Document And Entity Information
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Document And Entity Information
6 Months Ended
Jun. 30, 2013
Aug. 06, 2013
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2013  
Document Fiscal Year Focus 2013  
Document Fiscal Period Focus Q2  
Entity Registrant Name NEW PEOPLES BANKSHARES INC  
Entity Central Index Key 0001163389  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   21,871,063

Consolidated Statements Of Operations
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Consolidated Statements Of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
INTEREST AND DIVIDEND INCOME        
Loans including fees $ 7,370 $ 8,047 $ 14,623 $ 16,795
Federal funds sold   1 1 1
Interest-earning deposits with banks 53 48 103 95
Investments 195 240 392 441
Dividends on equity securities (restricted) 36 29 64 55
Total Interest and Dividend Income 7,654 8,365 15,183 17,387
INTEREST EXPENSE        
Demand 19 28 49 54
Savings 48 58 116 120
Time deposits below $100,000 556 782 1,138 1,657
Time deposits above $100,000 397 525 803 1,112
FHLB Advances 62 150 126 331
Other borrowings   44   88
Trust Preferred Securities 117 125 230 247
Total Interest Expense 1,199 1,712 2,462 3,609
NET INTEREST INCOME 6,455 6,653 12,721 13,778
PROVISION FOR LOAN LOSSES   1,176 550 3,126
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 6,455 5,477 12,171 10,652
NONINTEREST INCOME        
Service charges 565 642 1,098 1,199
Fees, commissions and other income 586 573 1,307 1,188
Insurance and investment fees 97 123 174 232
Net realized gains on sale of investment securities   265 99 337
Life insurance investment income 29 31 68 145
Total Noninterest Income 1,277 1,634 2,746 3,101
NONINTEREST EXPENSES        
Salaries and employee benefits 3,211 3,509 6,657 7,107
Occupancy and equipment expense 1,027 1,085 2,108 2,184
Advertising and public relations 124 121 197 211
Data processing and telecommunications 465 450 876 889
FDIC insurance premiums 379 414 755 845
Other real estate owned and repossessed vehicles, net 255 1,273 632 3,247
Other operating expenses 1,360 1,400 2,615 2,756
Total Noninterest Expenses 6,821 8,252 13,840 17,239
INCOME (LOSS) BEFORE INCOME TAXES 911 (1,141) 1,077 (3,486)
INCOME TAX EXPENSE (34) 1,397 (15) 1,587
NET INCOME (LOSS) $ 945 $ (2,538) $ 1,092 $ (5,073)
Income (Loss) Per Share        
Basic $ 0.04 $ (0.25) $ 0.05 $ (0.51)
Fully Diluted $ 0.04 $ (0.25) $ 0.05 $ (0.51)
Average Weighted Shares of Common Stock        
Basic 21,871,063 10,010,178 21,869,768 10,010,178
Fully Diluted 21,871,063 10,010,178 21,869,768 10,010,178

Consolidated Statements Of Comprehensive Income (Loss)
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Consolidated Statements Of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Statement of Other Comprehensive Income (Loss) [Abstract]        
NET INCOME (LOSS) $ 945 $ (2,538) $ 1,092 $ (5,073)
Investment Securities Activity        
Unrealized gains (losses) arising during the period (708) 396 (856) 214
Tax related to unrealized gains 241 (135) 292 (73)
Reclassification of realized gains during the period   (265) (99) (337)
Tax related to realized gains   90 33 114
TOTAL OTHER COMPREHENSIVE LOSS (467) 86 (630) (82)
TOTAL COMPREHENSIVE INCOME (LOSS) $ 478 $ (2,452) $ 462 $ (5,155)

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
ASSETS    
Cash and due from banks $ 17,068 $ 17,517
Interest-bearing deposits with banks 54,683 76,590
Federal funds sold 4 2
Total Cash and Cash Equivalents 71,755 94,109
Investment Securities Available-for-sale 62,215 49,615
Loans receivable 510,028 522,363
Allowance for loan losses (14,244) (16,810)
Net Loans 495,784 505,553
Bank premises and equipment, net 30,459 31,190
Equity securities (restricted) 2,704 2,803
Other real estate owned 14,272 13,869
Accrued interest receivable 2,266 2,374
Life insurance investments 12,097 11,964
Goodwill and other intangibles 25 53
Deferred taxes 5,014 4,686
Other assets 2,647 2,799
Total Assets 699,238 719,015
Demand Deposits [Abstract]    
Noninterest bearing 101,100 98,432
Interest-bearing 71,312 68,665
Savings deposits 100,555 113,280
Time deposits 359,670 372,473
Total Deposits 632,637 652,850
Federal Home Loan Bank advances 5,958 6,558
Accrued interest payable 2,083 1,880
Accrued expenses and other liabilities 1,762 1,365
Trust preferred securities 16,496 16,496
Total Liabilities 658,936 679,149
Commitments and Contingencies      
STOCKHOLDERS' EQUITY    
Common stock - $2.00 par value; 50,000,000 shares authorized; 21,871,063 and 21,865,535 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively 43,742 43,731
Common stock warrants 2,051 2,056
Additional paid-in-capital 13,049 13,081
Retained earnings (deficit) (18,317) (19,409)
Accumulated other comprehensive income (223) 407
Total Stockholders' Equity 40,302 39,866
Total Liabilities and Stockholders' Equity $ 699,238 $ 719,015

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Consolidated Balance Sheets [Abstract]    
Common stock, par value $ 2.00  
Common stock, shares authorized 50,000,000  
Common stock, shares issued 21,871,063 21,865,535
Common stock, shares outstanding 21,871,063 21,865,535

Consolidated Statements Of Changes In Stockholders' Equity
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Consolidated Statements Of Changes In Stockholders' Equity (USD $)
In Thousands, except Share data
Common Stock [Member]
Common Stock Warrants [Member]
Additional Paid In Capital [Member]
Retained Earnings (Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Balance at Dec. 31, 2011 $ 20,020   $ 21,689 $ (13,085) $ 249 $ 28,873
Balance, Shares at Dec. 31, 2011 10,010,000          
Net income (loss)       (5,073)   (5,073)
Other comprehensive income, net of tax         (82) (82)
Balance at Jun. 30, 2012 20,020   21,689 (18,158) 167 23,718
Balance, Shares at Jun. 30, 2012 10,010,000          
Balance at Dec. 31, 2012 43,731 2,056 13,081 (19,409) 407 39,866
Balance, Shares at Dec. 31, 2012 21,866,000         21,865,535
Net income (loss)       1,092   1,092
Exercise of Common Stock Warrants, Amount 11 (5) 5     11
Exercise of Common Stock Warrants, Shares 5,000          
Stock offering costs     (37)     (37)
Other comprehensive income, net of tax         (630) (630)
Balance at Jun. 30, 2013 $ 43,742 $ 2,051 $ 13,049 $ (18,317) $ (223) $ 40,302
Balance, Shares at Jun. 30, 2013 21,871,000         21,871,063

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ 1,092 $ (5,073)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation 1,184 1,277
Provision for loan losses 550 3,126
Income (less expenses) on life insurance (133) (450)
Gain on sale of securities available-for-sale (99) (337)
(Gain) loss on sale of fixed assets 29 (5)
Loss (gain) on sale of foreclosed real estate (27) 201
Adjustment of carrying value of foreclosed real estate 157 2,316
Accretion of bond premiums/discounts 420 238
Deferred tax expense (4) 1,617
Amortization of core deposit intangible 28 42
Net change in:    
Interest receivable 108 419
Other assets 152 (125)
Accrued interest payable 203 158
Accrued expenses and other liabilities 397 31
Net Cash Provided by Operating Activities 4,057 3,435
CASH FLOWS FROM INVESTING ACTIVITIES    
Net decrease in loans 5,897 35,911
Purchase of securities available-for-sale (23,137) (27,109)
Proceeds from sale and maturities of securities available-for-sale 9,262 13,331
Sale of Federal Home Loan Bank stock 309 225
Purchase of Federal Reserve Bank stock (210)  
Payments for the purchase of property and equipment (862) (915)
Proceeds from sales of premises and equipment 380 21
Proceeds from sales of other real estate owned 2,789 5,339
Net Cash Provided by Investing Activities (5,572) 26,803
CASH FLOWS FROM FINANCING ACTIVITIES    
Exercise of common stock warrants 11  
Stock offering costs (37)  
Repayments to Federal Home Loan Bank (600) (10,825)
Net change in:    
Demand deposits 5,315 4,037
Savings deposits (12,725) (2,749)
Time deposits (12,803) (40,266)
Net Cash Used in Financing Activities (20,839) (49,803)
Net (decrease) increase in cash and cash equivalents (22,354) (19,565)
Cash and Cash Equivalents, Beginning of Period 94,109 90,553
Cash and Cash Equivalents, End of Period 71,755 70,988
Supplemental Disclosure of Cash Paid During the Period for:    
Interest 2,259 3,767
Taxes      
Supplemental Disclosure of Non Cash Transactions:    
Other real estate acquired in settlement of foreclosed loans $ 3,322 $ 4,361

Nature Of Operations
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Nature Of Operations
6 Months Ended
Jun. 30, 2013
Nature Of Operations [Abstract]  
Nature Of Operations

NOTE 1  NATURE OF OPERATIONS:

 

New Peoples Bankshares, Inc. (“The Company”) is a bank holding company whose principal activity is the ownership and management of a community bank.  New Peoples Bank, Inc. (“Bank”) was organized and incorporated under the laws of the Commonwealth of Virginia on December 9, 1997.  The Bank commenced operations on October 28, 1998, after receiving regulatory approval.  As a state chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Bank.  The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwestern Virginia, southern West Virginia, and eastern Tennessee.  On June 9, 2003, the Company formed two wholly owned subsidiaries, NPB Financial Services, Inc. and NPB Web Services, Inc.  On July 7, 2004 the Company established NPB Capital Trust I for the purpose of issuing trust preferred securities.  On September 27, 2006, the Company established NPB Capital Trust 2 for the purpose of issuing additional trust preferred securities.  NPB Financial Services, Inc. was a subsidiary of the Company until January 1, 2009 when it became a subsidiary of the Bank.  In June 2012 the name of NPB Financial Services, Inc. was changed to NPB Insurance Services, Inc. which operates solely as an insurance agency.    


Accounting Principles
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Accounting Principles
6 Months Ended
Jun. 30, 2013
Accounting Principles [Abstract]  
Accounting Principles

NOTE 2  ACCOUNTING PRINCIPLES:

 

The financial statements conform to U. S. generally accepted accounting principles and to general industry practices.  In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at June 30, 2013, and the results of operations for the three and six month periods ended June 30, 2013 and 2012.  The notes included herein should be read in conjunction with the notes to financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  The results of operations for the three and six month periods ended June 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the full year.

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at 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.  The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.


Accounting Principles (Policy)
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Accounting Principles (Policy)
6 Months Ended
Jun. 30, 2013
Accounting Principles [Abstract]  
Basis of Accounting

The financial statements conform to U. S. generally accepted accounting principles and to general industry practices.  In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at June 30, 2013, and the results of operations for the three and six month periods ended June 30, 2013 and 2012.  The notes included herein should be read in conjunction with the notes to financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  The results of operations for the three and six month periods ended June 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the full year.

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at 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.  The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.


Formal Written Agreement
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Formal Written Agreement
6 Months Ended
Jun. 30, 2013
Formal Written Agreement [Abstract]  
Formal Written Agreement

NOTE 3  FORMAL WRITTEN AGREEMENT:

Effective July 29, 2010, the Company and the Bank entered into a written agreement with the Federal Reserve Bank of Richmond (“Reserve Bank”) and the Virginia State Corporation Commission Bureau of Financial Institutions (the “Bureau”) called (the “Written Agreement”).  At June 30, 2013, we believe we have not yet achieved full compliance with the Written Agreement but we have made progress in our compliance efforts under the Written Agreement and all of the written plans required to date, as discussed in the following paragraphs, have been submitted on a timely basis. 

 

Under the terms of the Written Agreement, the Bank has agreed to develop and submit for approval within specified  time periods written plans to: (a) strengthen board oversight of management and the Bank’s operation; (b) if appropriate after review, to strengthen the Bank’s management and board governance; (c) strengthen credit risk management policies; (d) enhance lending and credit administration; (e) enhance the Bank’s management of commercial real estate concentrations; (f) conduct ongoing review and grading of the Bank’s loan portfolio; (g) improve the Bank’s position with respect to loans, relationships, or other assets in excess of $1 million which are now or in the future become past due more than 90 days, which are on the Bank’s problem loan list, or which are adversely classified in any report of examination of the Bank; (h) review and revise, as appropriate, current policy and maintain sound processes for maintaining an adequate allowance for loan and lease losses; (i) enhance management of the Bank’s liquidity position and funds management practices; (j) revise its contingency funding plan; (k)  revise its strategic plan; and (l)  enhance the Bank’s anti-money laundering and related activities. 

In addition, the Bank has agreed that it will: (a) not extend, renew, or restructure any credit that has been criticized by the Reserve Bank or the Bureau absent prior board of directors approval in accordance with the restrictions in the Written Agreement; (b) eliminate all assets or portions of assets classified as “loss” and thereafter charge off all assets classified as “loss” in a federal or state report of examination, unless otherwise approved by the Reserve Bank.

Under the terms of the Written Agreement, both the Company and the Bank have agreed to submit capital plans to maintain sufficient capital at the Company, on a consolidated basis, and the Bank, on a stand-alone basis, and to refrain from declaring or paying dividends without prior regulatory approval. The Company has agreed that it will not take any other form of payment representing a reduction in the Bank’s capital or make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without prior regulatory approval. The Company may not incur, increase or guarantee any debt without prior regulatory approval and has agreed not to purchase or redeem any shares of its stock without prior regulatory approval.

 

Under the terms of the Written Agreement, the Company and the Bank have appointed a committee to monitor compliance with the Written Agreement. The directors of the Company and the Bank have recognized and unanimously agree with the common goal of financial soundness represented by the Written Agreement and have confirmed the intent of the directors and executive management to diligently seek to comply with all requirements of the Written Agreement.


Capital
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Capital
6 Months Ended
Jun. 30, 2013
Capital [Abstract]  
Capital

NOTE 4  CAPITAL:

 

Capital Requirements and Ratios

 

The Company and the Bank are subject to various capital requirements administered by federal banking agencies.  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 Company’s and the Bank’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.  Prompt corrective action provisions are not applicable to bank holding companies.

 

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined).  Management believes that, as of June 30, 2013, the Company and the Bank meet all capital adequacy requirements to which they are subject. 

 

As of June 30, 2013, the Bank was well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables.  There are no conditions or events since the notification that management believes have changed the Company’s and Bank’s category. 

 

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table as of June 30, 2013 and December 31, 2012, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

Actual

Minimum Capital Requirement

Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions

(Dollars are in thousands)

Amount

Ratio

Amount

Ratio

 

Amount

Ratio

June 30, 2013:

Total Capital to Risk Weighted Assets

The Company

$

58,417 
13.93% 
33,541 
8% 

$

N/A

N/A

The Bank

 

56,507 
13.45% 
33,600 
8% 

 

42,000 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

50,565 
12.06% 
16,770 
4% 

 

N/A

N/A

The Bank

 

51,146 
12.18% 
16,800 
4% 

 

25,200 
6% 

Tier 1 Capital to Average Assets:

The Company

 

50,565 
7.24% 
27,951 
4% 

 

N/A

N/A

The Bank

 

51,146 
7.31% 
27,986 
4% 

 

34,983 
5% 

 

 

December 31, 2012:

Total Capital to Risk Weighted Assets

The Company

$

57,894 
13.51% 
34,291 
8% 

$

N/A

N/A

The Bank

 

55,315 
12.88% 
34,353 
8% 

 

42,941 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

49,530 
11.56% 
17,146 
4% 

 

N/A

N/A

The Bank

 

49,806 
11.60% 
17,176 
4% 

 

25,765 
6% 

Tier 1 Capital to Average Assets:

The Company

 

49,530 
7.05% 
28,092 
4% 

 

N/A

N/A

The Bank

 

49,806 
7.08% 
28,120 
4% 

 

35,150 
5% 

 


Capital (Tables)
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Capital (Tables)
6 Months Ended
Jun. 30, 2013
Capital [Abstract]  
Schedule Of Capital Requirements

 

 

 

 

 

 

 

 

 

 

 

Actual

Minimum Capital Requirement

Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions

(Dollars are in thousands)

Amount

Ratio

Amount

Ratio

 

Amount

Ratio

June 30, 2013:

Total Capital to Risk Weighted Assets

The Company

$

58,417 
13.93% 
33,541 
8% 

$

N/A

N/A

The Bank

 

56,507 
13.45% 
33,600 
8% 

 

42,000 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

50,565 
12.06% 
16,770 
4% 

 

N/A

N/A

The Bank

 

51,146 
12.18% 
16,800 
4% 

 

25,200 
6% 

Tier 1 Capital to Average Assets:

The Company

 

50,565 
7.24% 
27,951 
4% 

 

N/A

N/A

The Bank

 

51,146 
7.31% 
27,986 
4% 

 

34,983 
5% 

 

 

December 31, 2012:

Total Capital to Risk Weighted Assets

The Company

$

57,894 
13.51% 
34,291 
8% 

$

N/A

N/A

The Bank

 

55,315 
12.88% 
34,353 
8% 

 

42,941 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

49,530 
11.56% 
17,146 
4% 

 

N/A

N/A

The Bank

 

49,806 
11.60% 
17,176 
4% 

 

25,765 
6% 

Tier 1 Capital to Average Assets:

The Company

 

49,530 
7.05% 
28,092 
4% 

 

N/A

N/A

The Bank

 

49,806 
7.08% 
28,120 
4% 

 

35,150 
5% 

 


Capital (Schedule Of Capital Requirements) (Details)
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Capital (Schedule Of Capital Requirements) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
The Company [Member]
   
Total Capital to Risk Weighted Assets, Actual, Amount $ 58,417 $ 57,894
Total Capital to Risk Weighted Assets, Actual, Ratio 13.93% 13.51%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount 33,541 34,291
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio 8.00% 8.00%
Tier 1 Capital Risk Weighted Assets, Actual, Amount 50,565 49,530
Tier 1 Capital Risk Weighted Assets, Actual, Ratio 12.06% 11.56%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount 16,770 17,146
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio 4.00% 4.00%
Tier 1 Capital to Average Assets, Actual, Amount 50,565 49,530
Tier 1 Capital to Average Assets, Actual, Ratio 7.24% 7.05%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount 27,951 28,092
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio 4.00% 4.00%
The Bank [Member]
   
Total Capital to Risk Weighted Assets, Actual, Amount 56,507 55,315
Total Capital to Risk Weighted Assets, Actual, Ratio 13.45% 12.88%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount 33,600 34,353
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio 8.00% 8.00%
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount 42,000 42,941
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 10.00% 10.00%
Tier 1 Capital Risk Weighted Assets, Actual, Amount 51,146 49,806
Tier 1 Capital Risk Weighted Assets, Actual, Ratio 12.18% 11.60%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount 16,800 17,176
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio 4.00% 4.00%
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount 25,200 25,765
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 6.00% 6.00%
Tier 1 Capital to Average Assets, Actual, Amount 51,146 49,806
Tier 1 Capital to Average Assets, Actual, Ratio 7.31% 7.08%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount 27,986 28,120
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio 4.00% 4.00%
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount $ 34,983 $ 35,150
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 5.00% 5.00%

Investment Securities
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Investment Securities
6 Months Ended
Jun. 30, 2013
Investment Securities [Abstract]  
Investment Securities

NOTE 5  INVESTMENT SECURITIES:

 

The amortized cost and estimated fair value of securities (all available-for-sale) are as follows:

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

Approximate

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

(Dollars are in thousands)

Cost

 

Gains

 

Losses

 

Value

June 30, 2013

U.S. Government Agencies

$

28,049 

$

316 

$

246 

$

28,119 

Taxable municipals

-

-

-

-

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

34,505 
50 
459 
34,096 

Total Securities AFS

$

62,554 

$

366 

$

705 

$

62,215 

 

December 31, 2012

U.S. Government Agencies

$

23,177 

$

473 

$

13 

$

23,637 

Taxable municipals

-

-

-

-

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

25,822 
210 
54 
25,978 

Total Securities AFS

$

48,999 

$

683 

$

67 

$

49,615 

 

The following table details unrealized losses and related fair values in the available-for-sale portfolio.  This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2013 and December 31, 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

(Dollars are in thousands)

 

Fair Value

 

Unrealized

Losses

 

Fair

Value

 

Unrealized

Losses

 

Fair

Value

 

Unrealized

Losses

 

June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

12,378 

$

244 

$

675 

$

$

13,053 

$

246 

 

Mtg. backed securities

 

24,272 

 

459 

 

-

 

-

 

24,272 

 

459 

 

Total Securities AFS

$

36,650 

$

703 

$

675 

$

$

37,325 

$

705 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

2,931 

$

13 

$

-

$

-

$

2,931 

$

13 

 

Mtg. backed securities

 

7,491 

 

54 

 

-

 

-

 

7,491 

 

54 

 

Total Securities AFS

$

10,422 

$

67 

$

-

$

-

$

10,422 

$

67 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2013, the available-for-sale portfolio included forty six investments for which the fair market value was less than amortized cost.  At December 31, 2012, the available-for-sale portfolio included ten investments for which the fair market value was less than amortized cost.  Management evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  No securities had an other than temporary impairment.

 

The amortized cost and fair value of investment securities at June 30, 2013, by contractual maturity, are shown in the following schedule.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

 

 

 

 

 

 

Weighted

(Dollars are in thousands)

Amortized

 

Fair

 

Average

Securities Available for Sale

Cost

 

Value

 

Yield

Due in one year or less

$

-

$

-

 

-%

Due after one year through five years

1,434 
1,430 
0.98% 

Due after five years through fifteen years

 

19,539 

 

19,377 

 

1.48% 

Due after fifteen years

 

41,581 

 

41,408 

 

1.63% 

Total

$

62,554 

$

62,215 

 

1.57% 

 

Investment securities with a carrying value of $17.0 million and $18.4 million at June 30, 2013 and December 31, 2012, were pledged to secure public deposits, overnight payment processing and for other purposes required by law.

 

The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. These equity securities are restricted from trading and are recorded at a cost of $2.7 million and $2.8 million as of June 30, 2013 and December 31, 2012, respectively.


Investment Securities (Tables)
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Investment Securities (Tables)
6 Months Ended
Jun. 30, 2013
Investment Securities [Abstract]  
Schedule Of Securities Amortized Cost And Estimated Fair Value

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

Approximate

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

(Dollars are in thousands)

Cost

 

Gains

 

Losses

 

Value

June 30, 2013

U.S. Government Agencies

$

28,049 

$

316 

$

246 

$

28,119 

Taxable municipals

-

-

-

-

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

34,505 
50 
459 
34,096 

Total Securities AFS

$

62,554 

$

366 

$

705 

$

62,215 

 

December 31, 2012

U.S. Government Agencies

$

23,177 

$

473 

$

13 

$

23,637 

Taxable municipals

-

-

-

-

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

25,822 
210 
54 
25,978 

Total Securities AFS

$

48,999 

$

683 

$

67 

$

49,615 

 

Schedule Of Fair Value And Gross Unrealized Losses On Investment Securities In A Continuous Unrealized Loss Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

(Dollars are in thousands)

 

Fair Value

 

Unrealized

Losses

 

Fair

Value

 

Unrealized

Losses

 

Fair

Value

 

Unrealized

Losses

 

June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

12,378 

$

244 

$

675 

$

$

13,053 

$

246 

 

Mtg. backed securities

 

24,272 

 

459 

 

-

 

-

 

24,272 

 

459 

 

Total Securities AFS

$

36,650 

$

703 

$

675 

$

$

37,325 

$

705 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

2,931 

$

13 

$

-

$

-

$

2,931 

$

13 

 

Mtg. backed securities

 

7,491 

 

54 

 

-

 

-

 

7,491 

 

54 

 

Total Securities AFS

$

10,422 

$

67 

$

-

$

-

$

10,422 

$

67 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Amortized Cost And Fair Value Of Investment Securities Contractual Maturity

 

 

 

 

 

 

 

 

Weighted

(Dollars are in thousands)

Amortized

 

Fair

 

Average

Securities Available for Sale

Cost

 

Value

 

Yield

Due in one year or less

$

-

$

-

 

-%

Due after one year through five years

1,434 
1,430 
0.98% 

Due after five years through fifteen years

 

19,539 

 

19,377 

 

1.48% 

Due after fifteen years

 

41,581 

 

41,408 

 

1.63% 

Total

$

62,554 

$

62,215 

 

1.57% 

 


Investment Securities (Schedule Of Securities Amortized Cost And Estimated Fair Value) (Details)
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Investment Securities (Schedule Of Securities Amortized Cost And Estimated Fair Value) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 62,554 $ 48,999
Gross Unrealized Gains 366 683
Gross Unrealized Losses 705 67
Approximate Fair Value 62,215 49,615
U.S. Government Agencies [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 28,049 23,177
Gross Unrealized Gains 316 473
Gross Unrealized Losses 246 13
Approximate Fair Value 28,119 23,637
Taxable Municipals [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost      
Gross Unrealized Gains      
Gross Unrealized Losses      
Approximate Fair Value      
Tax-Exempt Municipals [Member]
   
Schedule of Available-for-sale Securities [Line Items]