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Share Name | Share Symbol | Market | Type |
---|---|---|---|
(MM) | NASDAQ:IMCB | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 20.00 | 0 | 01:00:00 |
þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Idaho
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82-0499463
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(State or other jurisdiction of
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(IRS Employer
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incorporation or organization)
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Identification No.)
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Large accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
þ
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(Do not check if a smaller reporting company)
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Item 4 —
Mine Safety Disclosure
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EX-31.1
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EX-31.2
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EX-32
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EX-101
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June 30, 2014
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December 31, 2013
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||||
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(Dollars in thousands)
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||||||
ASSETS
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||||
Cash and cash equivalents:
|
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||||
Interest-bearing
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$
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14,257
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$
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44,946
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Non-interest bearing and vault
|
8,020
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7,851
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Total cash and cash equivalents
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22,277
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52,797
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Restricted cash
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10,866
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12,333
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Available-for-sale securities, at fair value
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261,190
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251,638
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Held-to-maturity securities, at amortized cost
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26,109
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28,286
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Federal Home Loan Bank (“FHLB”) of Seattle stock, at cost
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2,146
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2,187
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Loans held for sale
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2,038
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|
614
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Loans receivable, net
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520,280
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514,834
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Accrued interest receivable
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4,657
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4,170
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Office properties and equipment, net
|
34,113
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34,685
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Deferred tax asset, net
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19,649
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21,655
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Bank-owned life insurance ("BOLI")
|
9,962
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9,797
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Other real estate owned (“OREO”)
|
3,684
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3,684
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Prepaid expenses and other assets
|
3,191
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2,968
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Total assets
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$
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920,162
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$
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939,648
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LIABILITIES
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||||
Deposits:
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||||
Interest bearing deposits
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$
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459,019
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$
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470,257
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Noninterest bearing deposits
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234,869
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235,793
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Total deposits
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693,888
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706,050
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Securities sold subject to repurchase agreements
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77,847
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99,888
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Advances from Federal Home Loan Bank
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14,000
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4,000
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||
Unexercised stock warrant liability
|
925
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942
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||
Cashier checks issued and payable
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3,265
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3,620
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Accrued interest payable
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200
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219
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Other borrowings
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23,060
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23,410
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Accrued expenses and other liabilities
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7,978
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7,507
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Total liabilities
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821,163
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845,636
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STOCKHOLDERS’ EQUITY
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Common stock 30,000,000 authorized; 2,861,214 and 2,701,214 shares issued and 2,651,214 and 2,651,214 shares outstanding as of June 30, 2014 and December 31, 2013, respectively
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97,320
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97,087
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Common stock - non-voting 10,000,000 shares authorized; 3,839,688 and 3,839,688 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively
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31,941
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31,941
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Accumulated other comprehensive income (loss), net of tax
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1,276
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(1,182
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)
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Accumulated deficit
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(31,538
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)
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(33,834
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)
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Total stockholders’ equity
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98,999
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94,012
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Total liabilities and stockholders’ equity
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$
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920,162
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$
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939,648
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Three Months Ended
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Six Months Ended
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||||||||||||
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June 30,
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June 30,
|
||||||||||||
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2014
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2013
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2014
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2013
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||||||||
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(Dollars in thousands, except per share data)
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||||||||||||||
Interest income:
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|
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||||||||
Loans
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$
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6,536
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$
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6,934
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$
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12,650
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$
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13,670
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Investments and cash equivalents
|
1,646
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1,580
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3,289
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3,172
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||||
Total interest income
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8,182
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8,514
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15,939
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16,842
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Interest expense:
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||||||||
Deposits
|
390
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|
510
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|
814
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1,070
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|
||||
Other borrowings
|
387
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441
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746
|
|
|
866
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||||
Total interest expense
|
777
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|
951
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1,560
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1,936
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||||
Net interest income
|
7,405
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7,563
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|
14,379
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14,906
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||||
Recovery of (provision for) loan loss
|
3
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|
|
(247
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)
|
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(99
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)
|
|
(426
|
)
|
||||
Net interest income after provision for loan losses
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7,408
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7,316
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14,280
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14,480
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|
||||
Other income:
|
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||||||||
Fees and service charges
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1,212
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1,319
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2,333
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2,398
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||||
Commissions & fees from trust & investment advisory services
|
557
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645
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1,098
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1,172
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||||
Loan related fee income
|
403
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586
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707
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1,197
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|
||||
Net gain on sale of securities
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168
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163
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174
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|
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203
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|
||||
Net gain on sale of other assets
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4
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2
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8
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6
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|
||||
Other-than-temporary impairment (“OTTI”) losses on investments (1)
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—
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(21
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)
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—
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|
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(63
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)
|
||||
Bank-owned life insurance
|
86
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|
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85
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|
|
165
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|
|
170
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|
||||
Fair value adjustment on cash flow hedge
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—
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80
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|
|
—
|
|
|
146
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|
||||
Unexercised warrant liability fair value adjustment
|
123
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(54
|
)
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|
17
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|
|
2
|
|
||||
Other
|
34
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|
|
40
|
|
|
82
|
|
|
153
|
|
||||
Total other income
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2,587
|
|
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2,845
|
|
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4,584
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|
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5,384
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
4,505
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|
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4,283
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8,381
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|
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8,458
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|
||||
Occupancy
|
1,145
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|
|
1,174
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|
|
2,326
|
|
|
2,359
|
|
||||
Technology
|
874
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|
|
925
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|
|
1,696
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|
|
1,801
|
|
||||
Advertising
|
136
|
|
|
180
|
|
|
285
|
|
|
294
|
|
||||
Fees and service charges
|
109
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|
|
85
|
|
|
200
|
|
|
179
|
|
||||
Printing, postage and supplies
|
151
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|
|
173
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|
|
326
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|
|
390
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|
||||
Legal and accounting
|
422
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|
|
484
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|
|
825
|
|
|
812
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|
||||
FDIC assessment
|
146
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|
|
165
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|
|
292
|
|
|
351
|
|
||||
OREO operations
|
39
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|
|
32
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|
|
(24
|
)
|
|
143
|
|
||||
Other expenses
|
707
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|
|
719
|
|
|
1,363
|
|
|
1,611
|
|
||||
Total operating expenses
|
8,234
|
|
|
8,220
|
|
|
15,670
|
|
|
16,398
|
|
||||
Net income before income taxes
|
1,761
|
|
|
1,941
|
|
|
3,194
|
|
|
3,466
|
|
||||
Income tax expense
|
(499
|
)
|
|
—
|
|
|
(898
|
)
|
|
—
|
|
||||
Net income
|
1,262
|
|
|
1,941
|
|
|
2,296
|
|
|
3,466
|
|
||||
Preferred stock dividend
|
—
|
|
|
460
|
|
|
—
|
|
|
918
|
|
||||
Net income applicable to common stockholders
|
$
|
1,262
|
|
|
$
|
1,481
|
|
|
$
|
2,296
|
|
|
$
|
2,548
|
|
Earnings per share — basic
|
$
|
0.19
|
|
|
$
|
0.23
|
|
|
$
|
0.35
|
|
|
$
|
0.40
|
|
Earnings per share — diluted
|
$
|
0.19
|
|
|
$
|
0.23
|
|
|
$
|
0.34
|
|
|
$
|
0.39
|
|
Weighted average common shares outstanding — basic
|
6,697,386
|
|
|
6,443,294
|
|
|
6,619,576
|
|
|
6,443,142
|
|
||||
Weighted average common shares outstanding — diluted
|
6,765,908
|
|
|
6,484,762
|
|
|
6,686,675
|
|
|
6,482,376
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Net income
|
$
|
1,262
|
|
|
$
|
1,941
|
|
|
$
|
2,296
|
|
|
$
|
3,466
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gains/losses on investments, and mortgage backed securities (“MBS”) available for sale, excluding non-credit loss on impairment of securities
|
2,995
|
|
|
(7,259
|
)
|
|
4,243
|
|
|
(6,763
|
)
|
||||
Realized net gains reclassified from other comprehensive income
|
(168
|
)
|
|
(163
|
)
|
|
(174
|
)
|
|
(203
|
)
|
||||
Non-credit loss on impairment on available-for-sale debt securities
|
—
|
|
|
21
|
|
|
—
|
|
|
63
|
|
||||
Less deferred income tax benefit (provision) on securities
|
(1,120
|
)
|
|
2,931
|
|
|
(1,611
|
)
|
|
2,734
|
|
||||
Net other comprehensive income (loss)
|
1,707
|
|
|
(4,470
|
)
|
|
2,458
|
|
|
(4,169
|
)
|
||||
Comprehensive income (loss)
|
$
|
2,969
|
|
|
$
|
(2,529
|
)
|
|
$
|
4,754
|
|
|
$
|
(703
|
)
|
Intermountain Community Bancorp
Consolidated Statements of Cash Flows
(Unaudited)
|
|||||||
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2014
|
|
2013
|
||||
|
(Dollars in thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
2,296
|
|
|
$
|
3,466
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
1,129
|
|
|
1,194
|
|
||
Stock-based compensation expense
|
233
|
|
|
13
|
|
||
Net amortization of premiums on securities
|
2,631
|
|
|
3,291
|
|
||
Provision for loan losses
|
99
|
|
|
426
|
|
||
Amortization of core deposit intangibles
|
20
|
|
|
29
|
|
||
Gain on sale of loans, investments, property and equipment
|
(542
|
)
|
|
(978
|
)
|
||
Impact of hedge dedesignation and current fair value adjustment
|
—
|
|
|
(147
|
)
|
||
OTTI credit loss on available-for-sale investments
|
—
|
|
|
63
|
|
||
OREO valuation adjustments
|
—
|
|
|
17
|
|
||
Accretion of deferred gain on sale of branch property
|
(8
|
)
|
|
(8
|
)
|
||
Net accretion of loan and deposit discounts and premiums
|
—
|
|
|
(5
|
)
|
||
Increase in cash surrender value of bank-owned life insurance
|
(165
|
)
|
|
(170
|
)
|
||
Change in value of stock warrants
|
(17
|
)
|
|
(2
|
)
|
||
Change in:
|
|
|
|
||||
Accrued interest receivable
|
(488
|
)
|
|
(143
|
)
|
||
Prepaid expenses and other assets
|
615
|
|
|
2,886
|
|
||
Accrued interest payable and other liabilities
|
(20
|
)
|
|
257
|
|
||
Accrued expenses and other cashiers checks
|
(355
|
)
|
|
254
|
|
||
Proceeds from sale of loans originated for sale
|
15,270
|
|
|
31,274
|
|
||
Loans originated for sale
|
(16,324
|
)
|
|
(29,895
|
)
|
||
Net cash provided by operating activities
|
4,374
|
|
|
11,822
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Proceeds from redemption of FHLB Stock
|
41
|
|
|
41
|
|
||
Purchases of available-for-sale securities
|
(49,848
|
)
|
|
(62,574
|
)
|
||
Proceeds from sales, calls or maturities of available-for-sale securities
|
26,007
|
|
|
34,798
|
|
||
Principal payments on mortgage-backed securities
|
16,033
|
|
|
33,058
|
|
||
Purchases of held-to-maturity securities
|
(870
|
)
|
|
—
|
|
||
Proceeds from sales, calls or maturities of held-to-maturity securities
|
2,915
|
|
|
53
|
|
||
Origination of loans, net of principal payments
|
(5,630
|
)
|
|
(2,787
|
)
|
||
Purchase of office properties and equipment and software
|
(543
|
)
|
|
(1,164
|
)
|
||
Proceeds from sale of other real estate owned
|
83
|
|
|
817
|
|
||
Proceeds from sale of office properties and equipment
|
3
|
|
|
13
|
|
||
Net change in restricted cash
|
1,468
|
|
|
683
|
|
||
Net cash provided by investing activities
|
(10,341
|
)
|
|
2,938
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net change in demand, money market and savings deposits
|
(5,047
|
)
|
|
(32,033
|
)
|
||
Net change in certificates of deposit
|
(7,115
|
)
|
|
(17,380
|
)
|
||
Net change in repurchase agreements
|
(22,041
|
)
|
|
8,867
|
|
||
Payments on borrowings
|
(350
|
)
|
|
—
|
|
||
Proceeds from new borrowings
|
10,000
|
|
|
—
|
|
||
Retirement of treasury stock
|
—
|
|
|
(1
|
)
|
||
Payment of preferred stock dividend
|
—
|
|
|
(675
|
)
|
||
Net cash used in financing activities
|
(24,553
|
)
|
|
(41,222
|
)
|
||
Net change in cash and cash equivalents
|
(30,520
|
)
|
|
(26,462
|
)
|
||
Cash and cash equivalents, beginning of period
|
52,797
|
|
|
66,939
|
|
||
Cash and cash equivalents, end of period
|
$
|
22,277
|
|
|
$
|
40,477
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest
|
$
|
1,580
|
|
|
$
|
2,804
|
|
Noncash investing and financing activities:
|
|
|
|
||||
Loans converted to other real estate owned
|
$
|
84
|
|
|
$
|
394
|
|
Transfer from securities available-for-sale to securities held-to-maturity
|
—
|
|
|
8,234
|
|
|
6/30/2014
|
|
12/31/2013
|
||||
Unrestricted interest-bearing cash and cash equivalents
|
$
|
14,257
|
|
|
$
|
44,946
|
|
Unrestricted non interest-bearing and vault cash
|
$
|
8,020
|
|
|
$
|
7,851
|
|
Restricted non-interest bearing cash
|
$
|
10,866
|
|
|
$
|
12,333
|
|
•
|
At June 30, 2014, a
$95,000
reserve balance was required at the FRB; a
$1.6 million
reserve balance was required to meet FRB reserve requirements on December 31, 2013;
|
•
|
At both June 30, 2014,
$195,000
was pledged to various correspondent banks to secure interest rate swap transactions and foreign currency exchange lines; at December 31, 2013 $172,000 was pledged;
|
•
|
At both June 30, 2014 and December 31, 2013,
$1.1 million
was held at the Company's subsidiary Bank to be used for future tenant improvements of the Sandpoint Center, as required by the agreement executed to sell the Sandpoint Center in 2009;
|
•
|
At both June 30, 2014 and December 31, 2013,
$9.5 million
was held at the Company's subsidiary Bank as required by an intercompany agreement signed by the Company and the Bank as part of the Company's January 2012 capital raise, which represents a pledge of funds to the Bank to partially secure the loan made by the Bank to the third party who bought and subsequently leased the Sandpoint Center back to the Bank.
|
|
Available-for-Sale
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value/
Carrying Value
|
||||||||
June 30, 2014
|
|
|
|
|
|
|
|
||||||||
Corporate Bonds
|
$
|
2,000
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
1,994
|
|
State and municipal securities
|
63,182
|
|
|
1,690
|
|
|
(321
|
)
|
|
64,551
|
|
||||
Mortgage-backed securities - Agency Pass Throughs
|
32,410
|
|
|
806
|
|
|
(375
|
)
|
|
32,841
|
|
||||
Mortgage-backed securities - Agency CMO's
|
127,795
|
|
|
1,370
|
|
|
(950
|
)
|
|
128,215
|
|
||||
SBA Pools
|
27,033
|
|
|
436
|
|
|
(14
|
)
|
|
27,455
|
|
||||
Mortgage-backed securities - Non Agency CMO's (investment grade)
|
4,026
|
|
|
—
|
|
|
(175
|
)
|
|
3,851
|
|
||||
Mortgage-backed securities - Non Agency CMO's (below investment grade)
|
2,387
|
|
|
39
|
|
|
(143
|
)
|
|
2,283
|
|
||||
|
$
|
258,833
|
|
|
$
|
4,341
|
|
|
$
|
(1,984
|
)
|
|
$
|
261,190
|
|
December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Corporate Bonds
|
$
|
4,000
|
|
|
$
|
—
|
|
|
$
|
(85
|
)
|
|
$
|
3,915
|
|
State and municipal securities
|
51,335
|
|
|
469
|
|
|
(1,765
|
)
|
|
50,039
|
|
||||
Mortgage-backed securities - Agency Pass Throughs
|
52,104
|
|
|
768
|
|
|
(499
|
)
|
|
52,373
|
|
||||
Mortgage-backed securities - Agency CMO's
|
114,704
|
|
|
849
|
|
|
(1,542
|
)
|
|
114,011
|
|
||||
SBA Pools
|
26,518
|
|
|
355
|
|
|
(46
|
)
|
|
26,827
|
|
||||
Mortgage-backed securities - Non Agency CMO's (investment grade)
|
2,025
|
|
|
—
|
|
|
(65
|
)
|
|
1,960
|
|
||||
Mortgage-backed securities - Non Agency CMO's (below investment grade)
|
2,654
|
|
|
31
|
|
|
(172
|
)
|
|
2,513
|
|
||||
|
$
|
253,340
|
|
|
$
|
2,472
|
|
|
$
|
(4,174
|
)
|
|
$
|
251,638
|
|
|
Held-to-Maturity
|
||||||||||||||
|
Carrying Value / Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
June 30, 2014
|
|
|
|
|
|
|
|
||||||||
State and municipal securities
|
$
|
26,109
|
|
|
$
|
1,255
|
|
|
$
|
(10
|
)
|
|
$
|
27,354
|
|
December 31, 2013
|
|
|
|
|
|
|
|
||||||||
State and municipal securities
|
$
|
28,286
|
|
|
$
|
857
|
|
|
$
|
(119
|
)
|
|
$
|
29,024
|
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
June 30, 2014
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Corporate Bonds
|
$
|
1,994
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,994
|
|
|
$
|
(6
|
)
|
Residential mortgage-back securities
|
52,366
|
|
|
(1,017
|
)
|
|
29,865
|
|
|
(626
|
)
|
|
82,231
|
|
|
(1,643
|
)
|
||||||
SBA Pools
|
6,625
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
6,625
|
|
|
(14
|
)
|
||||||
State and municipal securities
|
7,954
|
|
|
(76
|
)
|
|
10,084
|
|
|
(255
|
)
|
|
18,038
|
|
|
(331
|
)
|
||||||
Total
|
$
|
68,939
|
|
|
$
|
(1,113
|
)
|
|
$
|
39,949
|
|
|
$
|
(881
|
)
|
|
$
|
108,888
|
|
|
$
|
(1,994
|
)
|
December 31, 2013
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Corporate bonds
|
$
|
3,915
|
|
|
$
|
(85
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,915
|
|
|
$
|
(85
|
)
|
Mortgage-backed securities & CMO's
|
69,297
|
|
|
(1,709
|
)
|
|
20,657
|
|
|
(569
|
)
|
|
89,954
|
|
|
(2,278
|
)
|
||||||
SBA Pools
|
7,206
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
7,206
|
|
|
(46
|
)
|
||||||
State and municipal securities
|
36,615
|
|
|
(1,760
|
)
|
|
1,586
|
|
|
(124
|
)
|
|
38,201
|
|
|
(1,884
|
)
|
||||||
Total
|
$
|
117,033
|
|
|
$
|
(3,600
|
)
|
|
$
|
22,243
|
|
|
$
|
(693
|
)
|
|
$
|
139,276
|
|
|
$
|
(4,293
|
)
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
One year or less
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,371
|
|
|
$
|
1,377
|
|
After one year through five years
|
1,528
|
|
|
1,544
|
|
|
3,971
|
|
|
4,134
|
|
||||
After five years through ten years
|
5,856
|
|
|
5,834
|
|
|
15,196
|
|
|
15,915
|
|
||||
After ten years
|
57,798
|
|
|
59,167
|
|
|
5,571
|
|
|
5,928
|
|
||||
Subtotal
|
65,182
|
|
|
66,545
|
|
|
26,109
|
|
|
27,354
|
|
||||
Mortgage-backed securities
|
166,618
|
|
|
167,190
|
|
|
—
|
|
|
—
|
|
||||
SBA Pools
|
27,033
|
|
|
27,455
|
|
|
—
|
|
|
—
|
|
||||
Total Securities
|
$
|
258,833
|
|
|
$
|
261,190
|
|
|
$
|
26,109
|
|
|
$
|
27,354
|
|
|
June 30, 2014
|
|||||||||||||
|
Loans
Receivable
|
|
%
|
|
Individually
Evaluated for
Impairment
|
|
Collectively
Evaluated for
Impairment
|
|||||||
Commercial
|
$
|
118,353
|
|
|
22.4
|
%
|
|
$
|
4,520
|
|
|
$
|
113,833
|
|
Commercial real estate
|
169,234
|
|
|
32.0
|
|
|
2,951
|
|
|
166,283
|
|
|||
Commercial construction
|
12,293
|
|
|
2.3
|
|
|
—
|
|
|
12,293
|
|
|||
Land and land development loans
|
34,216
|
|
|
6.5
|
|
|
1,994
|
|
|
32,222
|
|
|||
Agriculture
|
105,545
|
|
|
20.0
|
|
|
2,369
|
|
|
103,176
|
|
|||
Multifamily
|
13,310
|
|
|
2.5
|
|
|
—
|
|
|
13,310
|
|
|||
Residential real estate
|
57,914
|
|
|
11.0
|
|
|
3,038
|
|
|
54,876
|
|
|||
Residential construction
|
2,021
|
|
|
0.4
|
|
|
—
|
|
|
2,021
|
|
|||
Consumer
|
8,860
|
|
|
1.7
|
|
|
54
|
|
|
8,806
|
|
|||
Municipal
|
6,500
|
|
|
1.2
|
|
|
—
|
|
|
6,500
|
|
|||
Total loans receivable
|
528,246
|
|
|
100.0
|
%
|
|
$
|
14,926
|
|
|
$
|
513,320
|
|
|
Allowance for loan losses
|
(7,683
|
)
|
|
|
|
|
|
|
||||||
Deferred loan fees, net of direct origination costs
|
(283
|
)
|
|
|
|
|
|
|
||||||
Loans receivable, net
|
$
|
520,280
|
|
|
|
|
|
|
|
|||||
Weighted average interest rate
|
5.08
|
%
|
|
|
|
|
|
|
|
December 31, 2013
|
|||||||||||||
|
Loans
Receivable
|
|
%
|
|
Individually
Evaluated for
Impairment
|
|
Collectively
Evaluated for
Impairment
|
|||||||
Commercial
|
$
|
113,736
|
|
|
21.8
|
%
|
|
$
|
4,713
|
|
|
$
|
109,023
|
|
Commercial real estate
|
181,207
|
|
|
34.7
|
|
|
3,128
|
|
|
178,079
|
|
|||
Commercial construction
|
7,383
|
|
|
1.4
|
|
|
—
|
|
|
7,383
|
|
|||
Land and land development loans
|
28,946
|
|
|
5.5
|
|
|
2,487
|
|
|
26,459
|
|
|||
Agriculture
|
96,584
|
|
|
18.5
|
|
|
2,868
|
|
|
93,716
|
|
|||
Multifamily
|
18,205
|
|
|
3.5
|
|
|
—
|
|
|
18,205
|
|
|||
Residential real estate
|
59,172
|
|
|
11.3
|
|
|
3,157
|
|
|
56,015
|
|
|||
Residential construction
|
2,531
|
|
|
0.5
|
|
|
—
|
|
|
2,531
|
|
|||
Consumer
|
9,033
|
|
|
1.7
|
|
|
33
|
|
|
9,000
|
|
|||
Municipal
|
5,964
|
|
|
1.1
|
|
|
—
|
|
|
5,964
|
|
|||
Total loans receivable
|
522,761
|
|
|
100.0
|
%
|
|
$
|
16,386
|
|
|
$
|
506,375
|
|
|
Allowance for loan losses
|
(7,687
|
)
|
|
|
|
|
|
|
||||||
Deferred loan fees, net of direct origination costs
|
(240
|
)
|
|
|
|
|
|
|
||||||
Loans receivable, net
|
$
|
514,834
|
|
|
|
|
|
|
|
|||||
Weighted average interest rate
|
5.14
|
%
|
|
|
|
|
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Total
Allowance
|
|
Individually
Evaluated
Allowance
|
|
Collectively
Evaluated
Allowance
|
|
Total
Allowance |
|
Individually
Evaluated Allowance |
|
Collectively
Evaluated Allowance |
||||||||||||
Commercial
|
$
|
1,817
|
|
|
$
|
302
|
|
|
$
|
1,515
|
|
|
$
|
1,819
|
|
|
$
|
398
|
|
|
$
|
1,421
|
|
Commercial real estate
|
2,336
|
|
|
382
|
|
|
1,954
|
|
|
2,455
|
|
|
332
|
|
|
2,123
|
|
||||||
Commercial construction
|
257
|
|
|
—
|
|
|
257
|
|
|
177
|
|
|
—
|
|
|
177
|
|
||||||
Land and land development loans
|
941
|
|
|
77
|
|
|
864
|
|
|
1,067
|
|
|
257
|
|
|
810
|
|
||||||
Agriculture
|
819
|
|
|
17
|
|
|
802
|
|
|
726
|
|
|
17
|
|
|
709
|
|
||||||
Multifamily
|
24
|
|
|
—
|
|
|
24
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||
Residential real estate
|
1,306
|
|
|
614
|
|
|
692
|
|
|
1,192
|
|
|
495
|
|
|
697
|
|
||||||
Residential construction
|
44
|
|
|
—
|
|
|
44
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||||
Consumer
|
114
|
|
|
18
|
|
|
96
|
|
|
136
|
|
|
7
|
|
|
129
|
|
||||||
Municipal
|
25
|
|
|
—
|
|
|
25
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||||
Total
|
$
|
7,683
|
|
|
$
|
1,410
|
|
|
$
|
6,273
|
|
|
$
|
7,687
|
|
|
$
|
1,506
|
|
|
$
|
6,181
|
|
|
Current
|
|
30-89 Days
Past Due
|
|
90 Days or More
Past Due
and Accruing
|
|
Nonaccrual
|
|
Total
|
||||||||||
Commercial
|
$
|
115,831
|
|
|
$
|
317
|
|
|
$
|
—
|
|
|
$
|
2,205
|
|
|
$
|
118,353
|
|
Commercial real estate
|
169,144
|
|
|
15
|
|
|
—
|
|
|
75
|
|
|
169,234
|
|
|||||
Commercial construction
|
12,293
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,293
|
|
|||||
Land and land development loans
|
34,089
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
34,216
|
|
|||||
Agriculture
|
105,187
|
|
|
152
|
|
|
—
|
|
|
206
|
|
|
105,545
|
|
|||||
Multifamily
|
13,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,310
|
|
|||||
Residential real estate
|
56,732
|
|
|
378
|
|
|
—
|
|
|
804
|
|
|
57,914
|
|
|||||
Residential construction
|
2,021
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,021
|
|
|||||
Consumer
|
8,852
|
|
|
5
|
|
|
—
|
|
|
3
|
|
|
8,860
|
|
|||||
Municipal
|
6,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,500
|
|
|||||
Total
|
$
|
523,959
|
|
|
$
|
867
|
|
|
$
|
—
|
|
|
$
|
3,420
|
|
|
$
|
528,246
|
|
|
Current
|
|
30-89 Days
Past Due
|
|
90 Days or More
Past Due
and Accruing
|
|
Nonaccrual
|
|
Total
|
||||||||||
Commercial
|
$
|
111,353
|
|
|
$
|
952
|
|
|
$
|
—
|
|
|
$
|
1,431
|
|
|
$
|
113,736
|
|
Commercial real estate
|
181,028
|
|
|
12
|
|
|
—
|
|
|
167
|
|
|
181,207
|
|
|||||
Commercial construction
|
7,383
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,383
|
|
|||||
Land and land development loans
|
28,776
|
|
|
9
|
|
|
—
|
|
|
161
|
|
|
28,946
|
|
|||||
Agriculture
|
96,320
|
|
|
51
|
|
|
—
|
|
|
213
|
|
|
96,584
|
|
|||||
Multifamily
|
18,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,205
|
|
|||||
Residential real estate
|
58,238
|
|
|
241
|
|
|
—
|
|
|
693
|
|
|
59,172
|
|
|||||
Residential construction
|
2,531
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,531
|
|
|||||
Consumer
|
9,028
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
9,033
|
|
|||||
Municipal
|
5,964
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,964
|
|
|||||
Total
|
$
|
518,826
|
|
|
$
|
1,267
|
|
|
$
|
—
|
|
|
$
|
2,668
|
|
|
$
|
522,761
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Nonaccrual
|
|
Accrual
|
|
Total
|
|
Nonaccrual
|
|
Accrual
|
|
Total
|
||||||||||||
Commercial
|
$
|
318
|
|
|
$
|
1,143
|
|
|
$
|
1,461
|
|
|
$
|
249
|
|
|
$
|
1,590
|
|
|
$
|
1,839
|
|
Commercial real estate
|
35
|
|
|
2,165
|
|
|
2,200
|
|
|
38
|
|
|
1,931
|
|
|
1,969
|
|
||||||
Land and land development loans
|
43
|
|
|
1,861
|
|
|
1,904
|
|
|
46
|
|
|
2,063
|
|
|
2,109
|
|
||||||
Agriculture
|
—
|
|
|
2,162
|
|
|
2,162
|
|
|
—
|
|
|
2,483
|
|
|
2,483
|
|
||||||
Residential real estate
|
493
|
|
|
1,117
|
|
|
1,610
|
|
|
498
|
|
|
1,140
|
|
|
1,638
|
|
||||||
Consumer
|
—
|
|
|
28
|
|
|
28
|
|
|
—
|
|
|
9
|
|
|
9
|
|
||||||
Total
|
$
|
889
|
|
|
$
|
8,476
|
|
|
$
|
9,365
|
|
|
$
|
831
|
|
|
$
|
9,216
|
|
|
$
|
10,047
|
|
|
Three Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2014
|
||||||||||||||||||
|
Number
|
|
Pre-Modification Recorded Investment
|
|
Post-Modification Recorded Investment
|
|
Number
|
|
Pre-Modification Recorded Investment
|
|
Post-Modification Recorded Investment
|
||||||||||
Commercial
|
2
|
|
|
$
|
20
|
|
|
$
|
20
|
|
|
9
|
|
|
$
|
446
|
|
|
$
|
437
|
|
Commercial real estate
|
1
|
|
|
39
|
|
|
53
|
|
|
1
|
|
|
39
|
|
|
53
|
|
||||
Land and land development loans
|
1
|
|
|
69
|
|
|
69
|
|
|
1
|
|
|
69
|
|
|
69
|
|
||||
Agriculture
|
2
|
|
|
270
|
|
|
270
|
|
|
2
|
|
|
270
|
|
|
270
|
|
||||
Consumer
|
1
|
|
|
23
|
|
|
23
|
|
|
1
|
|
|
23
|
|
|
23
|
|
||||
|
7
|
|
|
$
|
421
|
|
|
$
|
435
|
|
|
14
|
|
|
$
|
847
|
|
|
$
|
852
|
|
|
Three Months Ended June 30, 2013
|
|
Six Months Ended June 30, 2013
|
||||||||||||||||||
|
Number
|
|
Pre-Modification Recorded Investment
|
|
Post-Modification Recorded Investment
|
|
Number
|
|
Pre-Modification Recorded Investment
|
|
Post-Modification Recorded Investment
|
||||||||||
Commercial
|
3
|
|
|
$
|
2,243
|
|
|
$
|
2,243
|
|
|
7
|
|
|
$
|
2,506
|
|
|
$
|
2,506
|
|
Commercial real estate
|
4
|
|
|
392
|
|
|
392
|
|
|
4
|
|
|
392
|
|
|
392
|
|
||||
Land and land development loans
|
1
|
|
|
182
|
|
|
182
|
|
|
3
|
|
|
335
|
|
|
335
|
|
||||
Agriculture
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
1,216
|
|
|
1,216
|
|
||||
Residential real estate
|
3
|
|
|
225
|
|
|
167
|
|
|
3
|
|
|
225
|
|
|
167
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
89
|
|
|
89
|
|
||||
|
11
|
|
|
$
|
3,042
|
|
|
$
|
2,984
|
|
|
22
|
|
|
$
|
4,763
|
|
|
$
|
4,705
|
|
|
Three Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2014
|
||||||||||||
|
Adjusted Interest Rate Only
|
|
Other*
|
|
Adjusted Interest Rate Only
|
|
Other*
|
||||||||
Commercial
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
438
|
|
Commercial real estate
|
—
|
|
|
53
|
|
|
—
|
|
|
52
|
|
||||
Land and land development loans
|
69
|
|
|
—
|
|
|
69
|
|
|
—
|
|
||||
Agriculture
|
—
|
|
|
270
|
|
|
—
|
|
|
270
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||
|
$
|
92
|
|
|
$
|
343
|
|
|
$
|
92
|
|
|
$
|
760
|
|
|
Three months ended June 30, 2013
|
|
Six Months Ended June 30, 2013
|
||||||||||||
|
Adjusted Interest Rate Only
|
|
Other*
|
|
Adjusted Interest Rate Only
|
|
Other*
|
||||||||
Commercial
|
$
|
1,350
|
|
|
$
|
893
|
|
|
$
|
1,350
|
|
|
$
|
1,156
|
|
Commercial real estate
|
—
|
|
|
392
|
|
|
—
|
|
|
392
|
|
||||
Land and land development loans
|
—
|
|
|
182
|
|
|
36
|
|
|
299
|
|
||||
Agriculture
|
—
|
|
|
—
|
|
|
852
|
|
|
364
|
|
||||
Residential real estate
|
147
|
|
|
20
|
|
|
147
|
|
|
20
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
||||
|
$
|
1,497
|
|
|
$
|
1,487
|
|
|
$
|
2,385
|
|
|
$
|
2,320
|
|
|
Allowance for Loan Losses
for the three months ended June 30, 2014 |
||||||||||||||||||
|
Balance,
Beginning of
Quarter
|
|
Charge-Offs
Apr 1 through June 30, 2014 |
|
Recoveries
Apr 1 through June 30, 2014 |
|
Provision
|
|
Balance,
End of
Quarter
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Commercial
|
$
|
1,838
|
|
|
$
|
(160
|
)
|
|
$
|
17
|
|
|
$
|
122
|
|
|
$
|
1,817
|
|
Commercial real estate
|
2,370
|
|
|
—
|
|
|
4
|
|
|
(38
|
)
|
|
2,336
|
|
|||||
Commercial construction
|
340
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
257
|
|
|||||
Land and land development loans
|
888
|
|
|
—
|
|
|
46
|
|
|
7
|
|
|
941
|
|
|||||
Agriculture
|
754
|
|
|
—
|
|
|
25
|
|
|
40
|
|
|
819
|
|
|||||
Multifamily
|
31
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
24
|
|
|||||
Residential real estate
|
1,402
|
|
|
(11
|
)
|
|
12
|
|
|
(97
|
)
|
|
1,306
|
|
|||||
Residential construction
|
34
|
|
|
—
|
|
|
2
|
|
|
8
|
|
|
44
|
|
|||||
Consumer
|
98
|
|
|
(46
|
)
|
|
18
|
|
|
44
|
|
|
114
|
|
|||||
Municipal
|
24
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
25
|
|
|||||
Allowance for loan losses
|
$
|
7,779
|
|
|
$
|
(217
|
)
|
|
$
|
124
|
|
|
$
|
(3
|
)
|
|
$
|
7,683
|
|
|
Allowance for Loan Losses
for the six months ended June 30, 2014 |
||||||||||||||||||
|
Balance,
Beginning of Period
|
|
Charge-Offs
Jan 1 through June 30, 2014 |
|
Recoveries
Jan 1 through Jun 30, 2014 |
|
Provision
|
|
Balance,
End of
Period
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Commercial
|
$
|
1,819
|
|
|
$
|
(232
|
)
|
|
$
|
60
|
|
|
$
|
170
|
|
|
$
|
1,817
|
|
Commercial real estate
|
2,455
|
|
|
(1
|
)
|
|
7
|
|
|
(125
|
)
|
|
2,336
|
|
|||||
Commercial construction
|
177
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
257
|
|
|||||
Land and land development loans
|
1,067
|
|
|
—
|
|
|
52
|
|
|
(178
|
)
|
|
941
|
|
|||||
Agriculture
|
726
|
|
|
—
|
|
|
37
|
|
|
56
|
|
|
819
|
|
|||||
Multifamily
|
33
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
24
|
|
|||||
Residential real estate
|
1,192
|
|
|
(30
|
)
|
|
36
|
|
|
108
|
|
|
1,306
|
|
|||||
Residential construction
|
56
|
|
|
—
|
|
|
4
|
|
|
(16
|
)
|
|
44
|
|
|||||
Consumer
|
136
|
|
|
(87
|
)
|
|
51
|
|
|
14
|
|
|
114
|
|
|||||
Municipal
|
26
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
25
|
|
|||||
Allowance for loan losses
|
$
|
7,687
|
|
|
$
|
(350
|
)
|
|
$
|
247
|
|
|
$
|
99
|
|
|
$
|
7,683
|
|
|
Allowance for Loan Losses
for the three months ended June 30, 2013 |
||||||||||||||||||
|
Balance,
Beginning of
Quarter
|
|
Charge-Offs
Apr 1 through June 30, 2013 |
|
Recoveries
Apr 1 through June 30, 2013 |
|
Provision
|
|
Balance,
End of
Quarter
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Commercial
|
$
|
1,763
|
|
|
$
|
(132
|
)
|
|
$
|
310
|
|
|
$
|
(41
|
)
|
|
$
|
1,900
|
|
Commercial real estate
|
2,814
|
|
|
(48
|
)
|
|
20
|
|
|
(50
|
)
|
|
2,736
|
|
|||||
Commercial construction
|
217
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
231
|
|
|||||
Land and land development loans
|
1,210
|
|
|
(130
|
)
|
|
49
|
|
|
(173
|
)
|
|
956
|
|
|||||
Agriculture
|
241
|
|
|
—
|
|
|
23
|
|
|
428
|
|
|
692
|
|
|||||
Multifamily
|
55
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
54
|
|
|||||
Residential real estate
|
1,103
|
|
|
(40
|
)
|
|
45
|
|
|
87
|
|
|
1,195
|
|
|||||
Residential construction
|
35
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
44
|
|
|||||
Consumer
|
206
|
|
|
(46
|
)
|
|
52
|
|
|
(9
|
)
|
|
203
|
|
|||||
Municipal
|
34
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
31
|
|
|||||
Allowances for loan losses
|
$
|
7,678
|
|
|
$
|
(396
|
)
|
|
$
|
513
|
|
|
$
|
247
|
|
|
$
|
8,042
|
|
|
Allowance for Loan Losses
for the six months ended June 30, 2013 |
||||||||||||||||||
|
Balance,
Beginning of Period
|
|
Charge-Offs
Jan 1 through June 30, 2013 |
|
Recoveries
Jan 1 through June 30, 2013 |
|
Provision
|
|
Balance,
End of
Period
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Commercial
|
$
|
2,156
|
|
|
$
|
(221
|
)
|
|
$
|
489
|
|
|
$
|
(524
|
)
|
|
$
|
1,900
|
|
Commercial real estate
|
2,762
|
|
|
(614
|
)
|
|
27
|
|
|
561
|
|
|
2,736
|
|
|||||
Commercial construction
|
101
|
|
|
—
|
|
|
15
|
|
|
115
|
|
|
231
|
|
|||||
Land and land development loans
|
1,197
|
|
|
(137
|
)
|
|
64
|
|
|
(168
|
)
|
|
956
|
|
|||||
Agriculture
|
228
|
|
|
—
|
|
|
41
|
|
|
423
|
|
|
692
|
|
|||||
Multifamily
|
51
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
54
|
|
|||||
Residential real estate
|
1,144
|
|
|
(40
|
)
|
|
70
|
|
|
21
|
|
|
1,195
|
|
|||||
Residential construction
|
24
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
44
|
|
|||||
Consumer
|
202
|
|
|
(110
|
)
|
|
89
|
|
|
22
|
|
|
203
|
|
|||||
Municipal
|
78
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
31
|
|
|||||
Allowances for loan losses
|
$
|
7,943
|
|
|
$
|
(1,122
|
)
|
|
$
|
795
|
|
|
$
|
426
|
|
|
$
|
8,042
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Beginning of period
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
16
|
|
|
$
|
15
|
|
Adjustment
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
||||
Allowance — Unfunded Commitments at end of period
|
$
|
17
|
|
|
$
|
15
|
|
|
$
|
17
|
|
|
$
|
15
|
|
|
Impaired Loans
|
||||||||||||||||||||||
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Recorded
Investment
|
|
Principal
Balance
|
|
Related
Allowance
|
|
Recorded
Investment
|
|
Principal
Balance
|
|
Related
Allowance
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
1,707
|
|
|
$
|
1,802
|
|
|
$
|
302
|
|
|
$
|
1,742
|
|
|
$
|
1,896
|
|
|
$
|
398
|
|
Commercial real estate
|
892
|
|
|
924
|
|
|
382
|
|
|
1,133
|
|
|
1,165
|
|
|
332
|
|
||||||
Land and land development loans
|
623
|
|
|
628
|
|
|
77
|
|
|
843
|
|
|
848
|
|
|
257
|
|
||||||
Agriculture
|
326
|
|
|
326
|
|
|
17
|
|
|
375
|
|
|
375
|
|
|
17
|
|
||||||
Residential real estate
|
2,245
|
|
|
2,403
|
|
|
614
|
|
|
1,094
|
|
|
1,095
|
|
|
495
|
|
||||||
Consumer
|
19
|
|
|
21
|
|
|
18
|
|
|
8
|
|
|
10
|
|
|
7
|
|
||||||
Total
|
$
|
5,812
|
|
|
$
|
6,104
|
|
|
$
|
1,410
|
|
|
$
|
5,195
|
|
|
$
|
5,389
|
|
|
$
|
1,506
|
|
Without an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
2,813
|
|
|
$
|
3,758
|
|
|
$
|
—
|
|
|
$
|
2,971
|
|
|
$
|
3,780
|
|
|
$
|
—
|
|
Commercial real estate
|
2,059
|
|
|
2,401
|
|
|
—
|
|
|
1,995
|
|
|
2,377
|
|
|
—
|
|
||||||
Land and land development loans
|
1,371
|
|
|
1,466
|
|
|
—
|
|
|
1,644
|
|
|
1,799
|
|
|
—
|
|
||||||
Agriculture
|
2,043
|
|
|
2,076
|
|
|
—
|
|
|
2,493
|
|
|
2,524
|
|
|
—
|
|
||||||
Residential real estate
|
793
|
|
|
870
|
|
|
—
|
|
|
2,063
|
|
|
2,277
|
|
|
—
|
|
||||||
Consumer
|
35
|
|
|
54
|
|
|
—
|
|
|
25
|
|
|
43
|
|
|
—
|
|
||||||
Total
|
$
|
9,114
|
|
|
$
|
10,625
|
|
|
$
|
—
|
|
|
$
|
11,191
|
|
|
$
|
12,800
|
|
|
$
|
—
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
4,520
|
|
|
$
|
5,560
|
|
|
$
|
302
|
|
|
$
|
4,713
|
|
|
$
|
5,676
|
|
|
$
|
398
|
|
Commercial real estate
|
2,951
|
|
|
3,325
|
|
|
382
|
|
|
3,128
|
|
|
3,542
|
|
|
332
|
|
||||||
Land and land development loans
|
1,994
|
|
|
2,094
|
|
|
77
|
|
|
2,487
|
|
|
2,647
|
|
|
257
|
|
||||||
Agriculture
|
2,369
|
|
|
2,402
|
|
|
17
|
|
|
2,868
|
|
|
2,899
|
|
|
17
|
|
||||||
Residential real estate
|
3,038
|
|
|
3,273
|
|
|
614
|
|
|
3,157
|
|
|
3,372
|
|
|
495
|
|
||||||
Consumer
|
54
|
|
|
75
|
|
|
18
|
|
|
33
|
|
|
53
|
|
|
7
|
|
||||||
Total
|
$
|
14,926
|
|
|
$
|
16,729
|
|
|
$
|
1,410
|
|
|
$
|
16,386
|
|
|
$
|
18,189
|
|
|
$
|
1,506
|
|
|
Impaired Loans
|
||||||||||||||
|
Six Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2013
|
||||||||||||
|
Average
Recorded
Investment
|
|
Interest Income
Recognized (*)
|
|
Average
Recorded
Investment
|
|
Interest Income
Recognized (*)
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
1,690
|
|
|
$
|
59
|
|
|
$
|
1,308
|
|
|
$
|
52
|
|
Commercial real estate
|
1,045
|
|
|
30
|
|
|
1,294
|
|
|
39
|
|
||||
Land and land development loans
|
699
|
|
|
25
|
|
|
1,351
|
|
|
25
|
|
||||
Agriculture
|
381
|
|
|
16
|
|
|
15
|
|
|
—
|
|
||||
Residential real estate
|
1,553
|
|
|
67
|
|
|
959
|
|
|
28
|
|
||||
Consumer
|
13
|
|
|
1
|
|
|
136
|
|
|
6
|
|
||||
Total
|
$
|
5,381
|
|
|
$
|
198
|
|
|
$
|
5,063
|
|
|
$
|
150
|
|
Without an allowance recorded:
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
$
|
3,140
|
|
|
$
|
258
|
|
|
$
|
3,385
|
|
|
$
|
297
|
|
Commercial real estate
|
1,923
|
|
|
147
|
|
|
2,977
|
|
|
232
|
|
||||
Land and land development loans
|
1,546
|
|
|
35
|
|
|
929
|
|
|
31
|
|
||||
Agriculture
|
2,359
|
|
|
83
|
|
|
3,056
|
|
|
189
|
|
||||
Residential real estate
|
1,619
|
|
|
49
|
|
|
1,511
|
|
|
67
|
|
||||
Consumer
|
27
|
|
|
2
|
|
|
36
|
|
|
2
|
|
||||
Total
|
$
|
10,614
|
|
|
$
|
574
|
|
|
$
|
11,894
|
|
|
$
|
818
|
|
Total:
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
$
|
4,830
|
|
|
$
|
317
|
|
|
$
|
4,693
|
|
|
$
|
349
|
|
Commercial real estate
|
2,968
|
|
|
177
|
|
|
4,271
|
|
|
271
|
|
||||
Land and land development loans
|
2,245
|
|
|
60
|
|
|
2,280
|
|
|
56
|
|
||||
Agriculture
|
2,740
|
|
|
99
|
|
|
3,071
|
|
|
189
|
|
||||
Residential real estate
|
3,172
|
|
|
116
|
|
|
2,470
|
|
|
95
|
|
||||
Consumer
|
40
|
|
|
3
|
|
|
172
|
|
|
8
|
|
||||
Total
|
$
|
15,995
|
|
|
$
|
772
|
|
|
$
|
16,957
|
|
|
968
|
|
|
Loan Portfolio Credit Grades by Type
June 30, 2014 |
||||||||||||||||||||||
|
Satisfactory
Grade 1-3
|
|
Internal
Watch
Grade 4
|
|
Special
Mention
Grade 5
|
|
Substandard
Grade 6
|
|
Doubtful
Grade 7
|
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial
|
$
|
85,213
|
|
|
$
|
23,830
|
|
|
$
|
2,762
|
|
|
$
|
6,548
|
|
|
$
|
—
|
|
|
$
|
118,353
|
|
Commercial real estate
|
125,877
|
|
|
38,436
|
|
|
1,085
|
|
|
3,836
|
|
|
—
|
|
|
169,234
|
|
||||||
Commercial construction
|
12,217
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,293
|
|
||||||
Land and land development loans
|
21,033
|
|
|
12,371
|
|
|
—
|
|
|
812
|
|
|
—
|
|
|
34,216
|
|
||||||
Agriculture
|
84,373
|
|
|
16,631
|
|
|
1,167
|
|
|
3,374
|
|
|
—
|
|
|
105,545
|
|
||||||
Multifamily
|
3,768
|
|
|
9,542
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,310
|
|
||||||
Residential real estate
|
46,706
|
|
|
8,140
|
|
|
200
|
|
|
2,868
|
|
|
—
|
|
|
57,914
|
|
||||||
Residential construction
|
2,021
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,021
|
|
||||||
Consumer
|
8,268
|
|
|
491
|
|
|
2
|
|
|
99
|
|
|
—
|
|
|
8,860
|
|
||||||
Municipal
|
6,420
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,500
|
|
||||||
Loans receivable, net
|
$
|
395,896
|
|
|
$
|
109,597
|
|
|
$
|
5,216
|
|
|
$
|
17,537
|
|
|
$
|
—
|
|
|
$
|
528,246
|
|
|
Loan Portfolio Credit Grades by Type
December 31, 2013 |
||||||||||||||||||||||
|
Satisfactory
Grade 1-3
|
|
Internal
Watch
Grade 4
|
|
Special
Mention
Grade 5
|
|
Substandard
Grade 6
|
|
Doubtful
Grade 7
|
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial
|
$
|
81,303
|
|
|
$
|
23,741
|
|
|
$
|
1,172
|
|
|
$
|
7,520
|
|
|
$
|
—
|
|
|
$
|
113,736
|
|
Commercial real estate
|
136,253
|
|
|
41,295
|
|
|
—
|
|
|
3,659
|
|
|
—
|
|
|
181,207
|
|
||||||
Commercial construction
|
7,292
|
|
|
51
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
7,383
|
|
||||||
Land and land development loans
|
14,187
|
|
|
13,718
|
|
|
—
|
|
|
1,041
|
|
|
—
|
|
|
28,946
|
|
||||||
Agriculture
|
77,402
|
|
|
14,466
|
|
|
678
|
|
|
4,038
|
|
|
—
|
|
|
96,584
|
|
||||||
Multifamily
|
6,368
|
|
|
8,086
|
|
|
—
|
|
|
3,751
|
|
|
—
|
|
|
18,205
|
|
||||||
Residential real estate
|
47,441
|
|
|
8,771
|
|
|
—
|
|
|
2,960
|
|
|
—
|
|
|
59,172
|
|
||||||
Residential construction
|
2,531
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,531
|
|
||||||
Consumer
|
8,469
|
|
|
474
|
|
|
3
|
|
|
87
|
|
|
—
|
|
|
9,033
|
|
||||||
Municipal
|
5,863
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,964
|
|
||||||
Loans receivable, net
|
$
|
387,109
|
|
|
$
|
110,703
|
|
|
$
|
1,893
|
|
|
$
|
23,056
|
|
|
$
|
—
|
|
|
$
|
522,761
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
|
(Dollars in thousands)
|
||||||
Loans past due in excess of 90 days and still accruing
|
$
|
—
|
|
|
$
|
—
|
|
Non-accrual loans
|
3,420
|
|
|
2,668
|
|
||
Total non-performing loans
|
3,420
|
|
|
2,668
|
|
||
Other real estate owned (“OREO”)
|
3,684
|
|
|
3,684
|
|
||
Total non-performing assets (“NPAs”)
|
$
|
7,104
|
|
|
$
|
6,352
|
|
Classified loans (1)
|
$
|
17,537
|
|
|
$
|
23,056
|
|
1)
|
Classified loan totals are inclusive of non-performing loans and may also include troubled debt restructured loans, depending on the grading of these restructured loans.
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Term note payable (1)
|
$
|
8,279
|
|
|
$
|
8,279
|
|
Term note payable (2)
|
8,248
|
|
|
8,248
|
|
||
Term note payable (3)
|
6,533
|
|
|
6,883
|
|
||
Total other borrowings
|
$
|
23,060
|
|
|
$
|
23,410
|
|
(1)
|
In
January 2003
, the Company issued
$8.0 million
of Trust Preferred securities through its subsidiary, Intermountain Statutory Trust I. The debt associated with these securities bears interest on a variable basis tied to the
90-day LIBOR
(London Inter-Bank Offering Rate) index plus
3.25%
, with interest only paid quarterly. The rate on this borrowing was
3.47%
at
June 30, 2014
. The debt is callable by the Company quarterly and matures in
March 2033
. See Note A below.
|
(2)
|
In
March 2004
, the Company issued
$8.0 million
of Trust Preferred securities through its subsidiary, Intermountain Statutory Trust II. The debt associated with these securities bears interest on a variable basis tied to the
90-day LIBOR
index plus
2.8%
, with interest only paid quarterly. The rate on this borrowing was
3.03%
at
June 30, 2014
. The debt is callable by the Company quarterly and matures in
April 2034
. See Note A below:
|
A)
|
Intermountain’s obligations under the debentures issued to the trusts referred to above constitute a full and unconditional guarantee by Intermountain of the Statutory Trusts’ obligations under the Trust Preferred Securities. In accordance with ASC 810, Consolidation, the trusts are not consolidated and the debentures and related amounts are treated as debt of Intermountain.
|
(3)
|
In November 2013, the Company entered into a Loan Agreement with NexBank SSB (“Lender”) providing for a term loan in the amount of
$7,000,000
(the “Loan Agreement”). It amended the agreement in June 2014 to lower the interest rate and adjust some of the reporting requirements. The loan now accrues interest at
three-month LIBOR
plus
3.25%
per annum versus three-month LIBOR plus 4% under the original agreement. It has a maturity date of November 19, 2018. The rate on the loan at June 30, 2014 was
3.47%
. The Company used the net proceeds of the loan as part of its full repayment to Treasury to redeem the preferred shares issued to Treasury under the CPP. Commencing December 1, 2013, monthly installments of principal in the amount of
$58,333.33
, plus accrued interest are due and payable. The Company may prepay the loan (and all accrued interest) without fee or penalty. In connection with entering into the Loan Agreement, the Company issued to Lender a Promissory Note dated as of November 19, 2013 (“Note”). The obligations of the Company under the Loan Agreement and the Note are secured by a pledge of all of the common stock of the Company’s subsidiary, Panhandle State Bank (the “Bank”), pursuant to a Pledge and Security Agreement dated as of November 19, 2013 (the “Pledge Agreement”). In the event of a default by the Company under the Loan Agreement, the Lender may declare the Note to be immediately due and payable and exercise or pursue any other remedy permitted under or conferred on Lender by operation of law. The Loan Agreement and the related Note include various covenants and agreements that are customary for loan agreements and promissory notes of this type, including certain financial and capital ratios. Under the Loan Agreement, the Company among other things must limit any indebtedness that it incurs during the life of the loan and is restricted from merging or being acquired without Lender approval. As of June 30, 2014, the Company believes that it had met all covenants and other conditions of the Loan Agreement.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income - basic and diluted
|
$
|
1,262
|
|
|
$
|
1,941
|
|
|
$
|
2,296
|
|
|
$
|
3,466
|
|
Preferred stock dividend
|
—
|
|
|
460
|
|
|
|
|
|
918
|
|
||||
Net income applicable to common stockholders
|
$
|
1,262
|
|
|
$
|
1,481
|
|
|
$
|
2,296
|
|
|
$
|
2,548
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
6,490,902
|
|
|
6,443,294
|
|
|
6,490,902
|
|
|
6,443,142
|
|
||||
Effect of unvested restricted stock awards considered participating securities
|
206,484
|
|
|
—
|
|
|
128,674
|
|
|
—
|
|
||||
Weighted-average shares outstanding - basic
|
6,697,386
|
|
|
6,443,294
|
|
|
6,619,576
|
|
|
6,443,142
|
|
||||
Dilutive effect of common stock options and warrants
|
68,522
|
|
|
41,468
|
|
|
67,099
|
|
|
39,234
|
|
||||
Weighted average shares outstanding — diluted
|
6,765,908
|
|
|
6,484,762
|
|
|
6,686,675
|
|
|
6,482,376
|
|
||||
Earnings per share — basic and diluted:
|
|
|
|
|
|
|
|
||||||||
Earnings per share — basic
|
$
|
0.19
|
|
|
$
|
0.23
|
|
|
$
|
0.35
|
|
|
$
|
0.40
|
|
Effect of dilutive common stock options, warrants, restricted stock awards
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
||||
Earnings per share — diluted
|
$
|
0.19
|
|
|
$
|
0.23
|
|
|
$
|
0.34
|
|
|
$
|
0.39
|
|
|
|
Six months ended June 30, 2014
|
|||||
|
|
Number of
Shares
|
|
Weighted
Average
Grant Date Fair
Value
|
|||
Nonvested shares
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
50,000
|
|
|
$
|
15.22
|
|
Shares granted
|
|
160,000
|
|
|
17.00
|
|
|
Shares vested
|
|
—
|
|
|
—
|
|
|
Shares forfeited and canceled
|
|
—
|
|
|
—
|
|
|
Balance, end of period
|
|
210,000
|
|
|
$
|
16.58
|
|
|
Fair Value Measurements as of
|
|||||||||||||||||
|
|
|
June 30, 2014
|
|
December 31, 2013
|
|||||||||||||
|
Level
|
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
|||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents, restricted cash and federal funds sold
|
1
|
|
|
$
|
33,143
|
|
|
$
|
33,143
|
|
|
$
|
65,130
|
|
|
$
|
65,130
|
|
Available-for-sale securities
|
2
|
|
|
261,190
|
|
|
261,190
|
|
|
251,638
|
|
|
251,638
|
|
||||
Held-to-maturity securities
|
2
|
|
|
26,109
|
|
|
27,354
|
|
|
28,286
|
|
|
29,024
|
|
||||
Loans held for sale
|
2
|
|
|
2,038
|
|
|
2,038
|
|
|
614
|
|
|
614
|
|
||||
Loans receivable, net
|
3
|
|
|
520,280
|
|
|
529,142
|
|
|
514,834
|
|
|
523,209
|
|
||||
Accrued interest receivable
|
2
|
|
|
4,657
|
|
|
4,657
|
|
|
4,170
|
|
|
4,170
|
|
||||
BOLI
|
1
|
|
|
9,962
|
|
|
9,962
|
|
|
9,797
|
|
|
9,797
|
|
||||
Other assets
|
2 & 3
|
|
|
2,146
|
|
|
2,146
|
|
|
2,060
|
|
|
2,060
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposit liabilities
|
3
|
|
|
693,888
|
|
|
662,993
|
|
|
706,050
|
|
|
670,895
|
|
||||
Borrowings
|
3
|
|
|
114,907
|
|
|
115,014
|
|
|
127,298
|
|
|
127,656
|
|
||||
Accrued interest payable
|
2
|
|
|
200
|
|
|
200
|
|
|
219
|
|
|
219
|
|
||||
Unexercised warrants
|
3
|
|
|
925
|
|
|
925
|
|
|
942
|
|
|
942
|
|
|
|
||||||||||||||
Description
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Balance at June 30, 2014
|
|
|
|
|
|
|
|
||||||||
Available-for-Sale Securities:
|
|
|
|
|
|
|
|
||||||||
Corporate Bonds
|
$
|
1,994
|
|
|
$
|
—
|
|
|
$
|
1,994
|
|
|
$
|
—
|
|
State and municipal bonds
|
64,551
|
|
|
—
|
|
|
64,551
|
|
|
—
|
|
||||
Residential mortgage backed securities and SBA Pools
|
194,645
|
|
|
—
|
|
|
194,645
|
|
|
—
|
|
||||
Total Assets Measured at Fair Value
|
$
|
261,190
|
|
|
$
|
—
|
|
|
$
|
261,190
|
|
|
$
|
—
|
|
Unexercised Warrants
|
$
|
925
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
925
|
|
Total Liabilities Measured at Fair Value
|
$
|
925
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
925
|
|
Balance at December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Available-for-Sale Securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
3,915
|
|
|
$
|
—
|
|
|
$
|
3,915
|
|
|
$
|
—
|
|
State and municipal bonds
|
50,039
|
|
|
—
|
|
|
50,039
|
|
|
—
|
|
||||
Residential mortgage backed securities and SBA Pools
|
197,684
|
|
|
—
|
|
|
197,684
|
|
|
—
|
|
||||
Other Assets — Derivative
|
(127
|
)
|
|
—
|
|
|
—
|
|
|
(127
|
)
|
||||
Total Assets Measured at Fair Value
|
$
|
251,511
|
|
|
$
|
—
|
|
|
$
|
251,638
|
|
|
$
|
(127
|
)
|
Unexercised Warrants
|
$
|
942
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
942
|
|
Total Liabilities Measured at Fair Value
|
$
|
942
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
942
|
|
|
Fair Value Measurements Using Significant
Unobservable Inputs ( Level 3) Quarter to Date |
||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||
Description
|
Derivatives (net)
|
|
Unexercised Warrants
|
|
Residential MBS
|
|
Derivatives (net)
|
|
Unexercised Warrants
|
||||||||||
April 1, Balance
|
$
|
(43
|
)
|
|
(1,048
|
)
|
|
$
|
8,220
|
|
|
$
|
(480
|
)
|
|
$
|
(772
|
)
|
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
43
|
|
|
123
|
|
|
(21
|
)
|
|
149
|
|
|
(54
|
)
|
|||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|||||
Principal Payments
|
—
|
|
|
—
|
|
|
(493
|
)
|
|
—
|
|
|
—
|
|
|||||
Sales of Securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
June 30, 2014
|
$
|
—
|
|
|
$
|
(925
|
)
|
|
$
|
7,754
|
|
|
$
|
(331
|
)
|
|
$
|
(826
|
)
|
|
Fair Value Measurements Using Significant
Unobservable Inputs ( Level 3) Year to Date |
||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||
Description
|
Derivatives (net)
|
|
Unexercised Warrants
|
|
Residential MBS
|
|
Derivatives (net)
|
|
Unexercised Warrants
|
||||||||||
January 1, Balance
|
$
|
(127
|
)
|
|
$
|
(942
|
)
|
|
$
|
10,242
|
|
|
$
|
(573
|
)
|
|
$
|
(828
|
)
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
127
|
|
|
17
|
|
|
(22
|
)
|
|
242
|
|
|
2
|
|
|||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
229
|
|
|
—
|
|
|
—
|
|
|||||
Principal Payments
|
—
|
|
|
—
|
|
|
(833
|
)
|
|
—
|
|
|
—
|
|
|||||
Sales of Securities
|
—
|
|
|
—
|
|
|
(1,862
|
)
|
|
—
|
|
|
—
|
|
|||||
June 30, 2014
|
$
|
—
|
|
|
$
|
(925
|
)
|
|
$
|
7,754
|
|
|
$
|
(331
|
)
|
|
$
|
(826
|
)
|
Description
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Balance at June 30, 2014
|
|
|
|
|
|
|
|
||||||||
Loans(1)
|
$
|
13,516
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,516
|
|
Total Assets Measured at Fair Value
|
$
|
13,516
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,516
|
|
Balance at December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Loans(1)
|
$
|
14,880
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,880
|
|
OREO
|
3,684
|
|
|
—
|
|
|
—
|
|
|
3,684
|
|
||||
Total Assets Measured at Fair Value
|
$
|
18,564
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,564
|
|
(1)
|
Represents impaired loans, net of allowance for loan loss, which are included in loans.
|
|
|
|
||||
|
|
Valuation Techniques
|
|
Unobservable Input
|
|
Range of Inputs
|
Impaired Loans
|
|
Discounted cash flows and appraisal of collateral
|
|
Amount and timing of cash flows
|
|
No payment deferral to indefinite payment deferral
|
Discount Rate
|
|
4% to 9%
|
||||
Appraisal adjustments
|
|
10% to 35%
|
||||
Liquidation Expenses
|
|
10% to 15%
|
•
|
deterioration in economic conditions that could result in increased loan and lease losses;
|
•
|
inflation and interest rate levels, and market and monetary fluctuations;
|
•
|
changes in market interest rates and spreads, which could adversely affect our net interest income and profitability;
|
•
|
trade, monetary and fiscal policies and laws, including interest rate and income tax policies of the federal government;
|
•
|
growth and acquisition strategies;
|
•
|
applicable laws and regulations and legislative or regulatory changes, including the ultimate financial and operational burden of financial regulatory reform legislation;
|
•
|
our ability to attract new deposits and loans and leases;
|
•
|
competitive market pricing factors;
|
•
|
the effects of any adverse regulatory action;
|
•
|
our ability to raise capital or incur debt on reasonable terms;
|
•
|
the risks associated with lending and potential adverse changes in credit quality;
|
•
|
risks associated with concentrations in real estate-related loans;
|
•
|
declines in real estate values supporting loan collateral;
|
•
|
increased loan delinquency rates;
|
•
|
the timely development and acceptance of new products and services;
|
•
|
the willingness of customers to substitute competitors’ products and services for our products and services;
|
•
|
consolidation in the financial services industry in our markets, resulting in the creation of larger financial institutions who may have greater resources that could change the competitive landscape;
|
•
|
technological changes;
|
•
|
our ability to recruit and retain key management and staff;
|
•
|
changes in estimates and assumptions used in financial accounting;
|
•
|
our critical accounting policies and the implementation of such policies;
|
•
|
potential interruption or breach in security of our systems;
|
•
|
lower-than-expected revenue or cost savings or other issues in connection with mergers and acquisitions;
|
•
|
changes in consumer spending, saving and borrowing habits;
|
•
|
the strength of the United States economy in general and the strength of the local economies in which Intermountain conducts its operations;
|
•
|
stability of funding sources and continued availability of borrowings;
|
•
|
our success in gaining regulatory approvals, when required;
|
•
|
results of regulatory examinations that could restrict growth; and
|
•
|
our success at managing the risks involved in the foregoing.
|
|
6/30/2014
|
|
3/31/2014
|
|
12/31/2013
|
|
6/30/2013
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Total non-performing loans (“NPLs”)
|
$
|
3,420
|
|
|
$
|
4,518
|
|
|
$
|
2,668
|
|
|
$
|
4,799
|
|
OREO
|
3,684
|
|
|
3,768
|
|
|
3,684
|
|
|
4,512
|
|
||||
Total non-performing assets (“NPAs”)
|
$
|
7,104
|
|
|
$
|
8,286
|
|
|
$
|
6,352
|
|
|
$
|
9,311
|
|
Classified loans (1)
|
$
|
17,537
|
|
|
$
|
19,609
|
|
|
$
|
23,056
|
|
|
$
|
26,288
|
|
Troubled debt restructured loans (2)
|
$
|
9,365
|
|
|
$
|
9,866
|
|
|
$
|
10,047
|
|
|
$
|
11,791
|
|
Total allowance related to non-accrual loans
|
$
|
45
|
|
|
$
|
176
|
|
|
$
|
84
|
|
|
$
|
121
|
|
Interest income recorded on non-accrual loans (3)
|
$
|
78
|
|
|
$
|
45
|
|
|
$
|
187
|
|
|
$
|
119
|
|
Non-accrual loans as a percentage of net loans receivable
|
0.66
|
%
|
|
0.89
|
%
|
|
0.52
|
%
|
|
0.92
|
%
|
||||
Total non-performing loans as a % of net loans receivable
|
0.66
|
%
|
|
0.89
|
%
|
|
0.52
|
%
|
|
0.92
|
%
|
||||
Allowance for loan losses (“ALLL”) as a percentage of non-performing loans
|
224.7
|
%
|
|
172.8
|
%
|
|
288.1
|
%
|
|
167.6
|
%
|
||||
Total NPAs as a % of total assets (4)
|
0.77
|
%
|
|
0.91
|
%
|
|
0.68
|
%
|
|
1.00
|
%
|
||||
Total NPAs as a % of tangible capital + ALLL (“Texas Ratio”) (4)
|
6.66
|
%
|
|
7.99
|
%
|
|
6.25
|
%
|
|
7.69
|
%
|
||||
Loan delinquency ratio (30 days and over)
|
0.17
|
%
|
|
0.17
|
%
|
|
0.24
|
%
|
|
0.22
|
%
|
(1)
|
Classified loan totals are inclusive of non-performing loans and may also include troubled debt restructured loans, depending on the grading of these restructured loans.
|
(2)
|
Includes accruing restructured loans of $
8.5 million
and non-accruing restructured loans of $
889,000
as of June 30, 2014. No other funds are available for disbursement on restructured loans.
|
(3)
|
Interest income on non-accrual loans based on year-to-date interest totals
|
(4)
|
NPAs include both nonperforming loans and OREO
|
|
6/30/2014
|
|
3/31/2014
|
|
6/30/2013
|
||||||
|
(Dollars in thousands)
|
||||||||||
Commercial loans
|
$
|
2,205
|
|
|
$
|
2,966
|
|
|
$
|
1,417
|
|
Commercial real estate loans
|
75
|
|
|
163
|
|
|
2,728
|
|
|||
Land and land development loans
|
3,811
|
|
|
3,841
|
|
|
4,626
|
|
|||
Agriculture loans
|
206
|
|
|
611
|
|
|
276
|
|
|||
Residential real estate loans
|
804
|
|
|
702
|
|
|
173
|
|
|||
Consumer loans
|
3
|
|
|
3
|
|
|
91
|
|
|||
Total NPAs by Categories
|
$
|
7,104
|
|
|
$
|
8,286
|
|
|
$
|
9,311
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Commercial loans
|
$
|
6,548
|
|
|
37.3
|
%
|
|
$
|
7,520
|
|
|
32.6
|
%
|
Commercial real estate loans
|
3,836
|
|
|
21.9
|
|
|
3,659
|
|
|
15.9
|
|
||
Land and land development loans
|
812
|
|
|
4.6
|
|
|
1,041
|
|
|
4.5
|
|
||
Agriculture loans
|
3,374
|
|
|
19.2
|
|
|
4,038
|
|
|
17.5
|
|
||
Multifamily loans
|
—
|
|
|
—
|
|
|
3,751
|
|
|
16.3
|
|
||
Residential real estate loans
|
2,868
|
|
|
16.4
|
|
|
2,960
|
|
|
12.8
|
|
||
Consumer loans
|
99
|
|
|
0.6
|
|
|
87
|
|
|
0.4
|
|
||
Total classified loans
|
$
|
17,537
|
|
|
100.0
|
%
|
|
$
|
23,056
|
|
|
100.0
|
%
|
Other Income - Three Months Ended
|
June 30, 2014
|
|
June 30, 2013
|
|
Change
|
|
Percent
Change
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Fees and service charges
|
$
|
1,212
|
|
|
$
|
1,319
|
|
|
$
|
(107
|
)
|
|
(8
|
)%
|
Commissions & fees from trust & investment advisory services
|
557
|
|
|
645
|
|
|
(88
|
)
|
|
(14
|
)
|
|||
Loan related fee income
|
403
|
|
|
586
|
|
|
(183
|
)
|
|
(31
|
)
|
|||
Net gain on sale of securities
|
168
|
|
|
163
|
|
|
5
|
|
|
3
|
|
|||
Net (loss) gain on sale of other assets
|
4
|
|
|
2
|
|
|
2
|
|
|
100
|
|
|||
Other-than-temporary credit impairment on investment securities ("OTTI")
|
—
|
|
|
(21
|
)
|
|
21
|
|
|
(100
|
)
|
|||
Bank-owned life insurance
|
86
|
|
|
85
|
|
|
1
|
|
|
1
|
|
|||
Fair value adjustment on cash flow hedge
|
—
|
|
|
80
|
|
|
(80
|
)
|
|
(100
|
)
|
|||
Unexercised warrant liability fair value adjustment
|
123
|
|
|
(54
|
)
|
|
177
|
|
|
(328
|
)
|
|||
Other income
|
34
|
|
|
40
|
|
|
(6
|
)
|
|
(15
|
)
|
|||
Total
|
$
|
2,587
|
|
|
$
|
2,845
|
|
|
$
|
(258
|
)
|
|
(9
|
)%
|
Other Income - Six Months Ended
|
June 30, 2014
|
|
June 30, 2013
|
|
Change
|
|
Percent
Change
|
|
|||||||
|
(Dollars in thousands)
|
|
|||||||||||||
Fees and service charges
|
$
|
2,333
|
|
|
$
|
2,398
|
|
|
$
|
(65
|
)
|
|
(3
|
)%
|
|
Commissions & fees from trust & investment advisory services
|
1,098
|
|
|
1,172
|
|
|
(74
|
)
|
|
(6
|
)
|
|
|||
Loan related fee income
|
707
|
|
|
1,197
|
|
|
(490
|
)
|
|
(41
|
)
|
|
|||
Net gain on sale of securities
|
174
|
|
|
203
|
|
|
(29
|
)
|
|
(14
|
)
|
|
|||
Net (loss) gain on sale of other assets
|
8
|
|
|
6
|
|
|
2
|
|
|
33
|
|
|
|||
Other-than-temporary credit impairment on investment securities ("OTTI")
|
—
|
|
|
(63
|
)
|
|
63
|
|
|
(100
|
)
|
|
|||
Bank-owned life insurance
|
165
|
|
|
170
|
|
|
(5
|
)
|
|
(3
|
)
|
|
|||
Fair value adjustment on cash flow hedge
|
—
|
|
|
146
|
|
|
(146
|
)
|
|
(100
|
)
|
|
|||
Unexercised warrant liability fair value adjustment
|
17
|
|
|
2
|
|
|
15
|
|
|
750
|
|
|
|||
Other income
|
82
|
|
|
153
|
|
|
(71
|
)
|
|
(46
|
)
|
|
|||
Total
|
$
|
4,584
|
|
|
$
|
5,384
|
|
|
$
|
(800
|
)
|
|
(15
|
)%
|
|
Other Expense - Three Months Ended
|
June 30, 2014
|
|
June 30, 2013
|
|
Change
|
|
Percent
Change
|
|
|||||||
|
(Dollars in thousands)
|
|
|||||||||||||
Salaries and employee benefits
|
$
|
4,505
|
|
|
$
|
4,283
|
|
|
$
|
222
|
|
|
5
|
%
|
|
Occupancy expense
|
1,145
|
|
|
1,174
|
|
|
(29
|
)
|
|
(2
|
)
|
|
|||
Technology
|
874
|
|
|
925
|
|
|
(51
|
)
|
|
(6
|
)
|
|
|||
Advertising
|
136
|
|
|
180
|
|
|
(44
|
)
|
|
(24
|
)
|
|
|||
Fees and service charges
|
109
|
|
|
85
|
|
|
24
|
|
|
28
|
|
|
|||
Printing, postage and supplies
|
151
|
|
|
173
|
|
|
(22
|
)
|
|
(13
|
)
|
|
|||
Legal and accounting
|
422
|
|
|
484
|
|
|
(62
|
)
|
|
(13
|
)
|
|
|||
FDIC assessment
|
146
|
|
|
165
|
|
|
(19
|
)
|
|
(12
|
)
|
|
|||
OREO operations(1)
|
39
|
|
|
32
|
|
|
7
|
|
|
22
|
|
|
|||
Other expense
|
707
|
|
|
719
|
|
|
(12
|
)
|
|
(2
|
)
|
|
|||
Total
|
$
|
8,234
|
|
|
$
|
8,220
|
|
|
$
|
14
|
|
|
—
|
%
|
|
Other Expense - Six Months Ended
|
June 30, 2014
|
|
June 30, 2013
|
|
Change
|
|
Percent
Change
|
|
|||||||
|
(Dollars in thousands)
|
|
|||||||||||||
Salaries and employee benefits
|
$
|
8,381
|
|
|
$
|
8,458
|
|
|
$
|
(77
|
)
|
|
(1
|
)%
|
|
Occupancy expense
|
2,326
|
|
|
2,359
|
|
|
(33
|
)
|
|
(1
|
)
|
|
|||
Technology
|
1,696
|
|
|
1,801
|
|
|
(105
|
)
|
|
(6
|
)
|
|
|||
Advertising
|
285
|
|
|
294
|
|
|
(9
|
)
|
|
(3
|
)
|
|
|||
Fees and service charges
|
200
|
|
|
179
|
|
|
21
|
|
|
12
|
|
|
|||
Printing, postage and supplies
|
326
|
|
|
390
|
|
|
(64
|
)
|
|
(16
|
)
|
|
|||
Legal and accounting
|
825
|
|
|
812
|
|
|
13
|
|
|
2
|
|
|
|||
FDIC assessment
|
292
|
|
|
351
|
|
|
(59
|
)
|
|
(17
|
)
|
|
|||
OREO operations(1)
|
(24
|
)
|
|
143
|
|
|
(167
|
)
|
|
(117
|
)
|
|
|||
Other expense
|
1,363
|
|
|
1,611
|
|
|
(248
|
)
|
|
(15
|
)
|
|
|||
Total
|
$
|
15,670
|
|
|
$
|
16,398
|
|
|
$
|
(728
|
)
|
|
(4
|
)%
|
|
(1)
|
Amount includes expenses, chargedowns and gains and losses on sale of OREO
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Commercial loans
|
$
|
118,353
|
|
|
22.4
|
%
|
|
$
|
113,736
|
|
|
21.8
|
%
|
Commercial real estate loans
|
169,234
|
|
|
32.0
|
|
|
181,207
|
|
|
34.7
|
|
||
Commercial construction loans
|
12,293
|
|
|
2.3
|
|
|
7,383
|
|
|
1.4
|
|
||
Land and land development loans
|
34,216
|
|
|
6.5
|
|
|
28,946
|
|
|
5.5
|
|
||
Agriculture loans
|
105,545
|
|
|
20.0
|
|
|
96,584
|
|
|
18.5
|
|
||
Multifamily loans
|
13,310
|
|
|
2.5
|
|
|
18,205
|
|
|
3.5
|
|
||
Residential real estate loans
|
57,914
|
|
|
11.0
|
|
|
59,172
|
|
|
11.3
|
|
||
Residential construction loans
|
2,021
|
|
|
0.4
|
|
|
2,531
|
|
|
0.5
|
|
||
Consumer loans
|
8,860
|
|
|
1.7
|
|
|
9,033
|
|
|
1.7
|
|
||
Municipal loans
|
6,500
|
|
|
1.2
|
|
|
5,964
|
|
|
1.1
|
|
||
Total loans
|
528,246
|
|
|
100.0
|
%
|
|
522,761
|
|
|
100.0
|
%
|
||
Allowance for loan losses
|
(7,683
|
)
|
|
|
|
(7,687
|
)
|
|
|
||||
Deferred loan fees, net of direct origination costs
|
(283
|
)
|
|
|
|
(240
|
)
|
|
|
||||
Loans receivable, net
|
$
|
520,280
|
|
|
|
|
$
|
514,834
|
|
|
|
||
Weighted average interest rate
|
5.08
|
%
|
|
|
|
5.14
|
%
|
|
|
|
North Idaho —
Eastern
|
|
Magic
Valley
|
|
Greater
Boise
|
|
E. Oregon,
SW Idaho,
excluding
|
|
|
|
|
|
% of Loan
type to
total
|
|||||||||||||
Loan Portfolio by Location
|
Washington
|
|
Idaho
|
|
Area
|
|
Boise
|
|
Other
|
|
Total
|
|
Loans
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Commercial loans
|
$
|
80,344
|
|
|
$
|
6,063
|
|
|
$
|
9,583
|
|
|
$
|
18,686
|
|
|
$
|
3,677
|
|
|
$
|
118,353
|
|
|
22.4
|
%
|
Commercial real estate loans
|
118,130
|
|
|
9,004
|
|
|
9,373
|
|
|
16,312
|
|
|
16,415
|
|
|
169,234
|
|
|
32.0
|
|
||||||
Commercial construction loans
|
12,293
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,293
|
|
|
2.3
|
|
||||||
Land and land development loans
|
26,138
|
|
|
1,403
|
|
|
5,013
|
|
|
1,190
|
|
|
472
|
|
|
34,216
|
|
|
6.5
|
|
||||||
Agriculture loans
|
1,879
|
|
|
3,717
|
|
|
26,078
|
|
|
70,355
|
|
|
3,516
|
|
|
105,545
|
|
|
20.0
|
|
||||||
Multifamily loans
|
8,795
|
|
|
174
|
|
|
3,042
|
|
|
133
|
|
|
1,166
|
|
|
13,310
|
|
|
2.5
|
|
||||||
Residential real estate loans
|
41,175
|
|
|
3,535
|
|
|
4,176
|
|
|
6,905
|
|
|
2,123
|
|
|
57,914
|
|
|
11.0
|
|
||||||
Residential construction loans
|
2,021
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,021
|
|
|
0.4
|
|
||||||
Consumer loans
|
5,181
|
|
|
1,132
|
|
|
644
|
|
|
1,607
|
|
|
296
|
|
|
8,860
|
|
|
1.7
|
|
||||||
Municipal loans
|
5,203
|
|
|
1,297
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,500
|
|
|
1.2
|
|
||||||
Total
|
$
|
301,159
|
|
|
$
|
26,325
|
|
|
$
|
57,909
|
|
|
$
|
115,188
|
|
|
$
|
27,665
|
|
|
$
|
528,246
|
|
|
100.0
|
%
|
Percent of total loans in geographic area
|
57.0
|
%
|
|
5.0
|
%
|
|
11.0
|
%
|
|
22.0
|
%
|
|
5.0
|
%
|
|
100.0
|
%
|
|
|
|||||||
Percent of total loans where real estate is the primary collateral
|
69.6
|
%
|
|
57.2
|
%
|
|
51.1
|
%
|
|
36.0
|
%
|
|
72.9
|
%
|
|
59.8
|
%
|
|
|
|
North Idaho —
Eastern
|
|
Magic
Valley
|
|
Greater
Boise
|
|
E. Oregon,
SW Idaho,
excluding
|
|
|
|
|
|
% of Loan
type to
total
|
|||||||||||||
Loan Portfolio by Location
|
Washington
|
|
Idaho
|
|
Area
|
|
Boise
|
|
Other
|
|
Total
|
|
Loans
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Commercial loans
|
$
|
80,582
|
|
|
$
|
4,602
|
|
|
$
|
9,745
|
|
|
$
|
18,013
|
|
|
$
|
794
|
|
|
$
|
113,736
|
|
|
21.8
|
%
|
Commercial real estate loans
|
128,248
|
|
|
9,862
|
|
|
9,299
|
|
|
15,465
|
|
|
18,333
|
|
|
181,207
|
|
|
34.7
|
%
|
||||||
Commercial construction loans
|
7,028
|
|
|
—
|
|
|
317
|
|
|
—
|
|
|
38
|
|
|
7,383
|
|
|
1.4
|
%
|
||||||
Land and land development loans
|
20,397
|
|
|
1,378
|
|
|
5,344
|
|
|
1,203
|
|
|
624
|
|
|
28,946
|
|
|
5.5
|
%
|
||||||
Agriculture loans
|
2,003
|
|
|
3,440
|
|
|
26,143
|
|
|
61,034
|
|
|
3,964
|
|
|
96,584
|
|
|
18.5
|
%
|
||||||
Multifamily loans
|
12,431
|
|
|
149
|
|
|
4,420
|
|
|
30
|
|
|
1,175
|
|
|
18,205
|
|
|
3.5
|
%
|
||||||
Residential real estate loans
|
42,141
|
|
|
3,365
|
|
|
4,244
|
|
|
7,046
|
|
|
2,376
|
|
|
59,172
|
|
|
11.3
|
%
|
||||||
Residential construction loans
|
2,337
|
|
|
—
|
|
|
77
|
|
|
117
|
|
|
—
|
|
|
2,531
|
|
|
0.5
|
%
|
||||||
Consumer loans
|
5,400
|
|
|
1,149
|
|
|
730
|
|
|
1,506
|
|
|
248
|
|
|
9,033
|
|
|
1.7
|
%
|
||||||
Municipal loans
|
4,627
|
|
|
1,337
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,964
|
|
|
1.1
|
%
|
||||||
Total
|
$
|
305,194
|
|
|
$
|
25,282
|
|
|
$
|
60,319
|
|
|
$
|
104,414
|
|
|
$
|
27,552
|
|
|
$
|
522,761
|
|
|
100.0
|
%
|
Percent of total loans in geographic area
|
58.4
|
%
|
|
4.8
|
%
|
|
11.5
|
%
|
|
20.0
|
%
|
|
5.3
|
%
|
|
100.0
|
%
|
|
|
|||||||
Percent of total loans where real estate is the primary collateral
|
70.1
|
%
|
|
62.7
|
%
|
|
52.1
|
%
|
|
39.6
|
%
|
|
85.8
|
%
|
|
62.4
|
%
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Commercial loans
|
$
|
11,404
|
|
|
$
|
16,209
|
|
|
(29.6
|
)%
|
|
$
|
19,126
|
|
|
$
|
23,168
|
|
|
(17.4
|
)%
|
Commercial real estate loans
|
2,121
|
|
|
18,995
|
|
|
(88.8
|
)
|
|
3,249
|
|
|
22,119
|
|
|
(85.3
|
)
|
||||
Commercial construction loans
|
1,825
|
|
|
1,257
|
|
|
45.2
|
|
|
3,412
|
|
|
6,641
|
|
|
(48.6
|
)
|
||||
Land and land development loans
|
6,326
|
|
|
2,000
|
|
|
216.3
|
|
|
7,462
|
|
|
2,203
|
|
|
238.7
|
|
||||
Agriculture loans
|
9,137
|
|
|
10,229
|
|
|
(10.7
|
)
|
|
21,747
|
|
|
19,096
|
|
|
13.9
|
|
||||
Multifamily loans
|
—
|
|
|
—
|
|
|
—
|
|
|
330
|
|
|
—
|
|
|
100.0
|
|
||||
Residential real estate loans
|
10,925
|
|
|
20,782
|
|
|
(47.4
|
)
|
|
20,658
|
|
|
36,234
|
|
|
(43.0
|
)
|
||||
Residential construction loans
|
2,219
|
|
|
887
|
|
|
150.2
|
|
|
2,603
|
|
|
1,493
|
|
|
74.3
|
|
||||
Consumer loans
|
951
|
|
|
873
|
|
|
8.9
|
|
|
1,218
|
|
|
1,640
|
|
|
(25.7
|
)
|
||||
Municipal loans
|
747
|
|
|
220
|
|
|
239.5
|
|
|
1,058
|
|
|
377
|
|
|
180.6
|
|
||||
Total loans originated
|
$
|
45,655
|
|
|
$
|
71,452
|
|
|
(36.1
|
)%
|
|
$
|
80,863
|
|
|
$
|
112,971
|
|
|
(28.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewed loans
|
$
|
55,733
|
|
|
$
|
59,441
|
|
|
(6.2
|
)%
|
|
$
|
105,358
|
|
|
$
|
104,869
|
|
|
0.5
|
%
|
|
2014
|
|
2013
|
||||
|
(Dollars in thousands)
|
||||||
Balance, beginning of period, January 1
|
$
|
3,684
|
|
|
$
|
4,951
|
|
Additions to OREO
|
84
|
|
|
394
|
|
||
Proceeds from sale of OREO
|
(83
|
)
|
|
(817
|
)
|
||
Valuation Adjustments in the period(1)
|
(1
|
)
|
|
(16
|
)
|
||
Balance, end of period, June 30
|
$
|
3,684
|
|
|
$
|
4,512
|
|
(1)
|
Amount includes chargedowns and gains/losses on sale of OREO
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||
|
Amount
|
|
% of total deposits
|
|
Amount
|
|
% of total deposits
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Non-interest bearing demand accounts
|
$
|
234,869
|
|
|
33.8
|
%
|
|
$
|
235,793
|
|
|
33.4
|
%
|
Interest bearing demand accounts
|
101,477
|
|
|
14.6
|
|
|
102,629
|
|
|
14.6
|
|
||
Money market 0.0% to 2.00%
|
213,514
|
|
|
30.9
|
|
|
215,458
|
|
|
30.5
|
|
||
Savings and IRA 0.0% to 4.91%
|
67,528
|
|
|
9.7
|
|
|
68,555
|
|
|
9.7
|
|
||
Certificate of deposit accounts (CDs)
|
30,785
|
|
|
4.4
|
|
|
34,178
|
|
|
4.8
|
|
||
Jumbo CDs
|
45,715
|
|
|
6.6
|
|
|
49,437
|
|
|
7.0
|
|
||
Total deposits
|
$
|
693,888
|
|
|
100.0
|
%
|
|
$
|
706,050
|
|
|
100.0
|
%
|
Weighted average interest rate on certificates of deposit
|
|
|
1.09
|
%
|
|
|
|
1.19
|
%
|
||||
Core Deposits as a percentage of total deposits (1)
|
|
|
93.4
|
%
|
|
|
|
93.0
|
%
|
||||
Deposits generated from the Company’s market area as a % of total deposits
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
(1)
|
Core deposits consist of non-interest and interest bearing demand accounts, money market accounts, savings accounts, and certificate of deposit accounts of less than $100,000 (excluding public deposits).
|
|
6/30/2014
|
|
% of total deposits
|
|
12/31/2013
|
|
% of total deposits
|
||||||
Deposits by Location
|
|||||||||||||
North Idaho — Eastern Washington
|
$
|
350,371
|
|
|
50.5
|
%
|
|
$
|
359,655
|
|
|
51.1
|
%
|
Magic Valley Idaho
|
66,504
|
|
|
9.6
|
|
|
65,634
|
|
|
9.3
|
|
||
Greater Boise Area
|
67,140
|
|
|
9.7
|
|
|
70,182
|
|
|
9.9
|
|
||
Southwest Idaho — Oregon, excluding Boise
|
163,901
|
|
|
23.6
|
|
|
167,496
|
|
|
23.7
|
|
||
Administration, Secured Savings
|
45,972
|
|
|
6.6
|
|
|
43,083
|
|
|
6.0
|
|
||
Total
|
$
|
693,888
|
|
|
100.0
|
%
|
|
$
|
706,050
|
|
|
100.0
|
%
|
|
|
2014
|
|
|
|
2013
|
|
|
12 Month Cumulative% effect on NII
|
|
Policy Limit %
|
|
6/30/2014
|
|
Policy Limit %
|
|
6/30/2013
|
+100bp
|
|
+5.0 to -3.0
|
|
0.45%
|
|
+5.0 to -3.0
|
|
0.47%
|
+300bp
|
|
+10.0 to -8.0
|
|
3.14%
|
|
+10.0 to -8.0
|
|
2.97%
|
−100bp
|
|
+5.0 to -3.0
|
|
(5.46)%
|
|
+5.0 to -3.0
|
|
(5.01)%
|
–300bp
|
|
-10.0 to -8.0
|
|
N/A
|
|
-10.0 to -8.0
|
|
N/A
|
|
|
|
|
|
|
|
|
|
24 Month Cumulative% effect on NII
|
|
Policy Limit %
|
|
6/30/2014
|
|
Policy Limit %
|
|
6/30/2013
|
+100bp
|
|
+8.0% to -6.0%
|
|
1.77%
|
|
+8.0% to -6.0%
|
|
1.75%
|
+300bp
|
|
+20.0% to -15.0%
|
|
4.81%
|
|
+20.0% to -15.0%
|
|
5.46%
|
−100bp
|
|
+8.0% to -6.0%
|
|
(8.13)%
|
|
+8.0% to -6.0%
|
|
(7.61)%
|
–300bp
|
|
+20.0% to -15.0%
|
|
N/A
|
|
+20.0% to -15.0%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Well-Capitalized
|
|||||||||||
|
Actual
|
|
Capital Requirements
|
|
Requirements
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Total capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The Company
|
$
|
103,481
|
|
|
17.29
|
%
|
|
$
|
47,892
|
|
|
8
|
%
|
|
$
|
59,865
|
|
|
10
|
%
|
Panhandle State Bank
|
103,800
|
|
|
17.31
|
%
|
|
47,975
|
|
|
8
|
%
|
|
59,968
|
|
|
10
|
%
|
|||
Tier I capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The Company
|
95,995
|
|
|
16.04
|
%
|
|
23,946
|
|
|
4
|
%
|
|
35,919
|
|
|
6
|
%
|
|||
Panhandle State Bank
|
96,301
|
|
|
16.06
|
%
|
|
23,987
|
|
|
4
|
%
|
|
35,981
|
|
|
6
|
%
|
|||
Tier I capital (to average assets):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The Company
|
95,995
|
|
|
10.67
|
%
|
|
35,978
|
|
|
4
|
%
|
|
44,972
|
|
|
5
|
%
|
|||
Panhandle State Bank
|
96,301
|
|
|
10.71
|
%
|
|
35,983
|
|
|
4
|
%
|
|
44,979
|
|
|
5
|
%
|
Item 1.
|
LEGAL PROCEEDINGS
|
Item 1A.
|
RISK FACTORS
|
|
|
|
|
|
|
|
INTERMOUNTAIN COMMUNITY BANCORP
(Registrant)
|
||
|
|
|
|
|
August 8, 2014
|
|
By:
|
|
/s/ Curt Hecker
|
Date
|
|
|
|
Curt Hecker
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
August 8, 2014
|
|
By:
|
|
/s/ Doug Wright
|
Date
|
|
|
|
Doug Wright
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
1 Year (MM) Chart |
1 Month (MM) Chart |
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