NORTH CENTRAL BANCSHARES, INC. |
(Exact name of registrant as specified in its charter) |
Iowa | 42-1449849 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
825 Central Avenue, Fort Dodge, Iowa | 50501 |
(Address of principal executive offices) | (Zip Code) |
515-576-7531 |
(Registrant’s telephone number, including area code) |
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 May 10, 2012
|
||
Common Stock, $.01 par value
|
1,357,073 |
Page
|
||
Part I. Financial Information
|
||
Item 1. Financial Statements (Unaudited)
|
1
|
|
Consolidated Statements of
Financial Condition at March 31, 2012
and December 31, 2011
|
1
|
|
Consolidated Statements of
Income for the Three Months Ended
March 31, 2012 and 2011
|
2
|
|
3
|
||
Consolidated Statements of
Comprehensive Income for the Three Months Ended
March 31, 2012 and 2011
|
||
Consolidated Statements of
Stockholders’ Equity for the Three Months
Ended March 31, 2012 and 2011
|
4
|
|
Consolidated Statements of
Cash Flows for the Three Months Ended
March 31, 2012 and 2011
|
5
|
|
Notes to Consolidated Financial Statements
|
7
|
|
Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations
|
24
|
|
Item 3. Quantitative and Qualitative Disclosure
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)
|
||||||||
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Cash and due from banks:
|
||||||||
Interest-bearing
|
$ | 11,179,913 | $ | 9,167,235 | ||||
Noninterest-bearing
|
7,251,542 | 8,237,847 | ||||||
Total cash and cash equivalents
|
18,431,455 | 17,405,082 | ||||||
Investments in certificates of deposit
|
3,431,000 | 3,631,000 | ||||||
Securities available-for-sale
|
67,665,690 | 67,966,957 | ||||||
Restricted equity securities
|
2,860,700 | 3,123,200 | ||||||
Loans receivable, net (less allowance for loan losses of $5,984,083 and $5,845,730)
|
313,069,308 | 311,377,863 | ||||||
Loans held for sale
|
1,138,350 | 1,657,813 | ||||||
Accrued interest receivable
|
1,593,419 | 1,622,767 | ||||||
Foreclosed real estate
|
986,521 | 1,749,986 | ||||||
Premises and equipment, net
|
11,504,795 | 11,574,092 | ||||||
Rental real estate
|
2,009,186 | 2,036,455 | ||||||
Deferred taxes
|
1,422,266 | 1,351,639 | ||||||
Bank-owned life insurance
|
6,078,358 | 6,023,572 | ||||||
Prepaid FDIC assessment
|
872,338 | 954,947 | ||||||
Prepaid expenses and other assets
|
2,105,604 | 1,990,644 | ||||||
Assets of discontinued operations
|
601,036 | 555,601 | ||||||
Total assets
|
$ | 433,770,026 | $ | 433,021,618 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Deposits
|
$ | 361,215,118 | $ | 360,850,727 | ||||
Borrowed funds
|
25,750,000 | 25,750,000 | ||||||
Advances from borrowers for taxes and insurance
|
1,198,640 | 2,069,176 | ||||||
Accrued expenses and other liabilities
|
4,040,823 | 2,226,318 | ||||||
Liabilities of discontinued operations
|
62,130 | 27,915 | ||||||
Total liabilities
|
392,266,711 | 390,924,136 | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred stock, $.01 par value, authorized 3,000,000
|
||||||||
shares; no shares were issued or outstanding
|
- | - | ||||||
Common stock ($.01 par value, authorized 15,500,000
|
||||||||
shares; at March 31, 2012 and December 31, 2011
|
||||||||
1,357,073 shares were issued and outstanding)
|
13,567 | 13,557 | ||||||
Additional paid-in capital
|
17,583,483 | 18,167,895 | ||||||
Retained earnings, substantially restricted
|
23,059,506 | 23,017,789 | ||||||
Accumulated other comprehensive income
|
846,759 | 898,241 | ||||||
Total stockholders' equity
|
41,503,315 | 42,097,482 | ||||||
Total liabilities and stockholders' equity
|
$ | 433,770,026 | $ | 433,021,618 | ||||
See Notes to Consolidated Financial Statements.
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
Interest income:
|
||||||||
Loans, including fees
|
$ | 4,319,809 | $ | 4,759,385 | ||||
Securities
|
||||||||
Taxable
|
359,132 | 324,809 | ||||||
Nontaxable
|
107,453 | 45,944 | ||||||
Interest bearing deposits and other
|
19,207 | 45,469 | ||||||
4,805,601 | 5,175,607 | |||||||
Interest expense:
|
||||||||
Deposits
|
913,942 | 1,215,498 | ||||||
Borrowed funds
|
192,109 | 390,615 | ||||||
1,106,051 | 1,606,113 | |||||||
Net interest income
|
3,699,550 | 3,569,494 | ||||||
Provision for loan losses
|
150,000 | 300,000 | ||||||
Net interest income after provision for loan losses
|
3,549,550 | 3,269,494 | ||||||
Noninterest income:
|
||||||||
Fees and service charges
|
1,042,578 | 1,149,944 | ||||||
Gain on sale of loans
|
224,577 | 116,059 | ||||||
Other income
|
360,316 | 371,996 | ||||||
Total noninterest income
|
1,627,471 | 1,637,999 | ||||||
Noninterest expense:
|
||||||||
Compensation and employee benefits
|
2,019,555 | 1,790,030 | ||||||
Premises and equipment
|
437,399 | 495,766 | ||||||
Data processing
|
256,122 | 189,950 | ||||||
FDIC insurance expense
|
89,390 | 143,811 | ||||||
Foreclosed real estate impairment
|
30,789 | 71,538 | ||||||
Other expenses
|
1,856,898 | 1,264,077 | ||||||
Total noninterest expense
|
4,690,153 | 3,955,172 | ||||||
Income from continuing operations before income taxes
|
486,868 | 952,321 | ||||||
Provision for income taxes
|
405,408 | 282,200 | ||||||
Income from continuing operations
|
81,460 | 670,121 | ||||||
Income from operations of discontinued subsidiary, net of
income tax
|
45,075 | 20,111 | ||||||
Net income
|
$ | 126,535 | $ | 690,232 | ||||
Preferred stock dividends and accretion of discount
|
$ | - | $ | 132,354 | ||||
Net income available to common stockholders
|
$ | 126,535 | $ | 557,878 | ||||
Basic earnings per share:
|
||||||||
Income from continuing operations
|
$ | 0.06 | $ | 0.40 | ||||
Income from operations of discontinued subsidiary
|
$ | 0.03 | 0.01 | |||||
Net income applicable to common stock
|
$ | 0.09 | $ | 0.41 | ||||
Diluted earnings per share:
|
||||||||
Income from continuing operations
|
$ | 0.06 | $ | 0.40 | ||||
Income from operations of discontinued subsidiary
|
$ | 0.03 | 0.01 | |||||
Net income applicable to common stock
|
$ | 0.09 | $ | 0.41 | ||||
Dividends declared per common share
|
$ | 0.06 | $ | 0.01 | ||||
See Notes to Consolidated Financial Statements.
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
Net income
|
$ | 126,535 | $ | 690,232 | ||||
Other comprehensive income:
|
||||||||
Other securities:
|
||||||||
Unrealized holding gains (losses) arising during the period
|
(82,109 | ) | 182,313 | |||||
Realized net (gains) recognized into net income
|
- | - | ||||||
Net unrealized gains (losses) on other securities before tax (expense) benefit
|
(82,109 | ) | 182,313 | |||||
Tax (expense) benefit
|
30,627 | (68,003 | ) | |||||
Net unrealized gains (losses) on other securities, net of tax in other comprehensive income
|
(51,482 | ) | 114,310 | |||||
Other comprehensive income
|
(51,482 | ) | 114,310 | |||||
Comprehensive income
|
$ | 75,053 | $ | 804,542 | ||||
See Notes to Consolidated Financial Statements
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Three Months Ended March 31, 2011 and 2012
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||
Preferred
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Stockholders'
|
|||||||||||||||||||
Stock
|
Stock
|
Capital
|
Earnings
|
Income
|
Equity
|
|||||||||||||||||||
Balance, January 1, 2011
|
$ | 10,137,381 | $ | 13,502 | $ | 18,066,437 | $ | 21,047,295 | $ | (89,325 | ) | $ | 49,175,290 | |||||||||||
Net income
|
- | - | - | 690,232 | - | 690,232 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 114,310 | 114,310 | ||||||||||||||||||
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 | ||||||||||||
Balance, January 1, 2012
|
$ | - | $ | 13,557 | $ | 18,167,895 | $ | 23,017,789 | $ | 898,241 | $ | 42,097,482 | ||||||||||||
Net income
|
- | - | - | 126,535 | - | 126,535 | ||||||||||||||||||
Other comprehensive (loss)
|
- | - | - | - | (51,482 | ) | (51,482 | ) | ||||||||||||||||
Dividends on common stock
|
- | - | - | (84,818 | ) | - | (84,818 | ) | ||||||||||||||||
Repurchase of common stock warrant
|
- | - | (600,000 | ) | - | - | (600,000 | ) | ||||||||||||||||
Employee stock-based compensation
|
- | 10 | 15,588 | - | - | 15,598 | ||||||||||||||||||
Balance, March 31, 2012
|
$ | - | $ | 13,567 | $ | 17,583,483 | $ | 23,059,506 | $ | 846,759 | $ | 41,503,315 | ||||||||||||
See Notes to Consolidated Financial Statements
|
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
Three Months Ended
|
|||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 126,535 | $ | 690,232 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Provision for loan losses
|
150,000 | 300,000 | ||||||
Depreciation
|
208,720 | 216,416 | ||||||
Amortization and accretion
|
128,172 | 57,242 | ||||||
Deferred taxes
|
(40,000 | ) | 120,000 | |||||
Stock-based compensation expense
|
15,598 | 14,055 | ||||||
Gain on sale of foreclosed real estate and loans, net
|
(260,776 | ) | (81,350 | ) | ||||
Foreclosed real estate impairment
|
30,789 | 71,538 | ||||||
Increase in value of bank-owned life insurance
|
(54,786 | ) | (58,102 | ) | ||||
Proceeds from sales of loans held-for-sale
|
10,351,333 | 6,273,106 | ||||||
Originations of loans held-for-sale
|
(9,607,293 | ) | (6,054,869 | ) | ||||
Change in assets and liabilities:
|
||||||||
Accrued interest receivable
|
29,348 | 48,673 | ||||||
Prepaid expenses and other assets
|
(40,802 | ) | 158,664 | |||||
Accrued expenses and other liabilities
|
1,771,590 | (95,085 | ) | |||||
Net cash provided by operating activities
|
2,808,428 | 1,660,520 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Net change in loans
|
(2,114,521 | ) | 11,752,590 | |||||
Proceeds from redemption of restricted equity securities
|
284,800 | 500,300 | ||||||
Purchase of restricted equity securities
|
(22,300 | ) | - | |||||
Proceeds from maturities on investments in certificates of deposits
|
200,000 | 4,275,000 | ||||||
Proceeds from maturities and calls of securities available-for-sale
|
2,926,605 | 3,857,898 | ||||||
Purchase of securities available-for-sale
|
(2,827,419 | ) | (10,233,887 | ) | ||||
Purchase of premises, equipment and rental real estate
|
(123,189 | ) | (175,040 | ) | ||||
Net proceeds from sale of foreclosed real estate
|
1,013,665 | 1,838,301 | ||||||
Net cash provided by (used in) investing activities
|
(662,359 | ) | 11,815,162 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net increase in deposits
|
364,391 | 17,593,333 | ||||||
Net decrease in advances from borrowers for taxes
|
||||||||
and insurance
|
(870,536 | ) | (855,905 | ) | ||||
Payments of other borrowed funds
|
- | (10,000,000 | ) | |||||
Repurchase of common stock warrant
|
(600,000 | ) | - | |||||
Common and preferred dividends paid
|
(13,551 | ) | (154,529 | ) | ||||
Net cash provided by (used in) financing activities
|
(1,119,696 | ) | 6,582,899 | |||||
Net increase in cash
|
1,026,373 | 20,058,581 | ||||||
CASH AND DUE FROM BANKS
|
||||||||
Beginning
|
17,405,082 | 20,603,808 | ||||||
Ending
|
$ | 18,431,455 | $ | 40,662,389 |
NORTH CENTRAL BANCSHARES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
|
||||||||
(Unaudited)
|
Three Months Ended
|
|||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
|
||||||||
INFORMATION
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$ | 1,102,017 | $ | 1,630,573 | ||||
Income taxes
|
230,708 | 3,065 | ||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH OPERATING,
|
||||||||
INVESTING AND FINANCING ACTIVITIES
|
||||||||
Transfers from loans to other real estate owned
|
$ | 238,927 | $ | 674,430 | ||||
See Notes to Consolidated Financial Statements.
|
Three Months Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
Income from continuing operations
|
$ | 81,460 | $ | 670,121 | ||||
Preferred stock dividends and accretion of discount
|
- | 132,354 | ||||||
Income from continuing operations available to
|
||||||||
common stockholders
|
$ | 81,460 | $ | 537,767 | ||||
Income from operations of discontinued subsidiary, net of tax
|
45,075 | 20,111 | ||||||
Net income available to common stockholders
|
$ | 126,535 | $ | 557,878 | ||||
Weighted average common shares outstanding - basic
|
1,352,948 | 1,347,948 | ||||||
Effect of dilutive securities:
|
||||||||
Stock options1
|
- | - | ||||||
Restricted stock
|
4,125 | 3,500 | ||||||
Common stock warrant
|
- | 6,083 | ||||||
Total diluted average common shares issued and
|
1,357,073 | 1,357,531 | ||||||
outstanding
|
||||||||
Basic earnings per share:
|
||||||||
Income from continuing operations
|
$ | 0.06 | $ | 0.40 | ||||
Income from operations of discontinued subsidiary
|
0.03 | 0.01 | ||||||
Net income applicable to common stock
|
$ | 0.09 | $ | 0.41 | ||||
Diluted earnings per share:
|
||||||||
Income from continuing operations
|
$ | 0.06 | $ | 0.40 | ||||
Income from operations of discontinued subsidiary
|
0.03 | 0.01 | ||||||
Net income applicable to common stock
|
$ | 0.09 | $ | 0.41 | ||||
1For the periods ending March 31, 2012 and 2011, outstanding options to purchase common stock totaled
|
||||||||
43,500 and 51,700, respectively. These options were not dilutive because the exercise price
|
||||||||
of the options exceeded the average closing price for the Company's common stock.
|
Securities available-for-sale as of March 31, 2012 were as follows:
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
Cost
|
Gains
|
(Losses)
|
Fair Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
U.S. Government agencies
|
$ | 5,249,999 | $ | 40,096 | $ | (780 | ) | $ | 5,289,315 | |||||||
Mortgage-backed securities(1)
|
16,512,384 | 554,824 | - | 17,067,208 | ||||||||||||
Collateralized mortgage obligations(1)
|
24,368,437 | 407,061 | (5,137 | ) | 24,770,361 | |||||||||||
State and local obligations
|
16,576,574 | 380,808 | (96,988 | ) | 16,860,394 | |||||||||||
Corporate bonds
|
3,607,804 | 70,608 | - | 3,678,412 | ||||||||||||
Total
|
$ | 66,315,198 | $ | 1,453,397 | $ | (102,905 | ) | $ | 67,665,690 | |||||||
Securities available-for-sale as of December 31, 2011 were as follows:
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
Cost
|
Gains
|
(Losses)
|
Fair Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
U.S. Government agencies
|
$ | 5,249,999 | $ | 50,496 | $ | - | $ | 5,300,495 | ||||||||
Mortgage-backed securities(1)
|
17,709,321 | 550,073 | - | 18,259,394 | ||||||||||||
Collateralized mortgage obligations(1)
|
26,190,653 | 485,319 | (19,124 | ) | 26,656,848 | |||||||||||
State and local obligations
|
13,768,845 | 389,826 | (5,468 | ) | 14,153,203 | |||||||||||
Corporate bonds
|
3,615,538 | 4,750 | (23,271 | ) | 3,597,017 | |||||||||||
Total
|
$ | 66,534,356 | $ | 1,480,464 | $ | (47,863 | ) | $ | 67,966,957 | |||||||
(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, 2012
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
U.S. Government agencies
|
$ | 249,220 | $ | (780 | ) | $ | - | $ | - | $ | 249,220 | $ | (780 | ) | ||||||||||
Collateralized mortgage obligations
|
1,472,255 | (5,137 | ) | - | - | 1,472,255 | (5,137 | ) | ||||||||||||||||
State and local obligations
|
1,927,008 | (96,988 | ) | - | - | 1,927,008 | (96,988 | ) | ||||||||||||||||
Total
|
$ | 3,648,483 | $ | (102,905 | ) | $ | - | $ | - | $ | 3,648,483 | $ | (102,905 | ) | ||||||||||
December 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:
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
$ | 3,333,267 | $ | (19,124 | ) | $ | - | $ | - | $ | 3,333,267 | $ | (19,124 | ) | ||||||||||
State and local obligations
|
1,121,587 | (5,468 | ) | - | - | 1,121,587 | (5,468 | ) | ||||||||||||||||
Corporate bonds
|
2,337,518 | (23,271 | ) | - | - | 2,337,518 | (23,271 | ) | ||||||||||||||||
Total
|
$ | 6,792,372 | $ | (47,863 | ) | $ | - | $ | - | $ | 6,792,372 | $ | (47,863 | ) |
Debt Securities Available-for-Sale
|
||||||||
March 31, 2012
|
||||||||
Amortized
|
||||||||
Cost
|
Fair Value
|
|||||||
Due in one year or less
|
$ | 815,000 | $ | 818,194 | ||||
Due from one to five years
|
8,168,731 | 8,289,302 | ||||||
Due from five to ten years
|
6,188,797 | 6,366,918 | ||||||
Due over 10 years
|
10,261,848 | 10,353,707 | ||||||
Mortgage-backed securities and
|
||||||||
collateralized mortgage obligations
|
40,880,821 | 41,837,569 | ||||||
$ | 66,315,197 | $ | 67,665,690 |
March 31, 2012
|
December 31, 2011
|
|||||||
First mortgage loans:
|
||||||||
1-4 family residential real estate
|
$ | 140,660,968 | $ | 138,581,219 | ||||
Multifamily real estate
|
47,450,183 | 48,656,251 | ||||||
Commercial real estate
|
71,256,893 | 67,322,328 | ||||||
Construction and land development
|
1,926,822 | 2,111,575 | ||||||
Total first mortgage loans
|
261,294,866 | 256,671,373 | ||||||
Consumer loans:
|
||||||||
Automobile
|
13,495,516 | 13,829,186 | ||||||
Second mortgage
|
41,452,940 | 43,897,879 | ||||||
Other
|
3,393,423 | 3,666,196 | ||||||
Total consumer loans
|
58,341,879 | 61,393,261 | ||||||
Total loans
|
319,636,745 | 318,064,634 | ||||||
Undisbursed portion of construction loans
|
(166,893 | ) | (470,938 | ) | ||||
Unearned premiums, net
|
16,061 | 22,340 | ||||||
Net deferred loan origination fees
|
(432,522 | ) | (392,443 | ) | ||||
Allowance for loan losses
|
(5,984,083 | ) | (5,845,730 | ) | ||||
$ | 313,069,308 | $ | 311,377,863 |
For the Three Months Ended March 31, 2012
|
||||||||||||||||||||||||
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
|
$ | 2,527,282 | $ | 330,838 | $ | 516,107 | $ | 1,128,318 | $ | 1,343,185 | $ | 5,845,730 | ||||||||||||
Charge-offs
|
- | - | - | (18,834 | ) | (46,379 | ) | (65,213 | ) | |||||||||||||||
Recoveries
|
15,000 | - | - | 37,851 | 715 | 53,566 | ||||||||||||||||||
Provisions
|
233,583 | 24,545 | (20,996 | ) | 18,713 | (105,845 | ) | 150,000 | ||||||||||||||||
Ending balance
|
$ | 2,775,865 | $ | 355,383 | $ | 495,111 | $ | 1,166,048 | $ | 1,191,676 | $ | 5,984,083 | ||||||||||||
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 |
March 31, 2012
|
||||||||||||||||||||||||
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
|
$ | 897,850 | $ | 202,000 | $ | - | $ | 177,929 | $ | 64,450 | $ | 1,342,229 | ||||||||||||
Collectively evaluated for impairment
|
1,878,015 | 153,383 | 495,111 | 988,119 | 1,127,226 | 4,641,854 | ||||||||||||||||||
Total ending allowance balance
|
$ | 2,775,865 | $ | 355,383 | $ | 495,111 | $ | 1,166,048 | $ | 1,191,676 | $ | 5,984,083 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 8,393,925 | $ | 1,652,254 | $ | - | $ | 5,073,295 | $ | 397,883 | $ | 15,517,357 | ||||||||||||
Collectively evaluated for impairment
|
62,862,968 | 274,568 | 47,450,183 | 135,587,673 | 57,943,996 | 304,119,388 | ||||||||||||||||||
Total ending loan balance
|
$ | 71,256,893 | $ | 1,926,822 | $ | 47,450,183 | $ | 140,660,968 | $ | 58,341,879 | $ | 319,636,745 | ||||||||||||
December 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
|
$ | 738,650 | $ | 202,000 | $ | - | $ | 142,400 | $ | 61,582 | $ | 1,144,632 | ||||||||||||
Collectively evaluated for impairment
|
1,788,632 | 128,838 | 516,107 | 985,918 | 1,281,603 | 4,701,098 | ||||||||||||||||||
Total ending allowance balance
|
$ | 2,527,282 | $ | 330,838 | $ | 516,107 | $ | 1,128,318 | $ | 1,343,185 | $ | 5,845,730 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 8,421,631 | $ | 1,835,950 | $ | - | $ | 4,509,307 | $ | 478,757 | $ | 15,245,645 | ||||||||||||
Collectively evaluated for impairment
|
58,900,697 | 275,625 | 48,656,251 | 134,071,912 | 60,914,504 | 302,818,989 | ||||||||||||||||||
Total ending loan balance
|
$ | 67,322,328 | $ | 2,111,575 | $ | 48,656,251 | $ | 138,581,219 | $ | 61,393,261 | $ | 318,064,634 |
March 31, 2012
|
||||||||||||||||
Unpaid Principal
|
Associated
|
Average
|
||||||||||||||
Carrying Amount
|
Balance
|
Allowance
|
Balance
|
|||||||||||||
With no specific allowance recorded:
|
||||||||||||||||
Commercial Real Estate
|
$ | - | $ | - | $ | - | ||||||||||
Construction and Land Development
|
- | - | - | |||||||||||||
Multi-Family Real Esate
|
- | - | - | |||||||||||||
1-4 Family Residential Real Estate
|
4,153,069 | 4,153,069 | - | |||||||||||||
Consumer
|
273,721 | 273,721 | - | |||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial Real Estate
|
8,393,925 | 8,393,925 | 897,850 | |||||||||||||
Construction and Land Development
|
1,652,254 | 1,652,254 | 202,000 | |||||||||||||
Multi-Family Real Esate
|
- | - | - | |||||||||||||
1-4 Family Residential Real Estate
|
920,226 | 920,226 | 177,929 | |||||||||||||
Consumer
|
124,162 | 124,162 | 64,450 | |||||||||||||
Total:
|
||||||||||||||||
Commercial Real Estate
|
8,393,925 | 8,393,925 | 897,850 | $ | 8,403,139 | |||||||||||
Construction and Land Development
|
1,652,254 | 1,652,254 | 202,000 | 1,690,426 | ||||||||||||
Multi-Family Real Esate
|
- | - | - | - | ||||||||||||
1-4 Family Residential Real Estate
|
5,073,295 | 5,073,295 | 177,929 | 4,803,098 | ||||||||||||
Consumer
|
397,883 | 397,883 | 64,450 | 438,252 | ||||||||||||
$ | 15,517,357 | $ | 15,517,357 | $ | 1,342,229 | $ | 15,334,915 | |||||||||
December 31, 2011
|
||||||||||||||||
Unpaid Principal
|
Associated
|
Average
|
||||||||||||||
Carrying Amount
|
Balance
|
Allowance
|
Balance
|
|||||||||||||
With no specific allowance recorded:
|
||||||||||||||||
Commercial Real Estate
|
$ | - | $ | - | $ | - | ||||||||||
Construction and Land Development
|
- | - | - | |||||||||||||
Multi-Family Real Esate
|
- | - | - | |||||||||||||
1-4 Family Residential Real Estate
|
3,764,936 | 3,764,936 | - | |||||||||||||
Consumer
|
349,300 | 349,300 | - | |||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial Real Estate
|
8,421,631 | 8,421,631 | 738,650 | |||||||||||||
Construction and Land Development
|
1,835,950 | 1,835,950 | 202,000 | |||||||||||||
Multi-Family Real Esate
|
- | - | - | |||||||||||||
1-4 Family Residential Real Estate
|
744,371 | 744,371 | 142,400 | |||||||||||||
Consumer
|
129,457 | 129,457 | 61,582 | |||||||||||||
Total:
|
||||||||||||||||
Commercial Real Estate
|
8,421,631 | 8,421,631 | 738,650 | $ | 8,797,584 | |||||||||||
Construction and Land Development
|
1,835,950 | 1,835,950 | 202,000 | 2,475,918 | ||||||||||||
Multi-Family Real Esate
|
- | - | - | 389,657 | ||||||||||||
1-4 Family Residential Real Estate
|
4,509,307 | 4,509,307 | 142,400 | 4,782,398 | ||||||||||||
Consumer
|
478,757 | 478,757 | 61,582 | 785,557 | ||||||||||||
$ | 15,245,645 | $ | 15,245,645 | $ | 1,144,632 | $ | 17,231,114 |
Commercial Loans
|
||||||||||||||||||||||||||||||||
Credit risk profile by internally assigned grade
|
||||||||||||||||||||||||||||||||
March 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||
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
|
$ | 56,730,750 | $ | 274,568 | $ | 43,947,518 | $ | 100,952,836 | $ | 52,737,956 | $ | 275,625 | $ | 45,239,400 | $ | 98,252,981 | ||||||||||||||||
Watch
|
6,936,355 | - | 3,502,665 | 10,439,020 | 6,162,741 | - | 3,416,851 | 9,579,592 | ||||||||||||||||||||||||
Special Mention
|
5,008,889 | - | - | 5,008,889 | - | - | - | - | ||||||||||||||||||||||||
Substandard
|
1,984,049 | 1,450,254 | - | 3,434,303 | 7,682,981 | 1,633,950 | - | 9,316,931 | ||||||||||||||||||||||||
Doubtful
|
596,850 | 202,000 | - | 798,850 | 738,650 | 202,000 | - | 940,650 | ||||||||||||||||||||||||
$ | 71,256,893 | $ | 1,926,822 | $ | 47,450,183 | $ | 120,633,898 | $ | 67,322,328 | $ | 2,111,575 | $ | 48,656,251 | $ | 118,090,154 | |||||||||||||||||
Residential Real Estate and Consumer Loans
|
||||||||||||||||||||||||||||||||
Credit risk profile based on delinquency status
|
||||||||||||||||||||||||||||||||
March 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||
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
|
$ | 138,908,965 | $ | 41,344,535 | $ | 16,726,304 | $ | 196,979,804 | $ | 136,573,437 | $ | 43,582,655 | $ | 17,201,581 | $ | 197,357,673 | ||||||||||||||||
Past due 30-89 days
|
453,680 | 41,587 | 87,699 | 582,966 | 921,298 | 117,620 | 233,208 | 1,272,126 | ||||||||||||||||||||||||
Past due 90 days and greater
|
1,298,323 | 66,818 | 74,936 | 1,440,077 | 1,086,484 | 197,604 | 60,593 | 1,344,681 | ||||||||||||||||||||||||
$ | 140,660,968 | $ | 41,452,940 | $ | 16,888,939 | $ | 199,002,847 | $ | 138,581,219 | $ | 43,897,879 | $ | 17,495,382 | $ | 199,974,480 |
30-89 Days
|
90 Days Past Due
|
|||||||||||||||||||
Past Due
|
and Greater
|
Total Past Due
|
Current
|
Total
|
||||||||||||||||
March 31, 2012
|
||||||||||||||||||||
Commercial Loans:
|
||||||||||||||||||||
Commercial Real Estate
|
$ | - | $ | 1,364,250 | $ | 1,364,250 | $ | 69,892,643 | $ | 71,256,893 | ||||||||||
Construction and Land Development
|
- | 1,132,119 | 1,132,119 | 794,703 | 1,926,822 | |||||||||||||||
Multi-Family Real Estate
|
- | - | - | 47,450,183 | 47,450,183 | |||||||||||||||
1-4 Family Residential Real Estate
|
453,680 | 1,298,323 | 1,752,003 | 138,908,965 | 140,660,968 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Second mortgage
|
41,587 | 66,818 | 108,405 | 41,344,535 | 41,452,940 | |||||||||||||||
Other consumer loans
|
87,699 | 74,936 | 162,635 | 16,726,304 | 16,888,939 | |||||||||||||||
$ | 582,966 | $ | 3,936,446 | $ | 4,519,412 | $ | 315,117,333 | $ | 319,636,745 | |||||||||||
December 31, 2011
|
||||||||||||||||||||
Commercial Loans:
|
||||||||||||||||||||
Commercial Real Estate
|
$ | 26,796 | $ | - | $ | 26,796 | $ | 67,295,532 | $ | 67,322,328 | ||||||||||
Construction and Land Development
|
1,132,119 | 703,831 | 1,835,950 | 275,625 | 2,111,575 | |||||||||||||||
Multi-Family Real Estate
|
- | - | - | 48,656,251 | 48,656,251 | |||||||||||||||
1-4 Family Residential Real Estate
|
921,298 | 1,086,484 | 2,007,782 | 136,573,437 | 138,581,219 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Second mortgage
|
117,620 | 197,604 | 315,224 | 43,582,655 | 43,897,879 | |||||||||||||||
Other consumer loans
|
233,208 | 60,593 | 293,801 | 17,201,581 | 17,495,382 | |||||||||||||||
$ | 2,431,041 | $ | 2,048,512 | $ | 4,479,553 | $ | 313,585,081 | $ | 318,064,634 |
March 31, 2012
|
December 31, 2011
|
|||||||
Commercial Loans:
|
||||||||
Commercial Real Estate
|
$ | 1,508,299 | $ | 1,511,299 | ||||
Construction and Land Development
|
1,652,254 | 1,835,950 | ||||||
Multi-Family Real Estate
|
- | - | ||||||
1-4 Family Residential Real Estate
|
1,570,293 | 1,086,485 | ||||||
Consumer:
|
||||||||
Second mortgage
|
66,818 | 197,603 | ||||||
Other consumer loans
|
74,936 | 60,593 | ||||||
$ | 4,872,600 | $ | 4,691,930 |
Three Months Ended March 31, 2012
|
||||||||||||
Number of Loans
|
Pre-restructuring Outstanding Recorded Investment
|
Post-restructuring Outstanding Recorded Investment
|
||||||||||
Troubled debt restructurings:
|
||||||||||||
Commercial Real Estate
|
- | $ | - | $ | - | |||||||
Construction and Land Development
|
- | - | - | |||||||||
Multi-Family Real Estate
|
- | - | - | |||||||||
1-4 Family Residential Real Estate
|
4 | 189,740 | 193,464 | |||||||||
Consumer
|
1 | 25,982 | 25,982 | |||||||||
Total:
|
5 | $ | 215,722 | $ | 219,446 |
March 31, 2012
|
||||||||
Number of Loans
|
Principal Balance of Defaulted Loans
|
|||||||
Commercial Real Estate
|
- | $ | - | |||||
Construction and Land Development
|
1 | 703,831 | ||||||
Multi-Family Real Estate
|
- | - | ||||||
1-4 Family Residential Real Estate
|
3 | 191,531 | ||||||
Consumer
|
2 | 31,434 | ||||||
Total:
|
6 | $ | 926,796 |
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, 2012
|
||||||||||||||||
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:
|
||||||||||||||||
U.S. Government agencies
|
$ | - | $ | 5,289,315 | $ | - | $ | 5,289,315 | ||||||||
Mortgage-backed securities
|
- | 17,067,208 | - | 17,067,208 | ||||||||||||
Collateralized mortgage obligations
|
- | 24,770,361 | - | 24,770,361 | ||||||||||||
State and local obligations
|
- | 16,860,394 | - | 16,860,394 | ||||||||||||
Corporate bonds
|
3,678,412 | - | - | 3,678,412 | ||||||||||||
Total securities available-for-sale
|
$ | 3,678,412 | $ | 63,987,278 | $ | - | $ | 67,665,690 | ||||||||
Fair Value Measurements at December 31, 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:
|
||||||||||||||||
U.S. Government agencies
|
$ | - | $ | 5,300,495 | $ | - | $ | 5,300,495 | ||||||||
Mortgage-backed securities
|
- | 18,259,394 | - | 18,259,394 | ||||||||||||
Collateralized mortgage obligations
|
- | 26,656,848 | - | 26,656,848 | ||||||||||||
State and local obligations
|
- | 14,153,203 | - | 14,153,203 | ||||||||||||
Corporate bonds
|
3,597,017 | - | - | 3,597,017 | ||||||||||||
Total securities available-for-sale
|
$ | 3,597,017 | 64,369,940 | - | 67,966,957 |
Fair Value Measurements at March 31, 2012
|
||||||||||||||||
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
|
$ | - | $ | - | $ | 9,748,338 | $ | 9,748,338 | ||||||||
Foreclosed real estate
|
- | - | 986,521 | 986,521 | ||||||||||||
Title plant
|
- | - | 475,704 | 475,704 | ||||||||||||
Total
|
$ | - | $ | - | $ | 11,210,563 | $ | 11,210,563 | ||||||||
Fair Value Measurements at December 31, 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
|
$ | - | $ | - | $ | 9,986,777 | $ | 9,986,777 | ||||||||
Foreclosed real estate
|
- | - | 1,749,986 | 1,749,986 | ||||||||||||
Title plant
|
- | - | 475,704 | 475,704 | ||||||||||||
Total
|
$ | - | $ | - | $ | 12,212,467 | $ | 12,212,467 |
|
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.
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||||
Fair Value
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Hierarchy Level
|
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(nearest 000)
|
(nearest 000)
|
||||||||||||||||
Financial assets:
|
|||||||||||||||||
Cash and due from banks
|
Level 1
|
$ | 18,431,455 | $ | 18,431,000 | $ | 17,405,082 | $ | 17,405,000 | ||||||||
Investments in certificates of deposit
|
Level 1
|
3,431,000 | 3,431,000 | 3,631,000 | 3,631,000 | ||||||||||||
Securities available-for-sale
|
See previous table
|
67,665,690 | 67,666,000 | 67,966,957 | 67,967,000 | ||||||||||||
FHLB stock
|
Level 1
|
2,860,700 | 2,861,000 | 3,123,200 | 3,123,000 | ||||||||||||
Loans, net
|
Level 2
|
313,069,308 | 323,908,000 | 311,377,863 | 320,358,000 | ||||||||||||
Loans held for sale
|
Level 2
|
1,138,350 | 1,138,000 | 1,657,813 | 1,658,000 | ||||||||||||
Accrued interest receivable
|
Level 1
|
1,593,419 | 1,593,000 | 1,622,767 | 1,623,000 | ||||||||||||
Financial liabilities:
|
|||||||||||||||||
Deposits
|
Level 2
|
361,215,118 | 363,288,000 | 360,850,727 | 362,938,000 | ||||||||||||
Borrowed funds
|
Level 2
|
25,750,000 | 26,645,000 | 25,750,000 | 26,697,000 | ||||||||||||
Accrued interest payable
|
Level 1
|
25,411 | 25,000 | 21,377 | 21,000 |
Three Months Ended March 31, 2012
|
Three Months Ended March 31, 2011
|
|||||||||||||||||||||||
Traditional
|
Traditional
|
|||||||||||||||||||||||
Banking
|
All Others
|
Total
|
Banking
|
All Others
|
Total
|
|||||||||||||||||||
Interest income
|
$ | 4,805,601 | $ | - | $ | 4,805,601 | $ | 5,175,607 | $ | - | $ | 5,175,607 | ||||||||||||
Interest expense
|
1,083,514 | 22,537 | 1,106,051 | 1,578,898 | 27,215 | 1,606,113 | ||||||||||||||||||
Net interest income (loss)
|
3,722,087 | (22,537 | ) | 3,699,550 | 3,596,709 | (27,215 | ) | 3,569,494 | ||||||||||||||||
Provision for loan losses
|
150,000 | - | 150,000 | 300,000 | - | 300,000 | ||||||||||||||||||
Net interest income (loss) after
|
||||||||||||||||||||||||
provision for loan losses
|
3,572,087 | (22,537 | ) | 3,549,550 | 3,296,709 | (27,215 | ) | 3,269,494 | ||||||||||||||||
Noninterest income
|
1,364,256 | 263,215 | 1,627,471 | 1,374,018 | 263,981 | 1,637,999 | ||||||||||||||||||
Securities gains (losses), net
|
- | - | - | - | - | - | ||||||||||||||||||
Noninterest expense
|
4,410,809 | 279,344 | 4,690,153 | 3,663,160 | 292,012 | 3,955,172 | ||||||||||||||||||
Income (loss) before income taxes
|
525,534 | (38,666 | ) | 486,868 | 1,007,567 | (55,246 | ) | 952,321 | ||||||||||||||||
Provision for income taxes
|
403,708 | 1,700 | 405,408 | 280,100 | 2,100 | 282,200 | ||||||||||||||||||
Income from continuing operations
|
121,826 | (40,366 | ) | 81,460 | 727,467 | (57,346 | ) | 670,121 | ||||||||||||||||
Income from discontinued operations
|
- | 45,075 | 45,075 | - | 20,111 | 20,111 | ||||||||||||||||||
Net income
|
$ | 121,826 | $ | 4,709 | $ | 126,535 | $ | 727,467 | $ | (37,235 | ) | $ | 690,232 | |||||||||||
Inter-segment revenue (expense)
|
$ | 95,555 | $ | (95,555 | ) | $ | - | $ | 114,156 | $ | (114,156 | ) | $ | - | ||||||||||
Total assets
|
$ | 430,417,205 | $ | 3,352,821 | $ | 433,770,026 | $ | 456,147,437 | $ | 3,460,657 | $ | 459,608,094 | ||||||||||||
Total deposits
|
$ | 361,215,118 | $ | - | $ | 361,215,118 | $ | 367,426,237 | $ | - | $ | 367,426,237 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Title plant
|
$ | 475,704 | $ | 475,704 | ||||
Other assets
|
125,332 | 79,897 | ||||||
$ | 601,036 | $ | 555,601 | |||||
Other liabilities
|
$ | 62,130 | $ | 27,915 |
Three Months Ended March 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Percent
|
Percent
|
|||||||||||||||
of Pretax
|
of Pretax
|
|||||||||||||||
Amount
|
Income
|
Amount
|
Income
|
|||||||||||||
Income from continuing operations before income taxes
|
$ | 165,535 | 34.0 | % | $ | 323,789 | 34.0 | % | ||||||||
Nontaxable income
|
(57,179 | ) | (11.7 | ) | (37,967 | ) | (4.0 | ) | ||||||||
Nondeductible merger expenses
|
289,975 | 59.6 | - | - | ||||||||||||
State income tax, net of
|
||||||||||||||||
federal income tax benefit
|
37,332 | 7.7 | 22,301 | 2.3 | ||||||||||||
Low income housing tax credits
|
(59,303 | ) | (12.2 | ) | (56,350 | ) | (5.9 | ) | ||||||||
Other
|
29,048 | 5.9 | 30,427 | 3.2 | ||||||||||||
Income tax expense
|
$ | 405,408 | 83.3 | % | $ | 282,200 | 29.6 | % |
•
|
On March 12, 2012, the Company entered into a Merger Agreement with Great Western and 150. Under the terms of the Merger Agreement, and subject to the terms and conditions thereof, 150 will merge with and into the Company, which shall be the surviving corporation and will become wholly-owned by Great Western. Subject to certain conditions contained in the Merger Agreement, upon effectiveness of the Merger, each issued and outstanding share of common stock of the Company will be converted into the right to receive $30.58 per share in cash. The aggregate consideration that the shareholders of the Company will receive as a result of the Merger is approximately $41.5 million.
|
||
•
|
On December 14, 2011, the Company redeemed all of its 10,200 shares of its Series A preferred stock issued to the U.S. Treasury Department (“Treasury”) under the Treasury’s Troubled Asset Relief Program Capital Purchase Program (“TARP CPP”) for $10,200,000. On January 11, 2012, the Company completed the repurchase of a warrant to purchase 99,157 shares of the Company’s common stock held by the Treasury (“Warrant”). The Company paid $600,000 to the Treasury to repurchase the Warrant. The Company was able to accomplish these actions without raising additional capital or incurring holding company debt. With these transactions, the Treasury no longer holds any investment in the Company and the Company is no longer subject to TARP CPP-related restrictions on executive compensation and payment of dividends.
|
||
•
|
Loans amounted to $313.1 million as of March 31, 2012 compared to $311.4 million as of December 31, 2011, representing an increase of 0.5%. The increase in the loan portfolio is primarily the result of growth in commercial real estate lending.
|
||
•
|
Nonperforming assets decreased $574,000 from $6.5 million at December 31, 2011 to $5.9 million at March 31, 2012. The Bank recorded a provision for loan losses of $150,000 for the three months ended March 31, 2012 compared to $300,000 for the same period in 2011. 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 cannot be eliminated.
|
||
•
|
The Bank continues to meet the requirements to be considered “well capitalized” under regulatory capital requirements with a total risk based capital ratio of 14.8% at March 31, 2012.
|
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
First mortgage loans:
|
||||||||
One- to four-family residential
|
$ | 1,570 | $ | 1,087 | ||||
Multifamily and commercial properties
|
3,161 | 3,347 | ||||||
Consumer loans
|
142 | 258 | ||||||
Total nonaccrual loans
|
4,873 | 4,692 | ||||||
90 days past due loans (still
|
||||||||
accruing interest)
|
- | - | ||||||
Other nonperforming loans
|
- | - | ||||||
Total nonperforming loans
|
4,873 | 4,692 | ||||||
Total foreclosed real estate
|
987 | 1,750 | ||||||
Other nonperforming assets
|
44 | 36 | ||||||
Total nonperforming assets
|
$ | 5,904 | $ | 6,478 | ||||
Total nonaccrual loans to net loans receivable
|
1.56 | % | 1.51 | % | ||||
Total nonaccrual loans to total assets
|
1.12 | % | 1.08 | % | ||||
Total nonperforming assets to total assets
|
1.36 | % | 1.50 | % |
Three Months Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
Net income
|
$ | 126,535 | $ | 690,232 | ||||
Average assets
|
434,922,529 | 451,668,232 | ||||||
Average stockholders equity
|
42,224,588 | 49,473,381 | ||||||
Return on assets
|
0.12 | % | 0.61 | % | ||||
Return on equity
|
1.20 | % | 5.58 | % | ||||
Efficiency ratio
|
88.04 | % | 75.95 | % | ||||
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:
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 317,782,540 | $ | 4,319,809 | 5.44 | % | $ | 334,558,557 | $ | 4,759,385 | 5.72 | % | ||||||||||||
Securities available-for-sale
|
69,523,196 | 466,585 | 2.68 | % | 53,568,546 | 370,753 | 2.77 | % | ||||||||||||||||
Investments in certificates of deposit
|
3,437,452 | 10,254 | 1.20 | % | 11,305,326 | 35,686 | 1.28 | % | ||||||||||||||||
Interest-bearing cash
|
14,958,075 | 8,953 | 0.24 | % | 19,225,734 | 9,783 | 0.21 | % | ||||||||||||||||
Total interest-earning assets
|
$ | 405,701,263 | $ | 4,805,601 | 4.74 | % | $ | 418,658,163 | $ | 5,175,607 | 4.97 | % | ||||||||||||
Noninterest-earning assets
|
29,221,266 | 33,010,069 | ||||||||||||||||||||||
Total assets
|
$ | 434,922,529 | $ | 451,668,232 | ||||||||||||||||||||
Liabilities and Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW and money market savings
|
$ | 171,158,194 | $ | 213,561 | 0.50 | % | $ | 152,169,618 | $ | 315,676 | 0.84 | % | ||||||||||||
Savings
|
35,260,735 | 8,664 | 0.10 | % | 31,406,321 | 10,403 | 0.13 | % | ||||||||||||||||
Certificates of deposit
|
133,362,602 | 691,717 | 2.08 | % | 151,906,364 | 889,419 | 2.37 | % | ||||||||||||||||
Borrowed funds
|
25,755,376 | 192,109 | 2.99 | % | 42,583,333 | 390,615 | 3.72 | % | ||||||||||||||||
Total interest-bearing liabilities
|
$ | 365,536,907 | $ | 1,106,051 | 1.21 | % | $ | 378,065,636 | $ | 1,606,113 | 1.72 | % | ||||||||||||
Noninterest-bearing liabilities
|
27,161,034 | 24,129,215 | ||||||||||||||||||||||
Total liabilities
|
$ | 392,697,941 | $ | 402,194,851 | ||||||||||||||||||||
Equity
|
42,224,588 | 49,473,381 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 434,922,529 | $ | 451,668,232 | ||||||||||||||||||||
Net interest income
|
$ | 3,699,550 | $ | 3,569,494 | ||||||||||||||||||||
Net interest rate spread
|
3.53 | % | 3.25 | % | ||||||||||||||||||||
Net interest margin
|
3.65 | % | 3.41 | % | ||||||||||||||||||||
Ratio of average interest-earnings assets to
|
||||||||||||||||||||||||
average interest-bearing liabilities
|
110.99 | % | 110.74 | % |
Three Months Ended March 31,
|
||||||||||||||||
2012
|
2011
|
Change
|
Change %
|
|||||||||||||
Noninterest income:
|
||||||||||||||||
Fees and service charges
|
$ | 1,042,578 | $ | 1,149,944 | $ | (107,366 | ) | -9.3 | % | |||||||
Gain on sale of loans
|
224,577 | 116,059 | 108,518 | 93.5 | % | |||||||||||
Other income:
|
||||||||||||||||
Increase in CSV - BOLI
|
54,786 | 58,102 | (3,316 | ) | -5.7 | % | ||||||||||
Investment and Insurance sales
|
165,969 | 163,942 | 2,027 | 1.2 | % | |||||||||||
Rental income
|
118,894 | 121,819 | (2,925 | ) | -2.4 | % | ||||||||||
Loan prepayment fees
|
12,372 | 1,200 | 11,172 | 931.0 | % | |||||||||||
All other
|
8,295 | 26,933 | (18,638 | ) | -69.2 | % | ||||||||||
Total other income
|
$ | 360,316 | $ | 371,996 | $ | (11,680 | ) | -3.1 | % | |||||||
Total noninterest income
|
$ | 1,627,471 | $ | 1,637,999 | $ | (10,528 | ) | -0.6 | % |
Three Months Ended March 31,
|
||||||||||||||||
2012
|
2011
|
Change
|
Change %
|
|||||||||||||
Noninterest expense:
|
||||||||||||||||
Compensation and employee benefits
|
$ | 2,019,555 | $ | 1,790,030 | $ | 229,525 | 12.8 | % | ||||||||
Premises and equipment
|
437,399 | 495,766 | (58,367 | ) | -11.8 | % | ||||||||||
Data processing
|
256,122 | 189,950 | 66,172 | 34.8 | % | |||||||||||
FDIC insurance expense
|
89,390 | 143,811 | (54,421 | ) | -37.8 | % | ||||||||||
Foreclosed real estate impairment
|
30,789 | 71,538 | (40,749 | ) | -57.0 | % | ||||||||||
Other expense:
|
||||||||||||||||
Advertising and promotions
|
54,144 | 85,624 | (31,480 | ) | -36.8 | % | ||||||||||
Professional fees
|
935,015 | 172,058 | 762,957 | 443.4 | % | |||||||||||
Foreclosed real estate net expense
|
(54 | ) | 135,128 | (135,182 | ) | -100.0 | % | |||||||||
Printing, postage, and supplies
|
100,501 | 118,385 | (17,884 | ) | -15.1 | % | ||||||||||
Checking account charges
|
56,398 | 66,600 | (10,202 | ) | -15.3 | % | ||||||||||
Insurance (non-employee)
|
37,338 | 37,752 | (414 | ) | -1.1 | % | ||||||||||
Regulatory fees
|
10,525 | 32,197 | (21,672 | ) | -67.3 | % | ||||||||||
Telephone
|
37,187 | 34,907 | 2,280 | 6.5 | % | |||||||||||
Apartment operating costs
|
88,960 | 95,447 | (6,487 | ) | -6.8 | % | ||||||||||
Employee costs
|
40,167 | 56,612 | (16,445 | ) | -29.0 | % | ||||||||||
Card service expenses
|
173,601 | 162,127 | 11,474 | 7.1 | % | |||||||||||
All other
|
323,116 | 267,240 | 55,876 | 20.9 | % | |||||||||||
Total other expense
|
$ | 1,856,898 | $ | 1,264,077 | $ | 592,821 | 46.9 | % | ||||||||
Total noninterest expense
|
$ | 4,690,153 | $ | 3,955,172 | $ | 734,981 | 18.6 | % |
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, 2012:
|
||||||||||||||||||||||||
Total Capital (to risk-weighted assets)
|
$ | 42,790 | 14.8 | % | $ | 23,172 | 8.0 | % | $ | 28,965 | 10.0 | % | ||||||||||||
Tier I Capital (to risk-weighted assets)
|
39,140 | 13.5 | 11,586 | 4.0 | 17,379 | 6.0 | ||||||||||||||||||
Tier I (Core) Capital (to adjusted assets)
|
39,140 | 9.0 | 17,462 | 4.0 | 21,827 | 5.0 | ||||||||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
Total Capital (to risk-weighted assets)
|
$ | 42,624 | 14.7 | % | $ | 23,139 | 8.0 | % | $ | 28,924 | 10.0 | % | ||||||||||||
Tier I Capital (to risk-weighted assets)
|
38,981 | 13.5 | 11,570 | 4.0 | 17,354 | 6.0 | ||||||||||||||||||
Tier I Capital (to average assets)
|
38,981 | 8.7 | 17,956 | 4.0 | 22,445 | 5.0 |
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
|
(3)
|
4.1
|
Specimen Stock Certificate of North Central Bancshares, Inc.
|
(4)
|
10.1
|
Agreement and Plan of Merger, dated as of March 12, 2012, by and among North Central Bancshares, Inc., Great Western Bancorporation, Inc. and 150, Inc.
|
(5)
|
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 March 31, 2012 and December 31, 2011 (unaudited), (ii) Consolidated Statements of Income for the Three Months Ended March 31, 2012 and 2011 (unaudited), (iii) Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2012 and 2011 (unaudited); (iv) Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2012 and 2011 (unaudited), (v) Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2012 and 2011, 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.
|
(4)
|
Incorporated herein by reference to the Registration Statement No. 33-80493 on Form S-1 filed with the SEC on December 18, 1995, as amended.
|
(5)
|
Incorporated herein by reference to the Current Report on Form 8-K filed with the SEC on March 13, 2012.
|
|
SIGNATURES
|
Date: May 10, 2012
|
BY: /s/ David M. Bradley
|
David M. Bradley, Chairman, President & CEO (Principal Executive Officer)
|
Date: May 10, 2012
|
BY: /s/ Jane M. Funk
|
Jane M. Funk, Chief Financial Officer and Treasurer (Principal Financial Officer)
|
|
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 10, 2012
|
/s/ David M. Bradley
|
||
David M. Bradley
|
|||
Chairman, President & CEO
|
|
PURSUANT TO 17 CFR 240.13a-14
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PROMULGATED UNDER
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SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
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I, Jane M. Funk, certify that:
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1.
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I have reviewed this quarterly report on Form 10-Q of North Central Bancshares, Inc., (the “Registrant”);
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2.
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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;
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3.
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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;
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4.
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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:
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(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;
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(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;
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(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
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(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
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5.
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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):
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(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
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(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.
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Date: May 10, 2012
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/s/ Jane M.Funk
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Jane M. Funk
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Chief Financial Officer and Treasurer
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1)
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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
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2)
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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.
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May 10, 2012
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/s/ David M. Bradley
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Dated
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David M. Bradley
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Chairman, President & CEO
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1)
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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
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2)
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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.
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May 10, 2012
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/s/ Jane M. Funk
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Dated
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Jane M. Funk
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Chief Financial Officer and Treasurer
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EARNINGS PER COMMON SHARE
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Mar. 31, 2012
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EARNINGS PER COMMON SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | 2. EARNINGS PER COMMON SHARE Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Income available to common stockholders is net income less preferred stock dividends and accretion of discount on preferred stock, treated as preferred stock dividends. Diluted earnings per common share reflects the potential dilution that would occur if the Company's outstanding stock options and warrants were exercised and converted into common stock and the Company's outstanding restricted stock was vested. The dilutive effect is computed using the treasury stock method, which assumes all outstanding stock options and warrants are exercised. The incremental shares issuable upon exercise of the stock options and warrants, to the extent they would have been dilutive, are included in the denominator of the diluted earnings per common share calculation. The calculation of earnings per common share and diluted earnings per common share for the three months ended March 31, 2012 and 2011 is presented below.
1For the periods ending March 31, 2012 and 2011, outstanding options to purchase common stock totaled 43,500 and 51,700, respectively. These options were not dilutive because the exercise price of the options exceeded the average closing price for the Company's common stock. |