Jacksonville Bancorp, Inc. |
(Exact name of registrant as specified in its charter) |
Maryland | 36-4670835 |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification Number) |
1211 West Morton Avenue
Jacksonville, Illinois
|
62650 |
(Address of principal executive office) | (Zip Code) |
JACKSONVILLE BANCORP, INC.
|
FORM 10-Q
|
March 31, 2011
|
TABLE OF CONTENTS
|
Page
|
|||
PART I
|
FINANCIAL INFORMATION
|
||
Item 1.
|
Financial Statements
|
||
Condensed Consolidated Balance Sheets
|
1
|
||
Condensed Consolidated Statements of Income
|
2
|
||
Condensed Consolidated Statement of Stockholders’ Equity
|
3
|
||
Condensed Consolidated Statements of Cash Flows
|
4-5
|
||
Notes to the Condensed Consolidated Financial Statements
|
6-30
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
31-41
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
42-43
|
|
Item 4.
|
Controls and Procedures
|
44
|
|
PART II
|
OTHER INFORMATION
|
45
|
|
Item 1.
|
Legal Proceedings
|
45 | |
Item 1.A.
|
Risk Factors
|
45 | |
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
45 | |
Item 3.
|
Defaults Upon Senior Securities
|
45 | |
Item 4.
|
Removed and Reserved
|
45 | |
Item 5.
|
Other Information
|
45 | |
Item 6.
|
Exhibits
|
45 | |
Signatures
|
46
|
||
EXHIBITS
|
|||
Section 302 Certifications
|
|||
Section 906 Certification
|
JACKSONVILLE BANCORP, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
March 31,
|
December 31,
|
|||||||
|
2011
|
2010
|
||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 10,556,677 | $ | 8,943,400 | ||||
Investment securities - available for sale
|
57,364,188 | 52,871,871 | ||||||
Mortgage-backed securities - available for sale
|
44,443,253 | 41,994,850 | ||||||
Federal Home Loan Bank stock
|
1,113,800 | 1,113,800 | ||||||
Other investment securities
|
127,958 | 130,049 | ||||||
Loans receivable - net of allowance for loan losses of $2,879,250 and $2,964,285 as of March 31, 2011 and December 31, 2010
|
173,996,907 | 176,442,118 | ||||||
Loans held for sale - net
|
480,400 | 280,000 | ||||||
Premises and equipment - net
|
5,703,622 | 5,659,074 | ||||||
Cash surrender value of life insurance
|
4,282,417 | 4,238,915 | ||||||
Accrued interest receivable
|
1,985,042 | 1,872,779 | ||||||
Goodwill
|
2,726,567 | 2,726,567 | ||||||
Capitalized mortgage servicing rights, net of valuation allowance of $153,594 and $163,989 as of March 31, 2011 and December 31, 2010
|
783,292 | 797,327 | ||||||
Real estate owned
|
624,432 | 459,877 | ||||||
Deferred income taxes
|
1,469,369 | 1,620,994 | ||||||
Other assets
|
2,158,839 | 2,329,232 | ||||||
Total Assets
|
$ | 307,816,763 | $ | 301,480,853 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Deposits
|
$ | 261,121,840 | $ | 256,423,647 | ||||
Other borrowings
|
4,049,703 | 4,018,235 | ||||||
Advance payments by borrowers for taxes and insurance
|
961,436 | 629,788 | ||||||
Accrued interest payable
|
483,058 | 556,257 | ||||||
Deferred compensation payable
|
3,100,545 | 3,060,637 | ||||||
Income taxes payable
|
336,349 | 122,934 | ||||||
Other liabilities
|
1,192,472 | 991,205 | ||||||
Total liabilities
|
271,245,403 | 265,802,703 | ||||||
Commitments and contingencies
|
- | - | ||||||
Preferred stock, $0.01 par value - authorized 10,000,000 shares; none issued and outstanding
|
- | - | ||||||
Common stock, $0.01 par value - authorized 25,000,000 shares; issued 1,926,942 shares as of March 31, 2011 and 1,923,689 shares as of December 31, 2010, respectively
|
19,269 | 19,237 | ||||||
Additional paid-in-capital
|
16,163,353 | 16,159,960 | ||||||
Retained earnings
|
20,635,358 | 20,045,095 | ||||||
Less: Unallocated ESOP shares
|
(390,150 | ) | (395,340 | ) | ||||
Accumulated other comprehensive income (loss)
|
143,530 | (150,802 | ) | |||||
Total stockholders’ equity
|
36,571,360 | 35,678,150 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 307,816,763 | $ | 301,480,853 |
JACKSONVILLE BANCORP, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
INTEREST INCOME:
|
||||||||
Loans
|
$ | 2,655,406 | $ | 2,671,261 | ||||
Investment securities
|
485,898 | 399,634 | ||||||
Mortgage-backed securities
|
279,763 | 160,878 | ||||||
Other
|
1,700 | 2,449 | ||||||
Total interest income
|
3,422,767 | 3,234,222 | ||||||
INTEREST EXPENSE:
|
||||||||
Deposits
|
800,089 | 1,052,574 | ||||||
Other borrowings
|
4,628 | 2,180 | ||||||
Total interest expense
|
804,717 | 1,054,754 | ||||||
NET INTEREST INCOME
|
2,618,050 | 2,179,468 | ||||||
PROVISION FOR LOAN LOSSES
|
175,000 | 275,000 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
2,443,050 | 1,904,468 | ||||||
NON-INTEREST INCOME:
|
||||||||
Fiduciary activities
|
60,019 | 42,421 | ||||||
Commission income
|
412,740 | 260,943 | ||||||
Service charges on deposit accounts
|
219,164 | 231,219 | ||||||
Mortgage banking operations, net
|
7,888 | 48,503 | ||||||
Net realized gains on sales of available-for-sale securities
|
53,505 | 140,028 | ||||||
Loan servicing fees
|
94,362 | 92,608 | ||||||
Other
|
137,084 | 135,408 | ||||||
Total non-interest income
|
984,762 | 951,130 | ||||||
NON-INTEREST EXPENSE:
|
||||||||
Salaries and employee benefits
|
1,529,118 | 1,389,110 | ||||||
Occupancy and equipment
|
239,240 | 260,035 | ||||||
Data processing and telecommunications
|
146,426 | 117,075 | ||||||
Professional
|
50,381 | 37,065 | ||||||
Marketing
|
21,319 | 28,144 | ||||||
Postage and office supplies
|
77,260 | 68,634 | ||||||
Deposit insurance premium
|
96,626 | 103,030 | ||||||
Other
|
269,288 | 244,530 | ||||||
Total non-interest expense
|
2,429,658 | 2,247,623 | ||||||
INCOME BEFORE INCOME TAXES
|
998,154 | 607,975 | ||||||
INCOME TAXES
|
263,415 | 109,118 | ||||||
NET INCOME
|
$ | 734,739 | $ | 498,857 | ||||
NET INCOME PER COMMON SHARE - BASIC
|
$ | 0.39 | $ | 0.26 | ||||
NET INCOME PER COMMON SHARE - DILUTED
|
$ | 0.39 | $ | 0.26 |
JACKSONVILLE BANCORP, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
|
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||||||
Common
|
Paid-in
|
Unallocated
|
Retained
|
Comprehensive
|
Stockholders’
|
Comprehensive
|
||||||||||||||||||||||
(Unaudited)
|
Stock
|
Capital
|
ESOP Shares
|
Earnings
|
Income (Loss)
|
Equity
|
Income
|
|||||||||||||||||||||
BALANCE, DECEMBER 31, 2010
|
$ | 19,237 | $ | 16,159,960 | $ | (395,340 | ) | $ | 20,045,095 | $ | (150,802 | ) | $ | 35,678,150 | ||||||||||||||
Net Income
|
- | - | - | 734,739 | - | 734,739 | $ | 734,739 | ||||||||||||||||||||
Other comprehensive income - change in net unrealized gains(losses) on securities available-for-sale, net of taxes of $133,434
|
- | - | - | - | 259,019 | 259,019 | 259,019 | |||||||||||||||||||||
Less: reclassification adjustment for gains included in net income, net of tax of $18,192
|
- | - | - | - | 35,313 | 35,313 | 35,313 | |||||||||||||||||||||
Comprehensive Income
|
$ | 1,029,071 | ||||||||||||||||||||||||||
Exercise of stock options
|
154 | 151,072 | - | - | - | 151,226 | ||||||||||||||||||||||
Tax benefit related to stock options exercised
|
- | 2,815 | - | - | - | 2,815 | ||||||||||||||||||||||
Purchase and retirement of common stock
|
(122 | ) | (151,866 | ) | - | - | - | (151,988 | ) | |||||||||||||||||||
Shares held by ESOP, commited to be released
|
- | 1,372 | 5,190 | - | - | 6,562 | ||||||||||||||||||||||
Dividends ($0.075 per share)
|
- | - | - | (144,476 | ) | - | (144,476 | ) | ||||||||||||||||||||
BALANCE, MARCH 31, 2011
|
$ | 19,269 | $ | 16,163,353 | $ | (390,150 | ) | $ | 20,635,358 | $ | 143,530 | $ | 36,571,360 |
JACKSONVILLE BANCORP, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 734,739 | $ | 498,857 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation, amortization and accretion:
|
||||||||
Premises and equipment
|
75,686 | 92,980 | ||||||
Amortization of investment and loan premiums and discounts, net
|
148,459 | 316,339 | ||||||
Net realized gains on sales of available-for-sale securities
|
(53,505 | ) | (140,028 | ) | ||||
Provision for loan losses
|
175,000 | 275,000 | ||||||
Mortgage banking operations, net
|
(7,888 | ) | (48,503 | ) | ||||
Loss (gain) on sale of real estate owned
|
(21,059 | ) | 3,304 | |||||
Shares held by ESOP committed to be released
|
6,562 | - | ||||||
Changes in income taxes payable
|
213,415 | 93,412 | ||||||
Changes in assets and liabilities
|
182,604 | (41,789 | ) | |||||
Net cash provided by operations before loan sales
|
1,454,013 | 1,049,572 | ||||||
Origination of loans for sale to secondary market
|
(2,987,479 | ) | (4,178,138 | ) | ||||
Proceeds from sales of loans to secondary market
|
2,809,002 | 4,893,011 | ||||||
Net cash provided by operating activities
|
1,275,536 | 1,764,445 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases of investment and mortgage-backed securities
|
(19,184,356 | ) | (25,500,252 | ) | ||||
Maturity or call of investment securities available-for-sale
|
4,250,000 | 3,500,000 | ||||||
Sale of investment securities available-for-sale
|
6,281,988 | 12,555,212 | ||||||
Principal payments on mortgage-backed and investment securities
|
2,063,293 | 4,082,547 | ||||||
Proceeds from sale of real estate owned
|
167,216 | 94,386 | ||||||
Net decrease in loans
|
1,960,948 | 2,395,918 | ||||||
Additions to premises and equipment
|
(120,234 | ) | (2,952 | ) | ||||
Net cash (used in) investing activities
|
(4,581,145 | ) | (2,875,141 | ) | ||||
(Continued)
|
JACKSONVILLE BANCORP, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net increase in deposits
|
$ | 4,698,193 | $ | 438,242 | ||||
Net increase (decrease) in other borrowings
|
31,468 | (509,134 | ) | |||||
Increase in advance payments by borrowers for taxes and insurance
|
331,648 | 343,687 | ||||||
Exercise of stock options
|
151,226 | - | ||||||
Purchase and retirement of treasury stock related to stock options
|
(151,988 | ) | - | |||||
Tax benefit of nonqualified stock options
|
2,815 | - | ||||||
Dividends paid - common stock
|
(144,476 | ) | (66,156 | ) | ||||
Net cash provided by financing activities
|
4,918,886 | 206,639 | ||||||
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS
|
1,613,277 | (904,057 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
8,943,400 | 15,696,474 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 10,556,677 | $ | 14,792,417 | ||||
ADDITIONAL DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest on deposits
|
$ | 873,288 | $ | 1,113,398 | ||||
Interest on other borrowings
|
4,628 | 5,180 | ||||||
Income taxes paid
|
50,000 | - | ||||||
NONCASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Real estate acquired in settlement of loans
|
$ | 384,046 | $ | 343,483 | ||||
Loans to facilitate sales of real estate owned
|
73,334 | - |
JACKSONVILLE BANCORP, INC.
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
1.
|
FINANCIAL STATEMENTS
|
2.
|
SECOND STEP CONVERSION
|
3.
|
NEW ACCOUNTING PRONOUNCEMENTS
|
4.
|
EARNINGS PER SHARE
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Net income
|
$ | 734,739 | $ | 498,857 | ||||
Basic average shares outstanding
|
1,885,601 | 1,920,817 | ||||||
|
||||||||
Diluted potential common shares:
|
||||||||
Stock option equivalents
|
2,151 | 3,559 | ||||||
Diluted average shares outstanding
|
1,887,752 | 1,924,376 | ||||||
Basic earnings per share
|
$ | 0.39 | $ | 0.26 | ||||
Diluted earnings per share
|
$ | 0.39 | $ | 0.26 |
5.
|
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)
|
March 31, 2011
|
||||
Unearned shares
|
39,015 | |||
Shares committed for release
|
2,599 | |||
Allocated shares
|
49,398 | |||
Total ESOP shares
|
91,012 | |||
Fair value of unearned shares
|
$ | 495,491 | ||
6.
|
LOAN PORTFOLIO COMPOSITION
|
March 31, 2011
|
December 31, 2010
|
|||||||
Mortgage loans on real estate
|
||||||||
One-to-four family residential
|
$ | 37,782,788 | $ | 37,227,211 | ||||
Commercial
|
44,049,716 | 45,361,944 | ||||||
Agricultural
|
29,607,376 | 28,163,488 | ||||||
Home equity
|
18,764,445 | 19,526,162 | ||||||
Total mortgage loans on real estate
|
130,204,325 | 130,278,805 | ||||||
Commercial business
|
22,573,869 | 22,810,203 | ||||||
Agricultural business
|
7,844,104 | 8,176,396 | ||||||
Consumer
|
16,292,900 | 18,190,307 | ||||||
176,915,198 | 179,455,711 | |||||||
Less
|
||||||||
Net deferred loan fees
|
39,041 | 49,307 | ||||||
Allowance for loan losses
|
2,879,250 | 2,964,285 | ||||||
Net loans
|
$ | 173,996,907 | $ | 176,442,119 |
March 31, 2011
|
||||||||||||||||||||||||||||||||||||
1-4 Family
|
Commercial Real Estate
|
Agricultural Real Estate
|
Commercial
|
Agricultural
|
Home Equity
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 561,309 | $ | 1,193,928 | $ | 92,988 | $ | 472,376 | $ | 58,250 | $ | 300,257 | $ | 163,690 | $ | 121,487 | $ | 2,964,285 | ||||||||||||||||||
Provision charged to expense
|
(39,577 | ) | 152,268 | 11,879 | 33,741 | 82,794 | (32,302 | ) | (41,922 | ) | 8,119 | 175,000 | ||||||||||||||||||||||||
Losses charged off
|
(7,402 | ) | (260,785 | ) | — | — | — | (4,162 | ) | (1,097 | ) | — | (273,446 | ) | ||||||||||||||||||||||
Recoveries
|
— | 8,142 | — | 200 | — | 3,867 | 1,202 | — | 13,411 | |||||||||||||||||||||||||||
Balance, end of period
|
$ | 514,330 | $ | 1,093,553 | $ | 104,867 | $ | 506,317 | $ | 141,044 | $ | 267,660 | $ | 121,873 | $ | 129,606 | $ | 2,879,250 | ||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 67,118 | $ | 216,320 | $ | — | $ | 99,632 | $ | — | $ | — | $ | — | $ | — | $ | 383,070 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 447,212 | $ | 877,233 | $ | 104,867 | $ | 406,685 | $ | 141,044 | $ | 267,660 | $ | 121,873 | $ | 129,606 | $ | 2,496,180 | ||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||||
Ending balance
|
$ | 37,782,788 | $ | 44,049,716 | $ | 29,607,376 | $ | 22,573,869 | $ | 7,844,104 | $ | 18,764,445 | $ | 16,292,900 | $ | — | $ | 176,915,198 | ||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 643,002 | $ | 1,741,709 | $ | — | $ | 585,106 | $ | — | $ | — | $ | — | $ | — | $ | 2,969,817 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 37,139,786 | $ | 42,308,007 | $ | 29,607,376 | $ | 21,988,763 | $ | 7,844,104 | $ | 18,764,445 | $ | 16,292,900 | $ | — | $ | 173,945,381 | ||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
December 31, 2010
|
||||||||||||||||||||||||||||||||||||
1-4 Family
|
Commercial Real Estate
|
Agricultural Real Estate
|
Commercial
|
Agricultural
|
Home Equity
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance, beginning of year
|
$ | 391,762 | $ | 738,996 | $ | 73,257 | $ | 631,347 | $ | 21,242 | $ | 249,312 | $ | 88,044 | $ | 96,041 | $ | 2,290,001 | ||||||||||||||||||
Provision charged to expense
|
246,401 | 1,217,072 | 19,731 | (21,371 | ) | 37,008 | 126,477 | 74,236 | 25,446 | 1,725,000 | ||||||||||||||||||||||||||
Losses charged off
|
(98,245 | ) | (787,191 | ) | — | (144,100 | ) | — | (88,106 | ) | (11,070 | ) | — | (1,128,712 | ) | |||||||||||||||||||||
Recoveries
|
21,391 | 25,051 | — | 6,500 | — | 12,574 | 12,480 | — | 77,996 | |||||||||||||||||||||||||||
Balance, end of year
|
$ | 561,309 | $ | 1,193,928 | $ | 92,988 | $ | 472,376 | $ | 58,250 | $ | 300,257 | $ | 163,690 | $ | 121,487 | $ | 2,964,285 | ||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 89,795 | $ | 428,514 | $ | — | $ | 72,393 | $ | — | $ | — | $ | — | $ | — | $ | 590,702 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 471,514 | $ | 765,414 | $ | 92,988 | $ | 399,983 | $ | 58,250 | $ | 300,257 | $ | 163,690 | $ | 121,487 | $ | 2,373,583 | ||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||||
Ending balance
|
$ | 37,227,211 | $ | 45,361,944 | $ | 28,163,488 | $ | 22,810,203 | $ | 8,176,396 | $ | 19,526,162 | $ | 18,190,307 | $ | — | $ | 179,455,711 | ||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 369,749 | $ | 2,220,562 | $ | — | $ | 606,273 | $ | — | $ | — | $ | — | $ | — | $ | 3,196,584 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 36,857,462 | $ | 43,141,382 | $ | 28,163,488 | $ | 22,203,930 | $ | 8,176,396 | $ | 19,526,162 | $ | 18,190,307 | $ | — | $ | 176,259,127 | ||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
1-4 Family
|
Commercial Real Estate
|
Agricultural Real Estate
|
Commercial Business
|
Agricultural Business
|
||||||||||||||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
March 31, 2011
|
December 31, 2010
|
March 31, 2011
|
December 31, 2010
|
March 31, 2011
|
December 31, 2010
|
March 31, 2011
|
December 31, 2010
|
|||||||||||||||||||||||||||||||
Pass
|
$ | 34,943,815 | $ | 34,258,180 | $ | 40,824,334 | $ | 41,534,866 | $ | 29,170,869 | $ | 27,768,600 | $ | 21,288,780 | $ | 21,621,978 | $ | 6,910,691 | $ | 7,818,536 | ||||||||||||||||||||
Special Mention
|
1,444,505 | 1,476,077 | 775,676 | 733,561 | 436,507 | 394,888 | 198,755 | 186,598 | 933,413 | 357,860 | ||||||||||||||||||||||||||||||
Substandard
|
1,394,468 | 1,492,954 | 2,449,706 | 3,093,517 | — | — | 1,086,334 | 1,001,627 | — | — | ||||||||||||||||||||||||||||||
Total
|
$ | 37,782,788 | $ | 37,227,211 | $ | 44,049,716 | $ | 45,361,944 | $ | 29,607,376 | $ | 28,163,488 | $ | 22,573,869 | $ | 22,810,203 | $ | 7,844,104 | $ | 8,176,396 |
Home Equity
|
Consumer
|
|||||||||||||||
March 31, 2011
|
December 31, 2010
|
March 31, 2011
|
December 31, 2010
|
|||||||||||||
Rating:
|
||||||||||||||||
Pass
|
$ | 17,528,691 | $ | 18,064,116 | $ | 15,970,904 | $ | 17,471,747 | ||||||||
Special Mention
|
222,550 | 223,034 | 217,825 | 570,589 | ||||||||||||
Substandard
|
1,013,204 | 1,239,012 | 104,171 | 147,971 | ||||||||||||
Total
|
$ | 18,764,445 | $ | 19,526,162 | $ | 16,292,900 | $ | 18,190,307 |
March 31, 2011
|
||||||||||||||||||||||||||||
30-59 Days Past Due
|
60-89 Days
Past Due
|
Greater Than 90 Days
|
Total Past
Due
|
Current
|
Total Loans Receivable
|
Total Loans > 90
Days & Accruing
|
||||||||||||||||||||||
One-to-four family residential
|
$ | 159,557 | $ | — | $ | 684,071 | $ | 843,628 | $ | 36,939,160 | $ | 37,782,788 | $ | — | ||||||||||||||
Agricultural real estate
|
— | — | — | — | 29,607,376 | 29,607,376 | — | |||||||||||||||||||||
Commercial real estate
|
50,494 | — | 71,709 | 122,203 | 43,927,513 | 44,049,716 | — | |||||||||||||||||||||
Agricultural business
|
— | — | — | — | 7,844,104 | 7,844,104 | — | |||||||||||||||||||||
Commercial business
|
5,818 | — | — | 5,818 | 22,568,052 | 22,573,869 | — | |||||||||||||||||||||
Home equity
|
360,017 | 2,992 | 143,461 | 506,470 | 18,257,975 | 18,764,445 | — | |||||||||||||||||||||
Consumer
|
61,087 | 6,065 | 15,350 | 82,502 | 16,210,398 | 16,292,900 | 1,329 | |||||||||||||||||||||
Total
|
$ | 636,973 | $ | 9,057 | $ | 914,591 | $ | 1,560,621 | $ | 175,354,578 | $ | 176,915,199 | $ | 1,329 |
December 31, 2010
|
||||||||||||||||||||||||||||
30-59 Days Past Due
|
60-89 Days
Past Due
|
Greater Than 90 Days
|
Total Past
Due
|
Current
|
Total Loans Receivable
|
Total Loans > 90
Days & Accruing
|
||||||||||||||||||||||
One-to-four family residential
|
$ | 458,119 | $ | 161,875 | $ | 846,582 | $ | 1,466,576 | $ | 35,760,635 | $ | 37,227,211 | $ | — | ||||||||||||||
Agricultural real estate
|
— | — | — | — | 28,163,488 | 28,163,488 | — | |||||||||||||||||||||
Commercial real estate
|
921,392 | 146,090 | 521,012 | 1,588,494 | 43,773,450 | 45,361,944 | — | |||||||||||||||||||||
Agricultural business
|
— | — | — | — | 8,176,396 | 8,176,396 | — | |||||||||||||||||||||
Commercial business
|
6,024 | — | — | 6,024 | 22,804,179 | 22,810,203 | — | |||||||||||||||||||||
Home equity
|
511,203 | 10,387 | 275,179 | 796,769 | 18,729,393 | 19,526,162 | — | |||||||||||||||||||||
Consumer
|
78,216 | 76,859 | 9,383 | 164,458 | 18,025,849 | 18,190,307 | — | |||||||||||||||||||||
Total
|
$ | 1,974,954 | $ | 395,211 | $ | 1,652,156 | $ | 4,022,321 | $ | 175,433,390 | $ | 179,455,711 | $ | — |
March 31, 2011
|
||||||||||||||||||||
Recorded Balance
|
Unpaid
Principal
Balance
|
Specific Allowance
|
Average Investment in Impaired Loans
|
Interest Income Recognized
|
||||||||||||||||
Loans without a specific valuation allowance
|
||||||||||||||||||||
One-to-four family
|
$ | 273,527 | $ | 273,527 | $ | — | $ | 275,332 | $ | 3,115 | ||||||||||
Commercial real estate
|
124,882 | 124,882 | — | 126,207 | 975 | |||||||||||||||
Loans with a specific valuation allowance
|
||||||||||||||||||||
One-to-four family
|
369,475 | 369,475 | 67,118 | 401,190 | 6,357 | |||||||||||||||
Commercial real estate
|
1,616,827 | 1,616,827 | 216,320 | 1,796,665 | 19,877 | |||||||||||||||
Commercial business
|
585,106 | 585,106 | 99,632 | 679,026 | 10,542 | |||||||||||||||
Total:
|
||||||||||||||||||||
One-to-four family
|
643,002 | 643,002 | 67,118 | 676,522 | 9,472 | |||||||||||||||
Commercial real estate
|
1,741,709 | 1,741,709 | 216,320 | 1,922,872 | 20,852 | |||||||||||||||
Commercial business
|
585,106 | 585,106 | 99,632 | 684,132 | 10,542 | |||||||||||||||
Total
|
$ | 2,969,817 | $ | 2,969,817 | $ | 383,070 | $ | 3,278,420 | $ | 40,866 |
December 31, 2010
|
||||||||||||||||||||
Recorded Balance
|
Unpaid
Principal
Balance
|
Specific Allowance
|
Average Investment in Impaired Loans
|
Interest Income Recognized
|
||||||||||||||||
Loans without a specific valuation allowance
|
||||||||||||||||||||
Commercial real estate
|
$ | 127,653 | $ | 127,653 | $ | — | $ | 309,365 | $ | 14,432 | ||||||||||
Commercial business
|
— | — | — | 10,636 | 545 | |||||||||||||||
Consumer
|
— | — | — | 10,762 | 628 | |||||||||||||||
Loans with a specific valuation allowance
|
||||||||||||||||||||
One-to-four family
|
369,749 | 369,749 | 109,622 | 536,944 | 4,785 | |||||||||||||||
Commercial real estate
|
2,092,909 | 2,092,909 | 408,687 | 2,578,312 | 77,973 | |||||||||||||||
Commercial business
|
606,273 | 606,273 | 72,393 | 722,393 | 36,958 | |||||||||||||||
Consumer
|
— | — | — | 5,106 | 425 | |||||||||||||||
Total:
|
||||||||||||||||||||
One-to-four family
|
369,749 | 369,749 | 109,622 | 536,944 | 4,785 | |||||||||||||||
Commercial real estate
|
2,220,562 | 2,220,562 | 408,687 | 2,887,677 | 92,405 | |||||||||||||||
Commercial business
|
606,273 | 606,273 | 72,393 | 733,029 | 37,503 | |||||||||||||||
Consumer
|
— | — | — | 15,868 | 1,053 | |||||||||||||||
Total
|
$ | 3,196,584 | $ | 3,196,584 | $ | 590,702 | $ | 4,173,518 | $ | 135,746 |
March 31, 2011
|
December 31, 2010
|
|||||||
One-to-four family
|
$ | 942,939 | $ | 1,019,252 | ||||
Agricultural real estate
|
— | — | ||||||
Commercial real estate
|
1,859,325 | 1,359,060 | ||||||
Agricultural business
|
— | — | ||||||
Commercial business
|
77,056 | 84,361 | ||||||
Home equity
|
458,127 | 565,905 | ||||||
Consumer
|
157,653 | 106,159 | ||||||
Total
|
$ | 3,495,100 | $ | 3,134,737 |
7.
|
INVESTMENTS
|
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Fair Value
|
|||||||||||||
March 31, 2011:
|
||||||||||||||||
U.S. government and agencies
|
$ | 14,661,722 | $ | 58,644 | $ | (127,290 | ) | $ | 14,593,076 | |||||||
Mortgage-backed securities (government-sponsored enterprises - residential)
|
44,343,799 | 560,682 | (461,228 | ) | 44,443,253 | |||||||||||
Municipal bonds
|
42,584,450 | 592,021 | (405,359 | ) | 42,771,112 | |||||||||||
$ | 101,589,971 | $ | 1,211,347 | $ | (993,877 | ) | $ | 101,807,441 | ||||||||
December 31, 2010:
|
||||||||||||||||
U.S. government and agencies
|
$ | 12,530,787 | $ | 112,102 | $ | (93,947 | ) | $ | 12,548,942 | |||||||
Mortgage-backed securities (government-sponsored enterprises - residential)
|
41,979,525 | 480,709 | (465,384 | ) | 41,994,850 | |||||||||||
Municipal bonds
|
40,584,897 | 407,015 | (668,983 | ) | 40,322,929 | |||||||||||
$ | 95,095,209 | $ | 999,826 | $ | (1,228,314 | ) | $ | 94,866,721 |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
Within one year
|
$ | 91,223 | $ | 91,325 | ||||
One to five years
|
12,648,570 | 12,742,744 | ||||||
Five to ten years
|
26,464,206 | 26,565,618 | ||||||
After ten years
|
18,042,173 | 17,964,501 | ||||||
57,246,172 | 57,364,188 | |||||||
Mortgage-backed securities (government-sponsored enterprises - residential)
|
44,343,799 | 44,443,253 | ||||||
$ | 101,589,971 | $ | 101,807,441 |
Less Than Twelve Months
|
Twelve Months or More
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||||||||
Losses
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
|||||||||||||||||||
Municipal bonds
|
$ | (405,359 | ) | $ | 16,433,140 | $ | - | $ | - | $ | (405,359 | ) | $ | 16,433,140 | ||||||||||
U.S. government and agencies
|
(127,290 | ) | 8,921,547 | - | - | (127,290 | ) | 8,921,547 | ||||||||||||||||
Subtotal
|
(532,649 | ) | 25,354,687 | - | - | (532,649 | ) | 25,354,687 | ||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
(government sponsored
|
||||||||||||||||||||||||
enterprises - residential)
|
(461,228 | ) | 20,647,114 | - | - | (461,228 | ) | 20,647,114 | ||||||||||||||||
Total
|
$ | (993,877 | ) | $ | 46,001,801 | $ | - | $ | - | $ | (993,877 | ) | $ | 46,001,801 |
8.
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
March 31, 2011
|
March 31, 2010
|
|||||||
Net unrealized gain (loss) on securities available-for-sale
|
$ | 499,463 | $ | (24,663 | ) | |||
Less reclassification adjustment for realized gains included in income
|
53,505 | 140,028 | ||||||
Other comprehensive income (loss) before tax effect
|
445,958 | (164,691 | ) | |||||
Less tax expense
|
151,626 | (55,995 | ) | |||||
Other comprehensive income (loss)
|
$ | 294,332 | $ | (108,696 | ) |
March 31, 2011
|
March 31, 2010
|
|||||||
Net unrealized gain on securities available-for-sale
|
$ | 217,470 | $ | 889,590 | ||||
Tax effect
|
(73,940 | ) | (302,461 | ) | ||||
Net-of-tax amount
|
$ | 143,530 | $ | 587,129 |
9.
|
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES
|
|
Level 1
|
Quoted prices in active markets for identical assets or liabilities.
|
|
Level 2
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
|
Available-for-Sale Securities - Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Company has no Level 1 securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For those investments, the inputs used by the pricing service to determine fair value may include one, or a combination of, observable inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data market research publications are classified within Level 2 of the valuation hierarchy. Level 2 securities include U.S. Government and agencies, mortgage-backed securities (Government-sponsored enterprises – residential) and municipal bonds. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The Company did not have securities considered Level 3 as of March 31, 2011.
|
March 31, 2011
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
|
||||||||||||||||
U.S. Government and agencies
|
$ | 14,593,076 | $ | - | $ | 14,593,076 | $ | - | ||||||||
Mortgage-backed securities (Government sponsored enterprises
- residential)
|
44,443,253 | - | 44,443,253 | - | ||||||||||||
Municipal bonds
|
42,771,112 | - | 42,771,112 | - |
December 31, 2010
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
U.S. Government and agencies
|
$ | 12,548,942 | $ | - | $ | 12,548,942 | $ | - | ||||||||
Mortgage-backed securities (Government sponsored
enterprises - residential)
|
41,994,850 | - | 41,994,850 | - | ||||||||||||
Municipal bonds
|
40,322,929 | - | 40,322,929 | - |
March 31, 2011
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Impaired loans
|
||||||||||||||||
(collateral dependent)
|
$ | 2,586,747 | $ | - | $ | - | $ | 2,586,747 | ||||||||
Mortgage servicing rights
|
783,292 | 783,292 | ||||||||||||||
Real estate owned
|
624,432 | - | - | 624,432 |
December 31, 2010
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Impaired loans
|
||||||||||||||||
(collateral dependent)
|
$ | 2,407,740 | $ | - | $ | - | $ | 2,407,740 | ||||||||
Mortgage servicing rights
|
797,327 | 797,327 | ||||||||||||||
Real estate owned
|
459,877 | - | - | 459,877 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 10,556,677 | $ | 10,556,677 | $ | 8,943,400 | $ | 8,943,400 | ||||||||
Other investments
|
127,958 | 127,958 | 130,049 | 130,049 | ||||||||||||
Loans held for sale
|
480,400 | 480,400 | 280,000 | 280,000 | ||||||||||||
Loans, net of allowance for loan losses
|
173,996,907 | 172,548,120 | 176,442,118 | 175,436,281 | ||||||||||||
Federal Home Loan Bank stock
|
1,113,800 | 1,113,800 | 1,113,800 | 1,113,800 | ||||||||||||
Interest receivable
|
1,985,042 | 1,985,042 | 1,872,779 | 1,872,779 | ||||||||||||
Financial Liabilities
|
||||||||||||||||
Deposits
|
261,121,840 | 266,669,796 | 256,423,647 | 259,188,963 | ||||||||||||
Short-term borrowings
|
4,049,703 | 4,049,703 | 4,018,235 | 4,018,235 | ||||||||||||
Advances from borrowers for taxes and insurance
|
961,436 | 961,436 | 629,788 | 629,788 | ||||||||||||
Interest payable
|
483,058 | 483,058 | 556,257 | 556,257 | ||||||||||||
Unrecognized financial instruments (net of contract amount)
|
||||||||||||||||
Commitments to originate loans
|
- | - | - | - | ||||||||||||
Letters of credit
|
- | - | - | - | ||||||||||||
Lines of credit
|
- | - | - | - |
10.
|
FEDERAL HOME LOAN BANK STOCK
|
11.
|
MORTGAGE SERVICING RIGHTS
|
March 31, 2011
|
December 31, 2010
|
|||||||
Balance, beginning of year
|
$ | 797,327 | $ | 850,313 | ||||
Servicing rights capitalized
|
18,696 | 257,316 | ||||||
Amortization of servicing rights
|
(43,126 | ) | (302,755 | ) | ||||
Change in valuation allowance
|
10,395 | (7,547 | ) | |||||
Balance, end of period
|
$ | 783,292 | $ | 797,327 |
March 31, 2011
|
December 31, 2010
|
|||||||
Balance, beginning of year
|
$ | 163,989 | $ | 156,442 | ||||
Additions
|
- | 165,651 | ||||||
Reductions
|
(10,395 | ) | (158,104 | ) | ||||
Balance, end of period
|
$ | 153,594 | $ | 163,989 |
12.
|
INCOME TAXES
|
March 31, 2011
|
March 31, 2010
|
|||||||
Computed at the statutory rate (34%)
|
$ | 339,372 | $ | 206,712 | ||||
Increase (decrease) resulting from
|
||||||||
Tax exempt interest
|
(122,552 | ) | (94,004 | ) | ||||
State income taxes, net
|
59,953 | 25,192 | ||||||
Increase in cash surrender value
|
(13,557 | ) | (15,676 | ) | ||||
Other, net
|
199 | (13,106 | ) | |||||
Actual tax expense
|
$ | 263,415 | $ | 109,118 |
13.
|
COMMITMENTS AND CONTINGENCIES
|
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|
●
|
Level 1 – quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
|
●
|
Level 2 – inputs include quoted prices for similar assets and liabilities in active markets, quoted prices of identical or similar assets or liabilities in markets that are not active, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
|
●
|
Level 3 – inputs that are unobservable and significant to the fair value measurement.
|
Three Months Ended
|
||||||||
March 31, 2011
|
March 31, 2010
|
|||||||
Balance at beginning of period
|
$ | 2,964,285 | $ | 2,290,001 | ||||
Charge-offs:
|
||||||||
One-to-four family residential
|
7,402 | 16,070 | ||||||
Commercial real estate
|
260,785 | - | ||||||
Home equity
|
4,162 | 30,127 | ||||||
Consumer
|
1,097 | - | ||||||
Total
|
273,446 | 46,197 | ||||||
Recoveries:
|
||||||||
One-to-four family residential
|
- | 20,215 | ||||||
Commercial real estate
|
8,142 | 3,228 | ||||||
Commercial business
|
200 | - | ||||||
Home equity
|
3,867 | 9,899 | ||||||
Consumer
|
1,202 | 3,184 | ||||||
Total
|
13,411 | 36,526 | ||||||
Net loan charge-offs
|
260,035 | 9,671 | ||||||
Provisions charged to expense
|
175,000 | 275,000 | ||||||
Balance at end of period
|
$ | 2,879,250 | $ | 2,555,330 |
March 31, 2011
|
December 31, 2010
|
|||||||
Non-accruing loans:
|
||||||||
One-to-four family residential
|
$ | 942,939 | $ | 1,019,252 | ||||
Commercial real estate
|
1,859,325 | 1,359,060 | ||||||
Commercial business
|
77,056 | 84,361 | ||||||
Home equity
|
458,127 | 565,905 | ||||||
Consumer
|
157,653 | 106,159 | ||||||
Total
|
$ | 3,495,100 | $ | 3,134,737 | ||||
Accruing loans delinquent more than 90 days:
|
||||||||
Consumer
|
$ | 1,329 | $ | - | ||||
Total
|
$ | 1,329 | $ | - | ||||
Foreclosed assets:
|
||||||||
One-to-four family residential
|
$ | 193,900 | $ | 207,412 | ||||
Commercial real estate
|
430,532 | 252,465 | ||||||
Total
|
$ | 624,432 | $ | 459,877 | ||||
Total nonperforming assets
|
$ | 4,120,861 | $ | 3,594,614 | ||||
|
||||||||
Total nonperforming assets as a percentage of total assets
|
1.34 | % | 1.19 | % |
March 31, 2011
|
December 31, 2010
|
|||||||
Special Mention credits
|
$ | 4,229,231 | $ | 3,942,607 | ||||
Substandard credits
|
6,047,883 | 6,975,081 | ||||||
Total watch list credits
|
$ | 10,277,114 | $ | 10,917,688 |
March 31, 2011
|
December 31, 2010
|
|||||||
(In thousands)
|
||||||||
Commitments to fund loans
|
$ | 39,554 | $ | 36,871 | ||||
Standby letters of credit
|
392 | 453 |
March 31, 2011
|
December 31, 2010
|
Minimum
|
||||||||||
Actual
|
Actual
|
Required
|
||||||||||
Tier 1 Capital to Average Assets
|
9.53 | % | 9.25 | % | 4.00 | % | ||||||
Tier 1 Capital to Risk-Weighted Assets
|
13.87 | % | 13.52 | % | 4.00 | % | ||||||
Total Capital to Risk-Weighted Assets
|
15.12 | % | 14.77 | % | 8.00 | % |
Consolidated Average Balance Sheet and Interest Rates
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Three Months Ended March 31,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
Interest-earnings assets:
|
||||||||||||||||||||||||
Loans
|
$ | 179,150 | $ | 2,655 | 5.93 | % | $ | 174,874 | $ | 2,671 | 6.11 | % | ||||||||||||
Investment securities
|
56,080 | 486 | 3.47 | % | 40,286 | 400 | 3.97 | % | ||||||||||||||||
Mortgage-backed securities
|
42,519 | 280 | 2.63 | % | 38,853 | 161 | 1.66 | % | ||||||||||||||||
Other
|
6,423 | 2 | 0.11 | % | 9,357 | 2 | 0.10 | % | ||||||||||||||||
Total interest-earning assets
|
284,172 | 3,423 | 4.82 | % | 263,370 | 3,234 | 4.91 | % | ||||||||||||||||
Non-interest earnings assets
|
20,371 | 22,435 | ||||||||||||||||||||||
Total assets
|
$ | 304,543 | $ | 285,805 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ | 237,673 | $ | 800 | 1.35 | % | $ | 233,160 | $ | 1,053 | 1.81 | % | ||||||||||||
Other borrowings
|
3,440 | 5 | 0.54 | % | 3,185 | 2 | 0.27 | % | ||||||||||||||||
Total interest-bearing liabilities
|
241,113 | 805 | 1.66 | % | 236,345 | 1,055 | 1.78 | % | ||||||||||||||||
Non-interest bearing liabilities
|
27,429 | 24,037 | ||||||||||||||||||||||
Stockholders’ equity
|
36,001 | 25,423 | ||||||||||||||||||||||
Total liabilities/stockholders’ equity
|
$ | 304,543 | $ | 285,805 | ||||||||||||||||||||
Net interest income
|
$ | 2,618 | $ | 2,179 | ||||||||||||||||||||
|
||||||||||||||||||||||||
Interest rate spread (average yield earned minus average rate paid)
|
3.48 | % | 3.13 | % | ||||||||||||||||||||
|
||||||||||||||||||||||||
Net interest margin (net interest income divided by average interest-earning assets)
|
3.69 | % | 3.31 | % |
Analysis of Volume and Rate Changes
|
||||||||||||
(In thousands)
|
||||||||||||
Three Months Ended March 31,
|
||||||||||||
2011 Compared to 2010
|
||||||||||||
Increase(Decrease) Due to
|
||||||||||||
Rate
|
Volume
|
Net
|
||||||||||
Interest-earnings assets:
|
||||||||||||
Loans
|
$ | (80 | ) | $ | 64 | $ | (16 | ) | ||||
Investment securities
|
(55 | ) | 141 | 86 | ||||||||
Mortgage-backed securities
|
102 | 17 | 119 | |||||||||
Total net change in income on interest-earning assets
|
(33 | ) | 222 | 189 | ||||||||
Interest-bearing liabilities:
|
||||||||||||
Deposits
|
(272 | ) | 20 | (252 | ) | |||||||
Other borrowings
|
2 | - | 2 | |||||||||
Total net change in expense on interest-bearing liabilities
|
(270 | ) | 20 | (250 | ) | |||||||
Net change in net interest income
|
$ | 237 | $ | 202 | $ | 439 |
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Change in Net Interest Income
|
||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
ALCO
|
||||||||||||||||
Rate Shock:
|
$ Change
|
% Change
|
$ Change
|
% Change
|
Benchmark
|
|||||||||||||
+ 200 basis points
|
61 | 0.53 | % | 64 | 0.57 | % | > (20.00 | )% | ||||||||||
+ 100 basis points
|
153 | 1.32 | % | 134 | 1.19 | % |
> (12.50
|
)% | ||||||||||
- 100 basis points
|
75 | 0.64 | % | (36 | ) | -0.32 | % |
> (12.50
|
)% | |||||||||
- 200 basis points
|
(210 | ) | -1.81 | % | (385 | ) | -3.42 | % |
> (20.00
|
)% |
Item 4. CONTROLS AND PROCEDURES |
Item 1. | Legal Proceedings | |
At March 31, 2011, the Company is not involved in any pending legal proceedings other than non-material legal proceedings undertaken in the normal course of business. | ||
Item 1.A. | Risk Factors | |
There have been no material changes in the Company’s risk factors from those disclosed in its annual report on Form 10-K. | ||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
None. | ||
Item 3. | Defaults Upon Senior Securities | |
None. | ||
Item 4. | Removed and Reserved | |
Item 5. | Other Information | |
None. | ||
Item 6. | Exhibits | |
31.1 - | Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) | |
31.2 - | Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) | |
32.1 - | Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
JACKSONVILLE BANCORP, INC. | |||
Registrant | |||
Date: 05/10/2011
|
/s/ Richard A. Foss | ||
Richard A. Foss | |||
President and Chief Executive Officer | |||
/s/ Diana S. Tone | |||
Diana S. Tone | |||
Chief Financial Officer |
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Jacksonville Bancorp, Inc.;
|
|
2.
|
Based on my knowledge, this quarterly 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 quarterly report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly 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:
|
|
a)
|
designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principle;
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annul report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer(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 registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
05/10/2011
|
|
/s/ Richard A. Foss | |
Date | Richard A. Foss | ||
President and Chief Executive Officer |
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Jacksonville Bancorp, Inc.;
|
|
2.
|
Based on my knowledge, this quarterly 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 quarterly report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly 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:
|
|
a)
|
designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principle;
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annul report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer(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 registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
05/10/2011
|
|
/s/ Diana S. Tone | |
Date | Diana S. Tone | ||
Chief Financial Officer |
|
(1)
|
the Report fully complies with the requirements of Sections 13(a) 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.
|
05/10/2011
|
|
/s/ Richard A. Foss | |
Date | Richard A. Foss | ||
President and Chief Executive Officer | |||
05/10/2011 | /s/ Diana S. Tone | ||
Date | Diana S. Tone | ||
Chief Financial Officer |