Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v2.4.0.6
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis

As of March 31, 2013 and December 31, 2012, 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)  

As of March 31, 2013

            

ASSETS:

            

Debt Securities Available-for-Sale:

            

Mortgage-Backed Securities

    $ —         $ 149,394       $  —         $ 149,394   

Collateralized Mortgage Obligations

      —           92,868         —           92,868   

U.S. government Agency Securities

      80,930         —           —           80,930   

Municipal Bonds-Tax Exempt

      —           11,937         774         12,711   

Municipal Bonds-Taxable

      —           46,156         —           46,156   

Corporate Bonds

      —           20,372         —           20,372   

SBA Loan Pools Securities

      —           13,918         —           13,918   

Other Securities

      —           3,030         —           3,030   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Debt Securities Available-for-Sale

      80,930         337,675         774         419,379   
  

 

 

     

 

 

     

 

 

     

 

 

  

Equity Securities Available-for-Sale:

            

Financial Services Industry

      524         —           —           524   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Equity Securities Available-for-Sale

      524         —           —           524   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Securities Available-for-Sale

    $ 81,454       $ 337,675       $ 774       $ 419,903   
  

 

 

     

 

 

     

 

 

     

 

 

  

LIABILITIES:

            

Stock Warrants

    $ —         $ —         $ 147       $ 147   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2012:

            

ASSETS:

            

Debt Securities Available-for-Sale:

            

Mortgage-Backed Securities

    $ —         $ 160,326       $ —         $ 160,326   

Collateralized Mortgage Obligations

      —           100,487         —           100,487   

U.S. Government Agency Securities

      93,118         —           —           93,118   

Municipal Bonds-Tax Exempt

      —           12,033         779         12,812   

Municipal Bonds-Taxable

      —           46,142         —           46,142   

Corporate Bonds

      —           20,400         —           20,400   

SBA Loan Pools Securities

      —           14,026         —           14,026   

Other Securities

      —           3,357         —           3,357   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Debt Securities Available-for-Sale

      93,118         356,771         779         450,668   
  

 

 

     

 

 

     

 

 

     

 

 

  

Equity Securities Available-for-Sale:

            

Financial Services Industry

      392         —           —           392   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Equity Securities Available-for-Sale

      392         —           —           392   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Securities Available-for-Sale

    $ 93,510       $ 356,771       $ 779       $ 451,060   
  

 

 

     

 

 

     

 

 

     

 

 

  

LIABILITIES:

            

Stock Warrants

    $ —         $ —         $ 906       $ 906   
  

 

 

     

 

 

     

 

 

     

 

 

  
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 three months ended March 31, 2013:

 

     Beginning
Balance
as of
January
1, 2013		      Purchases
Issuances
and
Settlement		     Realized
Gains or
Losses
In
Earnings		     Unrealized
Gains or
Losses in Other
Comprehensive
Income		     Ending
Balance
as of
March
31,
2013		  
     (In Thousands)  

ASSETS:

            

Municipal Bonds-Tax Exempt (1)

    $ 779       $  —        $  —        $  (5 )    $ 774   

LIABILITIES:

            

Stock Warrants (2)

    $ 906       $  (708 )    $  (51 )    $  —        $ 147   

 

(1) Reflects a zero coupon tax credit municipal bond. 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 two years at March 31, 2013.
(2) Reflects warrants for our common stock issued in connection with services Cappello Capital Corp. 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

As of March 31, 2013 and December 31, 2012, 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
March 31,
2013		  
     (In Thousands)  

As of March 31, 2013

            

ASSETS:

            

Non-Performing Loans Held for Sale (1)

    $  —         $ 2,306       $ —         $ —     

Impaired Loans (2)

      —           25,326         544         572   

Other Real Estate Owned (3)

      —           900         —           7   
     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
Twelve
Months
Ended
December
31, 2012		  
     (In Thousands)  

As of December 31, 2012:

      

ASSETS:

            

Non-Performing Loans Held for Sale (4)

    $ —         $ 484       $ —         $ 3,747   

Impaired Loans (5)

      —           27,844         8,888         580   

Other Real Estate Owned (6)

      —           774         —           301   

 

(1) Includes commercial term loans of $1.8 million and SBA loans of $484,000
(2) Includes real estate loans of $4.0 million, commercial and industrial loans of $21.0 million, and consumer loans of $900,000
(3) Includes properties from the foreclosure of a residential property loan of $513,000 and a SBA loan of $387,000
(4) Includes a SBA loan of $484,000
(5) Includes real estate loans of $8.7 million, commercial and industrial loans of $27.0 million, and consumer loans of $1.0 million
(6) Includes properties from the foreclosure of real estate loans of $774,000
Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows:

 

     March 31, 2013      December 31, 2012  
     Carrying or             Carrying or         
     Contract      Estimated      Contract      Estimated  
     Amount      Fair Value      Amount      Fair Value  
     (In Thousands)  

Financial Assets:

            

Cash and Cash Equivalents

    $ 145,299       $ 145,299       $ 268,047       $ 268,047   

Restricted Cash

      —           —           5,350         5,350   

Investment Securities Available-for-Sale

      419,903         419,903         451,060         451,060   

Loans Receivable, Net of Allowance for Loan Losses

      2,061,156         2,057,301         1,986,051         1,981,669   

Loans Held for Sale

      6,043         6,043         8,306         8,306   

Accrued Interest Receivable

      7,526         7,526         7,581         7,581   

Investment in Federal Home Loan Bank Stock

      16,014         16,014         17,800         17,800   

Investment in Federal Reserve Bank

      12,222         12,222         12,222         12,222   

Financial Liabilities:

            

Noninterest-Bearing Deposits

      709,650         709,650         720,931         720,931   

Interest-Bearing Deposits

      1,623,362         1,628,360         1,675,032         1,680,211   

Borrowings

      54,318         54,374         85,341         85,414   

Accrued Interest Payable

      3,192         3,192         11,775         11,775   

Off-Balance Sheet Items:

            

Commitments to Extend Credit

      158,744         142         182,746         146   

Standby Letters of Credit

      10,493         25         10,588