x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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United States
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58-2659667
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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1233 O.G. Skinner Drive, West Point, Georgia
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31833
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(Address of Principal Executive Offices)
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Zip Code
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Large accelerated filer
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¨
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Accelerated filer
|
¨
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Non-accelerated filer
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¨ (Do not check if smaller reporting company)
|
Smaller reporting company
|
þ
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Page
No.
|
||
Part I. Financial Information
|
||
Item 1.
|
Consolidated Financial Statements (Unaudited)
|
|
Condensed Consolidated Statements of Financial Condition at December 31, 2011 and September 30, 2011
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3
|
|
Condensed Consolidated Statements of Income for the Three Months Ended December 31, 2011 and 2010
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4
|
|
Condensed Consolidated Statements of Stockholders’ Equity and Comprehensive Income (Loss) for the Three Months Ended December 31, 2011 and Year Ended September 30, 2011
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5
|
|
Condensed Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2011 and 2010
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6
|
|
Notes to Unaudited Condensed Consolidated Financial Statements
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8
|
|
Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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34
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Item 3.
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Quantitative and Qualitative Disclosures about Market Risk
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47
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Item 4.
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Controls and Procedures
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48
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Part II. Other Information
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||
Item 1.
|
Legal Proceedings
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48
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Item 1A.
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Risk Factors
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48
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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49
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Item 3.
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Defaults Upon Senior Securities
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49
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Item 4.
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(Removed and Reserved)
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|
Item 5.
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Other Information
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49
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Item 6.
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Exhibits
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49
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Signatures
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49
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December 31,
|
September 30,
|
|||||||
2011
|
2011
|
|||||||
Assets
|
||||||||
Cash and amounts due from depository institutions
|
$ | 14,249,571 | $ | 9,780,584 | ||||
Interest-bearing deposits in other financial institutions
|
64,565,817 | 139,981,062 | ||||||
Cash and cash equivalents
|
78,815,388 | 149,761,646 | ||||||
Loans held for sale, fair value of $873,525 and $299,744
|
855,287 | 291,367 | ||||||
Securities available for sale
|
186,330,261 | 158,736,574 | ||||||
Federal Home Loan Bank stock
|
9,255,500 | 10,590,900 | ||||||
Loans receivable:
|
||||||||
Not covered under FDIC loss sharing agreements
|
441,933,683 | 430,359,086 | ||||||
Covered under FDIC loss sharing agreements, net
|
215,619,517 | 232,045,755 | ||||||
Unamortized loan origination fees, net (non-covered loans)
|
(1,006,161 | ) | (1,010,480 | ) | ||||
Allowance for loan losses (non-covered loans)
|
(8,819,876 | ) | (9,369,837 | ) | ||||
Loans receivable, net
|
647,727,163 | 652,024,524 | ||||||
Other real estate owned:
|
||||||||
Not covered under FDIC loss sharing agreements
|
3,389,089 | 4,093,214 | ||||||
Covered under FDIC loss sharing agreements
|
26,090,181 | 27,675,456 | ||||||
Accrued interest and dividends receivable
|
3,615,246 | 3,690,433 | ||||||
Premises and equipment, net
|
21,648,285 | 21,765,298 | ||||||
Goodwill
|
4,325,282 | 4,325,282 | ||||||
Other intangible assets, net of amortization
|
1,687,019 | 1,827,462 | ||||||
Cash surrender value of life insurance
|
33,046,722 | 32,774,523 | ||||||
FDIC receivable for loss sharing agreements
|
91,669,813 | 96,777,791 | ||||||
Deferred income taxes
|
5,035,750 | 4,557,858 | ||||||
Other assets
|
3,249,770 | 2,817,922 | ||||||
Total assets
|
$ | 1,116,740,756 | $ | 1,171,710,250 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$ | 859,503,838 | $ | 911,093,806 | ||||
FHLB advances and other borrowings
|
110,000,000 | 110,000,000 | ||||||
Other liabilities
|
11,186,011 | 11,200,744 | ||||||
Total liabilities
|
980,689,849 | 1,032,294,550 | ||||||
Stockholders’ equity:
|
||||||||
Common stock, $0.01 par value; 19,859,219 shares issued at December 31, 2011 and September 30, 2011, respectively; 18,370,591 shares outstanding at December 31, 2011 and 18,603,889 shares outstanding at September 30, 2011
|
198,592 | 198,592 | ||||||
Preferred stock, no par value; 10,000,000 shares authorized
|
- | - | ||||||
Additional paid-in capital
|
73,161,145 | 73,083,363 | ||||||
Treasury stock, at cost; 1,488,628 shares at December 31, 2011 and 1,255,330 shares at September 30, 2011
|
(38,230,373 | ) | (36,127,940 | ) | ||||
Unearned compensation – ESOP
|
(3,729,390 | ) | (3,729,390 | ) | ||||
Retained earnings
|
107,550,065 | 107,962,533 | ||||||
Accumulated other comprehensive loss – net unrealized holding losses on securities available for sale, net of tax
|
(2,899,132 | ) | (1,971,458 | ) | ||||
Total stockholders’ equity
|
136,050,907 | 139,415,700 | ||||||
Commitments and contingencies
|
||||||||
Total liabilities and stockholders’ equity
|
$ | 1,116,740,756 | $ | 1,171,710,250 |
Three Months Ended December 31,
|
||||||||
2011
|
2010
|
|||||||
Interest and dividend income:
|
||||||||
Loans receivable
|
$ | 11,548,614 | $ | 11,302,689 | ||||
Mortgage-backed securities and collateralized mortgage obligations
|
800,234 | 972,249 | ||||||
Federal Home Loan Bank Stock
|
23,006 | 14,185 | ||||||
Other investment securities available for sale
|
59,599 | 10,125 | ||||||
Interest-bearing deposits in other financial institutions
|
68,019 | 85,487 | ||||||
Total interest and dividend income
|
12,499,472 | 12,384,735 | ||||||
Interest expense:
|
||||||||
Deposits
|
2,142,180 | 2,985,849 | ||||||
Borrowings
|
1,190,592 | 1,832,312 | ||||||
Total interest expense
|
3,332,772 | 4,818,161 | ||||||
Net interest income
|
9,166,700 | 7,566,574 | ||||||
Provision for loan losses, not covered under FDIC loss sharing agreements
|
1,500,000 | 800,000 | ||||||
Provision for covered loan losses
|
600,000 | - | ||||||
Net interest income after provision for loan losses
|
7,066,700 | 6,766,574 | ||||||
Noninterest income:
|
||||||||
Service charges on deposit accounts
|
1,723,957 | 1,433,339 | ||||||
Gain on securities available for sale
|
632,593 | 170,845 | ||||||
Total impairment losses on securities
|
(304,094 | ) | - | |||||
Portion of losses recognized in other comprehensive income
|
204,094 | - | ||||||
Net impairment losses recognized in earnings
|
(100,000 | ) | - | |||||
Bank owned life insurance
|
272,199 | 280,598 | ||||||
Gain on sale of loans and loan servicing release fees
|
185,390 | 262,307 | ||||||
Loan servicing fees
|
90,513 | 98,935 | ||||||
Brokerage commissions
|
126,061 | 167,444 | ||||||
FDIC receivable for loss sharing agreements accretion
|
570,129 | 342,301 | ||||||
Other
|
315,174 | 154,255 | ||||||
Total noninterest income
|
3,816,016 | 2,910,024 | ||||||
Noninterest expenses:
|
||||||||
Salaries and employee benefits
|
4,688,047 | 3,927,919 | ||||||
Occupancy
|
2,035,807 | 1,542,779 | ||||||
FHLB advance prepayment penalty
|
- | 809,558 | ||||||
Legal and professional
|
497,045 | 425,176 | ||||||
Marketing
|
470,123 | 389,303 | ||||||
Federal insurance premiums and other regulatory fees
|
343,560 | 322,059 | ||||||
Net cost of operations of real estate owned
|
739,991 | 860,689 | ||||||
Furniture and equipment
|
205,018 | 199,908 | ||||||
Postage, office supplies and printing
|
279,359 | 238,440 | ||||||
Core deposit intangible amortization expense
|
140,442 | 56,087 | ||||||
Other
|
864,560 | 637,035 | ||||||
Total noninterest expenses
|
10,263,952 | 9,408,953 | ||||||
Income before income taxes
|
618,764 | 267,645 | ||||||
Income tax expense
|
130,371 | (7,897 | ) | |||||
Net income
|
$ | 488,393 | $ | 275,542 | ||||
Basic net income per share
|
$ | 0.03 | $ | 0.02 | ||||
Diluted net income per share
|
$ | 0.03 | $ | 0.02 | ||||
Weighted average number of common shares outstanding
|
18,036,619 | 18,133,699 | ||||||
Weighted average number of common and potential common shares outstanding
|
18,070,041 | 18,184,273 |
Common stock
|
||||||||||||||||||||||||||||||||||||
Comprehensive income (loss)
|
Number of shares
|
Amount
|
Additional paid-in capital
|
Treasury stock
|
Unearned compensation ESOP
|
Retained earnings
|
Accumulated other comprehensive income (loss)
|
Total stockholders' equity
|
||||||||||||||||||||||||||||
Balance at September 30, 2010
|
19,859,219 | $ | 198,592 | $ | 73,073,216 | $ | (36,614,648 | ) | $ | (3,880,990 | ) | $ | 107,598,080 | $ | (3,497,883 | ) | $ | 136,876,367 | ||||||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||||||||||||||||||
Net income
|
$ | 2,305,352 | — | — | — | — | — | 2,305,352 | — | 2,305,352 | ||||||||||||||||||||||||||
Other comprehensive income – change in unrealized loss on securities, net of income taxes of $959,609
|
1,526,425 | — | — | — | — | — | — | 1,526,425 | 1,526,425 | |||||||||||||||||||||||||||
Total comprehensive income
|
$ | 3,831,777 | ||||||||||||||||||||||||||||||||||
Dividends paid, $0.20 per share
|
— | — | — | — | — | (1,940,899 | ) | — | (1,940,899 | ) | ||||||||||||||||||||||||||
Allocation of ESOP common stock
|
— | — | — | — | 151,600 | — | — | 151,600 | ||||||||||||||||||||||||||||
Vesting of restricted shares
|
— | — | (94,944) | 486,708 | — | — | — | 391,764 | ||||||||||||||||||||||||||||
Stock based compensation expense
|
— | — | 105,091 | — | — | — | — | 105,091 | ||||||||||||||||||||||||||||
Balance at September 30, 2011
|
19,859,219 | $ | 198,592 | $ | 73,083,363 | $ | (36,127,940 | ) | $ | (3,729,390 | ) | $ | 107,962,533 | $ | (1,971,458 | ) | $ | 139,415,700 | ||||||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||||||||||||||||||
Net income
|
$ | 488,393 | — | — | — | — | — | 488,393 | — | 488,393 | ||||||||||||||||||||||||||
Other comprehensive income (loss) – change in unrealized loss on securities, net of income tax benefit of $477,892
|
(927,674 | ) | — | — | — | — | — | — | (927,674 | ) | (927,674 | ) | ||||||||||||||||||||||||
Total comprehensive loss
|
$ | (439,281 | ) | |||||||||||||||||||||||||||||||||
Dividends paid, $0.05 per share
|
— | — | — | — | — | (900,861 | ) | — | (900,861 | ) | ||||||||||||||||||||||||||
Allocation of ESOP common stock
|
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Vesting of restricted shares
|
— | — | 54,065 | 94,810 | — | — | — | 148,875 | ||||||||||||||||||||||||||||
Stock based compensation expense
|
— | — | 23,717 | — | — | — | — | 23,717 | ||||||||||||||||||||||||||||
Repurchase of Shares
|
— | — | — | (2,197,243 | ) | — | — | — | (2,197,243 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2011
|
19,859,219 | $ | 198,592 | $ | 73,161,145 | $ | (38,230,373 | ) | $ | (3,729,390 | ) | $ | 107,550,065 | $ | (2,899,132 | ) | $ | 136,050,907 |
Three Months Ended Decmeber 31,
|
|||||||||
2011
|
2010
|
||||||||
Cash flows from operating activities:
|
|||||||||
Net income
|
$ | 488,393 | $ | 275,542 | |||||
Adjustments to reconcile net income to net cash used in operating activities:
|
|||||||||
Provision for loan losses, not covered under FDIC loss sharing agreements
|
1,500,000 | 800,000 | |||||||
Provision for covered loan losses
|
600,000 | - | |||||||
Depreciation and amortization
|
419,996 | 328,472 | |||||||
Accretion and amortization of premiums and discounts, net
|
771,804 | 490,356 | |||||||
Accretion of fair value discounts related to covered loans
|
(2,434,999 | ) | (2,454,767 | ) | |||||
Accretion of fair value discounts related to FDIC receivable
|
(570,129 | ) | (342,301 | ) | |||||
Gain on sale of loans and loan servicing release fees
|
(185,390 | ) | (262,307 | ) | |||||
Proceeds from sale of loans
|
5,833,816 | 8,232,689 | |||||||
Originations and purchases of loans held for sale
|
(6,212,346 | ) | (7,761,111 | ) | |||||
Gain on sale of securities
|
(632,593 | ) | (170,845 | ) | |||||
Other-than-temporary impairment-securities
|
100,000 | - | |||||||
Write down of real estate owned
|
507,724 | 28,836 | |||||||
(Gain) loss on sale of real estate owned
|
(25,292 | ) | 16,312 | ||||||
Recovery payable to FDIC on other real estate owned gains
|
- | (82,782 | ) | ||||||
Restricted stock award expense
|
33,677 | 36,198 | |||||||
Stock option expense
|
23,717 | 37,316 | |||||||
Increase in cash surrender value on bank owned life insurance
|
(272,199 | ) | (280,598 | ) | |||||
Changes in assets and liabilities:
|
|||||||||
Decrease (increase) in accrued interest and dividends receivable
|
75,187 | (300,386 | ) | ||||||
(Increase) decrease in other assets
|
(431,848 | ) | 488,086 | ||||||
Decrease in other liabilities
|
100,465 | 45,945 | |||||||
Net cash used in operating activities
|
(310,017 | ) | (875,345 | ) | |||||
Cash flows from investing activities:
|
|||||||||
Proceeds from sales of securities available for sale
|
27,413,474 | 9,861,926 | |||||||
Principal collections on securities available for sale
|
15,913,513 | 16,895,804 | |||||||
Purchase of securities available for sale
|
(73,601,451 | ) | (51,126,378 | ) | |||||
Proceeds from calls of securities available for sale
|
1,036,000 | 529,100 | |||||||
Redemption of FHLB stock
|
1,335,400 | - | |||||||
Net decrease in loans receivable
|
885,095 | 8,666,017 | |||||||
Net decrease in FDIC receivable
|
6,828,107 | 18,450,137 | |||||||
Proceeds from sale of real estate owned
|
4,404,233 | 8,142,660 | |||||||
Purchases of premises and equipment
|
(162,540 | ) | (172,099 | ) | |||||
Net cash (used in) provided by investing activities
|
(15,948,169 | ) | 11,247,167 |
Three Months Ended Decmeber 31,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from financing activities:
|
||||||||
Purchase of treasury stock
|
(2,197,243 | ) | - | |||||
Dividends paid
|
(900,861 | ) | (487,076 | ) | ||||
Decrease in deposits
|
(51,589,968 | ) | (60,722,514 | ) | ||||
Principal payments on Federal Home Loan Bank advances
|
- | (60,000,000 | ) | |||||
Net cash used in financing activities
|
(54,688,072 | ) | (121,209,590 | ) | ||||
Net decrease in cash and cash equivalents
|
(70,946,258 | ) | (110,837,768 | ) | ||||
Cash and cash equivalents at beginning of period
|
149,761,646 | 235,638,582 | ||||||
Cash and cash equivalents at end of period
|
$ | 78,815,388 | $ | 124,800,814 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Interest paid
|
$ | 3,547,078 | $ | 3,810,018 | ||||
Income taxes paid
|
$ | 205,000 | $ | - | ||||
Supplemental disclosure of noncash activities:
|
||||||||
Real estate acquired through foreclosure of collateral on loans receivable
|
$ | 3,747,265 | $ | 8,337,048 | ||||
Write down of real estate owned reimbursed by FDIC
|
$ | 1,150,000 | $ | - | ||||
Issuance of common stock under stock benefit plan
|
$ | 148,875 | $ | - | ||||
Unrealized loss on securities available for sale, net
|
$ | (1,405,566 | ) | $ | (678,320 | ) |
As Recorded by FNB
|
Fair Value Adjustments
|
As Recorded by CharterBank
|
||||||||||||
Assets:
|
||||||||||||||
Cash and due from banks
|
$ | 25,689,080 | $ | 23,637,211 |
(a)
|
$ | 49,326,291 | |||||||
FHLB and FRB stock
|
993,612 | — | 993,612 | |||||||||||
Investment securities available for sale
|
13,002,568 | (97,407 | ) |
(b)
|
12,905,161 | |||||||||
Loans, net of unearned income
|
185,927,300 | (64,463,794 | ) |
(c)
|
121,463,506 | |||||||||
Other real estate owned
|
24,943,178 | (14,383,246 | ) |
(d)
|
10,559,932 | |||||||||
FDIC receivable for loss sharing agreements
|
— | 51,555,999 |
(e)
|
51,555,999 | ||||||||||
Core deposit intangible
|
— | 1,134,697 |
(f)
|
1,134,697 | ||||||||||
Other assets
|
1,291,037 | (251,246 | ) |
(g)
|
1,039,791 | |||||||||
Total assets acquired
|
$ | 251,846,775 | $ | (2,867,786 | ) | $ | 248,978,989 | |||||||
Liabilities:
|
||||||||||||||
Deposits
|
244,715,032 | — | 244,715,032 | |||||||||||
Deferred tax liability
|
— | 420,919 |
(j)
|
420,919 | ||||||||||
Other liabilities
|
2,768,954 | 400,000 |
(i)
|
3,168,954 | ||||||||||
Total liabilities assumed
|
247,483,986 | 820,919 | $ | 248,304,905 | ||||||||||
Excess of assets acquired over liabilities assumed
|
$ | 4,362,789 |
(h)
|
|||||||||||
Aggregate fair value adjustments
|
$ | (3,688,705 | ) | |||||||||||
Net assets of FNB acquired
|
$ | 674,084 |
|
(a) –
|
Adjustment reflects the initial wire received from the FDIC adjusted for overpayment by the FDIC on the acquisition date.
|
|
(b) –
|
Adjustment reflects fair value adjustments based on the Bank’s evaluation of the acquired investment securities portfolio.
|
|
(c) –
|
Adjustment reflects fair value adjustments based on the Bank’s evaluation of the acquired loan portfolio. The fair value adjustment includes adjustments for estimated credit losses, liquidity and servicing costs.
|
|
(d) –
|
Adjustment reflects the estimated other real estate owned losses based on the Bank’s evaluation of the acquired other real estate owned portfolio.
|
|
(e) –
|
Adjustment reflects the estimated fair value of payments the Bank will receive from the FDIC under loss sharing agreements. The receivable was recorded at present value of the estimated cash flows using an average discount rate of approximately two percent.
|
|
(f) –
|
Adjustment reflects fair value adjustments to record the estimated core deposit intangible.
|
|
(g) –
|
Adjustment reflects fair value adjustments to record certain other assets acquired in this transaction.
|
|
(h) –
|
Amount represents the excess of assets acquired over liabilities assumed and since the asset discount bid by CharterBank of $28 million exceeded this amount, the difference resulted in a cash settlement with the FDIC on the acquisition date.
|
|
(i) –
|
Adjustment reflects fair value adjustments to record certain other liabilities in this transaction.
|
|
(j) –
|
Adjustment reflects differences between the financial statement and tax bases of assets acquired and liabilities assumed.
|
|
December 31, 2011
|
|||||||||||||||
Amortized Cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Estimated fair value
|
|||||||||||||
Other investment securities:
|
||||||||||||||||
Tax-free municipals
|
$
|
9,711,860
|
$
|
21,131
|
$
|
(8,026)
|
$
|
9,724,965
|
||||||||
U.S. government sponsored entities
|
18,546,041
|
97,755
|
(1,134)
|
18,642,662
|
||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
FNMA certificates
|
75,155,665
|
526,821
|
(1,433)
|
75,681,053
|
||||||||||||
GNMA certificates
|
5,502,917
|
352,754
|
—
|
5,855,671
|
||||||||||||
FHLMC certificates
|
43,591,697
|
233,190
|
(1,214)
|
43,823,673
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
FNMA
|
13,784,188
|
447,465
|
—
|
14,231,653
|
||||||||||||
GNMA
|
2,508,082
|
13,386
|
(6,491)
|
2,514,977
|
||||||||||||
FHLMC
|
690,885
|
55,942
|
(111)
|
746,716
|
||||||||||||
Private-label mortgage securities:
|
||||||||||||||||
Investment grade
|
3,037,916
|
17,154
|
(530,884
|
)
|
2,524,186
|
|||||||||||
Split Rating [1]
|
2,356,894
|
1,185
|
(150,807
|
)
|
2,207,272
|
|||||||||||
Non investment grade
|
15,836,740
|
83,493
|
(5,542,800
|
)
|
10,377,433
|
|||||||||||
Total
|
$
|
190,722,885
|
$
|
1,850,276
|
$
|
(6,242,900
|
)
|
$
|
186,330,261
|
September 30, 2011
|
||||||||||||||||
Amortized Cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Estimated fair value
|
|||||||||||||
Other investment securities:
|
||||||||||||||||
Tax-free municipals
|
$
|
10,618,273
|
$
|
21,404
|
$
|
(13,452)
|
$
|
10,626,225
|
||||||||
U.S. government sponsored entities
|
17,414,309
|
95,567
|
—
|
17,509,876
|
||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
FNMA certificates
|
62,750,950
|
856,995
|
—
|
63,607,945
|
||||||||||||
GNMA certificates
|
5,841,685
|
246,044
|
—
|
6,087,729
|
||||||||||||
FHLMC certificates
|
20,634,103
|
657,084
|
—
|
21,291,187
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
FNMA
|
16,682,474
|
451,103
|
—
|
17,133,577
|
||||||||||||
GNMA
|
3,648,357
|
29,348
|
(1,130
|
)
|
3,676,575
|
|||||||||||
FHLMC
|
870,973
|
72,653
|
—
|
943,626
|
||||||||||||
Private-label mortgage securities:
|
||||||||||||||||
Investment grade
|
3,212,607
|
35,163
|
(424,674
|
)
|
2,823,096
|
|||||||||||
Split Rating [1]
|
9,041,253
|
6,335
|
(995,327
|
)
|
8,052,261
|
|||||||||||
Non investment grade
|
11,008,649
|
—
|
(4,024,172
|
)
|
6,984,477
|
|||||||||||
Total
|
$
|
161,723,633
|
$
|
2,471,696
|
$
|
(5,458,755
|
)
|
$
|
158,736,574
|
Amortized
cost
|
Estimated
fair value
|
|||||||
Less than 1 year
|
$
|
3,554,003
|
$
|
3,557,385
|
||||
1-5 years
|
12,883,108
|
12,941,659
|
||||||
Greater than 5 years
|
11,820,790
|
11,868,583
|
||||||
Mortgage-backed securities
|
162,464,984
|
157,962,634
|
||||||
$
|
190,722,885
|
$
|
186,330,261
|
December 31, 2011
|
||||||||||||
Amortized
cost
|
Gross
unrealized
losses
|
Estimated
fair value
|
||||||||||
Other investment securities:
|
||||||||||||
Tax-free municipals
|
$ |
540,245
|
$
|
(8,026
|
)
|
$
|
532,219
|
|||||
U.S. government sponsored entities
|
2,012,301
|
(1,134
|
)
|
2,011,167
|
||||||||
Mortgage-backed securities:
|
||||||||||||
FNMA certificates
|
151,325
|
(1,433
|
)
|
149,892
|
||||||||
FHLMC certificates
|
61,360
|
(1,214
|
)
|
60,146
|
||||||||
Collateralized mortgage obligations:
|
||||||||||||
FHLMC certificates
|
51,436
|
(111
|
)
|
51,325
|
||||||||
GNMA
|
871,540
|
(4,448
|
)
|
867,092
|
||||||||
Private-label mortgage securities
|
1,693,303
|
(150,807
|
)
|
1,542,496
|
||||||||
$
|
5,381,510
|
$
|
(167,173
|
)
|
$
|
5,214,337
|
September 30, 2011
|
||||||||||||
Amortized
cost
|
Gross
unrealized
losses
|
Estimated
fair value
|
||||||||||
Other investment securities:
|
||||||||||||
Tax-free municipals
|
$
|
1,339,585
|
$
|
(13,452
|
)
|
$
|
1,326,133
|
|||||
Collateralized mortgage obligations:
|
||||||||||||
Private-label mortgage securities
|
1,782,525
|
(110,599
|
)
|
1,671,926
|
||||||||
$
|
3,122,110
|
$
|
(124,051
|
)
|
$
|
2,998,059
|
December 31, 2011
|
||||||||||||
Amortized
cost
|
Gross
unrealized
losses
|
Estimated
fair value
|
||||||||||
Collateralized mortgage obligations:
|
||||||||||||
GNMA
|
$
|
296,247
|
$
|
(2,043
|
)
|
$
|
294,204
|
|||||
Private-label mortgage securities
|
16,489,140
|
(6,073,684
|
)
|
10,415,456
|
||||||||
$
|
16,785,387
|
$
|
(6,075,727
|
)
|
$
|
10,709,660
|
September 30, 2011
|
||||||||||||
Amortized
cost
|
Gross
unrealized
losses
|
Estimated
fair value
|
||||||||||
Collateralized mortgage obligations:
|
||||||||||||
GNMA
|
$
|
346,140
|
$
|
(1,130
|
)
|
$
|
345,010
|
|||||
Private-label mortgage securities
|
18,833,695
|
(5,333,574
|
)
|
13,500,121
|
||||||||
$
|
19,179,835
|
$
|
(5,334,704
|
)
|
$
|
13,845,131
|
Three Months Ended
|
||||||||
December 31
|
||||||||
2011
|
2010
|
|||||||
Beginning balance of credit losses previously recognized in earnings
|
$
|
4,822,916
|
$
|
2,526,674
|
||||
Amount related to credit losses for securities for which an other-than-temporary impairment was not previously recognized in earnings
|
-
|
-
|
||||||
Amount related to credit losses for securities for which an other-than-temporary impairment was recognized in earnings
|
100,000
|
-
|
||||||
Ending balance of cumulative credit losses recognized in earnings
|
$
|
4,922,916
|
$
|
2,526,674
|
Cusip
|
Description
|
Credit Rating
|
Cumulative Net Impairment Losses Recognized in Earnings
|
Current Par Value
|
Book Value
|
Market Value
|
Unrealized Gain (Loss)
|
|||||||||||||||||||||||||||
Moody
|
S&P
|
Fitch
|
(Dollars in thousands) | |||||||||||||||||||||||||||||||
12668AXE0
|
CWALT 2005-63 2A2
|
C | D | n/a | $ | 2,107 | $ | 1,183 | $ | 189 | $ | 71 | $ | (118 | ) | |||||||||||||||||||
172921J74
|
CMSI 1993-14 A3
|
WR
|
BB
|
n/a | - | 110 | 110 | 104 | (6 | ) | ||||||||||||||||||||||||
17307GDL9
|
CMLTI 2004-HYB1 A31
|
B3 | n/a |
AA
|
- | 1,693 | 1,693 | 1,542 | (151 | ) | ||||||||||||||||||||||||
36228FQF6
|
GSR 2003-4F 1A2
|
n/a |
AAA
|
AAA
|
- | 493 | 493 | 503 | 10 | |||||||||||||||||||||||||
36242DXZ1
|
GSR 2005-2F 1A2
|
n/a | B |
AA
|
- | 664 | 664 | 665 | 1 | |||||||||||||||||||||||||
55265KL80
|
MASTR 2003-8 4A1
|
n/a |
AAA
|
AAA
|
- | 1,173 | 1,163 | 1,170 | 7 | |||||||||||||||||||||||||
576433QD1
|
MARM 2004-7 5A1
|
Ba3
|
BBB-
|
n/a | - | 5,579 | 5,579 | 4,113 | (1,466 | ) | ||||||||||||||||||||||||
576433UQ7
|
MARM 2004-13 B1
|
NR
|
B- | n/a | 380 | 6,671 | 6,290 | 2,996 | (3,294 | ) | ||||||||||||||||||||||||
576433VN3
|
MARM 2004-15 4A1
|
Ba3
|
n/a | B | - | 2,939 | 2,939 | 2,281 | (658 | ) | ||||||||||||||||||||||||
863579UR7
|
SARM 2005-15 2A2
|
NR
|
CC
|
n/a | 2,436 | 3,165 | 730 | 813 | 83 | |||||||||||||||||||||||||
86359BVF5
|
SARM 2004-6 3A3
|
n/a |
AAA
|
n/a | - | 1,382 | 1,382 | 851 | (531 | ) | ||||||||||||||||||||||||
$ | 4,923 | $ | 25,052 | $ | 21,232 | $ | 15,109 | $ | (6,123 | ) |
December 31,
2011
|
September 30,
2011
|
|||||||
Loans not covered by loss sharing agreements:
|
||||||||
1-4 family residential real estate mortgage
|
$
|
101,560,814
|
$
|
98,844,828
|
||||
Commercial real estate
|
254,960,299
|
252,037,202
|
||||||
Commercial
|
23,996,617
|
17,612,661
|
||||||
Real estate construction
|
41,423,371
|
41,726,520
|
||||||
Consumer and other
|
19,992,582
|
20,137,875
|
||||||
Loans receivable, net of undisbursed proceeds of loans in process
|
441,933,683
|
430,359,086
|
||||||
Less:
|
||||||||
Unamortized loan origination fees, net
|
1,006,161
|
1,010,480
|
||||||
Allowance for loan losses
|
8,819,876
|
9,369,837
|
||||||
Total loans not covered, net
|
$
|
432,107,646
|
$
|
419,978,769
|
December 31, 2011
|
||||||||||||
Impaired Loans at Acquisition
|
All Other Acquired Loans
|
Total Covered Loans
|
||||||||||
Loans covered by loss sharing agreements
|
||||||||||||
1-4 Family Residential Real Estate
|
$ | 8,078,130 | $ | 10,902,630 | $ | 18,980,760 | ||||||
Commercial Real Estate
|
118,893,073 | 127,082,050 | 245,975,123 | |||||||||
Commercial
|
9,585,057 | 18,163,105 | 27,748,162 | |||||||||
Real Estate Construction
|
6,608,000 | 714,825 | 7,322,825 | |||||||||
Consumer and Other
|
841,808 | 7,219,925 | 8,061,733 | |||||||||
Loans receivable, gross
|
144,006,068 | 164,082,535 | 308,088,603 | |||||||||
Less:
|
||||||||||||
Non-accretable difference
|
59,542,386 | 7,232,959 | 66,775,345 | |||||||||
Allowance for covered loan losses
|
- | 5,871,557 | 5,871,557 | |||||||||
Accretable discount
|
14,983,350 | 4,290,895 | 19,274,245 | |||||||||
Discount on acquired performing loans
|
- | 511,545 | 511,545 | |||||||||
Unamortized loan origination fees, net
|
- | 36,394 | 36,394 | |||||||||
Total loans covered, net
|
$ | 69,480,332 | $ | 146,139,185 | $ | 215,619,517 |
September 30, 2011
|
||||||||||||
Impaired
Loans at
Acquisition
|
All Other
Acquired
Loans
|
Total
Covered
Loans
|
||||||||||
Loans covered by loss sharing agreements:
|
||||||||||||
1-4 family residential real estate mortgage
|
$
|
8,424,249
|
$
|
11,499,713
|
$
|
19,923,962
|
||||||
Commercial real estate
|
131,095,653
|
132,166,044
|
263,261,697
|
|||||||||
Commercial
|
10,263,020
|
22,478,750
|
32,741,770
|
|||||||||
Real estate construction
|
8,059,927
|
778,764
|
8,838,691
|
|||||||||
Consumer and other
|
866,166
|
7,715,276
|
8,581,442
|
|||||||||
Loans receivable, gross
|
158,709,015
|
174,638,547
|
333,347,562
|
|||||||||
Less:
|
||||||||||||
Non-accretable difference
|
64,349,832
|
7,799,285
|
72,149,117
|
|||||||||
Allowance for covered loan losses
|
—
|
6,892,425
|
6,892,425
|
|||||||||
Accretable discount
|
16,893,100
|
4,705,432
|
21,598,532
|
|||||||||
Discount on acquired performing loans
|
—
|
622,258
|
622,258
|
|||||||||
Unamortized loan origination fees, net
|
—
|
39,475
|
39,475
|
|||||||||
Total loans covered, net
|
$
|
77,466,083
|
$
|
154,579,672
|
$
|
232,045,755
|
Impaired
Loans at
Acquisition
|
All Other
Acquired
Loans
|
Total
Covered
Loans
|
||||||||||
Balance, September 30, 2010
|
$
|
10,166,664
|
$
|
8,476,672
|
$
|
18,643,336
|
||||||
Accretable yield acquired
|
11,203,405
|
—
|
11,203,405
|
|||||||||
Loan accretion
|
(4,476,969
|
)
|
(3,771,240
|
)
|
(8,248,209
|
)
|
||||||
Balance, September 30, 2011
|
16,893,100
|
4,705,432
|
21,598,532
|
|||||||||
Loan accretion
|
(1,909,750
|
)
|
(414,537
|
)
|
(2,324,287
|
)
|
||||||
Balance, December 31, 2011
|
$
|
14,983,350
|
$
|
4,290,895
|
$
|
19,274,245
|
Three Months Ended December 31, 2011
|
Three Months Ended December 31, 2010
|
|||||||
Balance, beginning of period
|
$ | 6,892,425 | $ | 15,553,536 | ||||
Loans charged-off (net)
|
(4,020,868 | ) | (5,858,076 | ) | ||||
Provision for loan losses charged to FDIC receivable
|
2,400,000 | — | ||||||
Provision for loan losses charged to operations
|
600,000 | — | ||||||
Balance, end of period
|
$ | 5,871,557 | $ | 9,695,460 |
Three Months
Ended
December 31,
2011
|
Year Ended
September 30,
2011
|
|||||||
Balance, beginning of period
|
$ | 96,777,791 | $ | 89,824,798 | ||||
Fair value of FDIC receivable for loss sharing agreements at acquisition
|
- | 51,555,999 | ||||||
Receipt of payments from FDIC
|
(11,675,558 | ) | (53,615,832 | ) | ||||
Accretion of fair value adjustment
|
570,129 | 1,035,125 | ||||||
Recovery of previous loss reimbursements
|
(545,214 | ) | (3,617,003 | ) | ||||
Provisions for estimated losses on covered assets
|
3,550,000 | 4,800,000 | ||||||
External expenses qualifying under loss sharing agreements
|
2,992,665 | 6,794,704 | ||||||
Balance, end of period
|
$ | 91,669,813 | $ | 96,777,791 |
December 31, 2011
|
September 30, 2011
|
|||||||
1-4 family residential real estate
|
$ | 5,340,489 | $ | 5,340,489 | ||||
Commercial real estate
|
3,408,478 | 5,339,730 | ||||||
Commercial
|
261,385 | 438,161 | ||||||
Real estate construction
|
— | 26,291 | ||||||
Consumer and other
|
75,927 | 96,954 | ||||||
Total
|
$ | 9,086,279 | $ | 11,694,209 |
30-89 Days
Past Due |
Greater than
90 Days
Past Due |
Total
Past Due |
Current
|
Total
Loans |
Loans > 90
Days and |
|||||||||||||||||||
1-4 family residential real estate
|
$
|
2,006,380
|
$
|
2,408,818
|
$
|
4,415,198
|
$
|
97,145,616
|
$
|
101,560,814
|
$
|
45,971
|
||||||||||||
Commercial real estate
|
2,579,351
|
1,873,182
|
4,452,533
|
250,507,766
|
254,960,299
|
-
|
||||||||||||||||||
Commercial
|
68,371
|
97,715
|
166,086
|
23,830,531
|
23,996,617
|
-
|
||||||||||||||||||
Real estate construction
|
-
|
-
|
-
|
41,423,371
|
41,423,371
|
-
|
||||||||||||||||||
Consumer and other
|
341,628
|
14,427
|
356,055
|
19,636,527
|
19,992,582
|
-
|
||||||||||||||||||
$
|
4,995,730
|
$
|
4,394,142
|
$
|
9,389,872
|
$
|
432,543,811
|
$
|
441,933,683
|
$
|
45,971
|
30-89 Days
Past Due |
Greater than
90 Days |
Total
Past Due |
Current
|
Total
Loans |
Loans > 90
Days and |
|||||||||||||||||||
1-4 family residential real estate
|
$
|
1,261,293
|
$
|
2,434,213
|
$
|
3,695,506
|
$
|
95,149,322
|
$
|
98,844,828
|
$
|
-
|
||||||||||||
Commercial real estate
|
3,073,129
|
1,671,035
|
4,744,164
|
247,293,038
|
252,037,202
|
-
|
||||||||||||||||||
Commercial
|
315,882
|
160,558
|
476,440
|
17,136,221
|
17,612,661
|
-
|
||||||||||||||||||
Real estate construction
|
-
|
26,291
|
26,291
|
41,700,229
|
41,726,520
|
-
|
||||||||||||||||||
Consumer and other
|
197,125
|
-
|
197,125
|
19,940,750
|
20,137,875
|
-
|
||||||||||||||||||
$
|
4,847,429
|
$
|
4,292,097
|
$
|
9,139,526
|
$
|
421,219,560
|
$
|
430,359,086
|
$
|
-
|
30-89 Days
Past Due
|
Greater than
90 Days
Past Due
|
Total
Past Due
|
Current
|
Total
Loans [1]
|
Loans > 90
Days and |
|||||||||||||||||||
1-4 family residential real estate
|
$
|
324,476
|
$
|
2,214,473
|
$
|
2,538,949
|
$
|
13,347,823
|
$
|
15,886,773
|
$
|
2,214,473
|
||||||||||||
Commercial real estate
|
22,612,846
|
18,560,334
|
41,173,180
|
144,883,636
|
186,056,815
|
18,560,334
|
||||||||||||||||||
Commercial
|
568,123
|
4,149,513
|
4,717,636
|
15,461,358
|
20,178,994
|
4,149,513
|
||||||||||||||||||
Real estate construction
|
-
|
3,621,482
|
3,621,482
|
2,189,245
|
5,810,727
|
3,621,482
|
||||||||||||||||||
Consumer and other
|
396,645
|
161,917
|
558,562
|
6,949,830
|
7,508,392
|
161,917
|
||||||||||||||||||
$
|
23,902,090
|
$
|
28,707,719
|
$
|
52,609,809
|
$
|
182,831,892
|
$
|
235,441,701
|
$
|
28,707,719
|
[1]
|
Covered loan balances are net of non-accretable differences and allowance for covered loan losses and have not been reduced by $19,785,790 of accretable discounts.
|
[2]
|
Covered loans contractually past due greater than ninety days are reported as accruing loans because of accretable discounts established at the time of acquisition.
|
30-89 Days
Past Due
|
Greater than
90 Days
Past Due
|
Total
Past Due
|
Current | Total
Loans [1]
|
Loans > 90
Days and
Accruing [2] |
|||||||||||||||||||
1-4 family residential real estate
|
$
|
1,263,640
|
$
|
1,852,536
|
$
|
3,116,176
|
$
|
13,377,507
|
$
|
16,493,683
|
$
|
1,852,536
|
||||||||||||
Commercial real estate
|
6,890,156
|
19,890,694
|
26,780,850
|
172,311,446
|
199,092,296
|
19,890,694
|
||||||||||||||||||
Commercial
|
1,840,322
|
4,854,955
|
6,695,277
|
18,340,062
|
25,035,339
|
4,854,955
|
||||||||||||||||||
Real estate construction
|
-
|
3,617,000
|
3,617,000
|
2,251,184
|
5,868,184
|
3,617,000
|
||||||||||||||||||
Consumer and other
|
233,527
|
142,184
|
375,711
|
7,440,807
|
7,816,518
|
142,184
|
||||||||||||||||||
$
|
10,227,645
|
$
|
30,357,369
|
$
|
40,585,014
|
$
|
213,721,006
|
$
|
254,306,020
|
$
|
30,357,369
|
[1]
|
Covered loan balances are net of non-accretable differences and allowance for covered loan losses and have not been reduced by $22,220,790 of accretable discounts.
|
[2]
|
Covered loans contractually past due greater than ninety days are reported as accruing loans because of accretable discounts established at the time of acquisition.
|
Three Months Ended December 31, 2011
|
||||||||||||||||||||
Average
|
||||||||||||||||||||
Unpaid
|
Investment
|
Interest
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
in Impaired
|
Income
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Loans
|
Recognized
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
1-4 family residential real estate
|
$ | 5,340,489 | $ | 5,340,489 | $ | - | $ | 5,566,781 | $ | - | ||||||||||
Commercial real estate
|
3,533,995 | 5,278,757 | - | 3,508,907 | 5,341 | |||||||||||||||
Commercial
|
3,037,811 | 3,099,648 | - | 1,705,701 | 39,410 | |||||||||||||||
Real estate construction
|
- | - | - | - | - | |||||||||||||||
Subtotal:
|
11,912,295 | 13,718,894 | - | 10,781,389 | 44,751 | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
1-4 family residential real estate
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Commercial real estate
|
3,615,587 | 3,657,420 | 617,544 | 3,248,471 | 47,242 | |||||||||||||||
Commercial
|
54,818 | 54,818 | 66,818 | 59,693 | - | |||||||||||||||
Real estate construction
|
- | - | - | - | - | |||||||||||||||
Subtotal:
|
3,670,405 | 3,712,238 | 684,362 | 3,308,164 | 47,242 | |||||||||||||||
Totals:
|
||||||||||||||||||||
1-4 family residential real estate
|
$ | 5,340,489 | $ | 5,340,489 | $ | - | $ | 5,566,781 | $ | - | ||||||||||
Commercial real estate
|
7,149,582 | 8,936,177 | 617,544 | 6,757,378 | 52,583 | |||||||||||||||
Commercial
|
3,092,629 | 3,154,466 | 66,818 | 1,765,394 | 39,410 | |||||||||||||||
Real estate construction
|
- | - | - | - | - | |||||||||||||||
Grand Total:
|
$ | 15,582,700 | $ | 17,431,132 | $ | 684,362 | $ | 14,089,553 | $ | 91,993 |
Year Ended September 30, 2011
|
||||||||||||||||||||
Average
|
||||||||||||||||||||
Unpaid
|
Investment
|
Interest
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
in Impaired
|
Income
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Loans
|
Recognized
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
1-4 family residential real estate
|
$
|
5,793,073
|
$
|
5,793,073
|
$
|
-
|
$
|
4,402,390
|
$
|
107,550
|
||||||||||
Commercial real estate
|
3,419,250
|
3,419,250
|
-
|
3,895,070
|
37,634
|
|||||||||||||||
Commercial
|
438,161
|
438,161
|
-
|
363,487
|
4,202
|
|||||||||||||||
Real estate construction
|
26,291
|
26,291
|
-
|
139,891
|
-
|
|||||||||||||||
Subtotal:
|
9,676,775
|
9,676,775
|
-
|
8,800,838
|
149,386
|
|||||||||||||||
With an allowance recorded:
|
-
|
|||||||||||||||||||
1-4 family residential real estate
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,211,961
|
$
|
-
|
||||||||||
Commercial real estate
|
2,881,355
|
2,881,355
|
1,162,795
|
2,713,337
|
63,857
|
|||||||||||||||
Commercial
|
64,568
|
64,568
|
66,818
|
73,194
|
-
|
|||||||||||||||
Real estate construction
|
-
|
-
|
-
|
6,063
|
-
|
|||||||||||||||
Subtotal:
|
2,945,923
|
2,945,923
|
1,229,613
|
4,004,555
|
63,857
|
|||||||||||||||
Totals:
|
||||||||||||||||||||
1-4 family residential real estate
|
$
|
5,793,073
|
$
|
5,793,073
|
$
|
-
|
$
|
5,614,351
|
$
|
107,550
|
||||||||||
Commercial real estate
|
6,300,605
|
6,300,605
|
1,162,795
|
6,608,407
|
101,491
|
|||||||||||||||
Commercial
|
502,729
|
502,729
|
66,818
|
436,681
|
4,202
|
|||||||||||||||
Real estate construction
|
26,291
|
26,291
|
-
|
145,954
|
-
|
|||||||||||||||
Grand Total:
|
$
|
12,622,698
|
$
|
12,622,698
|
$
|
1,229,613
|
$
|
12,805,393
|
$
|
213,243
|
1-4 family residential real estate
|
Commercial real estate
|
Commercial
|
Real estate
construction |
Consumer and other
|
Total
|
|||||||||||||||||||
Pass (1-4)
|
$ | 92,317,920 | $ | 213,151,283 | $ | 19,369,181 | $ | 33,953,600 | $ | 19,269,929 | $ | 378,061,913 | ||||||||||||
Special Mention (5)
|
4,081,525 | 22,118,204 | 399,490 | 6,534,359 | 616,086 | 33,749,664 | ||||||||||||||||||
Substandard (6)
|
5,161,369 | 19,436,329 | 4,173,128 | 935,412 | 87,343 | 29,793,581 | ||||||||||||||||||
Doubtful (7)
|
- | 254,483 | 54,818 | - | 19,224 | 328,525 | ||||||||||||||||||
Loss (8)
|
- | - | - | - | - | - | ||||||||||||||||||
Total not covered loans
|
$ | 101,560,814 | $ | 254,960,299 | $ | 23,996,617 | $ | 41,423,371 | $ | 19,992,582 | $ | 441,933,683 |
1-4 family residential
real estate
|
Commercial
real estate
|
Commercial
|
Real estate
construction
|
Consumer and other
|
Total
|
|||||||||||||||||||
Pass (1-4)
|
$
|
89,121,799
|
$
|
210,707,732
|
$
|
13,629,735
|
$
|
33,824,113
|
$
|
19,539,636
|
$
|
366,823,015
|
||||||||||||
Special Mention (5)
|
3,486,324
|
25,456,968
|
448,711
|
6,230,194
|
381,414
|
36,003,611
|
||||||||||||||||||
Substandard (6)
|
6,236,705
|
15,756,651
|
3,373,657
|
1,672,213
|
212,093
|
27,251,319
|
||||||||||||||||||
Doubtful (7)
|
-
|
115,851
|
160,558
|
-
|
4,732
|
281,141
|
||||||||||||||||||
Loss (8)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total not covered loans
|
$
|
98,844,828
|
$
|
252,037,202
|
$
|
17,612,661
|
$
|
41,726,520
|
$
|
20,137,875
|
$
|
430,359,086
|
1-4 family residential real estate
|
Commercial real estate
|
Commercial
|
Real estate
construction |
Consumer and other
|
Total
|
|||||||||||||||||||
Numerical risk rating (1-4)
|
$
|
8,470,255
|
$
|
75,287,246
|
$
|
9,572,059
|
$
|
2,189,245
|
$
|
6,077,631
|
$
|
101,596,436
|
||||||||||||
Numerical risk rating (5)
|
2,357,315
|
38,295,633
|
1,114,986
|
-
|
259,295
|
42,027,229
|
||||||||||||||||||
Numerical risk rating (6)
|
4,386,899
|
65,683,893
|
4,675,229
|
3,621,482
|
1,100,045
|
79,467,548
|
||||||||||||||||||
Numerical risk rating (7)
|
672,304
|
6,790,043
|
4,816,720
|
-
|
71,421
|
12,350,488
|
||||||||||||||||||
Numerical risk rating (8)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total not covered loans [1]
|
$
|
15,886,773
|
$
|
186,056,815
|
$
|
20,178,994
|
$
|
5,810,727
|
$
|
7,508,392
|
$
|
235,441,701
|
1-4 family residential
real estate
|
Commercial
real estate
|
Commercial
|
Real estate
construction
|
Consumer
and other
|
Total
|
|||||||||||||||||||
Numerical risk ratings (1-4)
|
$
|
10,693,323
|
$
|
100,965,159
|
$
|
12,378,784
|
$
|
2,251,184
|
$
|
6,563,123
|
$
|
132,851,573
|
||||||||||||
Numerical risk ratings (5)
|
1,266,882
|
25,350,072
|
1,773,795
|
-
|
292,054
|
28,682,803
|
||||||||||||||||||
Numerical risk ratings (6)
|
4,018,325
|
63,319,301
|
5,879,654
|
3,617,000
|
913,673
|
77,747,953
|
||||||||||||||||||
Numerical risk ratings (7)
|
515,153
|
9,457,764
|
5,003,106
|
-
|
47,668
|
15,023,691
|
||||||||||||||||||
Numerical risk ratings (8)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total covered loans [1]
|
$
|
16,493,683
|
$
|
199,092,296
|
$
|
25,035,339
|
$
|
5,868,184
|
$
|
7,816,518
|
$
|
254,306,020
|
[1]
|
Covered loan balances are net of non-accretable differences and allowances for covered loan losses.
|
Three Months Ended
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
Balance, beginning of period
|
$
|
9,369,837
|
$
|
9,797,095
|
||||
Loans charged off
|
(2,091,317
|
)
|
(621,095
|
)
|
||||
Recoveries on loans previously charged off
|
41,356
|
49,910
|
||||||
Provision for loan losses charged to operations
|
1,500,000
|
800,000
|
||||||
Balance, end of period
|
$
|
8,819,876
|
$
|
10,025,910
|
Three months ended December 31, 2011
|
||||||||||||||||||||||||||||
1-4 Family
Real Estate
|
Commercial Real Estate
|
Commercial
|
Real Estate Construction
|
Consumer
and Other
|
Unallocated
|
Total
|
||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 633,364 | $ | 5,972,310 | $ | 821,830 | $ | 1,065,512 | $ | 48,276 | $ | 828,545 | $ | 9,369,837 | ||||||||||||||
Charge-offs
|
(161,558 | ) | (1,786,594 | ) | (81,574 | ) | - | (61,591 | ) | - | (2,091,317 | ) | ||||||||||||||||
Recoveries
|
3,914 | 359 | 34,681 | - | 2,402 | - | 41,356 | |||||||||||||||||||||
Provision
|
104,035 | 2,173,200 | (201,891 | ) | (476,103 | ) | 74,312 | (173,553 | ) | 1,500,000 | ||||||||||||||||||
Balance at end of period
|
$ | 579,755 | $ | 6,359,275 | $ | 573,046 | $ | 589,409 | $ | 63,399 | $ | 654,992 | $ | 8,819,876 | ||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | - | $ | 617,544 | $ | 66,818 | $ | - | $ | - | $ | 684,362 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 101,560,814 | $ | 254,960,299 | $ | 23,996,617 | $ | 41,423,371 | $ | 19,992,582 | $ | 441,933,683 | ||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 5,340,489 | $ | 7,149,582 | $ | 3,092,629 | $ | - | $ | - | $ | 15,582,700 | ||||||||||||||||
As of December 31, 2010
|
||||||||||||||||||||||||||||
1-4 Family
Real Estate
|
Commercial Real Estate
|
Commercial
|
Real Estate Construction
|
Consumer
and Other
|
Unallocated
|
Total
|
||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Ending Balance
|
$ | 885,732 | $ | 6,440,170 | $ | 583,477 | $ | 1,432,789 | $ | 98,753 | $ | 584,989 | $ | 10,025,910 | ||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 378,084 | $ | 996,107 | $ | 77,319 | $ | - | $ | - | $ | 1,451,510 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 101,734,452 | $ | 271,362,697 | $ | 18,399,545 | $ | 46,172,453 | $ | 20,937,176 | $ | 458,606,323 | ||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 6,596,045 | $ | 6,476,757 | $ | 386,486 | $ | 46,072 | $ | - | $ | 13,505,360 |
Three months ended December 31, 2011
|
||||||||||||||||||||||||
1-4 Family
Real Estate
|
Commercial Real Estate
|
Commercial
|
Real Estate Construction
|
Consumer
and Other
|
Total
|
|||||||||||||||||||
Non-accretable differences [1]:
|
||||||||||||||||||||||||
Balance at beginning of period
|
$ | 3,430,280 | $ | 64,169,400 | $ | 7,706,431 | $ | 2,970,506 | $ | 764,924 | $ | 79,041,541 | ||||||||||||
Charge-offs
|
(296,058 | ) | (7,552,366 | ) | (715,250 | ) | (1,458,408 | ) | (24,371 | ) | (10,046,453 | ) | ||||||||||||
Recoveries
|
1,402 | 537,005 | 104,351 | - | 9,056 | 651,814 | ||||||||||||||||||
Provision for loan losses charged to FDIC receivable
|
(81,552 | ) | 2,259,657 | 378,909 | - | (157,014 | ) | 2,400,000 | ||||||||||||||||
Provision for loan losses charged to operations
|
(20,388 | ) | 564,915 | 94,727 | - | (39,254 | ) | 600,000 | ||||||||||||||||
Balance at end of period
|
$ | 3,033,684 | $ | 59,978,611 | $ | 7,569,168 | $ | 1,512,098 | $ | 553,341 | $ | 72,646,902 | ||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Ending contractual balance
|
$ | 18,980,760 | $ | 245,975,123 | $ | 27,748,162 | $ | 7,322,825 | $ | 8,061,733 | $ | 308,088,603 | ||||||||||||
As of December 31, 2010
|
||||||||||||||||||||||||
1-4 Family
Real Estate
|
Commercial Real Estate
|
Commercial
|
Real Estate Construction
|
Consumer
and Other
|
Total
|
|||||||||||||||||||
Non-accretable differences [1]:
|
||||||||||||||||||||||||
Ending Balance
|
$ | 1,797,449 | $ | 32,249,909 | $ | 21,679,909 | $ | 1,832,857 | $ | 1,605,077 | $ | 59,165,201 | ||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Ending contractual balance
|
$ | 11,273,864 | $ | 135,241,432 | $ | 48,630,317 | $ | 6,457,871 | $ | 10,182,778 | $ | 211,786,262 |
[1]
|
Amounts include the allowance for covered loan losses.
|
Accruing Loans
|
Nonaccrual Loans
|
|||||||||||||||||||||||
Quarter Ended December 31, 2011
|
Quarter Ended December 31, 2011
|
|||||||||||||||||||||||
Number of loans |
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
Number of loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||||||||||||
Below market interest rate
|
||||||||||||||||||||||||
Commercial Real Estate
|
6 | $ | 835,484 | $ | 819,484 | - | $ | - | $ | - | ||||||||||||||
Total
|
6 | $ | 835,484 | $ | 819,484 | - | $ | - | $ | - | ||||||||||||||
Grand Total
|
6 | $ | 835,484 | $ | 819,484 | - | $ | - | $ | - |
Three Months Ended
|
||||||||
December 31
|
||||||||
2011
|
2010
|
|||||||
Net income
|
$
|
488,393
|
$
|
275,542
|
||||
Denominator:
|
||||||||
Weighted average common shares outstanding
|
18,036,619
|
18,133,699
|
||||||
Common stock equivalents
|
33,782
|
50,574
|
||||||
Diluted shares
|
18,070,041
|
18,184,273
|
||||||
Net income per share:
|
||||||||
Basic
|
$
|
0.03
|
$
|
0.02
|
||||
Diluted
|
$
|
0.03
|
$
|
0.02
|
Three Months
Ended
December 31,
2011
|
Year Ended
September 30,
2011
|
|||||||
Balance, beginning of period
|
$
|
4,093,214
|
$
|
9,641,425
|
||||
Real estate acquired through foreclosure of loans receivable
|
578,937
|
3,760,607
|
||||||
Real estate sold
|
(900,630
|
)
|
(8,203,154
|
)
|
||||
Write down of real estate owned
|
(407,724
|
)
|
(774,616
|
)
|
||||
Gain (loss) on sale of real estate owned
|
25,292
|
(44,894
|
)
|
|||||
Real estate transferred to fixed assets
|
—
|
(286,154
|
)
|
|||||
Balance, end of period
|
$
|
3,389,089
|
$
|
4,093,214
|
Three Months
Ended
December 31,
2011
|
Year Ended
September 30,
2011
|
|||||||
Balance, beginning of period
|
$
|
27,675,456
|
$
|
29,626,581
|
||||
Real estate acquired and subject to FDIC loss sharing agreement
|
—
|
10,559,932
|
||||||
Real estate acquired through foreclosure of loans receivable
|
3,168,328
|
11,070,057
|
||||||
Real estate sold
|
(3,503,603
|
)
|
(23,581,114
|
)
|
||||
Writedown of real estate owned
|
(1,250,000)
|
)
|
—
|
|||||
Balance, end of period
|
$
|
26,090,181
|
$
|
27,675,456
|
13,000 Options
|
4,000 options
|
|||||||
Risk- free interest rate
|
1.80 | % | 1.80 | % | ||||
Dividend yield
|
2.00 | % | 2.20 | % | ||||
Expected life at date of grant
|
120 Months
|
120 Months
|
||||||
Volatility
|
19.56 | % | 19.56 | % | ||||
Weighted average grant-date fair value
|
$ | 1.73 | $ | 1.38 |
Shares
|
Weighted
average
exercise
price/share
|
Weighted
average
remaining
life (years)
|
||||||||||
Options outstanding- September 30, 2011
|
565,275
|
10.76
|
8
|
|||||||||
Options exercised
|
—
|
—
|
—
|
|||||||||
Options forfeited
|
—
|
—
|
—
|
|||||||||
Options granted
|
17,000
|
9.28
|
10
|
|||||||||
Options outstanding- December 31, 2011
|
582,275
|
10.72
|
8
|
|||||||||
Options exercisable – December 31, 2011
|
5,500
|
29.42
|
1
|
Number outstanding at December 31, 2011
|
Weighted average remaining contractual life in years
|
Exercise price per share
|
||||||
5,500
|
1
|
29.26
|
||||||
349,775
|
7
|
11.00
|
||||||
155,000
|
9
|
10.20
|
||||||
55,000
|
9
|
9.00
|
||||||
13,000
|
10
|
9.15
|
||||||
4,000
|
10
|
9.72
|
||||||
582,275
|
Shares
|
Weighted average
grant date fair
value per award
|
|||||||
Unvested restricted stock awards-September 30, 2011
|
35,083
|
20.84
|
||||||
Granted
|
—
|
—
|
||||||
Vested
|
(3,000)
|
49.63
|
||||||
Cancelled or expired
|
—
|
—
|
||||||
Unvested restricted stock awards-December 31, 2011
|
32,083
|
18.14
|
December 31, 2011
|
||||||||||||||||
Estimated fair
value
|
Quoted prices in
active markets for
identical assets
(Level 1 inputs)
|
Quoted prices
for similar assets
(Level 2 inputs)
|
Significant
unobservable
inputs
(Level 3 inputs)
|
|||||||||||||
Investment securities available for sale:
|
||||||||||||||||
Tax free municipals
|
$
|
9,724,965
|
$
|
—
|
$
|
9,724,965
|
$
|
—
|
||||||||
U.S. government sponsored entities
|
18,642,662
|
18,642,662
|
||||||||||||||
Mortgage–backed securities:
|
||||||||||||||||
FNMA certificates
|
75,681,054
|
—
|
75,681,054
|
—
|
||||||||||||
GNMA certificates
|
5,855,671
|
—
|
5,855,671
|
—
|
||||||||||||
FHLMC certificates
|
43,823,673
|
—
|
43,823,673
|
—
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
FNMA
|
14,231,653
|
—
|
14,231,653
|
—
|
||||||||||||
GNMA
|
2,514,977
|
—
|
2,514,977
|
—
|
||||||||||||
FHLMC
|
746,716
|
—
|
746,716
|
—
|
||||||||||||
Private-label mortgage securities:
|
||||||||||||||||
Investment grade
|
2,524,185
|
—
|
2,524,185
|
|||||||||||||
Split rating [1]
|
2,207,272
|
—
|
2,207,272
|
—
|
||||||||||||
Non investment grade
|
10,377,433
|
—
|
10,377,433
|
—
|
||||||||||||
Available for sale securities
|
$
|
186,330,261
|
$
|
—
|
$
|
186,330,261
|
$
|
—
|
September 30, 2011
|
||||||||||||||||
Estimated
fair
value
|
Quoted prices in
active markets for
identical assets
(Level 1 inputs)
|
Quoted prices
for similar assets
(Level 2 inputs)
|
Significant
unobservable
inputs
(Level 3 inputs)
|
|||||||||||||
Investment securities available for sale:
|
||||||||||||||||
Tax free municipals
|
$
|
10,626,225
|
$
|
—
|
$
|
10,626,225
|
$
|
—
|
||||||||
U.S. government sponsored entities
|
17,509,876
|
17,509,876
|
||||||||||||||
Mortgage–backed securities:
|
||||||||||||||||
FNMA certificates
|
63,607,945
|
—
|
63,607,945
|
—
|
||||||||||||
GNMA certificates
|
6,087,729
|
—
|
6,087,729
|
—
|
||||||||||||
FHLMC certificates
|
21,291,187
|
—
|
21,291,187
|
—
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
FNMA
|
17,133,577
|
—
|
17,133,577
|
—
|
||||||||||||
GNMA
|
3,676,575
|
—
|
3,676,575
|
—
|
||||||||||||
FHLMC
|
943,626
|
—
|
943,626
|
—
|
||||||||||||
Private-label mortgage securities:
|
||||||||||||||||
Investment grade
|
2,823,096
|
—
|
2,823,096
|
|||||||||||||
Split rating [1]
|
8,052,261
|
—
|
8,052,261
|
—
|
||||||||||||
Non investment grade
|
6,984,477
|
—
|
6,984,477
|
—
|
||||||||||||
Available for sale securities
|
$
|
158,736,574
|
$
|
—
|
$
|
158,736,574
|
$
|
—
|
Fair value measurements using:
|
||||||||||||||||
Fair
value
|
Quoted prices in
active markets for
identical assets
(Level 1 inputs)
|
Quoted prices
for similar assets
(Level 2 inputs)
|
Significant
unobservable
inputs
(Level 3 inputs)
|
|||||||||||||
December 31, 2011
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Not covered under loss share
|
$
|
2,986,043
|
$
|
—
|
$
|
—
|
$
|
2,986,043
|
||||||||
Other real estate owned:
|
||||||||||||||||
Not covered under loss share
|
3,389,089
|
—
|
—
|
3,389,089
|
||||||||||||
Covered under loss share
|
26,090,181
|
—
|
—
|
26,090,181
|
||||||||||||
September 30, 2011
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Not covered under loss share
|
1,716,310
|
—
|
—
|
1,716,310
|
||||||||||||
Other real estate owned:
|
||||||||||||||||
Not covered under loss share
|
4,093,214
|
—
|
—
|
4,093,214
|
||||||||||||
Covered under loss share
|
27,675,456
|
—
|
—
|
27,675,456
|
December 31, 2011
|
September 30, 2011
|
|||||||||||||||
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
|||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
78,815,388
|
$
|
78,815,388
|
$
|
149,761,646
|
$
|
149,761,646
|
||||||||
Investments available for sale
|
186,330,261
|
186,330,261
|
158,736,574
|
158,736,574
|
||||||||||||
FHLB stock
|
9,255,500
|
9,255,500
|
10,590,900
|
10,590,900
|
||||||||||||
Loans receivable, net
|
647,727,163
|
614,320,011
|
652,024,524
|
618,493,311
|
||||||||||||
Loans held for sale
|
855,287
|
873,525
|
291,367
|
299,744
|
||||||||||||
Cash surrender value of life insurance
|
33,046,722
|
33,046,722
|
32,774,523
|
32,774,523
|
||||||||||||
FDIC Receivable for loss sharing agreements
|
91,669,813
|
91,585,254
|
96,777,791
|
97,106,804
|
||||||||||||
Accrued interest and dividends receivable
|
3,615,246
|
3,615,246
|
3,690,433
|
3,690,433
|
||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
859,503,838
|
$
|
866,030,589
|
$
|
911,093,806
|
$
|
919,678,187
|
||||||||
FHLB advances and other borrowings
|
110,000,000
|
120,143,781
|
110,000,000
|
120,809,014
|
||||||||||||
Accrued interest payable
|
491,617
|
491,617
|
705,924
|
705,924
|
Three Months Ended
|
||||||||
December 31
|
||||||||
2011
|
2010
|
|||||||
Net income
|
$
|
488,393
|
$
|
275,542
|
||||
Less reclassification adjustment for net gains realized in net income, net of taxes of $244,181 and $65,946, respectively
|
(388,412
|
)
|
(104,899)
|
|||||
Net unrealized holding gains (losses) on investment and mortgage securities available for sale arising during the year, net of taxes of $377,614 and $360,489, respectively
|
(600,662)
|
(573,421)
|
||||||
Noncredit portion of other-than-temporary impairment losses recognized in earnings, net of taxes of $(38,600) and $0, respectively
|
61,400
|
-
|
||||||
Comprehensive income (loss)
|
$
|
(439,281)
|
$
|
(402,778)
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Non-covered
|
Covered
|
Total
|
||||||||||
(Dollars in Thousands)
|
||||||||||||
Loan Balances:
|
||||||||||||
December 31, 2011
|
$
|
432,108
|
$
|
215,620
|
$
|
647,727
|
||||||
September 30, 2011
|
419,979
|
232,046
|
652,025
|
|||||||||
June 30, 2011
|
434,309
|
120,140
|
554,449
|
|||||||||
March 31, 2011
|
435,276
|
124,583
|
559,859
|
|||||||||
December 31, 2010
|
447,621
|
136,400
|
584,021
|
|||||||||
September 30, 2010
|
451,231
|
148,139
|
599,370
|
|||||||||
June 30, 2010
|
463,720
|
201,678
|
665,398
|
Cusip
|
Description
|
Credit Rating
|
Cumulative Net Impairment Losses Recognized in Earnings
|
Current Par Value
|
Book Value
|
Market Value
|
Unrealized Gain (Loss)
|
||||||||||||||||||||||||
Moody
|
S&P
|
Fitch
|
(Dollars in thousands) | ||||||||||||||||||||||||||||
12668AXE0
|
CWALT 2005-63 2A2
|
C | D | n/a | $ | 2,107 | $ | 1,183 | $ | 189 | $ | 71 | $ | (118 | ) | ||||||||||||||||
172921J74
|
CMSI 1993-14 A3
|
WR
|
BB
|
n/a | - | 110 | 110 | 104 | (6 | ) | |||||||||||||||||||||
17307GDL9
|
CMLTI 2004-HYB1 A31
|
B3 | n/a |
AA
|
- | 1,693 | 1,693 | 1,542 | (151 | ) | |||||||||||||||||||||
36228FQF6
|
GSR 2003-4F 1A2
|
n/a |
AAA
|
AAA
|
- | 493 | 493 | 503 | 10 | ||||||||||||||||||||||
36242DXZ1
|
GSR 2005-2F 1A2
|
n/a | B |
AA
|
- | 664 | 664 | 665 | 1 | ||||||||||||||||||||||
55265KL80
|
MASTR 2003-8 4A1
|
n/a |
AAA
|
AAA
|
- | 1,173 | 1,163 | 1,170 | 7 | ||||||||||||||||||||||
576433QD1
|
MARM 2004-7 5A1
|
Ba3
|
BBB-
|
n/a | - | 5,579 | 5,579 | 4,113 | (1,466 | ) | |||||||||||||||||||||
576433UQ7
|
MARM 2004-13 B1
|
NR
|
B- | n/a | 380 | 6,671 | 6,290 | 2,996 | (3,294 | ) | |||||||||||||||||||||
576433VN3
|
MARM 2004-15 4A1
|
Ba3
|
n/a | B | - | 2,939 | 2,939 | 2,281 | (658 | ) | |||||||||||||||||||||
863579UR7
|
SARM 2005-15 2A2
|
NR
|
CC
|
n/a | 2,436 | 3,165 | 730 | 813 | 83 | ||||||||||||||||||||||
86359BVF5
|
SARM 2004-6 3A3
|
n/a |
AAA
|
n/a | - | 1,382 | 1,382 | 851 | (531 | ) | |||||||||||||||||||||
$ | 4,923 | $ | 25,052 | $ | 21,232 | $ | 15,109 | $ | (6,123 | ) |
Deposit Fees
|
Transaction
Accounts |
Savings
|
Money
Market |
Total Core
Deposits |
Retail
Certificates of |
Wholesale
Certificates of |
||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
December 31, 2011
|
$ | 1,724 | $ | 266,515 | $ | 54,055 | $ | 130,122 | $ | 450,692 | $ | 385,926 | $ | 22,887 | ||||||||||||||
September 30, 2011
|
1,601 | 268,515 | 56,857 | 121,804 | 447,176 | 436,213 | 27,705 | |||||||||||||||||||||
June 30, 2011
|
1,448 | 211,513 | 19,438 | 88,409 | 319,360 | 344,474 | 31,984 | |||||||||||||||||||||
March 31, 2011
|
1,360 | 214,810 | 19,329 | 87,005 | 321,144 | 372,160 | 41,987 | |||||||||||||||||||||
December 31, 2010
|
1,433 | 202,632 | 16,850 | 91,974 | 311,456 | 395,744 | 55,212 | |||||||||||||||||||||
September 30, 2010
|
1,564 | 206,373 | 17,409 | 89,388 | 313,170 | 426,521 | 83,443 | |||||||||||||||||||||
June 30, 2010
|
1,553 | 190,325 | 18,613 | 99,464 | 308,402 | 402,218 | 100,438 | |||||||||||||||||||||
March 31, 2010
|
1,396 | 180,508 | 29,725 | 109,595 | 319,828 | 417,961 | 168,791 | |||||||||||||||||||||
December 31, 2009
|
1,276 | 143,187 | 17,256 | 80,772 | 241,485 | 256,666 | 116,583 |
Three Months Ended
|
||||||||||||||||||||
December
|
September
|
June
|
March
|
December
|
||||||||||||||||
2011
|
2011
|
2011
|
2011
|
2010
|
||||||||||||||||
Yield on Loans
|
7.04 | % | 6.46 | % | 7.28 | % | 7.05 | % | 7.51 | % | ||||||||||
Yield on Mortgage Securities
|
2.37 | % | 2.96 | % | 3.45 | % | 3.03 | % | 3.02 | % | ||||||||||
Yield on Assets
|
5.37 | % | 5.05 | % | 5.68 | % | 5.26 | % | 5.53 | % | ||||||||||
Cost of Deposits
|
1.05 | % | 1.16 | % | 1.26 | % | 1.38 | % | 1.61 | % | ||||||||||
Cost of CD's
|
1.64 | % | 1.69 | % | 1.74 | % | 1.78 | % | 1.97 | % | ||||||||||
Cost of NOW Accounts
|
0.17 | % | 0.20 | % | 0.28 | % | 0.32 | % | 0.36 | % | ||||||||||
Cost of Rewards Checking
|
0.64 | % | 0.88 | % | 1.07 | % | 1.63 | % | 2.35 | % | ||||||||||
Cost of Savings
|
0.43 | % | 0.31 | % | 0.10 | % | 0.09 | % | 0.14 | % | ||||||||||
Cost of MMDA
|
0.47 | % | 0.44 | % | 0.45 | % | 0.47 | % | 0.51 | % | ||||||||||
Cost of Borrowings
|
4.33 | % | 4.32 | % | 4.28 | % | 4.51 | % | 4.69 | % | ||||||||||
Cost of Liabilities
|
1.44 | % | 1.60 | % | 1.70 | % | 1.92 | % | 2.14 | % | ||||||||||
Loan/Deposit Spread
|
5.99 | % | 5.30 | % | 6.02 | % | 5.67 | % | 5.90 | % | ||||||||||
Mortgage Securities/Borrowings Spread
|
-1.96 | % | -1.36 | % | -0.83 | % | -1.48 | % | -1.67 | % | ||||||||||
Asset/Liability Spread
|
3.93 | % | 3.45 | % | 3.98 | % | 3.34 | % | 3.39 | % |
For the Three Months Ended December 31,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average
Balance |
Interest
|
Average
Yield/ |
Average
Balance |
Interest
|
Average
Yield/ |
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions
|
$ | 102,499 | $ | 68 | 0.27 | % | $ | 145,250 | $ | 85 | 0.23 | % | ||||||||||||
FHLB common stock
|
9,938 | 23 | 0.93 | 13,801 | 14 | 0.41 | ||||||||||||||||||
Mortgage-backed securities and collateralized
mortgage obligations available for sale
|
135,011 | 800 | 2.37 | 128,718 | 972 | 3.02 | ||||||||||||||||||
Other investment securities available for sale
|
26,466 | 60 | 0.91 | 6,051 | 10 | 0.66 | ||||||||||||||||||
Loans receivable (1) (2)
|
656,470 | 11,549 | 7.04 | 602,348 | 11,303 | 7.51 | ||||||||||||||||||
Total interest earning assets
|
930,384 | 12,500 | 5.37 | 896,168 | 12,384 | 5.53 | ||||||||||||||||||
Total noninterest-earning assets
|
202,901 | - | 205,803 | - | ||||||||||||||||||||
Total assets
|
$ | 1,133,285 | 12,500 | $ | 1,101,971 | 12,384 | ||||||||||||||||||
Liabilities and Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
139,894 | 61 | 0.17 | 81,213 | 74 | 0.36 | ||||||||||||||||||
Rewards
|
59,834 | 96 | 0.64 | 69,996 | 412 | 2.35 | ||||||||||||||||||
Savings accounts
|
54,505 | 58 | 0.43 | 17,379 | 6 | 0.14 | ||||||||||||||||||
Money market deposit accounts
|
122,114 | 142 | 0.47 | 90,543 | 115 | 0.51 | ||||||||||||||||||
Certificate of deposit accounts
|
436,581 | 1,785 | 1.64 | 483,858 | 2,379 | 1.97 | ||||||||||||||||||
Total interest-bearing deposits
|
812,928 | 2,142 | 1.05 | 742,989 | 2,986 | 1.61 | ||||||||||||||||||
Borrowed funds
|
110,022 | 1,191 | 4.33 | 156,239 | 1,832 | 4.69 | ||||||||||||||||||
Total interest-bearing liabilities
|
922,950 | 3,333 | 1.44 | 899,228 | 4,818 | 2.14 | ||||||||||||||||||
Noninterest-bearing deposits
|
59,136 | 50,731 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
12,348 | 15,910 | ||||||||||||||||||||||
Total noninterest-bearing liabilities
|
71,484 | 66,641 | ||||||||||||||||||||||
Total liabilities
|
994,434 | 965,869 | ||||||||||||||||||||||
Total stockholders' equity
|
138,851 | 136,102 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,133,285 | $ | 1,101,971 | ||||||||||||||||||||
Net interest income
|
$ | 9,167 | $ | 7,566 | ||||||||||||||||||||
Net interest earning assets (5)
|
$ | 7,434 | $ | (3,060 | ) | |||||||||||||||||||
Net interest rate spread (3)
|
3.93 | % | 3.39 | % | ||||||||||||||||||||
Net interest margin (4)
|
3.94 | % | 3.38 | % | ||||||||||||||||||||
Ratio of interest-earning assets to average interest-bearing liabilities
|
100.81 | % | 99.66 | % |
(1)
|
Includes net loan fees deferred and accreted pursuant to applicable accounting requirements.
|
(2)
|
Interest income on loans is interest income as recorded in the income statement and, therefore, does not include interest income on nonaccrual loans.
|
(3)
|
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest bearing liabilities.
|
(4)
|
Net interest margin represents net interest income as a percentage of average interest-earning assets.
|
(5)
|
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
For the Three Months Ended December 31, 2011
Compared to the Three Months Ended December 31, 2010 |
||||||||||||||||
(In Thousands)
|
||||||||||||||||
Due to
|
||||||||||||||||
Volume
|
Rate
|
Combined
|
Net
|
|||||||||||||
Interest Income:
|
||||||||||||||||
Interest-bearing deposits in other financial institutions
|
$ | (25 | ) | $ | 11 | $ | (3 | ) | $ | (17 | ) | |||||
FHLB common stock and other equity securities
|
(4 | ) | 18 | (5 | ) | 9 | ||||||||||
Mortgage-backed securities and collateralized mortgage obligations available for sale
|
||||||||||||||||
Other investment securities available for sale
|
33 | 4 | 13 | 50 | ||||||||||||
Loans receivable
|
1,015 | (706 | ) | (63 | ) | 246 | ||||||||||
Total interest-earnings assets
|
$ | 1,067 | $ | (882 | ) | $ | (69 | ) | $ | 116 | ||||||
Interest Expense
|
||||||||||||||||
NOW accounts
|
$ | 156 | $ | (368 | ) | $ | (118 | ) | $ | (330 | ) | |||||
Savings accounts
|
13 | 12 | 27 | 52 | ||||||||||||
Money market deposit accounts
|
40 | (10 | ) | (3 | ) | 27 | ||||||||||
Certificate of deposit accounts
|
(232 | ) | (401 | ) | 39 | (594 | ) | |||||||||
Total interest-bearing deposits
|
(23 | ) | (767 | ) | (55 | ) | (845 | ) | ||||||||
Borrowed funds
|
(542 | ) | (141 | ) | 43 | (640 | ) | |||||||||
Total Interest-Bearing Liabilities
|
$ | (565 | ) | $ | (908 | ) | $ | (12 | ) | $ | (1,485 | ) | ||||
Net Change in net interest income
|
$ | 1,632 | $ | 26 | $ | (57 | ) | $ | 1,601 |
For the Three Months Ended
|
||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
December
|
September
|
June
|
March
|
December
|
||||||||||||||||
2011
|
2011
|
2011
|
2011
|
2010
|
||||||||||||||||
Deposit fees
|
$ | 1,724 | $ | 1,601 | $ | 1,448 | $ | 1,360 | $ | 1,433 | ||||||||||
Gain on the sale of loans
|
185 | 150 | 127 | 117 | 262 | |||||||||||||||
Brokerage commissions
|
126 | 169 | 156 | 202 | 167 | |||||||||||||||
Bank owned life insurance
|
272 | 270 | 255 | 290 | 281 | |||||||||||||||
Gain on sale of investments, net
|
633 | 178 | 426 | - | 171 | |||||||||||||||
Impairment losses on securities recognized in earnings
|
(100 | ) | (1,773 | ) | (300 | ) | (223 | ) | - | |||||||||||
FDIC receivable accretion
|
570 | 258 | 181 | 254 | 342 | |||||||||||||||
Loss on sale of other assets held for sale
|
- | - | (350 | ) | - | - | ||||||||||||||
Other income
|
406 | 111 | 156 | 215 | 254 | |||||||||||||||
Gain on FNB acquisition
|
- | 1,095 | - | - | - | |||||||||||||||
Total Noninterest Income
|
$ | 3,816 | $ | 2,059 | $ | 2,099 | $ | 2,215 | $ | 2,910 |
For the Three Months Ended
|
||||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||
December
|
September
|
June
|
March
|
December
|
||||||||||||||||
2011
|
2011
|
2011
|
2011
|
2010
|
||||||||||||||||
Compensation & employee benefits
|
$ | 4,688 | $ | 4,207 | $ | 3,923 | $ | 3,705 | $ | 3,928 | ||||||||||
Occupancy
|
2,036 | 1,805 | 1,472 | 1,701 | 1,543 | |||||||||||||||
Legal & professional
|
497 | 803 | 408 | 469 | 425 | |||||||||||||||
Marketing
|
470 | 469 | 335 | 426 | 389 | |||||||||||||||
Furniture & equipment
|
205 | 191 | 185 | 196 | 200 | |||||||||||||||
Postage, office supplies, and printing
|
279 | 264 | 204 | 256 | 238 | |||||||||||||||
Deposit premium amortization expense
|
140 | 73 | 54 | 55 | 56 | |||||||||||||||
Other
|
865 | 636 | 627 | 658 | 637 | |||||||||||||||
FHLB advance prepayment penalty
|
- | - | - | - | 810 | |||||||||||||||
Federal insurance premiums and other regulatory fees
|
344 | 241 | 293 | 396 | 322 | |||||||||||||||
Net cost of operations of real estate owned
|
740 | (401 | ) | 117 | 765 | 861 | ||||||||||||||
Total Noninterest Expense
|
$ | 10,264 | $ | 8,288 | $ | 7,618 | $ | 8,627 | $ | 9,409 |
December 31,
2011
|
September 30,
2011
|
|||||||||||||||
Covered [1]
|
Non-covered
|
Covered [1]
|
Non-covered
|
|||||||||||||
Non-accrual loans:
|
||||||||||||||||
1-4 family residential real estate
|
$
|
—
|
$
|
5,341
|
$
|
—
|
$
|
5,793
|
||||||||
Commercial real estate
|
—
|
3,408
|
—
|
5,340
|
||||||||||||
Commercial
|
—
|
261
|
—
|
438
|
||||||||||||
Real estate construction
|
—
|
—
|
—
|
26
|
||||||||||||
Consumer and other loans
|
—
|
76
|
—
|
97
|
||||||||||||
Total non-accrual loans
|
$
|
—
|
$
|
9,086
|
$
|
—
|
$
|
11,694
|
||||||||
Loans delinquent 90 days or greater and still accruing:
|
||||||||||||||||
1-4 family residential real estate
|
—
|
46
|
—
|
—
|
||||||||||||
Commercial real estate
|
—
|
—
|
—
|
—
|
||||||||||||
Commercial
|
—
|
—
|
—
|
—
|
||||||||||||
Real estate construction
|
—
|
—
|
—
|
—
|
||||||||||||
Consumer and other loans
|
—
|
—
|
—
|
—
|
||||||||||||
Total loans delinquent 90 days or greater and still accruing
|
$
|
—
|
$
|
46
|
$
|
—
|
$
|
—
|
||||||||
Total non-performing loans
|
$
|
—
|
$
|
9,132
|
$
|
—
|
$
|
11,694
|
||||||||
Real estate owned:
|
||||||||||||||||
1-4 family residential real estate
|
4,872
|
928
|
1,406
|
581
|
||||||||||||
Commercial real estate
|
21,218
|
2,109
|
21,093
|
3,170
|
||||||||||||
Commercial
|
—
|
—
|
3,102
|
—
|
||||||||||||
Real estate construction
|
—
|
352
|
1,660
|
342
|
||||||||||||
Consumer and other loans
|
—
|
—
|
414
|
—
|
||||||||||||
Total real estate owned
|
$
|
26,090
|
$
|
3,389
|
$
|
27,675
|
$
|
4,093
|
||||||||
Total non-performing assets
|
$
|
26,090
|
$
|
12,521
|
$
|
27,675
|
$
|
15,787
|
[1]
|
Nonaccrual covered loans are considered in the 90 days or greater contractually past due classification due to the interest income recognition as accretion income is generally recorded on these covered loans.
|
December 31,
|
September 30,
|
|||||||||||||||
2011
|
2011
|
|||||||||||||||
Covered
|
Non-covered
|
Covered
|
Non-covered
|
|||||||||||||
Ratios:
|
||||||||||||||||
Non-performing loans as a percentage of total non-covered loans
|
N/M
|
2.07
|
%
|
N/M
|
2.72
|
%
|
||||||||||
Non-performing assets as a percentage of total non-covered assets
|
N/M
|
1.63
|
%
|
N/M
|
1.99
|
%
|
Three months ended December 31, 2011
|
|||||||||||||||||||||||||||||
1-4 Family
Real Estate
|
Commercial Real Estate
|
Commercial
|
Real Estate Construction
|
Consumer
and Other
|
Unallocated
|
Total
|
|||||||||||||||||||||||
Allowance for loan losses:
|
|||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 633,364 | $ | 5,972,310 | $ | 821,830 | $ | 1,065,512 | $ | 48,276 | $ | 828,545 | $ | 9,369,837 | |||||||||||||||
Charge-offs
|
(161,558 | ) | (1,786,594 | ) | (81,574 | ) | - | (61,591 | ) | - | (2,091,317 | ) | |||||||||||||||||
Recoveries
|
3,914 | 359 | 34,681 | - | 2,402 | - | 41,356 | ||||||||||||||||||||||
Provision
|
104,035 | 2,173,200 | (201,891 | ) | (476,103 | ) | 74,312 | (173,553 | ) | 1,500,000 | |||||||||||||||||||
Balance at end of period
|
$ | 579,755 | $ | 6,359,275 | $ | 573,046 | $ | 589,409 | $ | 63,399 | $ | 654,992 | $ | 8,819,876 | |||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | - | $ | 617,544 | $ | 66,818 | $ | - | $ | - | $ | 684,362 | |||||||||||||||||
Loans:
|
|||||||||||||||||||||||||||||
Ending balance
|
$ | 101,560,814 | $ | 254,960,299 | $ | 23,996,617 | $ | 41,423,371 | $ | 19,992,582 | $ | 441,933,683 | |||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 5,340,489 | $ | 7,149,582 | $ | 3,092,629 | $ | - | $ | - | $ | 15,582,700 |
Three months ended December 31, 2011
|
||||||||||||||||||||||||
1-4 Family
Real Estate
|
Commercial Real Estate
|
Commercial
|
Real Estate Construction
|
Consumer
and Other
|
Total
|
|||||||||||||||||||
Non-accretable differences [1]:
|
||||||||||||||||||||||||
Balance at beginning of period
|
$ | 3,430,280 | $ | 64,169,400 | $ | 7,706,431 | $ | 2,970,506 | $ | 764,924 | $ | 79,041,541 | ||||||||||||
Charge-offs
|
(296,058 | ) | (7,552,366 | ) | (715,250 | ) | (1,458,408 | ) | (24,371 | ) | (10,046,453 | ) | ||||||||||||
Recoveries
|
1,402 | 537,005 | 104,351 | - | 9,056 | 651,814 | ||||||||||||||||||
Provision for loan losses charged to FDIC receivable
|
(81,552 | ) | 2,259,657 | 378,909 | - | (157,014 | ) | 2,400,000 | ||||||||||||||||
Provision for loan losses charged to operations
|
(20,388 | ) | 564,915 | 94,727 | - | (39,254 | ) | 600,000 | ||||||||||||||||
Balance at end of period
|
$ | 3,033,684 | $ | 59,978,611 | $ | 7,569,168 | $ | 1,512,098 | $ | 553,341 | $ | 72,646,902 | ||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Ending contractual balance
|
$ | 18,980,760 | $ | 245,975,123 | $ | 27,748,162 | $ | 7,322,825 | $ | 8,061,733 | $ | 308,088,603 |
[1]
|
Amounts include the allowance for covered loan losses.
|
Capital Adequacy Ratios
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||||||||
Tier 1 capital (to risk-weighted assets)
|
20.34
|
%
|
23.10
|
%
|
24.38
|
%
|
||||||
Total capital (to risk-weighted assets)
|
21.59
|
%
|
24.36
|
%
|
25.63
|
%
|
||||||
Tier 1 capital (to total assets)
|
11.28
|
%
|
10.68
|
%
|
11.45
|
%
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
•
|
selling fixed rate mortgages we originate to the secondary market, generally on a servicing released basis;
|
•
|
maintaining the diversity of our existing loan portfolio by originating commercial real estate and consumer loans, which typically have adjustable rates and/or shorter terms than residential mortgages;
|
•
|
emphasizing loans with adjustable interest rates;
|
•
|
maintaining fixed rate borrowings from the Federal Home Loan Bank of Atlanta; and
|
•
|
increasing retail transaction deposit accounts, which typically have long durations.
|
Change in Interest
Rates (bp) (1)
|
Estimated NPV (2)
|
Estimated Increase
(Decrease) in NPV
|
Percentage Change
in NPV
|
NPV Ratio as a
Percent of Present
Value
of Assets (3)(4)
|
Increase (Decrease)
in NPV Ratio as a
Percent of Present
Value of Assets (3)(4)
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
+300
|
$
|
121,880
|
$
|
6,023
|
5.2
|
%
|
11.0
|
%
|
0.5
|
%
|
|||||||||||
+200
|
$
|
121,157
|
$
|
5,301
|
4.6
|
%
|
11.0
|
%
|
0.5
|
%
|
|||||||||||
+100
|
$
|
119,774
|
$
|
3,918
|
3.4
|
%
|
10.8
|
%
|
0.3
|
%
|
|||||||||||
0
|
|
$
|
115,857
|
$
|
—
|
—
|
10.5
|
%
|
—
|
||||||||||||
(100)
|
$
|
116,423
|
$
|
567
|
0.5
|
%
|
10.5
|
%
|
0.0
|
%
|
(1)
|
Assumes an instantaneous uniform change in interest rates at all maturities.
|
(2)
|
NPV is the difference between the present value of an institution’s assets and liabilities.
|
(3)
|
Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.
|
(4)
|
NPV Ratio represents NPV divided by the present value of assets.
|
Item 4.
|
Controls and Procedures
|
PART II.
|
OTHER INFORMATION
|
Item 1.
|
Legal Proceedings.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
|
a)
|
Not applicable
|
|
b)
|
Not applicable
|
|
c)
|
The following table presents a summary of the Company’s share repurchases during the quarter ended December 31, 2011.
|
Item 3.
|
Defaults Upon Senior Securities.
|
Item 5.
|
Other Information.
|
Item 6.
|
Exhibits.
|
31.1
|
Rule 13a-14(a)/15d-14(c) Certification of Chief Executive Officer *
|
31.2
|
Rule 13a-14(a)/15d-14(c) Certification of Chief Financial Officer *
|
32.1
|
Section 1350 Certifications *
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Statements of Financial Condition as of December 31, 2011 and September 30, 2011, (ii) the Consolidated Statements of Income for three months ended December 31, 2011 and 2010, (iii) the Consolidated Statements of Changes in Stockholders’ Equity and Comprehensive Income for the three months ended December 31, 2011 and the year ended September 30, 2011, (iv) the Consolidated Statements of Cash Flows for the three months ended December 31, 2011 and 2010, and (v) the Notes to the Unaudited Condensed Consolidated Financial Statements.*
|
*
|
This information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.
|
CHARTER FINANCIAL CORPORATION
|
||||
Date: February 13, 2012
|
By:
|
/s/ Robert L. Johnson
|
||
Robert L. Johnson
|
||||
President and Chief Executive Officer
|
||||
Date: February 13, 2012
|
By:
|
/s/ Curtis R. Kollar
|
||
Curtis R. Kollar
|
||||
Senior Vice President and Chief Financial Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Charter Financial Corporation;
|
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 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(s) 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:
|
5.
|
The registrant’s other certifying officer(s) 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):
|
Date: February 13, 2012
|
/s/ Robert L. Johnson
|
|
Robert L. Johnson
|
||
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Charter Financial Corporation;
|
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 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(s) 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:
|
5.
|
The registrant’s other certifying officer(s) 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):
|
Date: February 13, 2012
|
/s/ Curtis R. Kollar
|
|
Curtis R. Kollar
|
||
Senior Vice President and Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; 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 and for the period covered by the Report.
|
Date: February 13, 2012
|
/s/ Robert L. Johnson
|
|
Robert L. Johnson
|
||
President and Chief Executive Officer
|
||
Date: February 13, 2012
|
/s/ Curtis R. Kollar
|
|
Curtis R. Kollar
|
||
Senior Vice President and Chief Financial Officer
|
Note 2 - Basis of Presentation
|
3 Months Ended |
---|---|
Dec. 31, 2011
|
|
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] |
Note
2: Basis of Presentation
The
accompanying unaudited interim consolidated financial
statements of Charter Financial Corporation and subsidiary
include the accounts of the Company and the Bank as of
December 31, 2011 and September 30, 2011 (derived from
audited financial statements), and for the three-month
periods ended December 31, 2011 and 2010. All intercompany
accounts and transactions have been eliminated in
consolidation. The unaudited interim consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial
information and with the rules and regulations of the
Securities and Exchange Commission. Accordingly, they do not
include all of the information and footnotes required by
generally accepted accounting principles for complete
financial statements. In the opinion of management, the
unaudited interim consolidated financial statements include
all necessary adjustments, consisting of normal recurring
accruals, necessary for a fair presentation for the periods
presented. The results of operations for the three-month
period ended December 31, 2011 and December 31, 2010 are not
necessarily indicative of the results that may be expected
for the entire year or any other interim period.
The
preparation of financial statements in conformity with
accounting principles generally accepted in the United States
of America requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those
estimates. Material estimates that are particularly
susceptible to significant change in the near term relate to
the determination of the allowance for loan losses, the
valuation of real estate acquired in connection with
foreclosures or in satisfaction of loans, the estimates used
for fair value acquisition accounting and the Federal Deposit
Insurance Corporation receivable for loss sharing agreements,
estimate of expected cash flows on purchased impaired and
other acquired loans, and the assessment for
other-than-temporary impairment of investment securities,
mortgage-backed securities, and collateralized mortgage
obligations.
|
F5D/"]T9#X-"B`@("`@("`@/'1D(&-L87-S/3-$;G5M<#XP/'-P
M86X^/"]S<&%N/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S