|
Maryland
|
|
52-1974638
|
|
|
(State or Other Jurisdiction of
|
|
(I.R.S. Employer
|
|
|
Incorporation or Organization)
|
|
Identification No.)
|
|
|
28969 Information Lane, Easton, Maryland
|
21601
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
Title of Each Class:
|
|
Name of Each Exchange on Which Registered:
|
Common stock, par value $.01 per share
|
|
Nasdaq Global Select Market
|
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer ¨
|
Smaller Reporting Company þ
|
Part I
|
|
|
Item 1.
|
Business
|
4
|
Item 1A.
|
Risk Factors
|
16
|
Item 1B.
|
Unresolved Staff Comments
|
25
|
Item 2.
|
Properties
|
25
|
Item 3.
|
Legal Proceedings
|
26
|
Item 4.
|
Mine Safety Disclosures
|
26
|
|
|
|
Part II
|
|
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and
|
|
|
Issuer Purchases of Equity Securities
|
27
|
Item 6.
|
Selected Financial Data
|
29
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
30
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
46
|
Item 8.
|
Financial Statements and Supplementary Data
|
46
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
87
|
Item 9A.
|
Controls and Procedures
|
87
|
Item 9B.
|
Other Information
|
87
|
|
|
|
Part III
|
|
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
87
|
Item 11.
|
Executive Compensation
|
88
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
88
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
88
|
Item 14.
|
Principal Accountant Fees and Services
|
88
|
|
|
|
Part IV
|
|
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
89
|
SIGNATURES
|
90
|
|
|
|
|
EXHIBIT LIST
|
91
|
· | general economic conditions, whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products, our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that we own or that is the collateral for our loans; |
· | results of examinations of us by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses or to write-down assets; |
· | changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or our subsidiary banks in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; |
· | changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our balance sheet; |
· | our liquidity requirements could be adversely affected by changes in our assets and liabilities; |
· | the effect of legislative or regulatory developments, including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services industry; |
· | competitive factors among financial services organizations, including product and pricing pressures and our ability to attract, develop and retain qualified banking professionals; |
· | the growth and profitability of non-interest or fee income being less than expected; |
· | the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board and other regulatory agencies; and |
· | the effect of fiscal and governmental policies of the United States federal government. |
3 | ||
Item 1. | Business. |
4 | ||
5 | ||
|
|
|
|
% of
|
|
|
Kent County, Maryland
|
|
Deposits
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
|
|
Peoples Bank of Kent County, Maryland
|
|
$
|
181,128
|
|
34.36
|
%
|
PNC Bank, NA
|
|
|
152,604
|
|
28.95
|
|
Chesapeake Bank and Trust Co.
|
|
|
69,059
|
|
13.10
|
|
Branch Banking & Trust
|
|
|
52,023
|
|
9.87
|
|
CNB
|
|
|
45,883
|
|
8.70
|
|
SunTrust Bank
|
|
|
26,467
|
|
5.02
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
527,164
|
|
100.00
|
%
|
6 | ||
|
|
|
|
% of
|
|
|
Queen Anne’s County, Maryland
|
|
Deposits
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
|
|
The Queenstown Bank of Maryland
|
|
$
|
352,581
|
|
39.41
|
%
|
CNB
|
|
|
234,511
|
|
26.21
|
|
Bank of America, NA
|
|
|
69,762
|
|
7.80
|
|
PNC Bank, NA
|
|
|
63,618
|
|
7.11
|
|
M&T
|
|
|
56,790
|
|
6.35
|
|
First National Bank of Pennsylvania
|
|
|
41,862
|
|
4.68
|
|
Branch Banking & Trust
|
|
|
24,787
|
|
2.77
|
|
Capital One Bank, NA
|
|
|
22,557
|
|
2.52
|
|
Peoples Bank
|
|
|
20,081
|
|
2.24
|
|
Sun Trust Bank
|
|
|
8,134
|
|
0.91
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
894,683
|
|
100.00
|
%
|
|
|
|
|
% of
|
|
|
Caroline County, Maryland
|
|
Deposits
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
|
|
Provident State Bank, Inc
|
|
$
|
154,427
|
|
41.04
|
%
|
PNC Bank, NA
|
|
|
95,010
|
|
25.25
|
|
CNB
|
|
|
63,761
|
|
16.95
|
|
M&T
|
|
|
28,937
|
|
7.69
|
|
Branch Banking & Trust
|
|
|
28,710
|
|
7.63
|
|
The Queenstown Bank of Maryland
|
|
|
5,403
|
|
1.44
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
376,248
|
|
100.00
|
%
|
|
|
|
|
% of
|
|
|
Talbot County, Maryland
|
|
Deposits
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
|
|
The Talbot Bank of Easton, Maryland
|
|
$
|
477,431
|
|
43.10
|
%
|
PNC Bank, NA
|
|
|
140,590
|
|
12.69
|
|
Bank of America, NA
|
|
|
125,445
|
|
11.32
|
|
Easton Bank & Trust
|
|
|
118,264
|
|
10.68
|
|
The Queenstown Bank of MD
|
|
|
47,964
|
|
4.33
|
|
Branch Banking & Trust
|
|
|
47,281
|
|
4.27
|
|
M&T
|
|
|
47,247
|
|
4.26
|
|
SunTrust Bank
|
|
|
34,893
|
|
3.15
|
|
Provident State Bank, Inc
|
|
|
25,419
|
|
2.29
|
|
Capital One Bank, NA
|
|
|
22,971
|
|
2.07
|
|
First Mariner Bank
|
|
|
20,309
|
|
1.83
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,107,814
|
|
100.00
|
%
|
7 | ||
|
|
|
|
|
% of
|
|
Dorchester County, Maryland
|
|
Deposits
|
|
Total
|
|
|
|
|
|
(in thousands)
|
|
|
|
The National Bank of Cambridge
|
|
$
|
176,662
|
|
32.59
|
%
|
Hebron Savings Bank
|
|
|
107,363
|
|
19.80
|
|
Provident State Bank, Inc
|
|
|
64,810
|
|
11.95
|
|
Branch Banking & Trust
|
|
|
59,298
|
|
10.94
|
|
M&T
|
|
|
37,489
|
|
6.92
|
|
The Talbot Bank of Easton, Maryland
|
|
|
35,730
|
|
6.59
|
|
Bank of America, NA
|
|
|
30,732
|
|
5.67
|
|
SunTrust Bank
|
|
|
30,040
|
|
5.54
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
542,124
|
|
100.00
|
%
|
|
|
|
|
|
% of
|
|
Kent County, Delaware
|
|
Deposits
|
|
Total
|
|
|
|
|
|
(in thousands)
|
|
|
|
M&T
|
|
$
|
521,198
|
|
28.49
|
%
|
PNC Bank Delaware
|
|
|
334,671
|
|
18.29
|
|
First NB of Wyoming
|
|
|
241,717
|
|
13.21
|
|
RBS Citizens NA
|
|
|
182,323
|
|
9.97
|
|
Wells Fargo
|
|
|
155,519
|
|
8.50
|
|
Wilmington Savings Fund Society
|
|
|
136,516
|
|
7.46
|
|
CNB
|
|
|
68,650
|
|
3.75
|
|
TD Bank National Assn
|
|
|
60,338
|
|
3.30
|
|
Artisans Bank
|
|
|
46,566
|
|
2.55
|
|
County Bank
|
|
|
39,734
|
|
2.17
|
|
Midcoast Community Bank
|
|
|
34,496
|
|
1.89
|
|
Fort Sill National Bank
|
|
|
7,743
|
|
0.42
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,829,471
|
|
100.00
|
%
|
8 | ||
9 | ||
10 | ||
11 | ||
· | Applying a 150% risk weight instead of a 100% risk weight for certain high volatility commercial real estate acquisition, development and construction loans. |
· | Assigning a 150% risk weight to loans (other than residential mortgage) that are 90 days or more past due or on nonaccrual. |
· | Providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable, currently at 0%. |
12 | ||
13 | ||
14 | ||
15 | ||
• | Economic conditions that negatively affect housing prices and the job market may result in further deterioration in credit quality of our loan portfolio, and such deterioration in credit quality could have a negative impact on our business; |
• | Market developments may affect consumer confidence levels and may cause adverse changes in payment patterns, causing increases in delinquencies and default rates on loans and other credit facilities; |
• | Demand for our products and services may decline; |
• | Collateral for loans made by us may decline in value, in turn reducing a client's borrowing power, and reducing the value of assets and collateral associated with our loans held for investment; |
16 | ||
• | Our loan customers may not repay their loans according to their terms and any collateral securing payment may be insufficient to fully compensate us for the outstanding balance of the loan plus the costs we incur disposing of the collateral; |
• | The processes we use to estimate the allowance for loan losses may no longer be reliable because they rely on complex judgments, including forecasts of economic conditions, which may no longer be capable of accurate estimation; |
• | A reduction in the size, spending or employment levels of the federal, state and/or local governments in the Washington, DC metropolitan area could have a negative effect on the economy of the region, on our customers, and on real estate prices; |
• | Continued turmoil in the market, and loss of confidence in the banking system, could require the Banks to pay higher interest rates to obtain deposits to meet the needs of their depositors and borrowers, resulting in reduced margin and net interest income. If conditions worsen significantly, it is possible that banks such as the Banks may be unable to meet the needs of their depositors and borrowers, which could, in the worst case, result in the Banks being placed into receivership; and |
• | Compliance with increased regulation of the banking industry may increase our costs, limit our ability to pursue business opportunities, and divert management efforts. |
17 | ||
18 | ||
19 | ||
20 | ||
21 | ||
22 | ||
23 | ||
24 | ||
The Talbot Bank of Easton, Maryland
|
||
|
||
Branches
|
||
|
||
Main Office
18 East Dover Street
Easton, Maryland 21601
|
Elliott Road Branch
8275 Elliott Road
Easton, Maryland 21601
|
Tred Avon Square Branch
212 Marlboro Road
Easton, Maryland 21601
|
|
|
|
St. Michaels Branch
1013 South Talbot Street
St. Michaels, Maryland 21663
|
Sunburst Branch
424 Dorchester Avenue
Cambridge, Maryland 21613
|
Tilghman Branch
5804 Tilghman Island Road
Tilghman, Maryland 21671
|
|
|
|
|
Trappe Branch
29349 Maple Avenue, Suite 1
Trappe, Maryland 21673
|
|
|
|
|
|
ATMs
|
|
|
|
|
Memorial Hospital at Easton
219 South Washington Street
Easton, Maryland 21601
|
Talbottown
218 North Washington Street
Easton, Maryland 21601
|
|
25 | ||
CNB
|
||
Branches
|
||
|
||
Main Office
109 North Commerce Street
Centreville, Maryland 21617
|
Route 213 South Branch
2609 Centreville Road
Centreville, Maryland 21617
|
Chester Branch
300 Castle Marina Road
Chester, Maryland 21619
|
|
|
|
Denton Branch
850 South 5th Avenue
Denton, Maryland 21629
|
Grasonville Branch
202 Pullman Crossing
Grasonville, Maryland 21638
|
Stevensville Branch
408 Thompson Creek Road
Stevensville, Maryland 21666
|
|
|
|
Tuckahoe Branch
22151 WES Street
Ridgely, Maryland 21660
|
Washington Square Branch
899 Washington Avenue
Chestertown, Maryland 21620
|
Felton Branch
120 West Main Street
Felton, Delaware 19943
|
|
|
|
Milford Branch
698-A North Dupont Boulevard
Milford, Delaware 19963
|
Camden Branch
4580 South DuPont Highway
Camden, Delaware 19934
|
Division Office - Wye Financial & Trust
16 North Washington Street, Suite 1
Easton, Maryland 21601
|
|
|
|
The Avon-Dixon Agency, LLC
|
||
Headquarters
106 North Harrison Street
Easton, Maryland 21601
|
Benefits Office
28969 Information Lane
Easton, Maryland 21601
|
Centreville Office
105 Lawyers Row
Centreville, Maryland 21617
|
|
|
|
Elliott-Wilson Insurance, LLC
106 North Harrison Street
Easton, Maryland 21601
|
Mubell Finance, LLC
106 North Harrison Street
Easton, Maryland 21601
|
Jack Martin & Associates, Inc.
135 Old Solomon’s Island Road
Annapolis, Maryland 21401
|
|
|
|
|
Tri-State General Insurance Agencies, Inc.
One Plaza East, 4th Floor
Salisbury, Maryland 21802
|
|
Item 4. | Mine Safety Disclosures. |
26 | ||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
|
|
2013
|
|
2012
|
|
||||||||||||||
|
|
Price Range
|
|
Dividends
|
|
Price Range
|
|
Dividends
|
|
||||||||||
|
|
High
|
|
Low
|
|
Paid
|
|
High
|
|
Low
|
|
Paid
|
|
||||||
First Quarter
|
|
$
|
6.91
|
|
$
|
5.20
|
|
$
|
-
|
|
$
|
7.40
|
|
$
|
4.91
|
|
$
|
0.01
|
|
Second Quarter
|
|
|
7.75
|
|
|
5.97
|
|
|
-
|
|
|
7.45
|
|
|
5.51
|
|
|
-
|
|
Third Quarter
|
|
|
9.06
|
|
|
7.06
|
|
|
-
|
|
|
6.33
|
|
|
4.98
|
|
|
-
|
|
Fourth Quarter
|
|
|
9.45
|
|
|
8.50
|
|
|
-
|
|
|
6.98
|
|
|
4.65
|
|
|
-
|
|
|
|
|
|
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
$
|
0.01
|
|
|
Registrar & Transfer Company
|
|
10 Commerce Drive
|
|
Cranford, New Jersey 07016
|
|
Investor Relations: 1-800-368-5948
|
|
E-mail for investor inquiries: info@rtco.com.
|
|
www.rtco.com
|
27 | ||
|
|
Period Ending
|
|
||||||||||
Index
|
|
12/31/08
|
|
12/31/09
|
|
12/31/10
|
|
12/31/11
|
|
12/31/12
|
|
12/31/13
|
|
Shore Bancshares, Inc.
|
|
100.00
|
|
62.74
|
|
46.57
|
|
23.01
|
|
24.13
|
|
41.27
|
|
NASDAQ Composite
|
|
100.00
|
|
145.36
|
|
171.74
|
|
170.38
|
|
200.63
|
|
281.22
|
|
NASDAQ Bank
|
|
100.00
|
|
83.70
|
|
95.55
|
|
85.52
|
|
101.50
|
|
143.84
|
|
SNL Small Cap Bank
|
|
100.00
|
|
70.29
|
|
85.86
|
|
82.01
|
|
95.53
|
|
133.24
|
|
28 | ||
|
|
|
Years Ended December 31,
|
|
|||||||||||||||||
(Dollars in thousands, except per share data)
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||||
RESULTS OF OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
41,351
|
|
|
$
|
45,901
|
|
|
$
|
50,852
|
|
|
$
|
55,461
|
|
|
$
|
58,789
|
|
Interest expense
|
|
|
|
6,475
|
|
|
|
10,562
|
|
|
|
11,088
|
|
|
|
12,822
|
|
|
|
17,411
|
|
Net interest income
|
|
|
|
34,876
|
|
|
|
35,339
|
|
|
|
39,764
|
|
|
|
42,639
|
|
|
|
41,378
|
|
Provision for credit losses
|
|
|
|
27,784
|
|
|
|
27,745
|
|
|
|
19,470
|
|
|
|
21,119
|
|
|
|
8,986
|
|
Net interest income after provision
for credit losses |
|
|
|
7,092
|
|
|
|
7,594
|
|
|
|
20,294
|
|
|
|
21,520
|
|
|
|
32,392
|
|
Noninterest income
|
|
|
|
17,459
|
|
|
|
15,758
|
|
|
|
17,318
|
|
|
|
18,041
|
|
|
|
19,541
|
|
Noninterest expense
|
|
|
|
40,686
|
|
|
|
39,555
|
|
|
|
39,167
|
|
|
|
41,720
|
|
|
|
40,248
|
|
(Loss) income before income taxes
|
|
|
|
(16,135)
|
|
|
|
(16,203)
|
|
|
|
(1,555)
|
|
|
|
(2,159)
|
|
|
|
11,685
|
|
Income tax (benefit) expense
|
|
|
|
(6,501)
|
|
|
|
(6,565)
|
|
|
|
(658)
|
|
|
|
(492)
|
|
|
|
4,412
|
|
Net (loss) income
|
|
|
|
(9,634)
|
|
|
|
(9,638)
|
|
|
|
(897)
|
|
|
|
(1,667)
|
|
|
|
7,273
|
|
Preferred stock dividends and
discount accretion |
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,876
|
|
Net (loss) income available to
common shareholders |
|
|
$
|
(9,634)
|
|
|
$
|
(9,638)
|
|
|
$
|
(897)
|
|
|
$
|
(1,667)
|
|
|
$
|
5,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income basic
|
|
|
$
|
(1.14)
|
|
|
$
|
(1.14)
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.20)
|
|
|
$
|
0.64
|
|
Net (loss) income diluted
|
|
|
|
(1.14)
|
|
|
|
(1.14)
|
|
|
|
(0.11)
|
|
|
|
(0.20)
|
|
|
|
0.64
|
|
Dividends paid
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.09
|
|
|
|
0.24
|
|
|
|
0.64
|
|
Book value (at year end)
|
|
|
|
12.19
|
|
|
|
13.48
|
|
|
|
14.34
|
|
|
|
14.51
|
|
|
|
15.18
|
|
Tangible book value (at year end)1
|
|
|
|
10.31
|
|
|
|
11.56
|
|
|
|
12.37
|
|
|
|
12.32
|
|
|
|
12.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL CONDITION (at year
end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
|
711,919
|
|
|
$
|
785,082
|
|
|
$
|
841,050
|
|
|
$
|
895,404
|
|
|
$
|
916,557
|
|
Assets
|
|
|
|
1,054,124
|
|
|
|
1,185,807
|
|
|
|
1,158,193
|
|
|
|
1,130,311
|
|
|
|
1,156,516
|
|
Deposits
|
|
|
|
933,468
|
|
|
|
1,049,273
|
|
|
|
1,009,919
|
|
|
|
979,516
|
|
|
|
990,937
|
|
Long-term debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
455
|
|
|
|
932
|
|
|
|
1,429
|
|
Stockholders’ equity
|
|
|
|
103,299
|
|
|
|
114,026
|
|
|
|
121,249
|
|
|
|
122,513
|
|
|
|
127,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS (for the
year): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total assets
|
|
|
|
(0.89)
|
%
|
|
|
(0.82)
|
%
|
|
|
(0.08)
|
%
|
|
|
(0.15)
|
%
|
|
|
0.48
|
%
|
Return on average stockholders’ equity
|
|
|
|
(8.64)
|
|
|
|
(8.07)
|
|
|
|
(0.74)
|
|
|
|
(1.33)
|
|
|
|
4.00
|
|
Net interest margin
|
|
|
|
3.48
|
|
|
|
3.23
|
|
|
|
3.74
|
|
|
|
4.02
|
|
|
|
3.90
|
|
Efficiency ratio2
|
|
|
|
77.59
|
|
|
|
77.17
|
|
|
|
68.35
|
|
|
|
68.75
|
|
|
|
66.07
|
|
Dividend payout ratio
|
|
|
|
-
|
|
|
|
(0.88)
|
|
|
|
(81.82)
|
|
|
|
(120.00)
|
|
|
|
100.00
|
|
Average stockholders’ equity to average
total assets |
|
|
|
10.31
|
|
|
|
10.18
|
|
|
|
10.66
|
|
|
|
11.05
|
|
|
|
11.96
|
|
29 | ||
30 | ||
31 | ||
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|||||||||||||||
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield
|
|
||||||
(Dollars in thousands)
|
|
Balance
|
|
(1)
|
|
Rate
|
|
Balance
|
|
(1)
|
|
Rate
|
|
Balance
|
|
(1)
|
|
/Rate
|
|
||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2) (3)
|
|
$
|
764,659
|
|
$
|
39,062
|
|
5.11
|
%
|
$
|
814,167
|
|
$
|
42,808
|
|
5.26
|
%
|
$
|
873,155
|
|
$
|
47,688
|
|
5.46
|
%
|
Loans held for sale
|
|
|
3,857
|
|
|
90
|
|
2.34
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
138,701
|
|
|
2,072
|
|
1.49
|
|
|
134,697
|
|
|
2,815
|
|
2.09
|
|
|
109,059
|
|
|
3,031
|
|
2.78
|
|
Tax-exempt
|
|
|
540
|
|
|
26
|
|
4.84
|
|
|
2,989
|
|
|
157
|
|
5.25
|
|
|
4,509
|
|
|
234
|
|
5.19
|
|
Federal funds sold
|
|
|
3,850
|
|
|
4
|
|
0.10
|
|
|
10,185
|
|
|
10
|
|
0.10
|
|
|
23,808
|
|
|
25
|
|
0.10
|
|
Interest-bearing deposits
|
|
|
94,704
|
|
|
200
|
|
0.21
|
|
|
135,813
|
|
|
274
|
|
0.20
|
|
|
58,927
|
|
|
93
|
|
0.16
|
|
Total earning assets
|
|
|
1,006,311
|
|
|
41,454
|
|
4.12
|
%
|
|
1,097,851
|
|
|
46,064
|
|
4.20
|
%
|
|
1,069,458
|
|
|
51,071
|
|
4.78
|
%
|
Cash and due from banks
|
|
|
22,603
|
|
|
|
|
|
|
|
20,256
|
|
|
|
|
|
|
|
19,198
|
|
|
|
|
|
|
Other assets
|
|
|
67,724
|
|
|
|
|
|
|
|
68,813
|
|
|
|
|
|
|
|
67,695
|
|
|
|
|
|
|
Allowance for credit losses
|
|
|
(15,511)
|
|
|
|
|
|
|
|
(14,468)
|
|
|
|
|
|
|
|
(16,408)
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,081,127
|
|
|
|
|
|
|
$
|
1,172,452
|
|
|
|
|
|
|
$
|
1,139,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
$
|
171,244
|
|
|
266
|
|
0.16
|
%
|
$
|
160,741
|
|
|
294
|
|
0.18
|
%
|
$
|
145,533
|
|
|
300
|
|
0.21
|
%
|
Money market and savings deposits (4)
|
|
|
221,808
|
|
|
1,086
|
|
0.49
|
|
|
279,126
|
|
|
3,279
|
|
1.17
|
|
|
265,910
|
|
|
2,654
|
|
1.00
|
|
Certificates of deposit, $100,000 or more
|
|
|
202,053
|
|
|
2,580
|
|
1.28
|
|
|
238,241
|
|
|
3,442
|
|
1.44
|
|
|
245,214
|
|
|
3,965
|
|
1.62
|
|
Other time deposits
|
|
|
195,045
|
|
|
2,516
|
|
1.29
|
|
|
204,644
|
|
|
3,486
|
|
1.70
|
|
|
205,154
|
|
|
4,076
|
|
1.99
|
|
Interest-bearing deposits
|
|
|
790,150
|
|
|
6,448
|
|
0.82
|
|
|
882,752
|
|
|
10,501
|
|
1.19
|
|
|
861,811
|
|
|
10,995
|
|
1.28
|
|
Short-term borrowings
|
|
|
10,980
|
|
|
27
|
|
0.24
|
|
|
14,976
|
|
|
45
|
|
0.30
|
|
|
15,319
|
|
|
56
|
|
0.37
|
|
Long-term debt
|
|
|
-
|
|
|
-
|
|
-
|
|
|
341
|
|
|
16
|
|
4.61
|
|
|
814
|
|
|
37
|
|
4.50
|
|
Total interest-bearing liabilities
|
|
|
801,130
|
|
|
6,475
|
|
0.81
|
%
|
|
898,069
|
|
|
10,562
|
|
1.18
|
%
|
|
877,944
|
|
|
11,088
|
|
1.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
160,182
|
|
|
|
|
|
|
|
146,057
|
|
|
|
|
|
|
|
130,260
|
|
|
|
|
|
|
Other liabilities
|
|
|
8,370
|
|
|
|
|
|
|
|
8,967
|
|
|
|
|
|
|
|
10,243
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
111,445
|
|
|
|
|
|
|
|
119,359
|
|
|
|
|
|
|
|
121,496
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,081,127
|
|
|
|
|
|
|
$
|
1,172,452
|
|
|
|
|
|
|
$
|
1,139,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
|
|
$
|
34,979
|
|
3.31
|
%
|
|
|
|
$
|
35,502
|
|
3.02
|
%
|
|
|
|
$
|
39,983
|
|
3.52
|
%
|
Net interest margin
|
|
|
|
|
|
|
|
3.48
|
%
|
|
|
|
|
|
|
3.23
|
%
|
|
|
|
|
|
|
3.74
|
%
|
32 | ||
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
Loans
|
|
76.0
|
%
|
74.2
|
%
|
81.7
|
%
|
84.9
|
%
|
85.5
|
%
|
Loans held for sale
|
|
0.4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Investment securities
|
|
13.8
|
|
12.5
|
|
10.6
|
|
10.0
|
|
8.6
|
|
Federal funds sold
|
|
0.4
|
|
0.9
|
|
2.2
|
|
3.7
|
|
5.6
|
|
Interest-bearing deposits with other banks
|
|
9.4
|
|
12.4
|
|
5.5
|
|
1.4
|
|
0.3
|
|
|
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
33 | ||
|
|
2013 over (under) 2012
|
|
2012 over (under) 2011
|
|
||||||||||||||
|
|
Total
|
|
Caused By
|
|
Total
|
|
Caused By
|
|
||||||||||
(Dollars in thousands)
|
|
Variance
|
|
Rate
|
|
Volume
|
|
Variance
|
|
Rate
|
|
Volume
|
|
||||||
Interest income from earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loans held for sale
|
|
$
|
(3,656)
|
|
$
|
(1,196)
|
|
$
|
(2,460)
|
|
$
|
(4,880)
|
|
$
|
(1,715)
|
|
$
|
(3,165)
|
|
Taxable investment securities
|
|
|
(743)
|
|
|
(825)
|
|
|
82
|
|
|
(216)
|
|
|
(843)
|
|
|
627
|
|
Tax-exempt investment securities
|
|
|
(131)
|
|
|
(11)
|
|
|
(120)
|
|
|
(77)
|
|
|
3
|
|
|
(80)
|
|
Federal funds sold
|
|
|
(6)
|
|
|
-
|
|
|
(6)
|
|
|
(15)
|
|
|
-
|
|
|
(15)
|
|
Interest-bearing deposits
|
|
|
(74)
|
|
|
13
|
|
|
(87)
|
|
|
181
|
|
|
30
|
|
|
151
|
|
Total interest income
|
|
|
(4,610)
|
|
|
(2,019)
|
|
|
(2,591)
|
|
|
(5,007)
|
|
|
(2,525)
|
|
|
(2,482)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on deposits
and borrowed funds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
|
(28)
|
|
|
(41)
|
|
|
13
|
|
|
(6)
|
|
|
(41)
|
|
|
35
|
|
Money market and savings deposits
|
|
|
(2,193)
|
|
|
(1,620)
|
|
|
(573)
|
|
|
625
|
|
|
484
|
|
|
141
|
|
Time deposits
|
|
|
(1,832)
|
|
|
(1,176)
|
|
|
(656)
|
|
|
(1,113)
|
|
|
(996)
|
|
|
(117)
|
|
Short-term borrowings
|
|
|
(18)
|
|
|
(8)
|
|
|
(10)
|
|
|
(11)
|
|
|
(10)
|
|
|
(1)
|
|
Long-term debt
|
|
|
(16)
|
|
|
(8)
|
|
|
(8)
|
|
|
(21)
|
|
|
1
|
|
|
(22)
|
|
Total interest expense
|
|
|
(4,087)
|
|
|
(2,853)
|
|
|
(1,234)
|
|
|
(526)
|
|
|
(562)
|
|
|
36
|
|
Net interest income
|
|
$
|
(523)
|
|
$
|
834
|
|
$
|
(1,357)
|
|
$
|
(4,481)
|
|
$
|
(1,963)
|
|
$
|
(2,518)
|
|
|
|
Years Ended
|
|
Change from Prior Year
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
2013/12
|
|
2012/11
|
|
||||||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
|||||
Service charges on deposit accounts
|
|
$
|
2,371
|
|
$
|
2,551
|
|
$
|
2,845
|
|
$
|
(180)
|
|
(7.1)
|
%
|
$
|
(294)
|
|
(10.3)
|
%
|
Trust and investment fee income
|
|
|
1,613
|
|
|
1,644
|
|
|
1,563
|
|
|
(31)
|
|
(1.9)
|
|
|
81
|
|
5.2
|
|
Gains on sales of investment securities
|
|
|
913
|
|
|
278
|
|
|
563
|
|
|
635
|
|
228.4
|
|
|
(285)
|
|
(50.6)
|
|
Insurance agency commissions income
|
|
|
10,647
|
|
|
9,814
|
|
|
9,358
|
|
|
833
|
|
8.5
|
|
|
456
|
|
4.9
|
|
Loss on termination of cash flow hedge
|
|
|
(1,306)
|
|
|
(1,339)
|
|
|
-
|
|
|
33
|
|
2.5
|
|
|
(1,339)
|
|
-
|
|
Other noninterest income
|
|
|
3,221
|
|
|
2,810
|
|
|
2,989
|
|
|
411
|
|
14.6
|
|
|
(179)
|
|
(6.0)
|
|
Total
|
|
$
|
17,459
|
|
$
|
15,758
|
|
$
|
17,318
|
|
$
|
1,701
|
|
10.8
|
|
$
|
(1,560)
|
|
(9.0)
|
|
34 | ||
|
|
Years Ended
|
|
Change from Prior Year
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
2013/12
|
|
2012/11
|
|
||||||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
|||||
Salaries and wages
|
|
$
|
17,346
|
|
$
|
17,418
|
|
$
|
16,825
|
|
$
|
(72)
|
|
(0.4)
|
%
|
$
|
593
|
|
3.5
|
%
|
Employee benefits
|
|
|
4,094
|
|
|
3,994
|
|
|
3,840
|
|
|
100
|
|
2.5
|
|
|
154
|
|
4.0
|
|
Occupancy expense
|
|
|
2,344
|
|
|
2,559
|
|
|
2,312
|
|
|
(215)
|
|
(8.4)
|
|
|
247
|
|
10.7
|
|
Furniture and equipment expense
|
|
|
1,020
|
|
|
963
|
|
|
1,059
|
|
|
57
|
|
5.9
|
|
|
(96)
|
|
(9.1)
|
|
Data processing
|
|
|
2,900
|
|
|
2,717
|
|
|
2,852
|
|
|
183
|
|
6.7
|
|
|
(135)
|
|
(4.7)
|
|
Directors’ fees
|
|
|
354
|
|
|
474
|
|
|
500
|
|
|
(120)
|
|
(25.3)
|
|
|
(26)
|
|
(5.2)
|
|
Goodwill and other intangible assets
impairment |
|
|
-
|
|
|
-
|
|
|
1,344
|
|
|
-
|
|
-
|
|
|
(1,344)
|
|
(100.0)
|
|
Amortization of intangible assets
|
|
|
296
|
|
|
392
|
|
|
512
|
|
|
(96)
|
|
(24.5)
|
|
|
(120)
|
|
(23.4)
|
|
Insurance agency commissions expense
|
|
|
1,798
|
|
|
1,391
|
|
|
1,267
|
|
|
407
|
|
29.3
|
|
|
124
|
|
9.8
|
|
FDIC insurance premium expense
|
|
|
1,813
|
|
|
1,380
|
|
|
1,298
|
|
|
433
|
|
31.4
|
|
|
82
|
|
6.3
|
|
Write-downs of other real estate owned
|
|
|
1,318
|
|
|
1,328
|
|
|
1,051
|
|
|
(10)
|
|
(0.8)
|
|
|
277
|
|
26.4
|
|
Other noninterest expenses
|
|
|
7,403
|
|
|
6,939
|
|
|
6,307
|
|
|
464
|
|
6.7
|
|
|
632
|
|
10.0
|
|
Total
|
|
$
|
40,686
|
|
$
|
39,555
|
|
$
|
39,167
|
|
$
|
1,131
|
|
2.9
|
|
$
|
388
|
|
1.0
|
|
35 | ||
|
|
1 Year or Less
|
|
1-5 Years
|
|
5-10 Years
|
|
Over 10 Years
|
|
||||||||||||
|
|
Carrying
|
|
Average
|
|
Carrying
|
|
Average
|
|
Carrying
|
|
Average
|
|
Carrying
|
|
Average
|
|
||||
(Dollars in thousands)
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and
Government agencies |
|
$
|
2,042
|
|
0.61
|
%
|
$
|
63,385
|
|
0.78
|
%
|
$
|
141
|
|
4.15
|
%
|
$
|
219
|
|
4.40
|
%
|
Mortgage-backed
|
|
|
3
|
|
4.24
|
|
|
136
|
|
4.57
|
|
|
3,499
|
|
1.96
|
|
|
77,075
|
|
1.75
|
|
Total available for sale
|
|
$
|
2,045
|
|
0.62
|
|
$
|
63,521
|
|
0.79
|
|
$
|
3,640
|
|
2.04
|
|
$
|
77,294
|
|
1.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies
|
|
$
|
-
|
|
-
|
%
|
$
|
-
|
|
-
|
%
|
$
|
-
|
|
-
|
%
|
$
|
2,975
|
|
2.03
|
%
|
States and political
subdivisions1 |
|
|
267
|
|
4.55
|
|
|
433
|
|
4.12
|
|
|
1,006
|
|
4.67
|
|
|
504
|
|
5.38
|
|
Total held to maturity
|
|
$
|
267
|
|
4.55
|
|
$
|
433
|
|
4.12
|
|
$
|
1,006
|
|
4.67
|
|
$
|
3,479
|
|
2.51
|
|
36 | ||
|
|
December 31,
|
|
|||||||||||||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
|||||
Construction
|
|
$
|
64,591
|
|
$
|
108,051
|
|
$
|
119,883
|
|
$
|
143,952
|
|
$
|
161,437
|
|
Residential real estate
|
|
|
274,857
|
|
|
288,011
|
|
|
321,604
|
|
|
333,738
|
|
|
327,873
|
|
Commercial real estate
|
|
|
304,605
|
|
|
314,941
|
|
|
315,439
|
|
|
318,726
|
|
|
315,930
|
|
Commercial
|
|
|
57,195
|
|
|
60,786
|
|
|
69,485
|
|
|
82,787
|
|
|
91,783
|
|
Consumer
|
|
|
10,671
|
|
|
13,293
|
|
|
14,639
|
|
|
16,201
|
|
|
19,534
|
|
Total
|
|
$
|
711,919
|
|
$
|
785,082
|
|
$
|
841,050
|
|
$
|
895,404
|
|
$
|
916,557
|
|
|
|
|
|
Maturing after
|
|
|
|
|
|
||||
|
|
Maturing
|
|
one but within
|
|
Maturing after
|
|
|
|
||||
(Dollars in thousands)
|
|
within one year
|
|
five years
|
|
five years
|
|
Total
|
|
||||
Construction
|
|
$
|
33,599
|
|
$
|
26,691
|
|
$
|
4,301
|
|
$
|
64,591
|
|
Residential real estate
|
|
|
74,732
|
|
|
92,274
|
|
|
107,851
|
|
|
274,857
|
|
Commercial real estate
|
|
|
75,192
|
|
|
196,978
|
|
|
32,435
|
|
|
304,605
|
|
Commercial
|
|
|
23,521
|
|
|
25,023
|
|
|
8,651
|
|
|
57,195
|
|
Consumer
|
|
|
5,232
|
|
|
4,516
|
|
|
923
|
|
|
10,671
|
|
Total
|
|
$
|
212,276
|
|
$
|
345,482
|
|
$
|
154,161
|
|
$
|
711,919
|
|
Rate terms:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-interest rate loans
|
|
$
|
135,829
|
|
$
|
318,149
|
|
$
|
36,760
|
|
$
|
490,738
|
|
Adjustable-interest rate loans
|
|
|
76,447
|
|
|
27,333
|
|
|
117,401
|
|
|
221,181
|
|
Total
|
|
$
|
212,276
|
|
$
|
345,482
|
|
$
|
154,161
|
|
$
|
711,919
|
|
|
|
Average Balances
|
|
|||||||||||||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||||||||
Noninterest-bearing demand
|
|
$
|
160,182
|
|
16.9
|
%
|
$
|
146,057
|
|
14.2
|
%
|
$
|
130,260
|
|
13.1
|
%
|
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
|
171,244
|
|
18.0
|
|
|
160,741
|
|
15.6
|
|
|
145,533
|
|
14.7
|
|
Money market and savings
|
|
|
221,808
|
|
23.3
|
|
|
279,126
|
|
27.1
|
|
|
265,910
|
|
26.8
|
|
Certificates of deposit, $100,000
or more |
|
|
202,053
|
|
21.3
|
|
|
238,241
|
|
23.2
|
|
|
245,214
|
|
24.7
|
|
Other time deposits
|
|
|
195,045
|
|
20.5
|
|
|
204,644
|
|
19.9
|
|
|
205,154
|
|
20.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
950,332
|
|
100.0
|
%
|
$
|
1,028,809
|
|
100.0
|
%
|
$
|
992,071
|
|
100.0
|
%
|
37 | ||
(Dollars in thousands)
|
|
|
|
|
Three months or less
|
|
$
|
39,878
|
|
Over three through 12 months
|
|
|
51,393
|
|
Over 12 months
|
|
|
93,770
|
|
Total
|
|
$
|
185,041
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|||||||||
|
|
|
|
|
Interest
|
|
|
|
|
|
Interest
|
|
|
|
|
|
Interest
|
|
(Dollars in thousands)
|
|
Balance
|
|
Rate
|
|
|
Balance
|
|
Rate
|
|
|
Balance
|
|
Rate
|
|
|||
Average outstanding for the year
|
|
$
|
10,980
|
|
0.24
|
%
|
|
$
|
14,976
|
|
0.30
|
%
|
|
$
|
15,319
|
|
0.37
|
%
|
Outstanding at year end
|
|
|
10,140
|
|
0.23
|
|
|
|
13,761
|
|
0.26
|
|
|
|
17,817
|
|
0.34
|
|
Maximum outstanding at any month end
|
|
|
12,662
|
|
-
|
|
|
|
18,879
|
|
-
|
|
|
|
18,251
|
|
-
|
|
38 | ||
(Dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Minimum
Regulatory Requirements |
|
|||
Tier 1 capital
|
|
$
|
72,370
|
|
|
$
|
97,049
|
|
|
$
|
106,276
|
|
|
|
Tier 2 capital
|
|
|
8,971
|
|
|
|
10,159
|
|
|
|
10,641
|
|
|
|
Total risk-based capital
|
|
|
81,341
|
|
|
|
107,208
|
|
|
|
116,917
|
|
|
|
Net risk-weighted assets
|
|
|
717,129
|
|
|
|
805,108
|
|
|
|
846,936
|
|
|
|
Adjusted average total assets
|
|
|
1,028,957
|
|
|
|
1,166,865
|
|
|
|
1,143,990
|
|
|
|
Risk-based capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
|
|
|
10.09
|
%
|
|
|
12.05
|
%
|
|
|
12.55
|
%
|
4.0
|
%
|
Total capital
|
|
|
11.34
|
|
|
|
13.32
|
|
|
|
13.80
|
|
8.0
|
|
Tier 1 leverage ratio
|
|
|
7.03
|
|
|
|
8.32
|
|
|
|
9.29
|
|
4.0
|
|
39 | ||
40 | ||
(Dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
15,991
|
|
|
$
|
14,288
|
|
|
$
|
14,227
|
|
|
$
|
10,876
|
|
|
$
|
9,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans charged off
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
(20,695)
|
|
|
|
(7,826)
|
|
|
|
(4,236)
|
|
|
|
(7,910)
|
|
|
|
(674)
|
|
Residential real estate
|
|
|
(7,163)
|
|
|
|
(9,838)
|
|
|
|
(7,693)
|
|
|
|
(5,818)
|
|
|
|
(2,621)
|
|
Commercial real estate
|
|
|
(6,162)
|
|
|
|
(2,954)
|
|
|
|
(5,037)
|
|
|
|
(492)
|
|
|
|
(1,695)
|
|
Commercial
|
|
|
(665)
|
|
|
|
(5,451)
|
|
|
|
(3,388)
|
|
|
|
(3,710)
|
|
|
|
(2,304)
|
|
Consumer
|
|
|
(113)
|
|
|
|
(576)
|
|
|
|
(202)
|
|
|
|
(589)
|
|
|
|
(417)
|
|
Total
|
|
|
(34,798)
|
|
|
|
(26,645)
|
|
|
|
(20,556)
|
|
|
|
(18,519)
|
|
|
|
(7,711)
|
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
161
|
|
|
|
6
|
|
|
|
49
|
|
|
|
14
|
|
|
|
2
|
|
Residential real estate
|
|
|
545
|
|
|
|
102
|
|
|
|
120
|
|
|
|
215
|
|
|
|
70
|
|
Commercial real estate
|
|
|
161
|
|
|
|
166
|
|
|
|
361
|
|
|
|
108
|
|
|
|
6
|
|
Commercial
|
|
|
839
|
|
|
|
304
|
|
|
|
549
|
|
|
|
214
|
|
|
|
66
|
|
Consumer
|
|
|
42
|
|
|
|
25
|
|
|
|
68
|
|
|
|
200
|
|
|
|
137
|
|
Total
|
|
|
1,748
|
|
|
|
603
|
|
|
|
1,147
|
|
|
|
751
|
|
|
|
281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans charged off
|
|
|
(33,050)
|
|
|
|
(26,042)
|
|
|
|
(19,409)
|
|
|
|
(17,768)
|
|
|
|
(7,430)
|
|
Provision for credit losses
|
|
|
27,784
|
|
|
|
27,745
|
|
|
|
19,470
|
|
|
|
21,119
|
|
|
|
8,986
|
|
Balance, end of year
|
|
$
|
10,725
|
|
|
$
|
15,991
|
|
|
$
|
14,288
|
|
|
$
|
14,227
|
|
|
$
|
10,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans outstanding
|
|
$
|
764,659
|
|
|
$
|
814,167
|
|
|
$
|
873,155
|
|
|
$
|
906,732
|
|
|
$
|
913,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of net charge-offs to
average loans outstanding during the year |
|
|
4.32
|
%
|
|
|
3.20
|
%
|
|
|
2.22
|
%
|
|
|
1.96
|
%
|
|
|
0.81
|
%
|
Percentage of allowance for
credit losses at year end to average loans |
|
|
1.40
|
%
|
|
|
1.96
|
%
|
|
|
1.64
|
%
|
|
|
1.57
|
%
|
|
|
1.19
|
%
|
41 | ||
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
|||||||||||||||
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
(Dollars in thousands)
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
|||||
Construction
|
|
$
|
1,960
|
|
9.1
|
%
|
$
|
4,387
|
|
13.8
|
%
|
$
|
3,745
|
|
14.3
|
%
|
$
|
3,327
|
|
16.1
|
%
|
$
|
2,630
|
|
17.6
|
%
|
Residential real estate
|
|
|
3,854
|
|
38.6
|
|
|
5,194
|
|
36.7
|
|
|
5,014
|
|
38.2
|
|
|
4,833
|
|
37.3
|
|
|
1,528
|
|
35.8
|
|
Commercial real estate
|
|
|
3,029
|
|
42.8
|
|
|
4,134
|
|
40.1
|
|
|
3,415
|
|
37.5
|
|
|
3,665
|
|
35.6
|
|
|
3,947
|
|
34.5
|
|
Commercial
|
|
|
1,266
|
|
8.0
|
|
|
1,682
|
|
7.7
|
|
|
1,498
|
|
8.3
|
|
|
1,422
|
|
9.2
|
|
|
2,132
|
|
10.0
|
|
Consumer
|
|
|
243
|
|
1.5
|
|
|
407
|
|
1.7
|
|
|
594
|
|
1.7
|
|
|
637
|
|
1.8
|
|
|
515
|
|
2.1
|
|
Unallocated
|
|
|
373
|
|
-
|
|
|
187
|
|
-
|
|
|
22
|
|
-
|
|
|
343
|
|
-
|
|
|
124
|
|
-
|
|
Total
|
|
$
|
10,725
|
|
100.0
|
%
|
$
|
15,991
|
|
100.0
|
%
|
$
|
14,288
|
|
100.0
|
%
|
$
|
14,227
|
|
100.0
|
%
|
$
|
10,876
|
|
100.0
|
%
|
42 | ||
(Dollars in thousands)
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||||
Nonperforming assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans excluding nonaccrual loans held for sale (“hfs”)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
3,949
|
|
|
$
|
9,694
|
|
|
$
|
15,555
|
|
|
$
|
17,261
|
|
|
$
|
7,163
|
|
Residential real estate
|
|
|
5,166
|
|
|
|
11,532
|
|
|
|
20,106
|
|
|
|
9,969
|
|
|
|
4,246
|
|
Commercial real estate
|
|
|
4,671
|
|
|
|
14,567
|
|
|
|
14,012
|
|
|
|
5,133
|
|
|
|
2,828
|
|
Commercial
|
|
|
792
|
|
|
|
594
|
|
|
|
1,669
|
|
|
|
3,845
|
|
|
|
2,028
|
|
Consumer
|
|
|
48
|
|
|
|
87
|
|
|
|
28
|
|
|
|
30
|
|
|
|
37
|
|
Total nonaccrual loans excluding nonaccrual loans hfs
|
|
|
14,626
|
|
|
|
36,474
|
|
|
|
51,370
|
|
|
|
36,238
|
|
|
|
16,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days or more past due and still accruing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
-
|
|
|
|
-
|
|
|
|
325
|
|
|
|
-
|
|
|
|
5,096
|
|
Residential real estate
|
|
|
20
|
|
|
|
290
|
|
|
|
2,331
|
|
|
|
3,454
|
|
|
|
2,274
|
|
Commercial real estate
|
|
|
-
|
|
|
|
165
|
|
|
|
-
|
|
|
|
986
|
|
|
|
-
|
|
Commercial
|
|
|
250
|
|
|
|
-
|
|
|
|
66
|
|
|
|
174
|
|
|
|
-
|
|
Consumer
|
|
|
-
|
|
|
|
5
|
|
|
|
1
|
|
|
|
88
|
|
|
|
55
|
|
Total loans 90 days or more past due and still accruing
|
|
|
270
|
|
|
|
460
|
|
|
|
2,723
|
|
|
|
4,702
|
|
|
|
7,425
|
|
Other real estate owned
|
|
|
3,779
|
|
|
|
7,659
|
|
|
|
9,385
|
|
|
|
3,702
|
|
|
|
2,572
|
|
Total nonperforming assets excluding nonaccrual loans hfs
|
|
|
18,675
|
|
|
|
44,593
|
|
|
|
63,478
|
|
|
|
44,642
|
|
|
|
26,299
|
|
Nonaccrual loans hfs
|
|
|
3,521
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total nonperforming assets including nonaccrual loans hfs
|
|
$
|
22,196
|
|
|
$
|
44,593
|
|
|
$
|
63,478
|
|
|
$
|
44,642
|
|
|
$
|
26,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing TDRs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
1,620
|
|
|
$
|
27,335
|
|
|
$
|
11,781
|
|
|
$
|
10,914
|
|
|
$
|
-
|
|
Residential real estate
|
|
|
14,582
|
|
|
|
7,017
|
|
|
|
3,792
|
|
|
|
5,367
|
|
|
|
1,722
|
|
Commercial real estate
|
|
|
9,791
|
|
|
|
17,880
|
|
|
|
9,566
|
|
|
|
8,147
|
|
|
|
-
|
|
Commercial
|
|
|
95
|
|
|
|
121
|
|
|
|
69
|
|
|
|
529
|
|
|
|
-
|
|
Consumer
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total accruing TDRs
|
|
$
|
26,088
|
|
|
$
|
52,353
|
|
|
$
|
25,208
|
|
|
$
|
24,957
|
|
|
$
|
1,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans excluding nonaccrual loans hfs
|
|
|
2.05
|
%
|
|
|
4.65
|
%
|
|
|
6.11
|
%
|
|
|
4.05
|
%
|
|
|
1.78
|
%
|
Accruing TDRs
|
|
|
3.66
|
%
|
|
|
6.67
|
%
|
|
|
3.00
|
%
|
|
|
2.79
|
%
|
|
|
0.19
|
%
|
Nonaccrual loans and accruing TDRs excluding nonaccrual
loans hfs |
|
|
5.71
|
%
|
|
|
11.32
|
%
|
|
|
9.11
|
%
|
|
|
6.84
|
%
|
|
|
1.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total loans and other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets excluding nonaccrual loans hfs
|
|
|
2.61
|
%
|
|
|
5.63
|
%
|
|
|
7.46
|
%
|
|
|
4.97
|
%
|
|
|
2.86
|
%
|
Nonperforming assets and accruing TDRs excluding nonaccrual loans hfs
|
|
|
6.25
|
%
|
|
|
12.23
|
%
|
|
|
10.43
|
%
|
|
|
7.74
|
%
|
|
|
3.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans excluding nonaccrual loans hfs
|
|
|
1.39
|
%
|
|
|
3.08
|
%
|
|
|
4.44
|
%
|
|
|
3.21
|
%
|
|
|
1.41
|
%
|
Nonaccrual loans including nonaccrual loans hfs
|
|
|
1.72
|
%
|
|
|
3.08
|
%
|
|
|
4.44
|
%
|
|
|
3.21
|
%
|
|
|
1.41
|
%
|
Nonperforming assets excluding nonaccrual loans hfs
|
|
|
1.77
|
%
|
|
|
3.76
|
%
|
|
|
5.48
|
%
|
|
|
3.95
|
%
|
|
|
2.27
|
%
|
Nonperforming assets including nonaccrual loans hfs
|
|
|
2.11
|
%
|
|
|
3.76
|
%
|
|
|
5.48
|
%
|
|
|
3.95
|
%
|
|
|
2.27
|
%
|
Accruing TDRs
|
|
|
2.47
|
%
|
|
|
4.41
|
%
|
|
|
2.18
|
%
|
|
|
2.21
|
%
|
|
|
0.15
|
%
|
Nonperforming assets and accruing TDRs excluding nonaccrual loans hfs
|
|
|
4.25
|
%
|
|
|
8.18
|
%
|
|
|
7.66
|
%
|
|
|
6.16
|
%
|
|
|
2.42
|
%
|
Nonperforming assets and accruing TDRs including nonaccrual loans hfs
|
|
|
4.58
|
%
|
|
|
8.18
|
%
|
|
|
7.66
|
%
|
|
|
6.16
|
%
|
|
|
2.42
|
%
|
43 | ||
|
|
|
|
|
|
3 Months
|
|
|
1 Year
|
|
|
3 Years
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
||||
|
|
Within
|
|
|
through
|
|
|
through
|
|
|
through
|
|
|
After
|
|
|
Sensitive
|
|
|
|
|
|
||||||
December 31, 2013
|
|
3 Months
|
|
|
12 Months
|
|
|
3 Years
|
|
|
5 Years
|
|
|
5 Years
|
|
|
Funds
|
|
|
Total
|
|
|||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
|
|
$
|
270,790
|
|
|
$
|
86,976
|
|
|
$
|
157,935
|
|
|
$
|
159,842
|
|
|
$
|
36,376
|
|
|
$
|
(10,725)
|
|
|
$
|
701,194
|
|
Loans held for sale
|
|
|
3,521
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,521
|
|
Investment securities
|
|
|
16,425
|
|
|
|
9,100
|
|
|
|
47,539
|
|
|
|
54,250
|
|
|
|
24,371
|
|
|
|
601
|
|
|
|
152,286
|
|
Federal funds sold
|
|
|
468
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
468
|
|
Interest-bearing deposits with other banks
|
|
|
109,384
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
109,384
|
|
Other assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
87,271
|
|
|
|
87,271
|
|
Total assets
|
|
|
400,588
|
|
|
|
96,076
|
|
|
|
205,474
|
|
|
|
214,092
|
|
|
|
60,747
|
|
|
|
77,147
|
|
|
|
1,054,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
172,797
|
|
|
|
172,797
|
|
Interest-bearing demand deposits
|
|
|
177,121
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
177,121
|
|
Money market and savings deposits
|
|
|
210,746
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
210,746
|
|
Certificates of deposit, $100,000 or more
|
|
|
39,878
|
|
|
|
51,393
|
|
|
|
63,909
|
|
|
|
29,861
|
|
|
|
-
|
|
|
|
-
|
|
|
|
185,041
|
|
Other time deposits
|
|
|
23,211
|
|
|
|
70,354
|
|
|
|
57,494
|
|
|
|
36,704
|
|
|
|
-
|
|
|
|
-
|
|
|
|
187,763
|
|
Short-term borrowings
|
|
|
10,140
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,140
|
|
Other liabilities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,217
|
|
|
|
7,217
|
|
STOCKHOLDERS’ EQUITY
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
103,299
|
|
|
|
103,299
|
|
Total Liabilities and Stockholders’ Equity
|
|
|
461,096
|
|
|
|
121,747
|
|
|
|
121,403
|
|
|
|
66,565
|
|
|
|
-
|
|
|
|
283,313
|
|
|
|
1,054,124
|
|
Excess (deficit)
|
|
$
|
(60,508)
|
|
|
$
|
(25,671)
|
|
|
$
|
84,071
|
|
|
$
|
147,527
|
|
|
$
|
60,747
|
|
|
$
|
(206,166)
|
|
|
$
|
-
|
|
Cumulative excess (deficit)
|
|
$
|
(60,508)
|
|
|
$
|
(86,179)
|
|
|
$
|
(2,108)
|
|
|
$
|
145,419
|
|
|
$
|
206,166
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Cumulative excess (deficit) as percent of total
assets |
|
|
(5.7)
|
%
|
|
|
(8.2)
|
%
|
|
|
(0.2)
|
%
|
|
|
13.8
|
%
|
|
|
19.6
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
44 | ||
|
|
Immediate Change in Rates
|
|
||||||||||
|
|
-300
|
|
-200
|
|
-100
|
|
+100
|
|
+200
|
|
+300
|
|
|
|
Basis Points
|
|
Basis Points
|
|
Basis Points
|
|
Basis Points
|
|
Basis Points
|
|
Basis Points
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change in Net Interest Income
|
|
N/A
|
|
(12.1)
|
%
|
(4.8)
|
%
|
2.5
|
%
|
4.0
|
%
|
5.1
|
%
|
% Change in Value of Capital
|
|
N/A
|
|
(2.3)
|
%
|
(5.7)
|
%
|
9.4
|
%
|
18.6
|
%
|
26.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change in Net Interest Income
|
|
N/A
|
|
(7.8)
|
%
|
(3.0)
|
%
|
3.8
|
%
|
8.3
|
%
|
13.4
|
%
|
% Change in Value of Capital
|
|
N/A
|
|
14.0
|
%
|
7.2
|
%
|
0.3
|
%
|
5.7
|
%
|
10.4
|
%
|
45 | ||
|
|
Within
|
|
One to
|
|
Three to
|
|
Over
|
|
|
|
|||||
(Dollars in thousands)
|
|
one year
|
|
three years
|
|
five years
|
|
five years
|
|
Total
|
|
|||||
Operating leases
|
|
$
|
617
|
|
$
|
511
|
|
$
|
505
|
|
$
|
883
|
|
$
|
2,516
|
|
Purchase obligations
|
|
|
2,021
|
|
|
3,633
|
|
|
3,211
|
|
|
2,792
|
|
|
11,657
|
|
Total
|
|
$
|
2,638
|
|
$
|
4,144
|
|
$
|
3,716
|
|
$
|
3,675
|
|
$
|
14,173
|
|
Management’s Report on Internal Control over Financial Reporting
|
47
|
|
|
Report of Independent Registered Public Accounting Firm
|
48
|
|
|
Consolidated Balance Sheets
|
49
|
|
|
Consolidated Statements of Operations
|
50
|
|
|
Consolidated Statements of Comprehensive Loss
|
51
|
|
|
Consolidated Statements of Changes in Stockholders’ Equity
|
52
|
|
|
Consolidated Statements of Cash Flows
|
53
|
|
|
Notes to Consolidated Financial Statements
|
55
|
46 | ||
March 20, 2014
|
|
|
|
|
|
/s/ Lloyd L. Beatty, Jr.
|
|
/s/ George S. Rapp
|
Lloyd L. Beatty, Jr.
|
|
George S. Rapp
|
President and Chief Executive Officer
|
|
Vice President and Chief Financial Officer
|
(Principal Executive Officer)
|
|
(Principal Accounting Officer)
|
47 | ||
|
|
48 | ||
(In thousands, except share data)
|
|
2013
|
|
2012
|
|
||
ASSETS
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
21,238
|
|
$
|
26,579
|
|
Interest-bearing deposits with other banks
|
|
|
109,384
|
|
|
164,864
|
|
Federal funds sold
|
|
|
468
|
|
|
8,750
|
|
Investment securities:
|
|
|
|
|
|
|
|
Available for sale, at fair value
|
|
|
147,101
|
|
|
145,508
|
|
Held to maturity, at amortized cost fair value of $5,062
(2013) and $2,884 (2012) |
|
|
5,185
|
|
|
2,657
|
|
|
|
|
|
|
|
|
|
Loans held for sale
|
|
|
3,521
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
711,919
|
|
|
785,082
|
|
Less: allowance for credit losses
|
|
|
(10,725)
|
|
|
(15,991)
|
|
Loans, net
|
|
|
701,194
|
|
|
769,091
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net
|
|
|
15,198
|
|
|
15,593
|
|
Goodwill
|
|
|
12,454
|
|
|
12,454
|
|
Other intangible assets, net
|
|
|
3,520
|
|
|
3,816
|
|
Other real estate owned, net
|
|
|
3,779
|
|
|
7,659
|
|
Other assets
|
|
|
31,082
|
|
|
28,836
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,054,124
|
|
$
|
1,185,807
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
172,797
|
|
$
|
153,992
|
|
Interest-bearing
|
|
|
760,671
|
|
|
895,281
|
|
Total deposits
|
|
|
933,468
|
|
|
1,049,273
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
10,140
|
|
|
13,761
|
|
Other liabilities
|
|
|
7,217
|
|
|
8,747
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
950,825
|
|
|
1,071,781
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Common stock, par value $.01, authorized 35,000,000 shares;
shares issued and outstanding8,471,289 (2013) and 8,457,359 (2012) |
|
|
85
|
|
|
85
|
|
Additional paid in capital
|
|
|
32,207
|
|
|
32,155
|
|
Retained earnings
|
|
|
71,444
|
|
|
81,078
|
|
Accumulated other comprehensive (loss) income
|
|
|
(437)
|
|
|
708
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
103,299
|
|
|
114,026
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,054,124
|
|
$
|
1,185,807
|
|
49 | ||
(Dollars in thousands, except per share data)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
$
|
39,058
|
|
$
|
42,698
|
|
$
|
47,549
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
2,072
|
|
|
2,815
|
|
|
3,031
|
|
Tax-exempt
|
|
|
17
|
|
|
104
|
|
|
154
|
|
Interest on federal funds sold
|
|
|
4
|
|
|
10
|
|
|
25
|
|
Interest on deposits with other banks
|
|
|
200
|
|
|
274
|
|
|
93
|
|
Total interest income
|
|
|
41,351
|
|
|
45,901
|
|
|
50,852
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
|
6,448
|
|
|
10,501
|
|
|
10,995
|
|
Interest on short-term borrowings
|
|
|
27
|
|
|
45
|
|
|
56
|
|
Interest on long-term debt
|
|
|
-
|
|
|
16
|
|
|
37
|
|
Total interest expense
|
|
|
6,475
|
|
|
10,562
|
|
|
11,088
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
|
|
|
34,876
|
|
|
35,339
|
|
|
39,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses
|
|
|
27,784
|
|
|
27,745
|
|
|
19,470
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
|
|
|
7,092
|
|
|
7,594
|
|
|
20,294
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
2,371
|
|
|
2,551
|
|
|
2,845
|
|
Trust and investment fee income
|
|
|
1,613
|
|
|
1,644
|
|
|
1,563
|
|
Gains on sales of investment securities
|
|
|
913
|
|
|
278
|
|
|
563
|
|
Insurance agency commissions income
|
|
|
10,647
|
|
|
9,814
|
|
|
9,358
|
|
Loss on termination of cash flow hedge
|
|
|
(1,306)
|
|
|
(1,339)
|
|
|
-
|
|
Other noninterest income
|
|
|
3,221
|
|
|
2,810
|
|
|
2,989
|
|
Total noninterest income
|
|
|
17,459
|
|
|
15,758
|
|
|
17,318
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
17,346
|
|
|
17,418
|
|
|
16,825
|
|
Employee benefits
|
|
|
4,094
|
|
|
3,994
|
|
|
3,840
|
|
Occupancy expense
|
|
|
2,344
|
|
|
2,559
|
|
|
2,312
|
|
Furniture and equipment expense
|
|
|
1,020
|
|
|
963
|
|
|
1,059
|
|
Data processing
|
|
|
2,900
|
|
|
2,717
|
|
|
2,852
|
|
Directors’ fees
|
|
|
354
|
|
|
474
|
|
|
500
|
|
Goodwill and other intangible assets impairment
|
|
|
-
|
|
|
-
|
|
|
1,344
|
|
Amortization of other intangible assets
|
|
|
296
|
|
|
392
|
|
|
512
|
|
Insurance agency commissions expense
|
|
|
1,798
|
|
|
1,391
|
|
|
1,267
|
|
FDIC insurance premium expense
|
|
|
1,813
|
|
|
1,380
|
|
|
1,298
|
|
Write-downs of other real estate owned
|
|
|
1,318
|
|
|
1,328
|
|
|
1,051
|
|
Other noninterest expenses
|
|
|
7,403
|
|
|
6,939
|
|
|
6,307
|
|
Total noninterest expense
|
|
|
40,686
|
|
|
39,555
|
|
|
39,167
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAX BENEFIT
|
|
|
(16,135)
|
|
|
(16,203)
|
|
|
(1,555)
|
|
Income tax benefit
|
|
|
(6,501)
|
|
|
(6,565)
|
|
|
(658)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(9,634)
|
|
$
|
(9,638)
|
|
$
|
(897)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per common share
|
|
$
|
(1.14)
|
|
$
|
(1.14)
|
|
$
|
(0.11)
|
|
Diluted loss per common share
|
|
$
|
(1.14)
|
|
$
|
(1.14)
|
|
$
|
(0.11)
|
|
Cash dividends paid per common share
|
|
$
|
-
|
|
$
|
0.01
|
|
$
|
0.09
|
|
50 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Net loss
|
|
$
|
(9,634)
|
|
$
|
(9,638)
|
|
$
|
(897)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding (losses) gains on available-for-sale securities
|
|
|
(2,995)
|
|
|
1,155
|
|
|
1,241
|
|
Tax effect
|
|
|
1,209
|
|
|
(465)
|
|
|
(505)
|
|
Reclassification of gains recognized in net loss
|
|
|
(913)
|
|
|
(278)
|
|
|
(563)
|
|
Tax effect
|
|
|
368
|
|
|
112
|
|
|
227
|
|
Net of tax amount
|
|
|
(2,331)
|
|
|
524
|
|
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedging activities:
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains (losses) on cash flow hedging activities
|
|
|
681
|
|
|
1,801
|
|
|
(460)
|
|
Tax effect
|
|
|
(274)
|
|
|
(727)
|
|
|
185
|
|
Reclassification of losses recognized in net loss
|
|
|
1,306
|
|
|
1,339
|
|
|
-
|
|
Tax effect
|
|
|
(527)
|
|
|
(540)
|
|
|
-
|
|
Net of tax amount
|
|
|
1,186
|
|
|
1,873
|
|
|
(275)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive (loss) income
|
|
|
(1,145)
|
|
|
2,397
|
|
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
|
|
$
|
(10,779)
|
|
$
|
(7,241)
|
|
$
|
(772)
|
|
51 | ||
(Dollars in thousands, except per share data)
|
|
Common
Stock |
|
Warrant
|
|
Additional
Paid In Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders’ Equity |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, January 1, 2011
|
|
$
|
84
|
|
$
|
1,543
|
|
$
|
30,242
|
|
$
|
92,458
|
|
$
|
(1,814)
|
|
$
|
122,513
|
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(897)
|
|
|
-
|
|
|
(897)
|
|
Unrealized gains on available-for-sale
securities, net of reclassification adjustment, net of taxes |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
400
|
|
|
400
|
|
Unrealized losses on cash flow hedging
activities, net of taxes |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(275)
|
|
|
(275)
|
|
Total comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(772)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase of warrant
|
|
|
-
|
|
|
(1,543)
|
|
|
1,518
|
|
|
-
|
|
|
-
|
|
|
(25)
|
|
Shares issued for employee stock-based
awards |
|
|
1
|
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Stock-based compensation
|
|
|
-
|
|
|
-
|
|
|
293
|
|
|
-
|
|
|
-
|
|
|
293
|
|
Cash dividends paid ($0.09 per share)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(760)
|
|
|
-
|
|
|
(760)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, December 31, 2011
|
|
|
85
|
|
|
-
|
|
|
32,052
|
|
|
90,801
|
|
|
(1,689)
|
|
|
121,249
|
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9,638)
|
|
|
-
|
|
|
(9,638)
|
|
Unrealized gains on available-for-sale
securities, net of reclassification adjustment, net of taxes |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
524
|
|
|
524
|
|
Unrealized gains on cash flow hedging
activities, net of reclassification adjustment, net of taxes |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,873
|
|
|
1,873
|
|
Total comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,241)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
-
|
|
|
-
|
|
|
103
|
|
|
-
|
|
|
-
|
|
|
103
|
|
Cash dividends paid ($0.01 per share)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(85)
|
|
|
-
|
|
|
(85)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, December 31, 2012
|
|
|
85
|
|
|
-
|
|
|
32,155
|
|
|
81,078
|
|
|
708
|
|
|
114,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9,634)
|
|
|
-
|
|
|
(9,634)
|
|
Unrealized losses on available-for-sale
securities, net of reclassification adjustment, net of taxes |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,331)
|
|
|
(2,331)
|
|
Unrealized gains on cash flow hedging
activities, net of reclassification adjustment, net of taxes |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,186
|
|
|
1,186
|
|
Total comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,779)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
-
|
|
|
-
|
|
|
52
|
|
|
-
|
|
|
-
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, December 31, 2013
|
|
$
|
85
|
|
$
|
-
|
|
$
|
32,207
|
|
$
|
71,444
|
|
$
|
(437)
|
|
$
|
103,299
|
|
52 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(9,634)
|
|
$
|
(9,638)
|
|
$
|
(897)
|
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses
|
|
|
27,784
|
|
|
27,745
|
|
|
19,470
|
|
Goodwill and other intangible assets impairment
|
|
|
-
|
|
|
-
|
|
|
1,344
|
|
Depreciation and amortization
|
|
|
2,392
|
|
|
2,648
|
|
|
2,341
|
|
Discount accretion on debt securities
|
|
|
(43)
|
|
|
(70)
|
|
|
(156)
|
|
Stock-based compensation expense
|
|
|
78
|
|
|
209
|
|
|
338
|
|
Excess tax benefit from stock-based arrangements
|
|
|
(26)
|
|
|
(106)
|
|
|
(45)
|
|
Deferred income tax benefit
|
|
|
(6,132)
|
|
|
(4,768)
|
|
|
(1,550)
|
|
Gains on sales of investment securities
|
|
|
(913)
|
|
|
(278)
|
|
|
(563)
|
|
(Gains) losses on disposals of premises and equipment
|
|
|
-
|
|
|
(192)
|
|
|
36
|
|
Losses on sales and write-downs of other real estate owned
|
|
|
1,669
|
|
|
2,015
|
|
|
1,222
|
|
Loss on termination of cash flow hedge
|
|
|
1,306
|
|
|
1,339
|
|
|
-
|
|
Net changes in:
|
|
|
|
|
|
|
|
|
|
|
Accrued interest receivable
|
|
|
235
|
|
|
1,137
|
|
|
1,127
|
|
Other assets
|
|
|
4,703
|
|
|
1,351
|
|
|
1,813
|
|
Accrued interest payable
|
|
|
(114)
|
|
|
(230)
|
|
|
(291)
|
|
Other liabilities
|
|
|
(1,458)
|
|
|
224
|
|
|
(2,265)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
19,847
|
|
|
21,386
|
|
|
21,924
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from maturities and principal payments of investment securities
available for sale |
|
|
38,512
|
|
|
47,854
|
|
|
53,343
|
|
Proceeds from sales of investment securities available for sale
|
|
|
40,351
|
|
|
6,275
|
|
|
20,825
|
|
Purchases of investment securities available for sale
|
|
|
(87,243)
|
|
|
(69,491)
|
|
|
(104,305)
|
|
Proceeds from maturities and principal payments of investment securities
held to maturity |
|
|
439
|
|
|
3,810
|
|
|
226
|
|
Net change in loans
|
|
|
12,957
|
|
|
23,896
|
|
|
24,233
|
|
Proceeds from sale of loans
|
|
|
20,565
|
|
|
-
|
|
|
-
|
|
Purchases of premises and equipment
|
|
|
(545)
|
|
|
(2,202)
|
|
|
(1,216)
|
|
Proceeds from sales of premises and equipment
|
|
|
4
|
|
|
317
|
|
|
4
|
|
Proceeds from sales of other real estate owned
|
|
|
5,325
|
|
|
5,742
|
|
|
3,807
|
|
Return of investment (investment in) unconsolidated subsidiary
|
|
|
85
|
|
|
-
|
|
|
(25)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
30,450
|
|
|
16,201
|
|
|
(3,108)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net changes in:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
18,805
|
|
|
20,191
|
|
|
9,613
|
|
Interest-bearing deposits
|
|
|
(134,610)
|
|
|
19,163
|
|
|
20,790
|
|
Short-term borrowings
|
|
|
(3,621)
|
|
|
(4,056)
|
|
|
1,776
|
|
Excess tax benefit from stock-based arrangements
|
|
|
26
|
|
|
106
|
|
|
45
|
|
Repayment of long-term debt
|
|
|
-
|
|
|
(455)
|
|
|
(477)
|
|
Repurchase of warrant
|
|
|
-
|
|
|
-
|
|
|
(25)
|
|
Common stock dividends paid
|
|
|
-
|
|
|
(85)
|
|
|
(760)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities
|
|
|
(119,400)
|
|
|
34,864
|
|
|
30,962
|
|
53 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(69,103)
|
|
|
72,451
|
|
|
49,778
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
|
|
200,193
|
|
|
127,742
|
|
|
77,964
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF YEAR
|
|
$
|
131,090
|
|
$
|
200,193
|
|
$
|
127,742
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
6,589
|
|
$
|
10,792
|
|
$
|
11,379
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid
|
|
$
|
265
|
|
$
|
163
|
|
$
|
2,062
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers from loans to other real estate owned
|
|
$
|
3,071
|
|
$
|
6,031
|
|
$
|
10,712
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers from loans to loans held for sale
|
|
$
|
23,635
|
|
$
|
-
|
|
$
|
-
|
|
54 | ||
55 | ||
56 | ||
57 | ||
58 | ||
59 | ||
60 | ||
61 | ||
|
|
|
|
|
Gross
|
|
Gross
|
|
Estimated
|
|
|||
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
||||
(Dollars in thousands)
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$
|
5,342
|
|
$
|
1
|
|
$
|
-
|
|
$
|
5,343
|
|
U.S. Government agencies
|
|
|
60,754
|
|
|
62
|
|
|
372
|
|
|
60,444
|
|
Mortgage-backed
|
|
|
81,130
|
|
|
520
|
|
|
937
|
|
|
80,713
|
|
Equity
|
|
|
609
|
|
|
-
|
|
|
8
|
|
|
601
|
|
Total
|
|
$
|
147,835
|
|
$
|
583
|
|
$
|
1,317
|
|
$
|
147,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
U.S. Government agencies
|
|
|
35,213
|
|
|
903
|
|
|
9
|
|
|
36,107
|
|
Mortgage-backed
|
|
|
106,524
|
|
|
2,464
|
|
|
208
|
|
|
108,780
|
|
Equity
|
|
|
596
|
|
|
25
|
|
|
-
|
|
|
621
|
|
Total
|
|
$
|
142,333
|
|
$
|
3,392
|
|
$
|
217
|
|
$
|
145,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies
|
|
$
|
2,975
|
|
$
|
-
|
|
$
|
222
|
|
$
|
2,753
|
|
States and political subdivisions
|
|
|
2,210
|
|
|
99
|
|
|
-
|
|
|
2,309
|
|
Total
|
|
$
|
5,185
|
|
$
|
99
|
|
$
|
222
|
|
$
|
5,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
States and political subdivisions
|
|
|
2,657
|
|
|
227
|
|
|
-
|
|
|
2,884
|
|
Total
|
|
$
|
2,657
|
|
$
|
227
|
|
$
|
-
|
|
$
|
2,884
|
|
|
|
Less than
|
|
More than
|
|
|
|
|
|
|
|
||||||||
|
|
12 Months
|
|
12 Months
|
|
Total
|
|
||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
||||||
(Dollars in thousands)
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies
|
|
$
|
33,004
|
|
$
|
372
|
|
$
|
-
|
|
$
|
-
|
|
$
|
33,004
|
|
$
|
372
|
|
Mortgage-backed
|
|
|
28,694
|
|
|
416
|
|
|
19,121
|
|
|
521
|
|
|
47,815
|
|
|
937
|
|
Equity
|
|
|
601
|
|
|
8
|
|
|
-
|
|
|
-
|
|
|
601
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
62,299
|
|
$
|
796
|
|
$
|
19,121
|
|
$
|
521
|
|
$
|
81,420
|
|
$
|
1,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies
|
|
$
|
2,753
|
|
$
|
222
|
|
$
|
-
|
|
$
|
-
|
|
$
|
2,753
|
|
$
|
222
|
|
62 | ||
|
|
Available for sale
|
|
Held to maturity
|
|
||||||||
|
|
Amortized
|
|
Estimated
|
|
Amortized
|
|
Estimated
|
|
||||
(Dollars in thousands)
|
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
|
||||
Due in one year or less
|
|
$
|
2,038
|
|
$
|
2,045
|
|
$
|
267
|
|
$
|
270
|
|
Due after one year through five years
|
|
|
63,667
|
|
|
63,521
|
|
|
433
|
|
|
453
|
|
Due after five years through ten years
|
|
|
3,624
|
|
|
3,640
|
|
|
1,006
|
|
|
1,069
|
|
Due after ten years
|
|
|
77,897
|
|
|
77,294
|
|
|
3,479
|
|
|
3,270
|
|
|
|
|
147,226
|
|
|
146,500
|
|
|
5,185
|
|
|
5,062
|
|
Equity securities
|
|
|
609
|
|
|
601
|
|
|
-
|
|
|
-
|
|
Total
|
|
$
|
147,835
|
|
$
|
147,101
|
|
$
|
5,185
|
|
$
|
5,062
|
|
|
|
December 31, 2013
|
|
December 31, 2012
|
|
||||||||
|
|
Amortized
|
|
Estimated
|
|
Amortized
|
|
Estimated
|
|
||||
(Dollars in thousands)
|
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
|
||||
Pledged available-for-sale securities
|
|
$
|
101,070
|
|
$
|
100,507
|
|
$
|
91,814
|
|
$
|
94,391
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Construction
|
|
$
|
64,591
|
|
$
|
108,051
|
|
Residential real estate
|
|
|
274,857
|
|
|
288,011
|
|
Commercial real estate
|
|
|
304,605
|
|
|
314,941
|
|
Commercial
|
|
|
57,195
|
|
|
60,786
|
|
Consumer
|
|
|
10,671
|
|
|
13,293
|
|
Total loans
|
|
|
711,919
|
|
|
785,082
|
|
Allowance for credit losses
|
|
|
(10,725)
|
|
|
(15,991)
|
|
Total loans, net
|
|
$
|
701,194
|
|
$
|
769,091
|
|
63 | ||
|
|
|
|
|
Residential
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(Dollars in thousands)
|
|
Construction
|
|
real estate
|
|
real estate
|
|
Commercial
|
|
Consumer
|
|
Unallocated
|
|
Total
|
|
|||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
5,569
|
|
$
|
19,748
|
|
$
|
14,462
|
|
$
|
887
|
|
$
|
48
|
|
$
|
-
|
|
$
|
40,714
|
|
Loans collectively evaluated for impairment
|
|
|
59,022
|
|
|
255,109
|
|
|
290,143
|
|
|
56,308
|
|
|
10,623
|
|
|
-
|
|
|
671,205
|
|
Total loans
|
|
$
|
64,591
|
|
$
|
274,857
|
|
$
|
304,605
|
|
$
|
57,195
|
|
$
|
10,671
|
|
$
|
-
|
|
$
|
711,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
204
|
|
$
|
285
|
|
$
|
44
|
|
$
|
245
|
|
$
|
5
|
|
$
|
-
|
|
$
|
783
|
|
Loans collectively evaluated for impairment
|
|
|
1,756
|
|
|
3,569
|
|
|
2,985
|
|
|
1,021
|
|
|
238
|
|
|
373
|
|
|
9,942
|
|
Total allowance for credit losses
|
|
$
|
1,960
|
|
$
|
3,854
|
|
$
|
3,029
|
|
$
|
1,266
|
|
$
|
243
|
|
$
|
373
|
|
$
|
10,725
|
|
|
|
|
|
|
Residential
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(Dollars in thousands)
|
|
Construction
|
|
real estate
|
|
real estate
|
|
Commercial
|
|
Consumer
|
|
Unallocated
|
|
Total
|
|
|||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
37,029
|
|
$
|
18,549
|
|
$
|
32,447
|
|
$
|
715
|
|
$
|
87
|
|
$
|
-
|
|
$
|
88,827
|
|
Loans collectively evaluated for impairment
|
|
|
71,022
|
|
|
269,462
|
|
|
282,494
|
|
|
60,071
|
|
|
13,206
|
|
|
-
|
|
|
696,255
|
|
Total loans
|
|
$
|
108,051
|
|
$
|
288,011
|
|
$
|
314,941
|
|
$
|
60,786
|
|
$
|
13,293
|
|
$
|
-
|
|
$
|
785,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
941
|
|
$
|
598
|
|
$
|
614
|
|
$
|
-
|
|
$
|
48
|
|
$
|
-
|
|
$
|
2,201
|
|
Loans collectively evaluated for impairment
|
|
|
3,446
|
|
|
4,596
|
|
|
3,520
|
|
|
1,682
|
|
|
359
|
|
|
187
|
|
|
13,790
|
|
Total allowance for credit losses
|
|
$
|
4,387
|
|
$
|
5,194
|
|
$
|
4,134
|
|
$
|
1,682
|
|
$
|
407
|
|
$
|
187
|
|
$
|
15,991
|
|
64 | ||
|
|
|
|
|
Recorded
|
|
Recorded
|
|
|
|
|
|
|
|
||
|
|
Unpaid
|
|
investment
|
|
investment
|
|
|
|
|
Average
|
|
||||
|
|
principal
|
|
with no
|
|
with an
|
|
Related
|
|
recorded
|
|
|||||
(Dollars in thousands)
|
|
balance
|
|
allowance
|
|
allowance
|
|
allowance
|
|
investment
|
|
|||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
6,787
|
|
$
|
3,709
|
|
$
|
240
|
|
$
|
203
|
|
$
|
7,270
|
|
Residential real estate
|
|
|
7,692
|
|
|
3,862
|
|
|
1,304
|
|
|
225
|
|
|
10,240
|
|
Commercial real estate
|
|
|
5,218
|
|
|
4,261
|
|
|
410
|
|
|
38
|
|
|
7,829
|
|
Commercial
|
|
|
1,801
|
|
|
547
|
|
|
245
|
|
|
245
|
|
|
619
|
|
Consumer
|
|
|
56
|
|
|
43
|
|
|
5
|
|
|
5
|
|
|
48
|
|
Total
|
|
|
21,554
|
|
|
12,422
|
|
|
2,204
|
|
|
716
|
|
|
26,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired accruing TDRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
1,620
|
|
|
1,527
|
|
|
93
|
|
|
1
|
|
|
14,405
|
|
Residential real estate
|
|
|
14,582
|
|
|
13,177
|
|
|
1,405
|
|
|
60
|
|
|
11,101
|
|
Commercial real estate
|
|
|
9,791
|
|
|
9,006
|
|
|
785
|
|
|
6
|
|
|
13,308
|
|
Commercial
|
|
|
95
|
|
|
95
|
|
|
-
|
|
|
-
|
|
|
105
|
|
Consumer
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
|
|
|
26,088
|
|
|
23,805
|
|
|
2,283
|
|
|
67
|
|
|
38,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
8,407
|
|
|
5,236
|
|
|
333
|
|
|
204
|
|
|
21,675
|
|
Residential real estate
|
|
|
22,274
|
|
|
17,039
|
|
|
2,709
|
|
|
285
|
|
|
21,341
|
|
Commercial real estate
|
|
|
15,009
|
|
|
13,267
|
|
|
1,195
|
|
|
44
|
|
|
21,137
|
|
Commercial
|
|
|
1,896
|
|
|
642
|
|
|
245
|
|
|
245
|
|
|
724
|
|
Consumer
|
|
|
56
|
|
|
43
|
|
|
5
|
|
|
5
|
|
|
48
|
|
Total
|
|
$
|
47,642
|
|
$
|
36,227
|
|
$
|
4,487
|
|
$
|
783
|
|
$
|
64,925
|
|
65 | ||
|
|
|
|
Recorded
|
|
Recorded
|
|
|
|
|
|
|||||
|
|
Unpaid
|
|
investment
|
|
investment
|
|
|
|
Average
|
|
|||||
|
|
principal
|
|
with no
|
|
with an
|
|
Related
|
|
recorded
|
|
|||||
(Dollars in thousands)
|
|
balance
|
|
allowance
|
|
allowance
|
|
allowance
|
|
investment
|
|
|||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
14,288
|
|
$
|
3,371
|
|
$
|
6,323
|
|
$
|
941
|
|
$
|
12,428
|
|
Residential real estate
|
|
|
17,975
|
|
|
9,469
|
|
|
2,063
|
|
|
598
|
|
|
17,472
|
|
Commercial real estate
|
|
|
19,515
|
|
|
11,838
|
|
|
2,729
|
|
|
614
|
|
|
12,975
|
|
Commercial
|
|
|
1,556
|
|
|
594
|
|
|
-
|
|
|
-
|
|
|
1,538
|
|
Consumer
|
|
|
92
|
|
|
39
|
|
|
48
|
|
|
48
|
|
|
55
|
|
Total
|
|
|
53,426
|
|
|
25,311
|
|
|
11,163
|
|
|
2,201
|
|
|
44,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired accruing TDRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
27,335
|
|
|
27,335
|
|
|
-
|
|
|
-
|
|
|
21,193
|
|
Residential real estate
|
|
|
7,017
|
|
|
7,017
|
|
|
-
|
|
|
-
|
|
|
5,064
|
|
Commercial real estate
|
|
|
17,880
|
|
|
17,880
|
|
|
-
|
|
|
-
|
|
|
16,252
|
|
Commercial
|
|
|
121
|
|
|
121
|
|
|
-
|
|
|
-
|
|
|
87
|
|
Consumer
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
|
|
|
52,353
|
|
|
52,353
|
|
|
-
|
|
|
-
|
|
|
42,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
41,623
|
|
|
30,706
|
|
|
6,323
|
|
|
941
|
|
|
33,621
|
|
Residential real estate
|
|
|
24,992
|
|
|
16,486
|
|
|
2,063
|
|
|
598
|
|
|
22,536
|
|
Commercial real estate
|
|
|
37,395
|
|
|
29,718
|
|
|
2,729
|
|
|
614
|
|
|
29,227
|
|
Commercial
|
|
|
1,677
|
|
|
715
|
|
|
-
|
|
|
-
|
|
|
1,625
|
|
Consumer
|
|
|
92
|
|
|
39
|
|
|
48
|
|
|
48
|
|
|
55
|
|
Total
|
|
$
|
105,779
|
|
$
|
77,664
|
|
$
|
11,163
|
|
$
|
2,201
|
|
$
|
87,064
|
|
|
|
|
|
Premodification
|
|
Postmodification
|
|
|
|
|||
|
|
|
|
outstanding
|
|
outstanding
|
|
|
|
|||
|
|
Number of
|
|
recorded
|
|
recorded
|
|
Related
|
|
|||
(Dollars in thousands)
|
|
contracts
|
|
investment
|
|
investment
|
|
allowance
|
|
|||
TDRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
3
|
|
$
|
218
|
|
$
|
218
|
|
$
|
-
|
|
Residential real estate
|
|
7
|
|
|
12,485
|
|
|
12,494
|
|
|
38
|
|
Commercial real estate
|
|
4
|
|
|
2,212
|
|
|
2,211
|
|
|
82
|
|
Commercial
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Consumer
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
|
|
14
|
|
$
|
14,915
|
|
$
|
14,923
|
|
$
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
12
|
|
$
|
17,347
|
|
$
|
17,361
|
|
$
|
-
|
|
Residential real estate
|
|
17
|
|
|
5,264
|
|
|
4,908
|
|
|
-
|
|
Commercial real estate
|
|
8
|
|
|
7,389
|
|
|
7,537
|
|
|
-
|
|
Commercial
|
|
2
|
|
|
76
|
|
|
60
|
|
|
-
|
|
Consumer
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
|
|
39
|
|
$
|
30,076
|
|
$
|
29,866
|
|
$
|
-
|
|
66 | ||
|
|
Number of
|
|
Recorded
|
|
Related
|
|
||
(Dollars in thousands)
|
|
contracts
|
|
investment
|
|
allowance
|
|
||
TDRs that subsequently defaulted (1):
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
Construction
|
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Residential real estate
|
|
6
|
|
|
1,918
|
|
|
-
|
|
Commercial real estate
|
|
2
|
|
|
2,151
|
|
|
74
|
|
Commercial
|
|
-
|
|
|
-
|
|
|
-
|
|
Consumer
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
|
|
8
|
|
$
|
4,069
|
|
$
|
74
|
|
|
|
|
|
|
|
|
|
|
|
TDRs that subsequently defaulted (2):
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
Construction
|
|
1
|
|
$
|
666
|
|
$
|
-
|
|
Residential real estate
|
|
3
|
|
|
913
|
|
|
-
|
|
Commercial real estate
|
|
-
|
|
|
-
|
|
|
-
|
|
Commercial
|
|
-
|
|
|
-
|
|
|
-
|
|
Consumer
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
|
|
4
|
|
$
|
1,579
|
|
$
|
-
|
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
|
||||||
(Dollars in thousands)
|
|
Pass/Performing
|
|
mention
|
|
Substandard
|
|
Doubtful
|
|
Nonaccrual
|
|
Total
|
|
||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
40,210
|
|
$
|
15,708
|
|
$
|
4,724
|
|
$
|
-
|
|
$
|
3,949
|
|
$
|
64,591
|
|
Residential real estate
|
|
|
233,359
|
|
|
22,486
|
|
|
13,846
|
|
|
-
|
|
|
5,166
|
|
|
274,857
|
|
Commercial real estate
|
|
|
255,288
|
|
|
30,105
|
|
|
14,541
|
|
|
-
|
|
|
4,671
|
|
|
304,605
|
|
Commercial
|
|
|
52,032
|
|
|
3,691
|
|
|
680
|
|
|
-
|
|
|
792
|
|
|
57,195
|
|
Consumer
|
|
|
10,451
|
|
|
48
|
|
|
124
|
|
|
-
|
|
|
48
|
|
|
10,671
|
|
Total
|
|
$
|
591,340
|
|
$
|
72,038
|
|
$
|
33,915
|
|
$
|
-
|
|
$
|
14,626
|
|
$
|
711,919
|
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
|
||||||
(Dollars in thousands)
|
|
Pass/Performing
|
|
mention
|
|
Substandard
|
|
Doubtful
|
|
Nonaccrual
|
|
Total
|
|
||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
45,385
|
|
$
|
30,817
|
|
$
|
22,155
|
|
$
|
-
|
|
$
|
9,694
|
|
$
|
108,051
|
|
Residential real estate
|
|
|
237,299
|
|
|
23,657
|
|
|
15,090
|
|
|
433
|
|
|
11,532
|
|
|
288,011
|
|
Commercial real estate
|
|
|
257,418
|
|
|
21,554
|
|
|
21,402
|
|
|
-
|
|
|
14,567
|
|
|
314,941
|
|
Commercial
|
|
|
55,432
|
|
|
3,062
|
|
|
1,639
|
|
|
59
|
|
|
594
|
|
|
60,786
|
|
Consumer
|
|
|
13,147
|
|
|
-
|
|
|
59
|
|
|
-
|
|
|
87
|
|
|
13,293
|
|
Total
|
|
$
|
608,681
|
|
$
|
79,090
|
|
$
|
60,345
|
|
$
|
492
|
|
$
|
36,474
|
|
$
|
785,082
|
|
67 | ||
|
|
Accruing
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
30-59
|
|
|
60-89
|
|
|
90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
days past
|
|
|
days past
|
|
|
or more
|
|
|
Total past
|
|
|
Non-
|
|
|
|
|
|
|||||
(Dollars in thousands)
|
|
Current
|
|
|
due
|
|
|
due
|
|
|
past due
|
|
|
due
|
|
|
accrual
|
|
|
Total
|
|
|||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
60,642
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3,949
|
|
|
$
|
64,591
|
|
Residential real estate
|
|
|
265,182
|
|
|
|
2,765
|
|
|
|
1,724
|
|
|
|
20
|
|
|
|
4,509
|
|
|
|
5,166
|
|
|
|
274,857
|
|
Commercial real estate
|
|
|
299,295
|
|
|
|
639
|
|
|
|
-
|
|
|
|
-
|
|
|
|
639
|
|
|
|
4,671
|
|
|
|
304,605
|
|
Commercial
|
|
|
55,576
|
|
|
|
330
|
|
|
|
247
|
|
|
|
250
|
|
|
|
827
|
|
|
|
792
|
|
|
|
57,195
|
|
Consumer
|
|
|
10,469
|
|
|
|
23
|
|
|
|
131
|
|
|
|
-
|
|
|
|
154
|
|
|
|
48
|
|
|
|
10,671
|
|
Total
|
|
$
|
691,164
|
|
|
$
|
3,757
|
|
|
$
|
2,102
|
|
|
$
|
270
|
|
|
$
|
6,129
|
|
|
$
|
14,626
|
|
|
$
|
711,919
|
|
Percent of total loans
|
|
|
97.1
|
%
|
|
|
0.5
|
%
|
|
|
0.3
|
%
|
|
|
-
|
%
|
|
|
0.8
|
%
|
|
|
2.1
|
%
|
|
|
|
|
|
|
Accruing
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
30-59
|
|
|
60-89
|
|
|
90 days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
days past
|
|
|
days past
|
|
|
or more
|
|
|
Total past
|
|
|
Non-
|
|
|
|
|
|
|||||
(Dollars in thousands)
|
|
Current
|
|
|
due
|
|
|
due
|
|
|
past due
|
|
|
due
|
|
|
accrual
|
|
|
Total
|
|
|||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
98,221
|
|
|
$
|
136
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
136
|
|
|
$
|
9,694
|
|
|
$
|
108,051
|
|
Residential real estate
|
|
|
272,311
|
|
|
|
3,116
|
|
|
|
762
|
|
|
|
290
|
|
|
|
4,168
|
|
|
|
11,532
|
|
|
|
288,011
|
|
Commercial real estate
|
|
|
298,522
|
|
|
|
887
|
|
|
|
800
|
|
|
|
165
|
|
|
|
1,852
|
|
|
|
14,567
|
|
|
|
314,941
|
|
Commercial
|
|
|
59,746
|
|
|
|
380
|
|
|
|
66
|
|
|
|
-
|
|
|
|
446
|
|
|
|
594
|
|
|
|
60,786
|
|
Consumer
|
|
|
13,125
|
|
|
|
57
|
|
|
|
19
|
|
|
|
5
|
|
|
|
81
|
|
|
|
87
|
|
|
|
13,293
|
|
Total
|
|
$
|
741,925
|
|
|
$
|
4,576
|
|
|
$
|
1,647
|
|
|
$
|
460
|
|
|
$
|
6,683
|
|
|
$
|
36,474
|
|
|
$
|
785,082
|
|
Percent of total loans
|
|
|
94.5
|
%
|
|
|
0.6
|
%
|
|
|
0.2
|
%
|
|
|
0.1
|
%
|
|
|
0.9
|
%
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
Residential
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(Dollars in thousands)
|
|
Construction
|
|
real estate
|
|
real estate
|
|
Commercial
|
|
Consumer
|
|
Unallocated
|
|
Total
|
|
|||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
4,387
|
|
$
|
5,194
|
|
$
|
4,134
|
|
$
|
1,682
|
|
$
|
407
|
|
$
|
187
|
|
$
|
15,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
(20,695)
|
|
|
(7,163)
|
|
|
(6,162)
|
|
|
(665)
|
|
|
(113)
|
|
|
-
|
|
|
(34,798)
|
|
Recoveries
|
|
|
161
|
|
|
545
|
|
|
161
|
|
|
839
|
|
|
42
|
|
|
-
|
|
|
1,748
|
|
Net charge-offs
|
|
|
(20,534)
|
|
|
(6,618)
|
|
|
(6,001)
|
|
|
174
|
|
|
(71)
|
|
|
-
|
|
|
(33,050)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
|
|
|
18,107
|
|
|
5,278
|
|
|
4,896
|
|
|
(590)
|
|
|
(93)
|
|
|
186
|
|
|
27,784
|
|
Ending balance
|
|
$
|
1,960
|
|
$
|
3,854
|
|
$
|
3,029
|
|
$
|
1,266
|
|
$
|
243
|
|
$
|
373
|
|
$
|
10,725
|
|
68 | ||
|
|
|
|
|
Residential
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(Dollars in thousands)
|
|
Construction
|
|
real estate
|
|
real estate
|
|
Commercial
|
|
Consumer
|
|
Unallocated
|
|
Total
|
|
|||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
3,745
|
|
$
|
5,014
|
|
$
|
3,415
|
|
$
|
1,498
|
|
$
|
594
|
|
$
|
22
|
|
$
|
14,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
(7,826)
|
|
|
(9,838)
|
|
|
(2,954)
|
|
|
(5,451)
|
|
|
(576)
|
|
|
-
|
|
|
(26,645)
|
|
Recoveries
|
|
|
6
|
|
|
102
|
|
|
166
|
|
|
304
|
|
|
25
|
|
|
-
|
|
|
603
|
|
Net charge-offs
|
|
|
(7,820)
|
|
|
(9,736)
|
|
|
(2,788)
|
|
|
(5,147)
|
|
|
(551)
|
|
|
-
|
|
|
(26,042)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
|
|
|
8,462
|
|
|
9,916
|
|
|
3,507
|
|
|
5,331
|
|
|
364
|
|
|
165
|
|
|
27,745
|
|
Ending balance
|
|
$
|
4,387
|
|
$
|
5,194
|
|
$
|
4,134
|
|
$
|
1,682
|
|
$
|
407
|
|
$
|
187
|
|
$
|
15,991
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Land
|
|
$
|
5,818
|
|
$
|
5,818
|
|
Buildings and land improvements
|
|
|
13,459
|
|
|
13,159
|
|
Furniture and equipment
|
|
|
7,650
|
|
|
7,589
|
|
|
|
|
26,927
|
|
|
26,566
|
|
Accumulated depreciation
|
|
|
(11,729)
|
|
|
(10,973)
|
|
Total
|
|
$
|
15,198
|
|
$
|
15,593
|
|
(Dollars in thousands)
|
|
|||
2014
|
|
$
|
617
|
|
2015
|
|
|
263
|
|
2016
|
|
|
248
|
|
2017
|
|
|
250
|
|
2018
|
|
|
255
|
|
Thereafter
|
|
|
883
|
|
Total minimum lease payments
|
|
$
|
2,516
|
|
69 | ||
|
|
December 31, 2013
|
|
December 31, 2012
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
Average
|
|
||||||||
|
|
Gross
|
|
Accumulated
|
|
|
|
Net
|
|
Remaining
|
|
Gross
|
|
Accumulated
|
|
|
|
Net
|
|
Remaining
|
|
||||||||
|
|
Carrying
|
|
Impairment
|
|
Accumulated
|
|
Carrying
|
|
Life
|
|
Carrying
|
|
Impairment
|
|
Accumulated
|
|
Carrying
|
|
Life
|
|
||||||||
(Dollars in thousands)
|
|
Amount
|
|
Charges
|
|
Amortization
|
|
Amount
|
|
(in years)
|
|
Amount
|
|
Charges
|
|
Amortization
|
|
Amount
|
|
(in years)
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
$
|
17,345
|
|
$
|
(4,224)
|
|
$
|
(667)
|
|
$
|
12,454
|
|
-
|
|
$
|
17,345
|
|
$
|
(4,224)
|
|
$
|
(667)
|
|
$
|
12,454
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortizable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employment agreements
|
|
$
|
1,730
|
|
$
|
-
|
|
$
|
(1,448)
|
|
$
|
282
|
|
1.7
|
|
$
|
1,730
|
|
$
|
-
|
|
$
|
(1,286)
|
|
$
|
444
|
|
2.0
|
|
Insurance expirations
|
|
|
1,270
|
|
|
-
|
|
|
(979)
|
|
|
291
|
|
3.4
|
|
|
1,270
|
|
|
-
|
|
|
(894)
|
|
|
376
|
|
4.4
|
|
Customer relationships
|
|
|
960
|
|
|
(126)
|
|
|
(352)
|
|
|
482
|
|
9.7
|
|
|
960
|
|
|
(126)
|
|
|
(303)
|
|
|
531
|
|
10.7
|
|
|
|
|
3,960
|
|
|
(126)
|
|
|
(2,779)
|
|
|
1,055
|
|
|
|
|
4,928
|
|
|
(126)
|
|
|
(3,451)
|
|
|
1,351
|
|
|
|
Unamortizable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrier relationships
|
|
|
1,300
|
|
|
(45)
|
|
|
-
|
|
|
1,255
|
|
-
|
|
|
1,300
|
|
|
(45)
|
|
|
-
|
|
|
1,255
|
|
-
|
|
Trade name
|
|
|
1,210
|
|
|
-
|
|
|
-
|
|
|
1,210
|
|
-
|
|
|
1,210
|
|
|
-
|
|
|
-
|
|
|
1,210
|
|
-
|
|
|
|
|
2,510
|
|
|
(45)
|
|
|
-
|
|
|
2,465
|
|
|
|
|
2,510
|
|
|
(45)
|
|
|
-
|
|
|
2,465
|
|
|
|
Total other intangible assets
|
|
$
|
6,470
|
|
$
|
(171)
|
|
$
|
(2,779)
|
|
$
|
3,520
|
|
|
|
$
|
7,438
|
|
$
|
(171)
|
|
$
|
(3,451)
|
|
$
|
3,816
|
|
|
|
|
|
Amortization
|
|
|
(Dollars in thousands)
|
|
Expense
|
|
|
Year ended December 31, 2013
|
|
$
|
296
|
|
|
|
|
|
|
Estimate for years ended December 31, 2014
|
|
|
296
|
|
2015
|
|
|
255
|
|
2016
|
|
|
134
|
|
2017
|
|
|
87
|
|
2018
|
|
|
50
|
|
70 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Nonmarketable investment securities
|
|
$
|
2,058
|
|
$
|
2,750
|
|
Accrued interest receivable
|
|
|
2,561
|
|
|
2,796
|
|
Insurance premiums receivable
|
|
|
887
|
|
|
1,089
|
|
Income taxes receivable
|
|
|
183
|
|
|
2,157
|
|
Deferred income taxes (1)
|
|
|
19,090
|
|
|
12,183
|
|
Prepaid expenses
|
|
|
700
|
|
|
2,227
|
|
Other assets
|
|
|
5,603
|
|
|
5,634
|
|
Total
|
|
$
|
31,082
|
|
$
|
28,836
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Accrued interest payable
|
|
$
|
225
|
|
$
|
339
|
|
Other accounts payable
|
|
|
3,543
|
|
|
3,657
|
|
Deferred compensation liability
|
|
|
1,505
|
|
|
2,431
|
|
Other liabilities
|
|
|
1,944
|
|
|
2,320
|
|
Total
|
|
$
|
7,217
|
|
$
|
8,747
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Due in one year or less
|
|
$
|
184,836
|
|
$
|
245,004
|
|
Due in one to three years
|
|
|
121,403
|
|
|
108,947
|
|
Due in three to five years
|
|
|
66,565
|
|
|
74,834
|
|
Total
|
|
$
|
372,804
|
|
$
|
428,785
|
|
|
|
2013
|
|
|
2012
|
|
||||||
(Dollars in thousands)
|
|
Amount
|
|
Rate
|
|
|
Amount
|
|
Rate
|
|
||
Average for the Year
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail repurchase agreements
|
|
$
|
10,980
|
|
0.24
|
%
|
|
$
|
14,976
|
|
0.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At Year End
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail repurchase agreements
|
|
$
|
10,140
|
|
0.23
|
%
|
|
$
|
13,761
|
|
0.26
|
%
|
71 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Stock-based compensation expense
|
|
$
|
78
|
|
$
|
209
|
|
$
|
338
|
|
Excess tax expense related to stock-based
compensation |
|
|
26
|
|
|
106
|
|
|
45
|
|
|
|
|
December 31,
|
|
||||||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Unrecognized stock-based compensation
expense |
|
$
|
136
|
|
$
|
143
|
|
$
|
167
|
|
Weighted average period unrecognized
expense is expected to be recognized |
|
|
1.7 years
|
|
|
2.1 years
|
|
|
8.5 months
|
|
|
|
Year Ended December 31, 2013
|
|
Year Ended December 31, 2012
|
|
||||||
|
|
|
|
Weighted Average
|
|
|
|
Weighted Average
|
|
||
|
|
Number
|
|
Grant Date
|
|
Number
|
|
Grant Date
|
|
||
|
|
of Shares
|
|
Fair Value
|
|
of Shares
|
|
Fair Value
|
|
||
Nonvested at beginning of year
|
|
6,548
|
|
$
|
14.89
|
|
45,779
|
|
$
|
13.20
|
|
Granted
|
|
13,930
|
|
|
8.33
|
|
-
|
|
|
-
|
|
Vested
|
|
(6,548)
|
|
|
14.89
|
|
(39,231)
|
|
|
12.92
|
|
Cancelled
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonvested at end of year
|
|
13,930
|
|
$
|
8.33
|
|
6,548
|
|
$
|
14.89
|
|
72 | ||
|
|
Year Ended December 31, 2013
|
|
Year Ended December 31, 2012
|
|
||||||
|
|
Number
|
|
Weighted Average
|
|
Number
|
|
Weighted Average
|
|
||
|
|
of shares
|
|
Exercise Price
|
|
of shares
|
|
Exercise Price
|
|
||
Outstanding at beginning of year
|
|
54,216
|
|
$
|
6.64
|
|
-
|
|
$
|
-
|
|
Granted
|
|
-
|
|
|
-
|
|
54,216
|
|
|
6.64
|
|
Exercised
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
Expired/Cancelled
|
|
(13,554)
|
|
|
6.64
|
|
-
|
|
|
-
|
|
Outstanding at end of year
|
|
40,662
|
|
$
|
6.64
|
|
54,216
|
|
$
|
6.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable at end of year
|
|
-
|
|
$
|
-
|
|
-
|
|
$
|
-
|
|
Dividend yield
|
|
0.60
|
%
|
Expected volatility
|
|
58.65
|
%
|
Risk-free interest rate
|
|
1.69
|
%
|
Expected contract life (in years)
|
|
5.83
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Deferred compensation contribution
|
|
$
|
9
|
|
$
|
20
|
|
$
|
65
|
|
|
|
December 31,
|
|
||||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Deferred compensation liability
|
|
$
|
404
|
|
$
|
632
|
|
73 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Cash surrender value
|
|
$
|
3,256
|
|
$
|
3,143
|
|
Accrued benefit obligation
|
|
|
1,101
|
|
|
1,171
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Current tax (benefit) expense:
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
(459)
|
|
$
|
(2,007)
|
|
$
|
656
|
|
State
|
|
|
90
|
|
|
210
|
|
|
236
|
|
|
|
|
(369)
|
|
|
(1,797)
|
|
|
892
|
|
Deferred income tax benefit:
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(4,592)
|
|
|
(3,110)
|
|
|
(1,233)
|
|
State
|
|
|
(1,540)
|
|
|
(1,658)
|
|
|
(317)
|
|
|
|
|
(6,132)
|
|
|
(4,768)
|
|
|
(1,550)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax benefit
|
|
$
|
(6,501)
|
|
$
|
(6,565)
|
|
$
|
(658)
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
Tax at federal statutory rate
|
|
34.0
|
%
|
34.0
|
%
|
34.0
|
%
|
Tax effect of:
|
|
|
|
|
|
|
|
Tax-exempt income
|
|
0.4
|
|
0.6
|
|
8.8
|
|
Non-deductible goodwill impairment charges
|
|
-
|
|
-
|
|
(6.0)
|
|
Other non-deductible expenses
|
|
(0.2)
|
|
(0.2)
|
|
(2.1)
|
|
State income taxes, net of federal benefit
|
|
5.9
|
|
5.9
|
|
3.6
|
|
Other
|
|
0.2
|
|
0.2
|
|
4.0
|
|
|
|
|
|
|
|
|
|
Actual income tax expense rate
|
|
40.3
|
%
|
40.5
|
%
|
42.3
|
%
|
74 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Deferred tax assets:
|
|
|
|
|
|
|
|
Allowance for credit losses
|
|
$
|
4,298
|
|
$
|
6,421
|
|
Reserve for off-balance sheet commitments
|
|
|
180
|
|
|
166
|
|
Net operating loss carry forward
|
|
|
14,430
|
|
|
3,367
|
|
Write-downs of other real estate owned
|
|
|
400
|
|
|
742
|
|
Deferred income
|
|
|
1,108
|
|
|
2,370
|
|
Accrued expenses
|
|
|
936
|
|
|
1,353
|
|
Loss on termination of cash flow hedge
|
|
|
-
|
|
|
540
|
|
Unrealized losses on interest rate caps
|
|
|
-
|
|
|
803
|
|
Unrealized losses on available-for-sale securities
|
|
|
296
|
|
|
-
|
|
Other
|
|
|
83
|
|
|
55
|
|
Total deferred tax assets
|
|
|
21,731
|
|
|
15,817
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
463
|
|
|
515
|
|
Purchase accounting adjustments
|
|
|
1,305
|
|
|
1,009
|
|
Deferred capital gain on branch sale
|
|
|
438
|
|
|
451
|
|
Deferred gains on interest rate swaps
|
|
|
-
|
|
|
169
|
|
Unrealized gains on available-for-sale securities
|
|
|
-
|
|
|
1,282
|
|
Other
|
|
|
435
|
|
|
208
|
|
Total deferred tax liabilities
|
|
|
2,641
|
|
|
3,634
|
|
Net deferred tax assets
|
|
$
|
19,090
|
|
$
|
12,183
|
|
(In thousands, except per share data)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(9,634)
|
|
$
|
(9,638)
|
|
$
|
(897)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding basic
|
|
|
8,461
|
|
|
8,457
|
|
|
8,451
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of common stock equivalents
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding diluted
|
|
|
8,461
|
|
|
8,457
|
|
|
8,451
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share basic
|
|
$
|
(1.14)
|
|
$
|
(1.14)
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share diluted
|
|
$
|
(1.14)
|
|
$
|
(1.14)
|
|
$
|
(0.11)
|
|
75 | ||
|
|
|
|
|
Total
|
|
Net
|
|
|
|
|
Tier 1
|
|
Total
|
|
|
|
||
|
|
|
|
|
Risk-
|
|
Risk-
|
|
Adjusted
|
|
Risk-Based
|
|
Risk-Based
|
|
Tier 1
|
|
|||
December 31, 2013
|
|
Tier 1
|
|
Based
|
|
Weighted
|
|
Average
|
|
Capital
|
|
Capital
|
|
Leverage
|
|
||||
(Dollars in thousands)
|
|
Capital
|
|
Capital
|
|
Assets
|
|
Total Assets
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|
||||
Company
|
|
$
|
72,370
|
|
$
|
81,341
|
|
$
|
717,129
|
|
$
|
1,028,957
|
|
10.09
|
%
|
11.34
|
%
|
7.03
|
%
|
Talbot Bank
|
|
|
28,395
|
|
|
33,554
|
|
|
410,547
|
|
|
569,689
|
|
6.92
|
|
8.17
|
|
4.98
|
|
CNB
|
|
|
42,186
|
|
|
45,998
|
|
|
305,278
|
|
|
460,747
|
|
13.82
|
|
15.07
|
|
9.16
|
|
|
|
|
|
|
Total
|
|
Net
|
|
|
|
Tier 1
|
|
Total
|
|
|
|
|||
|
|
|
|
|
Risk-
|
|
Risk-
|
|
Adjusted
|
|
Risk-Based
|
|
Risk-Based
|
|
Tier 1
|
|
|||
December 31, 2012
|
|
Tier 1
|
|
Based
|
|
Weighted
|
|
Average
|
|
Capital
|
|
Capital
|
|
Leverage
|
|
||||
(Dollars in thousands)
|
|
Capital
|
|
Capital
|
|
Assets
|
|
Total Assets
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|
||||
Company
|
|
$
|
97,049
|
|
$
|
107,208
|
|
$
|
805,108
|
|
$
|
1,166,865
|
|
12.05
|
%
|
13.32
|
%
|
8.32
|
%
|
Talbot Bank
|
|
|
53,496
|
|
|
59,847
|
|
|
501,612
|
|
|
713,472
|
|
10.66
|
|
11.93
|
|
7.50
|
|
CNB
|
|
|
41,976
|
|
|
45,780
|
|
|
303,627
|
|
|
450,109
|
|
13.82
|
|
15.08
|
|
9.33
|
|
76 | ||
|
|
Accumulated net
|
|
Accumulated net
|
|
|
|
|||
|
|
unrealized holding
|
|
unrealized holding
|
|
Accumulated
|
|
|||
|
|
gains (losses) on
|
|
gains (losses) on
|
|
other
|
|
|||
|
|
available for sale
|
|
cash flow hedging
|
|
comprehensive
|
|
|||
(Dollars in thousands)
|
|
securities
|
|
activities
|
|
income (loss)
|
|
|||
Balance, December 31, 2012
|
|
$
|
1,894
|
|
$
|
(1,186)
|
|
$
|
708
|
|
Other comprehensive (loss) income
|
|
|
(1,786)
|
|
|
407
|
|
|
(1,379)
|
|
Reclassification of (gains) losses recognized
|
|
|
(545)
|
|
|
779
|
|
|
234
|
|
Balance, December 31, 2013
|
|
$
|
(437)
|
|
$
|
-
|
|
$
|
(437)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2011
|
|
$
|
1,370
|
|
$
|
(3,059)
|
|
$
|
(1,689)
|
|
Other comprehensive income
|
|
|
690
|
|
|
1,074
|
|
|
1,764
|
|
Reclassification of (gains) losses recognized
|
|
|
(166)
|
|
|
799
|
|
|
633
|
|
Balance, December 31, 2012
|
|
$
|
1,894
|
|
$
|
(1,186)
|
|
$
|
708
|
|
77 | ||
|
|
|
|
|
|
|
|
Significant Other
|
|
Significant
|
|
||
|
|
|
|
|
Quoted Prices
|
|
Observable Inputs
|
|
Unobservable Inputs
|
|
|||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$
|
5,343
|
|
$
|
5,343
|
|
$
|
-
|
|
$
|
-
|
|
U.S. Government agencies
|
|
|
60,444
|
|
|
-
|
|
|
60,444
|
|
|
-
|
|
Mortgage-backed
|
|
|
80,713
|
|
|
-
|
|
|
80,713
|
|
|
-
|
|
Equity
|
|
|
601
|
|
|
-
|
|
|
601
|
|
|
-
|
|
Total
|
|
$
|
147,101
|
|
$
|
5,343
|
|
$
|
141,758
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate caps
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Significant Other
|
|
Significant
|
|
||
|
|
|
|
|
Quoted Prices
|
|
Observable Inputs
|
|
Unobservable Inputs
|
|
|||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
U.S. Government agencies
|
|
|
36,107
|
|
|
-
|
|
|
36,107
|
|
|
-
|
|
Mortgage-backed
|
|
|
108,780
|
|
|
-
|
|
|
108,780
|
|
|
-
|
|
Equity
|
|
|
621
|
|
|
-
|
|
|
621
|
|
|
-
|
|
Total
|
|
$
|
145,508
|
|
$
|
-
|
|
$
|
145,508
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate caps
|
|
$
|
14
|
|
$
|
-
|
|
$
|
14
|
|
$
|
-
|
|
78 | ||
|
|
|
|
|
|
|
|
Significant Other
|
|
Significant
|
|
||
|
|
|
|
|
Quoted Prices
|
|
Observable Inputs
|
|
Unobservable Inputs
|
|
|||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
5,365
|
|
$
|
-
|
|
$
|
5,365
|
|
$
|
-
|
|
Residential real estate
|
|
|
19,463
|
|
|
-
|
|
|
19,463
|
|
|
-
|
|
Commercial real estate
|
|
|
14,418
|
|
|
-
|
|
|
14,418
|
|
|
-
|
|
Commercial
|
|
|
642
|
|
|
-
|
|
|
642
|
|
|
-
|
|
Consumer
|
|
|
43
|
|
|
-
|
|
|
43
|
|
|
-
|
|
Total impaired loans
|
|
|
39,931
|
|
|
-
|
|
|
39,931
|
|
|
-
|
|
Loans held for sale
|
|
|
3,521
|
|
|
-
|
|
|
3,521
|
|
|
-
|
|
Other real estate owned
|
|
|
3,779
|
|
|
-
|
|
|
3,779
|
|
|
-
|
|
Total assets measured at fair value
on a nonrecurring basis |
|
$
|
47,231
|
|
$
|
-
|
|
$
|
47,231
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Significant Other
|
|
Significant
|
|
||
|
|
|
|
|
Quoted Prices
|
|
Observable Inputs
|
|
Unobservable Inputs
|
|
|||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
36,088
|
|
$
|
-
|
|
$
|
36,088
|
|
$
|
-
|
|
Residential real estate
|
|
|
17,951
|
|
|
-
|
|
|
17,951
|
|
|
-
|
|
Commercial real estate
|
|
|
31,833
|
|
|
-
|
|
|
31,833
|
|
|
-
|
|
Commercial
|
|
|
715
|
|
|
-
|
|
|
715
|
|
|
-
|
|
Consumer
|
|
|
39
|
|
|
-
|
|
|
39
|
|
|
-
|
|
Total impaired loans
|
|
|
86,626
|
|
|
-
|
|
|
86,626
|
|
|
-
|
|
Loans held for sale
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Other real estate owned
|
|
|
7,659
|
|
|
-
|
|
|
7,659
|
|
|
-
|
|
Total assets measured at fair value
on a nonrecurring basis |
|
$
|
94,285
|
|
$
|
-
|
|
$
|
94,285
|
|
$
|
-
|
|
79 | ||
|
|
December 31, 2013
|
|
December 31, 2012
|
|
||||||||
|
|
|
|
|
Estimated
|
|
|
|
|
Estimated
|
|
||
|
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
|
||||
(Dollars in thousands)
|
|
Amount
|
|
Value
|
|
Amount
|
|
Value
|
|
||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 2 inputs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
131,090
|
|
$
|
131,090
|
|
$
|
200,193
|
|
$
|
200,193
|
|
Investment securities held to maturity
|
|
|
5,185
|
|
|
5,062
|
|
|
2,657
|
|
|
2,884
|
|
Loans, net
|
|
|
701,194
|
|
|
721,688
|
|
|
769,091
|
|
|
798,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 2 inputs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
933,468
|
|
$
|
934,943
|
|
$
|
1,049,273
|
|
$
|
1,052,382
|
|
Short-term borrowings
|
|
|
10,140
|
|
|
10,140
|
|
|
13,761
|
|
|
13,761
|
|
80 | ||
81 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Commitments to extend credit
|
|
$
|
116,596
|
|
$
|
141,518
|
|
Letters of credit
|
|
|
10,477
|
|
|
12,817
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
127,073
|
|
$
|
154,335
|
|
82 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
||
Assets
|
|
|
|
|
|
|
|
Cash
|
|
$
|
987
|
|
$
|
820
|
|
Investment in subsidiaries
|
|
|
102,815
|
|
|
113,529
|
|
Premises and equipment, net
|
|
|
2,726
|
|
|
2,616
|
|
Other assets
|
|
|
1,284
|
|
|
1,601
|
|
Total assets
|
|
$
|
107,812
|
|
$
|
118,566
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deferred tax liability
|
|
$
|
1,628
|
|
$
|
1,687
|
|
Other liabilities
|
|
|
542
|
|
|
510
|
|
Long-term debt
|
|
|
2,343
|
|
|
2,343
|
|
Total liabilities
|
|
|
4,513
|
|
|
4,540
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
Common stock
|
|
|
85
|
|
|
85
|
|
Additional paid in capital
|
|
|
32,207
|
|
|
32,155
|
|
Retained earnings
|
|
|
71,444
|
|
|
81,078
|
|
Accumulated other comprehensive (loss) income
|
|
|
(437)
|
|
|
708
|
|
Total stockholders’ equity
|
|
|
103,299
|
|
|
114,026
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
107,812
|
|
$
|
118,566
|
|
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Income
|
|
|
|
|
|
|
|
|
|
|
Dividends from subsidiaries
|
|
$
|
2,163
|
|
$
|
3,154
|
|
$
|
1,519
|
|
Management and other fees from subsidiaries
|
|
|
6,226
|
|
|
5,692
|
|
|
5,783
|
|
Other income
|
|
|
31
|
|
|
180
|
|
|
251
|
|
Total income
|
|
|
8,420
|
|
|
9,026
|
|
|
7,553
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
88
|
|
|
107
|
|
|
154
|
|
Salaries and employee benefits
|
|
|
4,447
|
|
|
4,188
|
|
|
3,977
|
|
Occupancy and equipment expense
|
|
|
508
|
|
|
463
|
|
|
471
|
|
Other operating expenses
|
|
|
1,853
|
|
|
1,529
|
|
|
1,360
|
|
Total expenses
|
|
|
6,896
|
|
|
6,287
|
|
|
5,962
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense and equity in
undistributed net loss of subsidiaries |
|
|
1,524
|
|
|
2,739
|
|
|
1,591
|
|
Income tax benefit
|
|
|
(61)
|
|
|
(58)
|
|
|
(190)
|
|
Income before equity in undistributed
net loss of subsidiaries |
|
|
1,585
|
|
|
2,797
|
|
|
1,781
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in undistributed net loss of subsidiaries
|
|
|
(11,219)
|
|
|
(12,435)
|
|
|
(2,678)
|
|
Net loss
|
|
$
|
(9,634)
|
|
$
|
(9,638)
|
|
$
|
(897)
|
|
83 | ||
(Dollars in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(9,634)
|
|
$
|
(9,638)
|
|
$
|
(897)
|
|
Adjustments to reconcile net loss to cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
Equity in undistributed net loss of subsidiaries
|
|
|
11,219
|
|
|
12,435
|
|
|
2,678
|
|
Depreciation and amortization
|
|
|
386
|
|
|
367
|
|
|
404
|
|
Stock-based compensation expense
|
|
|
78
|
|
|
209
|
|
|
338
|
|
Excess tax benefit from stock-based arrangements
|
|
|
(26)
|
|
|
(106)
|
|
|
(45)
|
|
Net decrease (increase) in other assets
|
|
|
128
|
|
|
(246)
|
|
|
(253)
|
|
Net decrease in other liabilities
|
|
|
(53)
|
|
|
(423)
|
|
|
(99)
|
|
Net cash provided by operating activities
|
|
|
2,098
|
|
|
2,598
|
|
|
2,126
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
Purchases of premises and equipment
|
|
|
(307)
|
|
|
(108)
|
|
|
(57)
|
|
Investment in unconsolidated subsidiary
|
|
|
-
|
|
|
-
|
|
|
(25)
|
|
Investment in subsidiaries
|
|
|
(1,650)
|
|
|
(2,000)
|
|
|
(550)
|
|
Net cash used in investing activities
|
|
|
(1,957)
|
|
|
(2,108)
|
|
|
(632)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Repayment of long-term debt
|
|
|
-
|
|
|
(1,007)
|
|
|
(782)
|
|
Excess tax benefit from stock-based arrangements
|
|
|
26
|
|
|
106
|
|
|
45
|
|
Repurchase of warrant
|
|
|
-
|
|
|
-
|
|
|
(25)
|
|
Common stock dividends paid
|
|
|
-
|
|
|
(85)
|
|
|
(760)
|
|
Net cash provided by (used in) financing activities
|
|
|
26
|
|
|
(986)
|
|
|
(1,522)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
167
|
|
|
(496)
|
|
|
(28)
|
|
Cash and cash equivalents at beginning of year
|
|
|
820
|
|
|
1,316
|
|
|
1,344
|
|
Cash and cash equivalents at end of year
|
|
$
|
987
|
|
$
|
820
|
|
$
|
1,316
|
|
84 | ||
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
||||
(In thousands, except per share data)
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
10,607
|
|
$
|
10,755
|
|
$
|
10,182
|
|
$
|
9,807
|
|
Net interest income
|
|
|
8,477
|
|
|
9,001
|
|
|
8,828
|
|
|
8,570
|
|
Provision for credit losses
|
|
|
2,150
|
|
|
2,700
|
|
|
22,460
|
|
|
474
|
|
Income (loss) before income taxes
|
|
|
326
|
|
|
504
|
|
|
(18,808)
|
|
|
1,843
|
|
Net income (loss)
|
|
|
222
|
|
|
361
|
|
|
(11,392)
|
|
|
1,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
(1.35)
|
|
$
|
0.14
|
|
Diluted earnings (loss) per common share
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
(1.35)
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
11,856
|
|
$
|
11,692
|
|
$
|
11,393
|
|
$
|
10,960
|
|
Net interest income
|
|
|
9,195
|
|
|
9,033
|
|
|
8,730
|
|
|
8,381
|
|
Provision for credit losses
|
|
|
8,370
|
|
|
3,525
|
|
|
6,200
|
|
|
9,650
|
|
(Loss) income before income taxes
|
|
|
(5,099)
|
|
|
422
|
|
|
(3,178)
|
|
|
(8,348)
|
|
Net (loss) income
|
|
|
(3,036)
|
|
|
293
|
|
|
(1,821)
|
|
|
(5,074)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings per common share
|
|
$
|
(0.36)
|
|
$
|
0.03
|
|
$
|
(0.22)
|
|
$
|
(0.60)
|
|
Diluted (loss) earnings per common share
|
|
$
|
(0.36)
|
|
$
|
0.03
|
|
$
|
(0.22)
|
|
$
|
(0.60)
|
|
85 | ||
|
|
Community
|
|
Insurance Products
|
|
Parent
|
|
|
|
||||
(Dollars in thousands)
|
|
Banking
|
|
and Services
|
|
Company
|
|
Total
|
|
||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
41,310
|
|
$
|
41
|
|
$
|
-
|
|
$
|
41,351
|
|
Interest expense
|
|
|
(6,475)
|
|
|
-
|
|
|
-
|
|
|
(6,475)
|
|
Provision for credit losses
|
|
|
(27,784)
|
|
|
-
|
|
|
-
|
|
|
(27,784)
|
|
Noninterest income
|
|
|
5,716
|
|
|
11,737
|
|
|
6
|
|
|
17,459
|
|
Noninterest expense
|
|
|
(23,676)
|
|
|
(10,350)
|
|
|
(6,660)
|
|
|
(40,686)
|
|
Net intersegment (expense) income
|
|
|
(5,359)
|
|
|
(655)
|
|
|
6,014
|
|
|
-
|
|
(Loss) income before income taxes
|
|
|
(16,268)
|
|
|
773
|
|
|
(640)
|
|
|
(16,135)
|
|
Income tax benefit (expense)
|
|
|
6,556
|
|
|
(313)
|
|
|
258
|
|
|
6,501
|
|
Net (loss) income
|
|
$
|
(9,712)
|
|
$
|
460
|
|
$
|
(382)
|
|
$
|
(9,634)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,036,098
|
|
$
|
15,759
|
|
$
|
2,267
|
|
$
|
1,054,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
45,822
|
|
$
|
79
|
|
$
|
-
|
|
$
|
45,901
|
|
Interest expense
|
|
|
(10,546)
|
|
|
-
|
|
|
(16)
|
|
|
(10,562)
|
|
Provision for credit losses
|
|
|
(27,745)
|
|
|
-
|
|
|
-
|
|
|
(27,745)
|
|
Noninterest income
|
|
|
5,197
|
|
|
10,422
|
|
|
139
|
|
|
15,758
|
|
Noninterest expense
|
|
|
(23,702)
|
|
|
(9,820)
|
|
|
(6,033)
|
|
|
(39,555)
|
|
Net intersegment (expense) income
|
|
|
(4,993)
|
|
|
(503)
|
|
|
5,496
|
|
|
-
|
|
(Loss) income before income taxes
|
|
|
(15,967)
|
|
|
178
|
|
|
(414)
|
|
|
(16,203)
|
|
Income tax benefit (expense)
|
|
|
6,467
|
|
|
(70)
|
|
|
168
|
|
|
6,565
|
|
Net (loss) income
|
|
$
|
(9,500)
|
|
$
|
108
|
|
$
|
(246)
|
|
$
|
(9,638)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,166,468
|
|
$
|
16,809
|
|
$
|
2,530
|
|
$
|
1,185,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
50,721
|
|
$
|
131
|
|
$
|
-
|
|
$
|
50,852
|
|
Interest expense
|
|
|
(11,051)
|
|
|
-
|
|
|
(37)
|
|
|
(11,088)
|
|
Provision for credit losses
|
|
|
(19,470)
|
|
|
-
|
|
|
-
|
|
|
(19,470)
|
|
Noninterest income
|
|
|
7,269
|
|
|
9,881
|
|
|
168
|
|
|
17,318
|
|
Noninterest expense
|
|
|
(22,738)
|
|
|
(10,766)
|
|
|
(5,663)
|
|
|
(39,167)
|
|
Net intersegment (expense) income
|
|
|
(5,148)
|
|
|
(455)
|
|
|
5,603
|
|
|
-
|
|
(Loss) income before income taxes
|
|
|
(417)
|
|
|
(1,209)
|
|
|
71
|
|
|
(1,555)
|
|
Income tax benefit (expense)
|
|
|
176
|
|
|
512
|
|
|
(30)
|
|
|
658
|
|
Net (loss) income
|
|
$
|
(241)
|
|
$
|
(697)
|
|
$
|
41
|
|
$
|
(897)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,138,576
|
|
$
|
17,354
|
|
$
|
2,263
|
|
$
|
1,158,193
|
|
86 | ||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
Item 10. | Directors, Executive Officers and Corporate Governance. |
· | Election of Directors (Proposal 1); |
· | Continuing Directors; |
· | Executive Officers; |
· | Qualifications of Director Nominees and Continuing Directors; |
· | Section 16(a) Beneficial Ownership Reporting Compliance; and |
· | Corporate Governance Matters (under the heading, “Board Committees”). |
87 | ||
Item 11. | Executive Compensation. |
· | Executive Compensation |
· | Director Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Plan Category
|
|
Number of securities to be
issued upon exercise of outstanding options, warrants and rights |
|
Weighted-average exercise
price of outstanding options, warrants, and rights |
|
Number of securities
remaining available for future issuance under equity compensation plans [excluding securities reflected in column (a)] |
|
|
|
|
(a)
|
|
(b)
|
|
(c)
|
|
|
Equity compensation plans approved by security holders (1)
|
|
40,662
|
|
$
|
6.64
|
|
506,702
|
|
|
|
|
|
|
|
|
|
|
Equity compensation plans not approved by security holders
|
|
-
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
40,662
|
|
$
|
6.64
|
|
506,702
|
|
(1) | In addition to stock options and stock appreciation rights, the 2006 Plan permits the grant of stock awards, stock units, and performance units, and the shares available for issuance shown in column (c) may be granted pursuant to such awards. Subject to the anti-dilution provisions of the Omnibus Plan, the maximum number of shares of restricted stock that may be granted to any participant in any calendar year is 45,000; the maximum number of restricted stock units that may be granted to any one participant in any calendar year is 45,000; and the maximum dollar value of performance units that may be granted to any one participant in any calendar year is $1,500,000. As of December 31, 2013, the Company has granted 84,608 shares of restricted stock that are not reflected in column (a) of this table. |
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Item 14. | Principal Accountant Fees and Services. |
88 | ||
Item 15. | Exhibits and Financial Statement Schedules. |
89 | ||
|
|
Shore Bancshares, Inc.
|
|
|
|
|
|
Date:
|
March 20, 2014
|
By:
|
/s/ Lloyd L. Beatty, Jr.
|
|
|
|
Lloyd L. Beatty, Jr.
|
|
|
|
President and Chief Executive Officer
|
|
/s/ Herbert L. Andrew, III
|
|
/s/ Blenda W. Armistead
|
|
Herbert L. Andrew, III, Director
|
|
Blenda W. Armistead, Director
|
|
March 20, 2014
|
|
March 20, 2014
|
|
|
|
|
|
/s/David J. Bates
|
|
/s/ Lloyd L. Beatty, Jr.
|
|
David J. Bates, Director
|
|
Lloyd L. Beatty, Jr., Director
|
|
March 20, 2014
|
|
March 20, 2014
|
|
|
|
|
|
/s/ James A. Judge
|
|
/s/ Neil R. LeCompte
|
|
James A. Judge, Director
|
|
Neil R. LeCompte, Director
|
|
March 20, 2014
|
|
March 20, 2014
|
|
|
|
|
|
/s/ Frank E. Mason, III
|
|
/s/ Christopher F. Spurry
|
|
Frank E. Mason, III, Director
|
|
Christopher F. Spurry, Director
|
|
March 20, 2014
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March 20, 2014
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/s/ F. Winfield Trice, Jr
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/s/ W. Moorhead Vermilye.
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F. Winfield Trice, Jr., Director
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W. Moorhead Vermilye, Director
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March 20, 2014
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March 20, 2014
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/s/ John H. Wilson
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/s/ George S. Rapp
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John H. Wilson, Director
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Vice President and Chief Financial Officer
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March 20, 2014
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(Principal Accounting Officer)
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March 20, 2014
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90 | ||
Exhibit No.
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Description
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3.1(i)
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Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on December 14, 2000)
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3.1(ii)
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Articles Supplementary relating to the Fixed Rate Cumulative Perpetual Preferred Stock, Series A (incorporated by reference Exhibit 4.1 of the Company’s Form 8-K filed on January 13, 2009)
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3.1(iii)
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Articles Supplementary relating to the reclassification of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, as common stock (incorporated by reference Exhibit 3.1(i) of the Company’s Form 8-K filed on June 17, 2009)
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3.2(i)
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Amended and Restated By-Laws (incorporated by reference to Exhibit 3.2(i) of the Company’s Form 10-K for the year ended December 31, 2010)
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3.2(ii)
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First Amendment to Amended and Restated By-Laws (incorporated by reference to Exhibit 3.2(ii) of the Company’s Form 10-K for the year ended December 31, 2010)
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3.2(iii)
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Second Amendment to Amended and Restated By-Laws (incorporated by reference to Exhibit 3.2(iii) of the Company’s Form 10-K for the year ended December 31, 2010)
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3.2(iv)
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Third Amendment to Amended and Restated By-Laws (incorporated by reference to Exhibit 3.2(iv) of the Company’s Form 10-K for the year ended December 31, 2010)
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10.1
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Amended and Restated Employment Agreement, dated June 16, 2011, between the Company and W. Moorhead Vermilye (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q/A for the quarter ended June 30, 2011 filed on November 14, 2011).
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10.2
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Employment Agreement, dated June 16, 2011, between the Company and Lloyd L. Beatty, Jr. (incorporated by reference to Exhibit 10.2 of the Company’s Form 10-Q/A for the quarter ended June 30, 2011 filed on November 14, 2011)
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10.3
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Amended Summary of Compensation Arrangement for William W. Duncan, Jr. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on February 14, 2007, as amended by Form 8-K/A filed on May 3, 2007)
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10.4
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Summary of Compensation Arrangement between Centreville National Bank and F. Winfield Trice, Jr. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 13, 2007)
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10.5
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Employment Agreement between The Avon-Dixon Agency, LLC and Mark M. Freestate (incorporated by reference to Exhibit 10.6 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2006)
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10.6
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Shore Bancshares, Inc. Management Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on April 21, 2010)
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10.7
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Shore Bancshares, Inc. Amended and Restated Executive Deferred Compensation Plan (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on February 14, 2007)
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10.8
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Deferral Election, Investment Designation, and Beneficiary Designation Forms under the Shore Bancshares, Inc. Amended and Restated Executive Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K filed on October 2, 2006)
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10.9
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Form of Centreville National Bank of Maryland Director Indexed Fee Continuation Plan Agreement with Messrs. Freestate and Pierson (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on December 12, 2006)
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10.10
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Form of Amended and Restated Director Indexed Fee Continuation Plan Agreement between Centreville National Bank and Messrs. Freestate and Pierson (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on January 7, 2009)
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91 | ||
10.11
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Form of Centreville National Bank Life Insurance Endorsement Split Dollar Plan Agreement with Messrs. Freestate and Pierson (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K filed on December 12, 2006)
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10.12
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Talbot Bank of Easton, Maryland Supplemental Deferred Compensation Plan (incorporated by reference to Exhibit 10.7 of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2005)
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10.13
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First Amendment to The Talbot Bank of Easton, Maryland Supplemental Deferred Compensation Plan for the benefit of W. Moorhead Vermilye (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on January 7, 2009)
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10.14
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Talbot Bank of Easton, Maryland Supplemental Deferred Compensation Plan Trust Agreement (incorporated by reference to Exhibit 10.7 of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2005)
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10.15
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1998 Stock Option Plan (incorporated by reference to Exhibit 10 of the Company’s Registration Statement on Form S-8 filed with the SEC on September 25, 1998 (Registration No. 333-64319))
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10.16
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Talbot Bancshares, Inc. Employee Stock Option Plan (incorporated by reference to Exhibit 10 of the Company’s Registration Statement on Form S-8 filed May 4, 2001 (Registration No. 333-60214))
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10.17
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Shore Bancshares, Inc. 2006 Stock and Incentive Compensation Plan (incorporated by reference to Appendix A of the Company’s 2006 definitive proxy statement filed on March 24, 2006)
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10.18
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Form of Restricted Stock Award Agreement under the 2006 Stock and Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on April 11, 2007)
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21
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Subsidiaries of the Company (included in the “BUSINESSGeneral” section of Item 1 of Part I of this Annual Report on Form 10-K)
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23
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Consent of Stegman & Company (filed herewith)
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31.1
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Certifications of the PEO pursuant to Section 302 of the Sarbanes-Oxley Act (filed herewith)
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31.2
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Certifications of the PAO pursuant to Section 302 of the Sarbanes-Oxley Act (filed herewith)
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32
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Certification pursuant to Section 906 of the Sarbanes-Oxley Act (furnished herewith)
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92 | ||