Yes þ
|
No ¨
|
Yes þ
|
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 November 9, 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 September 30, 2011
and December 31, 2010
|
1
|
|
Consolidated Statements of
Operations for the Three Months and Nine Months Ended
September 30, 2011 and 2010
|
2
|
|
Consolidated Statements of
Comprehensive Income for the Three Months and Nine Months Ended September 30, 2011 and 2010
|
3
|
|
Consolidated Statements of
Stockholders’ Equity for the Nine Months
Ended September 30, 2011 and 2010
|
4
|
|
Consolidated Statements of
Cash Flows for the Nine Months Ended
September 30, 2011 and 2010
|
5
|
|
Notes to Consolidated Financial Statements
|
7
|
|
Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations
|
22
|
|
Item 3. Quantitative and Qualitative Disclosures
About Market Risk
|
32
|
|
Item 4. Controls and Procedures
|
32
|
|
Part II. Other Information
|
||
Item 1. Legal Proceedings
|
33
|
|
Item 1A. Risk Factors
|
33
|
|
Item 6. Exhibits
|
34
|
|
Signatures
|
35
|
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
|
||||||||
September 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Cash and due from banks:
|
||||||||
Interest-bearing
|
$ | 9,109,508 | $ | 13,563,234 | ||||
Noninterest-bearing
|
7,850,991 | 7,040,574 | ||||||
Total cash and due from banks
|
16,960,499 | 20,603,808 | ||||||
Investments in certificates of deposit
|
4,576,000 | 12,689,000 | ||||||
Securities available-for-sale
|
68,098,767 | 48,435,771 | ||||||
Restricted equity securities
|
3,430,600 | 3,017,200 | ||||||
Loans receivable
|
313,505,691 | 340,607,428 | ||||||
Allowance for loan losses
|
(5,066,312 | ) | (6,146,861 | ) | ||||
Loans receivable, net
|
308,439,379 | 334,460,567 | ||||||
Loans held for sale
|
469,720 | 332,178 | ||||||
Accrued interest receivable
|
1,622,117 | 1,754,292 | ||||||
Foreclosed real estate
|
1,386,542 | 4,586,399 | ||||||
Premises and equipment, net
|
11,544,541 | 11,498,583 | ||||||
Rental real estate
|
2,061,907 | 2,144,400 | ||||||
Title plant
|
671,704 | 671,704 | ||||||
Deferred taxes
|
1,155,197 | 2,151,594 | ||||||
Bank-owned life insurance
|
5,966,416 | 5,787,864 | ||||||
Prepaid FDIC assessment
|
1,025,686 | 1,353,121 | ||||||
Prepaid expenses and other assets
|
2,310,543 | 2,777,185 | ||||||
Total assets
|
$ | 429,719,618 | $ | 452,263,666 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Deposits
|
$ | 347,025,034 | $ | 349,832,904 | ||||
Borrowed funds
|
27,250,000 | 49,250,000 | ||||||
Advances from borrowers for taxes and insurance
|
951,954 | 1,828,430 | ||||||
Accrued expenses and other liabilities
|
2,355,444 | 2,177,042 | ||||||
Total liabilities
|
377,582,432 | 403,088,376 | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred stock, $.01 par value, authorized 3,000,000
|
||||||||
shares; 10,200 shares were issued and outstanding
|
10,152,134 | 10,137,381 | ||||||
Common stock, $.01 par value, authorized 15,500,000
|
||||||||
shares; at September 30, 2011 and at December 31,
|
||||||||
2010 1,355,073 and 1,351,448 shares were
|
||||||||
issued and outstanding, respectively
|
13,528 | 13,502 | ||||||
Additional paid-in capital
|
18,111,147 | 18,066,437 | ||||||
Retained earnings, substantially restricted
|
22,871,535 | 21,047,295 | ||||||
Accumulated other comprehensive income (loss)
|
988,842 | (89,325 | ) | |||||
Total stockholders' equity
|
52,137,186 | 49,175,290 | ||||||
Total liabilities and stockholders' equity
|
$ | 429,719,618 | $ | 452,263,666 | ||||
See Notes to Consolidated Financial Statements.
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans receivable
|
$ | 4,479,035 | $ | 5,141,320 | $ | 13,837,868 | $ | 15,988,721 | ||||||||
Securities and cash deposits
|
507,877 | 335,154 | 1,444,540 | 869,374 | ||||||||||||
4,986,912 | 5,476,474 | 15,282,408 | 16,858,095 | |||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
1,097,864 | 1,344,400 | 3,531,080 | 4,029,366 | ||||||||||||
Borrowed funds
|
236,856 | 597,899 | 932,935 | 1,899,492 | ||||||||||||
1,334,720 | 1,942,299 | 4,464,015 | 5,928,858 | |||||||||||||
Net interest income
|
3,652,192 | 3,534,175 | 10,818,393 | 10,929,237 | ||||||||||||
Provision for loan losses
|
350,000 | 168,000 | 1,135,000 | 2,578,000 | ||||||||||||
Net interest income after provision for loan losses
|
3,302,192 | 3,366,175 | 9,683,393 | 8,351,237 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Fees and service charges
|
1,247,141 | 1,266,139 | 3,627,806 | 3,559,002 | ||||||||||||
Abstract fees
|
141,193 | 175,187 | 424,698 | 481,871 | ||||||||||||
Mortgage banking income
|
247,421 | 350,701 | 471,488 | 591,656 | ||||||||||||
Loan prepayment fees
|
1,904 | 2,273 | 15,359 | 29,477 | ||||||||||||
Other income
|
322,943 | 403,768 | 894,897 | 1,074,966 | ||||||||||||
Total noninterest income
|
1,960,602 | 2,198,068 | 5,434,248 | 5,736,972 | ||||||||||||
Investment securities gains, 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, net
|
85,614 | - | 115,655 | 7,652 | ||||||||||||
Total securities gains, net
|
85,614 | - | 115,655 | 7,652 | ||||||||||||
Noninterest expense:
|
||||||||||||||||
Compensation and employee benefits
|
2,033,066 | 1,928,708 | 5,823,421 | 5,698,440 | ||||||||||||
Premises and equipment
|
438,977 | 460,204 | 1,386,763 | 1,445,629 | ||||||||||||
Data processing
|
218,950 | 217,465 | 651,850 | 660,445 | ||||||||||||
FDIC insurance expense
|
95,635 | 135,248 | 353,707 | 419,078 | ||||||||||||
Foreclosed real estate impairment
|
64,251 | 7,147 | 453,422 | 323,605 | ||||||||||||
Other expenses
|
1,148,464 | 1,138,599 | 3,607,424 | 3,296,100 | ||||||||||||
Total noninterest expense
|
3,999,343 | 3,887,371 | 12,276,587 | 11,843,297 | ||||||||||||
Income before income taxes
|
1,349,065 | 1,676,872 | 2,956,709 | 2,252,564 | ||||||||||||
Provision for income taxes
|
325,000 | 511,900 | 694,600 | 588,000 | ||||||||||||
Net income
|
$ | 1,024,065 | $ | 1,164,972 | $ | 2,262,109 | $ | 1,664,564 | ||||||||
Preferred stock dividends and accretion of discount
|
$ | 132,482 | $ | 132,230 | $ | 397,253 | $ | 396,508 | ||||||||
Net income available to common stockholders
|
$ | 891,583 | $ | 1,032,742 | $ | 1,864,856 | $ | 1,268,056 | ||||||||
Basic earnings per common share
|
$ | 0.66 | $ | 0.77 | $ | 1.38 | $ | 0.94 | ||||||||
Dilluted earnings per common share
|
$ | 0.65 | $ | 0.76 | $ | 1.37 | $ | 0.94 | ||||||||
Dividends declared per common share
|
$ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.03 | ||||||||
See Notes to Consolidated Financial Statements.
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net Income
|
$ | 1,024,065 | $ | 1,164,972 | $ | 2,262,109 | $ | 1,664,564 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Securities for which a portion of an other-than-temporary impairment has been recorded in
|
||||||||||||||||
earnings:
|
||||||||||||||||
Unrealized holding gain arising during the period
|
- | - | - | 851 | ||||||||||||
(Gains) recognized in earnings
|
- | - | - | (7,652 | ) | |||||||||||
Net unrealized (gains) 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 arising during the period
|
763,935 | 477,039 | 1,835,219 | 652,134 | ||||||||||||
Realized net (gains) recognized into net income
|
(85,614 | ) | - | (115,655 | ) | - | ||||||||||
Net unrealized gains on other securities before tax (expense)
|
678,321 | 477,039 | 1,719,564 | 652,134 | ||||||||||||
Tax (expense)
|
(253,013 | ) | (177,936 | ) | (641,397 | ) | (243,246 | ) | ||||||||
Net unrealized gains on other securities, net of tax in other comprehensive income
|
425,308 | 299,103 | 1,078,167 | 408,888 | ||||||||||||
Other comprehensive income
|
425,308 | 299,103 | 1,078,167 | 402,087 | ||||||||||||
Comprehensive income
|
$ | 1,449,373 | $ | 1,464,075 | $ | 3,340,276 | $ | 2,066,651 | ||||||||
See Notes to Consolidated Financial Statements
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)
|
||||||||||||||||||||||||
Nine Months Ended September 30, 2010 and 2011
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||
Preferred
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Stockholders'
|
|||||||||||||||||||
Stock
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Equity
|
|||||||||||||||||||
Balance, January 1, 2010
|
$ | 10,118,581 | $ | 13,471 | $ | 18,009,468 | $ | 19,924,798 | $ | 212,500 | $ | 48,278,818 | ||||||||||||
Net income
|
- | - | - | 1,664,564 | - | 1,664,564 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 402,087 | 402,087 | ||||||||||||||||||
Dividends on preferred stock
|
- | - | - | (382,500 | ) | - | (382,500 | ) | ||||||||||||||||
Dividends on common stock
|
- | - | - | (40,512 | ) | - | (40,512 | ) | ||||||||||||||||
Employee stock-based compensation
|
- | 23 | 42,922 | - | - | 42,945 | ||||||||||||||||||
Accretion of discount on preferred stock
|
14,008 | - | - | (14,008 | ) | - | - | |||||||||||||||||
Balance, September 30, 2010
|
$ | 10,132,589 | $ | 13,494 | $ | 18,052,390 | $ | 21,152,342 | $ | 614,587 | $ | 49,965,402 | ||||||||||||
Balance, January 1, 2011
|
$ | 10,137,381 | $ | 13,502 | $ | 18,066,437 | $ | 21,047,295 | $ | (89,325 | ) | $ | 49,175,290 | |||||||||||
Net income
|
- | - | - | 2,262,109 | - | 2,262,109 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 1,078,167 | 1,078,167 | ||||||||||||||||||
Dividends on preferred stock
|
- | - | - | (382,500 | ) | - | (382,500 | ) | ||||||||||||||||
Dividends on common stock
|
- | - | - | (40,616 | ) | - | (40,616 | ) | ||||||||||||||||
Employee stock-based compensation
|
- | 26 | 44,710 | - | - | 44,736 | ||||||||||||||||||
Accretion of discount on preferred stock
|
14,753 | - | - | (14,753 | ) | - | - | |||||||||||||||||
Balance, September 30, 2011
|
$ | 10,152,134 | $ | 13,528 | $ | 18,111,147 | $ | 22,871,535 | $ | 988,842 | $ | 52,137,186 | ||||||||||||
See Notes to Consolidated Financial Statements
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
Nine Months Ended
|
|||||||
September 30,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 2,262,109 | $ | 1,664,564 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Provision for loan losses
|
1,135,000 | 2,578,000 | ||||||
Depreciation
|
631,888 | 692,495 | ||||||
Amortization and accretion
|
266,069 | 174,491 | ||||||
Deferred taxes
|
355,000 | (373,000 | ) | |||||
Stock-based compensation
|
44,736 | 42,945 | ||||||
(Gain) on sale of foreclosed real estate and loans, net
|
(457,707 | ) | (572,142 | ) | ||||
Write-down of other real estate owned
|
453,422 | 323,605 | ||||||
(Gain) on sale of investments
|
(115,655 | ) | (7,652 | ) | ||||
Increase in value of bank-owned life insurance
|
(178,552 | ) | (183,564 | ) | ||||
Proceeds from sales of loans held-for-sale
|
24,170,240 | 30,991,488 | ||||||
Originations of loans held-for-sale
|
(23,836,294 | ) | (29,835,087 | ) | ||||
Change in assets and liabilities:
|
||||||||
Accrued interest receivable
|
132,175 | 114,688 | ||||||
Prepaid expenses and other assets
|
787,597 | 531,720 | ||||||
Accrued expenses and other liabilities
|
155,970 | (1,611,140 | ) | |||||
Net cash provided by operating activities
|
5,805,998 | 4,531,411 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Net change in loans
|
23,510,824 | 31,641,392 | ||||||
Purchase of investments in certificates of deposit
|
(1,988,000 | ) | (16,473,000 | ) | ||||
Proceeds from maturities on investments in certificates of deposits
|
10,101,000 | 2,193,000 | ||||||
Purchase of securities available-for-sale
|
(32,153,829 | ) | (29,481,954 | ) | ||||
Proceeds from sale of securities available-for-sale
|
3,379,805 | 207,732 | ||||||
Proceeds from maturities and calls of securities available-for-sale
|
10,730,752 | 10,576,962 | ||||||
Purchase of resticted equity securities
|
(1,426,700 | ) | (173,200 | ) | ||||
Proceeds from redemption of restricted equity securities
|
1,013,300 | 717,600 | ||||||
Purchase of premises, equipment and rental real estate
|
(589,853 | ) | (319,236 | ) | ||||
Net proceeds from sale of foreclosed real estate
|
4,080,820 | 939,177 | ||||||
Net cash provided by investing activities
|
16,658,119 | (171,527 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net increase (decrease) in deposits
|
(2,807,870 | ) | 14,334,681 | |||||
Net (decrease) in advances from borrowers for taxes
|
||||||||
and insurance
|
(876,476 | ) | (989,956 | ) | ||||
Proceeds from other borrowed funds
|
3,000,000 | 5,250,000 | ||||||
Payments of other borrowed funds
|
(25,000,000 | ) | (18,000,000 | ) | ||||
Common and preferred dividends paid
|
(423,080 | ) | (422,983 | ) | ||||
Net cash (used in) financing activities
|
(26,107,426 | ) | 171,742 | |||||
Net decrease in cash
|
(3,643,309 | ) | 4,531,626 | |||||
CASH AND DUE FROM BANKS
|
||||||||
Beginning
|
20,603,808 | 21,766,170 | ||||||
Ending
|
$ | 16,960,499 | $ | 26,297,796 |
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
|
||||||||
(Unaudited)
|
Nine Months Ended
|
|||||||
September 30,
|
||||||||
2011
|
2010
|
|||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
|
||||||||
INFORMATION
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$ | 4,579,876 | $ | 6,032,399 | ||||
Income taxes
|
9,162 | 1,584,693 | ||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH OPERATING,
|
||||||||
INVESTING AND FINANCING ACTIVITIES
|
||||||||
Transfers from loans to other real estate owned
|
$ | 1,331,270 | $ | 3,268,407 | ||||
See Notes to Consolidated Financial Statements.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Basic earnings per common share:
|
||||||||||||||||
Net Income
|
$ | 1,024,065 | $ | 1,164,972 | $ | 2,262,109 | $ | 1,664,564 | ||||||||
Preferred stock dividends and accretion of discount
|
132,482 | 132,230 | 397,253 | 396,508 | ||||||||||||
Net income available to common stockholders
|
$ | 891,583 | $ | 1,032,742 | $ | 1,864,856 | $ | 1,268,056 | ||||||||
Weighted average common shares outstanding - basic
|
1,350,948 | 1,347,948 | 1,349,717 | 1,346,612 | ||||||||||||
Basic earnings per common share
|
$ | 0.66 | $ | 0.77 | $ | 1.38 | $ | 0.94 | ||||||||
Diluted earnings per common share:
|
||||||||||||||||
Net income available to common stockholders
|
891,583 | 1,032,742 | 1,864,856 | 1,268,056 | ||||||||||||
Weighted average common shares outstanding - basic
|
1,350,948 | 1,347,948 | 1,349,717 | 1,346,612 | ||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Stock Options(1)
|
- | - | - | - | ||||||||||||
Restricted Stock
|
4,125 | 3,500 | 3,882 | 3,605 | ||||||||||||
Common stock warrant(2)
|
8,686 | - | 7,105 | 2,819 | ||||||||||||
Total diluted average common shares issued and
|
1,363,759 | 1,351,448 | 1,360,704 | 1,353,036 | ||||||||||||
outstanding
|
||||||||||||||||
Diluted earnings per common share
|
$ | 0.65 | $ | 0.76 | $ | 1.37 | $ | 0.94 | ||||||||
1For the three and nine months ending September 30, 2011 and 2010, outstanding options to purchase common stock totaled 45,500 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 three months ending September 30, 2010, 99,157 shares of common stock warrants were not dilutive because the excerise price of the
|
||||||||||||||||
common stock warrants exceeded the average closing price for the Company's common stock.
|
Securities available-for-sale as of September 30, 2011 were as follows:
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
Cost
|
Gains
|
(Losses)
|
Fair Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
State and local obligations
|
$ | 8,858,725 | $ | 247,374 | $ | (70,386 | ) | $ | 9,035,713 | |||||||
Mortgage-backed securities(1)
|
19,106,968 | 670,937 | - | 19,777,905 | ||||||||||||
Collateralized mortgage obligations (1)
|
28,063,675 | 611,398 | (3,054 | ) | 28,672,019 | |||||||||||
Corporate bonds
|
3,360,138 | 15,458 | (6,366 | ) | 3,369,230 | |||||||||||
U.S. Government agencies
|
7,132,162 | 111,738 | - | 7,243,900 | ||||||||||||
Total
|
$ | 66,521,668 | $ | 1,656,905 | $ | (79,806 | ) | $ | 68,098,767 | |||||||
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.
|
September 30, 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
|
$ | 3,415,202 | $ | (70,386 | ) | $ | - | $ | - | $ | 3,415,202 | $ | (70,386 | ) | ||||||||||
Collateralized mortgage obligations
|
1,579,408 | (3,054 | ) | - | - | 1,579,408 | (3,054 | ) | ||||||||||||||||
Corporate bonds
|
1,597,755 | (6,366 | ) | - | - | 1,597,755 | (6,366 | ) | ||||||||||||||||
Total
|
$ | 6,592,365 | $ | (79,806 | ) | $ | - | $ | - | $ | 6,592,365 | $ | (79,806 | ) | ||||||||||
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
|
||||||||
September 30, 2011
|
||||||||
Amortized
|
||||||||
Cost
|
Fair Value
|
|||||||
Due in one year or less
|
$ | 50,000 | $ | 49,301 | ||||
Due from one to five years
|
8,241,980 | 8,320,310 | ||||||
Due from five to ten years
|
5,455,695 | 5,574,975 | ||||||
Due after ten years
|
5,603,349 | 5,704,257 | ||||||
Mortgage-backed securities and
|
||||||||
collateralized mortgage obligations
|
47,170,643 | 48,449,924 | ||||||
$ | 66,521,667 | $ | 68,098,767 |
September 30, 2011
|
December 31, 2010
|
|||||||
First mortgage loans:
|
||||||||
Secured by:
|
||||||||
One-to four-family residences
|
$ | 135,652,156 | $ | 141,061,321 | ||||
Multifamily properties
|
51,830,217 | 57,461,170 | ||||||
Commercial properties
|
61,659,444 | 69,253,792 | ||||||
Construction and land development loans
|
2,090,560 | 4,193,756 | ||||||
Total first mortgage loans
|
251,232,377 | 271,970,039 | ||||||
Consumer loans:
|
||||||||
Automobile
|
13,770,676 | 13,548,710 | ||||||
Second mortgage
|
46,615,734 | 51,349,053 | ||||||
Other
|
3,875,990 | 4,282,717 | ||||||
Total consumer loans
|
64,262,400 | 69,180,480 | ||||||
Total loans
|
315,494,777 | 341,150,519 | ||||||
Undisbursed portion of construction loans
|
(1,711,322 | ) | (295,609 | ) | ||||
Unearned premiums, net
|
53,926 | 83,528 | ||||||
Net deferred loan origination fees
|
(331,690 | ) | (331,010 | ) | ||||
$ | 313,505,691 | $ | 340,607,428 |
For the Three Months Ended September 30, 2011
|
||||||||||||||||||||||||
Commercial Real Estate
|
Construction and Land Development
|
Multi-Family Real Estate
|
1-4 Family Residential Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,531,734 | $ | 277,362 | $ | 572,505 | $ | 1,017,879 | $ | 1,472,978 | $ | 5,872,458 | ||||||||||||
Charge-offs
|
(913,540 | ) | - | - | (88,563 | ) | (161,408 | ) | (1,163,511 | ) | ||||||||||||||
Recoveries
|
- | - | - | - | 7,365 | 7,365 | ||||||||||||||||||
Provisions
|
214,875 | 8,624 | (25,947 | ) | 104,292 | 48,156 | 350,000 | |||||||||||||||||
Ending balance
|
$ | 1,833,069 | $ | 285,986 | $ | 546,558 | $ | 1,033,608 | $ | 1,367,091 | $ | 5,066,312 | ||||||||||||
For the Nine Months Ended September 30, 2011
|
||||||||||||||||||||||||
Commercial Real Estate
|
Construction and Land Development
|
Multi-Family Real Estate
|
1-4 Family Residential 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
|
(1,286,350 | ) | (70,000 | ) | (278,387 | ) | (129,769 | ) | (470,664 | ) | (2,235,170 | ) | ||||||||||||
Recoveries
|
- | - | - | 127 | 19,494 | 19,621 | ||||||||||||||||||
Provisions
|
564,325 | 1,075 | 21,095 | 153,620 | 394,885 | 1,135,000 | ||||||||||||||||||
Ending balance
|
$ | 1,833,069 | $ | 285,986 | $ | 546,558 | $ | 1,033,608 | $ | 1,367,091 | $ | 5,066,312 |
Three Months
|
Nine Months
|
|||||||
Ended September 30,
|
Ended September 30,
|
|||||||
2010
|
2010
|
|||||||
Balance at beginning of period
|
$ | 8,992,716 | $ | 7,170,595 | ||||
Charge-offs
|
(1,496,146 | ) | (2,090,121 | ) | ||||
Recoveries
|
6,976 | 13,072 | ||||||
Provision charged to operations
|
168,000 | 2,578,000 | ||||||
Balance at end of period
|
$ | 7,671,546 | $ | 7,671,546 |
September 30, 2011
|
||||||||||||||||||||||||
Commercial Real Estate
|
Construction and Land Development
|
Multi-Family Real Estate
|
1-4 Family Residential Real Estate
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 210,800 | $ | 177,000 | $ | - | $ | 91,400 | $ | 111,041 | $ | 590,241 | ||||||||||||
Collectively evaluated for impairment
|
1,622,269 | 108,986 | 546,558 | 942,208 | $ | 1,256,050 | 4,476,071 | |||||||||||||||||
Total ending allowance balance
|
$ | 1,833,069 | $ | 285,986 | $ | 546,558 | $ | 1,033,608 | $ | 1,367,091 | $ | 5,066,312 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 7,571,823 | $ | 1,839,186 | $ | - | $ | 3,977,405 | $ | 660,836 | $ | 14,049,250 | ||||||||||||
Collectively evaluated for impairment
|
54,087,621 | 251,374 | 51,830,217 | 131,674,751 | 63,601,564 | 301,445,527 | ||||||||||||||||||
Total ending balance
|
$ | 61,659,444 | $ | 2,090,560 | $ | 51,830,217 | $ | 135,652,156 | $ | 64,262,400 | $ | 315,494,777 | ||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
Commercial Real Estate
|
Construction and Land Development
|
Multi-Family Real Estate
|
1-4 Family Residential 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 balance
|
$ | 69,253,792 | $ | 4,193,756 | $ | 57,461,170 | $ | 141,061,321 | $ | 69,180,480 | $ | 341,150,519 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Carrying Amount
|
Unpaid Principal Balance
|
Associated Allowance
|
Carrying Amount
|
Unpaid Principal Balance
|
Associated Allowance
|
|||||||||||||||||||
With no specific allowance recorded:
|
||||||||||||||||||||||||
Commercial Real Estate
|
$ | 1,564,681 | $ | 2,433,148 | $ | - | $ | 1,584,352 | $ | 1,852,852 | $ | - | ||||||||||||
Construction and Land Development
|
- | - | - | 892,017 | 2,962,017 | - | ||||||||||||||||||
Multi-Family Real Estate
|
- | - | - | - | - | - | ||||||||||||||||||
1-4 Family Residential Real Estate
|
3,269,042 | 3,492,673 | - | 4,560,823 | 4,872,752 | - | ||||||||||||||||||
Consumer
|
430,612 | 439,605 | - | 433,793 | 442,786 | - | ||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial Real Estate
|
6,007,142 | 6,007,142 | 210,800 | 10,610,496 | 10,610,496 | 1,121,500 | ||||||||||||||||||
Construction and Land Development
|
1,839,186 | 1,839,186 | 177,000 | 2,409,328 | 2,409,328 | 237,000 | ||||||||||||||||||
Multi-Family Real Estate
|
- | - | - | 1,558,628 | 1,558,628 | 201,500 | ||||||||||||||||||
1-4 Family Residential Real Estate
|
708,363 | 708,363 | 91,400 | 606,546 | 606,546 | 85,111 | ||||||||||||||||||
Consumer
|
230,224 | 230,224 | 111,041 | 173,271 | 173,271 | 115,683 | ||||||||||||||||||
Total:
|
||||||||||||||||||||||||
Commercial Real Estate
|
7,571,823 | 8,440,290 | 210,800 | 12,194,848 | 12,463,348 | 1,121,500 | ||||||||||||||||||
Construction and Land Development
|
1,839,186 | 1,839,186 | 177,000 | 3,301,345 | 5,371,345 | 237,000 | ||||||||||||||||||
Multi-Family Real Estate
|
- | - | - | 1,558,628 | 1,558,628 | 201,500 | ||||||||||||||||||
1-4 Family Residential Real Estate
|
3,977,405 | 4,201,036 | 91,400 | 5,167,369 | 5,479,298 | 85,111 | ||||||||||||||||||
Consumer
|
660,836 | 669,829 | 111,041 | 607,064 | 616,057 | 115,683 | ||||||||||||||||||
$ | 14,049,250 | $ | 15,150,341 | $ | 590,241 | $ | 22,829,254 | $ | 25,488,676 | $ | 1,760,794 |
Average Balance
|
Interest Income
|
|||||||
Commercial Real Estate
|
$ | 9,524,040 | $ | 321,853 | ||||
Construction and Loan Development
|
2,689,228 | - | ||||||
Multi-Family Real Estate
|
519,543 | - | ||||||
1-4 Family Residential Real Estate
|
5,080,837 | 205,366 | ||||||
Consumer
|
882,549 | 32,816 | ||||||
$ | 18,696,197 | $ | 560,035 |
Commercial Loans
|
||||||||||||||||||||||||||||||||
Credit risk profile by internally assigned grade
|
||||||||||||||||||||||||||||||||
September 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||||||||||
Commercial Real Estate
|
Construction and Land Development
|
Multi-Family Real Estate
|
Total
|
Commercial Real Estate
|
Construction and Land Development
|
Multi-Family Real Estate
|
Total
|
|||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 46,381,751 | $ | 251,374 | $ | 47,595,337 | $ | 94,228,462 | $ | 53,092,384 | $ | 892,411 | $ | 53,291,156 | $ | 107,275,951 | ||||||||||||||||
Watch
|
5,257,137 | - | 4,234,880 | 9,492,017 | 3,966,560 | - | 2,611,386 | 6,577,946 | ||||||||||||||||||||||||
Special Mention
|
2,448,733 | - | - | 2,448,733 | - | - | - | - | ||||||||||||||||||||||||
Substandard
|
7,361,023 | 1,662,186 | - | 9,023,209 | 11,073,348 | 3,064,345 | 1,357,128 | 15,494,821 | ||||||||||||||||||||||||
Doubtful
|
210,800 | 177,000 | - | 387,800 | 1,121,500 | 237,000 | 201,500 | 1,560,000 | ||||||||||||||||||||||||
$ | 61,659,444 | $ | 2,090,560 | $ | 51,830,217 | $ | 115,580,221 | $ | 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
|
||||||||||||||||||||||||||||||||
September 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||||||||||
1-4 Family Residential Real Estate
|
Second Mortgage
|
Other Consumer Loans
|
Total
|
1-4 Family Residential Real Estate
|
Second Mortgage
|
Other Consumer Loans
|
Total
|
|||||||||||||||||||||||||
Current
|
$ | 132,486,662 | $ | 45,710,813 | $ | 17,374,361 | $ | 195,904,479 | $ | 137,430,650 | $ | 50,136,653 | $ | 17,590,417 | $ | 205,157,720 | ||||||||||||||||
Past due 30-89 days
|
868,253 | 469,409 | 221,844 | 1,408,172 | 1,473,094 | 786,900 | 203,341 | 2,463,335 | ||||||||||||||||||||||||
Past due 90 days and greater
|
2,297,241 | 435,512 | 50,461 | 2,601,905 | 2,157,577 | 425,500 | 37,669 | 2,620,746 | ||||||||||||||||||||||||
$ | 135,652,156 | $ | 46,615,734 | $ | 17,646,666 | $ | 199,914,556 | $ | 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
|
||||||||||||||||
September 30, 2011
|
||||||||||||||||||||
Commercial Loans:
|
||||||||||||||||||||
Commercial Real Estate
|
$ | 27,304 | $ | 1,162,500 | $ | 1,189,804 | $ | 60,496,944 | $ | 61,686,748 | ||||||||||
Construction and Land Development
|
- | - | - | 2,090,560 | 2,090,560 | |||||||||||||||
Multi-Family Real Estate
|
- | - | - | 51,830,217 | 51,830,217 | |||||||||||||||
1-4 Family Residential Real Estate
|
716,919 | 2,115,932 | 2,832,851 | 132,819,305 | 135,652,156 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Second mortgage
|
469,409 | 435,512 | 904,921 | 45,710,813 | 46,615,734 | |||||||||||||||
Other consumer loans
|
221,844 | 50,461 | 272,305 | 17,374,361 | 17,646,666 | |||||||||||||||
$ | 1,435,476 | $ | 3,764,405 | $ | 5,199,881 | $ | 310,322,200 | $ | 315,522,081 | |||||||||||
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 |
|
|
|||||||
Commercial Loans:
|
September 30, 2011
|
December 31, 2010
|
||||||
Commercial Real Estate
|
$ | 1,312,549 | $ | 5,408,650 | ||||
Construction and Land Development
|
1,839,186 | 1,679,839 | ||||||
Multi-Family Real Estate
|
- | 1,558,628 | ||||||
1-4 Family Residential Real Estate
|
2,115,931 | 2,459,406 | ||||||
Consumer:
|
||||||||
Second mortgage
|
434,548 | 425,500 | ||||||
Other consumer loans
|
50,461 | 37,669 | ||||||
$ | 5,752,675 | $ | 11,569,692 |
Three Months Ended September 30, 2011
|
Nine Months Ended September 30, 2011
|
|||||||||||||||||||||||
Number of Loans
|
Pre-restructuring Outstanding Recorded Investment
|
Post-restructuring Outstanding Recorded Investment
|
Number of Loans
|
Pre-restructuring Outstanding Recorded Investment
|
Post-restructuring Outstanding Recorded Investment
|
|||||||||||||||||||
Troubled debt restructurings:
|
||||||||||||||||||||||||
Commercial Real Estate
|
- | $ | - | $ | - | $ | 3 | $ | 5,919,269 | $ | 5,919,269 | |||||||||||||
Construction and Land Development
|
1 | 743,761 | 743,761 | 1 | 743,761 | 743,761 | ||||||||||||||||||
Multi-Family Real Estate
|
- | - | - | - | - | - | ||||||||||||||||||
1-4 Family Residential Real Estate
|
4 | 353,542 | 359,830 | 13 | 2,610,345 | 2,652,836 | ||||||||||||||||||
Consumer
|
3 | 63,440 | 64,485 | 11 | 359,441 | 338,432 | ||||||||||||||||||
Total:
|
8 | $ | 1,160,743 | $ | 1,168,076 | 29 | $ | 9,632,816 | $ | 9,654,298 |
Three Months Ended September 30, 2011
|
Nine Months Ended September 30, 2011
|
|||||||||||||||
Number of Loans
|
Principal Balance of Defaulted Loans
|
Number of Loans
|
Principal Balance of Defaulted Loans
|
|||||||||||||
Commercial Real Estate
|
- | $ | - | - | $ | - | ||||||||||
Construction and Land Development
|
- | - | - | - | ||||||||||||
Multi-Family Real Estate
|
- | - | - | - | ||||||||||||
1-4 Family Residential Real Estate
|
2 | 326,508 | 4 | 1,839,403 | ||||||||||||
Consumer
|
2 | 158,008 | 2 | 158,008 | ||||||||||||
Total:
|
4 | $ | 484,516 | 6 | $ | 1,997,411 | ||||||||||
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 September 30, 2011
|
||||||||||||||||
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
|
$ | - | $ | 9,035,713 | $ | - | $ | 9,035,713 | ||||||||
Mortgage-backed securities
|
- | 19,777,905 | - | 19,777,905 | ||||||||||||
Collateralized mortgage obligations
|
- | 28,672,019 | - | 28,672,019 | ||||||||||||
Corporate bonds
|
3,369,230 | - | - | 3,369,230 | ||||||||||||
U.S. Government agencies
|
- | 7,243,900 | - | 7,243,900 | ||||||||||||
Total securities available-for-sale
|
$ | 3,369,230 | $ | 64,729,537 | $ | - | $ | 68,098,767 | ||||||||
Fair Value Measurements at December 31, 2010
|
||||||||||||||||
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 September 30, 2011
|
||||||||||||||||
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
|
$ | - | $ | - | $ | 8,194,674 | $ | 8,194,674 | ||||||||
Foreclosed real estate
|
- | - | 1,386,542 | 1,386,542 | ||||||||||||
Total
|
$ | - | $ | - | $ | 9,581,216 | $ | 9,581,216 | ||||||||
Fair Value Measurements at December 31, 2010
|
||||||||||||||||
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 |
Cash and due from banks: The carrying amount of cash and due from banks represents the fair value. | |
Investments in certificates of deposit: The fair value of investments in certificates of deposit is estimated based on discounted cash flows using current market interest rates. | |
Restricted equity securities: The fair value of this untraded stock is estimated at its carrying value because the Company is able to redeem the stock with the Federal Home Loan Bank and Federal Reserve Bank at par value. |
Loans held for sale: Fair values are based on quoted market prices of similar loans sold on the secondary market. | |
Loans: For variable-rate loans that reprice frequently and have experienced no significant change in credit risk, fair values are based on carrying values. Fair values for all other loans are estimated basedon discounted cash flows, using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality.
|
|
Deposits: Fair values disclosed for demand, negotiable order of withdrawal (NOW), savings and money market savings deposits equal their carrying amounts, which represent the amount payable on demand. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities on time deposits.
|
|
Borrowed funds: The fair value of borrowed funds is estimated based on discounted cash flows using currently available borrowing rates. | |
Accrued interest receivable and payable: The fair values of both accrued interest receivable and payable are their carrying amounts. | |
Commitments to extend credit: The fair values of commitments to extend credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and creditworthiness of the counterparties. At September 30, 2011 and December 31, 2010, the carrying amount and fair value of the commitments were not significant.
|
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(nearest 000)
|
(nearest 000)
|
|||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and due from banks
|
$ | 16,960,499 | $ | 16,960,000 | $ | 20,603,808 | $ | 20,604,000 | ||||||||
Investments in certificates of deposit
|
4,576,000 | 4,576,000 | 12,689,000 | 12,689,000 | ||||||||||||
Securities available-for-sale
|
68,098,767 | 68,099,000 | 48,435,771 | 48,436,000 | ||||||||||||
Restricted equity securities
|
3,430,600 | 3,431,000 | 3,017,200 | 3,017,000 | ||||||||||||
Loans, net
|
308,439,379 | 321,063,000 | 334,460,567 | 341,055,000 | ||||||||||||
Loans held for sale
|
469,720 | 470,000 | 332,178 | 332,000 | ||||||||||||
Accrued interest receivable
|
1,622,117 | 1,622,000 | 1,754,292 | 1,754,000 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
347,025,034 | 349,855,000 | 349,832,904 | 353,328,000 | ||||||||||||
Borrowed funds
|
27,250,000 | 28,290,000 | 49,250,000 | 51,118,000 | ||||||||||||
Accrued interest payable
|
46,176 | 46,000 | 162,034 | 162,000 |
Three Months Ended September 30, 2011
|
Nine Months Ended September 30, 2011
|
|||||||||||||||||||||||
Traditional
|
Traditional
|
|||||||||||||||||||||||
Banking
|
All Others
|
Total
|
Banking
|
All Others
|
Total
|
|||||||||||||||||||
Interest income
|
$ | 4,986,912 | $ | - | $ | 4,986,912 | $ | 15,282,408 | $ | - | $ | 15,282,408 | ||||||||||||
Interest expense
|
1,308,084 | 26,636 | 1,334,720 | 4,383,237 | 80,778 | 4,464,015 | ||||||||||||||||||
Net interest income (loss)
|
3,678,828 | (26,636 | ) | 3,652,192 | 10,899,171 | (80,778 | ) | 10,818,393 | ||||||||||||||||
Provision for loan losses
|
350,000 | - | 350,000 | 1,135,000 | - | 1,135,000 | ||||||||||||||||||
Net interest income (loss) after
|
||||||||||||||||||||||||
provision for loan losses
|
3,328,828 | (26,636 | ) | 3,302,192 | 9,764,171 | (80,778 | ) | 9,683,393 | ||||||||||||||||
Noninterest income
|
1,528,845 | 431,757 | 1,960,602 | 4,149,373 | 1,284,875 | 5,434,248 | ||||||||||||||||||
Securities gains, net
|
85,614 | - | 85,614 | 115,655 | - | 115,655 | ||||||||||||||||||
Noninterest expense
|
3,593,532 | 405,811 | 3,999,343 | 11,044,296 | 1,232,291 | 12,276,587 | ||||||||||||||||||
Income (loss) before income taxes
|
1,349,755 | (690 | ) | 1,349,065 | 2,984,903 | (28,194 | ) | 2,956,709 | ||||||||||||||||
Provision for income taxes
|
318,500 | 6,500 | 325,000 | 676,400 | 18,200 | 694,600 | ||||||||||||||||||
Net income (loss)
|
$ | 1,031,255 | $ | (7,190 | ) | $ | 1,024,065 | $ | 2,308,503 | $ | (46,394 | ) | $ | 2,262,109 | ||||||||||
Inter-segment revenue (expense)
|
$ | 153,012 | $ | (153,012 | ) | $ | - | $ | 428,072 | $ | (428,072 | ) | $ | - | ||||||||||
Total assets
|
$ | 426,207,491 | $ | 3,512,127 | $ | 429,719,618 | $ | 426,207,491 | $ | 3,512,127 | $ | 429,719,618 | ||||||||||||
Total deposits
|
$ | 347,025,034 | $ | - | $ | 347,025,034 | $ | 347,025,034 | $ | - | $ | 347,025,034 | ||||||||||||
Three Months Ended September 30, 2010
|
Nine Months Ended September 30, 2010
|
|||||||||||||||||||||||
Traditional
|
Traditional
|
|||||||||||||||||||||||
Banking
|
All Others
|
Total
|
Banking
|
All Others
|
Total
|
|||||||||||||||||||
Interest income
|
$ | 5,476,474 | $ | - | $ | 5,476,474 | $ | 16,858,095 | $ | - | $ | 16,858,095 | ||||||||||||
Interest expense
|
1,914,529 | 27,770 | 1,942,299 | 5,844,982 | 83,876 | 5,928,858 | ||||||||||||||||||
Net interest income (loss)
|
3,561,945 | (27,770 | ) | 3,534,175 | 11,013,113 | (83,876 | ) | 10,929,237 | ||||||||||||||||
Provision for loan losses
|
168,000 | - | 168,000 | 2,578,000 | - | 2,578,000 | ||||||||||||||||||
Net interest income (loss) after
|
||||||||||||||||||||||||
provision for loan losses
|
3,393,945 | (27,770 | ) | 3,366,175 | 8,435,113 | (83,876 | ) | 8,351,237 | ||||||||||||||||
Noninterest income
|
1,787,587 | 410,481 | 2,198,068 | 4,462,737 | 1,274,235 | 5,736,972 | ||||||||||||||||||
Securities gains, net
|
- | - | - | 7,652 | - | 7,652 | ||||||||||||||||||
Noninterest expense
|
3,499,150 | 388,221 | 3,887,371 | 10,601,520 | 1,241,777 | 11,843,297 | ||||||||||||||||||
Income (loss) before taxes
|
1,682,382 | (5,510 | ) | 1,676,872 | 2,303,982 | (51,418 | ) | 2,252,564 | ||||||||||||||||
Provision for income taxes
|
503,400 | 8,500 | 511,900 | 583,700 | 4,300 | 588,000 | ||||||||||||||||||
Net income
|
$ | 1,178,982 | $ | (14,010 | ) | $ | 1,164,972 | $ | 1,720,282 | $ | (55,718 | ) | $ | 1,664,564 | ||||||||||
Inter-segment revenue (expense)
|
$ | 172,138 | $ | (172,138 | ) | $ | - | $ | 525,334 | $ | (525,334 | ) | $ | - | ||||||||||
Total assets
|
$ | 451,792,043 | $ | 3,582,560 | $ | 455,374,603 | $ | 451,792,043 | $ | 3,582,560 | $ | 455,374,603 | ||||||||||||
Total deposits
|
$ | 349,147,741 | $ | - | $ | 349,147,741 | $ | 349,147,741 | $ | - | $ | 349,147,741 |
•
|
The Bank completed its conversion to a state-chartered commercial bank from a federally-chartered stock savings bank and has become a member of The Federal Reserve Bank of Chicago. The Company completed a reorganization to a bank holding company from a savings and loan holding company.
|
||
•
|
Loans amounted to $313.5 million as of September 30, 2011 compared to $340.6 million as of December 31, 2010, representing a decrease of 8.0%. 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 $9.0 million from $16.2 million at December 31, 2010 to $7.2 million at September 30, 2011. The Bank recorded a provision for loan losses of $350,000 and $1.1 million for the three and nine months ended September 30, 2011 compared to $168,000 and $2.6 million for the same periods 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.
|
||
•
|
Capital remains strong with stockholders equity as a percentage of total assets increasing to 12.1% at September 30, 2011 from 10.9% at December 31, 2010. The Bank continues to be considered “well capitalized” under regulatory capital requirements with a total risk based capital ratio of 18.2% at September 30, 2011.
|
||
•
|
The Company has increased liquidity as it continues investing funds in securities available-for-sale.
|
September 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
First mortgage loans:
|
||||||||
One- to four-family residential
|
$ | 2,115 | $ | 2,460 | ||||
Multifamily and commercial properties
|
3,152 | 8,647 | ||||||
Consumer loans
|
485 | 463 | ||||||
Total nonaccrual loans
|
5,752 | 11,570 | ||||||
90 days past due loans (still
|
||||||||
accruing interest)
|
- | - | ||||||
Other nonperforming loans
|
- | - | ||||||
Total nonperforming loans
|
5,752 | 11,570 | ||||||
Total foreclosed real estate
|
1,387 | 4,586 | ||||||
Other nonperforming assets
|
20 | - | ||||||
Total nonperforming assets
|
$ | 7,159 | $ | 16,156 | ||||
Total nonaccrual loans to net loans receivable
|
1.87 | % | 3.46 | % | ||||
Total nonaccrual loans to total assets
|
1.34 | % | 2.56 | % | ||||
Total nonperforming assets to total assets
|
1.67 | % | 3.57 | % |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net income
|
$ | 1,024,065 | $ | 1,164,972 | $ | 2,262,109 | $ | 1,664,564 | ||||||||
Average assets
|
436,601,917 | 459,220,298 | 447,354,057 | 457,264,518 | ||||||||||||
Average stockholders equity
|
51,412,009 | 49,249,927 | 50,387,357 | 48,956,687 | ||||||||||||
Return on assets
|
0.94 | % | 1.01 | % | 0.67 | % | 0.49 | % | ||||||||
Return on equity
|
7.97 | % | 9.46 | % | 5.99 | % | 4.53 | % | ||||||||
Efficiency ratio
|
71.25 | % | 67.82 | % | 75.54 | % | 71.06 | % | ||||||||
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.
|
Three months ended September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average Balance
|
Interest
|
Average Yield/Rate
|
Average Balance
|
Interest
|
Average Yield/Rate
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 318,578,101 | $ | 4,479,035 | 5.60 | % | $ | 353,016,079 | $ | 5,141,320 | 5.80 | % | ||||||||||||
Securities
|
71,179,231 | 483,212 | 2.72 | % | 43,673,555 | 277,478 | 2.54 | % | ||||||||||||||||
Investments in certificates of deposit
|
6,813,889 | 18,907 | 1.11 | % | 13,855,079 | 47,427 | 1.37 | % | ||||||||||||||||
Interest-bearing cash
|
10,216,280 | 5,758 | 0.22 | % | 18,690,576 | 10,249 | 0.22 | % | ||||||||||||||||
Total interest-earning assets
|
406,787,501 | 4,986,912 | 4.86 | % | 429,235,289 | 5,476,474 | 5.04 | % | ||||||||||||||||
Noninterest-earning assets
|
29,814,416 | 29,985,009 | ||||||||||||||||||||||
Total assets
|
$ | 436,601,917 | $ | 459,220,298 | ||||||||||||||||||||
Liabilities and Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand and money market savings
|
$ | 151,125,088 | $ | 257,968 | 0.68 | % | $ | 136,633,563 | $ | 270,415 | 0.79 | % | ||||||||||||
Savings
|
32,689,711 | 7,955 | 0.10 | % | 30,378,618 | 12,214 | 0.16 | % | ||||||||||||||||
Certificates of Deposit
|
146,245,461 | 831,941 | 2.26 | % | 165,400,775 | 1,061,771 | 2.55 | % | ||||||||||||||||
Borrowed funds
|
30,061,649 | 236,856 | 3.13 | % | 54,704,301 | 597,899 | 4.34 | % | ||||||||||||||||
Total interest-bearing liabilities
|
360,121,909 | 1,334,720 | 1.47 | % | 387,117,257 | 1,942,299 | 1.99 | % | ||||||||||||||||
Noninterest-bearing liabilities
|
25,067,999 | 22,853,114 | ||||||||||||||||||||||
Total liabilities
|
385,189,908 | 409,970,371 | ||||||||||||||||||||||
Equity
|
51,412,009 | 49,249,927 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 436,601,917 | $ | 459,220,298 | ||||||||||||||||||||
Net interest income
|
$ | 3,652,192 | $ | 3,534,175 | ||||||||||||||||||||
Net interest rate spread
|
3.39 | % | 3.05 | % | ||||||||||||||||||||
Net interest margin
|
3.57 | % | 3.26 | % | ||||||||||||||||||||
Ratio of average interest-earnings assets to
|
||||||||||||||||||||||||
average interest-bearing liabilities
|
112.96 | % | 110.88 | % | ||||||||||||||||||||
Nine months ended September 30,
|
||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Average Balance
|
Interest
|
Average Yield/Rate
|
Average Balance
|
Interest
|
Average Yield/Rate
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 325,793,773 | $ | 13,837,868 | 5.66 | % | $ | 364,346,611 | $ | 15,988,721 | 5.85 | % | ||||||||||||
Securities
|
64,553,592 | 1,338,254 | 2.76 | % | 35,761,476 | 753,531 | 2.81 | % | ||||||||||||||||
Investments in certificates of deposit
|
8,750,816 | 77,926 | 1.19 | % | 8,077,388 | 84,714 | 1.40 | % | ||||||||||||||||
Interest-bearing cash
|
16,894,188 | 28,360 | 0.22 | % | 19,405,024 | 31,129 | 0.21 | % | ||||||||||||||||
Total interest-earning assets
|
415,992,369 | 15,282,408 | 4.90 | % | 427,590,499 | 16,858,095 | 5.26 | % | ||||||||||||||||
Noninterest-earning assets
|
31,361,688 | 29,674,019 | ||||||||||||||||||||||
Total assets
|
$ | 447,354,057 | $ | 457,264,518 | ||||||||||||||||||||
Liabilities and Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand and money market savings
|
$ | 154,386,948 | $ | 916,871 | 0.79 | % | $ | 126,609,624 | $ | 680,146 | 0.72 | % | ||||||||||||
Savings
|
32,506,907 | 29,797 | 0.12 | % | 30,361,994 | 42,658 | 0.19 | % | ||||||||||||||||
Certificates of Deposit
|
149,988,670 | 2,584,412 | 2.30 | % | 170,609,619 | 3,306,562 | 2.59 | % | ||||||||||||||||
Borrowed funds
|
35,858,138 | 932,935 | 3.48 | % | 58,029,770 | 1,899,492 | 4.38 | % | ||||||||||||||||
Total interest-bearing liabilities
|
372,740,663 | 4,464,015 | 1.60 | % | 385,611,007 | 5,928,858 | 2.06 | % | ||||||||||||||||
Noninterest-bearing liabilities
|
24,226,037 | 22,696,824 | ||||||||||||||||||||||
Total liabilities
|
396,966,700 | 408,307,831 | ||||||||||||||||||||||
Equity
|
50,387,357 | 48,956,687 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 447,354,057 | $ | 457,264,518 | ||||||||||||||||||||
Net interest income
|
$ | 10,818,393 | $ | 10,929,237 | ||||||||||||||||||||
Net interest rate spread
|
3.30 | % | 3.20 | % | ||||||||||||||||||||
Net interest margin
|
3.46 | % | 3.40 | % | ||||||||||||||||||||
Ratio of average interest-earnings assets to
|
||||||||||||||||||||||||
average interest-bearing liabilities
|
111.60 | % | 110.89 | % |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
2011
|
2010
|
Change
|
Change %
|
2011
|
2010
|
Change
|
Change %
|
|||||||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||||||||||
Fees and service charges
|
$ | 1,247,141 | $ | 1,266,139 | $ | (18,998 | ) | -1.5 | % | $ | 3,627,806 | $ | 3,559,002 | $ | 68,804 | 1.9 | % | |||||||||||||||
Abstract fees
|
141,193 | 175,187 | (33,994 | ) | -19.4 | % | 424,698 | 481,871 | (57,173 | ) | -11.9 | % | ||||||||||||||||||||
Mortgage banking income
|
247,421 | 350,701 | (103,280 | ) | -29.4 | % | 471,488 | 591,656 | (120,168 | ) | -20.3 | % | ||||||||||||||||||||
Loan prepayment fees
|
1,904 | 2,273 | (369 | ) | -16.2 | % | 15,359 | 29,477 | (14,118 | ) | -47.9 | % | ||||||||||||||||||||
Other income:
|
||||||||||||||||||||||||||||||||
Increase in CSV - BOLI
|
60,951 | 62,610 | (1,659 | ) | -2.6 | % | 178,552 | 183,564 | (5,012 | ) | -2.7 | % | ||||||||||||||||||||
Investment and Insurance sales
|
189,575 | 137,274 | 52,301 | 38.1 | % | 557,972 | 484,691 | 73,281 | 15.1 | % | ||||||||||||||||||||||
Foreclosed real estate net earnings
|
(58,744 | ) | (34,799 | ) | (23,945 | ) | 68.8 | % | (254,047 | ) | (87,456 | ) | (166,591 | ) | 190.5 | % | ||||||||||||||||
Rental income
|
122,711 | 121,308 | 1,403 | 1.2 | % | 367,336 | 363,907 | 3,429 | 0.9 | % | ||||||||||||||||||||||
All other
|
8,450 | 117,375 | (108,925 | ) | -92.8 | % | 45,084 | 130,260 | (85,176 | ) | -65.4 | % | ||||||||||||||||||||
Total other income
|
$ | 322,943 | $ | 403,768 | $ | (80,825 | ) | -20.0 | % | $ | 894,897 | $ | 1,074,966 | $ | (180,069 | ) | -16.8 | % | ||||||||||||||
Total noninterest income
|
$ | 1,960,602 | $ | 2,198,068 | $ | (237,466 | ) | -10.8 | % | $ | 5,434,248 | $ | 5,736,972 | $ | (302,724 | ) | -5.3 | % |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
2011
|
2010
|
Change
|
Change %
|
2011
|
2010
|
Change
|
Change %
|
|||||||||||||||||||||||||
Noninterest expense:
|
||||||||||||||||||||||||||||||||
Compensation and employee benefits
|
$ | 2,033,066 | $ | 1,928,708 | $ | 104,358 | 5.4 | % | $ | 5,823,421 | $ | 5,698,440 | $ | 124,981 | 2.2 | % | ||||||||||||||||
Premises and equipment
|
438,977 | 460,204 | (21,227 | ) | -4.6 | % | 1,386,763 | 1,445,629 | (58,866 | ) | -4.1 | % | ||||||||||||||||||||
Data processing
|
218,950 | 217,465 | 1,485 | 0.7 | % | 651,850 | 660,445 | (8,595 | ) | -1.3 | % | |||||||||||||||||||||
FDIC insurance expense
|
95,635 | 135,248 | (39,613 | ) | -29.3 | % | 353,707 | 419,078 | (65,371 | ) | -15.6 | % | ||||||||||||||||||||
Foreclosed real estate impairment
|
64,251 | 7,147 | 57,104 | 799.0 | % | 453,422 | 323,605 | 129,817 | 40.1 | % | ||||||||||||||||||||||
Other expense:
|
||||||||||||||||||||||||||||||||
Advertising and promotions
|
74,181 | 93,863 | (19,682 | ) | -21.0 | % | 331,100 | 252,148 | 78,952 | 31.3 | % | |||||||||||||||||||||
Professional fees
|
207,467 | 142,612 | 64,855 | 45.5 | % | 605,047 | 440,219 | 164,828 | 37.4 | % | ||||||||||||||||||||||
Printing, postage, and supplies
|
103,707 | 109,189 | (5,482 | ) | -5.0 | % | 334,606 | 327,859 | 6,747 | 2.1 | % | |||||||||||||||||||||
Checking account charges
|
59,700 | 84,788 | (25,088 | ) | -29.6 | % | 189,049 | 253,038 | (63,989 | ) | -25.3 | % | ||||||||||||||||||||
Insurance
|
35,963 | 42,092 | (6,129 | ) | -14.6 | % | 112,278 | 127,594 | (15,316 | ) | -12.0 | % | ||||||||||||||||||||
Regulatory fees
|
14,805 | 34,290 | (19,485 | ) | -56.8 | % | 95,396 | 97,951 | (2,555 | ) | -2.6 | % | ||||||||||||||||||||
Telephone
|
37,482 | 36,615 | 867 | 2.4 | % | 111,267 | 111,595 | (328 | ) | -0.3 | % | |||||||||||||||||||||
Apartment operating costs
|
86,436 | 89,265 | (2,829 | ) | -3.2 | % | 275,146 | 263,334 | 11,812 | 4.5 | % | |||||||||||||||||||||
Employee costs
|
56,696 | 44,956 | 11,740 | 26.1 | % | 164,502 | 159,275 | 5,227 | 3.3 | % | ||||||||||||||||||||||
Card service expenses
|
177,142 | 163,024 | 14,118 | 8.7 | % | 508,675 | 471,859 | 36,816 | 7.8 | % | ||||||||||||||||||||||
All other
|
294,885 | 297,905 | (3,020 | ) | -1.0 | % | 880,358 | 791,228 | 89,130 | 11.3 | % | |||||||||||||||||||||
Total other expense
|
$ | 1,148,464 | $ | 1,138,599 | $ | 9,865 | 0.9 | % | $ | 3,607,424 | $ | 3,296,100 | $ | 311,324 | 9.4 | % | ||||||||||||||||
Total noninterest expense
|
$ | 3,999,343 | $ | 3,887,371 | $ | 111,972 | 2.9 | % | $ | 12,276,587 | $ | 11,843,297 | $ | 433,290 | 3.7 | % |
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 September 30, 2011:
|
||||||||||||||||||||||||
Total Capital (to risk-weighted assets)
|
$ | 52,238 | 18.2 | % | $ | 22,930 | 8.0 | % | $ | 28,663 | 10.0 | % | ||||||||||||
Tier I Capital (to risk-weighted assets)
|
48,637 | 17.0 | 11,465 | 4.0 | 17,198 | 6.0 | ||||||||||||||||||
Tier I Capital (to average assets)
|
48,637 | 11.1 | 17,519 | 4.0 | 21,898 | 5.0 | ||||||||||||||||||
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)(1)
|
46,278 | 10.2 | 6,786 | 1.5 | - | - | ||||||||||||||||||
(1) Under regulations as a federally-chartered stock savings bank, the Bank was also subject to minimum tangible capital requirements.
|
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
|
*
|
101
|
Interactive data files: (i) Consolidated Statements of Financial Condition at September 30, 2011 and December 31, 2010 (unaudited), (ii) Consolidated Statements of Operations for the Three Months and Nine Months Ended September 30, 2011 and 2010 (unaudited), (iii) Consolidated Statements of Comprehensive Income for the Three Months and Nine Months Ended September 30, 2011 and 2010; (iv) Consolidated Statements of Stockholders’ Equity for the Nine Months Ended September 30, 2011 and 2010 (unaudited), (v) Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2011 and 2010, and (vi) Notes to Consolidated Financial Statements.**
|
*
|
Filed herewith.
|
**
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
(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: November 9, 2011
|
BY: /s/ David M. Bradley
|
David M. Bradley, Chairman, President & CEO
|
Date: November 9, 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: November 9, 2011
|
/s/ David M. Bradley
|
|||
David M. Bradley
|
||||
Chairman, President & CEO
|
|
CERTIFICATION
|
|
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: November 9, 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.
|
||
November 9, 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.
|
||
November 9, 2011
|
/s/ Jane M. Funk
|
||
Dated
|
Jane M. Funk
|
||
Chief Financial Officer and Treasurer
|
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 10,200 | 10,200 |
Preferred stock, shares outstanding (in shares) | 10,200 | 10,200 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 15,500,000 | 15,500,000 |
Common stock, shares issued (in shares) | 1,355,073 | 1,351,448 |
Common stock, shares outstanding (in shares) | 1,355,073 | 1,351,448 |
Document And Entity Information (USD $) | 9 Months Ended | ||
---|---|---|---|
Sep. 30, 2011 | Nov. 09, 2011 | Jun. 30, 2010 | |
Entity Registrant Name | NORTH CENTRAL BANCSHARES INC | ||
Entity Central Index Key | 0001005188 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 19,661,000 | ||
Entity Common Stock, Shares Outstanding | 1,355,073 | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q3 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2011 |
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FAIR VALUE | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FAIR VALUE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | 5. FAIR VALUE Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, define fair value, establish a framework for measuring fair value and expand disclosures about fair value measurements. The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at September 30, 2011 or December 31, 2010. The Company's securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as other real estate owned and impaired loans. These non-recurring fair value adjustments involve the application of lower-of-cost-or-fair value accounting or write-downs of individual assets. In accordance with ASC 820, the Company groups its assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:
Fair value measurements for assets measured at fair value on a recurring basis were as follows:
When available, quoted market prices are used to determine the fair value on investment securities and such items are classified within Level 1 of the fair value hierarchy. Examples include equity securities, U.S. Treasury securities and certain corporate bonds. For other securities, the Company determines fair value based on various sources and may apply matrix pricing with observable prices for similar bonds where a price for the identical bond is not observable. Securities measured at fair value by such methods are classified as Level 2. The fair values of Level 2 securities are determined by matrix pricing models that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers, and live trading systems. Certain securities are not valued based on observable inputs and are, therefore, classified as Level 3. The fair value of these securities is based on management's best estimates. The Company's policy is to recognize transfer between levels at the end of each reporting period, if applicable. There were no transfers between levels during the nine months ended September 30, 2011. Fair value measurements for assets measured at fair value on a non-recurring basis were as follows:
Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans or discounted cash flows and is classified at a Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. Such collateral's fair value is determined based on appraisals by qualified licensed appraisers hired by the Company, and/or management's expertise and knowledge of the client and client's business. Foreclosed real estate is initially recorded at fair value less estimated selling costs. Subsequently it is carried at the lower of cost or fair value less estimated selling costs. Fair value is estimated through current appraisals or listing prices. Estimated fair values may be adjusted by management to reflect current economic and market conditions and, as such, are classified as Level 3. Fair Value Disclosures Generally accepted accounting principles require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below: Cash and due from banks: The carrying amount of cash and due from banks represents the fair value. Investments in certificates of deposit: The fair value of investments in certificates of deposit is estimated based on discounted cash flows using current market interest rates. Restricted equity securities: The fair value of this untraded stock is estimated at its carrying value because the Company is able to redeem the stock with the Federal Home Loan Bank and Federal Reserve Bank at parvalue. Loans held for sale: Fair values are based on quoted market prices of similar loans sold on the secondary market. Loans: For variable-rate loans that reprice frequently and have experienced no significant change in credit risk, fair values are based on carrying values. Fair values for all other loans are estimated based on discounted cash flows, using interest rates currently being offered for loans with similar terms toborrowers with similar credit quality. Deposits: Fair values disclosed for demand, NOW, savings and money market savings deposits equaltheir carrying amounts, which represent the amount payable on demand. Fair values for certificates ofdeposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities on time deposits. Borrowed funds: The fair value of borrowed funds is estimated based on discounted cash flows using currently available borrowing rates. Accrued interest receivable and payable: The fair values of both accrued interest receivable and payable are their carrying amounts. Commitments to extend credit: The fair values of commitments to extend credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of theagreements and creditworthiness of the counterparties. At September 30, 2011 and December 31, 2010 the carrying amount and fair value of the commitments were not significant.
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