000-49693
|
92-2115369
|
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
975 El Camino Real, South San Francisco, California | 94080 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o
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Accelerated filer o
|
|
Non-accelerated filer x
|
Smaller reporting company o
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Page No
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46
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46
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46
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47
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September 30,
|
December 31,
|
|||||||
(Dollar amounts in thousands)
|
2011
|
2010
|
||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 69,273 | $ | 60,874 | ||||
Securities available-for-sale at fair value
|
152,376 | 126,189 | ||||||
Loans, net of allowance for loan losses of $9,646 and $9,524 on September 30, 2011 and December 31, 2010
|
456,106 | 474,828 | ||||||
Bank premises, equipment, and leasehold improvements, net
|
13,399 | 13,535 | ||||||
Other real estate owned
|
2,988 | 6,680 | ||||||
Goodwill
|
1,841 | 1,841 | ||||||
Accrued interest receivable and other assets
|
27,037 | 30,692 | ||||||
Total assets
|
$ | 723,020 | $ | 714,639 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Deposits
|
||||||||
Demand, noninterest bearing
|
141,196 | 137,237 | ||||||
Demand, interest bearing
|
60,627 | 60,413 | ||||||
Savings and money market
|
324,321 | 305,390 | ||||||
Time
|
105,510 | 125,400 | ||||||
Total deposits
|
631,654 | 628,440 | ||||||
Accrued expenses and other liabilities
|
5,672 | 5,275 | ||||||
Total liabilities
|
637,326 | 633,715 | ||||||
Stockholders’ equity
|
||||||||
Preferred stock - series A - no par value, authorized and outstanding 12,000 shares (liquidation preference of $1,000 per share plus accrued dividends)
|
— | 11,747 | ||||||
Preferred stock - series B - no par value, authorized and outstanding 600 shares (liquidation preference of $1,000 per share plus accrued dividends)
|
— | 615 | ||||||
Preferred stock - series C - no par value, authorized and outstanding 12,600 shares (liquidation preference of $1,000 per share plus accrued dividends)
|
12,600 | — | ||||||
Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 3,339,468 shares at September 30, 2011 and 3,341,049 shares at December 31, 2010
|
46,804 | 46,565 | ||||||
Retained earnings
|
23,581 | 21,760 | ||||||
Accumulated other comprehensive income
|
2,709 | 237 | ||||||
Total stockholders’ equity
|
85,694 | 80,924 | ||||||
Total liabilities and stockholders’ equity
|
$ | 723,020 | $ | 714,639 |
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Interest income:
|
||||||||||||||||
Interest and fees on loans
|
$ | 7,314 | $ | 7,799 | $ | 22,159 | $ | 23,735 | ||||||||
Interest on taxable securities
|
513 | 482 | 1,379 | 1,423 | ||||||||||||
Interest on tax-exempt securities
|
414 | 335 | 1,192 | 874 | ||||||||||||
Total interest income
|
8,241 | 8,616 | 24,730 | 26,032 | ||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
842 | 1,154 | 2,583 | 3,817 | ||||||||||||
Federal Home Loan Bank advances
|
— | 184 | — | 551 | ||||||||||||
Total interest expense
|
842 | 1,338 | 2,583 | 4,368 | ||||||||||||
Net interest income
|
7,399 | 7,278 | 22,147 | 21,664 | ||||||||||||
Provision for loan losses
|
450 | 464 | 1,300 | 1,029 | ||||||||||||
Net interest income after provision for loan losses
|
6,949 | 6,814 | 20,847 | 20,635 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges
|
817 | 686 | 2,325 | 2,045 | ||||||||||||
Credit card fees
|
197 | 159 | 525 | 473 | ||||||||||||
Gain on sale of available-for-sale securities
|
168 | 330 | 318 | 492 | ||||||||||||
Bank owned life insurance earnings
|
83 | 87 | 248 | 246 | ||||||||||||
Other income
|
102 | 73 | 353 | 181 | ||||||||||||
Total noninterest income
|
1,367 | 1,335 | 3,769 | 3,437 | ||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
3,413 | 3,418 | 10,322 | 10,399 | ||||||||||||
Occupancy expense
|
593 | 515 | 1,734 | 1,532 | ||||||||||||
Equipment expense
|
433 | 472 | 1,258 | 1,495 | ||||||||||||
FDIC assessment
|
240 | 363 | 915 | 986 | ||||||||||||
Professional fees
|
449 | 372 | 1,206 | 951 | ||||||||||||
Telephone, postage and supplies
|
253 | 271 | 864 | 816 | ||||||||||||
Operating losses
|
310 | 19 | 547 | 52 | ||||||||||||
Bankcard expenses
|
181 | 147 | 482 | 436 | ||||||||||||
Low income housing expense
|
69 | 69 | 208 | 208 | ||||||||||||
Loss (gain) on sale of other real estate owned
|
— | 30 | (66 | ) | 5 | |||||||||||
Loss on impairment of other real estate owned
|
69 | 85 | 299 | 732 | ||||||||||||
Other real estate owned expense
|
55 | 207 | 316 | 819 | ||||||||||||
Other expense
|
718 | 730 | 2,218 | 2,018 | ||||||||||||
Total noninterest expense
|
6,783 | 6,698 | 20,303 | 20,449 | ||||||||||||
Earnings before provision for income tax expense
|
1,533 | 1,451 | 4,313 | 3,623 | ||||||||||||
Provision for income tax expense
|
344 | 426 | 1,141 | 855 | ||||||||||||
Net earnings
|
1,189 | 1,025 | 3,172 | 2,768 | ||||||||||||
Dividends and discount accretion on preferred stock
|
372 | 214 | 800 | 640 | ||||||||||||
Net earnings available to common stockholders
|
$ | 817 | $ | 811 | $ | 2,372 | $ | 2,128 | ||||||||
Earnings per share data:
|
||||||||||||||||
Basic
|
$ | 0.24 | $ | 0.24 | $ | 0.71 | $ | 0.64 | ||||||||
Diluted
|
$ | 0.24 | $ | 0.24 | $ | 0.71 | $ | 0.64 | ||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
3,342 | 3,341 | 3,342 | 3,341 | ||||||||||||
Diluted
|
3,361 | 3,341 | 3,361 | 3,351 |
(Dollar amounts in thousands)
|
Three months ended
|
Nine months ended
|
||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net earnings
|
$ | 1,189 | $ | 1,025 | $ | 3,172 | $ | 2,768 | ||||||||
Unrealized holding gain on available-for-sale securities
|
1,216 | 869 | 2,660 | 1,585 | ||||||||||||
Reclassification adjustment for gain on available-for-sale securities sold, net of tax
|
(99 | ) | (195 | ) | (188 | ) | (290 | ) | ||||||||
Total comprehensive earnings
|
$ | 2,306 | $ | 1,699 | $ | 5,644 | $ | 4,063 |
(Dollar amounts in thousands)
|
Nine months ended
|
|||||||
September 30
|
||||||||
2011
|
2010
|
|||||||
Cash flow from operating activities:
|
||||||||
Net earnings
|
$ | 3,172 | $ | 2,768 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Gain on sale of securities available-for-sale
|
(318 | ) | (492 | ) | ||||
Depreciation, amortization and accretion
|
2,041 | 1,828 | ||||||
Gain on sale of other real estate owned
|
(66 | ) | — | |||||
Stock-based compensation expense
|
230 | 126 | ||||||
Provision for loan losses
|
1,300 | 1,029 | ||||||
Decrease in accrued interest receivable and other assets
|
3,655 | 2,040 | ||||||
Valuation allowance on other real estate owned
|
299 | 732 | ||||||
(Decrease) increase in accrued expenses and other liabilities
|
(1,321 | ) | 25 | |||||
Net cash provided by operating activities
|
8,992 | 8,056 | ||||||
Cash flows from investing activities
|
||||||||
Purchase of securities available-for-sale
|
(51,557 | ) | (105,958 | ) | ||||
Proceeds from matured/called/sold securities available-for-sale
|
28,950 | 74,008 | ||||||
Proceeds from sale of other real estate owned
|
4,078 | 3,631 | ||||||
Net investment in other real estate owned
|
— | (468 | ) | |||||
Net decrease in loans
|
16,803 | 14,673 | ||||||
Purchases of bank premises, equipment, leasehold improvements
|
(979 | ) | (1,143 | ) | ||||
Proceeds from sale of equipment
|
2 | — | ||||||
Net cash used in investing activities
|
(2,703 | ) | (15,257 | ) | ||||
Cash flows from financing activities
|
||||||||
Net increase in demand and savings deposits
|
23,104 | 41,147 | ||||||
Net decrease in time deposits
|
(19,890 | ) | (1,101 | ) | ||||
Net decrease in Federal Home Loan Bank advances
|
— | (25,000 | ) | |||||
Dividends paid on common stock
|
(568 | ) | (477 | ) | ||||
Exercise of stock options
|
9 | — | ||||||
Dividends paid on preferred stock series A and B
|
(545 | ) | (490 | ) | ||||
Repayment of series A and B preferred stock
|
(12,600 | ) | — | |||||
Issuance of preferred stock series C
|
12,600 | — | ||||||
Net cash provided by financing activities
|
2,110 | 14,079 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
8,399 | 6,878 | ||||||
Cash and cash equivalents at beginning of period
|
60,874 | 62,853 | ||||||
Cash and cash equivalents at end of period
|
$ | 69,273 | $ | 69,731 | ||||
Additional cash flow information:
|
||||||||
Interest paid
|
2,581 | 4,630 | ||||||
Income taxes paid
|
1,640 | 207 | ||||||
Non-cash investing and financing activities:
|
||||||||
Accrued dividends
|
200 | 159 | ||||||
Change in unrealized gain in available for-sale securities, net of tax
|
2,472 | 1,295 | ||||||
Loans transferred to other real estate owned
|
619 | 3,183 | ||||||
Deemed dividends on preferred stock
|
255 | 149 |
(All amounts in thousands)
|
Three months ended
|
Nine months ended
|
||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net earnings
|
$ | 1,189 | $ | 1,025 | $ | 3,172 | $ | 2,768 | ||||||||
Dividends and discount accretion on preferred stock
|
372 | 214 | 800 | 640 | ||||||||||||
Net earnings available to common shareholders
|
$ | 817 | $ | 811 | $ | 2,372 | $ | 2,128 | ||||||||
Average number of shares outstanding
|
3,342 | 3,341 | 3,342 | 3,341 | ||||||||||||
Effect of dilutive options
|
19 | 10 | 19 | 10 | ||||||||||||
Average number of shares outstanding used to calculate diluted earnings per share
|
3,361 | 3,351 | 3,361 | 3,351 | ||||||||||||
Anti-dilutive options not included
|
168 | 323 | 300 | 323 |
(Dollar amounts in thousands)
|
Amortized
|
Unrealized
|
Unrealized
|
Carrying
|
||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
September 30, 2011
|
||||||||||||||||
U. S. Treasury securities
|
$ | 12,405 | $ | 261 | $ | — | $ | 12,666 | ||||||||
Obligations of U.S. Government agencies
|
47,822 | 1,042 | — | 48,864 | ||||||||||||
Mortgage backed securities
|
25,381 | 1,051 | — | 26,432 | ||||||||||||
Obligations of states and political subdivisions
|
51,862 | 2,353 | (47 | ) | 54,168 | |||||||||||
Corporate debt
|
10,315 | 104 | (173 | ) | 10,246 | |||||||||||
$ | 147,785 | $ | 4,811 | $ | (220 | ) | $ | 152,376 |
(Dollar amounts in thousands)
|
Amortized
|
Unrealized
|
Unrealized
|
Carrying
|
||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
December 31, 2010:
|
||||||||||||||||
U.S. Treasury securities
|
$ | 12,440 | $ | 2 | $ | (97 | ) | $ | 12,345 | |||||||
Obligations of U.S. Government agencies
|
45,941 | 488 | (315 | ) | 46,114 | |||||||||||
Mortgage-backed securities
|
18,564 | 521 | (17 | ) | 19,068 | |||||||||||
Obligations of states and political subdivisions
|
42,738 | 582 | (864 | ) | 42,456 | |||||||||||
Corporate debt
|
6,105 | 109 | (8 | ) | 6,206 | |||||||||||
$ | 125,788 | $ | 1,702 | $ | (1,301 | ) | $ | 126,189 |
September 30, 2011:
|
# of
|
Total
|
< 12 Months
|
Total
|
12 Months or >
|
Total
|
Total
|
|||||||||||||||||||||
(Dollar amounts
|
secu-
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||||
in thousands)
|
rities
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||||
Obligations of states and political subdivisions
|
9 | $ | 6,369 | (47 | ) | — | — | $ | 6,369 | (47 | ) | |||||||||||||||||
Corporate debt
|
6 | 4,485 | (173 | ) | — | — | 4,485 | (173 | ) | |||||||||||||||||||
Total
|
15 | $ | 10,854 | $ | (220 | ) | $ | — | $ | — | $ | 10,854 | $ | (220 | ) |
December 31, 2010:
|
# of
|
Total
|
< 12 Months
|
Total
|
12 Months or >
|
Total
|
Total
|
|||||||||||||||||||||
(Dollar amounts
|
secu-
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||||
in thousands)
|
rities
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||||
U.S. Treasury securities
|
11 | $ | 11,341 | $ | (97 | ) | $ | — | $ | — | $ | 11,341 | $ | (97 | ) | |||||||||||||
Obligations of U.S. Government agencies
|
19 | 19,983 | (315 | ) | — | — | 19,983 | (315 | ) | |||||||||||||||||||
Mortgage-backed securities
|
1 | 1,864 | (17 | ) | — | — | 1,864 | (17 | ) | |||||||||||||||||||
Obligations of states and political subdivisions
|
37 | 22,639 | (864 | ) | — | — | 22,639 | (864 | ) | |||||||||||||||||||
Corporate debt
|
2 | 1,437 | (8 | ) | — | — | 1,437 | (8 | ) | |||||||||||||||||||
Total
|
70 | $ | 57,264 | $ | (1,301 | ) | $ | — | $ | — | $ | 57,264 | $ | (1,301 | ) |
(Dollar amounts in thousands)
|
Amortized
|
Carrying
|
||||||
Cost
|
Value
|
|||||||
Available-for-sale:
|
||||||||
Due in one year or less
|
$ | 7,140 | $ | 7,182 | ||||
Due after one through five years
|
77,937 | 79,576 | ||||||
Due after five years through ten years
|
26,028 | 27,061 | ||||||
Due after ten years
|
36,680 | 38,557 | ||||||
$ | 147,785 | $ | 152,376 |
September 30,
|
December 31,
|
|||||||
(Dollar amounts in thousands)
|
2011
|
2010
|
||||||
Commercial real estate
|
$ | 268,455 | $ | 278,866 | ||||
Commercial real estate construction
|
24,476 | 21,410 | ||||||
Residential 1 to 4 family construction
|
7,315 | 6,167 | ||||||
Real estate multi-family
|
37,265 | 42,584 | ||||||
Real estate 1 to 4 family
|
81,461 | 71,463 | ||||||
Commercial & industrial
|
44,612 | 61,493 | ||||||
Consumer loans
|
2,349 | 2,689 | ||||||
Gross loans
|
465,933 | 484,672 | ||||||
Net deferred loan fees
|
(181 | ) | (320 | ) | ||||
Allowance for loan losses
|
(9,646 | ) | (9,524 | ) | ||||
Net loans
|
$ | 456,106 | $ | 474,828 |
Unpaid
|
||||||||||||
(Dollar amounts in thousands)
|
Recorded
|
Principal
|
Related
|
|||||||||
Investment
|
Balance
|
Allowance
|
||||||||||
With no related allowance recorded
|
||||||||||||
Commercial & industrial
|
$ | 3,684 | $ | 3,813 | $ | — | ||||||
Commercial real estate construction
|
6,255 | 6,255 | — | |||||||||
Commercial real estate
|
1,476 | 1,578 | — | |||||||||
Residential - 1 to 4 family
|
1,073 | 1,187 | — | |||||||||
Total
|
12,488 | 12,833 | — | |||||||||
With an allowance recorded
|
||||||||||||
Commercial & industrial
|
$ | 4,371 | 5,141 | $ | 1,506 | |||||||
Residential 1 to 4 family construction
|
1,590 | 1,690 | 142 | |||||||||
Commercial real estate
|
7,187 | 7,654 | 413 | |||||||||
Residential- 1 to 4 family
|
2,253 | 2,262 | 212 | |||||||||
Total
|
15,401 | 16,747 | 2,273 | |||||||||
Total
|
||||||||||||
Commercial & industrial
|
$ | 8,055 | $ | 8,954 | $ | 1,506 | ||||||
Commercial real estate construction
|
6,255 | 6,255 | — | |||||||||
Residential 1 to 4 family construction
|
1,590 | 1,690 | 142 | |||||||||
Commercial real estate
|
8,663 | 9,232 | 413 | |||||||||
Residential - 1 to 4 family
|
3,326 | 3,449 | 212 | |||||||||
Grand total
|
$ | 27,889 | $ | 29,580 | $ | 2,273 |
3 months ended
|
9 months ended
|
|||||||||||||||
September 30, 2011
|
September 30, 2011
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
(Dollar amounts in thousands)
|
Recorded
|
Income
|
Recorded
|
Income
|
||||||||||||
Investment
|
Recognized
|
Investment
|
Recognized
|
|||||||||||||
With no related allowance recorded
|
||||||||||||||||
Commercial & industrial
|
$ | 3,623 | $ | 48 | $ | 4,666 | $ | 148 | ||||||||
Commercial real estate
|
1,840 | 22 | 1,840 | 51 | ||||||||||||
Commercial real estate construction
|
6,267 | 22 | 6,278 | 179 | ||||||||||||
Residential - 1 to 4 family
|
1,031 | 12 | 1,076 | 50 | ||||||||||||
Total
|
12,760 | 104 | 13,860 | 428 | ||||||||||||
With an allowance recorded
|
||||||||||||||||
Commercial
|
$ | 4,455 | $ | 9 | $ | 4,547 | $ | 35 | ||||||||
Residential 1 to 4 family construction
|
1,592 | 14 | 2,111 | 43 | ||||||||||||
Commercial real estate
|
6,572 | 30 | 5,787 | 138 | ||||||||||||
Residential- 1 to 4 family
|
2,254 | 22 | 2,255 | 69 | ||||||||||||
Total
|
14,873 | 75 | 14,700 | 285 | ||||||||||||
Total
|
||||||||||||||||
Commercial & industrial
|
$ | 8,077 | 57 | $ | 9,213 | $ | 183 | |||||||||
Commercial real estate construction
|
7,859 | 36 | 8,388 | 222 | ||||||||||||
Commercial real estate
|
8,412 | 52 | 7,627 | 189 | ||||||||||||
Residential - 1 to 4 family
|
3,285 | 34 | 3,331 | 119 | ||||||||||||
Grand total
|
$ | 27,632 | $ | 179 | $ | 28,559 | $ | 713 |
Unpaid
|
Average
|
|||||||||||||||||||
(Dollar amounts in thousands)
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||
Commercial & industrial
|
$ | 4,743 | $ | 4,841 | $ | — | $ | 4,801 | $ | 74 | ||||||||||
Commercial real estate
|
4,206 | 4,206 | — | 4,323 | 131 | |||||||||||||||
Total
|
8,949 | 9,047 | — | 9,124 | 205 | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Commercial & industrial
|
$ | 2,644 | 3,044 | $ | 527 | $ | 2,945 | $ | 31 | |||||||||||
Commercial real estate construction
|
6,300 | 6,300 | 15 | 3,150 | 228 | |||||||||||||||
Residential 1 to 4 family construction
|
2,631 | 2,631 | 353 | 2,410 | 75 | |||||||||||||||
Commercial real estate
|
3,474 | 3,474 | 364 | 3,505 | 171 | |||||||||||||||
Residential- 1 to 4 family
|
3,304 | 3,349 | 210 | 3,347 | 100 | |||||||||||||||
Total
|
18,353 | 18,798 | 1,469 | 15,357 | 605 | |||||||||||||||
Total
|
||||||||||||||||||||
Commercial & industrial
|
$ | 7,387 | $ | 7,885 | $ | 527 | $ | 7,746 | $ | 105 | ||||||||||
Commercial real estate construction
|
6,300 | 6,300 | 15 | 3,150 | 228 | |||||||||||||||
Residential 1 to 4 family construction
|
2,631 | 2,631 | 353 | 2,410 | 75 | |||||||||||||||
Commercial real estate
|
7,680 | 7,680 | 364 | 7,828 | 302 | |||||||||||||||
Residential - 1 to 4 family
|
3,304 | 3,349 | 210 | 3,347 | 100 | |||||||||||||||
Grand total
|
$ | 27,302 | $ | 27,845 | $ | 1,469 | $ | 24,481 | $ | 810 |
September 30
|
December 31
|
|||||||
(Dollars amounts in thousands)
|
2011
|
2010
|
||||||
Outstanding balance
|
$ | 16,180 | $ | 16,712 | ||||
Weighted average rate
|
5.94 | % | 5.99 | % | ||||
Weighted average term to maturity
|
70 months
|
94 months
|
Loans on Nonaccrual Status
|
||||||||
As of
|
||||||||
(Dollar amounts in thousands)
|
September 30,
|
December 31,
|
||||||
2011
|
2010
|
|||||||
Commercial & industrial
|
$ | 5,512 | $ | 5,415 | ||||
Commercial real estate construction
|
115 | 1,963 | ||||||
Residential 1 to 4 family construction
|
527 | 1,555 | ||||||
Commercial real estate
|
8,730 | 6,662 | ||||||
Real estate 1 to 4 family
|
1,296 | 1,117 | ||||||
Consumer
|
— | — | ||||||
Total
|
$ | 16,180 | $ | 16,712 |
(in thousands)
|
September 30, 2011 | |||||||||||
Accrual
|
Non-Accrual
|
Total
|
||||||||||
Status
|
Status
|
Modifications
|
||||||||||
Troubled Debt Restructurings:
|
||||||||||||
Commercial & industrial
|
725 | 1,637 | 2,362 | |||||||||
Residential 1 to 4 family
|
— | 1,015 | 1,015 | |||||||||
Commercial real estate
|
739 | 1,269 | 2,008 | |||||||||
Real estate multi family
|
0 | 3,326 | 3,326 | |||||||||
Total
|
$ | 1,464 | $ | 7,247 | $ | 8,711 |
(in thousands)
|
December 31, 2010 | |||||||||||
Accrual
|
Non-Accrual
|
Total
|
||||||||||
Status
|
Status
|
Modifications
|
||||||||||
Troubled Debt Restructurings:
|
||||||||||||
Commercial & industrial
|
773 | 1,643 | 2,416 | |||||||||
Residential 1 to 4 family
|
500 | 1,047 | 1,547 | |||||||||
Commercial real estate
|
1,022 | 3,575 | 4,597 | |||||||||
Real estate multi family
|
— | 3,474 | 3,474 | |||||||||
Commercial real estate construction
|
6,300 | — | 6,300 | |||||||||
Residential 1 to 4 family construction
|
1,075 | — | 1,075 | |||||||||
Total
|
$ | 9,670 | $ | 9,739 | $ | 19,409 |
Three months ended
|
||||||||||||||||||||||||
September 30, 2011
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
x | — | x | x | 2 | 105 | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
— | — | — | — | — | — | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
— | — | — | — | 2 | 105 |
Three months ended
|
||||||||||||||||||||||||
September 30, 2011
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Post-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
x | — | x | x | 2 | 105 | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
— | — | — | — | — | — | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
— | — | — | — | 2 | 105 |
Three months ended
|
||||||||||||||||||||||||
September 30, 2010
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
— | — | — | — | — | — | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
— | — | — | — | — | — | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
— | — | — | — | — | — |
Three months ended
|
||||||||||||||||||||||||
September 30, 2010
|
||||||||||||||||||||||||
|
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Post-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
— | — | — | — | — | — | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
— | — | — | — | — | — | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
— | — | — | — | — | — |
Nine months ended
|
||||||||||||||||||||||||
September 30, 2011
|
||||||||||||||||||||||||
|
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
x | — | x | x | 2 | 105 | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
x | — | — | x | 1 | 739 | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
— | — | — | — | 3 | 844 |
Nine months ended
|
||||||||||||||||||||||||
September 30, 2011
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Post-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
x | — | x | x | 2 | 105 | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
x | — | — | x | 1 | 739 | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
— | — | — | — | 3 | 844 |
Nine months ended
|
||||||||||||||||||||||||
September 30, 2010
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Pre-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
— | — | x | x | 1 | 1,670 | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
— | — | — | — | — | — | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate construction
|
x | — | — | x | 1 | 6,300 | ||||||||||||||||||
Residential 1to 4 family construction
|
x | — | — | x | 1 | 1,078 | ||||||||||||||||||
Total
|
— | — | — | — | 3 | 9,048 |
Nine months ended
|
||||||||||||||||||||||||
September 30, 2010
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Post-Modification Outstanding Recorded Investment
|
||||||||||||||||||||||||
Commercial & industrial
|
— | — | x | x | 1 | 1,670 | ||||||||||||||||||
Residential 1 to 4 family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate
|
— | — | — | — | — | — | ||||||||||||||||||
Real estate multi family
|
— | — | — | — | — | — | ||||||||||||||||||
Commercial real estate construction
|
x | — | — | x | 1 | 6,300 | ||||||||||||||||||
Residential 1 to 4 family construction
|
x | — | — | x | 1 | 1,078 | ||||||||||||||||||
Total
|
— | — | — | — | 3 | 9,048 |
(in thousands)
|
||||||||||||||||
Three months ended | ||||||||||||||||
# of
|
September
|
# of
|
September
|
|||||||||||||
loans
|
2011
|
loans
|
2010
|
|||||||||||||
Commercial & industrial
|
2 | 105 | — | — | ||||||||||||
Real estate 1 to 4 family
|
— | — | — | — | ||||||||||||
Commercial real estate
|
— | — | — | — | ||||||||||||
Real estate multi family
|
— | — | — | — | ||||||||||||
Total
|
2 | $ | 105 | — | $ | — |
(in thousands)
|
||||||||||||||||
Nine months ended | ||||||||||||||||
# of
|
September
|
# of
|
September
|
|||||||||||||
loans
|
2011 |
loans
|
2010 | |||||||||||||
Commercial & industrial
|
2 | 105 | 1 | 1,670 | ||||||||||||
Real estate 1 to 4 family
|
— | — | — | — | ||||||||||||
Commercial real estate
|
1 | 739 | — | — | ||||||||||||
Real estate multi family
|
— | — | — | — | ||||||||||||
Commercial real estate construction
|
— | — | 2 | 6,300 | ||||||||||||
Residential 1 to 4 family construction
|
— | — | 1 | 1,078 | ||||||||||||
Total
|
3 | $ | 844 | 3 | $ | 9,048 |
Modifications
As of September 30, 2011
|
||||||||||||
Pre-
|
Post-
|
|||||||||||
Modification
|
Modification
|
|||||||||||
Outstanding
|
Outstanding
|
|||||||||||
Number of
|
Recorded
|
Recorded
|
||||||||||
(Dollar amounts in thousands)
|
Contracts
|
Investment
|
Investment
|
|||||||||
Commercial & industrial
|
5 | $ | 2,362 | $ | 2,362 | |||||||
Real estate 1 to 4 family
|
2 | 1,015 | 1,015 | |||||||||
Commercial real estate
|
4 | 2,008 | 2,008 | |||||||||
Real estate multi family
|
1 | 3,326 | 3,326 | |||||||||
Total
|
12 | 8,711 | 8,711 |
Modifications
|
||||||||||||
As of December 31, 2010
|
||||||||||||
Pre-
|
Post-
|
|||||||||||
Modification
|
Modification
|
|||||||||||
Outstanding
|
Outstanding
|
|||||||||||
Number of
|
Recorded
|
Recorded
|
||||||||||
(Dollar amounts in thousands)
|
Contracts
|
Investment
|
Investment
|
|||||||||
Commercial & industrial
|
3 | $ | 2,416 | $ | 2,416 | |||||||
Real estate 1 to 4 family
|
4 | 2,621 | 2,621 | |||||||||
Commercial real estate
|
4 | 4,598 | 4,598 | |||||||||
Real estate multi family
|
2 | 9,774 | 9,774 | |||||||||
Total
|
13 | 19,409 | 19,409 |
September 30,2011
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Commercial & industrial
|
x | — | — | x | 3 | $ | 2,257 | |||||||||||||||||
Commercial real estate
|
x | — | — | x | 2 | 854 | ||||||||||||||||||
Total
|
— | — | — | — | 5 | $ | 3,111 |
Successful Troubled Debt Restructurings
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
December 31,2010
|
||||||||||||||||||||||||
Rate
|
Term
|
Interest Only
|
Payment
|
# of
|
Total
|
|||||||||||||||||||
Modifications
|
Modifications
|
Modifications
|
Modifications
|
Loans
|
Modifications
|
|||||||||||||||||||
Commercial & industrial
|
x | — | — | x | 3 | $ | 2,416 | |||||||||||||||||
Commercial real estate
|
x | — | — | x | 1 | 1,022 | ||||||||||||||||||
Real estate multi family
|
x | — | — | x | 1 | 6,300 | ||||||||||||||||||
Total
|
— | — | — | — | 5 | $ | 9,738 |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||||||
30-59 | 60-89 |
Recorded
|
||||||||||||||||||||||||||
Days
|
Days
|
Over
|
Total
|
Investment >
|
||||||||||||||||||||||||
Past
|
Past
|
90 |
Past
|
Total
|
90 Days and
|
|||||||||||||||||||||||
Due
|
Due
|
Days
|
Due
|
Current
|
Loans
|
Accruing
|
||||||||||||||||||||||
Commercial & industrial
|
$ | 330 | $ | — | $ | 651 | $ | 981 | $ | 43,631 | $ | 44,612 | $ | — | ||||||||||||||
Commercial real estate
|
— | — | 8,040 | 8,040 | 297,680 | 305,720 | — | |||||||||||||||||||||
Commercial real estate -construction
|
26 | — | 527 | 553 | 23,923 | 24,476 | — | |||||||||||||||||||||
Residential 1 to 4 family -construction
|
— | — | — | — | 7,315 | 7,315 | — | |||||||||||||||||||||
Residential
|
739 | 74 | 212 | 1,025 | 80,436 | 81,461 | — | |||||||||||||||||||||
Consumer
|
— | 10 | — | 10 | 2,339 | 2,349 | — | |||||||||||||||||||||
Total
|
$ | 1,095 | $ | 84 | $ | 9,430 | $ | 10,609 | $ | 455,324 | $ | 465,933 | $ | — |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||||||
30-59 | 60-89 |
Recorded
|
||||||||||||||||||||||||||
Days
|
Days
|
Greater
|
Total
|
Investment >
|
||||||||||||||||||||||||
Past
|
Past
|
Than
|
Past
|
Total
|
90 Days and
|
|||||||||||||||||||||||
Due
|
Due
|
90 Days
|
Due
|
Current
|
Loans
|
Accruing
|
||||||||||||||||||||||
Commercial & industrial
|
$ | 1,216 | $ | 250 | $ | 1,251 | $ | 2,717 | $ | 58,776 | $ | 61,493 | $ | — | ||||||||||||||
Commercial real estate
|
4,138 | 1,705 | 6,051 | 11,894 | 309,556 | 321,450 | — | |||||||||||||||||||||
Commercial real estate -construction
|
— | — | — | — | 21,410 | 21,410 | — | |||||||||||||||||||||
Residential 1 to 4 family -construction
|
— | — | 1,556 | 1,556 | 4,611 | 6,167 | — | |||||||||||||||||||||
Residential
|
2,830 | 99 | 70 | 2,999 | 68,464 | 71,463 | — | |||||||||||||||||||||
Consumer
|
2 | — | — | 2 | 2,687 | 2,689 | — | |||||||||||||||||||||
Total
|
$ | 8,186 | $ | 2,054 | $ | 8,928 | $ | 19,168 | $ | 465,504 | $ | 484,672 | $ | — |
(Dollar amounts in thousands)
|
||||||||||||||||||||
Special
|
Sub-
|
Total
|
||||||||||||||||||
Pass
|
mention
|
standard
|
Doubtful
|
loans
|
||||||||||||||||
Commercial & industrial
|
$ | 37,012 | $ | — | $ | 7,235 | $ | 365 | $ | 44,612 | ||||||||||
Commercial real estate construction
|
15,765 | — | 8,711 | — | 24,476 | |||||||||||||||
Residential 1 to 4 family construction
|
6,788 | 527 | 7,315 | |||||||||||||||||
Commercial real estate
|
295,457 | — | 10,263 | — | 305,720 | |||||||||||||||
Real estate 1 to 4 family
|
77,590 | — | 3,413 | 458 | 81,461 | |||||||||||||||
Consumer loans
|
2,349 | — | — | — | 2,349 | |||||||||||||||
Totals
|
$ | 434,961 | $ | — | $ | 30,149 | $ | 823 | $ | 465,933 |
(Dollar amounts in thousands)
|
||||||||||||||||||||
Special
|
Sub-
|
Total
|
||||||||||||||||||
Pass
|
mention
|
standard
|
Doubtful
|
loans
|
||||||||||||||||
Commercial & industrial
|
$ | 54,726 | $ | 175 | $ | 6,327 | $ | 265 | $ | 61,493 | ||||||||||
Commercial real estate -construction
|
9,297 | — | 12,113 | — | 21,410 | |||||||||||||||
Residential 1 to 4 family -construction
|
4,611 | — | 1,556 | 6,167 | ||||||||||||||||
Commercial real estate
|
304,869 | 3,913 | 12,668 | — | 321,450 | |||||||||||||||
Real estate 1 to 4 family
|
66,460 | — | 4,734 | 269 | 71,463 | |||||||||||||||
Consumer loans
|
2,689 | — | — | — | 2,689 | |||||||||||||||
Totals
|
$ | 442,652 | $ | 4,088 | $ | 37,398 | $ | 534 | $ | 484,672 |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Commercial
|
Commercial
|
Real estate
|
Real estate
|
|||||||||||||||||||||
& industrial
|
Real Estate
|
Construction
|
1 to 4 family
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for credit losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,289 | $ | 4,365 | $ | 1,536 | $ | 1,460 | $ | 69 | $ | 9,719 | ||||||||||||
Charge-offs
|
(448 | ) | 4 | (100 | ) | — | (2 | ) | (546 | ) | ||||||||||||||
Recoveries
|
10 | 3 | 9 | — | 1 | 23 | ||||||||||||||||||
Provision
|
808 | (635 | ) | 197 | 105 | (25 | ) | 450 | ||||||||||||||||
Ending balance
|
$ | 2,659 | $ | 3,737 | $ | 1,642 | $ | 1,565 | $ | 43 | $ | 9,646 |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Commercial
|
Commercial
|
Real estate
|
Real estate
|
|||||||||||||||||||||
& industrial
|
Real Estate
|
Construction
|
1 to 4 family
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for credit losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,102 | $ | 4,103 | $ | 1,999 | $ | 1,233 | $ | 87 | $ | 9,524 | ||||||||||||
Charge-offs
|
(548 | ) | (521 | ) | (100 | ) | — | (55 | ) | (1,224 | ) | |||||||||||||
Recoveries
|
15 | 3 | 27 | — | 1 | 46 | ||||||||||||||||||
Provision
|
1,090 | 152 | (284 | ) | 332 | 10 | 1,300 | |||||||||||||||||
Ending balance
|
$ | 2,659 | $ | 3,737 | $ | 1,642 | $ | 1,565 | $ | 43 | $ | 9,646 |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 1,506 | $ | 413 | $ | 142 | $ | 212 | $ | — | $ | 2,273 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 1,153 | $ | 3,324 | $ | 1,500 | $ | 1,353 | $ | 43 | $ | 7,373 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Ending balance
|
$ | 44,612 | $ | 305,720 | $ | 31,791 | $ | 81,461 | $ | 2,349 | $ | 465,933 | ||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 8,055 | $ | 8,663 | $ | 7,845 | $ | 3,326 | $ | — | $ | 27,889 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 36,557 | $ | 297,057 | $ | 23,946 | $ | 78,135 | $ | 2,349 | $ | 438,044 |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Commercial
|
Commercial
|
Real estate
|
Real estate
|
|||||||||||||||||||||
& industrial
|
Real Estate
|
Construction
|
1 to 4 family
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for credit losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,750 | $ | 3,560 | $ | 1,458 | $ | 1,236 | $ | 72 | $ | 9,076 | ||||||||||||
Charge-offs
|
(300 | ) | 1 | — | — | (8 | ) | (307 | ) | |||||||||||||||
Recoveries
|
3 | — | 9 | — | 5 | 17 | ||||||||||||||||||
Provision
|
149 | 428 | (272 | ) | 150 | 9 | 464 | |||||||||||||||||
Ending balance
|
$ | 2,602 | $ | 3,989 | $ | 1,195 | $ | 1,386 | $ | 78 | 9,250 |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Commercial
|
Commercial
|
Real estate
|
Real estate
|
|||||||||||||||||||||
& industrial
|
real estate
|
construction
|
1 to 4 family
|
Consumer
|
Total
|
|||||||||||||||||||
Allowance for credit losses
|
||||||||||||||||||||||||
Beginning balance
|
$ | 809 | $ | 5,177 | $ | 3,110 | $ | 704 | $ | 29 | $ | 9,829 | ||||||||||||
Charge-offs
|
(331 | ) | (87 | ) | (1,003 | ) | (217 | ) | (24 | ) | (1,662 | ) | ||||||||||||
Recoveries
|
6 | — | 27 | 14 | 7 | 54 | ||||||||||||||||||
Provision
|
2,118 | (1,101 | ) | (939 | ) | 885 | 66 | 1,029 | ||||||||||||||||
Ending balance
|
$ | 2,602 | $ | 3,989 | $ | 1,195 | $ | 1,386 | $ | 78 | $ | 9,250 |
(Dollar amounts in thousands)
|
||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 830 | $ | 381 | $ | — | $ | 73 | 2 | $ | 1,286 | |||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 1,772 | $ | 3,608 | $ | 1,195 | $ | 1,313 | 76 | $ | 7,964 | |||||||||||||
Loans:
|
||||||||||||||||||||||||
Ending balance
|
$ | 58,698 | $ | 335,218 | $ | 26,849 | $ | 61,884 | 2,363 | $ | 485,012 | |||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 6,704 | $ | 7,030 | $ | 2,274 | $ | 1,640 | 5 | $ | 17,653 | |||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 51,994 | $ | 328,188 | $ | 24,575 | $ | 60,244 | 2,358 | $ | 467,359 |
Fair Value Measurements
|
||||||||||||||||
(Dollar amounts in thousands)
|
at September 30, 2011, Using
|
|||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
||||||||||||||||
Markets
|
Other
|
Significant
|
||||||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||||||
Fair Value
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
Description
|
9/30/2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
U. S. Treasury securities
|
$ | 12,666 | $ | 12,666 | $ | — | $ | — | ||||||||
Obligations of U.S. Government agencies
|
48,864 | — | 48,864 | — | ||||||||||||
Mortgage-backed securities
|
26,432 | — | 26,432 | — | ||||||||||||
Obligations of states and political subdivisions
|
54,168 | — | 54,168 | — | ||||||||||||
Corporate debt
|
10,246 | — | 10,246 | — | ||||||||||||
Total assets measured at fair value
|
$ | 152,376 | $ | 12,666 | $ | 139,710 | $ | — |
Fair Value Measurements
|
||||||||||||||||
(Dollar amounts in thousands)
|
at December 31, 2010, Using
|
|||||||||||||||
Quoted Prices in
|
||||||||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||||||
Fair Value
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
Description
|
12/31/2010
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
U. S. Treasury securities
|
$ | 12,345 | $ | 12,345 | $ | — | $ | — | ||||||||
Obligations of U.S. Government agencies
|
46,114 | — | 46,114 | — | ||||||||||||
Mortgage-backed securities
|
19,068 | — | 19,068 | — | ||||||||||||
Obligations of states and political subdivisions
|
42,456 | — | 42,456 | — | ||||||||||||
Corporate debt
|
6,206 | — | 6,206 | — | ||||||||||||
Total assets measured at fair value
|
$ | 126,189 | $ | 12,345 | $ | 113,844 | $ | — |
Fair Value Measurements
|
||||||||||||||||||||
(Dollar amounts in thousands)
|
at September 30, 2011, Using
|
|||||||||||||||||||
Quoted Prices in
|
||||||||||||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||||||||||
for Identical
|
Observable
|
Unobservable
|
Total
|
|||||||||||||||||
Assets
|
Inputs
|
Inputs
|
gains
|
|||||||||||||||||
Description
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
(losses)
|
|||||||||||||||
Impaired loans *
|
$ | 7,536 | $ | — | $ | — | $ | 7,536 | $ | (115 | ) | |||||||||
Other real estate owned
|
2,023 | — | — | 2,023 | (69 | ) | ||||||||||||||
Total impaired assets measured at fair value
|
$ | 9,559 | $ | — | $ | — | $ | 9,559 | $ | (184 | ) |
Fair Value Measurements
|
||||||||||||||||||||
(Dollar amounts in thousands)
|
at December 31, 2010, Using
|
|||||||||||||||||||
Quoted Prices
|
||||||||||||||||||||
in Active
|
||||||||||||||||||||
Markets
|
Other
|
Significant
|
||||||||||||||||||
for Identical
|
Observable
|
Unobservable
|
Total
|
|||||||||||||||||
Assets
|
Inputs
|
Inputs
|
gains
|
|||||||||||||||||
Description
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
(losses)
|
|||||||||||||||
Impaired loans *
|
$ | 10,471 | $ | — | $ | — | $ | 10,471 | $ | (1,069 | ) | |||||||||
Other real estate owned
|
6,680 | — | — | 6,680 | 552 | |||||||||||||||
Total impaired assets measured at fair value
|
$ | 17,151 | $ | — | $ | — | $ | 17,151 | $ | (517 | ) |
(Dollar amounts in thousands)
|
Carrying
|
Fair
|
||||||
amount
|
value
|
|||||||
Financial assets:
|
||||||||
Cash and cash equivalents
|
$ | 69,273 | $ | 69,273 | ||||
Securities available for sale
|
152,376 | 152,376 | ||||||
Loans, net
|
456,106 | 466,101 | ||||||
Bank owned life insurance
|
9,444 | 9,444 | ||||||
Federal Home Loan Bank stock
|
3,460 | 3,460 | ||||||
Federal Reserve Bank stock
|
1,062 | 1,062 | ||||||
Financial liabilities:
|
||||||||
Deposits
|
631,654 | 632,197 | ||||||
Off-balance-sheet liabilities:
|
||||||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit
|
— | 962 |
(Dollar amounts in thousands)
|
Carrying
|
Fair
|
||||||
amount
|
value
|
|||||||
Financial assets:
|
||||||||
Cash and cash equivalents
|
$ | 60,874 | $ | 60,874 | ||||
Securities available for sale
|
126,189 | 126,189 | ||||||
Loans, net
|
474,828 | 466,007 | ||||||
Bank owned life insurance
|
9,195 | 9,195 | ||||||
Federal Home Loan Bank stock
|
3,939 | 3,939 | ||||||
Federal Reserve Bank stock
|
1,062 | 1,062 | ||||||
Financial liabilities:
|
||||||||
Deposits
|
628,440 | 628,983 | ||||||
Off-balance-sheet liabilities:
|
||||||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit
|
— | 3,603 |
1.
|
The restructuring constitutes a concession.
|
|
2.
|
The debtor is experiencing financial difficulties.
|
TABLE 1
|
NET INTEREST INCOME AND AVERAGE BALANCES
|
|||||||||||||||||||||||
FNB BANCORP AND SUBSIDIARY
|
||||||||||||||||||||||||
Three months ended September 30,
|
||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
(Dollar amounts in thousands)
|
Annualized
|
Annualized
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield
|
Balance
|
Interest
|
Yield
|
|||||||||||||||||||
INTEREST EARNING ASSETS
|
||||||||||||||||||||||||
Loans, gross (1) (2)
|
$ | 470,303 | $ | 7,314 | 6.17 | % | $ | 486,528 | $ | 7,799 | 6.36 | % | ||||||||||||
Taxable securities (3)
|
99,714 | 513 | 2.04 | % | 90,214 | 482 | 2.12 | % | ||||||||||||||||
Nontaxable securities (3)
|
49,724 | 555 | 4.43 | % | 38,294 | 444 | 4.60 | % | ||||||||||||||||
Fed funds sold
|
94 | — | — | 6 | — | — | ||||||||||||||||||
Total interest earning assets
|
619,835 | 8,382 | 5.37 | % | 615,042 | 8,725 | 5.63 | % | ||||||||||||||||
NONINTEREST EARNING ASSETS:
|
||||||||||||||||||||||||
Cash and due
|
64,708 | 72,113 | ||||||||||||||||||||||
Premises
|
13,582 | 11,947 | ||||||||||||||||||||||
Other assets
|
25,958 | 33,039 | ||||||||||||||||||||||
Total noninterest earning assets
|
104,248 | 117,099 | ||||||||||||||||||||||
TOTAL ASSETS
|
$ | 724,083 | $ | 732,141 | ||||||||||||||||||||
Demand, int bearing
|
$ | 61,107 | 31 | 0.20 | % | $ | 63,064 | 41 | 0.26 | % | ||||||||||||||
Money market
|
273,284 | 552 | 0.80 | % | 273,334 | 728 | 1.06 | % | ||||||||||||||||
Savings
|
48,143 | 28 | 0.23 | % | 44,342 | 28 | 0.25 | % | ||||||||||||||||
Time deposits
|
106,968 | 231 | 0.86 | % | 123,411 | 357 | 1.15 | % | ||||||||||||||||
FHLB advances (5)
|
— | — | — | 6,739 | 184 | 10.83 | % | |||||||||||||||||
Total interest bearing liabilities
|
489,502 | 842 | 0.68 | % | 510,890 | 1,338 | 1.04 | % | ||||||||||||||||
NONINTEREST BEARING LIABILITIES:
|
||||||||||||||||||||||||
Demand deposits
|
141,237 | 130,773 | ||||||||||||||||||||||
Other liabilities
|
8,770 | 8,933 | ||||||||||||||||||||||
Total noninterest bearing liabilities
|
150,007 | 139,706 | ||||||||||||||||||||||
TOTAL LIABILITIES
|
639,509 | 650,596 | ||||||||||||||||||||||
Stockholders’ equity
|
84,574 | 81,545 | ||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 724,083 | $ | 732,141 | ||||||||||||||||||||
NET INTEREST INCOME AND MARGIN ON TOTAL EARNING ASSETS (4)
|
$ | 7,540 | 4.83 | % | $ | 7,387 | 4.77 | % |
TABLE 2 |
NET INTEREST INCOME AND AVERAGE BALANCES
|
|||||||||||||||||||||||
FNB BANCORP AND SUBSIDIARY
|
||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
(Dollar amounts in thousands)
|
Annualized
|
Annualized
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield
|
Balance
|
Interest
|
Yield
|
|||||||||||||||||||
INTEREST EARNING ASSETS
|
||||||||||||||||||||||||
Loans, gross (1) (2)
|
$ | 474,265 | $ | 22,159 | 6.25 | % | $ | 493,984 | $ | 23,735 | 6.42 | % | ||||||||||||
Taxable securities (3)
|
91,782 | 1,379 | 2.01 | % | 86,261 | 1,423 | 2.21 | % | ||||||||||||||||
Nontaxable securities (3)
|
46,772 | 1,586 | 4.53 | % | 33,220 | 1,158 | 4.66 | % | ||||||||||||||||
Fed funds sold
|
41 | — | — | 2 | — | — | ||||||||||||||||||
Total interest earning assets
|
612,860 | 25,124 | 5.48 | % | 613,467 | 26,316 | 5.74 | % | ||||||||||||||||
NONINTEREST EARNING ASSETS:
|
||||||||||||||||||||||||
Cash and due
|
61,016 | 69,777 | ||||||||||||||||||||||
Premises
|
13,558 | 11,852 | ||||||||||||||||||||||
Other assets
|
28,634 | 34,089 | ||||||||||||||||||||||
Total noninterest earning assets
|
103,208 | 115,718 | ||||||||||||||||||||||
TOTAL ASSETS
|
$ | 716,068 | $ | 729,185 | ||||||||||||||||||||
Demand, int bearing
|
$ | 61,334 | 101 | 0.22 | % | $ | 61,038 | 137 | 0.30 | % | ||||||||||||||
Money market
|
265,057 | 1,633 | 0.82 | % | 270,825 | 2,407 | 1.19 | % | ||||||||||||||||
Savings
|
46,716 | 85 | 0.24 | % | 43,256 | 82 | 0.25 | % | ||||||||||||||||
Time deposits
|
112,878 | 764 | 0.90 | % | 123,970 | 1,191 | 1.28 | % | ||||||||||||||||
FHLB advances
|
— | — | — | 15,476 | 551 | 4.76 | % | |||||||||||||||||
Fed funds purchased
|
— | — | — | 4 | — | — | ||||||||||||||||||
Tot interest bearing liabilities
|
485,985 | 2,583 | 0.71 | % | 514,569 | 4,368 | 1.13 | % | ||||||||||||||||
NONINTEREST BEARING LIABILITIES:
|
||||||||||||||||||||||||
Demand deposits
|
139,241 | 126,344 | ||||||||||||||||||||||
Other liabilities
|
7,970 | 7,974 | ||||||||||||||||||||||
Total noninterest bearing liabilities
|
147,211 | 134,318 | ||||||||||||||||||||||
TOTAL LIABILITIES
|
633,196 | 648,887 | ||||||||||||||||||||||
Stockholders’ equity
|
82,872 | 80,298 | ||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 716,068 | $ | 729,185 | ||||||||||||||||||||
NET INTEREST INCOME AND MARGIN ON TOTAL EARNING ASSETS (4)
|
$ | 22,541 | 4.92 | % | $ | 21,948 | 4.78 | % |
Table 3
|
FNB BANCORP AND SUBSIDIARY
|
|||||||||||
RATE/VOLUME VARIANCE ANALYSIS | ||||||||||||
Three Months Ended September 30,
|
||||||||||||
(Dollar amounts in thousands)
|
2011 Compared to 2010
|
|||||||||||
Variance | ||||||||||||
Interest
|
Attributable to | |||||||||||
Income/Expense
|
Rate
|
Volume
|
||||||||||
INTEREST EARNING ASSETS
|
||||||||||||
Loans
|
$ | (485 | ) | $ | (233 | ) | $ | (252 | ) | |||
Taxable securities
|
31 | (18 | ) | 49 | ||||||||
Nontaxable securities (1)
|
111 | (17 | ) | 128 | ||||||||
Total
|
$ | (343 | ) | $ | (268 | ) | $ | (75 | ) | |||
INTEREST BEARING LIABILITIES
|
||||||||||||
Demand deposits
|
$ | 10 | $ | 9 | $ | 1 | ||||||
Money market
|
176 | 176 | 0 | |||||||||
Savings deposits
|
0 | 2 | (2 | ) | ||||||||
Time deposits
|
126 | 78 | 48 | |||||||||
Federal Home Loan Bank advances
|
184 | — | 184 | |||||||||
Total
|
$ | 496 | $ | 265 | $ | 231 | ||||||
NET INTEREST INCOME
|
$ | 153 | $ | (3 | ) | $ | 156 |
|
(1)
|
Includes tax equivalent adjustment of $141,000 and $109,000 in the three months ended September 30, 2011 and September 30, 2010, respectively.
|
Table 4
|
FNB BANCORP AND SUBSIDIARY
|
|||||||||||
RATE/VOLUME VARIANCE ANALYSIS
|
||||||||||||
Nine Months Ended September 30,
|
||||||||||||
(Dollar amounts in thousands)
|
2011 Compared to 2010
|
|||||||||||
Variance | ||||||||||||
Interest
|
Attributable to | |||||||||||
Income/Expense
|
Rate
|
Volume
|
||||||||||
INTEREST EARNING ASSETS
|
||||||||||||
Loans
|
$ | (1,576 | ) | $ | (629 | ) | $ | (947 | ) | |||
Taxable securities
|
(44 | ) | (135 | ) | 91 | |||||||
Nontaxable securities (1)
|
428 | (31 | ) | 459 | ||||||||
Total
|
$ | (1,192 | ) | $ | (795 | ) | $ | (397 | ) | |||
INTEREST BEARING LIABILITIES
|
||||||||||||
Demand deposits
|
$ | 36 | $ | 37 | $ | (1 | ) | |||||
Money market
|
774 | 723 | 51 | |||||||||
Savings deposits
|
(3 | ) | 3 | (6 | ) | |||||||
Time deposits
|
427 | 320 | 107 | |||||||||
Federal Home Loan Bank advances
|
551 | — | 551 | |||||||||
Total
|
$ | 1,785 | $ | 1,083 | $ | 702 | ||||||
NET INTEREST INCOME
|
$ | 593 | $ | 288 | $ | 305 |
|
(1)
|
Includes tax equivalent adjustment of $394,000 and $284,000 in the nine months ended September 30, 2011 and September 30, 2010, respectively.
|
Table 5
|
NONINTEREST INCOME
|
|||||||||||||||
Three months
|
||||||||||||||||
ended September 30,
|
Variance
|
|||||||||||||||
(Dollar amounts in thousands)
|
2011
|
2010
|
Amount
|
Percent
|
||||||||||||
Service charges
|
$ | 817 | $ | 686 | $ | 131 | 19.1 | % | ||||||||
Credit card fees
|
197 | 159 | 38 | 23.9 | % | |||||||||||
Gain on sale of available-for-sale of securities
|
168 | 330 | (162 | ) | -49.1 | % | ||||||||||
Bank owned life insurance policy earnings
|
83 | 87 | (4 | ) | -4.6 | % | ||||||||||
Other income
|
102 | 73 | 29 | 39.7 | % | |||||||||||
Total noninterest income
|
$ | 1,367 | $ | 1,335 | $ | 32 | 2.4 | % |
Nine months
|
||||||||||||||||
ended September 30,
|
Variance
|
|||||||||||||||
(Dollars in thousands)
|
2011
|
2010
|
Amount
|
Percent
|
||||||||||||
Service charges
|
$ | 2,325 | $ | 2,045 | $ | 280 | 13.7 | % | ||||||||
Credit card fees
|
525 | 473 | 52 | 11.0 | % | |||||||||||
Gain on sale of available-for-sale securities
|
318 | 492 | (174 | ) | -35.4 | % | ||||||||||
Bank owned life insurance policy earnings
|
248 | 246 | 2 | 0.8 | % | |||||||||||
Other income
|
353 | 181 | 172 | 95.0 | % | |||||||||||
Total noninterest income
|
$ | 3,769 | $ | 3,437 | $ | 332 | 9.7 | % |
Table 6
|
NONINTEREST EXPENSE
|
|||||||||||||||
Three months
|
||||||||||||||||
ended September 30,
|
Variance
|
|||||||||||||||
(Dollar amounts in thousands)
|
2011
|
2010
|
Amount
|
Percent
|
||||||||||||
Salaries and employee benefits
|
$ | 3,413 | $ | 3,418 | $ | (5 | ) | -0.1 | % | |||||||
Occupancy expense
|
593 | 515 | 78 | 15.1 | % | |||||||||||
Equipment expense
|
433 | 472 | (39 | ) | -8.3 | % | ||||||||||
Professional fees
|
449 | 372 | 77 | 20.7 | % | |||||||||||
FDIC assessment
|
240 | 363 | (123 | ) | -33.9 | % | ||||||||||
Telephone, postage & supplies
|
253 | 271 | (18 | ) | -6.6 | % | ||||||||||
Operating losses
|
310 | 19 | 291 | 1531.6 | % | |||||||||||
Other real estate owned expense
|
55 | 207 | (152 | ) | -73.4 | % | ||||||||||
Bankcard expenses
|
181 | 147 | 34 | 23.1 | % | |||||||||||
Low income housing expenses
|
69 | 69 | 0 | 0.0 | % | |||||||||||
Loss on sale of other real estate owned
|
— | 30 | (30 | ) | -100.0 | % | ||||||||||
Loss on impairment of other real estate owned
|
69 | 85 | (16 | ) | -18.8 | % | ||||||||||
Other expense
|
718 | 730 | (12 | ) | -1.6 | % | ||||||||||
Total noninterest expense
|
$ | 6,783 | $ | 6,698 | $ | 85 | 1.3 | % |
NONINTEREST EXPENSE
|
||||||||||||||||
Nine months
|
||||||||||||||||
ended September 30,
|
Variance
|
|||||||||||||||
(Dollars in thousands)
|
2011
|
2010
|
Amount
|
Percent
|
||||||||||||
Salaries and employee benefits
|
$ | 10,322 | $ | 10,399 | $ | (77 | ) | -0.7 | % | |||||||
Occupancy expense
|
1,734 | 1,532 | 202 | 13.2 | % | |||||||||||
Equipment expense
|
1,258 | 1,495 | (237 | ) | -15.9 | % | ||||||||||
Professional fees
|
1,206 | 951 | 255 | 26.8 | % | |||||||||||
FDIC assessment
|
915 | 986 | (71 | ) | -7.2 | % | ||||||||||
Telephone, postage & supplies
|
864 | 816 | 48 | 5.9 | % | |||||||||||
Operating losses
|
547 | 52 | 495 | 951.9 | % | |||||||||||
Other real estate owned expense
|
316 | 819 | (503 | ) | -61.4 | % | ||||||||||
Bankcard expenses
|
482 | 436 | 46 | 10.6 | % | |||||||||||
Low income housing expenses
|
208 | 208 | 0 | 0.0 | % | |||||||||||
Loss (gain) on sale of other real estate owned
|
(66 | ) | 5 | (71 | ) | -1420.0 | % | |||||||||
Loss on impairment of other real estate owned
|
299 | 732 | (433 | ) | -59.2 | % | ||||||||||
Other expense
|
2,218 | 2,018 | 200 | 9.9 | % | |||||||||||
Total noninterest expense
|
$ | 20,303 | $ | 20,449 | $ | (146 | ) | -0.7 | % |
TABLE 7
|
LOAN PORTFOLIO | |||||||||||||
September 30
|
|
December 31
|
||||||||||||
(Dollar amounts in thousands)
|
2011
|
Percent
|
2010
|
Percent
|
||||||||||
Commercial real estate
|
$ | 268,455 | 58 | % | $ | 278,866 | 56 | % | ||||||
Real estate construction
|
31,791 | 7 | % | 27,577 | 6 | % | ||||||||
Real estate multi-family
|
37,265 | 8 | % | 42,584 | 9 | % | ||||||||
Real estate 1 to 4 family
|
81,461 | 17 | % | 71,463 | 15 | % | ||||||||
Commercial & industrial
|
44,612 | 10 | % | 61,493 | 13 | % | ||||||||
Consumer loans
|
2,349 | 1 | % | 2,689 | 1 | % | ||||||||
Gross loans
|
465,933 | 100 | % | 484,672 | 100 | % | ||||||||
Net deferred loan fees
|
(181 | ) | (320 | ) | ||||||||||
Total
|
$ | 465,752 | $ | 484,352 |
TABLE 8
|
ALLOWANCE FOR LOAN LOSSES
|
|||||||
Nine months ended
|
||||||||
September 30,
|
||||||||
(Dollar amounts in thousands)
|
2011
|
2010
|
||||||
Balance, beginning of period
|
$ | 9,524 | $ | 9,829 | ||||
Provision for loan losses
|
1,300 | 1,029 | ||||||
Recoveries
|
46 | 54 | ||||||
Amounts charged off
|
(1,224 | ) | (1,662 | ) | ||||
Balance, end of period
|
$ | 9,646 | $ | 9,250 |
TABLE 9 | ||||||||||||
(Dollar amounts in thousands)
|
Under
|
$100,000 | ||||||||||
Maturities
|
$100,000 |
or more
|
Total
|
|||||||||
Three months or less
|
$ | 11,202 | $ | 30,249 | $ | 41,451 | ||||||
Over three through six months
|
8,004 | 11,177 | 19,181 | |||||||||
Over six through twelve months
|
10,950 | 10,904 | 21,854 | |||||||||
Over twelve months
|
10,490 | 12,534 | 23,024 | |||||||||
Total
|
$ | 40,646 | $ | 64,864 | $ | 105,510 |
TABLE 10
|
Minimum “Well
|
|||||||||
September 30,
|
December 31,
|
Capitalized”
|
||||||||
Regulatory Capital Ratios
|
2011
|
2010
|
Requirements
|
|||||||
Total Regulatory Capital Ratio
|
15.93 | % | 14.85 | % |
≥
|
10.00 | % | |||
Tier 1 Capital
|
14.68 | % | 13.60 | % |
≥
|
6.00 | % | |||
Leverage Ratios
|
11.02 | % | 10.46 | % |
≥
|
5.00 | % |
Exhibits
|
|
31: Rule 13a-14(a)/15d-14(a) Certifications
|
|
32: Section 1350 Certifications
|
FNB BANCORP | |||
(Registrant) | |||
Dated: November 10, 2011
|
|||
By:
|
/s/ Thomas C. McGraw | ||
Thomas C. McGraw
|
|||
Chief Executive Officer
|
|||
(Authorized Officer)
|
|||
By:
|
/s/ David A. Curtis | ||
David A. Curtis
|
|||
Senior Vice President
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
Date: November 10, 2011.
|
/s/ Thomas C. McGraw | |
|
Thomas C. McGraw,
|
|
Chief Executive Officer
|
Date: November 10, 2011.
|
||
/s/ David A. Curtis | ||
David A. Curtis,
|
||
Senior Vice President and Chief Financial Officer
|
1.
|
The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
2.
|
Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: November 10, 2011.
|
/s/ Thomas C. McGraw
|
|
Thomas C. McGraw
|
||
Chief Executive Officer
|
||
Dated: November 10, 2011.
|
/s/ David A. Curtis
|
|
David A. Curtis
|
||
Senior Vice President and Chief Financial Officer
|