Yes þ
|
No ¨
|
Yes ¨
|
No ¨
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company þ
|
Yes ¨
|
No þ
|
Class
|
Outstanding at May 11, 2011
|
|
Common Stock, $.01 par value
|
1,355,073 |
Page
|
||
Part I. Financial Information
|
||
Item 1. Financial Statements (Unaudited)
|
1
|
|
Consolidated Statements of
Financial Condition at March 31, 2011
and December 31, 2010
|
1
|
|
Consolidated Statements of
Income for the Three Months Ended
March 31, 2011 and 2010
|
2
|
|
Consolidated Statements of
Stockholders’ Equity for the Three Months
Ended March 31, 2011 and 2010
|
3
|
|
Consolidated Statements of
Cash Flows for the Three Months Ended
March 31, 2011 and 2010
|
4
|
|
Notes to Consolidated Financial Statements
|
6
|
|
Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations
|
20
|
|
Item 3. Quantitative and Qualitative Disclosure
About Market Risk
|
30
|
|
Item 4. Controls and Procedures
|
30
|
|
Part II. Other Information
|
||
Item 1. Legal Proceedings
|
30
|
|
Item 6. Exhibits
|
31
|
|
Signatures
|
32
|
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
|
||||||||
March 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Cash and due from banks:
|
||||||||
Interest-bearing
|
$ | 29,287,282 | $ | 13,563,234 | ||||
Noninterest-bearing
|
11,375,107 | 7,040,574 | ||||||
Total cash and cash equivalents
|
40,662,389 | 20,603,808 | ||||||
Investments in certificates of deposit
|
8,414,000 | 12,689,000 | ||||||
Securities available-for-sale
|
54,918,963 | 48,435,771 | ||||||
Federal Home Loan Bank stock, at cost
|
2,516,900 | 3,017,200 | ||||||
Loans receivable
|
327,974,347 | 340,607,428 | ||||||
Allowance for loan losses
|
(6,241,074 | ) | (6,146,861 | ) | ||||
Loans receivable, net
|
321,733,273 | 334,460,567 | ||||||
Loans held for sale
|
230,000 | 332,178 | ||||||
Accrued interest receivable
|
1,705,619 | 1,754,292 | ||||||
Foreclosed real estate
|
3,354,298 | 4,586,399 | ||||||
Premises and equipment, net
|
11,484,706 | 11,498,583 | ||||||
Rental real estate
|
2,116,901 | 2,144,400 | ||||||
Title plant
|
671,704 | 671,704 | ||||||
Deferred taxes
|
1,963,591 | 2,151,594 | ||||||
Bank-owned life insurance
|
5,845,966 | 5,787,864 | ||||||
Prepaid FDIC assessment
|
1,219,401 | 1,353,121 | ||||||
Prepaid expenses and other assets
|
2,770,383 | 2,777,185 | ||||||
Total assets
|
$ | 459,608,094 | $ | 452,263,666 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Deposits
|
$ | 367,426,237 | $ | 349,832,904 | ||||
Borrowed funds
|
39,250,000 | 49,250,000 | ||||||
Advances from borrowers for taxes and insurance
|
972,525 | 1,828,430 | ||||||
Accrued expenses and other liabilities
|
2,106,460 | 2,177,042 | ||||||
Total liabilities
|
409,755,222 | 403,088,376 | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred stock ($.01 par value, authorized 3,000,000
|
||||||||
shares; at March 31, 2011 and at December 31,
|
||||||||
2010 10,200 shares were issued and outstanding
|
10,142,235 | 10,137,381 | ||||||
Common stock ($.01 par value, authorized 15,500,000
|
||||||||
shares; at March 31, 2011 and at December 31,
|
||||||||
2010 1,351,448 shares were issued and outstanding
|
13,510 | 13,502 | ||||||
Additional paid-in capital
|
18,080,484 | 18,066,437 | ||||||
Retained earnings, substantially restricted
|
21,591,658 | 21,047,295 | ||||||
Accumulated other comprehensive income (loss)
|
24,985 | (89,325 | ) | |||||
Total stockholders' equity
|
49,852,872 | 49,175,290 | ||||||
Total liabilities and stockholders' equity
|
$ | 459,608,094 | $ | 452,263,666 | ||||
See Notes to Consolidated Financial Statements.
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Interest income:
|
||||||||
Loans receivable
|
$ | 4,759,385 | $ | 5,553,110 | ||||
Securities and cash deposits
|
416,222 | 234,676 | ||||||
5,175,607 | 5,787,786 | |||||||
Interest expense:
|
||||||||
Deposits
|
1,215,498 | 1,327,510 | ||||||
Borrowed funds
|
390,615 | 694,595 | ||||||
1,606,113 | 2,022,105 | |||||||
Net interest income
|
3,569,494 | 3,765,681 | ||||||
Provision for loan losses
|
300,000 | 800,000 | ||||||
Net interest income after provision for loan losses
|
3,269,494 | 2,965,681 | ||||||
Noninterest income:
|
||||||||
Fees and service charges
|
1,149,944 | 1,076,762 | ||||||
Abstract fees
|
131,219 | 142,621 | ||||||
Mortgage banking income
|
116,059 | 112,187 | ||||||
Loan prepayment fees
|
1,200 | 10,079 | ||||||
Other income
|
235,668 | 322,948 | ||||||
Total noninterest income
|
1,634,090 | 1,664,597 | ||||||
Investment securities gains (losses), net:
|
||||||||
Total other-than-temporary impairment losses
|
- | - | ||||||
Portion of loss recognized in other comprehensive
|
||||||||
income (loss) before taxes
|
- | - | ||||||
Net impairment losses recognized in earnings
|
- | - | ||||||
Realized securities gains (losses), net
|
- | 7,652 | ||||||
Total securities gains (losses), net
|
- | 7,652 | ||||||
Noninterest expense:
|
||||||||
Compensation and employee benefits
|
1,879,448 | 1,889,859 | ||||||
Premises and equipment
|
504,805 | 501,090 | ||||||
Data processing
|
193,452 | 213,123 | ||||||
FDIC insurance expense
|
143,811 | 143,817 | ||||||
Foreclosed real estate impairment
|
71,538 | 9,958 | ||||||
Other expenses
|
1,144,398 | 994,975 | ||||||
Total noninterest expense
|
3,937,452 | 3,752,822 | ||||||
Income before income taxes
|
966,132 | 885,108 | ||||||
Provision for income taxes
|
275,900 | 256,500 | ||||||
Net income
|
$ | 690,232 | $ | 628,608 | ||||
Preferred stock dividends and accretion of discount
|
$ | 132,354 | $ | 132,109 | ||||
Net income available to common stockholders
|
$ | 557,878 | $ | 496,499 | ||||
Basic earnings per share
|
$ | 0.41 | $ | 0.37 | ||||
Dilluted earnings per share
|
$ | 0.41 | $ | 0.37 | ||||
Dividends declared per common share
|
$ | 0.01 | $ | 0.01 | ||||
See Notes to Consolidated Financial Statements.
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
|||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
|||||||||||||||||||||
Three Months Ended March 31, 2010 and 2011
|
|||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||
Accumulated
|
|||||||||||||||||||||
Additional
|
Other
|
Total
|
|||||||||||||||||||
Comprehensive
|
Preferred
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Stockholders'
|
|||||||||||||||
Income
|
Stock
|
Stock
|
Capital
|
Earnings
|
Income
|
Equity
|
|||||||||||||||
Balance, January 1, 2010
|
$ | 10,118,581 | $ | 13,471 | $ | 18,009,468 | $ | 19,924,798 | $ | 212,500 | $ | 48,278,818 | |||||||||
Comprehensive income:
|
|||||||||||||||||||||
Net income
|
$ | 628,608 | - | - | - | 628,608 | - | 628,608 | |||||||||||||
Other comprehensive (loss), net of
|
|||||||||||||||||||||
reclassification adjustment and tax
|
(44,966 | ) | - | - | - | - | (44,966 | ) | (44,966 | ) | |||||||||||
Total comprehensive income
|
$ | 583,642 | |||||||||||||||||||
Dividends on preferred stock
|
- | - | - | (127,500 | ) | - | (127,500 | ) | |||||||||||||
Dividends on common stock
|
- | - | - | (13,484 | ) | - | (13,484 | ) | |||||||||||||
Employee stock-based compensation
|
- | 8 | 13,107 | - | - | 13,115 | |||||||||||||||
Accretion of discount on preferred stock
|
4,609 | - | - | (4,609 | ) | - | - | ||||||||||||||
Balance, March 31, 2010
|
$ | 10,123,190 | $ | 13,479 | $ | 18,022,575 | $ | 20,407,813 | $ | 167,534 | $ | 48,734,591 | |||||||||
Balance, January 1, 2011
|
$ | 10,137,381 | $ | 13,502 | $ | 18,066,437 | $ | 21,047,295 | $ | (89,325 | ) | $ | 49,175,290 | ||||||||
Comprehensive income:
|
|||||||||||||||||||||
Net income
|
$ | 690,232 | - | - | - | 690,232 | - | 690,232 | |||||||||||||
Other comprehensive income, net of
|
|||||||||||||||||||||
reclassification adjustment and tax
|
114,310 | - | - | - | - | 114,310 | 114,310 | ||||||||||||||
Total comprehensive income
|
$ | 804,542 | |||||||||||||||||||
Dividends on preferred stock
|
- | - | - | (127,500 | ) | - | (127,500 | ) | |||||||||||||
Dividends on common stock
|
- | - | - | (13,515 | ) | - | (13,515 | ) | |||||||||||||
Employee stock-based compensation
|
- | 8 | 14,047 | - | - | 14,055 | |||||||||||||||
Accretion of discount on preferred stock
|
4,854 | - | - | (4,854 | ) | - | - | ||||||||||||||
Balance, March 31, 2011
|
$ | 10,142,235 | $ | 13,510 | $ | 18,080,484 | $ | 21,591,658 | $ | 24,985 | $ | 49,852,872 | |||||||||
See Notes to Consolidated Financial Statements
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
Three Months Ended
|
|||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 690,232 | $ | 628,608 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Provision for loan losses
|
300,000 | 800,000 | ||||||
Depreciation
|
216,416 | 236,067 | ||||||
Amortization and accretion
|
57,242 | 45,866 | ||||||
Deferred taxes
|
120,000 | (238,000 | ) | |||||
Stock-based compensation
|
14,055 | 13,115 | ||||||
(Gain) on sale of foreclosed real estate and loans, net
|
(81,350 | ) | (82,580 | ) | ||||
Write-down of foreclosed real estate
|
71,538 | 9,958 | ||||||
(Gain) on sale of investments
|
- | (7,652 | ) | |||||
Increase in value of bank-owned life insurance
|
(58,102 | ) | (59,743 | ) | ||||
Proceeds from sales of loans held-for-sale
|
6,273,106 | 6,333,825 | ||||||
Originations of loans held-for-sale
|
(6,054,869 | ) | (5,403,470 | ) | ||||
Change in assets and liabilities:
|
||||||||
Accrued interest receivable
|
48,673 | (4,616 | ) | |||||
Prepaid expenses and other assets
|
158,664 | 330,085 | ||||||
Accrued expenses and other liabilities
|
(95,085 | ) | (516,380 | ) | ||||
Net cash provided by operating activities
|
1,660,520 | 2,085,083 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Net change in loans
|
11,752,590 | 11,500,458 | ||||||
Purchase of investments in certificates of deposit
|
- | (4,176,000 | ) | |||||
Proceeds from maturities on investments in certificates of deposits
|
4,275,000 | - | ||||||
Purchase of securities available-for-sale
|
(10,233,887 | ) | (7,523,828 | ) | ||||
Proceeds from sale of securities available-for-sale
|
- | 207,732 | ||||||
Proceeds from maturities and calls of securities available-for-sale
|
3,857,898 | 925,066 | ||||||
Proceeds from redemption of Federal Home Loan Bank stock
|
500,300 | 375,600 | ||||||
Purchase of premises, equipment and rental real estate
|
(175,040 | ) | (101,758 | ) | ||||
Net proceeds from sale of foreclosed real estate
|
1,838,301 | 547,574 | ||||||
Net cash provided by investing activities
|
11,815,162 | 1,754,844 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net increase in deposits
|
17,593,333 | 7,294,153 | ||||||
Net (decrease) in advances from borrowers for taxes
|
||||||||
and insurance
|
(855,905 | ) | (800,846 | ) | ||||
Payments of other borrowed funds
|
(10,000,000 | ) | (9,000,000 | ) | ||||
Common and preferred dividends paid
|
(154,529 | ) | (154,469 | ) | ||||
Net cash provided by (used in) financing activities
|
6,582,899 | (2,661,162 | ) | |||||
Net increase in cash
|
20,058,581 | 1,178,765 | ||||||
CASH AND DUE FROM BANKS
|
||||||||
Beginning
|
20,603,808 | 21,766,170 | ||||||
Ending
|
$ | 40,662,389 | $ | 22,944,935 |
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
|
||||||||
(Unaudited)
|
Three Months Ended
|
|||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
|
||||||||
INFORMATION
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$ | 1,630,573 | $ | 2,019,419 | ||||
Income taxes
|
3,065 | 184,591 | ||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH OPERATING,
|
||||||||
INVESTING AND FINANCING ACTIVITIES
|
||||||||
Transfers from loans to other real estate owned
|
$ | 674,430 | $ | 362,092 | ||||
See Notes to Consolidated Financial Statements.
|
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Basic earnings per common share:
|
||||||||
Net Income
|
$ | 690,232 | $ | 628,608 | ||||
Preferred stock dividends and accretion of discount
|
132,354 | 132,109 | ||||||
Net income available to common stockholders
|
$ | 557,878 | $ | 496,499 | ||||
Weighted average common shares outstanding - basic
|
1,347,948 | 1,344,948 | ||||||
Basic earnings per common share
|
$ | 0.41 | $ | 0.37 | ||||
Diluted earnings per common share:
|
||||||||
Net income available to common stockholders
|
557,878 | 496,499 | ||||||
Weighted average common shares outstanding - basic
|
1,347,948 | 1,344,948 | ||||||
Effect of dilutive securities:
|
||||||||
Stock Options1
|
- | - | ||||||
Restricted Stock
|
3,500 | 3,500 | ||||||
Common stock warrant2
|
6,083 | - | ||||||
Total diluted average common shares issued and
|
1,357,531 | 1,348,448 | ||||||
outstanding
|
||||||||
Diluted earnings per common share
|
$ | 0.41 | $ | 0.37 | ||||
1For the periods ending March 31, 2011 and 2010, outstanding options to purchase common stock totaled
|
||||||||
51,700 and 65,200, respectively. These options were not dilutive because the exercise price
|
||||||||
of the options exceeded the average closing price for the Company's common stock.
|
||||||||
2For the period ending March 31, 2010, the common stock warrants were not dilutive because the exercise
|
||||||||
price of the warrants exceeded the average closing price for the Company's common stock.
|
Securities available-for-sale as of March 31, 2011 were as follows:
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
Cost
|
Gains
|
(Losses)
|
Fair Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
State and local obligations
|
$ | 6,772,231 | $ | 75,740 | $ | (140,087 | ) | $ | 6,707,884 | |||||||
Mortgage-backed securities(1)
|
15,892,543 | 279,019 | (140,658 | ) | 16,030,904 | |||||||||||
Collateralized mortgage obligations (1)
|
23,450,082 | 105,487 | (162,771 | ) | 23,392,798 | |||||||||||
Corporate bonds
|
2,122,323 | 7 | (12,805 | ) | 2,109,525 | |||||||||||
U.S. Government agencies
|
6,641,935 | 76,708 | (40,791 | ) | 6,677,852 | |||||||||||
Total
|
$ | 54,879,114 | $ | 536,961 | $ | (497,112 | ) | $ | 54,918,963 | |||||||
Securities available-for-sale as of December 31, 2010 were as follows:
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
Cost
|
Gains
|
(Losses)
|
Fair Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
State and local obligations
|
5,103,472 | 25,888 | (139,697 | ) | 4,989,663 | |||||||||||
Mortgage-backed securities (1)
|
13,735,714 | 290,895 | (163,780 | ) | 13,862,829 | |||||||||||
Collateralized mortgage obligations (1)
|
19,469,375 | 59,302 | (240,553 | ) | 19,288,124 | |||||||||||
Corporate bonds
|
1,622,912 | - | (21,676 | ) | 1,601,236 | |||||||||||
U.S. Government agencies
|
8,646,763 | 93,659 | (46,503 | ) | 8,693,919 | |||||||||||
Total
|
$ | 48,578,236 | $ | 469,744 | $ | (612,209 | ) | $ | 48,435,771 | |||||||
(1) All mortgage backed securities and collateralized mortgage obligations consist of securities issued by FNMA, FHLMC or
|
||||||||||||||||
GNMA and are backed by residential mortgage loans.
|
March 31, 2011
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
State and local obligations
|
$ | 2,463,242 | $ | (140,087 | ) | $ | - | $ | - | $ | 2,463,242 | $ | (140,087 | ) | ||||||||||
Mortgage-backed securities
|
7,402,520 | (140,658 | ) | - | - | 7,402,520 | (140,658 | ) | ||||||||||||||||
Collateralized mortgage obligations
|
11,677,423 | (162,771 | ) | - | - | 11,677,423 | (162,771 | ) | ||||||||||||||||
Corporate bonds
|
1,603,890 | (12,805 | ) | - | - | 1,603,890 | (12,805 | ) | ||||||||||||||||
U.S. Government agencies
|
1,585,124 | (40,791 | ) | - | - | 1,585,124 | (40,791 | ) | ||||||||||||||||
Total
|
$ | 24,732,199 | $ | (497,112 | ) | $ | - | $ | - | $ | 24,732,199 | $ | (497,112 | ) | ||||||||||
December 31, 2010
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
State and local obligations
|
3,096,965 | $ | (139,697 | ) | $ | - | $ | - | $ | 3,096,965 | $ | (139,697 | ) | |||||||||||
Mortgage-backed securities
|
5,810,547 | (163,780 | ) | - | - | 5,810,547 | (163,780 | ) | ||||||||||||||||
Collateralized mortgage obligations
|
12,776,228 | (240,553 | ) | - | - | 12,776,228 | (240,553 | ) | ||||||||||||||||
Corporate bonds
|
1,601,236 | (21,676 | ) | - | - | 1,601,236 | (21,676 | ) | ||||||||||||||||
U.S. Government agencies
|
1,577,870 | (46,503 | ) | - | - | 1,577,870 | (46,503 | ) | ||||||||||||||||
Total
|
$ | 24,862,846 | $ | (612,209 | ) | $ | - | $ | - | $ | 24,862,846 | $ | (612,209 | ) |
Debt Securities Available-for-Sale
|
||||||||
March 31, 2011
|
||||||||
Amortized
|
||||||||
Cost
|
Fair Value
|
|||||||
Due in one year or less
|
$ | 45,000 | $ | 44,597 | ||||
Due from one to five years
|
8,079,184 | 8,136,846 | ||||||
Due from five to ten years
|
3,922,363 | 3,952,972 | ||||||
Due over 10 years
|
3,489,942 | 3,360,846 | ||||||
Mortgage-backed securities and
|
||||||||
collateralized mortgage obligations
|
39,342,625 | 39,423,702 | ||||||
$ | 54,879,114 | $ | 54,918,963 |
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Other comprehensive income:
|
||||||||
Securities for which a portion of an other-than-temporary impairment has been recorded in
|
||||||||
earnings:
|
||||||||
Unrealized holding gain/(loss) arising during the period
|
$ | - | $ | 851 | ||||
(Gain)/loss recognized in earnings
|
- | (7,652 | ) | |||||
Net unrealized gain on securities with other-than-temporary impairment before tax expense
|
- | (6,801 | ) | |||||
Tax expense
|
- | - | ||||||
Net unrealized (losses) on securities with other-than-temporary impairment, net of tax in other
|
||||||||
comprehensive income (loss)
|
- | (6,801 | ) | |||||
Other securities:
|
||||||||
Unrealized holding gains (losses) arising during the period
|
182,313 | (60,870 | ) | |||||
Realized net (gains) losses recognized into net income (loss)
|
- | - | ||||||
Net unrealized gains (losses) on other securities before tax (expense) benefit
|
182,313 | (60,870 | ) | |||||
Tax (expense) benefit
|
(68,003 | ) | 22,705 | |||||
Net unrealized gains (losses) on other securities, net of tax in other comprehensive income (loss)
|
114,310 | (38,165 | ) | |||||
Total other comprehensive income (loss)
|
$ | 114,310 | $ | (44,966 | ) |
March 31, 2011
|
December 31, 2010
|
|||||||
First mortgage loans:
|
||||||||
Secured by one- to four-family residences
|
$ | 137,943,801 | $ | 141,061,321 | ||||
Secured by:
|
||||||||
Multifamily properties
|
55,752,885 | 57,461,170 | ||||||
Commercial properties
|
64,493,958 | 69,253,792 | ||||||
Construction and land development loans
|
3,693,023 | 4,193,756 | ||||||
Total first mortgage loans
|
261,883,667 | 271,970,039 | ||||||
Consumer loans:
|
||||||||
Automobile
|
13,049,708 | 13,548,710 | ||||||
Second mortgage
|
49,813,418 | 51,349,053 | ||||||
Other
|
4,166,221 | 4,282,717 | ||||||
Total consumer loans
|
67,029,347 | 69,180,480 | ||||||
Total loans
|
328,913,014 | 341,150,519 | ||||||
Undisbursed portion of construction loans
|
(689,941 | ) | (295,609 | ) | ||||
Unearned premiums, net
|
76,307 | 83,528 | ||||||
Net deferred loan origination fees
|
(325,033 | ) | (331,010 | ) | ||||
$ | 327,974,347 | $ | 340,607,428 |
For the Three Months Ended March 31, 2011
|
||||||||||||||||||||||||
1-4 Family
|
||||||||||||||||||||||||
Commercial
|
Construction and
|
Multi-Family
|
Residential
|
|||||||||||||||||||||
Real Estate
|
Land Development
|
Real Estate
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,555,094 | $ | 354,911 | $ | 803,850 | $ | 1,009,630 | $ | 1,423,376 | $ | 6,146,861 | ||||||||||||
Charge-offs
|
(101,123 | ) | (70,000 | ) | - | (14,955 | ) | (25,349 | ) | (211,427 | ) | |||||||||||||
Recoveries
|
- | - | - | 127 | 5,513 | 5,640 | ||||||||||||||||||
Provisions
|
36,191 | 4,349 | 66,587 | 20,653 | 172,220 | 300,000 | ||||||||||||||||||
Ending balance
|
$ | 2,490,162 | $ | 289,260 | $ | 870,437 | $ | 1,015,455 | $ | 1,575,760 | $ | 6,241,074 | ||||||||||||
For the Year Ended December 31, 2010
|
||||||||||||||||||||||||
1-4 Family
|
||||||||||||||||||||||||
Commercial
|
Construction and
|
Multi-Family
|
Residential
|
|||||||||||||||||||||
Real Estate
|
Land Development
|
Real Estate
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Beginning balance
|
$ | 1,991,889 | $ | 2,510,656 | $ | 620,475 | $ | 679,097 | $ | 1,368,478 | $ | 7,170,595 | ||||||||||||
Charge-offs
|
(539,000 | ) | (3,491,360 | ) | (26,243 | ) | (511,065 | ) | (563,920 | ) | (5,131,588 | ) | ||||||||||||
Recoveries
|
- | - | - | 675 | 16,179 | 16,854 | ||||||||||||||||||
Provisions
|
1,102,205 | 1,335,615 | 209,618 | 840,923 | 602,639 | 4,091,000 | ||||||||||||||||||
Ending balance
|
$ | 2,555,094 | $ | 354,911 | $ | 803,850 | $ | 1,009,630 | $ | 1,423,376 | $ | 6,146,861 |
March 31, 2011
|
March 31, 2010
|
|||||||
Balance, beginning
|
$ | 6,146,861 | $ | 7,170,595 | ||||
Provision charged to income
|
300,000 | 800,000 | ||||||
Loans charged off
|
(211,427 | ) | (214,193 | ) | ||||
Recoveries
|
5,640 | 4,495 | ||||||
Balance, ending
|
$ | 6,241,074 | $ | 7,760,897 |
March 31, 2011
|
||||||||||||||||||||||||
1-4 Family
|
||||||||||||||||||||||||
Commercial
|
Construction and
|
Multi-Family
|
Residential
|
|||||||||||||||||||||
Real Estate
|
Land Development
|
Real Estate
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,169,995 | $ | 167,000 | $ | 303,802 | $ | 102,038 | $ | 377,211 | $ | 2,120,046 | ||||||||||||
Collectively evaluated for impairment
|
1,320,167 | 122,260 | 566,635 | 913,417 | 1,198,549 | 4,121,028 | ||||||||||||||||||
Total ending allowance balance
|
$ | 2,490,162 | $ | 289,260 | $ | 870,437 | $ | 1,015,455 | $ | 1,575,760 | $ | 6,241,074 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 11,804,502 | $ | 2,770,342 | $ | 1,558,628 | $ | 5,277,721 | $ | 1,014,038 | $ | 22,425,231 | ||||||||||||
Collectively evaluated for impairment
|
52,689,456 | 922,681 | 54,194,257 | 132,666,080 | 66,015,309 | 306,487,783 | ||||||||||||||||||
Total ending loan balance
|
$ | 64,493,958 | $ | 3,693,023 | $ | 55,752,885 | $ | 137,943,801 | $ | 67,029,347 | $ | 328,913,014 | ||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
1-4 Family
|
||||||||||||||||||||||||
Commercial
|
Construction and
|
Multi-Family
|
Residential
|
|||||||||||||||||||||
Real Estate
|
Land Development
|
Real Estate
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,121,500 | $ | 237,000 | $ | 201,500 | $ | 85,111 | $ | 115,683 | $ | 1,760,794 | ||||||||||||
Collectively evaluated for impairment
|
1,433,594 | 117,911 | 602,350 | 924,519 | 1,307,693 | 4,386,067 | ||||||||||||||||||
Total ending allowance balance
|
$ | 2,555,094 | $ | 354,911 | $ | 803,850 | $ | 1,009,630 | $ | 1,423,376 | $ | 6,146,861 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 12,194,848 | $ | 3,301,345 | $ | 1,558,628 | $ | 5,167,369 | $ | 607,064 | $ | 22,829,254 | ||||||||||||
Collectively evaluated for impairment
|
57,058,944 | 892,411 | 55,902,542 | 135,893,952 | 68,573,416 | 318,321,265 | ||||||||||||||||||
Total ending loan balance
|
$ | 69,253,792 | $ | 4,193,756 | $ | 57,461,170 | $ | 141,061,321 | $ | 69,180,480 | $ | 341,150,519 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Unpaid Principal
|
Associated
|
Unpaid Principal
|
Associated
|
|||||||||||||||||||||
Carrying Amount
|
Balance
|
Allowance
|
Carrying Amount
|
Balance
|
Allowance
|
|||||||||||||||||||
With no specific allowance recorded:
|
||||||||||||||||||||||||
Commercial Real Estate
|
$ | 1,365,098 | $ | 1,365,098 | $ | - | $ | 1,584,352 | $ | 1,852,852 | $ | - | ||||||||||||
Construction and Land Development
|
892,017 | 2,962,017 | - | 892,017 | 2,962,017 | - | ||||||||||||||||||
Multi-Family Real Esate
|
- | - | - | - | - | - | ||||||||||||||||||
1-4 Family Residential Real Estate
|
4,453,416 | 4,677,047 | - | 4,560,823 | 4,872,752 | - | ||||||||||||||||||
Consumer
|
378,179 | 387,172 | - | 433,793 | 442,786 | - | ||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial Real Estate
|
10,439,404 | 10,439,404 | 1,169,995 | 10,610,496 | 10,610,496 | 1,121,500 | ||||||||||||||||||
Construction and Land Development
|
1,878,325 | 1,878,325 | 167,000 | 2,409,328 | 2,409,328 | 237,000 | ||||||||||||||||||
Multi-Family Real Esate
|
1,558,628 | 1,558,628 | 303,802 | 1,558,628 | 1,558,628 | 201,500 | ||||||||||||||||||
1-4 Family Residential Real Estate
|
824,305 | 824,305 | 102,038 | 606,546 | 606,546 | 85,111 | ||||||||||||||||||
Consumer
|
635,859 | 635,859 | 377,211 | 173,271 | 173,271 | 115,683 | ||||||||||||||||||
Total:
|
||||||||||||||||||||||||
Commercial Real Estate
|
11,804,502 | 11,804,502 | 1,169,995 | 12,194,848 | 12,463,348 | 1,121,500 | ||||||||||||||||||
Construction and Land Development
|
2,770,342 | 4,840,342 | 167,000 | 3,301,345 | 5,371,345 | 237,000 | ||||||||||||||||||
Multi-Family Real Esate
|
1,558,628 | 1,558,628 | 303,802 | 1,558,628 | 1,558,628 | 201,500 | ||||||||||||||||||
1-4 Family Residential Real Estate
|
5,277,721 | 5,501,352 | 102,038 | 5,167,369 | 5,479,298 | 85,111 | ||||||||||||||||||
Consumer
|
1,014,038 | 1,023,031 | 377,211 | 607,064 | 616,057 | 115,683 | ||||||||||||||||||
$ | 22,425,231 | $ | 24,727,855 | $ | 2,120,046 | $ | 22,829,254 | $ | 25,488,676 | $ | 1,760,794 |
Average
|
Interest
|
|||||||
Balance
|
Income
|
|||||||
Commercial Real Estate
|
12,051,100 | 119,575 | ||||||
Construction and Loan Development
|
2,948,643 | - | ||||||
Multi-Family Real Estate
|
1,558,628 | - | ||||||
1-4 Family Residential Real Estate
|
5,154,061 | 69,305 | ||||||
Consumer
|
919,527 | 11,494 | ||||||
22,631,959 | 200,314 |
Commercial Loans
|
||||||||||||||||||||||||||||||||
Credit risk profile by internally assigned grade
|
||||||||||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
|||||||||||||||||||||||||||||||
Commercial
|
Construction and
|
Multi-Family
|
Commercial
|
Construction and
|
Multi-Family
|
|||||||||||||||||||||||||||
Real Estate
|
Land Development
|
Real Estate
|
Total
|
Real Estate
|
Land Development
|
Real Estate
|
Total
|
|||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 48,011,034 | $ | 922,681 | $ | 51,593,833 | $ | 100,527,548 | $ | 53,092,384 | $ | 892,411 | $ | 53,291,156 | $ | 107,275,951 | ||||||||||||||||
Watch
|
4,242,059 | - | 2,600,424 | 6,842,483 | 3,966,560 | - | 2,611,386 | 6,577,946 | ||||||||||||||||||||||||
Special Mention
|
436,363 | - | - | 436,363 | - | - | - | - | ||||||||||||||||||||||||
Substandard
|
10,730,058 | 2,603,342 | 1,254,826 | 14,588,226 | 11,073,348 | 3,064,345 | 1,357,128 | 15,494,821 | ||||||||||||||||||||||||
Doubtful
|
1,074,444 | 167,000 | 303,802 | 1,545,246 | 1,121,500 | 237,000 | 201,500 | 1,560,000 | ||||||||||||||||||||||||
$ | 64,493,958 | $ | 3,693,023 | $ | 55,752,885 | $ | 123,939,866 | $ | 69,253,792 | $ | 4,193,756 | $ | 57,461,170 | $ | 130,908,718 | |||||||||||||||||
Residential Real Estate and Consumer Loans
|
||||||||||||||||||||||||||||||||
Credit risk profile based on delinquency status
|
||||||||||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
|||||||||||||||||||||||||||||||
1-4 Family
|
1-4 Family
|
|||||||||||||||||||||||||||||||
Residential
|
Second
|
Other Consumer
|
Residential
|
Second
|
Other Consumer
|
|||||||||||||||||||||||||||
Real Estate
|
Mortgage
|
Loans
|
Total
|
Real Estate
|
Mortgage
|
Loans
|
Total
|
|||||||||||||||||||||||||
Current
|
$ | 134,982,741 | $ | 48,849,122 | $ | 17,034,839 | $ | 200,866,702 | $ | 137,430,650 | $ | 50,136,653 | $ | 17,590,417 | $ | 205,157,720 | ||||||||||||||||
Past due 30-89 days
|
1,422,935 | 357,107 | 145,629 | 1,925,671 | 1,473,094 | 786,900 | 203,341 | 2,463,335 | ||||||||||||||||||||||||
Past due 90 days and greater
|
1,538,125 | 607,189 | 35,461 | 2,180,775 | 2,157,577 | 425,500 | 37,669 | 2,620,746 | ||||||||||||||||||||||||
$ | 137,943,801 | $ | 49,813,418 | $ | 17,215,929 | $ | 204,973,148 | $ | 141,061,321 | $ | 51,349,053 | $ | 17,831,427 | $ | 210,241,801 |
30-89 Days
|
90 Days Past Due
|
|||||||||||||||||||
Past Due
|
and Greater
|
Total Past Due
|
Current
|
Total
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
Commercial Loans:
|
||||||||||||||||||||
Commercial Real Estate
|
$ | - | $ | 195,682 | $ | 195,682 | $ | 64,298,276 | $ | 64,493,958 | ||||||||||
Construction and Land Development
|
- | 1,620,395 | 1,620,395 | 2,072,628 | 3,693,023 | |||||||||||||||
Multi-Family Real Estate
|
- | 1,558,628 | 1,558,628 | 54,194,257 | 55,752,885 | |||||||||||||||
1-4 Family Residential Real Estate
|
1,422,935 | 1,538,125 | 2,961,060 | 134,982,741 | 137,943,801 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Second mortgage
|
357,107 | 607,189 | 964,296 | 48,849,122 | 49,813,418 | |||||||||||||||
Other consumer loans
|
145,629 | 35,461 | 181,090 | 17,034,839 | 17,215,929 | |||||||||||||||
$ | 1,925,671 | $ | 5,555,480 | $ | 7,481,151 | $ | 321,431,863 | $ | 328,913,014 | |||||||||||
December 31, 2010
|
||||||||||||||||||||
Commercial Loans:
|
||||||||||||||||||||
Commercial Real Estate
|
$ | - | $ | 440,193 | $ | 440,193 | $ | 68,813,599 | $ | 69,253,792 | ||||||||||
Construction and Land Development
|
- | 1,411,752 | 1,411,752 | 2,782,004 | 4,193,756 | |||||||||||||||
Multi-Family Real Estate
|
373,518 | 1,558,628 | 1,932,146 | 55,529,024 | 57,461,170 | |||||||||||||||
1-4 Family Residential Real Estate
|
1,473,094 | 2,157,577 | 3,630,671 | 137,430,650 | 141,061,321 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Second mortgage
|
786,900 | 425,500 | 1,212,400 | 50,136,653 | 51,349,053 | |||||||||||||||
Other consumer loans
|
203,341 | 37,669 | 241,010 | 17,590,417 | 17,831,427 | |||||||||||||||
$ | 2,836,853 | $ | 6,031,319 | $ | 8,868,172 | $ | 332,282,347 | $ | 341,150,519 |
March 31, 2011
|
December 31, 2010
|
|||||||
Commercial Loans:
|
||||||||
Commercial Real Estate
|
$ | 3,513,095 | $ | 5,408,650 | ||||
Construction and Land Development
|
2,770,342 | 1,679,839 | ||||||
Multi-Family Real Estate
|
1,558,628 | 1,558,628 | ||||||
1-4 Family Residential Real Estate
|
2,164,285 | 2,459,406 | ||||||
Consumer:
|
||||||||
Second mortgage
|
669,479 | 425,500 | ||||||
Other consumer loans
|
35,461 | 37,669 | ||||||
$ | 10,711,290 | $ | 11,569,692 |
1.
|
Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
|
||
2.
|
Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
|
||
3.
|
Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.
|
Fair Value Measurements at March 31, 2011
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active Markets
|
Significant Other
|
Significant
|
||||||||||||||
for Identical Assets
|
Observable Inputs
|
Unobservable Inputs
|
||||||||||||||
Description
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||
Debt securities:
|
||||||||||||||||
State and local obligations
|
$ | - | $ | 6,707,884 | $ | - | $ | 6,707,884 | ||||||||
Mortgage-backed securities
|
- | 16,030,904 | - | 16,030,904 | ||||||||||||
Collateralized mortgage obligations
|
- | 23,392,798 | - | 23,392,798 | ||||||||||||
Corporate bonds
|
2,109,525 | - | - | 2,109,525 | ||||||||||||
U.S. Government agencies
|
- | 6,677,852 | - | 6,677,852 | ||||||||||||
Total securities available-for-sale
|
$ | 2,109,525 | $ | 52,809,438 | $ | - | $ | 54,918,963 | ||||||||
Fair Value Measurements at December 31, 2010
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active Markets
|
Significant Other
|
Significant
|
||||||||||||||
for Identical Assets
|
Observable Inputs
|
Unobservable Inputs
|
||||||||||||||
Description
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||
Securities available-for-sale
|
||||||||||||||||
State and local obligations
|
$ | - | $ | 4,989,663 | $ | - | $ | 4,989,663 | ||||||||
Mortgage-backed securities
|
- | 13,862,829 | - | 13,862,829 | ||||||||||||
Collateralized mortgage obligations
|
- | 19,288,124 | - | 19,288,124 | ||||||||||||
Corporate bonds
|
1,601,236 | - | - | 1,601,236 | ||||||||||||
U.S. Government agencies
|
- | 8,693,919 | - | 8,693,919 | ||||||||||||
Total securities available-for-sale
|
$ | 1,601,236 | 46,834,535 | - | 48,435,771 |
Fair Value Measurements at March 31, 2011
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active Markets
|
Significant Other
|
Significant
|
||||||||||||||
for Identical Assets
|
Observable Inputs
|
Unobservable Inputs
|
||||||||||||||
Description
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 13,312,026 | $ | 13,312,026 | ||||||||
Foreclosed real estate
|
- | - | 3,354,298 | 3,354,298 | ||||||||||||
Total
|
$ | - | $ | - | $ | 16,666,324 | $ | 16,666,324 | ||||||||
Fair Value Measurements at December 31, 2010
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active Markets
|
Significant Other
|
Significant
|
||||||||||||||
for Identical Assets
|
Observable Inputs
|
Unobservable Inputs
|
||||||||||||||
Description
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 13,597,475 | $ | 13,597,475 | ||||||||
Foreclosed real estate
|
- | - | 4,586,399 | 4,586,399 | ||||||||||||
Total
|
$ | - | $ | - | $ | 18,183,874 | $ | 18,183,874 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(nearest 000)
|
(nearest 000)
|
|||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and due from banks
|
$ | 40,662,389 | $ | 40,662,000 | $ | 20,603,808 | $ | 20,604,000 | ||||||||
Investments in certificates of deposit
|
8,414,000 | 8,414,000 | 12,689,000 | 12,689,000 | ||||||||||||
Securities available-for-sale
|
54,918,963 | 54,919,000 | 48,435,771 | 48,436,000 | ||||||||||||
FHLB stock
|
2,516,900 | 2,517,000 | 3,017,200 | 3,017,000 | ||||||||||||
Loans, net
|
321,733,273 | 330,317,000 | 334,460,567 | 341,055,000 | ||||||||||||
Loans held for sale
|
230,000 | 230,000 | 332,178 | 332,000 | ||||||||||||
Accrued interest receivable
|
1,705,619 | 1,706,000 | 1,754,292 | 1,754,000 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
367,426,237 | 370,482,000 | 349,832,904 | 353,328,000 | ||||||||||||
Borrowed funds
|
39,250,000 | 40,676,000 | 49,250,000 | 51,118,000 | ||||||||||||
Accrued interest payable
|
137,577 | 138,000 | 162,034 | 162,000 |
Three Months Ended March 31, 2011
|
Three Months Ended March 31, 2010
|
|||||||||||||||||||||||
Traditional
|
Traditional
|
|||||||||||||||||||||||
Banking
|
All Others
|
Total
|
Banking
|
All Others
|
Total
|
|||||||||||||||||||
Interest income
|
$ | 5,175,607 | $ | - | $ | 5,175,607 | $ | 5,787,786 | $ | - | $ | 5,787,786 | ||||||||||||
Interest expense
|
1,578,898 | 27,215 | 1,606,113 | 1,994,037 | 28,068 | 2,022,105 | ||||||||||||||||||
Net interest income (loss)
|
3,596,709 | (27,215 | ) | 3,569,494 | 3,793,749 | (28,068 | ) | 3,765,681 | ||||||||||||||||
Provision for loan losses
|
300,000 | - | 300,000 | 800,000 | - | 800,000 | ||||||||||||||||||
Net interest income (loss) after
|
||||||||||||||||||||||||
provision for loan losses
|
3,296,709 | (27,215 | ) | 3,269,494 | 2,993,749 | (28,068 | ) | 2,965,681 | ||||||||||||||||
Noninterest income
|
1,238,890 | 395,200 | 1,634,090 | 1,240,943 | 423,654 | 1,664,597 | ||||||||||||||||||
Securities gains (losses), net
|
- | - | - | 7,652 | - | 7,652 | ||||||||||||||||||
Noninterest expense
|
3,528,032 | 409,420 | 3,937,452 | 3,323,797 | 429,025 | 3,752,822 | ||||||||||||||||||
Income (loss) before income taxes
|
1,007,567 | (41,435 | ) | 966,132 | 918,547 | (33,439 | ) | 885,108 | ||||||||||||||||
Provision for income taxes
|
280,100 | (4,200 | ) | 275,900 | 263,700 | (7,200 | ) | 256,500 | ||||||||||||||||
Net income (loss)
|
$ | 727,467 | $ | (37,235 | ) | $ | 690,232 | $ | 654,847 | $ | (26,239 | ) | $ | 628,608 | ||||||||||
Inter-segment revenue (expense)
|
$ | 144,150 | $ | (144,150 | ) | $ | - | $ | 175,274 | $ | (175,274 | ) | $ | - | ||||||||||
Total assets
|
$ | 456,147,437 | $ | 3,460,657 | $ | 459,608,094 | $ | 448,802,731 | $ | 3,625,259 | $ | 452,427,990 | ||||||||||||
Total deposits
|
$ | 367,426,237 | $ | - | $ | 367,426,237 | $ | 342,107,213 | $ | - | $ | 342,107,213 |
•
|
The economy continues to show signs of recovery, as evidenced by an increase in consumer spending and stabilization of the labor market, the housing sector, and financial markets. However, unemployment levels remained elevated, real estate values remained depressed and demand for housing continued to be weak.
|
||
•
|
|
Loans amounted to $328.9 million as of March 31, 2011 compared to $341.2 million as of December 31, 2010, representing a decrease of 3.6%. The decline in the loan portfolio is primarily the result of a decrease in loan volume due to low demand for new loans as payments and prepayments exceeded originations in most loan categories.
|
|
•
|
Nonperforming assets decreased $2.1 million from $16.2 million at December 31, 2010 to $14.1 million at March 31, 2011. The Bank recorded a provision for loan losses of $300,000 for the three months ended March 31, 2011 compared to $800,000 for the same period in 2010. The Company continues to monitor its loan portfolio with the objective of minimizing defaults or write-downs. Despite these actions, the possibility of additional losses in loans and losses in the value of real estate owned can not be eliminated.
|
||
•
|
Deposits increased $17.6 million for the first three months of the year. Growth occurred primarily in interest bearing demand deposits, savings, money markets and certificates of deposit.
|
||
•
|
Capital remains strong with average stockholders equity as a percentage of average total assets increasing to 11.0% at March 31, 2011 from 10.8% at December 31, 2010. The Bank continues to be considered “well capitalized” under regulatory capital requirements with a total risk based capital ratio of 17.3% at March 31, 2011.
|
||
•
|
The Company has increased liquidity as it continues investing funds in securities available-for-sale and investments in certificates of deposits.
|
March 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
First mortgage loans:
|
||||||||
One- to four-family residential
|
$ | 2,164 | $ | 2,460 | ||||
Multifamily and commercial properties
|
7,842 | 8,647 | ||||||
Consumer loans
|
705 | 463 | ||||||
Total nonaccrual loans
|
10,711 | 11,570 | ||||||
90 days past due loans (still
|
||||||||
accruing interest)
|
11 | - | ||||||
Other nonperforming loans
|
- | - | ||||||
Total nonperforming loans
|
10,722 | 11,570 | ||||||
Total foreclosed real estate
|
3,354 | 4,586 | ||||||
Other nonperforming assets
|
22 | - | ||||||
Total nonperforming assets
|
$ | 14,098 | $ | 16,156 | ||||
Total nonaccrual loans to net loans receivable
|
3.33 | % | 3.46 | % | ||||
Total nonaccrual loans to total assets
|
2.33 | % | 2.56 | % | ||||
Total nonperforming assets to total assets
|
3.07 | % | 3.57 | % |
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Net income
|
$ | 690,232 | $ | 628,608 | ||||
Average assets
|
451,668,232 | 456,276,867 | ||||||
Average stockholders equity
|
49,473,381 | 48,640,617 | ||||||
Return on assets
|
0.61 | % | 0.55 | % | ||||
Return on equity
|
5.58 | % | 5.17 | % | ||||
Efficiency ratio
|
75.67 | % | 69.11 | % | ||||
Definitions of ratios:
|
||||||||
Return on assets - annualized net income divided by average assets.
|
||||||||
Return on equity - annualized net income divided by average stockholders equity.
|
||||||||
Efficiency ratio - noninterest expense divided by the sum of noninterest income plus net interest income.
|
Data for the three months ended March 31:
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 334,558,557 | $ | 4,759,385 | 5.72 | % | $ | 376,160,171 | $ | 5,553,110 | 5.94 | % | ||||||||||||
Securities available-for-sale
|
53,568,546 | 370,753 | 2.77 | % | 27,979,694 | 221,556 | 3.17 | % | ||||||||||||||||
Investments in certificates of deposit
|
11,305,326 | 35,686 | 1.28 | % | 644,710 | 2,248 | 1.41 | % | ||||||||||||||||
Interest-bearing cash
|
19,225,734 | 9,783 | 0.21 | % | 21,922,317 | 10,872 | 0.20 | % | ||||||||||||||||
Total interest-earning assets
|
$ | 418,658,163 | $ | 5,175,607 | 4.97 | % | $ | 426,706,892 | $ | 5,787,786 | 5.45 | % | ||||||||||||
Noninterest-earning assets
|
33,010,069 | 29,569,975 | ||||||||||||||||||||||
Total assets
|
$ | 451,668,232 | $ | 456,276,867 | ||||||||||||||||||||
Liabilities and Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW and money market savings
|
$ | 152,169,618 | $ | 315,676 | 0.84 | % | $ | 117,147,812 | $ | 179,352 | 0.62 | % | ||||||||||||
Savings
|
31,406,321 | 10,403 | 0.13 | % | 29,851,447 | 14,760 | 0.20 | % | ||||||||||||||||
Certificates of Deposit
|
151,906,364 | 889,419 | 2.37 | % | 174,797,944 | 1,133,398 | 2.63 | % | ||||||||||||||||
Borrowed funds
|
42,583,333 | 390,615 | 3.72 | % | 63,001,854 | 694,595 | 4.47 | % | ||||||||||||||||
Total interest-bearing liabilities
|
$ | 378,065,636 | $ | 1,606,113 | 1.72 | % | $ | 384,799,057 | $ | 2,022,105 | 2.13 | % | ||||||||||||
Noninterest-bearing liabilities
|
24,129,215 | 22,837,193 | ||||||||||||||||||||||
Total liabilities
|
$ | 402,194,851 | $ | 407,636,250 | ||||||||||||||||||||
Equity
|
49,473,381 | 48,640,617 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 451,668,232 | $ | 456,276,867 | ||||||||||||||||||||
Net interest income
|
$ | 3,569,494 | $ | 3,765,681 | ||||||||||||||||||||
Net interest rate spread
|
3.25 | % | 3.32 | % | ||||||||||||||||||||
Net interest margin
|
3.41 | % | 3.53 | % | ||||||||||||||||||||
Ratio of average interest-earnings assets to
|
||||||||||||||||||||||||
average interest-bearing liabilities
|
110.74 | % | 110.89 | % |
Three Months Ended March 31,
|
||||||||||||||||
2011
|
2010
|
Change
|
Change %
|
|||||||||||||
Noninterest income:
|
||||||||||||||||
Fees and service charges
|
$ | 1,149,944 | $ | 1,076,762 | $ | 73,182 | 6.8 | % | ||||||||
Abstract fees
|
131,219 | 142,621 | (11,402 | ) | -8.0 | % | ||||||||||
Mortgage banking income
|
116,059 | 112,187 | 3,872 | 3.5 | % | |||||||||||
Loan prepayment fees
|
1,200 | 10,079 | (8,879 | ) | -88.1 | % | ||||||||||
Other income:
|
||||||||||||||||
Increase in CSV - BOLI
|
58,102 | 59,743 | (1,641 | ) | -2.7 | % | ||||||||||
Investment and Insurance sales
|
163,942 | 170,895 | (6,953 | ) | -4.1 | % | ||||||||||
Foreclosed real estate net earnings
|
(135,128 | ) | (41,060 | ) | (94,068 | ) | 229.1 | % | ||||||||
Rental income
|
121,819 | 121,657 | 162 | 0.1 | % | |||||||||||
All other
|
26,933 | 11,713 | 15,220 | 129.9 | % | |||||||||||
Total other income
|
$ | 235,668 | $ | 322,948 | $ | (87,280 | ) | -27.0 | % | |||||||
Total noninterest income
|
$ | 1,634,090 | $ | 1,664,597 | $ | (30,507 | ) | -1.8 | % |
Three Months Ended March 31,
|
||||||||||||||||
2011
|
2010
|
Change
|
Change %
|
|||||||||||||
Noninterest expense:
|
||||||||||||||||
Compensation and employee benefits
|
$ | 1,879,448 | $ | 1,889,859 | $ | (10,411 | ) | -0.6 | % | |||||||
Premises and equipment
|
504,805 | 501,090 | 3,715 | 0.7 | % | |||||||||||
Data processing
|
193,452 | 213,123 | (19,671 | ) | -9.2 | % | ||||||||||
FDIC insurance expense
|
143,811 | 143,817 | (6 | ) | 0.0 | % | ||||||||||
Foreclosed real estate impairment
|
71,538 | 9,958 | 61,580 | 618.4 | % | |||||||||||
Other expense:
|
||||||||||||||||
Advertising and promotions
|
85,624 | 66,508 | 19,116 | 28.7 | % | |||||||||||
Professional fees
|
172,058 | 142,050 | 30,008 | 21.1 | % | |||||||||||
Printing, postage, and supplies
|
118,385 | 92,798 | 25,587 | 27.6 | % | |||||||||||
Checking account charges
|
66,600 | 82,914 | (16,314 | ) | -19.7 | % | ||||||||||
Insurance
|
37,752 | 42,750 | (4,998 | ) | -11.7 | % | ||||||||||
OTS general assessment
|
32,197 | 34,329 | (2,132 | ) | -6.2 | % | ||||||||||
Telephone
|
34,907 | 32,571 | 2,336 | 7.2 | % | |||||||||||
Apartment operating costs
|
95,447 | 89,836 | 5,611 | 6.2 | % | |||||||||||
Employee costs
|
56,612 | 42,622 | 13,990 | 32.8 | % | |||||||||||
ATM expense
|
162,127 | 145,842 | 16,285 | 11.2 | % | |||||||||||
All other
|
282,689 | 222,755 | 59,934 | 26.9 | % | |||||||||||
Total other expense
|
$ | 1,144,398 | $ | 994,975 | $ | 149,423 | 15.0 | % | ||||||||
Total noninterest expense
|
$ | 3,937,452 | $ | 3,752,822 | $ | 184,630 | 4.9 | % |
To Be Well-Capitalized
|
||||||||||||||||||||||||
For Capital
|
Under Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Action Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(000's)
|
(000's)
|
(000's)
|
||||||||||||||||||||||
As of March 31, 2011:
|
||||||||||||||||||||||||
Total Capital (to risk-weighted assets)
|
$ | 50,620 | 17.3 | % | $ | 23,382 | 8.0 | % | $ | 29,227 | 10.0 | % | ||||||||||||
Tier I Capital (to risk-weighted assets)
|
46,997 | 16.1 | 11,691 | 4.0 | 17,536 | 6.0 | ||||||||||||||||||
Tier I (Core) Capital (to adjusted assets)
|
46,997 | 10.2 | 18,367 | 4.0 | 22,959 | 5.0 | ||||||||||||||||||
Tangible Capital (to adjusted assets)
|
46,997 | 10.2 | 6,888 | 1.5 | - | - | ||||||||||||||||||
As of December 31, 2010:
|
||||||||||||||||||||||||
Total Capital (to risk-weighted assets)
|
$ | 50,029 | 16.5 | % | $ | 24,194 | 8.0 | % | $ | 30,242 | 10.0 | % | ||||||||||||
Tier I Capital (to risk-weighted assets)
|
46,278 | 15.3 | 12,097 | 4.0 | 18,145 | 6.0 | ||||||||||||||||||
Tier I (Core) Capital (to adjusted assets)
|
46,278 | 10.2 | 18,096 | 4.0 | 22,620 | 5.0 | ||||||||||||||||||
Tangible Capital (to adjusted assets)
|
46,278 | 10.2 | 6,786 | 1.5 | - | - |
Exhibit No.
|
Description
|
Reference No.
|
3.1
|
Articles of Incorporation of North Central Bancshares, Inc.
|
(1)
|
3.2
|
Bylaws of North Central Bancshares, Inc., as amended
|
(2)
|
3.3
|
Articles of Amendment to the Articles of Incorporation establishing Series A Preferred Stock
|
(3)
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
*
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
*
|
32.1
|
Section 1350 Certification of Chief Executive Officer
|
*
|
32.2
|
Section 1350 Certification of Chief Financial Officer
|
*
|
*
|
Filed herewith
|
(1)
|
Incorporated herein by reference to the Quarterly Report on Form 10-Q filed with the SEC on August 12, 2009.
|
(2)
|
Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on March 29, 2004.
|
(3)
|
Incorporated herein by reference to the Current Report on Form 8-K filed with the SEC on January 7, 2009.
|
|
SIGNATURES
|
Date: May 11, 2011
|
BY: /s/ David M. Bradley
|
David M. Bradley, Chairman, President & CEO
|
Date: May 11, 2011
|
BY: /s/ Jane M. Funk
|
Jane M. Funk, Chief Financial Officer and Treasurer
|
|
CERTIFICATION
|
|
PURSUANT TO 17 CFR 240.13a-14
|
|
PROMULGATED UNDER
|
|
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
|
I, David M. Bradley, certify that:
|
|||
1.
|
I have reviewed this quarterly report on Form 10-Q of North Central Bancshares, Inc., (the
“Registrant”);
|
||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
||
3.
|
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
||
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
||
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|||
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|||
(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures; and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|||
(d) Disclosed in this report any change in Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
|||
5.
|
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the Registrant’s auditors and the audit committee of the
Registrant’s board of directors (or persons performing the equivalent functions):
|
||
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
|||
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
|||
Date: May 11, 2011
|
/s/ David M. Bradley
|
||
David M. Bradley
|
|||
Chairman, President & CEO
|
|
PURSUANT TO 17 CFR 240.13a-14
|
|
PROMULGATED UNDER
|
|
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
|
I, Jane M. Funk, certify that:
|
|||
1.
|
I have reviewed this quarterly report on Form 10-Q of North Central Bancshares, Inc., (the
“Registrant”);
|
||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
||
3.
|
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
||
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
||
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|||
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|||
(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures; and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|||
(d) Disclosed in this report any change in Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
|||
5.
|
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the Registrant’s auditors and the audit committee of the
Registrant’s board of directors (or persons performing the equivalent functions):
|
||
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
|||
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
|||
Date: May 11, 2011
|
/s/ Jane M.Funk
|
||
Jane M. Funk
|
|||
Chief Financial Officer and Treasurer
|
1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)) and
|
||
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.
|
||
May 11, 2011
|
/s/ David M. Bradley
|
||
Dated
|
David M. Bradley
|
||
Chairman, President & CEO
|
1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)) and
|
||
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.
|
||
May 11, 2011
|
/s/ Jane M. Funk
|
||
Dated
|
Jane M. Funk
|
||
Chief Financial Officer and Treasurer
|