x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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JACKSONVILLE BANCORP, INC. | ||
(Exact name of registrant as specified in its charter) |
Maryland | 36-4670835 | |||
(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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1211 West Morton Avenue, Jacksonville, Illinois | 62650 | ||
(Address of principal executive offices)
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(Zip Code)
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Title of each class | Name of each exchange on which registered | ||||
Common Stock, $0.01 par value
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The NASDAQ Stock Market, LLC
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2
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37
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44
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44
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44
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44
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45
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45
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45
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45
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45
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45
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45
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46
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46
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46
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47
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47
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47
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47
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At December 31,
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||||||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||||||||||
One- to four-family residential (1)
|
$ | 39,472 | 23.1 | % | $ | 37,227 | 21.1 | % | $ | 38,581 | 22.2 | % | $ | 46,807 | 25.6 | % | $ | 50,459 | 28.7 | % | ||||||||||||||||||||
Commercial (2)
|
40,170 | 23.5 | 45,362 | 25.7 | 34,774 | 20.0 | 37,712 | 20.6 | 25,919 | 14.8 | ||||||||||||||||||||||||||||||
Agricultural
|
29,971 | 17.5 | 28,164 | 16.0 | 26,220 | 15.1 | 23,322 | 12.8 | 22,922 | 13.0 | ||||||||||||||||||||||||||||||
Home equity (3)
|
16,043 | 9.4 | 19,526 | 11.1 | 28,119 | 16.2 | 30,002 | 16.4 | 30,087 | 17.1 | ||||||||||||||||||||||||||||||
Total real estate loans
|
125,656 | 73.5 | 130,279 | 73.9 | 127,694 | 73.5 | 137,843 | 75.4 | 129,387 | 73.6 | ||||||||||||||||||||||||||||||
Commercial business loans
|
23,198 | 13.6 | 22,810 | 12.9 | 25,548 | 14.7 | 26,320 | 14.4 | 27,881 | 15.9 | ||||||||||||||||||||||||||||||
Agricultural business loans
|
9,591 | 5.6 | 8,176 | 4.6 | 8,845 | 5.1 | 9,036 | 4.9 | 8,658 | 4.9 | ||||||||||||||||||||||||||||||
Consumer loans
|
15,756 | 9.2 | 18,190 | 10.3 | 13,955 | 8.0 | 11,792 | 6.4 | 11,736 | 6.6 | ||||||||||||||||||||||||||||||
Total loans receivable
|
174,201 | 101.9 | 179,455 | 101.7 | 176,042 | 101.3 | 184,991 | 101.1 | 177,662 | 101.0 | ||||||||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Unearned premium on purchased loans, unearned discount and deferred loan fees, net
|
39 | — | 49 | — | 69 | — | 109 | — | 29 | — | ||||||||||||||||||||||||||||||
Allowance for loan losses
|
3,297 | 1.9 | 2,964 | 1.7 | 2,290 | 1.3 | 1,934 | 1.1 | 1,766 | 1.0 | ||||||||||||||||||||||||||||||
Total loans receivable, net
|
$ | 170,865 | 100.0 | % | $ | 176,442 | 100.0 | % | $ | 173,683 | 100.0 | % | $ | 182,948 | 100.0 | % | $ | 175,867 | 100.0 | % |
(1)
|
Includes one- to four-family real estate construction loans of $686,000, $503,000, $54,000, $596,000 and $352,000 for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively.
|
(2)
|
Includes commercial real estate construction loans of $0, $2.1 million, $4.2 million, $2.5 million and $472,000 for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively.
|
(3)
|
Includes real estate construction loans of $0, $453,000, $3.6 million, $1.1 million and $1.4 million for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively.
|
One- to Four-Family Real Estate
|
Commercial Real Estate
|
Agricultural Real Estate
|
Home Equity
|
|||||||||||||||||||||||||||||
Amount
|
Weighted Average
Rate
|
Amount
|
Weighted Average
Rate
|
Amount
|
Weighted Average
Rate
|
Amount
|
Weighted Average
Rate
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||
Due During the Years
Ending December 31,
|
||||||||||||||||||||||||||||||||
2012
|
$ | 7,043 | 6.29 | % | $ | 8,271 | 6.17 | % | $ | 549 | 5.62 | % | $ | 2,510 | 7.14 | % | ||||||||||||||||
2013
|
4,491 | 6.85 | 7,913 | 5.08 | 784 | 5.83 | 1,910 | 6.80 | ||||||||||||||||||||||||
2014
|
3,913 | 6.77 | 2,861 | 6.35 | 381 | 5.91 | 2,992 | 6.94 | ||||||||||||||||||||||||
2015 to 2016
|
2,369 | 6.73 | 3,231 | 5.17 | 209 | 7.49 | 3,314 | 6.79 | ||||||||||||||||||||||||
2017 to 2021
|
2,484 | 6.03 | 4,964 | 5.51 | 920 | 5.18 | 4,181 | 6.76 | ||||||||||||||||||||||||
2022 to 2026
|
3,743 | 5.94 | 4,774 | 5.34 | 3,411 | 5.33 | 812 | 6.74 | ||||||||||||||||||||||||
2027 and beyond
|
15,429 | 5.83 | 8,156 | 5.52 | 23,717 | 5.14 | 324 | 6.72 | ||||||||||||||||||||||||
Total
|
$ | 39,472 | 6.20 | % | $ | 40,170 | 5.58 | % | $ | 29,971 | 5.22 | % | $ | 16,043 | 6.86 | % |
Commercial Business
|
Agricultural Business
|
Consumer
|
Total
|
|||||||||||||||||||||||||||||
Amount
|
Weighted Average
Rate
|
Amount
|
Weighted Average
Rate
|
Amount
|
Weighted Average
Rate
|
Amount
|
Weighted Average
Rate
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||
Due During the Years
Ending December 31,
|
||||||||||||||||||||||||||||||||
2012
|
$ | 5,147 | 5.50 | % | $ | 7,589 | 4.50 | % | $ | 2,192 | 6.87 | % | $ | 33,301 | 5.83 | % | ||||||||||||||||
2013
|
2,442 | 5.36 | 407 | 6.64 | 1,973 | 7.93 | 19,920 | 6.01 | ||||||||||||||||||||||||
2014
|
3,078 | 5.79 | 200 | 5.80 | 2,662 | 7.53 | 16,087 | 6.62 | ||||||||||||||||||||||||
2015 to 2016
|
7,824 | 4.52 | 1,083 | 5.54 | 4,065 | 7.19 | 22,095 | 5.76 | ||||||||||||||||||||||||
2017 to 2021
|
3,413 | 6.22 | 288 | 5.68 | 1,019 | 7.20 | 17,269 | 6.12 | ||||||||||||||||||||||||
2022 to 2026
|
392 | 5.31 | 24 | 6.25 | 1,496 | 8.21 | 14,652 | 5.87 | ||||||||||||||||||||||||
2027 and beyond
|
902 | 6.18 | — | — | 2,349 | 8.93 | 50,877 | 5.62 | ||||||||||||||||||||||||
Total
|
$ | 23,198 | 5.32 | % | $ | 9,591 | 4.78 | % | $ | 15,756 | 7.65 | % | $ | 174,201 | 5.89 | % |
Due after December 31, 2012
|
||||||||||||
Fixed
|
Adjustable
|
Total
|
||||||||||
(In Thousands)
|
||||||||||||
Real estate loans:
|
||||||||||||
One- to four-family residential
|
$ | 20,922 | $ | 11,507 | $ | 32,429 | ||||||
Commercial
|
15,383 | 16,516 | 31,899 | |||||||||
Agricultural
|
2,661 | 26,761 | 29,422 | |||||||||
Home equity/home improvement
|
8,134 | 5,399 | 13,533 | |||||||||
Commercial business loans
|
11,628 | 6,423 | 18,051 | |||||||||
Agricultural business loans
|
1,978 | 24 | 2,003 | |||||||||
Consumer
|
12,913 | 651 | 13,563 | |||||||||
Total loans
|
$ | 73,619 | $ | 67,281 | $ | 140,900 |
For the Years Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Total loans receivable at beginning of year
|
$ | 179,455 | $ | 176,042 | $ | 184,991 | $ | 177,662 | $ | 156,731 | ||||||||||
Originations:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
One- to four-family residential
|
44,583 | 54,052 | 72,109 | 38,717 | 30,104 | |||||||||||||||
Commercial
|
7,435 | 18,388 | 2,741 | 15,358 | 4,831 | |||||||||||||||
Agricultural
|
15,482 | 7,112 | 6,422 | 7,680 | 4,066 | |||||||||||||||
Home equity
|
4,081 | 5,073 | 11,698 | 20,133 | 19,309 | |||||||||||||||
Commercial business loans
|
14,326 | 11,692 | 12,714 | 17,031 | 16,214 | |||||||||||||||
Agricultural business loans
|
15,500 | 14,929 | 14,581 | 13,996 | 13,190 | |||||||||||||||
Consumer loans
|
10,833 | 16,355 | 11,223 | 9,260 | 10,137 | |||||||||||||||
Total originations
|
112,240 | 127,601 | 131,488 | 122,175 | 97,851 | |||||||||||||||
Participation loans purchased
|
3,227 | 4,328 | 2,113 | 11,569 | 6,231 | |||||||||||||||
Transfer of mortgage loans to foreclosed real estate owned
|
461 | 670 | 308 | 667 | 819 | |||||||||||||||
Repayments
|
88,033 | 80,471 | 75,542 | 95,671 | 72,176 | |||||||||||||||
Loan sales to secondary market
|
32,227 | 47,375 | 66,700 | 30,077 | 10,156 | |||||||||||||||
Total loans receivable at end of year
|
$ | 174,201 | $ | 179,455 | $ | 176,042 | $ | 184,991 | $ | 177,662 |
At December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
One- to four-family residential
|
$ | 1,298 | $ | 1,019 | $ | 484 | $ | 445 | $ | 310 | ||||||||||
Commercial
|
362 | 1,360 | 230 | 186 | 218 | |||||||||||||||
Agricultural
|
— | — | — | — | — | |||||||||||||||
Home equity
|
423 | 566 | 407 | 318 | 89 | |||||||||||||||
Commercial business loans
|
67 | 84 | 416 | 48 | 82 | |||||||||||||||
Agricultural business loans
|
— | — | — | — | — | |||||||||||||||
Consumer loans
|
251 | 106 | 60 | 8 | 24 | |||||||||||||||
Total non-accrual loans
|
2,401 | 3,135 | 1,597 | 1,005 | 723 | |||||||||||||||
Loans delinquent 90 days or greater and still accruing:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
One- to four-family residential
|
— | — | 349 | 163 | 203 | |||||||||||||||
Commercial
|
— | — | — | — | 156 | |||||||||||||||
Agricultural
|
— | — | — | — | — | |||||||||||||||
Home equity
|
— | — | — | — | — | |||||||||||||||
Commercial business loans
|
— | — | — | — | — | |||||||||||||||
Agricultural business loans
|
— | — | — | — | — | |||||||||||||||
Consumer loans
|
—
|
—
|
8 | 23 | 9 | |||||||||||||||
Total loans delinquent 90 days or greater and still accruing
|
—
|
— | 357 | 186 | 368 | |||||||||||||||
Total non-performing loans
|
2,401 | 3,135 | 1,954 | 1,191 | 1,091 | |||||||||||||||
Other real estate owned and foreclosed assets:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
One- to four-family residential
|
49 | 207 | 324 | 565 | 115 | |||||||||||||||
Commercial
|
416 | 253 | 59 | 204 | 249 | |||||||||||||||
Agricultural
|
— | — | — | — | — | |||||||||||||||
Home equity
|
— | — | — | — | — | |||||||||||||||
Commercial business loans
|
— | — | — | — | — | |||||||||||||||
Agricultural business loans
|
— | — | — | — | — | |||||||||||||||
Consumer loans
|
— | — | — | 9 | 23 | |||||||||||||||
Total other real estate owned and foreclosed assets
|
435 | 460 | 383 | 778 | 387 | |||||||||||||||
Total non-performing assets
|
$ | 2,836 | $ | 3,595 | $ | 2,337 | $ | 1,969 | $ | 1,478 | ||||||||||
Ratios:
|
||||||||||||||||||||
Non-performing loans to total loans
|
1.38 | % | 1.75 | % | 1.11 | % | 0.64 | % | 0.61 | % | ||||||||||
Non-performing assets to total
assets |
0.92 | % | 1.19 | % | 0.81 | % | 0.68 | % | 0.51 | % |
Loans Delinquent For
|
||||||||||||||||||||||||
60-89 Days
|
90 Days and Over
|
Total
|
||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
At December 31, 2011
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
One- to four-family residential
|
4 | $ | 162 | 12 | $ | 1,021 | 16 | $ | 1,183 | |||||||||||||||
Commercial
|
— | — | 2 | 49 | 2 | 49 | ||||||||||||||||||
Agricultural
|
— | — | — | — | — | — | ||||||||||||||||||
Home equity
|
5 | 50 | 11 | 197 | 16 | 247 | ||||||||||||||||||
Commercial business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Agricultural business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Consumer loans
|
4 | 126 | 3 | 37 | 7 | 163 | ||||||||||||||||||
Total loans
|
13 | $ | 338 | 28 | $ | 1,304 | 41 | $ | 1,642 | |||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
One- to four-family residential
|
4 | $ | 162 | 15 | $ | 847 | 19 | $ | 1,009 | |||||||||||||||
Commercial
|
2 | 146 | 2 | 521 | 4 | 667 | ||||||||||||||||||
Agricultural
|
— | — | — | — | — | — | ||||||||||||||||||
Home equity
|
2 | 10 | 9 | 275 | 11 | 285 | ||||||||||||||||||
Commercial business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Agricultural business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Consumer loans
|
6 | 77 | 4 | 9 | 10 | 86 | ||||||||||||||||||
Total loans
|
14 | $ | 395 | 30 | $ | 1,652 | 44 | $ | 2,047 | |||||||||||||||
At December 31, 2009
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
One- to four-family residential
|
6 | $ | 214 | 12 | $ | 744 | 18 | $ | 958 | |||||||||||||||
Commercial
|
2 | 543 | 1 | 20 | 3 | 563 | ||||||||||||||||||
Agricultural
|
— | — | 1 | 132 | 1 | 132 | ||||||||||||||||||
Home equity
|
3 | 42 | 10 | 194 | 13 | 236 | ||||||||||||||||||
Commercial business loans
|
1 | 14 | 2 | 84 | 3 | 98 | ||||||||||||||||||
Agricultural business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Consumer loans
|
6 | 8 | 9 | 35 | 15 | 43 | ||||||||||||||||||
Total loans
|
18 | $ | 821 | 35 | $ | 1,209 | 53 | $ | 2,030 | |||||||||||||||
At December 31, 2008
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
One- to four-family residential
|
4 | $ | 436 | 15 | $ | 695 | 19 | $ | 1,131 | |||||||||||||||
Commercial
|
— | — | — | — | — | — | ||||||||||||||||||
Agricultural
|
— | — | — | — | — | — | ||||||||||||||||||
Home equity
|
7 | 102 | 9 | 188 | 16 | 290 | ||||||||||||||||||
Commercial business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Agricultural business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Consumer loans
|
14 | 54 | 12 | 24 | 26 | 78 | ||||||||||||||||||
Total loans
|
25 | $ | 592 | 36 | $ | 907 | 61 | $ | 1,499 | |||||||||||||||
At December 31, 2007
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
One- to four-family residential
|
1 | $ | 79 | 12 | $ | 610 | 13 | $ | 689 | |||||||||||||||
Commercial
|
— | — | 1 | 102 | 1 | 102 | ||||||||||||||||||
Agricultural
|
— | — | — | — | — | — | ||||||||||||||||||
Home equity
|
5 | 76 | 4 | 78 | 9 | 154 | ||||||||||||||||||
Commercial business loans
|
— | — | 2 | 115 | 2 | 115 | ||||||||||||||||||
Agricultural business loans
|
— | — | — | — | — | — | ||||||||||||||||||
Consumer loans
|
7 | 44 | 7 | 21 | 14 | 65 | ||||||||||||||||||
Total loans
|
13 | $ | 199 | 26 | $ | 926 | 39 | $ | 1,125 |
12/31/11
|
12/31/10
|
|||||||
(In Thousands)
|
||||||||
Special Mention loans
|
$ | 3,311 | $ | 3,943 | ||||
Substandard loans
|
6,599 | 6,975 | ||||||
Total Special Mention and Substandard loans
|
$ | 9,910 | $ | 10,918 |
|
●
|
changes in lending policies and procedures, including underwriting standards and collection practices;
|
|
●
|
changes in national and local economic and business conditions and developments, including the condition of various market segments;
|
|
●
|
changes in the nature and volume of the loan portfolio;
|
|
●
|
changes in the experience, ability and depth of management and the lending staff;
|
|
●
|
changes in the trend of the volume and severity of the past due, nonaccrual, and classified loans;
|
|
●
|
changes in the quality of our loan review system and the degree of oversight by the board of directors;
|
|
●
|
the existence of any concentrations of credit, and changes in the level of such concentrations; and
|
|
●
|
the effect of external factors, such as competition and legal and regulatory requirements on the level of estimated credit losses in our current portfolio.
|
For the Years Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Balance at beginning of year
|
$ | 2,964 | $ | 2,290 | $ | 1,934 | $ | 1,766 | $ | 1,864 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
One- to four-family residential
|
130 | 99 | 147 | 149 | 165 | |||||||||||||||
Commercial real estate
|
306 | 787 | 112 | — | 38 | |||||||||||||||
Agricultural real estate
|
— | — | — | — | — | |||||||||||||||
Home equity
|
25 | 88 | 58 | 46 | 18 | |||||||||||||||
Commercial business
|
— | 144 | 1,883 | — | 35 | |||||||||||||||
Agricultural business
|
— | — | — | — | — | |||||||||||||||
Consumer
|
25 | 11 | 43 | 11 | 45 | |||||||||||||||
Total charge-offs
|
486 | 1,129 | 2,243 | 206 | 301 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
One- to four-family residential
|
— | 21 | 1 | 14 | 5 | |||||||||||||||
Commercial real estate
|
25 | 25 | 4 | 15 | 6 | |||||||||||||||
Agricultural real estate
|
— | — | — | — | — | |||||||||||||||
Home equity
|
7 | 13 | 4 | 4 | 3 | |||||||||||||||
Commercial business
|
156 | 6 | — | 16 | — | |||||||||||||||
Agricultural business
|
— | — | — | — | — | |||||||||||||||
Consumer
|
6 | 13 | 15 | 15 | 34 | |||||||||||||||
Total recoveries
|
194 | 78 | 24 | 64 | 48 | |||||||||||||||
Net loans charge-offs
|
292 | 1,051 | 2,219 | 142 | 253 | |||||||||||||||
Additions charged to operations
|
625 | 1,725 | 2,575 | 310 | 155 | |||||||||||||||
Balance at end of year
|
$ | 3,297 | $ | 2,964 | $ | 2,290 | $ | 1,934 | $ | 1,766 | ||||||||||
Total loans outstanding
|
$ | 174,201 | $ | 179,455 | $ | 176,042 | $ | 184,991 | $ | 177,662 | ||||||||||
Average net loans outstanding
|
$ | 177,597 | $ | 177,840 | $ | 182,813 | $ | 177,963 | $ | 165,715 | ||||||||||
Allowance for loan losses as a percentage of total loans at end of year
|
1.89 | % | 1.65 | % | 1.29 | % | 1.05 | % | 0.99 | % | ||||||||||
Net loans charged off as a percent of average net loans outstanding
|
0.16 | % | 0.59 | % | 1.21 | % | 0.08 | % | 0.15 | % | ||||||||||
Allowance for loan losses to non-performing loans
|
137.33 | % | 94.56 | % | 117.20 | % | 162.47 | % | 161.90 | % | ||||||||||
Allowance for loan losses to total non-performing assets at end of year
|
116.24 | % | 82.46 | % | 97.99 | % | 98.22 | % | 119.49 | % |
At December 31,
|
||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||
Amount
|
Percent of
Loans in Each
Category to
Total Loans
|
Amount
|
Percent of
Loans in Each
Category to
Total Loans
|
Amount
|
Percent of
Loans in Each
Category to
Total Loans
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
One- to four-family residential
|
$ | 697 | 22.7 | % | $ | 561 | 20.7 | % | $ | 392 | 21.9 | % | ||||||||||||
Commercial real estate
|
1,108 | 23.1 | 1,194 | 25.3 | 739 | 19.8 | ||||||||||||||||||
Agricultural real estate
|
115 | 17.2 | 93 | 15.7 | 73 | 14.9 | ||||||||||||||||||
Home equity
|
309 | 9.2 | 300 | 10.9 | 249 | 16.0 | ||||||||||||||||||
Commercial business
|
712 | 13.3 | 473 | 12.7 | 632 | 14.5 | ||||||||||||||||||
Agricultural business
|
59 | 5.5 | 58 | 4.6 | 21 | 5.0 | ||||||||||||||||||
Consumer
|
138 | 9.0 | 164 | 10.1 | 88 | 7.9 | ||||||||||||||||||
Unallocated
|
159 | — | 121 | — | 96 | — | ||||||||||||||||||
Total
|
$ | 3,297 | 100 | % | $ | 2,964 | 100 | % | $ | 2,290 | 100 | % |
At December 31,
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
Amount
|
Percent of
Loans in Each
Category to
Total Loans
|
Amount
|
Percent of
Loans in Each
Category to
Total Loans
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
One- to four-family residential
|
$ | 510 | 25.3 | % | $ | 595 | 28.4 | % | ||||||||
Commercial real estate
|
520 | 20.4 | 312 | 14.6 | ||||||||||||
Agricultural real estate
|
29 | 12.6 | 62 | 12.9 | ||||||||||||
Home equity
|
301 | 16.2 | 465 | 16.9 | ||||||||||||
Commercial business
|
288 | 14.2 | 132 | 15.7 | ||||||||||||
Agricultural business
|
16 | 4.9 | 14 | 4.9 | ||||||||||||
Consumer
|
85 | 6.4 | 186 | 6.6 | ||||||||||||
Unallocated
|
185 | — | — | — | ||||||||||||
Total
|
1,934 | 100 | % | 1,766 | 100 | % |
At December 31,
|
||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
Fannie Mae
|
$ | 19,512 | $ | 19,917 | $ | 14,908 | $ | 14,694 | $ | 10,646 | $ | 10,855 | ||||||||||||
Freddie Mac
|
7,058 | 7,263 | 7,380 | 7,396 | 6,938 | 7,096 | ||||||||||||||||||
Ginnie Mae
|
12,909 | 13,184 | 19,691 | 19,905 | 22,844 | 23,034 | ||||||||||||||||||
Total mortgage-backed securities
|
39,479 | 40,364 | 41,979 | 41,995 | 40,428 | 40,985 | ||||||||||||||||||
U.S. government and agencies
|
14,132 | 14,336 | 12,531 | 12,549 | 9,037 | 9,080 | ||||||||||||||||||
Municipal bonds
|
44,962 | 47,922 | 40,585 | 40,323 | 27,661 | 28,116 | ||||||||||||||||||
Total
|
$ | 98,573 | $ | 102,622 | $ | 95,095 | $ | 94,867 | $ | 77,126 | $ | 78,181 |
One Year or Less
|
More than One Year through Five Years
|
More than Five Years through Ten Years
|
More than Ten Years
|
Total Securities
|
||||||||||||||||||||||||||||||||||||||||
Amortized Cost
|
Weighted Average Yield
|
Amortized Cost
|
Weighted Average Yield
|
Amortized Cost
|
Weighted Average Yield
|
Amortized Cost
|
Weighted Average Yield
|
Amortized Cost
|
Fair Value
|
Weighted Average Yield
|
||||||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae
|
$ | — | — | % | $ | — | — | % | $ | — | — | % | $ | 19,512 | 3.33 | % | $ | 19,512 | $ | 19,917 | 3.33 | % | ||||||||||||||||||||||
FreddieMac
|
— | — | — | — | — | — | 7,058 | 3.48 | 7,058 | 7,263 | 3.48 | |||||||||||||||||||||||||||||||||
Ginnie Mae
|
— | — | — | — | — | — | 12,909 | 3.14 | 12,909 | 13,184 | 3.14 | |||||||||||||||||||||||||||||||||
Total mortgage-backed securities
|
— | — | — | — | — | — | 39,479 | 3.29 | 39,479 | 40,364 | 3.29 | |||||||||||||||||||||||||||||||||
U.S. government and agencies
|
— | — | 5,583 | 2.34 | 8,044 | 2.82 | 505 | 3.46 | 14,132 | 14,336 | 2.66 | |||||||||||||||||||||||||||||||||
Municipal bonds (1)
|
102 | 2.51 | 3,688 | 3.09 | 19,989 | 3.65 | 21,183 | 4.35 | 44,962 | 47,922 | 3.93 | |||||||||||||||||||||||||||||||||
Total
|
$ | 102 | 2.51 | % | $ | 9,271 | 2.64 | % | $ | 28,033 | 3.42 | % | $ | 61,167 | 3.67 | % | $ | 98,573 | $ | 102,622 | 3.50 | % |
(1)
|
We used an assumed 34% tax rate in computing tax equivalent adjustments. The tax equivalent yield of municipal bonds was 3.80% for maturities of one year or less, 4.68% for maturities of more than one year through five years, 5.41% for maturities for more than five years through ten years, 6.11% for maturities of more than 10 years and 5.68% for the total municipal bonds securities portfolio at December 31, 2011. The tax equivalent adjustments to interest income of municipal bonds was $1,000 for maturities of one year or less, $61,000 for maturities of more than one year through five years, $379,000 for maturities for more than five years through ten years, $392,000 for maturities of more than 10 years and $833,000 for the total municipal bonds securities portfolio for the year ended December 31, 2011.
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
Average Balance
|
Percent
|
Weighted Average Rate
|
Average Balance
|
Percent
|
Weighted Average Rate
|
Average Balance
|
Percent
|
Weighted Average Rate
|
||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||
Deposit type:
|
||||||||||||||||||||||||||||||||||||
Non-interest bearing
checking |
$ | 21,822 | 8.5 | % | — | % | $ | 21,769 | 8.5 | % | — | % | $ | 19,791 | 7.8 | % | — | % | ||||||||||||||||||
Interest-bearing checking
|
35,150 | 13.7 | 0.25 | % | 31,164 | 12.2 | 0.32 | % | 29,009 | 11.4 | 0.32 | % | ||||||||||||||||||||||||
Savings accounts
|
29,057 | 11.4 | 0.46 | % | 26,686 | 10.4 | 0.66 | % | 24,849 | 9.8 | 0.88 | % | ||||||||||||||||||||||||
Money market deposits
|
6,182 | 2.4 | 0.47 | % | 5,431 | 2.1 | 0.79 | % | 4,616 | 1.8 | 0.86 | % | ||||||||||||||||||||||||
Money market savings
|
27,508 | 10.7 | 0.63 | % | 27,058 | 10.5 | 0.95 | % | 26,750 | 10.5 | 1.41 | % | ||||||||||||||||||||||||
Certificates of deposit
|
136,353 | 53.3 | 1.79 | % | 144,362 | 56.3 | 2.33 | % | 149,124 | 58.7 | 3.08 | % | ||||||||||||||||||||||||
Total deposits
|
$ | 256,072 | 100.00 | % | 1.12 | % | $ | 256,470 | 100.00 | % | 1.54 | % | $ | 254,139 | 100.00 | % | 2.09 | % |
At December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(In Thousands)
|
||||||||||||
Interest Rate:
|
||||||||||||
Less than 2.00%
|
$ | 97,348 | $ | 99,136 | $ | 51,683 | ||||||
2.00% to 2.99%
|
18,296 | 21,161 | 40,734 | |||||||||
3.00% to 3.99%
|
13,508 | 19,486 | 37,674 | |||||||||
4.00% to 4.99%
|
1,214 | 2,858 | 6,677 | |||||||||
5.00% to 5.99%
|
951 | 2,638 | 8,852 | |||||||||
Total
|
$ | 131,317 | $ | 145,279 | $ | 145,620 |
At December 31, 2011 | ||||||||||||||||||||||||
Period to Maturity | ||||||||||||||||||||||||
Less Than or Equal to
One Year
|
More Than
One to
Two Years
|
More Than
Two to
Three Years
|
More Than Three Years
|
Total
|
Percent of
Total
|
|||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Interest Rate Range:
|
||||||||||||||||||||||||
Less than 2.00%
|
$ | 71,921 | $ | 22,272 | $ | 2,500 | $ | 655 | $ | 97,348 | 74.2 | % | ||||||||||||
2.00% to 2.99%
|
2,641 | 1,651 | 764 | 13,240 | 18,296 | 13.9 | ||||||||||||||||||
3.00% to 3.99%
|
1,634 | 932 | 4,481 | 6,461 | 13,508 | 10.3 | ||||||||||||||||||
4.00% to 4.99%
|
917 | 297 | — | — | 1,214 | 0.9 | ||||||||||||||||||
5.00% to 5.99%
|
556 | 395 | — | — | 951 | 0.7 | ||||||||||||||||||
Total
|
$ | 77,669 | $ | 25,547 | $ | 7,745 | $ | 20,356 | $ | 131,317 | 100.0 | % |
At December 31, 2011
|
||||
(In Thousands)
|
||||
Three months or less
|
$ | 10,301 | ||
Over three months through six months
|
7,445 | |||
Over six months through one year
|
11,645 | |||
Over one year to three years
|
12,930 | |||
Over three years
|
11,086 | |||
Total
|
$ | 53,407 |
At or For the Years Ended December 31,
|
|||||||||||||
2011
|
2010
|
2009
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||
Balance at end of period
|
$ | — | $ | — | $ | — | |||||||
Average balance during period
|
$ | 159 | $ | — | $ | 5,349 | |||||||
Maximum outstanding at any month end
|
$ | 1,000 | $ | — | $ | 10,000 | |||||||
Weighted average interest rate at end of period
|
— | % | — | % | — | % | |||||||
Average interest rate during period
|
0.30 | % | — | % | 1.94 | % |
At or For the Years Ended December 31,
|
|||||||||||||
2011
|
2010
|
2009
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||
Balance at end of period
|
$ | 6,518 | $ | 4,018 | $ | 3,789 | |||||||
Average balance during period
|
$ | 4,408 | $ | 2,847 | $ | 5,168 | |||||||
Maximum outstanding at any month end
|
$ | 6,518 | $ | 4,018 | $ | 6,920 | |||||||
Weighted average interest rate at end of period
|
0.14 | % | 0.46 | % | 0.19 | % | |||||||
Average interest rate during period
|
0.37 | % | 0.39 | % | 0.24 | % |
|
(i)
|
be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features, and
|
|
(ii)
|
not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of Jacksonville Savings Bank’s capital.
|
|
●
|
Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
|
●
|
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
|
|
●
|
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
|
|
●
|
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
|
|
●
|
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
|
|
●
|
Truth in Savings Act;
|
|
●
|
Illinois High Risk Home Loan Act, which protects borrowers who enter into high risk home loans;
|
|
●
|
Illinois Predatory Lending Database Program, which helps provide counseling for homebuyers in connection with certain loans; and
|
|
●
|
rules and regulations of the various federal and state agencies charged with the responsibility of implementing such laws.
|
|
●
|
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;
|
|
●
|
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services;
|
|
●
|
Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check;
|
|
●
|
The USA PATRIOT Act, which requires savings banks operating to, among other things, establish broadened anti-money laundering compliance programs, due diligence policies and controls to ensure the detection and reporting of money laundering. Such required compliance programs are intended to supplement existing compliance requirements, also applicable to financial institutions, under the Bank Secrecy Act and the Office of Foreign Assets Control regulations; and
|
|
●
|
The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution’s privacy policy and provide such customers the opportunity to “opt out” of the sharing of certain personal financial information with unaffiliated third parties.
|
|
●
|
demand for our products and services may decline;
|
|
●
|
loan delinquencies, problem assets and foreclosures may increase;
|
|
●
|
collateral for our loans may continue to decline in value; and
|
|
●
|
the amount of our low-cost or non-interest bearing deposits may decrease.
|
Location
|
Year
Occupied
|
Net
Book Value
at December 31,2011
|
||||
(In Thousands)
|
||||||
Main Office
|
||||||
1211 West Morton Avenue
|
||||||
Jacksonville, Illinois
|
1994
|
$ | 3,688 | |||
Branch Office (1)
|
||||||
211 West State Street
|
||||||
Jacksonville, Illinois
|
1961
|
574 | ||||
Branch Office (1)
|
||||||
903 South Main
|
||||||
Jacksonville, Illinois
|
1989
|
146 | ||||
Branch Office
|
||||||
501 North State Street
|
||||||
Litchfield, Illinois
|
1997
|
513 | ||||
Branch Office
|
||||||
100 North Dye
|
||||||
Virden, Illinois
|
1986
|
166 | ||||
Branch Office
|
||||||
510 Superior
|
||||||
Chapin, Illinois
|
2000
|
421 | ||||
Branch Office (1)
|
||||||
202 State
|
||||||
Concord, Illinois
|
2000
|
25 |
Plan
|
Number of securities to be
issued upon exercise of
outstanding options and
rights
|
Weighted average
exercise price
|
Number of securities
remaining available for
issuance under plan
|
|||||||||
Equity compensation plans approved by stockholders
|
4,504 | 13.98 | — | |||||||||
Equity compensation plans not approved by stockholders
|
— | — | — | |||||||||
Total
|
4,504 | 13.98 | — |
(a)(1) Financial Statements
|
|||
The documents filed as a part of this Form 10-K are:
|
|||
(A)
|
Report of Independent Registered Public Accounting Firm;
|
||
(B)
|
Consolidated Balance Sheets - December 31, 2011 and 2010;
|
||
(C)
|
Consolidated Statements of Income - years ended December 31, 2011 and 2010;
|
||
(D)
|
Consolidated Statements of Stockholders’ Equity - years ended December 31, 2011 and 2010;
|
||
(E)
|
Consolidated Statements of Cash Flows - years ended December 31, 2011 and 2010; and
|
||
(F)
|
Notes to Consolidated Financial Statements.
|
||
(a)(2)
|
Financial Statement Schedules
|
||
All financial statement schedules have been omitted as the required information is inapplicable or has been included in the Notes to Consolidated Financial Statements.
|
|||
(a)(3)
|
Exhibits
|
3.1
|
Articles of Incorporation(1)
|
|
3.2
|
Bylaws(2)
|
|
4
|
Stock Certificate of Jacksonville Bancorp, Inc.(3)
|
|
10.1
|
Employment Agreement between Jacksonville Savings Bank and Andrew F. Applebee(4)
|
|
10.2
|
Employment Agreement between Jacksonville Savings Bank and Richard A. Foss(5)
|
|
10.3
|
Employment Agreement between Jacksonville Savings Bank and John Williams(6)
|
|
10.4
|
Jacksonville Savings Bank and Jacksonville Bancorp, MHC 1996 Stock Option Plan(7)
|
|
10.5
|
Jacksonville Savings Bank 2001 Stock Option Plan(8)
|
10.6
|
Amendments to the Jacksonville Savings Bank and Jacksonville Bancorp, MHC Stock Option Plans(9)
|
|
10.7
|
Jacksonville Savings Bank Supplemental Life Insurance Plan(10)
|
|
10.8
|
Jacksonville Savings Bank Salary Continuation Plan 1(11)
|
|
10.9
|
Jacksonville Savings Bank Long-Term Deferred Compensation Plan, as amended(12)
|
|
10.10
|
Deferred Compensation Agreement between Chapin State Bank and John C. Williams(13)
|
|
10.11
|
Director’s Compensation Agreement between Chapin State Bank and John C. Williams(14)
|
|
10.12
|
Deferred Compensation Agreement between Chapin State Bank and Dean H. Hess(15)
|
|
10.13
|
Director’s Compensation Agreement between Chapin State Bank and Dean H. Hess(16)
|
|
13
|
2011 Annual Report to Stockholders
|
|
14
|
Code of Ethics(17)
|
|
21
|
Subsidiaries
|
|
23
|
Consent of BKD LLP to incorporate financial statements into Registration Statement on Form S-8
|
|
31.1
|
Certification required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
(1)
|
Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(2)
|
Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(3)
|
Incorporated by reference to Exhibit 4 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(4)
|
Incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2009 (File No. 000-49792).
|
|
(5)
|
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 4, 2008 (File No. 000-49792).
|
|
(6)
|
Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 4, 2008 (File No. 000-49792).
|
|
(7)
|
Incorporated by reference to Exhibit 10.1 to the Registration Statement on Form S-8 filed with the Securities and Exchange Commission on February 2, 2004 (File No. 333-112420).
|
|
(8)
|
Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-8 filed with the Securities and Exchange Commission on February 2, 2004 (File No. 333-112420).
|
|
(9)
|
Incorporated by reference to Exhibit 10.6 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(10)
|
Incorporated by reference to Exhibit 10.8 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(11)
|
Incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 4, 2008 (File No. 000-49792).
|
|
(12)
|
Incorporated by reference to Exhibit 10.10 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(13)
|
Incorporated by reference to Exhibit 10.11 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(14)
|
Incorporated by reference to Exhibit 10.12 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(15)
|
Incorporated by reference to Exhibit 10.13 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(16)
|
Incorporated by reference to Exhibit 10.14 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(17)
|
Incorporated by reference to Exhibit 14 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2004 (File No. 000-49792).
|
Jacksonville Bancorp, Inc.
|
||
Date: March 19, 2012
|
By:
|
/s/ Richard A. Foss
|
Richard A. Foss, President
|
||
and Chief Executive Officer
|
By:
|
/s/ Richard A. Foss
|
By:
|
/s/ Andrew F. Applebee
|
|
Richard A. Foss, President,
|
Andrew F. Applebee, Chairman of the Board
|
|||
Chief Executive Officer and Director
|
||||
Date: March 19, 2012
|
Date: March 19, 2012
|
|||
By:
|
/s/ Diana S. Tone
|
By:
|
/s/ Dean H. Hess
|
|
Diana S. Tone
|
Dean H. Hess, Director
|
|||
Chief Financial Officer
|
||||
Date: March 19, 2012
|
Date: March 19, 2012
|
|||
By:
|
/s/ John L. Eyth
|
By:
|
/s/ Emily J. Osburn
|
|
John L. Eyth, Director
|
Emily J. Osburn, Director
|
|||
Date: March 19, 2012
|
Date: March 19, 2012
|
|||
By:
|
/s/ Harmon B. Deal III
|
By:
|
/s/ John C. Williams
|
|
Harmon B. Deal, III, Director
|
John C. Williams, Director
|
|||
|
Senior Vice President and Trust Officer
|
|||
Date: March 19, 2012
|
Date: March 19, 2012
|
|||
By:
|
/s/ John M. Buchanan
|
|||
John M. Buchanan, Director
|
3.1
|
Articles of Incorporation(1)
|
|
3.2
|
Bylaws(2)
|
|
4
|
Stock Certificate of Jacksonville Bancorp, Inc.(3)
|
|
10.1
|
Employment Agreement between Jacksonville Savings Bank and Andrew F. Applebee(4)
|
|
10.2
|
Employment Agreement between Jacksonville Savings Bank and Richard A. Foss(5)
|
|
10.3
|
Employment Agreement between Jacksonville Savings Bank and John Williams(6)
|
|
10.4
|
Jacksonville Savings Bank and Jacksonville Bancorp, MHC 1996 Stock Option Plan(7)
|
|
10.5
|
Jacksonville Savings Bank 2001 Stock Option Plan(8)
|
|
10.6
|
Amendments to the Jacksonville Savings Bank and Jacksonville Bancorp, MHC Stock Option Plans(9)
|
|
10.7
|
Jacksonville Savings Bank Supplemental Life Insurance Plan(10)
|
|
10.8
|
Jacksonville Savings Bank Salary Continuation Plan 1(11)
|
|
10.9
|
Jacksonville Savings Bank Long-Term Deferred Compensation Plan, as amended(12)
|
|
10.10
|
Deferred Compensation Agreement between Chapin State Bank and John C. Williams(13)
|
|
10.11
|
Director’s Compensation Agreement between Chapin State Bank and John C. Williams(14)
|
|
10.12
|
Deferred Compensation Agreement between Chapin State Bank and Dean H. Hess(15)
|
|
10.13
|
Director’s Compensation Agreement between Chapin State Bank and Dean H. Hess(16)
|
|
13
|
2011 Annual Report to Stockholders
|
|
14
|
Code of Ethics(17)
|
|
21
|
Subsidiaries
|
|
23
|
Consent of BKD LLP to incorporate financial statements into Registration Statement on Form S-8
|
|
31.1
|
Certification required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
(1)
|
Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(2)
|
Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(3)
|
Incorporated by reference to Exhibit 4 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(4)
|
Incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2009 (File No. 000-49792).
|
|
(5)
|
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 4, 2008 (File No. 000-49792).
|
|
(6)
|
Incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 4, 2008 (File No. 000-49792).
|
|
(7)
|
Incorporated by reference to Exhibit 10.1 to the Registration Statement on Form S-8 filed with the Securities and Exchange Commission on February 2, 2004 (File No. 333-112420).
|
|
(8)
|
Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-8 filed with the Securities and Exchange Commission on February 2, 2004 (File No. 333-112420).
|
|
(9)
|
Incorporated by reference to Exhibit 10.6 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(10)
|
Incorporated by reference to Exhibit 10.8 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(11)
|
Incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 4, 2008 (File No. 000-49792).
|
|
(12)
|
Incorporated by reference to Exhibit 10.10 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(13)
|
Incorporated by reference to Exhibit 10.11 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
(14)
|
Incorporated by reference to Exhibit 10.12 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(15)
|
Incorporated by reference to Exhibit 10.13 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(16)
|
Incorporated by reference to Exhibit 10.14 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 12, 2010 (File No. 333-165466).
|
|
(17)
|
Incorporated by reference to Exhibit 14 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2004 (File No. 000-49792).
|
Jacksonville Bancorp, Inc.
2011 Annual Report
|
Page
|
|
Business of the Company
|
1
|
Selected Consolidated Financial Information
|
2-3
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
4-19
|
Report of Independent Registered Public Accounting Firm
|
20
|
Consolidated Financial Statements
|
21-28
|
Notes to Consolidated Financial Statements
|
29-82
|
Common Stock Information
|
83
|
Directors and Officers
|
84
|
Corporate Information
|
85
|
Annual Meeting
|
85
|
At December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Selected Financial Condition Data:
|
||||||||||||||||||||
Total assets
|
$ | 307,289 | $ | 301,481 | $ | 288,846 | $ | 288,275 | $ | 288,489 | ||||||||||
Cash and cash equivalents
|
11,388 | 8,943 | 15,696 | 7,145 | 12,175 | |||||||||||||||
Investment securities
|
62,258 | 52,872 | 37,196 | 50,988 | 66,295 | |||||||||||||||
Mortgage-backed securities
|
40,364 | 41,995 | 40,984 | 27,795 | 15,415 | |||||||||||||||
Loans, net(1)
|
171,312 | 176,722 | 174,497 | 184,337 | 177,728 | |||||||||||||||
Federal Home Loan Bank of Chicago stock, at cost
|
1,114 | 1,114 | 1,109 | 1,109 | 1,109 | |||||||||||||||
Foreclosed assets, net
|
435 | 460 | 383 | 769 | 364 | |||||||||||||||
Bank owned life insurance
|
4,403 | 4,239 | 4,095 | 3,907 | 3,186 | |||||||||||||||
Deposits
|
254,240 | 256,424 | 254,700 | 238,151 | 245,721 | |||||||||||||||
Federal Home Loan Bank of Chicago advances
|
— | — | — | 13,500 | 10,000 | |||||||||||||||
Short-term borrowings
|
6,518 | 4,018 | 3,789 | 7,633 | 4,936 | |||||||||||||||
Stockholders’ equity
|
41,165 | 35,678 | 25,263 | 24,259 | 22,618 |
For the Years Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||||||
Selected Operating Data:
|
||||||||||||||||||||
Interest income
|
$ | 13,867 | $ | 13,529 | $ | 14,420 | $ | 15,908 | $ | 15,609 | ||||||||||
Interest expense
|
2,879 | 3,953 | 5,432 | 7,716 | 9,056 | |||||||||||||||
Net interest income
|
10,988 | 9,576 | 8,988 | 8,192 | 6,553 | |||||||||||||||
Provision for loan losses
|
625 | 1,725 | 2,575 | 310 | 155 | |||||||||||||||
Net interest income after provision for loan losses
|
10,363 | 7,851 | 6,413 | 7,882 | 6,398 | |||||||||||||||
Noninterest income
|
3,996 | 4,197 | 4,209 | 3,161 | 2,492 | |||||||||||||||
Noninterest expense
|
9,814 | 9,576 | 9,126 | 9,221 | 8,261 | |||||||||||||||
Income before income tax
|
4,545 | 2,472 | 1,497 | 1,822 | 629 | |||||||||||||||
Provision for income taxes
|
1,259 | 406 | 101 | 304 | 10 | |||||||||||||||
Net income
|
$ | 3,286 | $ | 2,066 | $ | 1,396 | $ | 1,518 | $ | 619 | ||||||||||
Earnings per share:
|
||||||||||||||||||||
Basic
|
$ | 1.74 | $ | 1.09 | $ | 0.72 | $ | 0.76 | $ | 0.31 | ||||||||||
Diluted
|
$ | 1.74 | $ | 1.08 | $ | 0.72 | $ | 0.76 | $ | 0.31 | ||||||||||
Dividends per share
|
$ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 |
At or For the Years Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
Selected Financial Ratios and Other Data:
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on average assets (ratio of net income to average total assets)
|
1.08 | % | 0.70 | % | 0.47 | % | 0.52 | % | 0.22 | % | ||||||||||
Return on average equity (ratio of net income to average equity)
|
8.57 | % | 6.77 | % | 5.69 | % | 6.59 | % | 2.86 | % | ||||||||||
Interest rate spread(1)
|
3.68 | % | 3.30 | % | 3.08 | % | 2.70 | % | 2.15 | % | ||||||||||
Net interest margin(2)
|
3.87 | % | 3.51 | % | 3.30 | % | 3.01 | % | 2.53 | % | ||||||||||
Efficiency ratio(3)
|
65.50 | % | 69.53 | % | 69.15 | % | 81.22 | % | 91.33 | % | ||||||||||
Dividend pay-out ratio(4)
|
17.14 | % | 20.37 | % | 18.96 | % | 18.75 | % | 45.94 | % | ||||||||||
Non-interest expense to average total assets
|
3.23 | % | 3.25 | % | 3.10 | % | 3.14 | % | 2.95 | % | ||||||||||
Average interest-earning assets to average
interest-bearing liabilities
|
118.84 | % | 114.78 | % | 111.14 | % | 110.66 | % | 110.69 | % | ||||||||||
Average equity to average total assets
|
12.60 | % | 10.37 | % | 8.33 | % | 7.85 | % | 7.79 | % | ||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Non-performing assets to total assets
|
0.92 | % | 1.19 | % | 0.81 | % | 0.68 | % | 0.51 | % | ||||||||||
Non-performing loans to total loans
|
1.38 | % | 1.75 | % | 1.11 | % | 0.64 | % | 0.61 | % | ||||||||||
Allowance for loan losses to non-performing loans
|
137.33 | % | 94.56 | % | 117.20 | % | 162.47 | % | 161.90 | % | ||||||||||
Allowance for loan losses to gross loans(5)
|
1.89 | % | 1.65 | % | 1.29 | % | 1.04 | % | 0.98 | % | ||||||||||
Capital Ratios (Bank):
|
||||||||||||||||||||
Total capital (to risk-weighted assets)
|
16.67 | % | 14.77 | % | 11.83 | % | 10.94 | % | 11.32 | % | ||||||||||
Tier I capital (to risk-weighted assets)
|
15.42 | % | 13.52 | % | 10.70 | % | 10.02 | % | 10.38 | % | ||||||||||
Tier I capital (to total assets)
|
10.35 | % | 9.25 | % | 7.44 | % | 7.30 | % | 7.02 | % | ||||||||||
Other Data:
|
||||||||||||||||||||
Number of offices
|
7 | 7 | 7 | 7 | 7 | |||||||||||||||
Full time equivalent employees
|
104 | 104 | 106 | 106 | 109 |
(1)
|
The interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted- average cost of interest-bearing liabilities for the period.
|
(2)
|
The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
|
(3)
|
The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
|
(4)
|
The dividend payout ratio represents dividends declared per share divided by net income per share.
|
(5)
|
Gross loans include loans held for sale.
|
12/31/11
|
12/31/10
|
|||||||
(Dollars in thousands)
|
||||||||
Non-accrual loans:
|
||||||||
Real estate loans:
|
||||||||
One- to four-family residential
|
$ | 1,298 | $ | 1,019 | ||||
Commercial
|
362 | 1,359 | ||||||
Agricultural
|
— | — | ||||||
Home equity
|
423 | 566 | ||||||
Commercial business loans
|
67 | 85 | ||||||
Agricultural business loans
|
— | — | ||||||
Consumer loans
|
251 | 106 | ||||||
Total non-accrual loans
|
2,401 | 3,135 | ||||||
Loans delinquent 90 days or greater and still accruing:
|
||||||||
Real estate loans:
|
||||||||
One- to four-family residential
|
— | — | ||||||
Commercial
|
— | — | ||||||
Agricultural
|
— | — | ||||||
Home equity
|
— | — | ||||||
Commercial business loans
|
— | — | ||||||
Agricultural business loans
|
— | — | ||||||
Consumer loans
|
— | — | ||||||
Total loans delinquent 90 days or greater and still accruing
|
— | — | ||||||
Total non-performing loans
|
2,401 | 3,135 | ||||||
Other real estate owned and foreclosed assets:
|
||||||||
Real estate loans:
|
||||||||
One- to four-family residential
|
19 | 207 | ||||||
Commercial
|
416 | 253 | ||||||
Agricultural
|
— | — | ||||||
Home equity
|
— | — | ||||||
Commercial business loans
|
— | — | ||||||
Agricultural business loans
|
— | — | ||||||
Consumer loans
|
— | — | ||||||
Total other real estate owned and foreclosed assets
|
435 | 460 | ||||||
Total non-performing assets
|
$ | 2,836 | $ | 3,595 | ||||
Ratios:
|
||||||||
Non-performing loans to total loans
|
1.38 | % | 1.75 | % | ||||
Non-performing assets to total assets
|
0.92 | 1.19 |
12/31/11
|
12/31/10
|
|||||||
(In thousands)
|
||||||||
Special Mention loans
|
$ | 3,311 | $ | 3,943 | ||||
Substandard loans
|
6,599 | 6,975 | ||||||
Total Special Mention and Substandard loans
|
$ | 9,910 | $ | 10,918 |
For the Years Ended December 31, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Average
Outstanding
Balance
|
Interest
|
Yield/
Rate
|
Average
Outstanding
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans (1)
|
$ | 177,597 | $ | 10,697 | 6.02 | % | $ | 177,840 | $ | 10,915 | 6.14 | % | ||||||||||||
Investment securities (2)
|
56,733 | 2,031 | 3.58 | 48,651 | 1,719 | 3.53 | ||||||||||||||||||
Mortgage-backed securities
|
42,832 | 1,129 | 2.64 | 36,796 | 884 | 2.40 | ||||||||||||||||||
Cash and cash equivalents
|
6,658 | 10 | 0.15 | 9,371 | 11 | 0.12 | ||||||||||||||||||
Total interest-earning assets
|
283,820 | 13,867 | 4.89 | % | 272,658 | 13,529 | 4.96 | % | ||||||||||||||||
Non-interest-earning assets
|
20,241 | 21,935 | ||||||||||||||||||||||
Total assets
|
$ | 304,061 | $ | 294,593 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest bearing checking
|
$ | 35,150 | $ | 87 | 0.25 | % | $ | 31,164 | $ | 98 | 0.32 | % | ||||||||||||
Savings accounts
|
29,057 | 134 | 0.46 | 26,686 | 177 | 0.66 | ||||||||||||||||||
Certificates of deposit
|
136,353 | 2,439 | 1.79 | 144,362 | 3,366 | 2.33 | ||||||||||||||||||
Money market savings
|
27,508 | 173 | 0.63 | 27,058 | 258 | 0.95 | ||||||||||||||||||
Money market deposits
|
6,182 | 29 | 0.47 | 5,431 | 43 | 0.79 | ||||||||||||||||||
Total interest-bearing deposits
|
234,250 | 2,862 | 1.22 | 234,701 | 3,942 | 1.68 | ||||||||||||||||||
Federal Home Loan Bank
advances
|
159 | 1 | 0.30 | — | — | 0.00 | ||||||||||||||||||
Short-term borrowings
|
4,408 | 16 | 0.37 | 2,847 | 11 | 0.39 | ||||||||||||||||||
Total borrowings
|
4,567 | 17 | 0.37 | 2,847 | 11 | 0.39 | ||||||||||||||||||
Total interest-bearing liabilities
|
238,817 | 2,879 | 1.21 | % | 237,548 | 3,953 | 1.66 | % | ||||||||||||||||
Non-interest-bearing liabilities
|
26,926 | 26,504 | ||||||||||||||||||||||
Total liabilities
|
265,743 | 264,052 | ||||||||||||||||||||||
Stockholders’ equity
|
38,318 | 30,541 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 304,061 | $ | 294,593 | ||||||||||||||||||||
Net interest income
|
$ | 10,988 | $ | 9,576 | ||||||||||||||||||||
Net interest rate spread (3)
|
3.68 | % | 3.30 | % | ||||||||||||||||||||
Net interest-earning assets (4)
|
$ | 45,003 | $ | 35,110 | ||||||||||||||||||||
Net interest margin (5)
|
3.87 | % | 3.51 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
118.84 | % | 114.78 | % |
(1)
|
Includes non-accrual loans and loans held for sale and fees of $109,000 for 2011 and $93,000 for 2010.
|
(2)
|
Includes Federal Home Loan Bank stock and U.S. Agency securities.
|
(3)
|
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(4)
|
Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
|
(5)
|
Net interest margin represents net interest income divided by average total interest-earning assets.
|
Years Ended December 31, | ||||||||||||
2011 vs. 2010
|
||||||||||||
Increase (Decrease)
Due to
|
Total
Increase (Decrease)
|
|||||||||||
Rate
|
Volume
|
|||||||||||
(In thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans
|
$ | (204 | ) | $ | (15 | ) | $ | (219 | ) | |||
Investment securities
|
24 | 289 | 313 | |||||||||
Mortgage-backed securities
|
91 | 154 | 245 | |||||||||
Cash and cash equivalents
|
3 | (4 | ) | (1 | ) | |||||||
Total interest-earning assets
|
$ | (86 | ) | $ | 424 | $ | 338 | |||||
Interest-bearing liabilities:
|
||||||||||||
Interest bearing checking
|
$ | (23 | ) | $ | 12 | $ | (11 | ) | ||||
Savings accounts
|
(58 | ) | 14 | (44 | ) | |||||||
Certificates of deposit
|
(748 | ) | (178 | ) | (926 | ) | ||||||
Money market savings
|
(89 | ) | 4 | (85 | ) | |||||||
Money market deposits
|
(19 | ) | 5 | (14 | ) | |||||||
Total interest-bearing deposits
|
(937 | ) | (143 | ) | (1,080 | ) | ||||||
Federal Home Loan Bank advances
|
1 | - | 1 | |||||||||
Short-term borrowings
|
(1 | ) | 6 | 5 | ||||||||
- | 6 | 6 | ||||||||||
Total interest-bearing liabilities
|
(937 | ) | (137 | ) | (1,074 | ) | ||||||
Change in net interest income
|
$ | 851 | $ | 561 | $ | 1,412 |
Change in Net Interest Income
|
||||||||||||||||||||
December 31, 2011
|
December 31, 2010
|
ALCO
Benchmark |
||||||||||||||||||
Rate Shock
|
$ Change
|
% Change
|
$ Change
|
% Change
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
+300 basis points
|
(160 | ) | (1.36 | ) | (2 | ) | (0.02 | ) |
>(20.00
|
)% | ||||||||||
+200 basis points
|
(84 | ) | (0.71 | ) | 64 | 0.57 |
>(20.00
|
)% | ||||||||||||
+100 basis points
|
(21 | ) | (0.18 | ) | 134 | 1.19 |
>(12.50
|
)% | ||||||||||||
(100) basis points
|
(200 | ) | (1.70 | ) | (36 | ) | (0.32 | ) |
>(12.50
|
)% | ||||||||||
(200) basis points
|
(415 | ) | (3.51 | ) | (385 | ) | (3.42 | ) |
>(20.00
|
)% | ||||||||||
(300) basis points
|
(643 | ) | (5.44 | ) | (619 | ) | (5.49 | ) |
>(20.00
|
)% |
December 31, 2011
|
December 31, 2010
|
|||||||
(In thousands)
|
||||||||
Commitments to fund loans
|
$ | 40,878 | $ | 36,871 | ||||
Standby letters of credit
|
401 | 453 |
Minimum Required
|
December 31, 2011
Actual
|
December 31, 2010
Actual
|
||||||||||
Tier 1 Capital to Average Assets
|
4.00 | % | 10.35 | % | 9.25 | % | ||||||
Tier 1 Capital to Risk-Weighted Assets
|
4.00 | % | 15.42 | % | 13.52 | % | ||||||
Total Capital to Risk-Weighted Assets
|
8.00 | % | 16.67 | % | 14.77 | % |
2011
|
2010
|
|||||||
Cash and due from banks
|
$ | 2,805,490 | $ | 2,799,482 | ||||
Federal funds sold
|
5,000,000 | 4,100,000 | ||||||
Interest-earning demand deposits in banks
|
3,582,457 | 2,043,918 | ||||||
Cash and cash equivalents
|
11,387,947 | 8,943,400 | ||||||
Interest-earning time deposits in banks
|
2,476,000 | — | ||||||
Available-for-sale securities:
|
||||||||
Investment securities
|
62,257,962 | 52,871,871 | ||||||
Mortgage-backed securities
|
40,364,086 | 41,994,850 | ||||||
Other investments
|
116,088 | 130,049 | ||||||
Loans held for sale
|
446,818 | 280,000 | ||||||
Loans, net of allowance for loan losses of $3,296,607 and $2,964,285 at December 31, 2011 and 2010
|
170,865,102 | 176,442,118 | ||||||
Premises and equipment, net of accumulated depreciation of $7,843,394 and $7,523,691 at December 31, 2011 and 2010
|
5,532,720 | 5,659,074 | ||||||
Federal Home Loan Bank stock
|
1,113,800 | 1,113,800 | ||||||
Foreclosed assets held for sale, net
|
435,480 | 459,877 | ||||||
Cash surrender value of life insurance
|
4,402,602 | 4,238,915 | ||||||
Interest receivable
|
2,071,534 | 1,872,779 | ||||||
Deferred income taxes
|
413,110 | 1,620,994 | ||||||
Income taxes receivable
|
47,433 | — | ||||||
Mortgage servicing rights, net of valuation allowance of $173,791 and $163,989 as of December 31, 2011 and 2010
|
697,733 | 797,327 | ||||||
Goodwill
|
2,726,567 | 2,726,567 | ||||||
Other assets
|
1,934,375 | 2,329,232 | ||||||
Total assets
|
$ | 307,289,357 | $ | 301,480,853 |
2011
|
2010
|
|||||||
Liabilities
|
||||||||
Deposits
|
||||||||
Demand
|
$ | 22,752,901 | $ | 19,856,437 | ||||
Savings, NOW and money market
|
100,170,389 | 91,288,015 | ||||||
Time
|
131,316,770 | 145,279,195 | ||||||
Total deposits
|
254,240,060 | 256,423,647 | ||||||
Short-term borrowings
|
6,517,750 | 4,018,235 | ||||||
Deferred compensation
|
3,295,827 | 3,060,637 | ||||||
Advances from borrowers for taxes and insurance
|
740,083 | 629,788 | ||||||
Interest payable
|
349,121 | 556,257 | ||||||
Other liabilities
|
981,093 | 1,114,139 | ||||||
Total liabilities
|
266,123,934 | 265,802,703 | ||||||
Stockholders’ Equity
|
||||||||
Preferred stock, $.01 par value, authorized 10,000,000 shares;
none issued and outstanding |
— | — | ||||||
Common stock, $.01 par value; authorized 25,000,000 shares; issued 1,920,955 – December 31, 2011 and 1,923,689 – December 31, 2010
|
19,210 | 19,237 | ||||||
Additional paid-in capital
|
16,066,624 | 16,159,960 | ||||||
Retained earnings – substantially restricted
|
22,767,719 | 20,045,095 | ||||||
Accumulated other comprehensive income (loss)
|
2,672,490 | (150,802 | ) | |||||
Unallocated ESOP shares
|
(360,620 | ) | (395,340 | ) | ||||
Total stockholders’ equity
|
41,165,423 | 35,678,150 | ||||||
Total liabilities and stockholders’ equity
|
$ | 307,289,357 | $ | 301,480,853 |
2011
|
2010
|
|||||||
Interest and Fee Income
|
||||||||
Loans, including fees
|
$ | 10,696,562 | $ | 10,915,275 | ||||
Debt securities
|
||||||||
Taxable
|
584,342 | 465,419 | ||||||
Tax-exempt
|
1,446,810 | 1,253,011 | ||||||
Mortgage-backed securities
|
1,129,544 | 884,229 | ||||||
Other
|
10,021 | 11,468 | ||||||
Total interest income
|
13,867,279 | 13,529,402 | ||||||
Interest Expense
|
||||||||
Deposits
|
2,862,768 | 3,942,161 | ||||||
Short-term borrowings
|
16,187 | 11,159 | ||||||
Federal Home Loan Bank advances
|
473 | — | ||||||
Total interest expense
|
2,879,428 | 3,953,320 | ||||||
Net Interest Income
|
10,987,851 | 9,576,082 | ||||||
Provision for Loan Losses
|
625,000 | 1,725,000 | ||||||
Net Interest Income After Provision for Loan Losses
|
10,362,851 | 7,851,082 | ||||||
Noninterest Income
|
||||||||
Fiduciary activities
|
236,838 | 205,746 | ||||||
Commission income
|
1,332,247 | 1,072,276 | ||||||
Service charges on deposit accounts
|
922,916 | 1,000,534 | ||||||
Mortgage banking operations, net
|
304,793 | 521,452 | ||||||
Net realized gains on sales of available-for-sale securities
|
281,810 | 451,805 | ||||||
Loan servicing fees
|
369,046 | 369,733 | ||||||
Increase in cash surrender value of life insurance
|
156,112 | 171,863 | ||||||
Other
|
392,121 | 403,796 | ||||||
Total noninterest income
|
3,995,883 | 4,197,205 |
2011
|
2010
|
|||||||
Noninterest Expense
|
||||||||
Salaries and employee benefits
|
$ | 6,229,964 | $ | 5,865,742 | ||||
Occupancy and equipment
|
1,010,415 | 1,023,853 | ||||||
Data processing and telecommunications
|
560,396 | 475,867 | ||||||
Professional
|
195,870 | 181,922 | ||||||
Marketing
|
115,790 | 130,994 | ||||||
Postage and office supplies
|
281,595 | 279,349 | ||||||
Deposit insurance premium
|
228,925 | 417,993 | ||||||
Impairment on mortgage servicing rights asset
|
58,818 | 100,809 | ||||||
Other
|
1,132,184 | 1,099,818 | ||||||
Total noninterest expense
|
9,813,957 | 9,576,347 | ||||||
Income Before Income Taxes
|
4,544,777 | 2,471,940 | ||||||
Provision for Income Taxes
|
1,259,094 | 405,480 | ||||||
Net Income
|
$ | 3,285,683 | $ | 2,066,460 | ||||
Basic Earnings Per Share
|
$ | 1.74 | $ | 1.09 | ||||
Diluted Earnings Per Share
|
$ | 1.74 | $ | 1.08 | ||||
Cash Dividends Per Share
|
$ | 0.30 | $ | 0.30 |
Additional
|
||||||||||||||||
Issued Common Stock
|
Paid-in
|
Retained
|
||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
|||||||||||||
Balance, January 1, 2010
|
1,987,904 | $ | 19,879 | $ | 6,634,591 | $ | 18,399,506 | |||||||||
Net income
|
— | — | — | 2,066,460 | ||||||||||||
Other comprehensive income
|
— | — | — | — | ||||||||||||
Total comprehensive income
|
||||||||||||||||
Corporate reorganization:
|
||||||||||||||||
Merger of Jacksonville Bancorp, MHC
|
(1,038,738 | ) | (10,387 | ) | 799,479 | — | ||||||||||
Treasury stock retired
|
(67,087 | ) | (671 | ) | (485,710 | ) | — | |||||||||
Exchange of common stock
|
1,258 | 12 | (1,542 | ) | — | |||||||||||
Proceeds from stock offering, net of expenses of $1,180,415
|
1,040,352 | 10,404 | 9,212,701 | — | ||||||||||||
Purchase of shares for ESOP
|
— | — | — | — | ||||||||||||
Common shares held by ESOP, committed to be released
|
— | — | 441 | — | ||||||||||||
Dividends on common stock, $.30 per share
|
— | — | — | (420,871 | ) | |||||||||||
Balance, December 31, 2010
|
1,923,689 | 19,237 | 16,159,960 | 20,045,095 | ||||||||||||
Net income
|
— | — | — | 3,285,683 | ||||||||||||
Other comprehensive income
|
— | — | — | — | ||||||||||||
Total comprehensive income
|
||||||||||||||||
Stock repurchases
|
(10,000 | ) | (100 | ) | (137,900 | ) | — | |||||||||
Exercise of stock options
|
21,661 | 217 | 211,351 | — | ||||||||||||
Less purchase/retirement of stock
|
(14,395 | ) | (144 | ) | (181,797 | ) | — | |||||||||
Tax benefit of nonqualified options
|
— | — | 4,609 | — | ||||||||||||
Common shares held by ESOP, committed to be released
|
— | — | 10,401 | — | ||||||||||||
Dividends on common stock, $.30 per share
|
— | — | — | (563,059 | ) | |||||||||||
Balance, December 31, 2011
|
1,920,955 | $ | 19,210 | $ | 16,066,624 | $ | 22,767,719 |
Accumulated
|
||||||||||||||||
Other
|
||||||||||||||||
Comprehensive
|
Unallocated
|
Treasury
|
||||||||||||||
Income (Loss)
|
ESOP
|
Stock
|
Total
|
|||||||||||||
Balance, January 1, 2010
|
$ | 695,825 | $ | — | $ | (486,381 | ) | $ | 25,263,420 | |||||||
Net income
|
— | — | — | 2,066,460 | ||||||||||||
Other comprehensive income
|
(846,627 | ) | — | — | (846,627 | ) | ||||||||||
Total comprehensive income
|
1,219,833 | |||||||||||||||
Corporate reorganization:
|
||||||||||||||||
Merger of Jacksonville Bancorp, MHC
|
— | — | — | 789,092 | ||||||||||||
Treasury stock retired
|
— | — | 486,381 | — | ||||||||||||
Exchange of common stock
|
— | — | — | (1,530 | ) | |||||||||||
Proceeds from stock offering, net of expenses of $1,180,415
|
— | — | — | 9,223,105 | ||||||||||||
Purchase of shares for ESOP
|
— | (416,140 | ) | — | (416,140 | ) | ||||||||||
Common shares held by ESOP, committed to be released
|
— | 20,800 | — | 21,241 | ||||||||||||
Dividends on common stock, $.30 per share
|
— | — | — | (420,871 | ) | |||||||||||
Balance, December 31, 2010
|
(150,802 | ) | (395,340 | ) | — | 35,678,150 | ||||||||||
Net income
|
— | — | — | 3,285,683 | ||||||||||||
Other comprehensive income
|
2,823,292 | — | — | 2,823,292 | ||||||||||||
Total comprehensive income
|
6,108,975 | |||||||||||||||
Stock repurchases
|
— | — | — | (138,000 | ) | |||||||||||
Exercise of stock options
|
— | — | — | 211,568 | ||||||||||||
Less purchase/retirement of stock
|
— | — | — | (181,941 | ) | |||||||||||
Tax benefit of nonqualified options
|
— | — | — | 4,609 | ||||||||||||
Common shares held by ESOP, committed to be released
|
— | 34,720 | — | 45,121 | ||||||||||||
Dividends on common stock, $.30 per share
|
— | — | — | (563,059 | ) | |||||||||||
Balance, December 31, 2011
|
$ | 2,672,490 | $ | (360,620 | ) | $ | — | $ | 41,165,423 | |||||||
2011
|
2010
|
|||||||
Operating Activities
|
||||||||
Net income
|
$ | 3,285,683 | $ | 2,066,460 | ||||
Items not requiring (providing) cash
|
||||||||
Depreciation and amortization
|
321,730 | 355,670 | ||||||
Provision for loan losses
|
625,000 | 1,725,000 | ||||||
Amortization of premiums and discounts on securities and loans
|
516,317 | 786,494 | ||||||
Deferred income taxes
|
(246,539 | ) | (460,714 | ) | ||||
Net realized gains on available-for-sale securities
|
(281,810 | ) | (451,805 | ) | ||||
Amortization of mortgage servicing rights
|
276,014 | 396,017 | ||||||
Impairment of mortgage servicing rights asset
|
58,818 | 100,809 | ||||||
Increase in cash surrender value of life insurance
|
(163,687 | ) | (144,252 | ) | ||||
(Gains) losses on sales of foreclosed assets
|
(19,840 | ) | 1,164 | |||||
Shares held by ESOP committed to be released
|
45,121 | 21,241 | ||||||
Changes in
|
||||||||
Interest receivable
|
(198,755 | ) | 115,615 | |||||
Other assets
|
(164,597 | ) | (828,451 | ) | ||||
Interest payable
|
(207,136 | ) | (178,646 | ) | ||||
Other liabilities
|
54,711 | 593,919 | ||||||
Origination of loans held for sale
|
(32,048,301 | ) | (46,367,505 | ) | ||||
Proceeds from sales of loans held for sale
|
32,227,052 | 47,375,208 | ||||||
Net cash provided by operating activities
|
4,079,781 | 5,106,224 | ||||||
Investing Activities
|
||||||||
Net change in interest-bearing deposits
|
(2,476,000 | ) | — | |||||
Purchases of available-for-sale securities
|
(48,099,957 | ) | (71,217,559 | ) | ||||
Proceeds from maturities and payments of available-for-sale securities
|
16,020,469 | 27,714,036 | ||||||
Proceeds from the sales of available-for-sale investments and other investments
|
28,375,527 | 25,211,312 | ||||||
Net change in loans
|
4,646,656 | (5,008,693 | ) | |||||
Purchase of premises and equipment
|
(195,376 | ) | (247,886 | ) | ||||
Proceeds from the sale of foreclosed assets
|
334,047 | 442,198 | ||||||
Net cash used in investing activities
|
(1,394,634 | ) | (23,106,592 | ) |
2011
|
2010
|
|||||||
Financing Activities
|
||||||||
Net increase in demand deposits, money market, NOW and savings accounts
|
$ | 11,778,838 | $ | 2,064,295 | ||||
Net decrease in certificates of deposit
|
(13,962,425 | ) | (340,871 | ) | ||||
Net increase in short-term borrowings
|
2,499,515 | 228,782 | ||||||
Net increase in advances from borrowers for taxes and insurance
|
110,295 | 121,432 | ||||||
Stock repurchase
|
(138,000 | ) | — | |||||
Merger of Jacksonville Bancorp, MHC
|
— | 789,092 | ||||||
Cash paid for fractional shares in exchange
|
— | (1,530 | ) | |||||
Net proceeds from stock offering
|
— | 9,223,105 | ||||||
Purchase of shares for ESOP
|
— | (416,140 | ) | |||||
Proceeds from stock options exercised
|
34,236 | — | ||||||
Dividends paid
|
(563,059 | ) | (420,871 | ) | ||||
Net cash provided by (used in) financing activities
|
(240,600 | ) | 11,247,294 | |||||
Increase (Decrease) in Cash and Cash Equivalents
|
2,444,547 | (6,753,074 | ) | |||||
Cash and Cash Equivalents, Beginning of Year
|
8,943,400 | 15,696,474 | ||||||
Cash and Cash Equivalents, End of Year
|
$ | 11,387,947 | $ | 8,943,400 | ||||
Supplemental Cash Flows Information
|
||||||||
Interest paid
|
$ | 3,086,564 | $ | 4,131,966 | ||||
Income taxes paid
|
$ | 1,676,000 | $ | 474,000 | ||||
Sale and financing of foreclosed assets
|
$ | 149,834 | $ | 141,430 | ||||
Real estate acquired in settlement of loans
|
$ | 460,996 | $ | 669,699 | ||||
Dividends declared not paid
|
$ | 144,073 | $ | 144,278 | ||||
Exercise and retirement of shares in stock option plan
|
$ | 29,627 | $ | — |
Note 1:
|
Nature of Operations and Summary of Significant Accounting Policies
|
|
Principles of Consolidation and Financial Statement Presentation
|
Buildings and improvements
|
35-40 years
|
Equipment
|
3-5 years
|
Note 2:
|
Second Step Conversion
|
Note 3:
|
Restriction on Cash and Due From Banks
|
Note 4:
|
Securities
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized Losses
|
Fair Value
|
|||||||||||||
Available-for-sale Securities
|
||||||||||||||||
December 31, 2011:
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | 14,132,240 | $ | 211,540 | $ | (8,137 | ) | $ | 14,335,643 | |||||||
Mortgage-backed securities (Government-sponsored enterprises - residential)
|
39,479,133 | 905,509 | (20,556 | ) | 40,364,086 | |||||||||||
Municipal bonds
|
44,961,448 | 2,995,639 | (34,768 | ) | 47,922,319 | |||||||||||
$ | 98,572,821 | $ | 4,112,688 | $ | (63,461 | ) | $ | 102,622,048 | ||||||||
December 31, 2010:
|
||||||||||||||||
U.S. Government and federal 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 |
Available-for-sale
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
Within one year
|
$ | 101,918 | $ | 102,552 | ||||
One to five years
|
9,270,559 | 9,533,995 | ||||||
Five to ten years
|
28,033,653 | 29,619,698 | ||||||
After ten years
|
21,687,558 | 23,001,717 | ||||||
59,093,688 | 62,257,962 | |||||||
Mortgage-backed securities
|
39,479,133 | 40,364,086 | ||||||
Totals
|
$ | 98,572,821 | $ | 102,622,048 |
December 31, 2011
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of
Securities
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
||||||||||||||||||
Available-for-sale Securities
|
||||||||||||||||||||||||
U.S. Government and agencies
|
$ | 1,491,864 | $ | (8,137 | ) | $ | — | $ | — | $ | 1,491,864 | $ | (8,137 | ) | ||||||||||
Mortgage-backed securities (Government-sponsored enterprises - residential)
|
4,910,314 | (18,488 | ) | 623,455 | (2,068 | ) | 5,533,769 | (20,556 | ) | |||||||||||||||
Municipal bonds
|
2,234,403 | (34,768 | ) | — | — | 2,234,403 | (34,768 | ) | ||||||||||||||||
Total temporarily impaired securities
|
$ | 8,636,581 | $ | (61,393 | ) | $ | 623,455 | $ | (2,068 | ) | $ | 9,260,036 | $ | (63,461 | ) |
December 31, 2010
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of
Securities
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
||||||||||||||||||
Available-for-sale Securities
|
||||||||||||||||||||||||
U.S. Government and agencies
|
$ | 2,433,233 | $ | (93,947 | ) | $ | — | $ | — | $ | 2,433,233 | $ | (93,947 | ) | ||||||||||
Mortgage-backed securities (Government-sponsored enterprises - residential)
|
20,455,620 | (465,384 | ) | — | — | 20,455,620 | (465,384 | ) | ||||||||||||||||
Municipal bonds
|
23,125,996 | (668,983 | ) | — | — | 23,125,996 | (668,983 | ) | ||||||||||||||||
Total temporarily impaired securities
|
$ | 46,014,849 | $ | (1,228,314 | ) | $ |
—
|
$ | — | $ | 46,014,849 | $ | (1,228,314 | ) |
Note 5:
|
Loans and Allowance for Loan Losses
|
2011
|
2010
|
|||||||
Mortgage loans on real estate
|
||||||||
Residential 1-4 family
|
$ | 39,472,008 | $ | 37,227,211 | ||||
Commercial
|
40,169,813 | 45,361,944 | ||||||
Agricultural
|
29,971,649 | 28,163,488 | ||||||
Home equity
|
16,042,788 | 19,526,162 | ||||||
Total mortgage loans on real estate
|
125,656,258 | 130,278,805 | ||||||
Commercial loans
|
23,198,454 | 22,810,203 | ||||||
Agricultural
|
9,590,745 | 8,176,396 | ||||||
Consumer
|
15,755,973 | 18,190,307 | ||||||
174,201,430 | 179,455,711 | |||||||
Less
|
||||||||
Net deferred loan fees
|
39,721 | 49,307 | ||||||
Allowance for loan losses
|
3,296,607 | 2,964,285 | ||||||
Net loans
|
$ | 170,865,102 | $ | 176,442,119 |
December 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 year
|
$ | 561,309 | $ | 1,193,928 | $ | 92,988 | $ | 472,376 | $ | 58,250 | $ | 300,257 | $ | 163,690 | $ | 121,487 | $ | 2,964,285 | ||||||||||||||||||
Provision charged to expense
|
266,296 | 195,118 | 22,166 | 83,654 | 178 | 26,863 | (6,347 | ) | 37,072 | 625,000 | ||||||||||||||||||||||||||
Losses charged off
|
(130,382 | ) | (306,303 | ) | — | — | — | (24,904 | ) | (25,289 | ) | — | (486,878 | ) | ||||||||||||||||||||||
Recoveries
|
— | 24,842 | — | 155,834 | — | 7,193 | 6,331 | — | 194,200 | |||||||||||||||||||||||||||
Balance, end of year
|
$ | 697,223 | $ | 1,107,585 | $ | 115,154 | $ | 711,864 | $ | 58,428 | $ | 309,409 | $ | 138,385 | $ | 158,559 | $ | 3,296,607 | ||||||||||||||||||
Ending balance:
individually evaluated for impairment |
$ | 36,300 | $ | 357,880 | $ | — | $ | 296,149 | $ | — | $ | — | $ | — | $ | — | $ | 690,329 | ||||||||||||||||||
Ending balance:
collectively evaluated for impairment |
$ | 660,923 | $ | 749,705 | $ | 115,154 | $ | 415,715 | $ | 58,428 | $ | 309,409 | $ | 138,385 | $ | 158,559 | $ | 2,606,278 | ||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||||
Ending balance
|
$ | 39,472,008 | $ | 40,169,813 | $ | 29,971,649 | $ | 23,198,454 | $ | 9,590,745 | $ | 16,042,788 | $ | 15,755,973 | $ | — | $ | 174,201,430 | ||||||||||||||||||
Ending balance:
individually evaluated for impairment |
$ | 551,921 | $ | 1,727,406 | $ | — | $ | 552,814 | $ | — | $ | 29,353 | $ | 7,569 | $ | — | $ | 2,869,063 | ||||||||||||||||||
Ending balance:
collectively evaluated for impairment |
$ | 38,920,087 | $ | 38,442,407 | $ | 29,971,649 | $ | 22,645,640 | $ | 9,590,745 | $ | 16,013,435 | $ | 15,748,404 | $ | — | $ | 171,332,367 |
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 | ||||||||||||||||||
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 |
1-4 Family
|
Commercial Real Estate
|
Agricultural Real Estate
|
Commercial
|
Agricultural Business
|
||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||||||||
Pass
|
$ | 36,040,795 | $ | 34,258,180 | $ | 36,936,906 | $ | 41,534,866 | $ | 29,567,057 | $ | 27,768,600 | $ | 22,253,904 | $ | 21,621,978 | $ | 9,336,899 | $ | 7,818,536 | ||||||||||||||||||||
Spec. Ment
|
1,642,602 | 1,476,077 | 574,484 | 733,561 | 404,592 | 394,888 | 3,402 | 186,598 | 253,846 | 357,860 | ||||||||||||||||||||||||||||||
Subst.
|
1,788,611 | 1,492,954 | 2,658,423 | 3,093,517 | — | — | 941,148 | 1,001,627 | — | — | ||||||||||||||||||||||||||||||
Total
|
$ | 39,472,008 | $ | 37,227,211 | $ | 40,169,813 | $ | 45,361,944 | $ | 29,971,649 | $ | 28,163,488 | $ | 23,198,454 | $ | 22,810,203 | $ | 9,590,745 | $ | 8,176,396 |
Home Equity
|
Consumer
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Rating:
|
||||||||||||||||
Pass
|
$ | 14,746,631 | $ | 18,064,116 | $ | 15,409,729 | $ | 17,471,747 | ||||||||
Special Mention
|
278,323 | 223,034 | 153,316 | 570,589 | ||||||||||||
Substandard
|
1,017,834 | 1,239,012 | 192,928 | 147,971 | ||||||||||||
Total
|
$ | 16,042,788 | $ | 19,526,162 | $ | 15,755,973 | $ | 18,190,307 |
December 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
|
||||||||||||||||||||||
1-4 Family
|
$ | 289,337 | $ | 161,654 | $ | 1,020,862 | $ | 1,471,853 | $ | 38,000,155 | $ | 39,472,008 | $ | — | ||||||||||||||
Agricultural real estate
|
— | — | — | — | 29,971,649 | 29,971,649 | — | |||||||||||||||||||||
Commercial real estate
|
75,924 | — | 48,428 | 124,352 | 40,045,461 | 40,169,813 | — | |||||||||||||||||||||
Agricultural business
|
— | — | — | — | 9,590,745 | 9,590,745 | — | |||||||||||||||||||||
Commercial:
|
— | — | — | — | 23,198,454 | 23,198,454 | — | |||||||||||||||||||||
Home equity
|
511,562 | 50,455 | 197,191 | 759,208 | 15,283,580 | 16,042,788 | — | |||||||||||||||||||||
Consumer
|
156,404 | 126,077 | 37,337 | 319,818 | 15,436,155 | 15,755,973 | — | |||||||||||||||||||||
Total
|
$ | 1,033,227 | $ | 338,186 | $ | 1,303,818 | $ | 2,675,231 | $ | 171,526,199 | $ | 174,201,430 | $ | — |
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
|
||||||||||||||||||||||
1-4 Family
|
$ | 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:
|
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 | $ | — |
December 31, 2011
|
||||||||||||||||||||||||
Recorded Balance
|
Unpaid
Principal Balance
|
Specific Allowance
|
Average Investment in Impaired
Loans |
Interest
Income Recognized
|
Interest
Income Recognized
Cash Basis
|
|||||||||||||||||||
Loans without a specific valuation allowance
|
||||||||||||||||||||||||
1-4 Family
|
$ | 235,856 | $ | 235,856 | $ | — | $ | 249,103 | $ | 10,446 | $ | 11,162 | ||||||||||||
Commercial real estate
|
69,249 | 69,249 | — | 71,972 | 457 | 254 | ||||||||||||||||||
Commercial
|
— | — | — | — | — | — | ||||||||||||||||||
Consumer
|
— | — | — | — | — | — | ||||||||||||||||||
Home equity
|
29,353 | 29,353 | — | 21,954 | 1,933 | 1,605 | ||||||||||||||||||
Loans with a specific valuation allowance
|
||||||||||||||||||||||||
1-4 family
|
316,065 | 316,065 | 36,300 | 368,040 | 25,241 | 18,341 | ||||||||||||||||||
Commercial real estate
|
1,658,157 | 1,658,157 | 357,880 | 1,726,905 | 88,084 | 117,289 | ||||||||||||||||||
Commercial
|
552,814 | 552,814 | 296,149 | 592,796 | 37,192 | 36,628 | ||||||||||||||||||
Consumer
|
7,569 | 7,569 | — | 7,569 | 37 | — | ||||||||||||||||||
Home equity
|
— | — | — | — | — | — | ||||||||||||||||||
Total:
|
||||||||||||||||||||||||
1-4 family
|
551,921 | 551,921 | 36,300 | 617,143 | 35,687 | 29,503 | ||||||||||||||||||
Commercial real estate
|
1,727,406 | 1,727,406 | 357,880 | 1,798,877 | 88,541 | 117,543 | ||||||||||||||||||
Commercial
|
552,814 | 552,814 | 296,149 | 592,796 | 37,192 | 36,628 | ||||||||||||||||||
Consumer
|
7,569 | 7,569 | — | 7,569 | 37 | — | ||||||||||||||||||
Home equity
|
29,353 | 29,353 | — | 21,954 | 1,933 | 1,605 | ||||||||||||||||||
Total
|
$ | 2,869,063 | $ | 2,869,063 | $ | 690,329 | $ | 3,038,339 | $ | 163,390 | $ | 185,279 |
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
|
— | — | — | 10,636 | 545 | |||||||||||||||
Consumer
|
— | — | — | 10,762 | 628 | |||||||||||||||
Loans with a specific valuation allowance
|
||||||||||||||||||||
1-4 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
|
606,273 | 606,273 | 72,393 | 722,393 | 36,958 | |||||||||||||||
Consumer
|
— | — | — | 5,106 | 425 | |||||||||||||||
Total:
|
||||||||||||||||||||
1-4 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
|
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 |
2011
|
2010
|
|||||||
1-4 family
|
$ | 213,966 | $ | 35,919 | ||||
Agricultural real estate
|
— | — | ||||||
Commercial real estate
|
1,075,483 | 640,788 | ||||||
Agricultural business
|
— | — | ||||||
Commercial
|
477,798 | 354,599 | ||||||
Home equity
|
125,588 | 65,990 | ||||||
Consumer
|
83,962 | 112,724 | ||||||
Total
|
$ | 1,976,797 | $ | 1,210,020 |
2011
|
2010
|
|||||||
1-4 family
|
$ | 131,990 | $ | 35,919 | ||||
Agricultural real estate
|
— | — | ||||||
Commercial real estate
|
1,007,723 | 142,856 | ||||||
Agricultural business
|
— | — | ||||||
Commercial
|
477,798 | 354,599 | ||||||
Home equity
|
95,769 | 33,085 | ||||||
Consumer
|
83,962 | 112,724 | ||||||
Total
|
$ | 1,797,242 | $ | 679,183 |
Year Ended
December 31, 2011
|
||||||||
Number of Modifications
|
Recorded Investment
|
|||||||
1-4 family
|
3 | $ | 178,046 | |||||
Agricultural real estate
|
— | — | ||||||
Commercial real estate
|
2 | 938,474 | ||||||
Agricultural business
|
— | — | ||||||
Commercial
|
5 | 143,814 | ||||||
Home equity
|
2 | 95,769 | ||||||
Consumer
|
1 | 3,430 | ||||||
Total
|
13 | $ | 1,359,533 |
2011
|
2010
|
|||||||
1-4 family
|
$ | 1,297,953 | $ | 1,019,252 | ||||
Agricultural real estate
|
— | — | ||||||
Commercial real estate
|
361,524 | 1,359,060 | ||||||
Agricultural business
|
— | — | ||||||
Commercial
|
66,852 | 84,361 | ||||||
Home equity
|
423,113 | 565,905 | ||||||
Consumer
|
251,025 | 106,159 | ||||||
Total
|
$ | 2,400,467 | $ | 3,134,737 |
Note 6:
|
Premises and Equipment
|
2011
|
2010
|
|||||||
Land
|
$ | 983,276 | $ | 983,276 | ||||
Buildings and improvements
|
7,573,247 | 7,540,045 | ||||||
Equipment
|
4,819,591 | 4,659,444 | ||||||
13,376,114 | 13,182,765 | |||||||
Less accumulated depreciation
|
(7,843,394 | ) | (7,523,691 | ) | ||||
Net premises and equipment
|
$ | 5,532,720 | $ | 5,659,074 |
Note 7:
|
Loan Servicing
|
2011
|
2010
|
|||||||
Mortgage servicing rights
|
||||||||
Balance, beginning of year
|
$ | 961,316 | $ | 1,006,755 | ||||
Additions
|
137,206 | 257,316 | ||||||
Amortization
|
(226,998 | ) | (302,755 | ) | ||||
Balance at end of year
|
871,524 | 961,316 | ||||||
Valuation allowances
|
||||||||
Balance at beginning of year
|
163,989 | 156,442 | ||||||
Additions due to decreases in market value
|
58,818 | 165,651 | ||||||
Reduction due to increases in market value
|
— | (64,842 | ) | |||||
Reduction due to payoff of loans
|
(49,016 | ) | (93,262 | ) | ||||
Balances at end of year
|
173,791 | 163,989 | ||||||
Mortgage servicing assets, net
|
$ | 697,733 | $ | 797,327 | ||||
Fair value disclosures
|
||||||||
Fair value as of the beginning of the period
|
$ | 1,012,722 | $ | 1,083,576 | ||||
Fair value as of the end of the period
|
$ | 758,175 | $ | 1,012,722 |
Note 8:
|
Interest-bearing Deposits
|
December 31,
|
||||||||
2011
|
2010
|
|||||||
Savings, NOW and Money Market
|
$ | 425,505 | $ | 579,178 | ||||
Certificates of deposit
|
2,437,263 | 3,362,983 | ||||||
Total deposit interest expense
|
$ | 2,862,768 | $ | 3,942,161 |
2012
|
$ | 77,668,683 | ||
2013
|
25,547,477 | |||
2014
|
7,744,710 | |||
2015
|
13,958,544 | |||
2016
|
6,397,356 | |||
$ | 131,316,770 |
Note 9:
|
Short-term Borrowings
|
Note 10:
|
Income Taxes
|
2011
|
2010
|
|||||||
Taxes currently payable
|
||||||||
Federal
|
$ | 1,067,443 | $ | 866,194 | ||||
State
|
438,190 | — | ||||||
Deferred income taxes
|
(246,539 | ) | (460,714 | ) | ||||
Income tax expense
|
$ | 1,259,094 | $ | 405,480 |
2011
|
2010
|
|||||||
Computed at the statutory rate (34%)
|
$ | 1,545,224 | $ | 840,459 | ||||
Increase (decrease) resulting from
|
||||||||
Tax exempt interest
|
(498,697 | ) | (427,603 | ) | ||||
Graduated tax rates
|
— | (24,719 | ) | |||||
State income taxes, net
|
268,790 | 103,306 | ||||||
Increase in cash surrender value
|
(53,078 | ) | (58,433 | ) | ||||
Other
|
(3,145 | ) | (27,530 | ) | ||||
Actual tax expense
|
$ | 1,259,094 | $ | 405,480 | ||||
Tax expense as a percentage of pre-tax income
|
27.70 | % | 16.40 | % |
2011
|
2010
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$ | 1,197,475 | $ | 1,025,297 | ||||
Deferred compensation
|
1,327,230 | 1,188,078 | ||||||
State net operating loss carryforward
|
196,811 | 117,202 | ||||||
Unrealized losses on securities available-for-sale
|
— | 77,686 | ||||||
Other
|
— | 76,054 | ||||||
2,721,516 | 2,484,317 | |||||||
Deferred tax liabilities
|
||||||||
Unrealized gains on available-for-sale securities
|
(1,376,737 | ) | — | |||||
Depreciation
|
(400,541 | ) | (322,501 | ) | ||||
Federal Home Loan Bank stock dividends
|
(152,224 | ) | (146,736 | ) | ||||
Prepaid expenses
|
(65,907 | ) | (55,226 | ) | ||||
Mortgage servicing rights
|
(285,178 | ) | (309,506 | ) | ||||
Other
|
(27,819 | ) | (29,354 | ) | ||||
(2,308,406 | ) | (863,323 | ) | |||||
Net deferred tax asset
|
$ | 413,110 | $ | 1,620,994 |
Note 11:
|
Comprehensive Income (Loss)
|
2011
|
2010
|
|||||||
Net unrealized gain (loss) on available-for-sale securities
|
$ | 4,559,525 | $ | (830,964 | ) | |||
Less reclassification adjustment for realized gains included in income
|
281,810 | 451,805 | ||||||
Other comprehensive income (loss), before tax effect
|
4,277,715 | (1,282,769 | ) | |||||
Less tax expense (benefit)
|
1,454,423 | (436,142 | ) | |||||
Other comprehensive income (loss)
|
$ | 2,823,292 | $ | (846,627 | ) |
2011
|
2010
|
|||||||
Net unrealized gain (loss) on securities available-for-sale
|
$ | 4,049,227 | $ | (228,488 | ) | |||
Tax effect
|
(1,376,737 | ) | 77,686 | |||||
Net-of-tax amount
|
$ | 2,672,490 | $ | (150,802 | ) |
Note 12:
|
Regulatory Matters
|
Actual
|
Minimum Capital
Requirement
|
Minimum to Be Well
Capitalized Under Prompt
Corrective Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of December 31, 2011
|
||||||||||||||||||||||||
Total risk-based capital
(to risk-weighted assets) |
$ | 33,667 | 16.67 | % | $ | 16,153 | 8.0 | % | $ | 20,191 | 10.0 | % | ||||||||||||
Tier I capital
(to risk-weighted assets) |
31,134 | 15.42 | 8,076 | 4.0 | 12,115 | 6.0 | ||||||||||||||||||
Tier I capital
(to average assets) |
31,134 | 10.35 | 12,032 | 4.0 | 15,040 | 5.0 | ||||||||||||||||||
Tangible capital
(to adjusted tangible assets) |
31,134 | 10.35 | 4,512 | 1.5 | — | N/A | ||||||||||||||||||
As of December 31, 2010
|
||||||||||||||||||||||||
Total risk-based capital
(to risk-weighted assets) |
$ | 30,551 | 14.77 | % | $ | 16,542 | 8.0 | % | $ | 20,678 | 10.0 | % | ||||||||||||
Tier I capital
(to risk-weighted assets) |
27,962 | 13.52 | 8,271 | 4.0 | 12,407 | 6.0 | ||||||||||||||||||
Tier I capital
(to average assets) |
27,962 | 9.25 | 12,095 | 4.0 | 15,119 | 5.0 | ||||||||||||||||||
Tangible capital
(to adjusted tangible assets) |
27,962 | 9.25 | 4,536 | 1.5 | — | N/A |
2011
|
2010
|
|||||||
Bank equity
|
$ | 36,548 | $ | 30,538 | ||||
Less net unrealized gain (loss)
|
2,672 | (151 | ) | |||||
Less disallowed goodwill
|
2,727 | 2,727 | ||||||
Less disallowed servicing amounts
|
15 | — | ||||||
Tier 1 capital
|
31,134 | 27,962 | ||||||
Plus allowance for loan losses
|
2,533 | 2,589 | ||||||
Total risked-based capital
|
$ | 33,667 | $ | 30,551 |
Note 13:
|
Related Party Transactions
|
2011
|
2010
|
|||||||
Balance beginning of year
|
$ | 2,820,414 | $ | 4,161,647 | ||||
Additions
|
1,918,418 | 5,000,975 | ||||||
Repayments
|
(1,811,455 | ) | (6,342,208 | ) | ||||
Balance, end of year
|
$ | 2,927,377 | $ | 2,820,414 |
Note 14:
|
Employee Benefits
|
2011
|
2010
|
|||||||
Allocated shares
|
52,815 | 53,273 | ||||||
Shares committed for allocation
|
3,471 | 2,080 | ||||||
Unearned shares
|
32,591 | 35,659 | ||||||
Total ESOP shares
|
88,877 | 91,012 | ||||||
Fair value of unearned shares at December 31
|
$ | 448,126 | $ | 384,404 |
Note 15:
|
Stock Option Plans
|
2011
|
||||||||||||||||
Shares
|
Weighted-Average
Exercise Price
|
Weighted-Average Remaining Contractual Term
|
Aggregate
Intrinsic Value |
|||||||||||||
Outstanding, beginning of year
|
33,382 | $ | 10.52 | |||||||||||||
Exercised
|
(21,661 | ) | 9.98 | |||||||||||||
Forfeited or expired
|
(7,217 | ) | 9.98 | |||||||||||||
Outstanding, end of year
|
4,504 | $ | 13.98 | 2.50 | $ | — | ||||||||||
Exercisable, end of year
|
4,504 | $ | 13.98 | 2.50 | $ | — |
2010
|
||||||||||||||||
Shares
|
Weighted-Average
Exercise Price
|
Weighted-Average Remaining Contractual Term
|
Aggregate
Intrinsic Value |
|||||||||||||
Outstanding, beginning of year
|
33,345 | $ | 10.54 | |||||||||||||
Adjustment for second step conversion
|
37 | 9.98 | ||||||||||||||
Exercised
|
— | — | ||||||||||||||
Forfeited or expired
|
— | — | ||||||||||||||
Outstanding, end of year
|
33,382 | $ | 10.52 | 0.76 | $ | 7,517 | ||||||||||
Exercisable, end of year
|
33,382 | $ | 10.52 | 0.76 | $ | 7,517 |
Note 16:
|
Earnings Per Share
|
Year Ended December 31, 2011
|
||||||||||||
Income
|
Weighted-Average
Shares
|
Per Share Amount
|
||||||||||
Net income
|
$ | 3,285,683 | ||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
1,890,449 | $ | 1.74 | |||||||||
Effect of dilutive securities
|
||||||||||||
Stock options
|
— | |||||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 3,285,683 | 1,890,449 | $ | 1.74 |
Year Ended December 31, 2010
|
||||||||||||
Income
|
Weighted-Average
Shares
|
Per Share Amount
|
||||||||||
Net income
|
$ | 2,066,460 | ||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
1,903,336 | $ | 1.09 | |||||||||
Effect of dilutive securities
|
||||||||||||
Stock options
|
— | 2,389 | ||||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 2,066,460 | 1,905,725 | $ | 1.08 |
Note 17:
|
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
|
2011
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
U.S. Government and agencies
|
$ | 14,335,643 | $ | — | $ | 14,335,643 | $ | — | ||||||||
Mortgage-backed securities (Government-sponsored enterprises - residential)
|
40,364,086 | — | 40,364,086 | — | ||||||||||||
Municipal bonds
|
47,922,319 | — | 47,922,319 | — |
2010
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(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 | — |
2011
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||
Impaired loans (collateral dependent)
|
$ | 867,318 | $ | — | $ | — | $ | 867,318 | ||||||||
Mortgage servicing rights
|
697,733 | — | — | 697,733 | ||||||||||||
Foreclosed assets
|
435,480 | — | — | 435,480 |
2010
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||
Impaired loans (collateral dependent)
|
$ | 2,407,740 | $ | — | $ | — | $ | 2,407,740 | ||||||||
Mortgage servicing rights
|
797,327 | — | — | 797,327 | ||||||||||||
Foreclosed assets
|
459,877 | — | — | 459,877 |
December 31, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying Amount
|
Fair Value
|
Carrying Amount
|
Fair Value
|
|||||||||||||
Financial assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 11,387,947 | $ | 11,387,947 | $ | 8,943,400 | $ | 8,943,400 | ||||||||
Interest-earning time deposits in banks
|
2,476,000 | 2,476,000 | — | — | ||||||||||||
Available-for-sale securities
|
102,622,048 | 102,622,048 | 94,866,721 | 94,866,721 | ||||||||||||
Other investments
|
116,088 | 116,088 | 130,049 | 130,049 | ||||||||||||
Loans held for sale
|
446,818 | 446,818 | 280,000 | 280,000 | ||||||||||||
Loans, net of allowance for loan losses
|
170,865,102 | 169,667,091 | 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
|
2,071,534 | 2,071,534 | 1,872,779 | 1,872,779 | ||||||||||||
Financial liabilities
|
||||||||||||||||
Deposits
|
254,240,060 | 265,515,126 | 256,423,647 | 259,188,963 | ||||||||||||
Short-term borrowings
|
6,517,750 | 6,517,750 | 4,018,235 | 4,018,235 | ||||||||||||
Advances from borrowers for taxes and insurance
|
740,083 | 740,083 | 629,788 | 629,788 | ||||||||||||
Interest payable
|
349,121 | 349,121 | 556,257 | 556,257 | ||||||||||||
Unrecognized financial instruments (net of contract amount)
|
||||||||||||||||
Commitments to originate loans
|
— | — | — | — | ||||||||||||
Letters of credit
|
— | — | — | — | ||||||||||||
Lines of credit
|
— | — | — | — |
Note 18:
|
Significant Estimates and Concentrations
|
Note 19:
|
Commitments and Credit Risk
|
Note 20:
|
Quarterly Results of Operations (Unaudited)
|
Year Ended December 31, 2011
|
||||||||||||||||
Three Months Ended
|
||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
|||||||||||||
Interest income
|
$ | 3,305,598 | $ | 3,543,418 | $ | 3,595,496 | $ | 3,422,767 | ||||||||
Interest expense
|
637,803 | 684,629 | 752,279 | 804,717 | ||||||||||||
Net interest income
|
2,667,795 | 2,858,789 | 2,843,217 | 2,618,050 | ||||||||||||
Provision for loan losses
|
150,000 | 150,000 | 150,000 | 175,000 | ||||||||||||
Net interest income after provision for loan losses
|
2,517,795 | 2,708,789 | 2,693,217 | 2,443,050 | ||||||||||||
Noninterest income
|
1,035,151 | 1,001,261 | 974,709 | 984,762 | ||||||||||||
Noninterest expense
|
2,496,863 | 2,492,751 | 2,394,685 | 2,429,658 | ||||||||||||
Income before income taxes
|
1,056,083 | 1,217,299 | 1,273,241 | 998,154 | ||||||||||||
Income tax expense
|
281,656 | 345,616 | 368,407 | 263,415 | ||||||||||||
Net income
|
$ | 774,427 | $ | 871,683 | $ | 904,834 | $ | 734,739 | ||||||||
Basic earnings per share
|
$ | 0.41 | $ | 0.46 | $ | 0.48 | $ | 0.39 | ||||||||
Diluted earnings per share
|
$ | 0.41 | $ | 0.46 | $ | 0.48 | $ | 0.39 |
Year Ended December 31, 2010
|
||||||||||||||||
Three Months Ended
|
||||||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
|||||||||||||
Interest income
|
$ | 3,417,003 | $ | 3,494,306 | $ | 3,383,871 | $ | 3,234,222 | ||||||||
Interest expense
|
913,400 | 976,373 | 1,008,793 | 1,054,754 | ||||||||||||
Net interest income
|
2,503,603 | 2,517,933 | 2,375,078 | 2,179,468 | ||||||||||||
Provision for loan losses
|
225,000 | 375,000 | 850,000 | 275,000 | ||||||||||||
Net interest income after provision for loan losses
|
2,278,603 | 2,142,933 | 1,525,078 | 1,904,468 | ||||||||||||
Noninterest income
|
1,048,245 | 1,174,117 | 1,023,713 | 951,130 | ||||||||||||
Noninterest expense
|
2,365,098 | 2,486,440 | 2,477,186 | 2,247,623 | ||||||||||||
Income before income taxes
|
961,750 | 830,610 | 71,605 | 607,975 | ||||||||||||
Income tax expense (benefit)
|
227,592 | 177,289 | (108,519 | ) | 109,118 | |||||||||||
Net income
|
$ | 734,158 | $ | 653,321 | $ | 180,124 | $ | 498,857 | ||||||||
Basic earnings per share
|
$ | 0.39 | $ | 0.35 | $ | 0.09 | $ | 0.26 | ||||||||
Diluted earnings per share
|
$ | 0.38 | $ | 0.35 | $ | 0.09 | $ | 0.26 |
Note 21:
|
Condensed Financial Information (Parent Company Only)
|
December 31,
|
||||||||
2011
|
2010
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 4,334,876 | $ | 4,805,757 | ||||
Investment in common stock of subsidiary
|
36,548,233 | 30,537,330 | ||||||
Loan receivable from subsidiary
|
360,973 | 395,333 | ||||||
Other assets
|
100,974 | 128,292 | ||||||
Total assets
|
$ | 41,345,056 | $ | 35,866,712 | ||||
Liabilities
|
||||||||
Other liabilities
|
$ | 179,633 | $ | 188,562 | ||||
Stockholders’ Equity
|
41,165,423 | 35,678,150 | ||||||
Total liabilities and stockholders’ equity
|
$ | 41,345,056 | $ | 35,866,712 |
Year Ending December 31,
|
||||||||
2011
|
2010
|
|||||||
Income
|
||||||||
Dividends from subsidiary
|
$ | 300,000 | $ | 132,312 | ||||
Other income
|
26,491 | 15,318 | ||||||
Total income
|
326,491 | 147,630 | ||||||
Expenses
|
||||||||
Other expenses
|
263,675 | 213,855 | ||||||
Income (Loss) Before Income Tax and Equity in Undistributed Income of Subsidiary
|
62,816 | (66,225 | ) | |||||
Income Tax Benefit
|
(95,514 | ) | (77,072 | ) | ||||
Income Before Equity in Undistributed Income of Subsidiary
|
158,330 | 10,847 | ||||||
Equity in Undistributed Income of Subsidiary
|
3,127,353 | 2,055,613 | ||||||
Net Income
|
$ | 3,285,683 | $ | 2,066,460 |
Year Ending December 31,
|
||||||||
2011
|
2010
|
|||||||
Operating Activities
|
||||||||
Net income
|
$ | 3,285,683 | $ | 2,066,460 | ||||
Items not providing cash, net
|
(3,127,352 | ) | (2,055,613 | ) | ||||
Change in other assets and liabilities, net
|
18,390 | 153,784 | ||||||
Net cash provided by operating activities
|
176,721 | 164,631 | ||||||
Investing Activity
|
||||||||
Net loan proceeds to subsidiary
|
— | (395,334 | ) | |||||
Capital infusion to subsidiary
|
— | (4,700,000 | ) | |||||
Loan payment from subsidiary
|
34,360 | — | ||||||
Net cash provided by (used in) investing activities
|
34,360 | (5,095,334 | ) | |||||
Financing Activities
|
||||||||
Dividends paid
|
(578,196 | ) | (420,871 | ) | ||||
Stock repurchase
|
(138,000 | ) | — | |||||
Merger of Jacksonville Bancorp, MHC
|
— | 789,092 | ||||||
Net proceeds from stock offering
|
— | 9,223,105 | ||||||
Cash paid for fractional shares in exchange
|
— | (1,529 | ) | |||||
Exercise of stock options
|
34,236 | — | ||||||
Net cash provided by (used in) financing activities
|
(681,962 | ) | 9,589,797 | |||||
Net Change in Cash and Cash Equivalents
|
(470,881 | ) | 4,659,094 | |||||
Cash and Cash Equivalents at Beginning of Year
|
4,805,757 | 146,663 | ||||||
Cash and Cash Equivalents at End of Year
|
$ | 4,334,876 | $ | 4,805,757 |
Price Per Share
|
Cash
|
|||||||||||
High
|
Low
|
Dividend Declared
|
||||||||||
2011
|
||||||||||||
Fourth quarter
|
$ | 14.00 | $ | 13.08 | $ | 0.075 | ||||||
Third quarter
|
13.93 | 12.50 | 0.075 | |||||||||
Second quarter
|
12.75 | 12.35 | 0.075 | |||||||||
First quarter
|
12.90 | 10.78 | 0.075 | |||||||||
2010
|
||||||||||||
Fourth quarter
|
$ | 11.13 | $ | 9.90 | $ | 0.075 | ||||||
Third quarter
|
11.15 | 9.51 | 0.075 | |||||||||
Second quarter
|
13.83 | 10.48 | 0.075 | |||||||||
First quarter
|
15.97 | 8.99 | 0.075 |
Directors
|
Executive Officers
|
Andrew F. Applebee
Chairman of the Board
|
Andrew F. Applebee
Chairman of the Board
|
Richard A. Foss
President and Chief Executive Officer
|
Richard A. Foss
President and Chief Executive Officer
|
John C. Williams
Senior Vice President and Trust Officer
|
John C. Williams
Senior Vice President and Trust Officer
|
John M. Buchanan
Certified Funeral Service Practitioner
Buchanan & Cody Funeral Home and Crematory, Inc.
|
John D. Eilering
Vice President – Operations / Corporate Secretary
|
Harmon B. Deal, III
Investment Advisor
L.A. Burton & Associates
|
Laura A. Marks
Senior Vice President – Retail Banking
|
John L. Eyth
Certified Public Accountant
Zumbahlen Eyth Surratt Foote & Flynn, Ltd.
|
Chris A. Royal
Senior Vice President and Chief Lending Officer
|
Dean H. Hess
Self-employed farmer
|
Diana S. Tone
Chief Financial Officer and Compliance Officer
|
Emily J. Osburn
Retired radio station manager
|
Corporate Headquarters
|
Transfer Agent
|
1211 West Morton
|
Hickory Point Bank & Trust, fsb
|
Jacksonville, Illinois 62650
|
P.O. Box 2557
|
(217) 245-4111
|
Decatur, Illinois 62525-2557
|
Website: www.jacksonvillesavings.com
|
(217) 872-6373
|
E-mail: info@jacksonvillesavings.com
|
|
Special Counsel
|
Independent Registered Public Accounting Firm
|
Luse Gorman Pomerenk & Schick, P.C.
|
BKD, LLP
|
5335 Wisconsin Ave., N.W., Suite 780
|
225 North Water Street, Suite 400
|
Washington, D.C. 20015
|
Decatur, Illinois 62525-1580
|
(202) 274-2000
|
(217) 429-2411
|
Jacksonville Savings Bank
|
100% owned by Jacksonville Bancorp, Inc.
|
Financial Resources Group, Inc.
|
100% ownership by Jacksonville Savings Bank
|
1.
|
I have reviewed this annual report on Form 10-K of Jacksonville Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers 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 13-a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in 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 annual 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 officers 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 control over financial reporting.
|
March 19, 2012
|
|
|
/s/ Richard A. Foss | |
Date | Richard A. Foss | |||
President and Chief Executive Officer |
1.
|
I have reviewed this annual report on Form 10-K of Jacksonville Bancorp, Inc.;
|
5.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
6.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
7.
|
The registrant’s other certifying officers 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 13-a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in 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 annual 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 officers 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 control over financial reporting.
|
March 19, 2012
|
|
|
/s/ Diana S. Tone | |
Date
|
Diana S. Tone
|
|||
Chief Financial Officer and Compliance 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.
|
March 19, 2012
|
|
|
/s/ Richard A. Foss | |
Date | Richard A. Foss | |||
President and Chief Executive Officer |
March 19, 2012
|
|
|
/s/ Diana S. Tone | |
Date | Diana S. Tone | |||
Chief Financial Officer and Compliance Officer |
Significant Estimates and Concentrations
|
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
|||
Significant Estimates and Concentrations |
Accounting
principles generally accepted in the United States of America
require disclosure of certain significant estimates and current
vulnerabilities due to certain concentrations. Estimates
related to the allowance for loan losses are reflected in the
footnote regarding loans. Current vulnerabilities due to
certain concentrations of credit risk are discussed in the footnote
on commitments and credit risk. Other significant
estimates not discussed in those footnotes include:
Current Economic Conditions
The
current protracted economic decline continues to present financial
institutions with circumstances and challenges, which in some cases
have resulted in large and unanticipated declines in the fair
values of investments and other assets, constraints on liquidity
and capital and significant credit quality problems, including
severe volatility in the valuation of real estate and other
collateral supporting loans.
At
December 31, 2011 and 2010, the Company held $9,590,745 and
$8,176,396 in agricultural production loans and $29,971,649 and
$28,163,488, respectively in agricultural real estate loans in the
Company’s geographic area. Generally, those loans
are collateralized by assets of the borrower. The loans
are expected to be repaid from cash flows or from proceeds of sale
of selected assets of the borrowers. Declines in prices
for corn, beans, livestock and farmland could significantly affect
the repayment ability for many agricultural loan
customers.
At
December 31, 2011 and 2010, the Company held $40,169,813 and
$45,361,944 in commercial real estate, respectively, including
$10,277,503 and $9,955,396 that are outside of the Company’s
normal lending area. Due to national, state and local
economic conditions, values for commercial and development real
estate have declined significantly, and the market for these
properties is depressed.
The
accompanying consolidated financial statements have been prepared
using values and information currently available to the
Company.
Given
the volatility of current economic conditions, the values of assets
and liabilities recorded in the consolidated financial statements
could change rapidly, resulting in material future adjustments in
asset values, the allowance for loan losses and capital that could
negatively impact the Company’s ability to meet regulatory
capital requirements and maintain sufficient
liquidity. Furthermore, the Company’s regulators
could require material adjustments to asset values or the allowance
for loan losses for regulatory capital purposes that could affect
the Company’s measurement of regulatory capital and
compliance with the capital adequacy guidelines under the
regulatory framework for prompt corrective action.
Goodwill
As
discussed in
Note 1, the Company annually tests its goodwill for
impairment. At the most recent testing date, the fair
value of the banking reporting unit exceeded its carrying
value. Estimated fair value was based principally on
forecasts of future income. Due to the volatility of the
current economic environment, coupled with the Company’s
recent loan loss experience, management’s forecasts of future
income are subject to significantly more uncertainty than during
more stable environments. Management believes it has
applied reasonable judgment in developing its estimates; however,
unforeseen negative changes in the national, state or local
economic environment may negatively impact those estimates in the
near term.
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Second Step Conversion
|
12 Months Ended | ||
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Dec. 31, 2011
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Second Step Conversion |
On
July 14, 2010, Jacksonville Bancorp, Inc. completed its conversion
from the mutual holding company structure and the related public
offering and is now a stock holding company that is fully owned by
the public. As a result of the conversion, the mutual
holding company and former mid-tier holding company were merged
into Jacksonville Bancorp, Inc. at book value as the entities were
under common control. Jacksonville Savings Bank is 100%
owned by the Company and the Company is 100% owned by public
stockholders. The Company sold a total of 1,040,352
shares of common stock, par value $0.01 per share, in the
subscription and community offerings, including 41,614 shares to
the Jacksonville Savings Bank employee stock ownership
plan. All shares were sold at a price of $10 per share,
raising $10.4 million in gross proceeds. Conversion
related expenses of $1.2 million were offset against the gross
proceeds, resulting in $9.2 million of net
proceeds. Concurrent with the completion of the
offering, shares of Jacksonville Bancorp, Inc., a federal
corporation, common stock owned by public stockholders were
exchanged for 1.0016 shares of the Company’s common
stock. Cash in lieu of fractional shares was paid at a
fraction of $10 per share, our offering price per
share. As a result of the offering and the exchange, at
September 30, 2010, the Company had 1,923,689 shares outstanding
and a market capitalization of $20.7 million. The shares
of common stock sold in the offering and issued in the exchange
trade on the NASDAQ Capital market under the symbol
“JXSB,
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