Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v2.4.0.6
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2012
Assets and Liabilities Measured at Fair Value on Recurring Basis

As of September 30, 2012 and December 31, 2011, assets and liabilities measured at fair value on a recurring basis are as follows:

 

     Level 1      Level 2      Level 3         
     Quoted Prices in
Active Markets
For Identical
Assets		      Significant
Observable
Inputs With No
Active Market
With Identical
Characteristics		      Significant
Unobservable
Inputs 		     Balance  
     (In Thousands)  

September 30, 2012

            

ASSETS:

            

Debt Securities Available for Sale:

            

Mortgage-Backed Securities

    $ —         $ 142,168       $ —         $ 142,168   

Collateralized Mortgage Obligations

      —           101,390         —           101,390   

U.S. Government Agency Securities

      79,164         —           —           79,164   

Municipal Bonds-Tax Exempt

      —           11,950         788         12,738   

Municipal Bonds-Taxable

      —           46,234         —           46,234   

Corporate Bonds

      —           19,897         —           19,897   

Other Securities

      —           8,328         —           8,328   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Debt Securities Available for Sale

      79,164         329,967         788         409,919   
  

 

 

     

 

 

     

 

 

     

 

 

  

Equity Securities Available for Sale:

            

Financial Services Industry

      291         —           —           291   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Equity Securities Available for Sale

      291         —           —           291   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Securities Available for Sale

    $ 79,455       $ 329,967       $ 788       $ 410,210   

LIABILITIES:

            

Stock Warrants

    $ —         $ —         $ 1,060       $ 1,060   

December 31, 2011:

            

ASSETS:

            

Debt Securities Available for Sale:

            

Mortgage-Backed Securities

    $ —         $ 113,005       $ —         $ 113,005   

Collateralized Mortgage Obligations

      —           162,837         —           162,837   

U.S. Government Agency Securities

      72,548         —           —           72,548   

Municipal Bonds-Tax Exempt

      —           3,482         —           3,482   

Municipal Bonds-Taxable

      —           6,138         —           6,138   

Corporate Bonds

      —           19,836         —           19,836   

Other Securities

      —           3,335         —           3,335   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Debt Securities Available for Sale

      72,548         308,633         —           381,181   
  

 

 

     

 

 

     

 

 

     

 

 

  

Equity Securities Available for Sale:

            

Financial Services Industry

      681         —           —           681   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Equity Securities Available for Sale

      681         —           —           681   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Securities Available for Sale

    $ 73,229       $ 308,633       $ —         $ 381,862   

LIABILITIES:

            

Stock Warrants

    $ —         $ —         $ 883       $ 883   
Reconciliation and Income Statement Classification of Gains and Losses for All Assets and Liabilities

The table below presents a reconciliation and income statement classification of gains and losses for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2012:

 

     Beginning
Balance as of
January 1,
2012		      Purchase,
Issuances, Sales and
Settlement		      Realized
Gains or Losses
In Earnings		      Unrealized
Gains or Losses
In Other
Comprehensive
Income		      Ending
Balance as of
September 30,
2012		  
     (In Thousands)  

ASSETS:

               

Municipal Bonds-Tax Exempt (1)

    $ —         $ 698       $ —         $ 90       $ 788   

LIABILITIES:

               

Stock Warrants (2)

    $ 883       $ —         $ 177       $ —         $ 1,060   

(1) 

Reflects a zero coupon tax credit municipal bond that was previously classified as a held-to-maturity security, which was reclassified as an available-for-sale security during the three months ended September 30, 2012. As the Company was not able to obtain a price from independent external pricing service providers, the discounted cash flow method was used to determine its fair value. The bond carried a par value of $700,000 and an amortized value of $698,000 with a remaining life of 2.5 years at September 30, 2012.
(2) 

Reflects warrants for our common stock issued in connection with services it provided to us as a placement agent in connection with our best efforts public offering and as our financial adviser in connection with our completed rights offering. The warrants were immediately exercisable when issued at an exercise price of $9.60 per share of our common stock and expire on October 14, 2015. See “Note 8 – Stockholders’ Equity” for more details.
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

For the nine months ended September 30, 2012 and 2011, assets and liabilities measured at fair value on a non-recurring basis are as follows:

 

     Level 1      Level 2      Level 3                
     Quoted Prices in
Active Markets
For Identical
Assets		      Significant
Observable
Inputs  With
No Active
Market With
Identical
Characteristics 		     Significant
Unobservable
Inputs 		     Loss During The
Three Months
Ended September 30,
2012 and 2011		      Loss During The
Nine Months
Ended September 30,
2012 and 2011		  
     (In Thousands)  

September 30, 2012

               

ASSETS:

               

Non-Performing Loans Held for Sale (1)

    $ —         $ —         $ 4,421       $ 519       $ 2,300   

Impaired Loans (2)

    $ —         $ 19,919       $ 10,594       $ 2,259       $ 4,303   

Other Real Estate Owned (3)

    $ —         $ —         $ 364       $ 244       $ 301   

September 30, 2011

               

ASSETS:

               

Non-Performing Loans Held for Sale (4)

    $ —         $ —         $ 4,246       $ —         $ 2,488   

Impaired Loans (5)

    $ —         $ —         $ 103,410       $ 16,328       $ 29,264   

Other Real Estate Owned (6)

    $ —         $ —         $ 248       $ —         $ 194   

(1) Includes commercial term loans of $3.2 million and SBA loans of $1.2 million
(2) Includes real estate loans of $4.6 million, commercial and industrial loans of $25.3 million, and consumer loans of $574,000
(3) Includes properties from the foreclosure of a commercial property loan of $103,000 and a SBA loan of $261,000
(4) Includes commercial term loans of $3.8 million and SBA loans of $434,000
(5) Includes real estate loans of $35.6 million, commercial and industrial loans of $66.9 million, and consumer loans of $875,000
(6) Includes a property from the foreclosure of a SBA loan
Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows:

 

     September 30, 2012      December 31, 2011  
     Carrying or
Contract
Amount		      Estimated
Fair Value		      Carrying or
Contract
Amount		      Estimated
Fair Value		  
     (In Thousands)  

Financial Assets:

            

Cash and Cash Equivalents

    $ 302,428       $ 302,428       $ 201,683       $ 201,683   

Restricted Cash

      4,393         4,393         1,818         1,818   

Term Federal Funds

      55,000         55,015         115,000         115,173   

Investment Securities Available for Sale

      410,210         410,210         381,862         381,862   

Investment Securities Held to Maturity

      —           —           59,742         59,363   

Loans Receivable, Net of Allowance for Loan Losses

      1,892,813         1,833,112         1,849,020         1,802,511   

Loans Held for Sale

      10,736         10,736         22,587         22,587   

Accrued Interest Receivable

      7,467         7,467         7,829         7,829   

Investment in Federal Home Loan Bank Stock

      19,621         19,621         22,854         22,854   

Investment in Federal Reserve Bank

      10,261         10,261         8,558         8,558   

Financial Liabilities:

            

Noninterest-Bearing Deposits

      694,345         694,345         634,466         634,466   

Interest-Bearing Deposits

      1,669,040         1,675,056         1,710,444         1,710,878   

Borrowings

      85,435         85,517         85,709         83,853   

Accrued Interest Payable

      15,266         15,266         16,032         16,032   

Off-Balance Sheet Items:

            

Commitments to Extend Credit

      205,833         175         158,748         194   

Standby Letters of Credit

      10,544         26         12,742         26