|
3,892
|
$
|
297
|
$
|
686
|
$
|
49
|
$
|
2,577
|
$
|
703
|
$
|
593
|
$
|
7
|
2015
|
Total
|
Residential
Mortgage
|
Acquisition
and
Development
|
Land
|
Lines of
Credit
|
Commercial
Real Estate
|
Commercial
Non-Real
Estate
|
Home
Equity
|
Consumer
|
|||||||||||||||||||||||||||
Beginning Balance
|
$
|
9,435
|
$
|
4,664
|
$
|
362
|
$
|
646
|
$
|
12
|
$
|
2,504
|
$
|
280
|
$
|
963
|
$
|
4
|
||||||||||||||||||
Provision
|
(280
|
)
|
(651
|
)
|
84
|
(185
|
)
|
(190
|
)
|
368
|
59
|
236
|
(1
|
)
|
||||||||||||||||||||||
Charge-offs
|
(1,522
|
)
|
(454
|
)
|
-
|
-
|
-
|
(80
|
)
|
(154
|
)
|
(834
|
)
|
-
|
||||||||||||||||||||||
Recoveries
|
1,125
|
629
|
-
|
49
|
235
|
-
|
49
|
163
|
-
|
|||||||||||||||||||||||||||
Ending Balance
|
$
|
8,758
|
$
|
4,188
|
$
|
446
|
$
|
510
|
$
|
57
|
$
|
2,792
|
$
|
234
|
$
|
528
|
$
|
3
|
||||||||||||||||||
Allowance on loans individually evaluated for impairment
|
$
|
2,282
|
$
|
1,838
|
$
|
-
|
$
|
78
|
$
|
30
|
$
|
328
|
$
|
5
|
$
|
2
|
$
|
1
|
||||||||||||||||||
Allowance on loans collectively evaluated for impairment
|
$
|
6,476
|
$
|
2,350
|
$
|
446
|
$
|
432
|
$
|
27
|
$
|
2,464
|
$
|
229
|
$
|
526
|
$
|
2
|
Total
|
Residential
Mortgage
|
Construction
Acquisition
Development
|
Land
|
Lines of
Credit
|
Commercial
Real Estate
|
Commercial
Non-Real
Estate
|
Home
Equity
|
Consumer
|
||||||||||||||||||||||||||||
Six months ended June 30, 2015
|
||||||||||||||||||||||||||||||||||||
Beginning Balance
|
$
|
9,435
|
$
|
4,664
|
$
|
362
|
$
|
646
|
$
|
12
|
$
|
2,504
|
$
|
280
|
$
|
963
|
$
|
4
|
||||||||||||||||||
Provision
|
200
|
(44
|
)
|
60
|
(188
|
)
|
(16
|
)
|
278
|
88
|
23
|
(1
|
)
|
|||||||||||||||||||||||
Charge-offs
|
(873
|
)
|
(351
|
)
|
-
|
-
|
-
|
(50
|
)
|
(1
|
)
|
(471
|
)
|
-
|
||||||||||||||||||||||
Recoveries
|
182
|
127
|
-
|
-
|
25
|
-
|
27
|
3
|
-
|
|||||||||||||||||||||||||||
Ending Balance
|
$
|
8,944
|
$
|
4,396
|
$
|
422
|
$
|
458
|
$
|
21
|
$
|
2,732
|
$
|
394
|
$
|
518
|
$
|
3
|
||||||||||||||||||
Ending balance related to:
|
||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
2,199
|
$
|
1,924
|
$
|
-
|
$
|
45
|
$
|
-
|
$
|
216
|
$
|
12
|
$
|
-
|
$
|
2
|
||||||||||||||||||
Loans collectively evaluated for impairment
|
$
|
6,745
|
$
|
2,472
|
$
|
422
|
$
|
413
|
$
|
21
|
$
|
2,516
|
$
|
382
|
$
|
518
|
$
|
1
|
||||||||||||||||||
Three months ended June 30, 2015
|
||||||||||||||||||||||||||||||||||||
Beginning Balance
|
$
|
8,964
|
$
|
4,491
|
$
|
368
|
$
|
338
|
$
|
17
|
$
|
2,798
|
$
|
382
|
$
|
567
|
$
|
3
|
||||||||||||||||||
Provision
|
100
|
(22
|
)
|
54
|
120
|
(11
|
)
|
(16
|
)
|
10
|
(35
|
)
|
-
|
|||||||||||||||||||||||
Charge-offs
|
(247
|
)
|
(183
|
)
|
-
|
-
|
-
|
(50
|
)
|
-
|
(14
|
)
|
-
|
|||||||||||||||||||||||
Recoveries
|
127
|
110
|
-
|
-
|
15
|
-
|
2
|
-
|
-
|
|||||||||||||||||||||||||||
Ending Balance
|
$
|
8,944
|
$
|
4,396
|
$
|
422
|
$
|
458
|
$
|
21
|
$
|
2,732
|
$
|
394
|
$
|
518
|
$
|
3
|
Impaired Loans with
Specific Allowance
|
Impaired
Loans with
No Specific
Allowance
|
Total Impaired Loans
|
||||||||||||||||||
Recorded
Investment
|
Related
Allowance
|
Recorded
Investment
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
||||||||||||||||
June 30, 2016
|
||||||||||||||||||||
Residential mortgage
|
$
|
10,870
|
$
|
1,663
|
$
|
12,208
|
$
|
23,078
|
$
|
23,570
|
||||||||||
Construction, acquisition and development
|
-
|
-
|
378
|
378
|
378
|
|||||||||||||||
Land
|
460
|
60
|
838
|
1,298
|
1,411
|
|||||||||||||||
Lines of credit
|
149
|
15
|
130
|
279
|
279
|
|||||||||||||||
Commercial real estate
|
1,989
|
203
|
3,960
|
5,949
|
6,228
|
|||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Home equity
|
16
|
2
|
1,912
|
1,928
|
2,514
|
|||||||||||||||
Consumer
|
105
|
5
|
-
|
105
|
105
|
|||||||||||||||
Total impaired loans
|
$
|
13,589
|
$
|
1,948
|
$
|
19,426
|
$
|
33,015
|
$
|
34,485
|
Impaired Loans with
Specific Allowance
|
Impaired
Loans with
No Specific
Allowance
|
Total Impaired Loans
|
||||||||||||||||||
Recorded
Investment
|
Related
Allowance
|
Recorded
Investment
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
||||||||||||||||
December 31, 2015
|
||||||||||||||||||||
Residential mortgage
|
$
|
11,885
|
$
|
1,838
|
$
|
14,202
|
$
|
26,087
|
$
|
26,656
|
||||||||||
Construction, acquisition and development
|
-
|
-
|
309
|
309
|
309
|
|||||||||||||||
Land
|
639
|
78
|
969
|
1,608
|
1,723
|
|||||||||||||||
Lines of credit
|
299
|
30
|
-
|
299
|
299
|
|||||||||||||||
Commercial real estate
|
3,214
|
328
|
3,107
|
6,321
|
6,469
|
|||||||||||||||
Commercial non-real estate
|
103
|
5
|
19
|
122
|
123
|
|||||||||||||||
Home equity
|
16
|
2
|
2,269
|
2,285
|
3,251
|
|||||||||||||||
Consumer
|
10
|
1
|
-
|
10
|
10
|
|||||||||||||||
Total impaired loans
|
$
|
16,166
|
$
|
2,282
|
$
|
20,875
|
$
|
37,041
|
$
|
38,840
|
Impaired Loans with
Specific Allowance
|
Impaired Loans with No
Specific Allowance
|
Total Impaired Loans
|
||||||||||||||||||||||
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||
Six months ended June 30, 2016
|
||||||||||||||||||||||||
Residential mortgage
|
$
|
11,381
|
$
|
250
|
$
|
13,669
|
$
|
285
|
$
|
25,050
|
$
|
535
|
||||||||||||
Construction, acquisition and development
|
-
|
-
|
368
|
8
|
368
|
8
|
||||||||||||||||||
Land
|
556
|
14
|
859
|
19
|
1,415
|
33
|
||||||||||||||||||
Lines of credit
|
150
|
4
|
79
|
1
|
229
|
5
|
||||||||||||||||||
Commercial real estate
|
2,071
|
52
|
4,090
|
77
|
6,161
|
129
|
||||||||||||||||||
Commercial non-real estate
|
50
|
1
|
9
|
-
|
59
|
1
|
||||||||||||||||||
Home equity
|
16
|
1
|
2,030
|
41
|
2,046
|
42
|
||||||||||||||||||
Consumer
|
58
|
1
|
34
|
-
|
92
|
1
|
||||||||||||||||||
Total impaired loans
|
$
|
14,282
|
$
|
323
|
$
|
21,138
|
$
|
431
|
$
|
35,420
|
$
|
754
|
Impaired Loans with
Specific Allowance
|
Impaired Loans with No
Specific Allowance
|
Total Impaired Loans
|
||||||||||||||||||||||
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||
Three months ended June 30, 2016
|
||||||||||||||||||||||||
Residential mortgage
|
$
|
11,209
|
$
|
127
|
$
|
12,065
|
$
|
117
|
$
|
23,274
|
$
|
244
|
||||||||||||
Construction, acquisition and development
|
-
|
-
|
378
|
4
|
378
|
4
|
||||||||||||||||||
Land
|
463
|
6
|
841
|
9
|
1,304
|
15
|
||||||||||||||||||
Lines of credit
|
149
|
2
|
59
|
1
|
208
|
3
|
||||||||||||||||||
Commercial real estate
|
1,993
|
25
|
4,214
|
61
|
6,207
|
86
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
16
|
-
|
1,913
|
21
|
1,929
|
21
|
||||||||||||||||||
Consumer
|
106
|
1
|
-
|
-
|
106
|
1
|
||||||||||||||||||
Total impaired loans
|
$
|
13,936
|
$
|
161
|
$
|
19,470
|
$
|
213
|
$
|
33,406
|
$
|
374
|
Impaired Loans with
Specific Allowance
|
Impaired Loans with No
Specific Allowance
|
Total Impaired Loans
|
||||||||||||||||||||||
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||
Six months ended June 30, 2015
|
||||||||||||||||||||||||
Residential mortgage
|
$
|
12,929
|
$
|
265
|
$
|
14,732
|
$
|
297
|
$
|
27,661
|
$
|
562
|
||||||||||||
Construction, acquisition and development
|
-
|
-
|
1,011
|
17
|
1,011
|
17
|
||||||||||||||||||
Land
|
353
|
6
|
1,599
|
44
|
1,952
|
50
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
454
|
15
|
454
|
15
|
||||||||||||||||||
Commercial real estate
|
2,028
|
57
|
2,384
|
82
|
4,412
|
139
|
||||||||||||||||||
Commercial non-real estate
|
268
|
3
|
-
|
13
|
268
|
16
|
||||||||||||||||||
Home equity
|
667
|
-
|
2,609
|
65
|
3,276
|
65
|
||||||||||||||||||
Consumer
|
11
|
-
|
205
|
3
|
216
|
3
|
||||||||||||||||||
Total impaired loans
|
$
|
16,256
|
$
|
331
|
$
|
22,994
|
$
|
536
|
$
|
39,250
|
$
|
867
|
Impaired Loans with
Specific Allowance
|
Impaired Loans with No
Specific Allowance
|
Total Impaired Loans
|
||||||||||||||||||||||
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||
Three months ended June 30, 2015
|
||||||||||||||||||||||||
Residential mortgage
|
$
|
12,900
|
$
|
129
|
$
|
13,773
|
$
|
149
|
$
|
26,673
|
$
|
278
|
||||||||||||
Construction, acquisition and development
|
-
|
-
|
865
|
8
|
865
|
8
|
||||||||||||||||||
Land
|
352
|
3
|
1,523
|
22
|
1,875
|
25
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
454
|
2
|
454
|
2
|
||||||||||||||||||
Commercial real estate
|
2,021
|
26
|
2,331
|
42
|
4,352
|
68
|
||||||||||||||||||
Commercial non-real estate
|
266
|
1
|
-
|
-
|
266
|
1
|
||||||||||||||||||
Home equity
|
-
|
-
|
3,122
|
27
|
3,122
|
27
|
||||||||||||||||||
Consumer
|
11
|
-
|
409
|
3
|
420
|
3
|
||||||||||||||||||
Total impaired loans
|
$
|
15,550
|
$
|
159
|
$
|
22,477
|
$
|
253
|
$
|
38,027
|
$
|
412
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
June 30, 2016
|
||||||||||||||||||||
Residential mortgage
|
$
|
265,116
|
$
|
7,274
|
$
|
4,855
|
$
|
-
|
$
|
277,245
|
||||||||||
Construction, acquisition and development
|
61,198
|
71
|
307
|
-
|
61,576
|
|||||||||||||||
Land
|
32,055
|
372
|
712
|
-
|
33,139
|
|||||||||||||||
Lines of credit
|
26,422
|
250
|
254
|
-
|
26,926
|
|||||||||||||||
Commercial real estate
|
187,172
|
11,755
|
3,557
|
-
|
202,484
|
|||||||||||||||
Commercial non-real estate
|
15,189
|
107
|
225
|
-
|
15,521
|
|||||||||||||||
Home equity
|
20,539
|
587
|
1,271
|
-
|
22,397
|
|||||||||||||||
Consumer
|
1,646
|
-
|
-
|
-
|
1,646
|
|||||||||||||||
Total loans
|
$
|
609,337
|
$
|
20,416
|
$
|
11,181
|
$
|
-
|
$
|
640,934
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
December 31, 2015
|
||||||||||||||||||||
Residential mortgage
|
$
|
268,583
|
$
|
12,457
|
$
|
4,890
|
$
|
-
|
$
|
285,930
|
||||||||||
Construction, acquisition and development
|
77,168
|
71
|
239
|
-
|
77,478
|
|||||||||||||||
Land
|
26,845
|
1,268
|
564
|
-
|
28,677
|
|||||||||||||||
Lines of credit
|
19,521
|
368
|
299
|
-
|
20,188
|
|||||||||||||||
Commercial real estate
|
155,766
|
13,208
|
5,938
|
-
|
174,912
|
|||||||||||||||
Commercial non-real estate
|
9,151
|
125
|
20
|
-
|
9,296
|
|||||||||||||||
Home equity
|
22,018
|
588
|
1,923
|
-
|
24,529
|
|||||||||||||||
Consumer
|
1,224
|
-
|
-
|
-
|
1,224
|
|||||||||||||||
Total loans
|
$
|
580,276
|
$
|
28,085
|
$
|
13,873
|
$
|
-
|
$
|
622,234
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90+
Days
Past Due
|
Total
Past Due
|
Current
|
Total
Loans
|
Non-
Accrual
|
||||||||||||||||||||||
June 30, 2016
|
||||||||||||||||||||||||||||
Residential mortgage
|
$
|
2,990
|
$
|
-
|
$
|
2,731
|
$
|
5,721
|
$
|
271,524
|
$
|
277,245
|
$
|
3,045
|
||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
61,576
|
61,576
|
307
|
|||||||||||||||||||||
Land
|
-
|
-
|
6
|
6
|
33,133
|
33,139
|
264
|
|||||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
26,926
|
26,926
|
149
|
|||||||||||||||||||||
Commercial real estate
|
-
|
-
|
381
|
381
|
202,103
|
202,484
|
3,648
|
|||||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
15,521
|
15,521
|
-
|
|||||||||||||||||||||
Home equity
|
-
|
408
|
487
|
895
|
21,502
|
22,397
|
1,587
|
|||||||||||||||||||||
Consumer
|
2
|
-
|
205
|
207
|
1,439
|
1,646
|
206
|
|||||||||||||||||||||
Total loans
|
$
|
2,992
|
$
|
408
|
$
|
3,810
|
$
|
7,210
|
$
|
633,724
|
$
|
640,934
|
$
|
9,206
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90+
Days
Past Due
|
Total
Past Due
|
Current
|
Total
Loans
|
Non-
Accrual
|
||||||||||||||||||||||
December 31, 2015
|
||||||||||||||||||||||||||||
Residential mortgage
|
$
|
1,593
|
$
|
65
|
$
|
2,461
|
$
|
4,119
|
$
|
281,811
|
$
|
285,930
|
$
|
3,191
|
||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
77,478
|
77,478
|
244
|
|||||||||||||||||||||
Land
|
137
|
-
|
156
|
293
|
28,384
|
28,677
|
277
|
|||||||||||||||||||||
Lines of credit
|
149
|
-
|
-
|
149
|
20,039
|
20,188
|
483
|
|||||||||||||||||||||
Commercial real estate
|
253
|
-
|
292
|
545
|
174,367
|
174,912
|
2,681
|
|||||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
9,296
|
9,296
|
-
|
|||||||||||||||||||||
Home equity
|
-
|
-
|
625
|
625
|
23,904
|
24,529
|
2,098
|
|||||||||||||||||||||
Consumer
|
3
|
-
|
-
|
3
|
1,221
|
1,224
|
-
|
|||||||||||||||||||||
Total loans
|
$
|
2,135
|
$
|
65
|
$
|
3,534
|
$
|
5,734
|
$
|
616,500
|
$
|
622,234
|
$
|
8,974
|
· | Rate Modification – A modification in which the interest rate is changed. |
· | Term Modification – A modification in which the maturity date, timing of payments or frequency of payments is changed. |
· | Interest Only Modification – A modification in which the loan is converted to interest only payments for a period of time. |
· | Payment Modification – A modification in which the dollar amount of the payment is changed, other than an interest only modification above. |
· | Loan Balance Modification – A modification in which a portion of the outstanding loan balance is forgiven. |
· | Combination Modification – Any other type of modification, including the use of multiple categories above. |
Six months ended June 30, 2016
|
||||||||||||||||||||||||
Rate
Modification
|
Contracts
|
Combination
Modifications
|
Contracts
|
Total
|
Total
Contracts
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
624
|
3
|
$
|
624
|
3
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
624
|
3
|
$
|
624
|
3
|
||||||||||||||||
Post-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
624
|
3
|
$
|
624
|
3
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
624
|
3
|
$
|
624
|
3
|
Three months ended June 30, 2016
|
||||||||||||||||||||||||
Rate
Modification
|
Contracts
|
Combination
Modifications
|
Contracts
|
Total
|
Total
Contracts
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
||||||||||||||||
Post-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
Six months ended June 30, 2015
|
||||||||||||||||||||||||
Rate
Modification
|
Contracts
|
Combination
Modifications
|
Contracts
|
Total
|
Total
Contracts
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
91
|
1
|
$
|
91
|
1
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
91
|
1
|
$
|
91
|
1
|
||||||||||||||||
Post-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
200
|
2
|
$
|
200
|
2
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
200
|
2
|
$
|
200
|
2
|
Three months ended June 30, 2015
|
||||||||||||||||||||||||
Rate
Modification
|
Contracts
|
Combination
Modifications
|
Contracts
|
Total
|
Total
Contracts
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
-
|
1
|
$
|
-
|
1
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
-
|
1
|
$
|
-
|
1
|
||||||||||||||||
Post-Modification Outstanding Recorded Investment:
|
||||||||||||||||||||||||
Residential mortgage
|
-
|
-
|
$
|
200
|
2
|
$
|
200
|
2
|
||||||||||||||||
Construction, acquisition and development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Land
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial non-real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total loans
|
-
|
-
|
$
|
200
|
2
|
$
|
200
|
2
|
Number
of
Contracts
|
Accrual
Status
|
Number
of
Contracts
|
Non-
Accrual
Status
|
Total
Number
of
Contracts
|
Total
Modifications
|
|||||||||||||||||||
June 30, 2016
|
||||||||||||||||||||||||
Residential mortgage
|
54
|
$
|
19,833
|
2
|
$
|
887
|
56
|
$
|
20,720
|
|||||||||||||||
Construction, acquisition and Development
|
1
|
70
|
-
|
-
|
1
|
70
|
||||||||||||||||||
Land
|
6
|
876
|
1
|
6
|
7
|
882
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
4
|
2,431
|
2
|
250
|
6
|
2,681
|
||||||||||||||||||
Commercial non-real estate
|
4
|
96
|
-
|
-
|
4
|
96
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
1
|
9
|
-
|
-
|
1
|
9
|
||||||||||||||||||
Total loans
|
70
|
$
|
23,315
|
5
|
$
|
1,143
|
75
|
$
|
24,458
|
|||||||||||||||
December 31, 2015
|
||||||||||||||||||||||||
Residential mortgage
|
55
|
$
|
20,831
|
3
|
$
|
1,071
|
58
|
$
|
21,902
|
|||||||||||||||
Construction, acquisition and development
|
1
|
71
|
-
|
-
|
1
|
71
|
||||||||||||||||||
Land
|
6
|
907
|
1
|
6
|
7
|
913
|
||||||||||||||||||
Lines of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial real estate
|
4
|
2,464
|
2
|
252
|
6
|
2,716
|
||||||||||||||||||
Commercial non-real estate
|
4
|
103
|
-
|
-
|
4
|
103
|
||||||||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Consumer
|
1
|
10
|
-
|
-
|
1
|
10
|
||||||||||||||||||
Total loans
|
71
|
$
|
24,386
|
6
|
$
|
1,329
|
77
|
$
|
25,715
|
Financial Instruments Whose Contract
|
Contract Amount At
|
|||||||
Amounts Represent Credit Risk
|
June 30, 2016
|
December 31, 2015
|
||||||
Standby letters of credit
|
$
|
4,397
|
$
|
5,937
|
||||
Home equity lines of credit
|
7,641
|
7,467
|
||||||
Unadvanced construction commitments
|
20,117
|
21,101
|
||||||
Mortgage loan commitments
|
8,763
|
3,233
|
||||||
Lines of credit
|
29,440
|
27,189
|
||||||
Loans sold with limited repurchase provisions
|
32,288
|
65,107
|
Level 1:
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
|
Level 2:
|
Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.
|
Level 3:
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).
|
June 30, 2016
Fair Value Measurement Using:
|
||||||||||||||||
June 30, 2016
|
Quoted Prices in
Active Markets
For Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Nonrecurring fair value measurements
|
||||||||||||||||
Impaired loans
|
$
|
14,873
|
$
|
-
|
$
|
-
|
$
|
14,873
|
||||||||
Foreclosed real estate
|
360
|
-
|
-
|
360
|
||||||||||||
Total nonrecurring fair value measurements
|
$
|
15,233
|
$
|
-
|
$
|
-
|
$
|
15,233
|
||||||||
Recurring fair value measurements
|
||||||||||||||||
Mortgage servicing rights
|
$
|
486
|
$
|
-
|
$
|
-
|
$
|
486
|
||||||||
Rate lock commitments
|
598
|
-
|
598
|
-
|
||||||||||||
Mandatory forward contracts
|
(80
|
)
|
-
|
(80
|
)
|
-
|
||||||||||
Total recurring fair value measurements
|
$
|
1,004
|
$
|
-
|
$
|
518
|
$
|
486
|
December 31, 2015
Fair Value Measurement Using:
|
||||||||||||||||
December 31, 2015
|
Quoted Prices in
Active Markets
For Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Nonrecurring fair value measurements
|
||||||||||||||||
Impaired loans
|
$
|
17,103
|
$
|
-
|
$
|
-
|
$
|
17,103
|
||||||||
Foreclosed real estate
|
543
|
-
|
-
|
543
|
||||||||||||
Total nonrecurring fair value measurements
|
$
|
17,646
|
$
|
-
|
$
|
-
|
$
|
17,646
|
||||||||
Recurring fair value measurements
|
||||||||||||||||
Mortgage servicing rights
|
$
|
623
|
$
|
-
|
$
|
-
|
$
|
623
|
||||||||
Rate lock commitments
|
141
|
-
|
141
|
-
|
||||||||||||
Mandatory forward contracts
|
111
|
-
|
111
|
-
|
||||||||||||
Total recurring fair value measurements
|
$
|
875
|
$
|
-
|
$
|
252
|
$
|
623
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||||||
Fair Value
Estimate
|
Valuation
Techniques
|
Unobservable Input
|
Range (Weighted
Average)
|
||||||||
June 30, 2016
|
|||||||||||
Mortgage servicing rights
|
$
|
486
|
Market approach
|
Weighted average prepayment speed
|
8.53%
|
|
|||||
December 31, 2015
|
|||||||||||
Mortgage servicing rights
|
$
|
623
|
Market approach
|
Weighted average prepayment speed
|
9.91%
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||||||
Fair Value
Estimate
|
Valuation
Techniques
|
Unobservable Input
|
Range (Weighted
Average)
|
||||||||
June 30, 2016
|
|||||||||||
Impaired loans
|
$
|
11,641
|
PV of future cash flows (1)
|
Discount rate
|
-6.00%
|
|
|||||
3,232
|
Appraisal of collateral (2)
|
Liquidation expenses (3)
|
-6.00%
|
|
|||||||
Foreclosed real estate
|
$
|
360
|
Appraisal of collateral (2),(4)
|
Appraisal adjustments (3)
|
-6.54% to -15.11%
(-14.66%)
|
||||||
December 31, 2015
|
|||||||||||
Impaired loans
|
$
|
13,884
|
PV of future cash flows (1)
|
Discount rate
|
-6.00%
|
|
|||||
$
|
3,219
|
Appraisal of collateral (2)
|
Liquidation expenses (3)
|
-6.00%
|
|
||||||
Foreclosed real estate
|
$
|
543
|
Appraisal of collateral (2),(4)
|
Appraisal adjustments (3)
|
-6.12% to -7.31%
(-6.24%)
|
(1) | Cash flow which generally includes various level 3 inputs which are not identifiable. |
(2) | Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. |
(3) | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
(4) | Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value Measurement at
June 30, 2016
|
||||||||||||||||||||
Carrying
Amount
|
Fair
Value
|
Quoted Prices in
Active Markets
For Identical
Assets
(Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||||||
Financial Assets
|
(dollars in thousands)
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
48,675
|
$
|
48,675
|
$
|
48,7675
|
$
|
-
|
$
|
-
|
||||||||||
Investment securities (HTM)
|
72,580
|
73,987
|
-
|
73,987
|
||||||||||||||||
Loans held for sale
|
13,380
|
13,471
|
-
|
13,471
|
-
|
|||||||||||||||
Loans receivable, net
|
609,096
|
613,252
|
-
|
-
|
613,252
|
|||||||||||||||
FHLB stock
|
5,995
|
5,995
|
-
|
5,995
|
-
|
|||||||||||||||
Accrued interest receivable
|
2,262
|
2,262
|
-
|
2,262
|
-
|
|||||||||||||||
Mortgage servicing rights
|
486
|
486
|
-
|
-
|
486
|
|||||||||||||||
Rate lock commitments
|
598
|
598
|
-
|
598
|
-
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
539,677
|
$
|
540,505
|
-
|
$
|
540,505
|
-
|
||||||||||||
FHLB advances
|
125,000
|
121,175
|
-
|
121,175
|
-
|
|||||||||||||||
Subordinated debentures
|
24,119
|
24,119
|
-
|
-
|
24,119
|
|||||||||||||||
Accrued interest payable
|
408
|
408
|
-
|
408
|
-
|
|||||||||||||||
Mandatory forward contracts
|
80
|
80
|
-
|
80
|
-
|
|||||||||||||||
Off Balance Sheet Commitments
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Fair Value Measurement at
December 31, 2015
|
||||||||||||||||||||
Carrying
Amount
|
Fair
Value
|
Quoted Prices in
Active Markets
For Identical
Assets
(Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||||||
Financial Assets
|
(dollars in thousands)
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
43,591
|
$
|
43,591
|
$
|
43,591
|
$
|
-
|
$
|
-
|
||||||||||
Investment securities (HTM)
|
76,133
|
76,310
|
-
|
76,310
|
-
|
|||||||||||||||
Loans held for sale
|
13,203
|
13,295
|
-
|
13,295
|
-
|
|||||||||||||||
Loans receivable, net
|
589,656
|
593,742
|
-
|
-
|
593,742
|
|||||||||||||||
FHLB stock
|
5,626
|
5,626
|
-
|
5,626
|
-
|
|||||||||||||||
Accrued interest receivable
|
2,218
|
2,218
|
-
|
2,218
|
-
|
|||||||||||||||
Mortgage servicing rights
|
623
|
623
|
-
|
-
|
623
|
|||||||||||||||
Rate lock commitments
|
141
|
141
|
-
|
141
|
-
|
|||||||||||||||
Mandatory forward contracts
|
111
|
111
|
-
|
111
|
-
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
523,771
|
$
|
524,458
|
-
|
524,458
|
-
|
|||||||||||||
FHLB advances
|
115,000
|
110,759
|
-
|
110,759
|
-
|
|||||||||||||||
Subordinated debentures
|
24,119
|
24,119
|
-
|
-
|
24,119
|
|||||||||||||||
Accrued interest payable
|
3,137
|
3,137
|
-
|
3,137
|
-
|
|||||||||||||||
Off Balance Sheet Commitments
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
• | require an entity to determine whether it is a principal or an agent for each distinct good or service (or a distinct bundle of goods or services) to be provided to the customer; |
• | illustrate how an entity that is a principal might apply the control principle to goods, services, or rights to services, when another party is involved in providing goods or services to a customer; |
• | clarify that the purpose of certain specific control indicators is to support or assist in the assessment of whether an entity controls a good or service before it is transferred to the customer, provide more specific guidance on how the indicators should be considered, and clarify that their relevance will vary depending on the facts and circumstances; and |
• | revise existing examples and add two new ones to more clearly depict how the guidance should be applied. |
Principal Amount
|
Rate
|
Maturity
|
||||||||
$
|
25,000
|
0.51% to 1.83%
|
2016
|
|||||||
70,000
|
2.43% to 4.05%
|
2017
|
||||||||
15,000
|
2.58% to 3.43%
|
2018
|
||||||||
15,000
|
4.00%
|
2019
|
||||||||
$
|
125,000
|
Six Months Ended June 30, 2016
|
Six Months Ended June 30, 2015
|
|||||||||||||||||||||||
Average
Volume
|
Interest
|
Yield/Cost
|
Average
Volume
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Loans (1)
|
$
|
604,699
|
$
|
14,368
|
4.75
|
%
|
$
|
630,620
|
$
|
14,992
|
4.75
|
%
|
||||||||||||
Held to maturity securities (2)
|
74,993
|
610
|
1.63
|
%
|
59,742
|
474
|
1.59
|
%
|
||||||||||||||||
Other interest-earning assets (3)
|
9,699
|
168
|
3.46
|
%
|
11,724
|
173
|
2.95
|
%
|
||||||||||||||||
Total interest-earning assets
|
689,391
|
15,146
|
4.39
|
%
|
702,086
|
15,639
|
4.46
|
%
|
||||||||||||||||
Non-interest earning assets
|
77,951
|
73,784
|
||||||||||||||||||||||
Total assets
|
$
|
767,342
|
$
|
775,870
|
||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Savings and checking deposits
|
$
|
249,043
|
308
|
0.25
|
%
|
$
|
244,205
|
326
|
0.27
|
%
|
||||||||||||||
Certificates of deposit
|
278,812
|
1,675
|
1.20
|
%
|
297,322
|
1,697
|
1.14
|
%
|
||||||||||||||||
Borrowings
|
141,537
|
2,387
|
3.37
|
%
|
139,130
|
2,421
|
3.48
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
669,392
|
4,370
|
1.31
|
%
|
680,657
|
4,444
|
1.31
|
%
|
||||||||||||||||
Non-interest bearing liabilities
|
10,959
|
12,660
|
||||||||||||||||||||||
Stockholders' equity
|
86,991
|
82,553
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
767,342
|
$
|
775,870
|
||||||||||||||||||||
Net interest income and interest rate spread
|
$
|
10,776
|
3.08
|
%
|
$
|
11,195
|
3.15
|
%
|
||||||||||||||||
Net interest margin
|
3.13
|
%
|
3.19
|
%
|
||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
102.99
|
%
|
103.15
|
%
|
(1) | Non-accrual loans and loans held for sale are included in the average balances and in the computation of yields. |
(2) | Bancorp does not have any tax-exempt securities. |
(3) | Other interest-earning assets include interest-bearing deposits in other banks, federal funds sold and FHLB stock investments. |
Exhibit No.
|
Description
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
|
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
|
|
32
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101
|
The following financial statements from the Severn Bancorp, Inc. Quarterly Report on Form 10-Q as of June 30, 2016 and for the six months ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) The Consolidated Statements of Financial Condition; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Stockholders’ Equity; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements.
|
SEVERN BANCORP, INC.
|
|||
August 11, 2016
|
Alan J. Hyatt
|
||
Alan J. Hyatt, Chairman of the Board, President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
August 11, 2016
|
Paul B. Susie
|
||
Paul B. Susie,
Executive Vice President, Chief Financial Officer
|
|||
(Principal Financial and Accounting Officer)
|
Exhibit No.
|
Description
|
Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101
|
The following financial statements from the Severn Bancorp, Inc. Quarterly Report on Form 10-Q as of June 30, 2016 and for the six months ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Stockholders’ Equity for the Six Months Ended June 30, 2016 and 2015; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements.
|