Document And Entity Information
v0.0.0.0
Document And Entity Information
9 Months Ended
Sep. 30, 2012
Nov. 09, 2012
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2012  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q3  
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   13,824,697

Consolidated Statements Of Operations
v0.0.0.0
Consolidated Statements Of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
INTEREST AND DIVIDEND INCOME        
Loans including fees $ 7,989 $ 9,955 $ 24,784 $ 31,357
Federal funds sold 1   2 9
Interest-earning deposits with banks 36 48 131 128
Investments 212 65 653 149
Dividends on equity securities (restricted) 28 24 83 74
Total Interest and Dividend Income 8,266 10,092 25,653 31,717
INTEREST EXPENSE        
Demand 27 37 81 126
Savings 57 75 177 399
Time deposits below $100,000 707 1,132 2,364 3,762
Time deposits above $100,000 477 721 1,589 2,295
FHLB Advances 72 225 403 669
Other borrowings 40 45 128 150
Trust Preferred Securities 123 115 370 315
Total Interest Expense 1,503 2,350 5,112 7,716
NET INTEREST INCOME 6,763 7,742 20,541 24,001
PROVISION FOR LOAN LOSSES 967 2,801 4,093 6,258
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 5,796 4,941 16,448 17,743
NONINTEREST INCOME        
Service charges 635 657 1,834 1,816
Fees, commissions and other income 554 496 1,742 1,515
Insurance and investment fees 28 134 260 325
Net realized gains on sale of investment securities 48   385  
Life insurance investment income 90 77 235 253
Total Noninterest Income 1,355 1,364 4,456 3,909
NONINTEREST EXPENSES        
Salaries and employee benefits 3,389 3,864 10,496 11,723
Occupancy and equipment expense 1,047 1,132 3,231 3,276
Advertising and public relations 114 121 325 304
Data processing and telecommunications 434 420 1,323 1,218
FDIC insurance premiums 399 475 1,244 1,571
Other real estate owned and repossessed vehicles, net 1,140 1,986 4,387 4,476
Other operating expenses 1,315 1,115 4,071 3,775
Total Noninterest Expenses 7,838 9,113 25,077 26,343
LOSS BEFORE INCOME TAXES (687) (2,808) (4,173) (4,691)
INCOME TAX EXPENSE (BENEFIT) 776 (976) 2,363 (1,733)
NET LOSS $ (1,463) $ (1,832) $ (6,536) $ (2,958)
Loss Per Share        
Basic $ (0.14) $ (0.18) $ (0.64) $ (0.30)
Fully Diluted $ (0.14) $ (0.18) $ (0.64) $ (0.30)
Average Weighted Shares of Common Stock        
Basic 10,507,724 10,010,178 10,177,237 10,010,178
Fully Diluted 10,507,724 10,010,178 10,177,237 10,010,178

Consolidated Statements Of Comprehensive Income (Loss)
v0.0.0.0
Consolidated Statements Of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Statement of Other Comprehensive Income (Loss) [Abstract]        
Net Loss $ (1,463) $ (1,832) $ (6,536) $ (2,958)
Investment Securities Activity        
Unrealized gains arising during the period 261 58 475 184
Tax related to unrealized gains (89) (20) (162) (63)
Reclassification of realized gains during the period (48)   (385)  
Tax related to realized gains 17   131  
Total other comprehensive income 141 38 59 121
Total comprehensive loss $ (1,322) $ (1,794) $ (6,477) $ (2,837)

Consolidated Balance Sheets
v0.0.0.0
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Dec. 31, 2011
ASSETS    
Cash and due from banks $ 16,976 $ 18,306
Interest-bearing deposits with banks 50,679 72,170
Federal funds sold 2 77
Total Cash and Cash Equivalents 67,657 90,553
Investment Securities Available-for-sale 48,559 32,434
Loans receivable 538,992 597,816
Allowance for loan losses (17,588) (18,380)
Net Loans 521,404 579,436
Bank premises and equipment, net 32,290 33,141
Equity securities (restricted) 2,818 3,573
Other real estate owned 11,368 15,092
Accrued interest receivable 2,516 3,067
Life insurance investments 11,890 11,351
Goodwill and other intangibles 67 123
Deferred taxes 4,789 7,220
Other assets 4,859 4,394
Total Assets 708,217 780,384
Demand Deposits [Abstract]    
Noninterest bearing 109,057 109,629
Interest-bearing 61,261 58,459
Savings deposits 95,359 94,569
Time deposits 387,540 445,658
Total Deposits 653,217 708,315
Federal Home Loan Bank advances 6,858 17,983
Accrued interest payable 1,793 1,796
Accrued expenses and other liabilities 1,735 1,471
Other borrowings   5,450
Trust preferred securities 16,496 16,496
Total Liabilities 680,099 751,511
Commitments and Contingencies      
STOCKHOLDERS' EQUITY    
Common stock - $2.00 par value; 50,000,000 shares authorized; 13,824,697 and 10,010178 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively 27,649 20,020
Common stock warrants 663  
Additional paid-in-capital 19,119 21,689
Retained earnings (deficit) (19,621) (13,085)
Accumulated other comprehensive income 308 249
Total Stockholders' Equity 28,118 28,873
Total Liabilities and Stockholders' Equity $ 708,217 $ 780,384

Consolidated Balance Sheets (Parenthetical)
v0.0.0.0
Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Consolidated Balance Sheets [Abstract]    
Common stock, par value $ 2.00 $ 2.00
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 13,824,697 10,010,178
Common stock, shares outstanding 13,824,697 10,010,178

Consolidated Statements Of Changes In Stockholders' Equity
v0.0.0.0
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, 2010 $ 20,020   $ 21,689 $ (4,175) $ (11) $ 37,523
Balance, Shares at Dec. 31, 2010 10,010,000          
Net loss       (2,958)   (2,958)
Unrealized gain on available-for-sale securities, net of tax         121 121
Balance at Sep. 30, 2011 20,020   21,689 (7,133) 110 34,686
Balance, Shares at Sep. 30, 2011 10,010,000          
Balance at Dec. 31, 2011 20,020   21,689 (13,085) 249 28,873
Balance, Shares at Dec. 31, 2011 10,010,000         10,010,178
Net loss       (6,536)   (6,536)
Conversion of Director Notes plus accrued interest 7,629 663 (2,570)     5,722
Conversion of Director Notes plus accrued interest, shares 3,815,000          
Realized gains on available-for-sale securities, net of $131 tax         (254) (254)
Unrealized gain on available-for-sale securities, net of tax         313 313
Balance at Sep. 30, 2012 $ 27,649 $ 663 $ 19,119 $ (19,621) $ 308 $ 28,118
Balance, Shares at Sep. 30, 2012 13,825,000         13,824,697

Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical)
v0.0.0.0
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Consolidated Statements Of Changes In Stockholders' Equity [Abstract]  
Realized gains on available-for-sale securities, tax $ 131
Unrealized gain on available-for-sale securities, tax $ 162

Consolidated Statements Of Cash Flows
v0.0.0.0
Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (6,536) $ (2,958)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation 1,899 1,903
Provision for loan losses 4,093 6,258
Income (less expenses) on life insurance (539) (253)
Gain on sale of securities available-for-sale (385)  
(Gain) loss on sale of fixed assets (5) 146
Loss (gain) on sale of foreclosed real estate 383 (17)
Adjustment of carrying value of foreclosed real estate 2,983 3,508
Accretion of bond premiums/discounts 397 16
Deferred tax expense 2,401 (305)
Amortization of core deposit intangible 56 79
Net change in:    
Interest receivable 551 532
Other assets (465) (2,080)
Accrued interest payable 269 176
Accrued expenses and other liabilities 264 80
Net Cash Provided by Operating Activities 5,366 7,085
CASH FLOWS FROM INVESTING ACTIVITIES    
Net decrease in loans 47,066 58,201
Purchase of securities available-for-sale (33,203) (16,765)
Proceeds from sale and maturities of securities available-for-sale 17,155 3,925
Sale of Federal Home Loan Bank stock 755 221
Payments for the purchase of property and equipment (1,065) (1,593)
Proceeds from sales of premises and equipment 22 185
Proceeds from sales of other real estate owned 7,231 4,182
Net Cash Provided by Investing Activities 37,961 48,356
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of line of credit borrowings   (4,900)
Net increase in other borrowings   5,200
Repayments to Federal Home Loan Bank (11,125) (5,900)
Net change in:    
Demand deposits 2,230 17,849
Savings deposits 790 (10,617)
Time deposits (58,118) (41,323)
Net Cash Used in Financing Activities (66,223) (39,691)
Net (decrease) increase in cash and cash equivalents (22,896) 15,750
Cash and Cash Equivalents, Beginning of Period 90,553 82,529
Cash and Cash Equivalents, End of Period 67,657 98,279
Supplemental Disclosure of Cash Paid During the Period for:    
Interest 5,115 7,892
Taxes      
Supplemental Disclosure of Non Cash Transactions:    
Other real estate acquired in settlement of foreclosed loans 6,873 6,108
Conversion of Director Notes in other borrowings to common stock (5,450)  
Conversion of accrued interest payable on Director Notes to common stock (272)  
Common stock issued as a result of the conversion of Director Notes $ 5,722  

Nature Of Operations
v0.0.0.0
Nature Of Operations
9 Months Ended
Sep. 30, 2012
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. 


Accounting Principles
v0.0.0.0
Accounting Principles
9 Months Ended
Sep. 30, 2012
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 September 30, 2012, and the results of operations for the three month and nine month periods ended September 30, 2012 and 2011.  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, 2011.  The results of operations for the three month and nine month periods ended September 30, 2012 and 2011 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 is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.


Accounting Principles (Policy)
v0.0.0.0
Accounting Principles (Policy)
9 Months Ended
Sep. 30, 2012
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 September 30, 2012, and the results of operations for the three month and nine month periods ended September 30, 2012 and 2011.  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, 2011.  The results of operations for the three month and nine month periods ended September 30, 2012 and 2011 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 is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.


Formal Written Agreement
v0.0.0.0
Formal Written Agreement
9 Months Ended
Sep. 30, 2012
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 September 30, 2012, 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
v0.0.0.0
Capital
9 Months Ended
Sep. 30, 2012
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 September 30, 2012, the Company and the Bank meet all capital adequacy requirements to which they are subject. 

 

As of September 30, 2012 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 September 30, 2012 and December 31, 2011, 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

September 30, 2012:

Total Capital to Risk Weighted Assets

The Company

$

46,159 
10.36% 
35,650 
8% 

$

N/A

N/A

The Bank

 

48,007 
10.75% 
35,713 
8% 

 

44,641 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

33,688 
7.56% 
17,825 
4% 

 

N/A

N/A

The Bank

 

42,279 
9.47% 
17,857 
4% 

 

26,785 
6% 

Tier 1 Capital to Average Assets:

The Company

 

33,688 
4.74% 
28,454 
4% 

 

N/A

N/A

The Bank

 

42,279 
5.94% 
28,485 
4% 

 

35,607 
5% 

 

 

December 31, 2011:

Total Capital to Risk Weighted Assets

The Company

$

45,856 
9.15% 
40,104 
8% 

$

N/A

N/A

The Bank

 

53,070 
10.56% 
40,189 
8% 

 

50,236 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

32,941 
6.57% 
20,052 
4% 

 

N/A

N/A

The Bank

 

46,641 
9.28% 
20,095 
4% 

 

30,142 
6% 

Tier 1 Capital to Average Assets:

The Company

 

33,461 
4.23% 
31,658 
4% 

 

N/A

N/A

The Bank

 

46,641 
5.99% 
31,160 
4% 

 

38,950 
5% 

 

 

Conversion of Notes to Common Stock and Warrants

 

In December, 2010, the Company borrowed $250,000 from Director Scott White for one year.  The note bore interest at the variable rate of interest equal to the Wall Street Journal prime rate payable at maturity or conversion, was unsecured and was convertible into the Company’s common stock under certain conditions.  In January, 2011, the Company received an additional $250,000 loan from Director Lynn Keene on identical terms.  The purpose of these borrowings was to provide cash for operating expenses of the Company.  On March 16, 2011 Directors Keene and White loaned the Company an additional $4.95 million which, after receiving regulatory approval, the Company used to retire its indebtedness to the FDIC as receiver for Silverton Bank.  The loans had a stated maturity of December 31, 2011 with the same terms as the previous notes. In each case, the Company was obligated to convert the debt into the Company's common stock if, before the stated maturity, the Company conducted an offering of its common stock at the price per share at which it was offered.  If the Company did not conduct an offering prior to the stated maturity, the Company had the option, but not the obligation, to convert the debt into shares of its common stock within 30 days of the stated maturity at a price per share to be established by the Company's Board of Directors.  On December 21, 2011, with regulatory approval the Company consolidated the earlier loans into a loan in the principal amount of $2.8 million from Director White and $2.65 million from Director Keene on the same terms as the previous loans except that the maturity date of the borrowings was extended to June 30, 2012. Prior to their maturity, the maturity of the loans was extended to December 31, 2012 on the same terms. The Company believes this indebtedness was on more favorable terms to the Company than could be obtained from unrelated parties.

 

On September 19, 2012, in conjunction with the public offering of its common stock, the Company converted both notes to common stock and Mr. White received 1,959,889 shares and Mr. Keene received 1,854,630 shares.  Each director also obtained warrants that are immediately exercisable to purchase common stock over the next five years at a price of $1.75 per share.  Mr. White received 391,977 warrants and Mr. Keene received 370,926 warrants. These conversions were made on the same terms as the public offering as required by the notes.  These transactions resulted in Director Keene beneficially owning 16.04% and Director White beneficially owning 19.28% of the Company’s common stock.

 

As a result of this noncash transaction, the Company recorded a $5.7 million increase to stockholders’ equity and reduced other borrowings by $5.45 million and accrued interest payable by $272 thousand.  The $5.7 million increase to stockholders’ equity was allocated by an increase of $7.6 million to common stock, $663 thousand allocated to the commons stock warrants, and a decrease of $2.6 million to additional paid in capital.  The value of the common stock warrants was calculated using the Black-Scholes Option Pricing Model.


Capital (Tables)
v0.0.0.0
Capital (Tables)
9 Months Ended
Sep. 30, 2012
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

September 30, 2012:

Total Capital to Risk Weighted Assets

The Company

$

46,159 
10.36% 
35,650 
8% 

$

N/A

N/A

The Bank

 

48,007 
10.75% 
35,713 
8% 

 

44,641 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

33,688 
7.56% 
17,825 
4% 

 

N/A

N/A

The Bank

 

42,279 
9.47% 
17,857 
4% 

 

26,785 
6% 

Tier 1 Capital to Average Assets:

The Company

 

33,688 
4.74% 
28,454 
4% 

 

N/A

N/A

The Bank

 

42,279 
5.94% 
28,485 
4% 

 

35,607 
5% 

 

 

December 31, 2011:

Total Capital to Risk Weighted Assets

The Company

$

45,856 
9.15% 
40,104 
8% 

$

N/A

N/A

The Bank

 

53,070 
10.56% 
40,189 
8% 

 

50,236 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

32,941 
6.57% 
20,052 
4% 

 

N/A

N/A

The Bank

 

46,641 
9.28% 
20,095 
4% 

 

30,142 
6% 

Tier 1 Capital to Average Assets:

The Company

 

33,461 
4.23% 
31,658 
4% 

 

N/A

N/A

The Bank

 

46,641 
5.99% 
31,160 
4% 

 

38,950 
5% 

 


Capital (Narrative) (Details)
v0.0.0.0
Capital (Narrative) (Details) (USD $)
1 Months Ended 9 Months Ended 9 Months Ended
Dec. 31, 2011
Sep. 30, 2012
Sep. 19, 2012
Mar. 16, 2011
Jan. 31, 2011
Dec. 31, 2010
Sep. 19, 2012
Director White [Member]
item
Dec. 21, 2011
Director White [Member]
Sep. 19, 2012
Director Keene [Member]
item
Dec. 21, 2011
Director Keene [Member]
Sep. 30, 2012
Common Stock [Member]
Sep. 30, 2012
Common Stock Warrants [Member]
Sep. 30, 2012
Additional Paid In Capital [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]                          
Company borrowings from Director       $ 4,950,000 $ 250,000 $ 250,000              
Duration of borrowings from director         1 year 1 year              
Convert debt into common shares 30 days                        
Principal amount of consolidated loan               2,800,000   2,650,000      
Common stock received from conversion of note             1,959,889   1,854,630        
Duration to purchase common stock through warrants     5 years                    
Warrants exercise price to purchase common stock     $ 1.75                    
Warrants received             391,977   370,926        
Percentage ownership             19.28%   16.04%        
Increase in stockholders' equity   5,700,000                 7,600,000 663,000 2,600,000
Reduction in other borrowings   5,450,000                      
Reduction in accrued interest payable   $ 272,000                      

Capital (Schedule Of Capital Requirements) (Details)
v0.0.0.0
Capital (Schedule Of Capital Requirements) (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
The Company [Member]
   
Total Capital to Risk Weighted Assets, Actual, Amount $ 46,159,000 $ 45,856,000
Total Capital to Risk Weighted Assets, Actual, Ratio 10.36% 9.15%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount 35,650,000 40,104,000
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio 8.00% 8.00%
Tier 1 Capital Risk Weighted Assets, Actual, Amount 33,688,000 32,941,000
Tier 1 Capital Risk Weighted Assets, Actual, Ratio 7.56% 6.57%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount 17,825,000 20,052,000
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio 4.00% 4.00%
Tier 1 Capital to Average Assets, Actual, Amount 33,688,000 33,461,000
Tier 1 Capital to Average Assets, Actual, Ratio 4.74% 4.23%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount 28,454,000 31,658,000
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 48,007,000 53,070,000
Total Capital to Risk Weighted Assets, Actual, Ratio 10.75% 10.56%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount 35,713,000 40,189,000
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 44,641,000 50,236,000
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 42,279,000 46,641,000
Tier 1 Capital Risk Weighted Assets, Actual, Ratio 9.47% 9.28%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount 17,857,000 20,095,000
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 26,785,000 30,142,000
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 42,279,000 46,641,000
Tier 1 Capital to Average Assets, Actual, Ratio 5.94% 5.99%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount 28,485,000 31,160,000
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 $ 35,607,000 $ 38,950,000
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio 5.00% 5.00%

Investment Securities
v0.0.0.0
Investment Securities
9 Months Ended
Sep. 30, 2012
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

September 30, 2012

U.S. Government Agencies

$

25,602 

$

258 

$

21 

$

25,839 

Taxable municipals

853 
850 

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

21,638 
233 
21,870 

Total Securities AFS

$

48,093 

$

493 

$

27 

$

48,559 

 

December 31, 2011

U.S. Government Agencies

$

21,405 

$

238 

$

10 

$

21,633 

Taxable municipals

1,465 
89 
1,552 

Tax-exempt municipals

1,043 
11 

-

1,054 

Mortgage backed securities

8,144 
67 
16 
8,195 

Total Securities AFS

$

32,057 

$

405 

$

28 

$

32,434 

 

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 September 30, 2012 and December 31, 2011.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

2,911 

$

21 

$

-

$

-

$

2,911 

$

21 

 

Taxable municipals

 

280 

 

 

-

 

-

 

280 

 

 

Mtg. backed securities

 

743 

 

 

-

 

-

 

743 

 

 

Total Securities AFS

$

3,934 

$

27 

$

-

$

-

$

3,934 

$

27 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

5,592 

$

10 

$

-

$

-

$

5,592 

$

10 

 

Taxable municipals

 

572 

 

 

-

 

-

 

572 

 

 

Mtg. backed securities

 

4,055 

 

16 

 

-

 

-

 

4,055 

 

16 

 

Total Securities AFS

$

10,219 

$

28 

$

-

$

-

$

10,219 

$

28 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2012, the available-for-sale portfolio included five investments for which the fair market value was less than amortized cost.  At December 31, 2011, the available-for-sale portfolio included eleven 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 September 30, 2012, 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

1,503 
1,510 
1.01% 

Due after five years through fifteen years

 

12,274 

 

12,403 

 

1.73% 

Due after fifteen years

 

34,316 

 

34,646 

 

2.15% 

Total

$

48,093 

$

48,559 

 

2.01% 

 

Investment securities with a carrying value of $18.9 million and $15.7 million at September 30, 2012 and December 31, 2011, 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 $2.8 million and $3.6 million as of September 30, 2012 and December 31, 2011, respectively.


Investment Securities (Tables)
v0.0.0.0
Investment Securities (Tables)
9 Months Ended
Sep. 30, 2012
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

September 30, 2012

U.S. Government Agencies

$

25,602 

$

258 

$

21 

$

25,839 

Taxable municipals

853 
850 

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

21,638 
233 
21,870 

Total Securities AFS

$

48,093 

$

493 

$

27 

$

48,559 

 

December 31, 2011

U.S. Government Agencies

$

21,405 

$

238 

$

10 

$

21,633 

Taxable municipals

1,465 
89 
1,552 

Tax-exempt municipals

1,043 
11 

-

1,054 

Mortgage backed securities

8,144 
67 
16 
8,195 

Total Securities AFS

$

32,057 

$

405