Document And Entity Information
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Document And Entity Information
6 Months Ended
Jun. 30, 2012
Aug. 13, 2012
Document And Entity Information [Abstract]    
Entity Registrant Name HCSB FINANCIAL CORP  
Entity Central Index Key 0001091491  
Document Type 10-Q  
Document Period End Date Jun. 30, 2012  
Amendment Flag false  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   3,738,337

Condensed Consolidated Balance Sheets
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Condensed Consolidated Balance Sheets (USD $)
Jun. 30, 2012
Dec. 31, 2011
Assets:    
Cash and due from banks $ 34,181,000 $ 33,672,000
Securities available-for-sale 116,735,000 100,207,000
Nonmarketable equity securities 2,426,000 3,975,000
Total investment securities 119,161,000 104,182,000
Loans receivable 336,787,000 366,995,000
Less allowance for loan losses (18,446,000) (21,178,000)
Loans, net 318,341,000 345,817,000
Premises and equipment, net 22,095,000 22,514,000
Accrued interest receivable 2,590,000 2,776,000
Cash value of life insurance 10,470,000 10,285,000
Other real estate owned 23,147,000 15,665,000
Other assets 1,044,000 787,000
Total assets 531,029,000 535,698,000
Liabilities and Shareholders' Equity    
Noninterest-bearing transaction accounts 37,511,000 37,029,000
Interest-bearing transaction accounts 40,485,000 44,989,000
Money market savings accounts 102,796,000 124,987,000
Other savings accounts 7,778,000 7,615,000
Time deposits $100,000 and over 166,389,000 131,561,000
Other time deposits 126,513,000 144,672,000
Total deposits 481,472,000 490,853,000
Repurchase Agreements 10,803,000 7,492,000
Advances from the Federal Home Loan Bank 22,000,000 22,000,000
Subordinated debentures 12,062,000 12,062,000
Junior subordinated debentures 6,186,000 6,186,000
Accrued interest payable 1,543,000 1,015,000
Other liabilities 1,533,000 1,306,000
Total liabilities 535,599,000 540,914,000
Shareholders' Equity    
Preferred stock, $1,000 par value. Authorized 5,000,000 shares; issued and outstanding 12,895 at June 30, 2012 and December 31, 2011 12,463,000 12,355,000
Common stock, $.01 par value; 10,000,000 and 500,000,000 shares authorized at December 31, 2011 and June 30, 2012, respectively, 3,738,337 shares issued and outstanding at June 30, 2012 and December 31, 2011 37,000 37,000
Capital surplus 30,224,000 30,224,000
Common stock warrants 1,012,000 1,012,000
Accumulated deficit (47,682,000) (46,033,000)
Accumulated other comprehensive loss (624,000) (2,811,000)
Total shareholders' equity (4,570,000) (5,216,000)
Total liabilities and shareholders' equity $ 531,029,000 $ 535,698,000

Condensed Consolidated Balance Sheets (Parenthetical)
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]    
Time deposits, face value $ 100,000 $ 100,000
Preferred stock, par value $ 1,000 $ 1,000
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 12,895 12,895
Preferred stock, shares outstanding 12,895 12,895
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 500,000,000 10,000,000
Common stock, shares issued 3,738,337 3,738,337
Common stock, shares outstanding 3,738,337 3,738,337

Condensed Consolidated Statements Of Operations
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Condensed Consolidated Statements Of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Interest income        
Loans, including fees $ 4,311 $ 5,395 $ 8,993 $ 11,065
Investment securities:        
Taxable 746 1,049 1,473 2,731
Tax-exempt 87 195 190 411
Nonmarketable equity securities 16 16 27 24
Other interest income 21 15 41 29
Total 5,181 6,670 10,724 14,260
Interest expense:        
Certificates of deposit $100M and over 360 528 710 1,193
Other deposits 634 1,026 1,344 2,297
Other interest expense 560 740 1,121 1,785
Total 1,554 2,294 3,175 5,275
Net interest income 3,627 4,376 7,549 8,985
Provision for loan losses 2,052 9,065 3,370 17,615
Net interest income (loss) after provision for loan losses 1,575 (4,689) 4,179 (8,630)
Noninterest income:        
Service charges on deposit accounts 277 343 558 680
Credit life insurance commission 5 4 11 11
Gain on sale of securities available-for-sale 401 746 473 2,561
Gain on sale of mortgage loans 40 169 90 324
Other fees and commissions 125 120 227 213
Brokerage commissions 9 135 46 202
Income from cash value life insurance 118 122 233 238
Net gain on sale of assets   3 170 3
Other operating income 65 27 103 52
Total 1,040 1,669 1,911 4,284
Noninterest expense:        
Salaries and employee benefits 1,597 1,912 3,257 3,886
Net occupancy expense 298 313 606 621
Furniture and equipment expense 313 349 614 677
Marketing expense 6 34 15 94
Prepayment penalties on FHLB advances   1,242   2,554
FDIC insurance premiums 482 725 873 1,248
Net cost of operations of other real estate owned 351 477 688 1,496
Other operating expenses 853 897 1,578 1,723
Total 3,900 5,949 7,631 12,299
Loss before income taxes (1,285) (8,969) (1,541) (16,645)
Income tax benefit   4,998   4,998
Net loss (1,285) (13,967) (1,541) (21,643)
Preferred dividends accrued 162 161 325 323
Net loss available to common shareholders (1,501) (14,179) (1,974) (22,066)
Basic loss per share $ (0.40) $ (3.78) $ (0.53) $ (5.89)
Diluted loss per share $ (0.40) $ (3.78) $ (0.53) $ (5.89)
Preferred Stock [Member]
       
Noninterest expense:        
Accretion of preferred stock to redemption value $ 54 $ 51 $ 108 $ 100

Condensed Consolidated Statements Of Operations (Parenthetical)
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Condensed Consolidated Statements Of Operations (Parenthetical) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Condensed Consolidated Statements Of Operations [Abstract]    
Certificates of deposit $ 100 $ 100

Condensed Consolidated Statements Of Comprehensive Income (Loss)
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Condensed Consolidated Statements Of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Statement of Other Comprehensive Income [Abstract]        
Net loss $ (1,285) $ (13,967) $ (1,541) $ (21,643)
Other comprehensive income (loss):        
Unrealized holding gains arising during the period, pretax 1,063 1,686 1,851 1,349
Tax expense   (624)   (499)
Reclassification to realized gains (401) (746) (473) (2,561)
Tax expense   276   948
Write-down of deferred tax asset on AFS securities 389   809  
Other comprehensive income 1,051 592 2,187 (763)
Comprehensive income (loss) $ (234) $ (13,375) $ 646 $ (22,406)

Condensed Consolidated Statements Of Shareholders' Equity
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Condensed Consolidated Statements Of Shareholders' Equity (USD $)
In Thousands, except Share data
Common Stock [Member]
Common Stock Warrants [Member]
Preferred Stock [Member]
Nonvested Restricted Stock [Member]
Capital Surplus [Member]
Retained Earnings (Deficit) [Member]
Accumulated Other Comprehensive Income [Member]
Total
Beginning Balance at Dec. 31, 2010 $ 38 $ 1,012 $ 12,152 $ (564) $ 30,787 $ (16,813) $ (113) $ 26,499
Beginning Balance, shares at Dec. 31, 2010 3,780,845   12,895          
Comprehensive income (loss)           (21,643) (763) (22,406)
Accretion of preferred stock to redemption value     100     (100)    
Termination of employee stock option plans (1)     564 (563)      
Termination of employee stock option plans, shares (42,508)              
Ending Balance at Jun. 30, 2011 37 1,012 12,252   30,224 (38,556) (876) 4,093
Ending Balance, shares at Jun. 30, 2011 3,738,337   12,895          
Beginning Balance at Mar. 31, 2011                
Comprehensive income (loss)               (13,375)
Accretion of preferred stock to redemption value     51          
Ending Balance at Jun. 30, 2011   1,012 12,252         4,093
Ending Balance, shares at Jun. 30, 2011     12,895          
Beginning Balance at Dec. 31, 2011 37 1,012 12,355   30,224 (46,033) (2,811) (5,216)
Beginning Balance, shares at Dec. 31, 2011 3,738,337   12,895          
Comprehensive income (loss)           (1,541) 2,187 646
Accretion of preferred stock to redemption value     108     (108)    
Ending Balance at Jun. 30, 2012 37 1,012 12,463   30,224 (47,682) (624) (4,570)
Ending Balance, shares at Jun. 30, 2012 3,738,337   12,895          
Beginning Balance at Mar. 31, 2012                
Comprehensive income (loss)               (234)
Accretion of preferred stock to redemption value     54          
Ending Balance at Jun. 30, 2012 $ 37 $ 1,012 $ 12,463   $ 30,224     $ (4,570)
Ending Balance, shares at Jun. 30, 2012 3,738,337   12,895          

Condensed Consolidated Statements Of Cash Flows
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Condensed Consolidated Statements Of Cash Flows (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities:    
Net loss $ (1,541,000) $ (21,643,000)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 466,000 517,000
Deferred income tax benefit   4,862,000
Provision for loan losses 3,370,000 17,615,000
Amortization less accretion on investments (218,000) 94,000
Amortization of deferred loan costs 26,000 11,000
Net gain on sale of securities available-for-sale (473,000) (2,561,000)
Loss on sale of other real estate owned 141,000 244,000
Gain on sale of other assets (170,000) (3,000)
Impairment loss on assets held for resale 19,000  
Writedowns of other real estate owned   789,000
Increase (decrease) in interest payable 528,000 (252,000)
Decrease in interest receivable 186,000 1,423,000
(Increase) decrease in other assets (307,000) 2,114,000
Income (net of mortality cost) on cash value of life insurance (185,000) (195,000)
Increase (decrease) in other liabilities 227,000 (50,000)
Net cash provided by operating activities 2,069,000 2,965,000
Cash flows from investing activities:    
Decrease in loans to customers 13,951,000 16,607,000
Purchases of securities available-for-sale (57,905,000) (514,000)
Maturities and calls of securities available-for-sale 30,576,000 20,052,000
Proceeds from sale of other real estate owned 2,506,000 7,144,000
Proceeds from sales of securities available-for-sale 13,679,000 164,431,000
Proceeds from sale of other assets 220,000  
Proceeds from sale of fixed assets 1,000  
Redemptions of nonmarketable equity securities 1,549,000 253,000
Purchases of premises and equipment (67,000) (129,000)
Net cash provided by investing activiities 4,510,000 207,844,000
Cash flows from financing activities:    
Net increase (decrease) in demand deposits and savings 7,288,000 (38,037,000)
Net decrease in time deposits (16,669,000) (75,404,000)
Net decrease in FHLB borrowings   (82,200,000)
Net increase in repurchase agreements 3,311,000 5,098,000
Net cash (used) by financing activities (6,070,000) (190,543,000)
Net increase in cash and cash equivalents 509,000 20,266,000
Cash and cash equivalents, beginning of period 33,672,000 19,562,000
Cash and cash equivalents, end of period 34,181,000 39,828,000
Cash paid during the period for:    
Income taxes      
Interest $ 2,647,000 $ 5,527,000

Basis Of Presentation
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Basis Of Presentation
6 Months Ended
Jun. 30, 2012
Basis Of Presentation [Abstract]  
Basis Of Presentation

NOTE 1 – BASIS OF PRESENTATION

HCSB Financial Corporation (the "Company," which may be referred to as "we," "us," or "our") was incorporated on June 10, 1999 to become a holding company for Horry County State Bank (the "Bank"). The Bank is a state chartered bank which commenced operations on January 4, 1988. From our 11 branch locations, we offer a full range of deposit services, including checking accounts, savings accounts, certificates of deposit, money market accounts, and IRAs, as well as a broad range of non-deposit investment services.

HCSB Financial Trust I (the "Trust") is a special purpose subsidiary organized for the sole purpose of issuing trust preferred securities. The operations of the Trust have not been consolidated in these financial statements.

The accompanying consolidated financial statements have been prepared in accordance with the requirements for interim financial statements and, accordingly, they are condensed and omit disclosures, which would substantially duplicate those contained in the most recent annual report to shareholders. The financial statements as of June 30, 2012 and for the interim periods ended June 30, 2012 and 2011 are unaudited and, in our opinion, include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. The financial information as of December 31, 2011 has been derived from the audited financial statements as of that date. For further information, refer to the financial statements and the notes included in HCSB Financial Corporation's 2011 Annual Report which was filed with the Securities and Exchange Commission (the "SEC") on March 23, 2012.

On March 6, 2009, as part of the Troubled Asset Relief Program (the "TARP") Capital Purchase Program (the "CPP") established by the U.S. Department of the Treasury (the "U.S. Treasury") under the Emergency Economic Stabilization Act of 2009 (the "EESA"), the Company issued and sold to the U.S. Treasury (i) 12,895 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series T, having a liquidation preference of $1,000 per share (the "Series T Preferred Stock"), and (ii) a ten-year warrant to purchase up to 91,714 shares of its common stock at an initial exercise price of $21.09 per share (the "CPP Warrant"), for an aggregate purchase price of $12,895,000 in cash. Refer to the accompanying Management's Discussion and Analysis of Financial Condition and results of Operations for additional information.

As of February, 2011, the Federal Reserve Bank of Richmond, the Company's primary federal regulatory, has required the Company to defer dividend payments on the 12,895 shares of the Series T Preferred Stock issued to the U.S. Treasury in March 2009 pursuant to the CPP and interest payments on the $6,000,000 of trust preferred securities issued in December 2004. Therefore, for each quarterly period beginning in February 2011, the Company notified the U.S. Treasury of its deferral of quarterly dividend payments on the 12,895 shares of Series T Preferred Stock and also informed the Trustee of the $6,000,000 of trust preferred securities of its deferral of the quarterly interest payments. The amount of each of the Company's quarterly interest payments was $161,000 and, as of June 30, 2012, the Company had $966,000 of deferred dividend payments due on the Series T Preferred Stock issued to the U.S. Treasury. Because the Company has deferred these six payments, the Company is prohibited from paying any dividends on its common stock until all deferred payments have been made in full. In addition, whenever dividends payable on the shares of the Series T Preferred Stock have been deferred for an aggregate of six or more quarterly dividend periods, the holders of the preferred stock have the right to elect two directors to fill newly created directorships at the Company's next annual meeting of the shareholders. As a result of the Company's deferral of dividend payments on the Series T Preferred Stock, the U.S. Treasury, the current holder of all 12,895 shares of the Series T Preferred Stock, requested the Company's non-objection to appoint a representative to observe monthly meetings of the Company's Board of Directors. The Company granted the Treasury's request and, beginning in June of 2012, a representative of Treasury has attended the Company's monthly board meetings. As a result of the Company's financial condition and these restrictions on the Company, including the restrictions on the Bank's ability to pay dividends to the Company, there was no stock dividend declared on the Company's common stock in 2010, 2011, or the first six months of 2012.


Basis Of Presentation (Details)
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Basis Of Presentation (Details) (USD $)
1 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended
Feb. 28, 2011
Jun. 30, 2012
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Jun. 30, 2012
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Dec. 31, 2011
Mar. 06, 2009
Series T Preferred Stock [Member]
Mar. 06, 2009
CPP Warrant [Member]
Class of Stock [Line Items]            
Number of branch locations   11 11      
Fixed Rate Cumulative Perpetual Preferred Stock, Series T, shares issued to U.S. Treasury   12,895 12,895 12,895 12,895  
Fixed Rate Cumulative Perpetual Preferred Stock, Series T, Liquidation preference (per share)         $ 1,000  
Purchase program, warrant term           10 years
Maximum number of common stock shares purchased under ten-year warrant           91,714
Common stock, initial exercise price           $ 21.09
Aggregate purchase price of Fixed Rate Cumulative Perpetual Preferred Stock, Series T   $ 12,463,000 $ 12,463,000 $ 12,355,000 $ 12,895,000  
Proceeds on trust preferred securities 6,000,000          
Quarterly interest payments on trust preferred securities   161,000        
Accrued dividend payments due on Series T Preferred Stock     $ 966,000      

Regulatory Matters And Going Concern Considerations
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Regulatory Matters And Going Concern Considerations
6 Months Ended
Jun. 30, 2012
Regulatory Matters And Going Concern Considerations [Abstract]  
Regulatory Matters And Going Concern Considerations

NOTE 2 – REGULATORY MATTERS AND GOING CONCERN CONSIDERATIONS

Consent Order with the Federal Deposit Insurance Corporation and South Carolina Board of Financial Institutions

On February 10, 2011, the Bank entered into a Consent Order (the "Consent Order") with the Federal Deposit Insurance Corporation (the "FDIC") and the South Carolina Board of Financial Institutions (the "State Board"). The Consent Order conveys specific actions needed to address the Bank's current financial condition, primarily related to capital planning, liquidity/funds management, policy and planning issues, management oversight, loan

concentrations and classifications, and non-performing loans. A summary of the requirements of the Consent Order and the Bank's status on complying with the Consent Order is as follows:

 

Requirements of the Consent Order Bank's Compliance Status
Achieve and maintain, by July 10, 2011, Total Risk
Based capital at least equal to 10% of risk-weighted
assets and Tier 1 capital at least equal to 8% of total
assets.

The Bank did not meet the capital ratios as specified in
the Consent Order and, as a result, submitted a revised
capital restoration plan to the FDIC on July 15, 2011.
The revised capital restoration plan was determined by
the FDIC to be insufficient and, as a result, we submitted
a further revised capital restoration plan to the FDIC on
September 30, 2011. We received the FDIC's non-
objection to the further revised capital restoration plan
on December 6, 2011.

The Bank is working diligently to increase its capital
ratios in order to strengthen its balance sheet and satisfy
the commitments required under the Consent Order.
The Bank has engaged independent third parties to assist
the Bank in its efforts to increase its capital ratios. In
addition to continuing to search for additional capital,
the Bank is also searching for a potential merger partner.
While the Bank is pursuing both of these approaches
simultaneously, though given the lack of a market for
bank mergers, particularly in the Southeast, as a result of
the current economic and regulatory climate,
management believes that in the short-term the more
realistic opportunity will be to raise additional capital.

Submit, by April 11, 2011, a written capital plan to the
supervisory authorities.
We believe we have complied with this provision of the
Consent Order.
Establish, by March 12, 2011, a plan to monitor
compliance with the Consent Order, which shall be
monitored by the Bank's Directors' Committee.
We believe we have complied with this provision of the
Consent Order. The Directors' Committee meets
monthly and each meeting includes reviews and
discussions of all areas required in the Consent Order.
Develop, by May 11, 2011, a written analysis and
assessment of the Bank's management and staffing
needs.
We believe we have complied with this provision of the
Consent Order. In 2011, the Bank engaged an
independent third party to perform an assessment of the
Bank's staffing needs to ensure the Bank has an
appropriate organizational structure with qualified
management in place. The Board of Directors has
reviewed all recommendations regarding the Bank's
organizational structure.
Notify the supervisory authorities in writing of the
resignation or termination of any of the Bank's directors
or senior executive officers.
We believe we have complied with this provision of the
Consent Order.
Eliminate, by March 12, 2011, by charge-off or
collection, all assets or portions of assets classified
"Loss" and 50% of those assets classified "Doubtful."
We believe we have complied with this provision of the
Consent Order.
Review and update, by April 11, 2011, its policy to
ensure the adequacy of the Bank's allowance for loan
and lease losses, which must provide for a review of the
Bank's allowance for loan and lease losses at least once
each calendar quarter.
We believe we have complied with this provision of the
Consent Order.

Submit, by April 11, 2011, a written plan to the
supervisory authorities to reduce classified assets, which
shall include, among other things, a reduction of the
Bank's risk exposure in relationships with assets in
excess of $750,000 which are criticized as
"Substandard" or "Doubtful".
 

We believe we have complied with this provision of the
Consent Order.
Revise, by April 11, 2011, its policies and procedures
for managing the Bank's Adversely Classified Other
Real Estate Owned.
 
We believe we have complied with this provision of the
Consent Order.
Not extend any additional credit to any borrower who
has a loan or other extension of credit from the Bank that
has been charged-off or classified, in whole or in part,
"Loss" or "Doubtful" and is uncollected. In addition, the
Bank may not extend any additional credit to any
borrower who has a loan or other extension of credit
from the Bank that has been criticized, in whole or in
part, "Substandard" and is uncollected, unless the
Bank's board of directors determines that failure to
extend further credit to a particular borrower would be
detrimental to the best interests of the Bank.
 
We believe we have complied with this provision of the
Consent Order. In the second quarter of 2010, the Bank
engaged the services of an independent firm to perform
an extensive review of the Bank's credit portfolio and
help management implement a more comprehensive
lending and collection policy and more enhanced loan
review.
Perform, by April 11, 2011, a risk segmentation analysis
with respect to the Bank's Concentrations of Credit and
develop a written plan to systematically reduce any
segment of the portfolio that is an undue concentration
of credit.
 
We believe we have complied with this provision of the
Consent Order.
Review, by April 11, 2011 and annually thereafter, the
Bank's loan policies and procedures for adequacy and,
based upon this review, make all appropriate revisions to
the policies and procedures necessary to enhance the
Bank's lending functions and ensure their
implementation.
 
We believe we have complied with this provision of the
Consent Order. As noted above, the Bank engaged the
services of an independent firm to perform an extensive
review of the Bank's credit portfolio and help
management implement a more comprehensive lending
and collection policy and more enhanced loan review.
Adopt, by May 11, 2011, an effective internal loan
review and grading system to provide for the periodic
review of the Bank's loan portfolio in order to identify
and categorize the Bank's loans, and other extensions of
credit which are carried on the Bank's books as loans, on
the basis of credit quality.
 
We believe we have complied with this provision of the
Consent Order. As noted above, the Bank engaged the
services of an independent firm to perform an extensive
review of the Bank's credit portfolio and help
management implement a more comprehensive lending
and collection policy and more enhanced loan review.
Review and update, by May 11, 2011, its written profit
plan to ensure the Bank has a realistic, comprehensive
budget for all categories of income and expense, which
must address, at minimum, goals and strategies for
improving and sustaining the earnings of the Bank, the
major areas in and means by which the Bank will seek to
improve the Bank's operating performance, realistic and
comprehensive budgets, a budget review process to
monitor income and expenses of the Bank to compare
actual figure with budgetary projections, the operating
assumptions that form the basis for and adequately
support major projected income and expense
components of the plan, and coordination of the Bank's
loan, investment, and operating policies and budget and
profit planning with the funds management policy.
 
We believe we have complied with this provision of the
Consent Order. The Bank has engaged an independent
third party to assist management with a strategic plan to
help restructure its balance sheet, increase capital ratios,
return to profitability and maintain adequate liquidity.
Review and update, by May 11, 2011, its written plan
addressing liquidity, contingent funding, and asset
liability management.
We believe we have complied with this provision of the
Consent Order. In 2011, the Bank engaged an
independent third party to assist management in its
development of a strategic plan that achieves all
requirements of the Consent Order. The strategic plan
reflects the Bank's plans to restructure its balance sheet,
increase capital ratios, return to profitability, and
maintain adequate liquidity. The Board of Directors has
reviewed and adopted the Bank's strategic plan.
 
Eliminate, by March 12, 2011, all violations of law and
regulation or contraventions of policy set forth in the
FDIC's safety and soundness examination of the Bank in
November 2009.
 
We believe we have complied with this provision of the
Consent Order.
Not accept, renew, or rollover any brokered deposits
unless it is in compliance with the requirements of 12
C.F.R. § 337.6(b).
 
Since entering into the Consent Order, the Bank has not
accepted, renewed, or rolled-over any brokered deposits.
Limit asset growth to 5% per annum. We believe we have complied with this provision of the
Consent Order.
 
Not declare or pay any dividends or bonuses or make
any distributions of interest, principal, or other sums on
subordinated debentures without the prior approval of
the supervisory authorities.
 
We believe we have complied with this provision of the
Consent Order.
The Bank shall comply with the restrictions on the
effective yields on deposits as described in 12 C.F.R. §
337.6
 
We believe we have complied with this provision of the
Consent Order.
Furnish, by March 12, 2011 and within 30 days of the
end of each quarter thereafter, written progress reports to
the supervisory authorities detailing the form and
manner of any actions taken to secure compliance with
the Consent Order.
 
We believe we have complied with this provision of the
Consent Order, and we have submitted the required
progress reports to the supervisory authorities.
Submit, by March 12, 2011, a written plan to the
supervisory authorities for eliminating its reliance on
brokered deposits.
 
We believe we have complied with the provision of the
Consent Order.
Adopt, by April 11, 2011, an employee compensation
plan after undertaking an independent review of
compensation paid to all of the Bank's senior executive
officers.
 
We believe we have complied with the provision of the
Consent Order.
Prepare and submit, by May 11, 2011, its written
strategic plan to the supervisory authorities.
We believe we have complied with this provision of the
Consent Order. In 2011, the Bank engaged an
independent third party to assist management in its
development of a strategic plan that achieves all
requirements of the Consent Order. The Board of
Directors has reviewed and adopted the Bank's strategic
plan.
 

 

There can be no assurance that the Bank will be able to comply fully with the provisions of the Consent Order, and the determination of the Bank's compliance will be made by the FDIC and the State Board. However, we believe we are currently in substantial compliance with the Consent Order except for the requirements to achieve and maintain, by July 10, 2011, Total Risk Based capital at least equal to 10% of risk-weighted assets and Tier 1 capital at least equal to 8% of total assets. Should we fail to comply with the capital requirements in the Consent Order, or suffer a continued deterioration in our financial condition, the Bank may be subject to being placed into a federal conservatorship or receivership by the FDIC, with the FDIC appointed as conservator or receiver. In addition, the

supervisory authorities may amend the Consent Order based on the results of their ongoing examinations.

As of June 30, 2012, the Company was categorized as "critically undercapitalized" and the Bank was categorized as "significantly undercapitalized." Our losses during 2010, 2011, and the first six months of 2012 have adversely impacted our capital. As a result, we have been pursuing a plan through which we intend to achieve the capital requirements set forth under the Consent Order and have ceased to grow the Bank. Our plan to increase our capital ratios includes, among other things, the sale of assets, reduction in total assets, reduction of overhead expenses, and reduction of dividends as the primary means of improving the Bank's capital position, as well as raising additional capital at either the Bank or the holding company level and attempting to find a merger partner for the Company or the Bank. Pursuant to the requirements under the Consent Order, we submitted our capital plan to the FDIC for review. The FDIC directed us to revise the capital plan and, in addition, to develop a capital restoration plan, which we resubmitted in September 2011. We received the FDIC's non-objection to the revised capital restoration plan on December 6, 2011.

We anticipate that we will need to raise a material amount of capital to return the Bank to an adequate level of capitalization. As a result, with the assistance of our financial advisors, we are currently exploring a number of strategic alternatives to strengthen the capital level of the Bank. We note that there are no assurances that we will be able to raise this capital on a timely basis or at all.

We are also working diligently to improve asset quality and to reduce the Bank's investment in commercial real estate loans as a percentage of Tier 1 capital. The Company is reducing its reliance on brokered deposits and is committed to improving the Bank's capital position.

Written Agreement

On May 9, 2011, the Company entered into the Written Agreement with the Federal Reserve Bank of Richmond. The Written Agreement is designed to enhance the Company's ability to act as a source of strength to the Bank.

The Written Agreement contains provisions similar to those in the Bank's Consent Order. Specifically, pursuant to the Written Agreement, the Company agreed, among other things, to seek the prior written approval of the Federal Reserve Bank of Richmond before undertaking any of the following activities:

  • declaring or paying any dividends,
  • directly or indirectly taking dividends or any other form of payment representing a reduction in capital from the Bank,
  • making any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities,
  • directly or indirectly, incurring, increasing or guarantying any debt, and
  • directly or indirectly, purchasing or redeeming any shares of its stock.

The Company also agreed to comply with certain notice provisions set forth in the Federal Deposit Insurance Act and regulations of the Board of Governors of the Federal Reserve System (the "Federal Reserve") in appointing any new director or senior executive officer, or changing the responsibilities of any senior executive officer so that the officer would assume a different senior executive officer position. The Company is also required to comply with certain restrictions on indemnification and severance payments pursuant to the Federal Deposit Insurance Act and FDIC regulations.

We believe we are currently in substantial compliance with the Written Agreement.

Going Concern Considerations

The going concern assumption is a fundamental principle in the preparation of financial statements. It is the responsibility of management to assess the Company's ability to continue as a going concern. In assessing this assumption, the Company has taken into account all available information about the future, which is at least, but is not limited to, twelve months from the balance sheet date of June 30, 2012. The Company has a history of profitable operations and sufficient sources of liquidity to meet its short-term and long-term funding needs. However, the Bank's financial condition has suffered during 2010, 2011 and the first six months of 2012 from the extraordinary effects of what may ultimately be the worst economic downturn since the Great Depression.

The effects of the current economic environment are being felt across many industries, with financial services and residential real estate being particularly hard hit. The Bank, with a loan portfolio consisting of a concentration in commercial real estate loans, has seen a decline in the value of the collateral securing its portfolio as well as rapid deterioration in its borrowers' cash flow and ability to repay their outstanding loans to the Bank. As a result, the Bank's level of nonperforming assets increased substantially during 2010 and 2011. However, the Bank's nonperforming assets began to stabilize during the first six months of 2012, as the Bank's nonperforming assets equaled $82,167,000, or 15.47% of assets, as of June 30, 2012 as compared to $86,894,000, or 16.22% of assets, as of December 31, 2011. Nevertheless, given the current economic climate, management recognizes the possibility of further deterioration in the loan portfolio for the remainder of 2012. For the six months ended June 30, 2012, we recorded net loan charge-offs of $6,102,000, or 1.73% of average loans, as compared to net loan charge-offs of $10,988,000, or 2.55% of average loans, for the six months ended June 30, 2011.

The Company and the Bank operate in a highly regulated industry and must plan for the liquidity needs of each entity separately. A variety of sources of liquidity are available to the Bank to meet its short-term and long-term funding needs. Although a number of these sources have been limited following execution of the Consent Order, management has prepared forecasts of these sources of funds and the Bank's projected uses of funds during 2012 in an effort to ensure that the sources available are sufficient to meet the Bank's projected liquidity needs for this period.

The Company relies on dividends from the Bank as its primary source of liquidity. The Company is a legal entity separate and distinct from the Bank. Various legal limitations restrict the Bank from lending or otherwise supplying funds to the Company to meet its obligations, including paying dividends. In addition, the terms of the Consent Order described below further limits the Bank's ability to pay dividends to the Company to satisfy its funding needs.

Management believes the Bank's liquidity sources are adequate to meet its needs for at least the next 12 months, but if the Bank is unable to meet its liquidity needs, then the Bank may be placed into a federal conservatorship or receivership by the FDIC, with the FDIC appointed conservator or receiver.

The Company will also need to raise substantial additional capital to increase capital levels to meet the standards set forth by the FDIC. As a result of the recent downturn in the financial markets, the availability of many sources of capital (principally to financial services companies) has become significantly restricted or has become increasingly costly as compared to the prevailing market rates prior to the volatility. Management cannot predict when or if the capital markets will return to more favorable conditions. Management is actively evaluating a number of capital sources, asset reductions and other balance sheet management strategies to ensure that the Bank's projected level of regulatory capital can support its balance sheet. Receivership by the FDIC is based on the Bank's capital ratios rather than those of the Company.

There can be no assurances that the Company will be successful in its efforts to raise additional capital during 2012 or at all. An equity financing transaction would result in substantial dilution to the Company's current shareholders and could adversely affect the market price of the Company's common stock. It is difficult to predict if these efforts will be successful, either on a short-term or long-term basis. Should these efforts be unsuccessful, due to the regulatory restrictions which exist that restrict cash payments between the Bank and the Company, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business.

As a result of management's assessment of the Company's ability to continue as a going concern, the accompanying consolidated financial statements for the Company have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments to reflect the possible future effects on the recoverability or classification of assets. There is substantial doubt about the Company's ability to continue as a going concern.


Regulatory Matters And Going Concern Considerations (Tables)
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Regulatory Matters And Going Concern Considerations (Tables)
6 Months Ended
Jun. 30, 2012
Regulatory Matters And Going Concern Considerations [Abstract]  
Schedule Of Compliance With Consent Order

 

Requirements of the Consent Order Bank's Compliance Status
Achieve and maintain, by July 10, 2011, Total Risk
Based capital at least equal to 10% of risk-weighted
assets and Tier 1 capital at least equal to 8% of total
assets.

The Bank did not meet the capital ratios as specified in
the Consent Order and, as a result, submitted a revised
capital restoration plan to the FDIC on July 15, 2011.
The revised capital restoration plan was determined by
the FDIC to be insufficient and, as a result, we submitted
a further revised capital restoration plan to the FDIC on
September 30, 2011. We received the FDIC's non-
objection to the further revised capital restoration plan
on December 6, 2011.

The Bank is working diligently to increase its capital
ratios in order to strengthen its balance sheet and satisfy
the commitments required under the Consent Order.
The Bank has engaged independent third parties to assist
the Bank in its efforts to increase its capital ratios. In
addition to continuing to search for additional capital,
the Bank is also searching for a potential merger partner.
While the Bank is pursuing both of these approaches
simultaneously, though given the lack of a market for
bank mergers, particularly in the Southeast, as a result of
the current economic and regulatory climate,
management believes that in the short-term the more
realistic opportunity will be to raise additional capital.

Submit, by April 11, 2011, a written capital plan to the
supervisory authorities.
We believe we have complied with this provision of the
Consent Order.
Establish, by March 12, 2011, a plan to monitor
compliance with the Consent Order, which shall be
monitored by the Bank's Directors' Committee.
We believe we have complied with this provision of the
Consent Order. The Directors' Committee meets
monthly and each meeting includes reviews and
discussions of all areas required in the Consent Order.
Develop, by May 11, 2011, a written analysis and
assessment of the Bank's management and staffing
needs.
We believe we have complied with this provision of the
Consent Order. In 2011, the Bank engaged an
independent third party to perform an assessment of the
Bank's staffing needs to ensure the Bank has an
appropriate organizational structure with qualified
management in place. The Board of Directors has
reviewed all recommendations regarding the Bank's
organizational structure.
Notify the supervisory authorities in writing of the
resignation or termination of any of the Bank's directors
or senior executive officers.
We believe we have complied with this provision of the
Consent Order.
Eliminate, by March 12, 2011, by charge-off or
collection, all assets or portions of assets classified
"Loss" and 50% of those assets classified "Doubtful."
We believe we have complied with this provision of the
Consent Order.
Review and update, by April 11, 2011, its policy to
ensure the adequacy of the Bank's allowance for loan
and lease losses, which must provide for a review of the
Bank's allowance for loan and lease losses at least once
each calendar quarter.
We believe we have complied with this provision of the
Consent Order.

Submit, by April 11, 2011, a written plan to the
supervisory authorities to reduce classified assets, which
shall include, among other things, a reduction of the
Bank's risk exposure in relationships with assets in
excess of $750,000 which are criticized as
"Substandard" or "Doubtful".
 

We believe we have complied with this provision of the
Consent Order.
Revise, by April 11, 2011, its policies and procedures
for managing the Bank's Adversely Classified Other
Real Estate Owned.
 
We believe we have complied with this provision of the
Consent Order.
Not extend any additional credit to any borrower who
has a loan or other extension of credit from the Bank that
has been charged-off or classified, in whole or in part,
"Loss" or "Doubtful" and is uncollected. In addition, the
Bank may not extend any additional credit to any
borrower who has a loan or other extension of credit
from the Bank that has been criticized, in whole or in
part, "Substandard" and is uncollected, unless the
Bank's board of directors determines that failure to
extend further credit to a particular borrower would be
detrimental to the best interests of the Bank.
 
We believe we have complied with this provision of the
Consent Order. In the second quarter of 2010, the Bank
engaged the services of an independent firm to perform
an extensive review of the Bank's credit portfolio and
help management implement a more comprehensive
lending and collection policy and more enhanced loan
review.
Perform, by April 11, 2011, a risk segmentation analysis
with respect to the Bank's Concentrations of Credit and
develop a written plan to systematically reduce any
segment of the portfolio that is an undue concentration
of credit.
 
We believe we have complied with this provision of the
Consent Order.
Review, by April 11, 2011 and annually thereafter, the
Bank's loan policies and procedures for adequacy and,
based upon this review, make all appropriate revisions to
the policies and procedures necessary to enhance the
Bank's lending functions and ensure their
implementation.
 
We believe we have complied with this provision of the
Consent Order. As noted above, the Bank engaged the
services of an independent firm to perform an extensive
review of the Bank's credit portfolio and help
management implement a more comprehensive lending
and collection policy and more enhanced loan review.
Adopt, by May 11, 2011, an effective internal loan
review and grading system to provide for the periodic
review of the Bank's loan portfolio in order to identify
and categorize the Bank's loans, and other extensions of
credit which are carried on the Bank's books as loans, on
the basis of credit quality.
 
We believe we have complied with this provision of the
Consent Order. As noted above, the Bank engaged the
services of an independent firm to perform an extensive
review of the Bank's credit portfolio and help
management implement a more comprehensive lending
and collection policy and more enhanced loan review.
Review and update, by May 11, 2011, its written profit
plan to ensure the Bank has a realistic, comprehensive
budget for all categories of income and expense, which
must address, at minimum, goals and strategies for
improving and sustaining the earnings of the Bank, the
major areas in and means by which the Bank will seek to
improve the Bank's operating performance, realistic and
comprehensive budgets, a budget review process to
monitor income and expenses of the Bank to compare
actual figure with budgetary projections, the operating
assumptions that form the basis for and adequately
support major projected income and expense
components of the plan, and coordination of the Bank's
loan, investment, and operating policies and budget and
profit planning with the funds management policy.
 
We believe we have complied with this provision of the
Consent Order. The Bank has engaged an independent
third party to assist management with a strategic plan to
help restructure its balance sheet, increase capital ratios,
return to profitability and maintain adequate liquidity.
Review and update, by May 11, 2011, its written plan
addressing liquidity, contingent funding, and asset
liability management.
We believe we have complied with this provision of the
Consent Order. In 2011, the Bank engaged an
independent third party to assist management in its
development of a strategic plan that achieves all
requirements of the Consent Order. The strategic plan
reflects the Bank's plans to restructure its balance sheet,
increase capital ratios, return to profitability, and
maintain adequate liquidity. The Board of Directors has
reviewed and adopted the Bank's strategic plan.
 
Eliminate, by March 12, 2011, all violations of law and
regulation or contraventions of policy set forth in the
FDIC's safety and soundness examination of the Bank in
November 2009.
 
We believe we have complied with this provision of the
Consent Order.
Not accept, renew, or rollover any brokered deposits
unless it is in compliance with the requirements of 12
C.F.R. § 337.6(b).
 
Since entering into the Consent Order, the Bank has not
accepted, renewed, or rolled-over any brokered deposits.
Limit asset growth to 5% per annum. We believe we have complied with this provision of the
Consent Order.
 
Not declare or pay any dividends or bonuses or make
any distributions of interest, principal, or other sums on
subordinated debentures without the prior approval of
the supervisory authorities.
 
We believe we have complied with this provision of the
Consent Order.
The Bank shall comply with the restrictions on the
effective yields on deposits as described in 12 C.F.R. §
337.6
 
We believe we have complied with this provision of the
Consent Order.
Furnish, by March 12, 2011 and within 30 days of the
end of each quarter thereafter, written progress reports to
the supervisory authorities detailing the form and
manner of any actions taken to secure compliance with
the Consent Order.
 
We believe we have complied with this provision of the
Consent Order, and we have submitted the required
progress reports to the supervisory authorities.
Submit, by March 12, 2011, a written plan to the
supervisory authorities for eliminating its reliance on
brokered deposits.
 
We believe we have complied with the provision of the
Consent Order.
Adopt, by April 11, 2011, an employee compensation
plan after undertaking an independent review of
compensation paid to all of the Bank's senior executive
officers.
 
We believe we have complied with the provision of the
Consent Order.
Prepare and submit, by May 11, 2011, its written
strategic plan to the supervisory authorities.
We believe we have complied with this provision of the
Consent Order. In 2011, the Bank engaged an
independent third party to assist management in its
development of a strategic plan that achieves all
requirements of the Consent Order. The Board of
Directors has reviewed and adopted the Bank's strategic
plan.
 

Regulatory Matters And Going Concern Considerations (Details)
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Regulatory Matters And Going Concern Considerations (Details) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Mar. 12, 2012
Dec. 31, 2011
Apr. 11, 2011
Consent Order Requirements [Member]
Feb. 10, 2011
Consent Order Requirements [Member]
Maximum [Member]
Jul. 10, 2011
Consent Order Requirements [Member]
Minimum [Member]
Regulatory Matters And Going Concern Considerations [Line Items]              
Total risk based capital of risk-weighted assets             10.00%
Tier 1 capital of total assets             8.00%
Charge-off or collect assets classified as "Doubtful"     50.00%        
Substandard or doubtful assets risk exposure threshold         $ 750,000    
Asset growth           5.00%  
Nonperforming assets 82,167,000     86,894,000      
Percentage of nonperforming assets 15.47%     16.22%      
Net loan charge-offs $ 6,102,000 $ 10,988,000          
Percentage of net loan charge-offs of average loans 1.73% 2.55%          

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
6 Months Ended
Jun. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Management's Estimates - In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and income and expenses for the period. Actual results could differ significantly from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, including valuation allowances for impaired loans, and the carrying amount of real estate acquired in connection with foreclosures or in satisfaction of loans. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment.

While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowances for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for losses on loans and foreclosed real estate may change materially in the near term.

Investment Securities - Investment securities available-for-sale by the Company are carried at amortized cost and adjusted to their estimated fair value for reporting purposes. The unrealized gain or loss is recorded in shareholders' equity net of the deferred tax effects. Management does not actively trade securities classified as available-for-sale, but intends to hold these securities for an indefinite period of time and may sell them prior to maturity to achieve certain objectives. Reductions in fair value considered by management to be other than temporary are reported as a realized loss and a reduction in the cost basis in the security. The adjusted cost basis of securities available-for-sale is determined by specific identification and is used in computing the realized gain or loss from a sales transaction.

Nonmarketable Equity Securities - Nonmarketable equity securities include the Company's investments in the stock of the Federal Home Loan Bank (the "FHLB"). The FHLB stock is carried at cost because the stock has no quoted market value and no ready market exists. Investment in FHLB stock is a condition of borrowing from the FHLB, and the stock is pledged to collateralize the borrowings. Dividends received on FHLB stock are included as a separate component in interest income.

Loans Receivable - Loans receivable are stated at their unpaid principal balance. Interest income on loans is computed based upon the unpaid principal balance. Interest income is recorded in the period earned.

The accrual of interest income is generally discontinued when a loan becomes contractually 90 days past due as to principal or interest. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral exceeds the principal balance and accrued interest.

Loan origination, commitment fees, and certain direct loan origination costs (principally salaries and employee benefits) are deferred and amortized to income over the contractual life of the related loans or commitments, adjusted for prepayments, using the straight-line method.

Loans are defined as impaired when it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans are subject to this criteria except for smaller balance homogeneous loans that are collectively evaluated for impairment and loans measured at fair value or at the lower of cost or fair value. The Company considers its consumer installment portfolio, credit card loans, and home equity lines as such exceptions. Therefore, loans within the real estate and commercial loan portfolios are reviewed individually.

Impairment of a loan is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent. When management determines that a loan is impaired, the difference between the Company's investment in the related loan and the present value of the expected future cash flows, or the fair value of the collateral, is charged off with a corresponding entry to the allowance for loan losses. The accrual of interest is discontinued on an impaired loan when management determines the borrower may be unable to meet payments as they become due.

Concentrations of Credit Risk - Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of loans receivable, investment securities, federal funds sold and amounts due from banks.

The Company makes loans to individuals and small businesses for various personal and commercial purposes primarily throughout Horry County in South Carolina and Columbus and Brunswick counties in North Carolina. The Company's loan portfolio is not concentrated in loans to any single borrower or a relatively small number of borrowers. However, the loan portfolio does include a concentration in loans secured by residential and commercial real estate and commercial and industrial non-real estate loans. These loans are especially susceptible to being adversely effected by the current economic downturn. The current downturn in the real estate market has resulted in an increase in loan delinquencies, defaults and foreclosures, and we believe these trends are likely to continue, especially in the Myrtle Beach area. In some cases, this downturn has resulted in a significant impairment to the value of our collateral and our ability to sell the collateral upon foreclosure, and there is a risk that this trend will continue. The commercial real estate collateral in each case provides an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended. If real estate values in our market areas continue to decline, it is also more likely that we would be required to increase our allowance for loan losses.

In addition to monitoring potential concentrations of loans to particular borrowers or groups of borrowers, industries and geographic regions, management monitors exposure to credit risk from concentrations of lending products and practices such as loans that subject borrowers to substantial payment increases (e.g. principal deferral periods, loans with initial interest-only periods, etc.), and loans with high loan-to-value ratios. Additionally, there are industry practices that could subject the Company to increased credit risk should economic conditions change over the course of a loan's life. For example, the Company makes variable rate loans and fixed rate principal-amortizing loans with maturities prior to the loan being fully paid (i.e. balloon payment loans). These loans are underwritten and monitored to manage the associated risks. Therefore, management believes that these particular practices do not subject the Company to unusual credit risk.

The Company's investment portfolio consists principally of obligations of the United States, its agencies or its corporations and general obligation municipal securities. In the opinion of management, there is no concentration of credit risk in its investment portfolio. The Company places its deposits and correspondent accounts with and sells its federal funds to high quality institutions. Management believes credit risk associated with correspondent accounts is not significant.

Allowance for Loan Losses - The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management's periodic review of the collectability of the loans in light of historical experiences, the nature and volume of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Management's judgments about the adequacy of the allowance are based on numerous assumptions about current events, which management believes to be reasonable, but which may or may not prove to be accurate. Thus, there can be no assurance that loan losses in future periods will not exceed the current allowance amount or that future increases in the allowance will not be required. No assurance can be given that management's ongoing evaluation of the loan portfolio in light of changing economic conditions and other relevant circumstances will not require significant future additions to the allowance, thus adversely affecting the operating results of the Company.

The allowance is subject to examination by regulatory agencies, which may consider such factors as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions, and other adequacy tests. In addition, such regulatory agencies could require the Company to adjust its allowance based on information available to them at their examination.

The methodology used to determine the reserve for unfunded lending commitments, which is included in other liabilities, is inherently similar to that used to determine the allowance for loan losses adjusted for factors specific to binding commitments, including the probability of funding and historical loss ratio.

Premises, Furniture and Equipment - Premises, furniture and equipment are stated at cost less accumulated depreciation. The provision for depreciation is computed by the straight-line method. Rates of depreciation are generally based on the following estimated useful lives: buildings - 40 years; furniture and equipment - three to 25 years. The cost of assets sold or otherwise disposed of and the related accumulated depreciation is eliminated from the accounts, and the resulting gains or losses are reflected in the income statement.

Maintenance and repairs are charged to current expense as incurred, and the costs of major renewals and improvements are capitalized.

Other Real Estate Owned - Other real estate owned includes real estate acquired through foreclosure. Other real estate owned is initially recorded at the lower of cost (principal balance of the former loan plus costs of improvements) or fair value, less estimated costs to sell.

Any write-downs at the dates of acquisition are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent write-downs, and gains and losses on disposal are included in other expenses.

Income and Expense Recognition - The accrual method of accounting is used for all significant categories of income and expense. Immaterial amounts of insurance commissions and other miscellaneous fees are reported when received.

Income Taxes - Amounts provided for income taxes are based on income reported for financial statement purposes. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2012, our gross deferred tax asset was $17,898,846. However, as of June 30, 2012, due to the Company's recent financial results, the uncertainty involved in projecting near-term profitability, and evaluation of appropriate tax planning strategies, management has provided a 100% valuation allowance for our deferred tax asset in the amount of $17,898,846. This valuation allowance reflects management's estimate that the deferred tax asset is not more-likely-than-not to be realized.

The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company's financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded.

Net Income (Loss) Per Common Share - Basic income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the year. Diluted net income per share is computed based on net income divided by the weighted average number of common and potential common shares. Retroactive recognition has been given for the effects of all stock dividends and splits in computing the weighted-average number of shares. The only potential common share equivalents are those related to stock options and restricted stock awards. Stock options that are anti-dilutive are excluded from the calculation of diluted net income per share.

Comprehensive Income - Accounting principles generally require recognized income, expenses, gains, and losses to be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

Statements of Cash Flows - For purposes of reporting cash flows, the Company considers certain highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents include amounts due from banks, federal funds sold, and time deposits with other banks with maturities of three months or less.

Off-Balance-Sheet Financial Instruments - In the ordinary course of business, the Company enters into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit. These financial instruments are recorded in the financial statements when they become payable by the customer.

Recently Issued Accounting Pronouncements – The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting, and / or disclosure of financial information by the Company.

In April 2011, the criteria used to determine effective control of transferred assets in the Transfers and Servicing topic of the ASC was amended by ASU 2011-03. The requirement for the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms and the collateral maintenance implementation guidance related to that criterion were removed from the assessment of effective control. The other criteria to assess effective control were not changed. The amendments were effective for the Company on January 1, 2012 and had no effect on the financial statements.

ASU 2011-04 was issued in May 2011 to amend the Fair Value Measurement topic of the ASC by clarifying the application of existing fair value measurement and disclosure requirements and by changing particular principles or requirements for measuring fair value or for disclosing information about fair value measurements. The amendments were effective for the Company beginning January 1, 2012 and had no effect on the financial statements.

The Comprehensive Income topic of the ASC was amended in June 2011. The amendment eliminates the option to present other comprehensive income as a part of the statement of changes in stockholders' equity. The amendment requires consecutive presentation of the statement of net income and other comprehensive income and requires an entity to present reclassification adjustments from other comprehensive income to net income on the face of the financial statements. The amendments were applicable to the Company on January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements. Companies should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect prior to the amendments while FASB redeliberates future requirements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

Risks and Uncertainties - In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different basis, than its interest-earning assets. Credit risk is the risk of default on the Company's loan portfolio that results from borrower's inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company.

The Company is subject to the regulations of various governmental agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loss allowances and operating restrictions from the regulators' judgments based on information available to them at the time of their examination.

Additionally, the Company is subject to certain regulations due to our participation in the U.S. Treasury's CPP. Pursuant to the terms of the CPP Purchase Agreement between us and the Treasury, we adopted certain standards for executive compensation and corporate governance for the period during which the Treasury holds the equity issued pursuant to the CPP Purchase Agreement, including the common stock which may be issued pursuant to the CPP Warrant. These standards generally apply to our named executive officers. The standards include (1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required clawback of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; (3) prohibition on making golden parachute payments to senior executives; (4) prohibition on providing tax gross-up provisions; and (5) agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive. In particular, the change to the deductibility limit on executive compensation will likely increase the overall cost of our compensation programs in future periods and may make it more difficult to attract suitable candidates to serve as executive officers.

Legislation that has been adopted after we closed on our sale of Series T Preferred Stock and the CPP Warrant to the U.S. Treasury for $12.9 million pursuant to the CPP on March 6, 2009, or any legislation or regulations that may be implemented in the future, may have a material impact on the terms of our CPP transaction with the Treasury. If we determine that any such legislation or any regulations, in whole or in part, alter the terms of our CPP transaction with the Treasury in ways that we believe are adverse to our ability to effectively manage our business, then it is possible that we may seek to unwind, in whole or in part, the CPP transaction by repurchasing some or all of the preferred stock and warrants that we sold to the Treasury pursuant to the CPP. If we were to repurchase all or a portion of such preferred stock or warrants, then our capital levels could be materially reduced.


Summary Of Significant Accounting Policies (Policy)
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Summary Of Significant Accounting Policies (Policy)
6 Months Ended
Jun. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Management's Estimates

Management's Estimates - In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and income and expenses for the period. Actual results could differ significantly from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, including valuation allowances for impaired loans, and the carrying amount of real estate acquired in connection with foreclosures or in satisfaction of loans. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment.

While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowances for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for losses on loans and foreclosed real estate may change materially in the near term.

Investment Securities

Investment Securities - Investment securities available-for-sale by the Company are carried at amortized cost and adjusted to their estimated fair value for reporting purposes. The unrealized gain or loss is recorded in shareholders' equity net of the deferred tax effects. Management does not actively trade securities classified as available-for-sale, but intends to hold these securities for an indefinite period of time and may sell them prior to maturity to achieve certain objectives. Reductions in fair value considered by management to be other than temporary are reported as a realized loss and a reduction in the cost basis in the security. The adjusted cost basis of securities available-for-sale is determined by specific identification and is used in computing the realized gain or loss from a sales transaction.

Nonmarketable Equity Securities

Nonmarketable Equity Securities - Nonmarketable equity securities include the Company's investments in the stock of the Federal Home Loan Bank (the "FHLB"). The FHLB stock is carried at cost because the stock has no quoted market value and no ready market exists. Investment in FHLB stock is a condition of borrowing from the FHLB, and the stock is pledged to collateralize the borrowings. Dividends received on FHLB stock are included as a separate component in interest income.

Loans Receivable

Loans Receivable - Loans receivable are stated at their unpaid principal balance. Interest income on loans is computed based upon the unpaid principal balance. Interest income is recorded in the period earned.

The accrual of interest income is generally discontinued when a loan becomes contractually 90 days past due as to principal or interest. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral exceeds the principal balance and accrued interest.

Loan origination, commitment fees, and certain direct loan origination costs (principally salaries and employee benefits) are deferred and amortized to income over the contractual life of the related loans or commitments, adjusted for prepayments, using the straight-line method.

Loans are defined as impaired when it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans are subject to this criteria except for smaller balance homogeneous loans that are collectively evaluated for impairment and loans measured at fair value or at the lower of cost or fair value. The Company considers its consumer installment portfolio, credit card loans, and home equity lines as such exceptions. Therefore, loans within the real estate and commercial loan portfolios are reviewed individually.

Impairment of a loan is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent. When management determines that a loan is impaired, the difference between the Company's investment in the related loan and the present value of the expected future cash flows, or the fair value of the collateral, is charged off with a corresponding entry to the allowance for loan losses. The accrual of interest is discontinued on an impaired loan when management determines the borrower may be unable to meet payments as they become due.

Concentrations Of Credit Risk

Concentrations of Credit Risk - Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of loans receivable, investment securities, federal funds sold and amounts due from banks.

The Company makes loans to individuals and small businesses for various personal and commercial purposes primarily throughout Horry County in South Carolina and Columbus and Brunswick counties in North Carolina. The Company's loan portfolio is not concentrated in loans to any single borrower or a relatively small number of borrowers. However, the loan portfolio does include a concentration in loans secured by residential and commercial real estate and commercial and industrial non-real estate loans. These loans are especially susceptible to being adversely effected by the current economic downturn. The current downturn in the real estate market has resulted in an increase in loan delinquencies, defaults and foreclosures, and we believe these trends are likely to continue, especially in the Myrtle Beach area. In some cases, this downturn has resulted in a significant impairment to the value of our collateral and our ability to sell the collateral upon foreclosure, and there is a risk that this trend will continue. The commercial real estate collateral in each case provides an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended. If real estate values in our market areas continue to decline, it is also more likely that we would be required to increase our allowance for loan losses.

In addition to monitoring potential concentrations of loans to particular borrowers or groups of borrowers, industries and geographic regions, management monitors exposure to credit risk from concentrations of lending products and practices such as loans that subject borrowers to substantial payment increases (e.g. principal deferral periods, loans with initial interest-only periods, etc.), and loans with high loan-to-value ratios. Additionally, there are industry practices that could subject the Company to increased credit risk should economic conditions change over the course of a loan's life. For example, the Company makes variable rate loans and fixed rate principal-amortizing loans with maturities prior to the loan being fully paid (i.e. balloon payment loans). These loans are underwritten and monitored to manage the associated risks. Therefore, management believes that these particular practices do not subject the Company to unusual credit risk.

The Company's investment portfolio consists principally of obligations of the United States, its agencies or its corporations and general obligation municipal securities. In the opinion of management, there is no concentration of credit risk in its investment portfolio. The Company places its deposits and correspondent accounts with and sells its federal funds to high quality institutions. Management believes credit risk associated with correspondent accounts is not significant.

Allowance For Loan Losses

Allowance for Loan Losses - The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management's periodic review of the collectability of the loans in light of historical experiences, the nature and volume of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Management's judgments about the adequacy of the allowance are based on numerous assumptions about current events, which management believes to be reasonable, but which may or may not prove to be accurate. Thus, there can be no assurance that loan losses in future periods will not exceed the current allowance amount or that future increases in the allowance will not be required. No assurance can be given that management's ongoing evaluation of the loan portfolio in light of changing economic conditions and other relevant circumstances will not require significant future additions to the allowance, thus adversely affecting the operating results of the Company.

The allowance is subject to examination by regulatory agencies, which may consider such factors as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions, and other adequacy tests. In addition, such regulatory agencies could require the Company to adjust its allowance based on information available to them at their examination.

The methodology used to determine the reserve for unfunded lending commitments, which is included in other liabilities, is inherently similar to that used to determine the allowance for loan losses adjusted for factors specific to binding commitments, including the probability of funding and historical loss ratio.

Premises, Furniture And Equipment

Premises, Furniture and Equipment - Premises, furniture and equipment are stated at cost less accumulated depreciation. The provision for depreciation is computed by the straight-line method. Rates of depreciation are generally based on the following estimated useful lives: buildings - 40 years; furniture and equipment - three to 25 years. The cost of assets sold or otherwise disposed of and the related accumulated depreciation is eliminated from the accounts, and the resulting gains or losses are reflected in the income statement.

Maintenance and repairs are charged to current expense as incurred, and the costs of major renewals and improvements are capitalized.

Other Real Estate Owned

Other Real Estate Owned - Other real estate owned includes real estate acquired through foreclosure. Other real estate owned is initially recorded at the lower of cost (principal balance of the former loan plus costs of improvements) or fair value, less estimated costs to sell.

Any write-downs at the dates of acquisition are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent write-downs, and gains and losses on disposal are included in other expenses.

Income And Expense Recognition

Income and Expense Recognition - The accrual method of accounting is used for all significant categories of income and expense. Immaterial amounts of insurance commissions and other miscellaneous fees are reported when received.

Income Taxes

Income Taxes - Amounts provided for income taxes are based on income reported for financial statement purposes. Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2012, our gross deferred tax asset was $17,898,846. However, as of June 30, 2012, due to the Company's recent financial results, the uncertainty involved in projecting near-term profitability, and evaluation of appropriate tax planning strategies, management has provided a 100% valuation allowance for our deferred tax asset in the amount of $17,898,846. This valuation allowance reflects management's estimate that the deferred tax asset is not more-likely-than-not to be realized.

The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company's financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded.

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share - Basic income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the year. Diluted net income per share is computed based on net income divided by the weighted average number of common and potential common shares. Retroactive recognition has been given for the effects of all stock dividends and splits in computing the weighted-average number of shares. The only potential common share equivalents are those related to stock options and restricted stock awards. Stock options that are anti-dilutive are excluded from the calculation of diluted net income per share.

Comprehensive Income

Comprehensive Income - Accounting principles generally require recognized income, expenses, gains, and losses to be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

Statements of Cash Flows

Statements of Cash Flows - For purposes of reporting cash flows, the Company considers certain highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents include amounts due from banks, federal funds sold, and time deposits with other banks with maturities of three months or less.

Off-Balance-Sheet Financial Instruments

Off-Balance-Sheet Financial Instruments - In the ordinary course of business, the Company enters into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit. These financial instruments are recorded in the financial statements when they become payable by the customer.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements – The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting, and / or disclosure of financial information by the Company.

In April 2011, the criteria used to determine effective control of transferred assets in the Transfers and Servicing topic of the ASC was amended by ASU 2011-03. The requirement for the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms and the collateral maintenance implementation guidance related to that criterion were removed from the assessment of effective control. The other criteria to assess effective control were not changed. The amendments were effective for the Company on January 1, 2012 and had no effect on the financial statements.

ASU 2011-04 was issued in May 2011 to amend the Fair Value Measurement topic of the ASC by clarifying the application of existing fair value measurement and disclosure requirements and by changing particular principles or requirements for measuring fair value or for disclosing information about fair value measurements. The amendments were effective for the Company beginning January 1, 2012 and had no effect on the financial statements.

The Comprehensive Income topic of the ASC was amended in June 2011. The amendment eliminates the option to present other comprehensive income as a part of the statement of changes in stockholders' equity. The amendment requires consecutive presentation of the statement of net income and other comprehensive income and requires an entity to present reclassification adjustments from other comprehensive income to net income on the face of the financial statements. The amendments were applicable to the Company on January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements. Companies should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect prior to the amendments while FASB redeliberates future requirements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

Risks And Uncertainties

Risks and Uncertainties - In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different basis, than its interest-earning assets. Credit risk is the risk of default on the Company's loan portfolio that results from borrower's inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company.

The Company is subject to the regulations of various governmental agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loss allowances and operating restrictions from the regulators' judgments based on information available to them at the time of their examination.

Additionally, the Company is subject to certain regulations due to our participation in the U.S. Treasury's CPP. Pursuant to the terms of the CPP Purchase Agreement between us and the Treasury, we adopted certain standards for executive compensation and corporate governance for the period during which the Treasury holds the equity issued pursuant to the CPP Purchase Agreement, including the common stock which may be issued pursuant to the CPP Warrant. These standards generally apply to our named executive officers. The standards include (1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required clawback of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; (3) prohibition on making golden parachute payments to senior executives; (4) prohibition on providing tax gross-up provisions; and (5) agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive. In particular, the change to the deductibility limit on executive compensation will likely increase the overall cost of our compensation programs in future periods and may make it more difficult to attract suitable candidates to serve as executive officers.

Legislation that has been adopted after we closed on our sale of Series T Preferred Stock and the CPP Warrant to the U.S. Treasury for $12.9 million pursuant to the CPP on March 6, 2009, or any legislation or regulations that may be implemented in the future, may have a material impact on the terms of our CPP transaction with the Treasury. If we determine that any such legislation or any regulations, in whole or in part, alter the terms of our CPP transaction with the Treasury in ways that we believe are adverse to our ability to effectively manage our business, then it is possible that we may seek to unwind, in whole or in part, the CPP transaction by repurchasing some or all of the preferred stock and warrants that we sold to the Treasury pursuant to the CPP. If we were to repurchase all or a portion of such preferred stock or warrants, then our capital levels could be materially reduced.


Summary Of Significant Accounting Policies (Details)
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Summary Of Significant Accounting Policies (Details) (USD $)
0 Months Ended 6 Months Ended
Mar. 06, 2009
Jun. 30, 2012
Jun. 30, 2012
Buildings [Member]
Jun. 30, 2012
Maximum [Member]
Jun. 30, 2012
Maximum [Member]
Furniture And Equipment [Member]
Jun. 30, 2012
Minimum [Member]
Furniture And Equipment [Member]
Estimated useful life, years     40 years   25 years 3 years
Gross deferred tax asset   $ 17,898,846        
Valuation allowance, percent   100.00%        
Valuation allowance   17,898,846        
Individual senior executive compensation amount eligible to be tax deductible       500,000    
Proceeds from sale of Series T Preferred Stock $ 12,900,000          

Earnings (Losses) Per Share
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Earnings (Losses) Per Share
6 Months Ended
Jun. 30, 2012
Earnings (Losses) Per Share [Abstract]  
Earnings (Losses) Per Share

NOTE 4 – EARNINGS (LOSSES) PER SHARE

A reconciliation of the numerators and denominators used to calculate basic and diluted earnings (losses) per share is as follows:

 


Earnings (Losses) Per Share (Tables)
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Earnings (Losses) Per Share (Tables)
6 Months Ended
Jun. 30, 2012
Earnings (Losses) Per Share [Abstract]  
Reconciliation Of Numerators And Denominators Used To Calculate Basic And Diluted Earnings (Losses) Per Share

Earnings (Losses) Per Share (Reconciliation Of Numerators And Denominators Used To Calculate Basic And Diluted Earnings (Losses) Per Share) (Details)
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Earnings (Losses) Per Share (Reconciliation Of Numerators And Denominators Used To Calculate Basic And Diluted Earnings (Losses) Per Share) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Earnings (Losses) Per Share [Abstract]        
Basic loss per share, Loss available to common shareholders, Income (Numerator) $ (1,501) $ (14,179) $ (1,974) $ (22,066)
Basic loss per share, Loss available to common shareholders, Average Shares (Denominator) 3,738,337 3,746,557 3,738,337 3,746,557
Basic loss per share, Loss available to common shareholders, Per Share Amount $ (0.40) $ (3.78) $ (0.53) $ (5.89)
Diluted loss per share, Loss available to common shareholders plus assumed conversions, Income (Numerator) $ (1,501) $ (14,179) $ (1,974) $ (22,066)
Diluted loss per share, Loss available to common shareholders plus assumed conversions, Average Shares (Denominator) 3,738,337 3,746,557 3,738,337