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Restatement of Consolidated Financial Statements | 12 Months Ended
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Dec. 31, 2012
Restatement of Consolidated Financial Statements [Abstract] |
Restatement of Consolidated Financial Statements | Note 2: Restatement of Consolidated Financial Statements Subsequent to filing the Company's annual report on Form 10-K for the year ended December 31, 2012, the Company determined that certain loans should have been reflected as nonaccrual status in the related disclosures and analysis in the footnotes to the consolidated financial statements. This restatement had no effect on the consolidated balance sheet at December 31, 2012, or the consolidated statements of income, comprehensive income or cash flows for the year ended December 31, 2012. The effect of the restatement on the footnotes to the consolidated financial statements is as follows: Restatements to Note 6: Allowance for Loan Losses, Nonperforming Assets and Impaired Loans
|  | Activity in the Allowance for Loan Losses by Segment for the year ended December 31, 2012 |
|  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Unallocated |  |  | Total |
Provision for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 723 |  |  | $ | 1,380 |  |  | $ | 1,389 |  |  | $ | (410 | ) |  | $ | (90 | ) |  | $ | 182 |  |  | $ | (40 | ) |  | $ | 3,134 |
As restated |  |  | 618 |  |  |  | 1,380 |  |  |  | 1,516 |  |  |  | (407 | ) |  |  | (90 | ) |  |  | 189 |  |  |  | (72 | ) |  |  | 3,134 |
Balance, December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 1,175 |  |  | $ | 2,263 |  |  | $ | 3,315 |  |  | $ | 956 |  |  | $ | 142 |  |  | $ | 417 |  |  | $ | 81 |  |  | $ | 8,349 |
As restated |  |  | 1,070 |  |  |  | 2,263 |  |  |  | 3,442 |  |  |  | 959 |  |  |  | 142 |  |  |  | 424 |  |  |  | 49 |  |  |  | 8,349 |
|  | Allowance for Loan Losses by Segment and Evaluation Method as of |
|  | December 31, 2012 |
|  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Unallocated |  |  | Total |
Individually evaluated for impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | --- |  |  | $ | 43 |  |  | $ | --- |  |  | $ | 226 |  |  | $ | --- |  |  | $ | --- |  |  | $ | --- |  |  | $ | 269 |
As restated |  |  | --- |  |  |  | 43 |  |  |  | 273 |  |  |  | 231 |  |  |  | --- |  |  |  | 7 |  |  |  | --- |  |  |  | 554 |
Collectively evaluated for impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 1,175 |  |  | $ | 2,220 |  |  | $ | 3,315 |  |  | $ | 730 |  |  | $ | 142 |  |  | $ | 417 |  |  | $ | 81 |  |  | $ | 8,080 |
As restated |  |  | 1,070 |  |  |  | 2,220 |  |  |  | 3,169 |  |  |  | 728 |  |  |  | 142 |  |  |  | 417 |  |  |  | 49 |  |  |  | 7,795 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 1,175 |  |  | $ | 2,263 |  |  | $ | 3,315 |  |  | $ | 956 |  |  | $ | 142 |  |  | $ | 417 |  |  | $ | 81 |  |  | $ | 8,349 |
As restated |  |  | 1,070 |  |  |  | 2,263 |  |  |  | 3,442 |  |  |  | 959 |  |  |  | 142 |  |  |  | 424 |  |  |  | 49 |  |  |  | 8,349 |
|  | Loans by Segment and Evaluation Method as of |
|  | December 31, 2012 |
|  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Unallocated |  |  | Total |
Individually evaluated for impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 3,623 |  |  | $ | 864 |  |  | $ | 6,048 |  |  | $ | 518 |  |  | $ | --- |  |  | $ | --- |  |  | $ | --- |  |  | $ | 11,053 |
As restated |  |  | 6,643 |  |  |  | 864 |  |  |  | 10,329 |  |  |  | 574 |  |  |  | --- |  |  |  | 46 |  |  |  | --- |  |  |  | 18,456 |
Collectively evaluated for impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 46,690 |  |  | $ | 142,398 |  |  | $ | 298,260 |  |  | $ | 36,831 |  |  | $ | 26,169 |  |  | $ | 31,714 |  |  | $ | --- |  |  | $ | 582,062 |
As restated |  |  | 43,670 |  |  |  | 142,398 |  |  |  | 293,979 |  |  |  | 36,775 |  |  |  | 26,169 |  |  |  | 31,668 |  |  |  | --- |  |  |  | 574,659 |
A summary of nonperforming assets follows:
|  | December 31, |
|  | 2012 |  |  | 2012 |
|  | As reported |  |  | As restated |
Nonperforming assets: |  |  |  |  |  |
Nonaccrual loans |  | $ | 3,466 |  |  | $ | 10,870 |
Restructured loans in nonaccrual |  |  | 2,151 |  |  |  | 2,151 |
Total nonperforming loans |  |  | 5,617 |  |  |  | 13,021 |
Other real estate owned, net |  |  | 1,435 |  |  |  | 1,435 |
Total nonperforming assets |  |  | 7,052 |  |  |  | 14,456 |
Ratio of nonperforming assets to loans, net of unearned income and deferred fees, plus other real estate owned |  |  | 1.19 | % |  |  | 2.44 | %
Ratio of allowance for loan losses to nonperforming loans(1) |  |  | 148.64 | % |  |  | 64.12 | %
(1) | The Company defines nonperforming loans as total nonaccrual and restructured loans that are nonaccrual. Loans 90 days past due and still accruing and accruing restructured loans are excluded.
A summary of loans past due 90 days or more and impaired loans follows:
|  | December 31, |
|  | 2012 |  |  | 2012 |
|  | As reported |  |  | As restated |
Impaired loans: |  |  |  |  |  |
Impaired loans with no valuation allowance |  | $ | 10,422 |  |  | $ | 16,974 |
Impaired loans with a valuation allowance |  |  | 631 |  |  |  | 1,482 |
Total impaired loans |  |  | 11,053 |  |  |  | 18,456 |
Valuation allowance |  |  | (269 | ) |  |  | (554 | )
Impaired loans, net of allowance |  | $ | 10,784 |  |  |  | 17,902 |
Average recorded investment in impaired loans(1) |  | $ | 13,520 |  |  |  | 13,540 |
(1) | Recorded investment includes principal, accrued interest, and deferred fees and costs.
|  | Impaired Loans as of December 31, 2012 |
|  | Principal Balance |  |  | (A) Total Recorded Investment(1) |  |  | Recorded Investment(1) in (A) for Which There is No Related Allowance |  |  | Recorded Investment(1) in (A) for Which There is a Related Allowance |  |  | Related Allowance |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 3,500 |  |  | $ | 3,481 |  |  | $ | 3,481 |  |  | $ | --- |  |  | $ | --- |
As restated |  |  | 6,520 |  |  |  | 6,487 |  |  |  | 6,487 |  |  |  | --- |  |  |  | --- |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 1,752 |  |  | $ | 1,760 |  |  | $ | 1,760 |  |  | $ | --- |  |  | $ | --- |
As restated |  |  | 5,284 |  |  |  | 5,288 |  |  |  | 5,288 |  |  |  | --- |  |  |  | --- |
Commercial real estate, owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 4,296 |  |  | $ | 4,293 |  |  | $ | 4,293 |  |  | $ | --- |  |  | $ | --- |
As restated |  |  | 5,045 |  |  |  | 5,043 |  |  |  | 4,293 |  |  |  | 750 |  |  |  | 273 |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 518 |  |  | $ | 519 |  |  | $ | 40 |  |  | $ | 479 |  |  | $ | 226 |
As restated |  |  | 574 |  |  |  | 574 |  |  |  | 39 |  |  |  | 535 |  |  |  | 231 |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | --- |  |  | $ | --- |  |  | $ | --- |  |  | $ | --- |  |  | $ | --- |
As restated |  |  | 46 |  |  |  | 46 |  |  |  | --- |  |  |  | 46 |  |  |  | 7 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 11,053 |  |  | $ | 11,037 |  |  | $ | 10,407 |  |  | $ | 630 |  |  | $ | 269 |
As restated |  |  | 18,456 |  |  |  | 18,422 |  |  |  | 16,940 |  |  |  | 1,482 |  |  |  | 554 |
| Average Investment and Interest Income for Impaired Loans |
| For the Year Ended December 31, 2012 |
| Average Recorded Investment(1) |
| As reported |  | As restated |
Real Estate Construction |  |  |  |  |  |
Construction, other |  | $ | 4,282 |  |  | $ | 4,290 |
Commercial Real Estate |  |  |  |  |  |  |  |
Multifamily real estate |  |  | 1,456 |  |  |  | 1,466 |
Commercial real estate, owner occupied |  |  | 4,804 |  |  |  | 4,806 |
Total |  | $ | 13,520 |  |  | $ | 13,540 |
(1) | Recorded investment includes the unpaid principal balance and any accrued interest and deferred fees.
An analysis of past due and nonaccrual loans follows:
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |
|  | 30 – 89 Days Past Due |  |  | 90 or More Days Past Due |  |  | 90 or More Days Past Due and Still Accruing |  |  | Nonaccruals (Including Impaired Nonaccruals) |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |
Construction, other |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 31 |  |  | $ | 89 |  |  | $ | --- |  |  | $ | 89 |
As restated |  |  | 31 |  |  |  | 89 |  |  |  | --- |  |  |  | 3,109 |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 4,202 |  |  | $ | 261 |  |  | $ | --- |  |  | $ | 1,093 |
As restated |  |  | 671 |  |  |  | 261 |  |  |  | --- |  |  |  | 4,624 |
Commercial real estate, owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 1,113 |  |  | $ | --- |  |  | $ | --- |  |  | $ | 2,785 |
As restated |  |  | 1,113 |  |  |  | --- |  |  |  | --- |  |  |  | 3,536 |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 347 |  |  | $ | 505 |  |  | $ | --- |  |  | $ | 505 |
As restated |  |  | 291 |  |  |  | 505 |  |  |  | --- |  |  |  | 561 |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 142 |  |  | $ | 10 |  |  | $ | 10 |  |  | $ | 3 |
As restated |  |  | 142 |  |  |  | 10 |  |  |  | 10 |  |  |  | 49 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 7,677 |  |  | $ | 3,755 |  |  | $ | 170 |  |  | $ | 5,617 |
As restated |  |  | 4,090 |  |  |  | 3,755 |  |  |  | 170 |  |  |  | 13,021 |
The following displays non-impaired loans by quality indicator: December 31, 2012
|  | Pass |  |  | Special Mention |  |  | Classified (Excluding Impaired) |
Real Estate Construction |  |  |  |  |  |  |  |  |
Construction, other |  |  |  |  |  |  |  |  |
As reported |  | $ | 29,011 |  |  | $ | 3,020 |  |  | $ | 120 |
As restated |  |  | 29,011 |  |  |  | --- |  |  |  | 120 |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Multifamily residential real estate |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 36,432 |  |  | $ | 3,520 |  |  | $ | 324 |
As restated |  |  | 36,421 |  |  |  | --- |  |  |  | 324 |
Commercial real estate owner-occupied |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 160,188 |  |  | $ | 1,004 |  |  | $ | 1,079 |
As restated |  |  | 160,188 |  |  |  | 253 |  |  |  | 1,079 |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial and Industrial |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 36,374 |  |  | $ | 152 |  |  | $ | 318 |
As restated |  |  | 36,372 |  |  |  | 99 |  |  |  | 318 |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 12,391 |  |  | $ | 101 |  |  | $ | 56 |
As restated |  |  | 12,344 |  |  |  | 101 |  |  |  | 56 |
Total |  |  |  |  |  |  |  |  |  |  |  |
As reported |  | $ | 564,391 |  |  |  | 11,983 |  |  | $ | 4,735 |
As restated |  |  | 564,331 |  |  |  | 4,639 |  |  |  | 4,735 |
Restatement to Note 17: Fair Measurements
|  |  |  |  |  | Carrying value |
Date | Description |  | Balance |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2012 | Impaired loans net of valuation allowance |  |  |  |  |  |  |  |  |  |  |  |
As reported |  |  | $ | 362 |  |  | $ | --- |  |  | $ | --- |  |  | $ | 362 |
As restated |  |  |  | 928 |  |  |  | --- |  |  |  | --- |  |  |  | 928 |
The following table presents information about Level 3 Fair Value Measurements for December 31, 2012.
Valuation Technique | Unobservable Input |  | Range (Weighted Average) |
Impaired loans | Present value of cash flows | Discount rate |  |  |
As reported |  |  |  |  | 6.00% |
As restated |  |  |  |  | 6.00% - 7.50% (6.28%) |

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