Washington
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45-4585178
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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Large accelerated filer [ ]
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Accelerated filer [ ]
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Non-accelerated filer [ ] (Do not check if a small reporting company)
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Smaller reporting company [ X ]
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Page Number
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||
PART I
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FINANCIAL INFORMATION
|
|
Item 1.
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Financial Statements
|
|
Consolidated Balance Sheets as of September 30, 2012 (Unaudited)
and December 31, 2011
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1
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Consolidated Statements of Income for the Three and Nine Months Ended
September 30, 2012 and 2011 (Unaudited)
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2
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Consolidated Statements of Comprehensive Income for the Three and
Nine Months Ended September 30, 2012 and 2011 (Unaudited)
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3
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Consolidated Statements of Changes in Stockholders’ Equity as of
September 30, 2012 and 2011 (Unaudited)
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4
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Consolidated Statements of Cash Flows for the Nine Months Ended
September 30, 2012 and 2011 (Unaudited)
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5
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Notes to Consolidated Financial Statements
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6-31
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|
Item 2.
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Management's Discussion and Analysis of Financial Condition and Results
of Operations
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32-41
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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41
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Item 4.
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Controls and Procedures
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41
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PART II
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OTHER INFORMATION
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Item 1.
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Legal Proceedings
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42
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Item 1A.
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Risk Factors
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42
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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42
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Item 3.
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Defaults Upon Senior Securities
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42
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Item 4.
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Mine Safety Disclosures
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42
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Item 5.
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Other Information
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42
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Item 6.
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Exhibits
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42
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SIGNATURES
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43
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|
EXHIBIT INDEX
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44 |
September 30,
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December 31,
|
|||||||
2012
|
2011
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|||||||
ASSETS
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||||||||
Cash and due from banks
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$ | 2,441 | $ | 2,356 | ||||
Interest-bearing deposits at other financial institutions
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9,736 | 16,897 | ||||||
Total cash and cash equivalents
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12,177 | 19,253 | ||||||
Securities available-for-sale, at fair value
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38,794 | 26,899 | ||||||
Federal Home Loan Bank stock, at cost
|
1,781 | 1,797 | ||||||
Loans held for sale
|
8,511 | - | ||||||
Loans receivable, net
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259,157 | 217,131 | ||||||
Accrued interest receivable
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1,283 | 1,020 | ||||||
Premises and equipment, net
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12,448 | 9,852 | ||||||
Other real estate owned
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2,321 | 4,589 | ||||||
Deferred tax asset
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2,688 | - | ||||||
Other assets
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2,053 | 3,252 | ||||||
TOTAL ASSETS
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$ | 341,213 | $ | 283,793 | ||||
Deposits
|
||||||||
Interest-bearing accounts
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$ | 243,390 | $ | 227,164 | ||||
Noninterest-bearing accounts
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31,434 | 19,254 | ||||||
Total deposits
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274,824 | 246,418 | ||||||
Borrowings
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4,100 | 8,900 | ||||||
Other liabilities
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2,917 | 1,708 | ||||||
Total liabilities
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281,841 | 257,026 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 9)
|
||||||||
EQUITY
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||||||||
Preferred Stock, $.01 par value; 5,000,000 shares authorized;
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||||||||
None issued
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- | - | ||||||
Common stock, $.01 par value; 45,000,000 shares authorized;
3,240,125 shares issued and outstanding at September 30,
2012 and none at December 31, 2011
|
32 | - | ||||||
Additional paid-in capital
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29,863 | - | ||||||
Retained earnings
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30,674 | 26,451 | ||||||
Accumulated other comprehensive income
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1,439 | 316 | ||||||
Unearned shares – Employee Stock Ownership Plan
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(2,636 | ) | - | |||||
Total equity
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59,372 | 26,767 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 341,213 | $ | 283,793 |
Three months ended
September 30,
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Nine months ended
September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
INTEREST INCOME
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||||||||||||||||
Loans receivable
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$ | 4,647 | $ | 3,981 | $ | 13,121 | $ | 12,131 | ||||||||
Interest and dividends on investment
securities, and cash and cash equivalents
|
193 | 63 | 521 | 176 | ||||||||||||
Total interest income
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4,840 | 4,044 | 13,642 | 12,307 | ||||||||||||
INTEREST EXPENSE
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||||||||||||||||
Deposits
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543 | 655 | 1,715 | 2,194 | ||||||||||||
Borrowings
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28 | 45 | 117 | 132 | ||||||||||||
Total interest expense
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571 | 700 | 1,832 | 2,326 | ||||||||||||
NET INTEREST INCOME
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4,269 | 3,344 | 11,810 | 9,981 | ||||||||||||
PROVISION FOR LOAN LOSSES
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630 | 622 | 1,695 | 1,652 | ||||||||||||
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
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3,639 | 2,722 | 10,115 | 8,329 | ||||||||||||
NONINTEREST INCOME
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||||||||||||||||
Service charges and fee income
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499 | 509 | 1,494 | 1,450 | ||||||||||||
Gain on sale of loans
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915 | - | 1,466 | - | ||||||||||||
Gain on sale of investment securities
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- | 18 | 106 | 18 | ||||||||||||
Other noninterest income
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65 | 78 | 258 | 237 | ||||||||||||
Total noninterest income
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1,479 | 605 | 3,324 | 1,705 | ||||||||||||
NONINTEREST EXPENSE
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||||||||||||||||
Salaries and benefits
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2,162 | 1,465 | 5,723 | 4,145 | ||||||||||||
Operations
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630 | 501 | 1,761 | 1,449 | ||||||||||||
Occupancy
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286 | 317 | 889 | 816 | ||||||||||||
Data processing
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254 | 234 | 762 | 652 | ||||||||||||
OREO fair value write-downs, net of
loss on sales
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82 | 213 | 728 | 330 | ||||||||||||
OREO expenses
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57 | 25 | 155 | 153 | ||||||||||||
Loan costs
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213 | 94 | 550 | 357 | ||||||||||||
Professional and board fees
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178 | 119 | 481 | 388 | ||||||||||||
FDIC insurance
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66 | 50 | 185 | 330 | ||||||||||||
Marketing and advertising
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80 | 84 | 200 | 181 | ||||||||||||
Impairment of mortgage servicing
rights
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108 | - | 105 | - | ||||||||||||
Total noninterest expense
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4,116 | 3,102 | 11,539 | 8,801 | ||||||||||||
INCOME BEFORE BENEFIT FOR INCOME TAX
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1,002 | 225 | 1,900 | 1,233 | ||||||||||||
BENEFIT FOR INCOME TAX
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2,323 | - | 2,323 | - | ||||||||||||
NET INCOME
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$ | 3,325 | $ | 225 | $ | 4,223 | $ | 1,233 |
|
Three months ended
September 30,
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Nine months ended
September 30,
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|||||||||||||||
2012
|
2011
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2012
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2011
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|||||||||||||
Net Income
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$ | 3,325 | $ | 225 | $ | 4,223 | $ | 1,233 | ||||||||
Other comprehensive income, net of tax:
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||||||||||||||||
Unrealized gain on available-for-sale
securities:
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||||||||||||||||
Unrealized holding gain arising during
period
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521 | 135 | 864 | 309 | ||||||||||||
Reclassification adjustment for
unrealized gains realized in net income
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- | (18 | ) | (106 | ) | (18 | ) | |||||||||
Income tax provision related to
unrealized gain
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365 | - | 365 | - | ||||||||||||
Other comprehensive income, net of tax
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886 | 117 | 1,123 | 291 | ||||||||||||
COMPREHENSIVE INCOME
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$ | 4,211 | $ | 342 | $ | 5,346 | $ | 1,524 |
Common Stock
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Additional
Paid-in
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Retained
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Unearned
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Accumulated
Other
Comprehensive
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Total
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|||||||||||||||||||||||
Shares
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Amount
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Capital
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Earnings
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ESOP shares
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Income (Loss)
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Equity
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||||||||||||||||||||||
BALANCE, January 1, 2011
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- | $ | - | $ | - | $ | 24,906 | $ | - | $ | (111 | ) | $ | 24,795 | ||||||||||||||
Net income
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- | - | - | 1,233 | - | - | 1,233 | |||||||||||||||||||||
Other comprehensive income
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- | - | - | - | - | 291 | 291 | |||||||||||||||||||||
BALANCE, September 30, 2011
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- | $ | - | $ | - | $ | 26,139 | $ | - | $ | 180 | $ | 26,319 | |||||||||||||||
BALANCE, January 1, 2012
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- | $ | - | $ | - | $ | 26,451 | $ | - | $ | 316 | $ | 26,767 | |||||||||||||||
Net income
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- | - | - | 4,223 | - | - | 4,223 | |||||||||||||||||||||
Other comprehensive income
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- | - | - | - | - | 1,123 | 1,123 | |||||||||||||||||||||
Proceeds from public offering,
net of expenses
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3,240,125 | 32 | 29,863 | - | - | - | 29,895 | |||||||||||||||||||||
Unearned employee stock
ownership plan shares
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- | - | - | - | (2,636 | ) | - | (2,636 | ) | |||||||||||||||||||
BALANCE, September 30, 2012
|
3,240,125 | $ | 32 | $ | 29,863 | $ | 30,674 | $ | (2,636 | ) | $ | 1,439 | $ | 59,372 |
Nine months ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
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||||||||
Net income
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$ | 4,223 | $ | 1,233 | ||||
Adjustments to reconcile net income to net cash from operating activities
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||||||||
Provision for loan losses
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1,695 | 1,652 | ||||||
Depreciation, amortization and accretion
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688 | 638 | ||||||
Provision for deferred income taxes
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307 | 418 | ||||||
Valuation allowance on deferred income taxes
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(2,630 | ) | (418 | ) | ||||
Gain on sale of loans held for sale
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(1,466 | ) | - | |||||
Origination of loans held for sale | (78,901 | ) | - | |||||
Proceeds from sale of loans held for sale
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71,260 | - | ||||||
Gain on sale of investment securities
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(106 | ) | (18 | ) | ||||
Loss on sale of other real estate owned
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35 | 5 | ||||||
Impairment of mortgage servicing rights
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105 | - | ||||||
Impairment loss on other real estate owned
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693 | 325 | ||||||
Changes in operating assets and liabilities
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||||||||
Accrued interest receivable
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(263 | ) | (53 | ) | ||||
Other assets
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216 | (346 | ) | |||||
Other liabilities
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1,209 | 2,684 | ||||||
Net cash from (used by) operating activities
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(2,935 | ) | 6,120 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Activity in securities available-for-sale:
|
||||||||
Maturities, prepayments, sales, and calls
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11,572 | 1,465 | ||||||
Purchases
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(22,587 | ) | (6,868 | ) | ||||
Loan originations and principal collections, net
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(44,760 | ) | 4,661 | |||||
Proceeds from sale of other real estate owned
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2,632 | 945 | ||||||
Purchase of premises and equipment
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(3,201 | ) | (325 | ) | ||||
Net cash used by investing activities
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(56,344 | ) | (122 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net increase (decrease) in deposits
|
28,406 | (1,904 | ) | |||||
Proceeds from borrowings
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13,000 | 18,500 | ||||||
Repayments of borrowings
|
(17,800 | ) | (27,500 | ) | ||||
Purchase ESOP shares
|
(2,636 | ) | - | |||||
Proceeds from issuance of common stock, net
|
31,233 | - | ||||||
Net cash from (used by) financing activities
|
52,203 | (10,904 | ) | |||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(7,076 | ) | (4,906 | ) | ||||
CASH AND CASH EQUIVALENTS, beginning of period
|
19,253 | 35,250 | ||||||
CASH AND CASH EQUIVALENTS, end of period
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$ | 12,177 | $ | 30,344 | ||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Cash paid during the period for interest
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$ | 1,839 | $ | 2,328 | ||||
SUPPLEMENTARY DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
||||||||
Change in unrealized loss on investment securities
|
$ | 1,123 | $ | 291 | ||||
Property taken in settlement of loans
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$ | 1,039 | $ | 3,037 |
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net income
|
$ | 3,325 | $ | 225 | $ | 4,223 | $ | 1,233 | ||||||||
Denominator:
|
||||||||||||||||
Denominator for basic earnings per share-
weighted average common shares
outstanding
|
3,240,125 |
nm(1)
|
nm(1)
|
nm(1)
|
||||||||||||
Denominator for diluted earnings per
share– weighted average common shares
outstanding
|
3,240,125 |
nm(1)
|
nm(1)
|
nm(1)
|
||||||||||||
Basic earnings per shares
|
$ | 1.03 |
nm(1)
|
nm(1)
|
nm(1)
|
|||||||||||
Diluted earnings per share
|
$ | 1.03 |
nm(1)
|
nm(1)
|
nm(1)
|
September 30, 2012
|
||||||||||||||||||||
Gross
|
Gross
|
|||||||||||||||||||
Gross
|
Unrealized
|
Unrealized
|
Estimated
|
|||||||||||||||||
Amortized
|
Unrealized
|
Losses (less
|
Losses (more
|
Fair
|
||||||||||||||||
Cost
|
Gains
|
than 1 year)
|
than 1 year)
|
Values
|
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||
Federal agency securities
|
$ | 11,408 | $ | 304 | $ | - | $ | - | $ | 11,712 | ||||||||||
Municipal bonds
|
6,520 | 176 | (7 | ) | - | 6,689 | ||||||||||||||
Mortgage-backed securities
|
19,792 | 601 | - | - | 20,393 | |||||||||||||||
Total securities available-for-sale
|
$ | 37,720 | $ | 1,081 | $ | (7 | ) | $ | - | $ | 38,794 |
December 31, 2011
|
||||||||||||||||||||
Gross
|
Gross
|
|||||||||||||||||||
Gross
|
Unrealized
|
Unrealized
|
Estimated
|
|||||||||||||||||
Amortized
|
Unrealized
|
Losses (less
|
Losses (more
|
Fair
|
||||||||||||||||
Cost
|
Gains
|
than 1 year)
|
than 1 year)
|
Values
|
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||||||
Federal agency securities
|
$ | 14,202 | $ | 131 | $ | (3 | ) | $ | (1 | ) | $ | 14,329 | ||||||||
Municipal bonds
|
3,905 | 101 | (1 | ) | - | 4,005 | ||||||||||||||
Mortgage-backed securities
|
8,476 | 101 | (12 | ) | - | 8,565 | ||||||||||||||
Total securities available-for-sale
|
$ | 26,583 | $ | 333 | $ | (16 | ) | $ | (1 | ) | $ | 26,899 |
September 30, 2012
|
||||||||
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
No contractual maturity
|
$ | - | $ | - | ||||
Due within one year
|
507 | 511 | ||||||
Due after one year to five years
|
3,891 | 3,963 | ||||||
Due after five years to ten years
|
15,783 | 16,223 | ||||||
Due after more than ten years
|
17,539 | 18,097 | ||||||
Total
|
$ | 37,720 | $ | 38,794 |
Nine months ending
September 30, 2012
|
||||||||||||
Proceeds
|
Gross Gains
|
Gross Losses
|
||||||||||
Securities available-for-sale
|
$ | 2,432 | $ | 106 | $ | - |
Nine months ending
September 30, 2011
|
||||||||||||
Proceeds
|
Gross Gains
|
Gross Losses
|
||||||||||
Securities available-for-sale
|
$ | 279 | $ | 18 | $ | - |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
REAL ESTATE LOANS
|
||||||||
Commercial
|
$ | 32,779 | $ | 28,931 | ||||
Construction and development
|
24,480 | 10,144 | ||||||
Home equity
|
14,693 | 14,507 | ||||||
One-to-four family
|
10,340 | 8,752 | ||||||
Multi-family
|
1,397 | 1,175 | ||||||
Total real estate loans
|
83,689 | 63,509 | ||||||
CONSUMER LOANS
|
||||||||
Indirect home improvement
|
82,185 | 81,143 | ||||||
Recreational
|
30,773 | 24,471 | ||||||
Automobile
|
3,057 | 5,832 | ||||||
Home improvement
|
721 | 934 | ||||||
Other
|
1,430 | 1,826 | ||||||
Total consumer loans
|
118,166 | 114,206 | ||||||
COMMERCIAL BUSINESS LOANS
|
61,488 | 43,337 | ||||||
Total loans
|
263,343 | 221,052 | ||||||
Allowance for loan losses
|
(4,359 | ) | (4,345 | ) | ||||
Deferred cost, fees, and discounts, net
|
173 | 424 | ||||||
Total loans receivable, net
|
$ | 259,157 | $ | 217,131 |
At or for the three months ended September 30, 2012
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
Real Estate
|
Consumer
|
Business
|
Unallocated
|
Total
|
||||||||||||||||
Beginning balance
|
$ | 1,123 | $ | 2,178 | $ | 660 | $ | 371 | $ | 4,332 | ||||||||||
Provision for loan loss
|
634 | 384 | (36 | ) | (352 | ) | 630 | |||||||||||||
Charge-offs
|
(226 | ) | (563 | ) | (11 | ) | - | (800 | ) | |||||||||||
Recoveries
|
1 | 196 | - | - | 197 | |||||||||||||||
Net charge-offs
|
(225 | ) | (367 | ) | (11 | ) | - | (603 | ) | |||||||||||
Ending balance
|
$ | 1,532 | $ | 2,195 | $ | 613 | $ | 19 | $ | 4,359 | ||||||||||
Period end amount allocated to:
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 167 | $ | - | $ | 28 | $ | - | $ | 195 | ||||||||||
Loans collectively evaluated
for impairment
|
1,365 | 2,195 | 585 | 19 | 4,164 | |||||||||||||||
Ending balance
|
$ | 1,532 | $ | 2,195 | $ | 613 | $ | 19 | $ | 4,359 | ||||||||||
LOANS RECEIVABLE
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 3,521 | $ | - | $ | 266 | $ | - | $ | 3,787 | ||||||||||
Loans collectively evaluated
for impairment
|
80,168 | 118,166 | 61,222 | - | 259,556 | |||||||||||||||
Ending balance
|
$ | 83,689 | $ | 118,166 | $ | 61,488 | $ | - | $ | 263,343 |
At or for the nine months ended September 30, 2012
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
Real Estate
|
Consumer
|
Business
|
Unallocated
|
Total
|
||||||||||||||||
Beginning balance
|
$ | 803 | $ | 2,846 | $ | 511 | $ | 185 | $ | 4,345 | ||||||||||
Provision for loan loss
|
1,215 | 434 | 212 | (166 | ) | 1,695 | ||||||||||||||
Charge-offs
|
(490 | ) | (1,868 | ) | (110 | ) | - | (2,468 | ) | |||||||||||
Recoveries
|
4 | 783 | - | - | 787 | |||||||||||||||
Net charge-offs
|
(486 | ) | (1,085 | ) | (110 | ) | - | (1,681 | ) | |||||||||||
Ending balance
|
$ | 1,532 | $ | 2,195 | $ | 613 | $ | 19 | $ | 4,359 | ||||||||||
Period end amount allocated to:
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 167 | $ | - | $ | 28 | $ | - | $ | 195 | ||||||||||
Loans collectively evaluated
for impairment
|
1,365 | 2,195 | 585 | 19 | 4,164 | |||||||||||||||
Ending balance
|
$ | 1,532 | $ | 2,195 | $ | 613 | $ | 19 | $ | 4,359 | ||||||||||
LOANS RECEIVABLE
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 3,521 | $ | - | $ | 266 | $ | - | $ | 3,787 | ||||||||||
Loans collectively evaluated
for impairment
|
80,168 | 118,166 | 61,222 | - | 259,556 | |||||||||||||||
Ending balance
|
$ | 83,689 | $ | 118,166 | $ | 61,488 | $ | - | $ | 263,343 |
At or for the three months ended September 30, 2011
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
Real Estate
|
Consumer
|
Business
|
Unallocated
|
Total
|
||||||||||||||||
Beginning balance
|
$ | 1,118 | $ | 2,739 | $ | 308 | $ | 671 | $ | 4,836 | ||||||||||
Provision for loan loss
|
75 | 473 | 163 | (89 | ) | 622 | ||||||||||||||
Charge-offs
|
- | (833 | ) | - | - | (833 | ) | |||||||||||||
Recoveries
|
- | 223 | - | - | 223 | |||||||||||||||
Net charge-offs
|
- | (610 | ) | - | - | (610 | ) | |||||||||||||
Ending balance
|
$ | 1,193 | $ | 2,602 | $ | 471 | $ | 582 | $ | 4,848 | ||||||||||
Period end amount allocated to:
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 626 | $ | - | $ | 291 | $ | - | $ | 917 | ||||||||||
Loans collectively evaluated
for impairment
|
567 | 2,602 | 180 | 582 | 3,931 | |||||||||||||||
Ending balance
|
$ | 1,193 | $ | 2,602 | $ | 471 | $ | 582 | $ | 4,848 | ||||||||||
LOANS RECEIVABLE
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 2,596 | $ | - | $ | 2,859 | $ | - | $ | 5,455 | ||||||||||
Loans collectively evaluated
for impairment
|
64,779 | 119,749 | 35,830 | - | 220,358 | |||||||||||||||
Ending balance
|
$ | 67,375 | $ | 119,749 | $ | 38,689 | $ | - | $ | 225,813 |
At or for the nine months ended September 30, 2011
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
Real Estate
|
Consumer
|
Business
|
Unallocated
|
Total
|
||||||||||||||||
Beginning balance
|
$ | 1,213 | $ | 3,361 | $ | 837 | $ | 494 | $ | 5,905 | ||||||||||
Provision for loan loss
|
225 | 1,221 | 118 | 88 | 1,652 | |||||||||||||||
Charge-offs
|
(245 | ) | (2,596 | ) | (484 | ) | - | (3,325 | ) | |||||||||||
Recoveries
|
- | 616 | - | - | 616 | |||||||||||||||
Net charge-offs
|
(245 | ) | (1,980 | ) | (484 | ) | - | (2,709 | ) | |||||||||||
Ending balance
|
$ | 1,193 | $ | 2,602 | $ | 471 | $ | 582 | $ | 4,848 | ||||||||||
Period end amount allocated to:
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 626 | $ | - | $ | 291 | $ | - | $ | 917 | ||||||||||
Loans collectively evaluated
for impairment
|
567 | 2,602 | 180 | 582 | 3,931 | |||||||||||||||
Ending balance
|
$ | 1,193 | $ | 2,602 | $ | 471 | $ | 582 | $ | 4,848 | ||||||||||
LOANS RECEIVABLE
|
||||||||||||||||||||
Loans individually evaluated
for impairment
|
$ | 2,596 | $ | - | $ | 2,859 | $ | - | $ | 5,455 | ||||||||||
Loans collectively evaluated
for impairment
|
64,779 | 119,749 | 35,830 | - | 220,358 | |||||||||||||||
Ending balance
|
$ | 67,375 | $ | 119,749 | $ | 38,689 | $ | - | $ | 225,813 |
September 30, 2012
|
||||||||||||||||||||||||||||
Loans Past Due and Still Accruing
|
||||||||||||||||||||||||||||
Greater
|
||||||||||||||||||||||||||||
Than 90
|
Total
|
Non-
|
Total Loans
|
|||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
Days
|
Past Due
|
Accrual
|
Current
|
Receivable
|
||||||||||||||||||||||
REAL ESTATE LOANS
|
||||||||||||||||||||||||||||
Commercial
|
$ | - | $ | - | $ | - | $ | - | $ | 877 | $ | 31,902 | $ | 32,779 | ||||||||||||||
Construction and
development
|
- | - | - | - | - | 24,480 | 24,480 | |||||||||||||||||||||
Home equity
|
272 | 282 | - | 554 | 197 | 13,942 | 14,693 | |||||||||||||||||||||
One-to-four family
|
- | - | - | - | 362 | 9,978 | 10,340 | |||||||||||||||||||||
Multi-family
|
- | - | - | - | - | 1,397 | 1,397 | |||||||||||||||||||||
Total real estate
loans
|
272 | 282 | - | 554 | 1,436 | 81,699 | 83,689 | |||||||||||||||||||||
CONSUMER
|
||||||||||||||||||||||||||||
Indirect home
improvement
|
626 | 363 | - | 989 | 335 | 80,861 | 82,185 | |||||||||||||||||||||
Recreational
|
136 | 10 | - | 146 | - | 30,627 | 30,773 | |||||||||||||||||||||
Automobile
|
46 | 1 | - | 47 | 27 | 2,983 | 3,057 | |||||||||||||||||||||
Home improvement
|
2 | 28 | - | 30 | 32 | 659 | 721 | |||||||||||||||||||||
Other
|
8 | - | - | 8 | - | 1,422 | 1,430 | |||||||||||||||||||||
Total consumer loans
|
818 | 402 | - | 1,220 | 394 | 116,552 | 118,166 | |||||||||||||||||||||
COMMERCIAL
BUSINESS LOANS
|
- | - | - | - | 266 | 61,222 | 61,488 | |||||||||||||||||||||
Total
|
$ | 1,090 | $ | 684 | $ | - | $ | 1,774 | $ | 2,096 | $ | 259,473 | $ | 263,343 |
December 31, 2011
|
||||||||||||||||||||||||||||
Loans Past Due and Still Accruing
|
||||||||||||||||||||||||||||
Greater
|
||||||||||||||||||||||||||||
Than 90
|
Total
|
Non-
|
Total Loans
|
|||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
Days
|
Past Due
|
Accrual
|
Current
|
Receivable
|
||||||||||||||||||||||
REAL ESTATE LOANS
|
||||||||||||||||||||||||||||
Commercial
|
$ | 703 | $ | - | $ | - | $ | 703 | $ | - | $ | 28,228 | $ | 28,931 | ||||||||||||||
Construction and
development
|
- | - | - | - | 623 | 9,521 | 10,144 | |||||||||||||||||||||
Home equity
|
149 | 69 | - | 218 | 267 | 14,022 | 14,507 | |||||||||||||||||||||
One-to-four family
|
- | - | - | - | 412 | 8,340 | 8,752 | |||||||||||||||||||||
Multi-family
|
- | - | - | - | - | 1,175 | 1,175 | |||||||||||||||||||||
Total real estate
loans
|
852 | 69 | - | 921 | 1,302 | 61,286 | 63,509 | |||||||||||||||||||||
CONSUMER
|
||||||||||||||||||||||||||||
Indirect home
improvement
|
698 | 453 | - | 1,151 | 454 | 79,538 | 81,143 | |||||||||||||||||||||
Recreational
|
144 | 50 | - | 194 | 1 | 24,276 | 24,471 | |||||||||||||||||||||
Automobile
|
100 | 53 | - | 153 | 23 | 5,656 | 5,832 | |||||||||||||||||||||
Home improvement
|
- | 31 | - | 31 | - | 903 | 934 | |||||||||||||||||||||
Other
|
26 | 10 | - | 36 | 20 | 1,770 | 1,826 | |||||||||||||||||||||
Total consumer loans
|
968 | 597 | - | 1,565 | 498 | 112,143 | 114,206 | |||||||||||||||||||||
COMMERCIAL
BUSINESS LOANS
|
- | - | - | - | 427 | 42,910 | 43,337 | |||||||||||||||||||||
Total
|
$ | 1,820 | $ | 666 | $ | - | $ | 2,486 | $ | 2,227 | $ | 216,339 | $ | 221,052 |
At or for the nine months ended September 30, 2012
|
||||||||||||||||||||||||||||
YTD
|
YTD
|
|||||||||||||||||||||||||||
Unpaid
|
Adjusted
|
Average
|
Interest
|
|||||||||||||||||||||||||
Principal
|
Write-
|
Recorded
|
Specific
|
Recorded
|
Recorded
|
Income
|
||||||||||||||||||||||
Balance
|
downs
|
Investment
|
Reserve
|
Investment
|
Investment
|
Recognized
|
||||||||||||||||||||||
WITH NO RELATED
ALLOWANCE RECORDED
|
||||||||||||||||||||||||||||
Commercial
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Construction and
development
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home equity
|
150 | - | 150 | - | 150 | 148 | 3 | |||||||||||||||||||||
One-to-four family
|
999 | (92 | ) | 907 | - | 907 | 716 | 34 | ||||||||||||||||||||
Multi-family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Indirect home
improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Recreational
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Automobile
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Commercial business
loans
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Subtotal loans
|
1,149 | (92 | ) | 1,057 | - | 1,057 | 864 | 37 | ||||||||||||||||||||
WITH AN ALLOWANCE RECORDED
|
||||||||||||||||||||||||||||
Commercial
|
950 | (73 | ) | 877 | (88 | ) | 789 | 919 | 7 | |||||||||||||||||||
Construction and
development
|
1,625 | (38 | ) | 1,587 | (79 | ) | 1,508 | 1,640 | 51 | |||||||||||||||||||
Home equity
|
- | - | - | - | - | - | - | |||||||||||||||||||||
One-to-four family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Multi-family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Indirect home
improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Recreational
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Automobile
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Commercial business
loans
|
339 | (73 | ) | 266 | (28 | ) | 238 | 370 | 5 | |||||||||||||||||||
Subtotal loans
|
2,914 | (184 | ) | 2,730 | (195 | ) | 2,535 | 2,929 | 63 | |||||||||||||||||||
Total
|
$ | 4,063 | $ | (276 | ) | $ | 3,787 | $ | (195 | ) | $ | 3,592 | $ | 3,793 | $ | 100 |
At or for the year ended December 31, 2011
|
||||||||||||||||||||||||||||
YTD
|
YTD
|
|||||||||||||||||||||||||||
Unpaid
|
Adjusted
|
Average
|
Interest
|
|||||||||||||||||||||||||
Principal
|
Write-
|
Recorded
|
Specific
|
Recorded
|
Recorded
|
Income
|
||||||||||||||||||||||
Balance
|
downs
|
Investment
|
Reserve
|
Investment
|
Investment
|
Recognized
|
||||||||||||||||||||||
WITH NO RELATED
ALLOWANCE RECORDED
|
||||||||||||||||||||||||||||
Commercial
|
$ | 950 | $ | (24 | ) | $ | 926 | $ | - | $ | 926 | $ | 938 | $ | 43 | |||||||||||||
Construction and
development
|
623 | - | 623 | - | 623 | 618 | 21 | |||||||||||||||||||||
Home equity
|
243 | (2 | ) | 241 | - | 241 | 217 | 5 | ||||||||||||||||||||
One-to-four family
|
581 | (7 | ) | 574 | - | 574 | 578 | 28 | ||||||||||||||||||||
Multi-family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Indirect home
improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Recreational
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Automobile
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Commercial business
loans
|
705 | (347 | ) | 358 | - | 358 | 621 | 1 | ||||||||||||||||||||
Subtotal loans
|
3,102 | (380 | ) | 2,722 | - | 2,722 | 2,972 | 98 | ||||||||||||||||||||
WITH AN ALLOWANCE RECORDED
|
||||||||||||||||||||||||||||
Commercial
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Construction and
development
|
1,678 | (38 | ) | 1,640 | (82 | ) | 1,558 | 1,833 | 110 | |||||||||||||||||||
Home equity
|
- | - | - | - | - | - | - | |||||||||||||||||||||
One-to-four family
|
389 | - | 389 | (58 | ) | 331 | 391 | 16 | ||||||||||||||||||||
Multi-family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Indirect home
improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Recreational
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Automobile
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Commercial business
loans
|
69 | - | 69 | (4 | ) | 65 | 81 | 5 | ||||||||||||||||||||
Subtotal loans
|
2,136 | (38 | ) | 2,098 | (144 | ) | 1,954 | 2,305 | 131 | |||||||||||||||||||
Total
|
$ | 5,238 | $ | (418 | ) | $ | 4,820 | $ | (144 | ) | $ | 4,676 | $ | 5,277 | $ | 229 |
At or for the nine months ended September 30, 2011
|
||||||||||||||||||||||||||||
YTD
|
YTD
|
|||||||||||||||||||||||||||
Unpaid
|
Adjusted
|
Average
|
Interest
|
|||||||||||||||||||||||||
Principal
|
Write-
|
Recorded
|
Specific
|
Recorded
|
Recorded
|
Income
|
||||||||||||||||||||||
Balance
|
downs
|
Investment
|
Reserve
|
Investment
|
Investment
|
Recognized
|
||||||||||||||||||||||
WITH NO RELATED
ALLOWANCE RECORDED
|
||||||||||||||||||||||||||||
Commercial
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Construction and
development
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home equity
|
- | - | - | - | - | - | - | |||||||||||||||||||||
One-to-four family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Multi-family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Indirect home
improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Recreational
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Automobile
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Commercial business
loans
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Subtotal loans
|
- | - | - | - | - | - | - | |||||||||||||||||||||
WITH AN ALLOWANCE RECORDED
|
||||||||||||||||||||||||||||
Commercial
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Construction and
development
|
2,596 | - | 2,596 | (626 | ) | 1,970 | 2,617 | 120 | ||||||||||||||||||||
Home equity
|
- | - | - | - | - | - | - | |||||||||||||||||||||
One-to-four family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Multi-family
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Indirect home
improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Recreational
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Automobile
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Home improvement
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Commercial business
loans
|
3,256 | (397 | ) | 2,859 | (291 | ) | 2,568 | 2,950 | 113 | |||||||||||||||||||
Subtotal loans
|
5,852 | (397 | ) | 5,455 | (917 | ) | 4,538 | 5,567 | 233 | |||||||||||||||||||
Total
|
$ | 5,852 | $ | (397 | ) | $ | 5,455 | $ | (917 | ) | $ | 4,538 | $ | 5,567 | $ | 233 |
September 30, 2012
|
||||||||||||||||||||||||
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
||||||||||||||||||||
(1-5) | (6) | (7) | (8) | (9) |
Total
|
|||||||||||||||||||
REAL ESTATE LOANS
|
||||||||||||||||||||||||
Commercial
|
$ | 28,569 | $ | 3,333 | $ | - | $ | 877 | $ | - | $ | 32,779 | ||||||||||||
Construction and
development
|
22,893 | - | - | 1,587 | - | 24,480 | ||||||||||||||||||
Home equity
|
14,496 | - | - | 197 | - | 14,693 | ||||||||||||||||||
One-to-four family
|
9,433 | - | - | 907 | - | 10,340 | ||||||||||||||||||
Multi-family
|
1,397 | - | - | - | - | 1,397 | ||||||||||||||||||
Total real estate loans
|
76,788 | 3,333 | - | 3,568 | - | 83,689 | ||||||||||||||||||
CONSUMER
|
||||||||||||||||||||||||
Indirect home improvement
|
81,850 | - | - | 335 | - | 82,185 | ||||||||||||||||||
Recreational
|
30,773 | - | - | - | - | 30,773 | ||||||||||||||||||
Automobile
|
3,030 | - | - | 27 | - | 3,057 | ||||||||||||||||||
Home improvement
|
689 | - | - | 32 | - | 721 | ||||||||||||||||||
Other
|
1,430 | - | - | - | - | 1,430 | ||||||||||||||||||
Total consumer loans
|
117,772 | - | - | 394 | - | 118,166 | ||||||||||||||||||
COMMERCIAL BUSINESS LOANS
|
60,457 | - | 765 | 266 | - | 61,488 | ||||||||||||||||||
Total
|
$ | 255,017 | $ | 3,333 | $ | 765 | $ | 4,228 | $ | - | $ | 263,343 |
December 31, 2011
|
||||||||||||||||||||||||
Pass
|
Watch
|
Special Mention
|
Substandard
|
Doubtful
|
||||||||||||||||||||
(1-5) | (6) | (7) | (8) | (9) |
Total
|
|||||||||||||||||||
REAL ESTATE LOANS
|
||||||||||||||||||||||||
Commercial
|
$ | 24,640 | $ | 4,291 | $ | - | $ | - | $ | - | $ | 28,931 | ||||||||||||
Construction and
development
|
7,881 | - | - | 2,263 | - | 10,144 | ||||||||||||||||||
Home equity
|
14,240 | - | - | 267 | - | 14,507 | ||||||||||||||||||
One-to-four family
|
7,789 | - | - | 963 | - | 8,752 | ||||||||||||||||||
Multi-family
|
1,175 | - | - | - | - | 1,175 | ||||||||||||||||||
Total real estate loans
|
55,725 | 4,291 | - | 3,493 | - | 63,509 | ||||||||||||||||||
CONSUMER
|
||||||||||||||||||||||||
Indirect home improvement
|
80,689 | - | - | 454 | - | 81,143 | ||||||||||||||||||
Recreational
|
24,470 | - | - | 1 | - | 24,471 | ||||||||||||||||||
Automobile
|
5,809 | - | - | 23 | - | 5,832 | ||||||||||||||||||
Home improvement
|
934 | - | - | - | - | 934 | ||||||||||||||||||
Other
|
1,806 | - | - | 20 | - | 1,826 | ||||||||||||||||||
Total consumer loans
|
113,708 | - | - | 498 | - | 114,206 | ||||||||||||||||||
COMMERCIAL BUSINESS LOANS
|
42,007 | - | 973 | 357 | - | 43,337 | ||||||||||||||||||
Total
|
$ | 211,440 | $ | 4,291 | $ | 973 | $ | 4,348 | $ | - | $ | 221,052 |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Troubled debt restructured loans still on accrual
|
$ | 2,133 | $ | 3,117 | ||||
Troubled debt restructured loans on non-accrual
|
990 | 132 | ||||||
Total troubled debt restructured loans
|
$ | 3,123 | $ | 3,249 |
At or for the nine months ended September 30, 2012
|
||||||||||||||||
Increase
|
Charge-offs
|
|||||||||||||||
Number of
|
Recorded
|
(Decrease) in
|
to the
|
|||||||||||||
Contracts
|
Investment
|
the Allowance
|
Allowance
|
|||||||||||||
Commercial Business Loans
|
1 | $ | 70 | $ | 7 | $ | 2 | |||||||||
1 | $ | 70 | $ | 7 | $ | 2 |
At or for the three months ended
|
||||||||
September 30,
|
September 30,
|
|||||||
2012
|
2011
|
|||||||
Beginning balance
|
$ | 425 | $ | 197 | ||||
Additions
|
327 | - | ||||||
Mortgage servicing rights amortized
|
(36 | ) | (19 | ) | ||||
Mortgage servicing rights impairment
|
(108 | ) | - | |||||
Ending balance
|
$ | 608 | $ | 178 |
At or for the nine months ended
|
||||||||
September 30,
|
September 30,
|
|||||||
2012
|
2011
|
|||||||
Beginning balance
|
$ | 200 | $ | 245 | ||||
Additions
|
596 | - | ||||||
Mortgage servicing rights amortized
|
(83 | ) | (67 | ) | ||||
Mortgage servicing rights impairment
|
(105 | ) | - | |||||
Ending balance
|
$ | 608 | $ | 178 |
For three months ended
|
For nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Other Real Estate Owned
|
||||||||||||||||
Beginning balance
|
$ | 2,950 | $ | 5,925 | $ | 4,589 | $ | 3,701 | ||||||||
Additions
|
- | - | 921 | 2,623 | ||||||||||||
Fair value write-downs
|
(99 | ) | (205 | ) | (693 | ) | (325 | ) | ||||||||
Disposition of assets
|
(530 | ) | (333 | ) | (2,496 | ) | (612 | ) | ||||||||
Ending balance
|
$ | 2,321 | $ | 5,387 | $ | 2,321 | $ | 5,387 |
For three months ended
|
For nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Other Repossessed Assets
|
||||||||||||||||
Beginning balance
|
$ | 5 | $ | 92 | $ | 78 | $ | 78 | ||||||||
Additions
|
28 | 152 | 118 | 414 | ||||||||||||
Disposition of assets
|
(8 | ) | (89 | ) | (171 | ) | (337 | ) | ||||||||
Ending balance
|
$ | 25 | $ | 155 | $ | 25 | $ | 155 |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Interest-bearing checking
|
$ | 24,914 | $ | 20,669 | ||||
Noninterest-bearing checking
|
31,434 | 19,254 | ||||||
Savings
|
12,146 | 11,567 | ||||||
Money market
|
108,643 | 99,022 | ||||||
Certificates of deposits less than $100,000
|
39,835 | 36,220 | ||||||
Certificates of deposits $100,000 to $250,000
|
33,283 | 36,912 | ||||||
Certificates of deposits $250,000 and over
|
24,569 | 22,774 | ||||||
Total
|
$ | 274,824 | $ | 246,418 |
Periods Ending
|
As of
|
|||
December 31,
|
September 30, 2012
|
|||
2012
|
$ | 27,443 | ||
2013
|
19,532 | |||
2014
|
20,859 | |||
2015
|
19,289 | |||
2016
|
6,689 | |||
2017
|
3,875 | |||
Thereafter
|
- | |||
$ | 97,687 |
For three months ended
|
For nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Interest-bearing checking
|
$ | 11 | $ | 19 | $ | 41 | $ | 72 | ||||||||
Savings and money market
|
136 | 155 | 447 | 597 | ||||||||||||
Certificates of deposit
|
396 | 481 | 1,227 | 1,525 | ||||||||||||
Total
|
$ | 543 | $ | 655 | $ | 1,715 | $ | 2,194 |
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
COMMITMENTS TO EXTEND CREDIT
|
||||||||
Real Estate Loans
|
||||||||
Construction development
|
$ | 20,768 | $ | 6,252 | ||||
One-to-four family
|
14,761 | 1,223 | ||||||
Home equity
|
11,354 | 11,621 | ||||||
Commercial
|
202 | 235 | ||||||
Total real estate loans
|
47,085 | 19,331 | ||||||
Consumer Loans
|
||||||||
Indirect home improvement
|
604 | 814 | ||||||
Other
|
6,407 | 6,775 | ||||||
Total consumer loans
|
7,011 | 7,589 | ||||||
Commercial Business Loans
|
35,085 | 31,789 | ||||||
Total commitments to extend credit
|
$ | 89,181 | $ | 58,709 |
Actual
|
For Capital
Adequacy Purposes
|
To be Well Capitalized
Under Prompt Corrective
Action Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of September 30, 2012
|
||||||||||||||||||||||||
Total Risk-based Capital
|
$ | 48,491 | 17.07 | % | $ | 22,725 | 8.00 | % | $ | 28,406 | 10.00 | % | ||||||||||||
(to Risk-weighted Assets)
|
||||||||||||||||||||||||
Tier I Risk-based Capital
|
$ | 44,929 | 15.82 | % | $ | 11,362 | 4.00 | % | $ | 17,044 | 6.00 | % | ||||||||||||
(to Risk-weighted Assets)
|
||||||||||||||||||||||||
Tier I Leverage Capital
|
$ | 44,929 | 13.22 | % | $ | 13,597 | 4.00 | % | $ | 16,997 | 5.00 | % | ||||||||||||
(to Average Assets)
|
||||||||||||||||||||||||
As of December 31, 2011
|
||||||||||||||||||||||||
Total Risk-based Capital
|
$ | 29,441 | 12.29 | % | $ | 19,158 | 8.00 | % | $ | 23,947 | 10.00 | % | ||||||||||||
(to Risk-weighted Assets)
|
||||||||||||||||||||||||
Tier I Risk-based Capital
|
$ | 26,431 | 11.04 | % | $ | 9,579 | 4.00 | % | $ | 14,368 | 6.00 | % | ||||||||||||
(to Risk-weighted Assets)
|
||||||||||||||||||||||||
Tier I Leverage Capital
|
$ | 26,431 | 9.30 | % | $ | 11,365 | 4.00 | % | $ | 14,206 | 5.00 | % | ||||||||||||
(to Average Assets)
|
Company
|
Bank
|
|||||||||||
September 30,
|
September 30,
|
December 31,
|
||||||||||
2012
|
2012
|
2011
|
||||||||||
Equity
|
$ | 59,372 | $ | 47,605 | $ | 26,767 | ||||||
Unrealized gain on AFS securities
|
(1,439 | ) | (1,439 | ) | (316 | ) | ||||||
Disallowed deferred tax assets
|
(1,176 | ) | (1,176 | ) | - | |||||||
Disallowed servicing assets
|
(61 | ) | (61 | ) | (20 | ) | ||||||
Total Tier 1 capital
|
56,696 | 44,929 | 26,431 | |||||||||
Allowance for loan losses
for regulatory capital purposes
|
3,562 | 3,562 | 3,010 | |||||||||
Total risk-based capital
|
$ | 60,258 | $ | 48,491 | $ | 29,441 |
Level 1 –
|
Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
Level 2 –
|
Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
Level 3 –
|
Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
Securities Available-for-Sale
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
September 30, 2012
|
||||||||||||||||
Federal agency securities
|
$ | – | $ | 11,712 | $ | – | $ | 11,712 | ||||||||
Municipal bonds
|
– | 6,689 | – | 6,689 | ||||||||||||
Mortgage-backed securities
|
– | 20,393 | – | 20,393 | ||||||||||||
$ | – | $ | 38,794 | $ | – | $ | 38,794 |
Securities Available-for-Sale
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
December 31, 2011
|
||||||||||||||||
Federal agency securities
|
$ | - | $ | 14,329 | $ | - | $ | 14,329 | ||||||||
Municipal bonds
|
- | 4,005 | - | 4,005 | ||||||||||||
Mortgage-backed securities
|
- | 8,565 | - | 8,565 | ||||||||||||
$ | - | $ | 26,899 | $ | - | $ | 26,899 |
Impaired Loans
|
||||||||||||||||||||
Total
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
||||||||||||||||
September 30, 2012
|
$ | – | $ | – | $ | 3,787 | $ | 3,787 | $ | (195 | ) | |||||||||
December 31, 2011
|
$ | – | $ | – | $ | 4,820 | $ | 4,820 | $ | (144 | ) |
OREO and Other Repossessed Assets
|
||||||||||||||||||||
Total
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Impairment
|
||||||||||||||||
September 30, 2012
|
$ | – | $ | – | $ | 2,346 | $ | 2,346 | $ | (693 | ) | |||||||||
December 31, 2011
|
$ | – | $ | – | $ | 4,667 | $ | 4,667 | $ | (594 | ) |
September 30, 2012
|
December 31, 2011
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Level 1 inputs:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 12,177 | $ | 12,177 | $ | 19,253 | $ | 19,253 | ||||||||
Level 2 inputs:
|
||||||||||||||||
Securities available-for-sale
|
38,794 | 38,794 | 26,899 | 26,899 | ||||||||||||
Loans held for sale
|
8,511 | 8,511 | – | – | ||||||||||||
FHLB stock
|
1,781 | 1,781 | 1,797 | 1,797 | ||||||||||||
Accrued interest receivable
|
1,283 | 1,283 | 1,020 | 1,020 | ||||||||||||
Level 3 inputs:
|
||||||||||||||||
Loans receivable, net
|
259,157 | 289,695 | 217,131 | 234,351 | ||||||||||||
Mortgage servicing rights
|
608 | 608 | 200 | 255 | ||||||||||||
Financial Liabilities
|
||||||||||||||||
Level 2 inputs:
|
||||||||||||||||
Deposits
|
274,824 | 290,250 | 246,418 | 248,643 | ||||||||||||
Borrowings
|
4,100 | 4,341 | 8,900 | 9,130 |
·
|
statements of our goals, intentions and expectations;
|
·
|
statements regarding our business plans, prospects, growth and operating strategies;
|
·
|
statements regarding the quality of our loan and investment portfolios; and
|
·
|
estimates of our risks and future costs and benefits.
|
·
|
general economic conditions, either nationally or in our market area, that are worse than expected;
|
·
|
the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write offs and changes in our allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets;
|
·
|
fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market area;
|
·
|
increases in premiums for deposit insurance;
|
·
|
the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation;
|
·
|
changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments;
|
·
|
increased competitive pressures among financial services companies;
|
·
|
our ability to execute our plans to grow our residential construction lending, our mortgage banking operations and our warehouse lending and the geographic expansion of our indirect home improvement lending;
|
·
|
our ability to attract and retain deposits;
|
·
|
our ability to control operating costs and expenses;
|
·
|
changes in consumer spending, borrowing and savings habits;
|
·
|
our ability to successfully manage our growth;
|
·
|
legislative or regulatory changes that adversely affect our business or increase capital requirements, including the effect of the Dodd-Frank Act, changes in regulation policies and principles, or the interpretation of regulatory capital or other rules including Basel III;
|
·
|
adverse changes in the securities markets;
|
·
|
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Public Company Accounting Oversight Board or the Financial Accounting Standards Board;
|
·
|
costs and effects of litigation, including settlements and judgments;
|
·
|
inability of key third-party vendors to perform their obligations to us;
|
·
|
statements with respect to our intentions regarding disclosure and other changes resulting from the Jumpstart Our Business Startups Act (“JOBS Act”); and
|
·
|
other economic, competitive, governmental, regulatory and technical factors affecting our operations, pricing, products and services and other risks described elsewhere in this report.
|
·
|
not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002 (the Company also will not be subject to the auditor attestation requirements of Section 404(b) as long as the Company is a “smaller reporting company,” which includes issuers that had a public float of less than $75 million as of the last business day of their most recently completed second fiscal quarter);
|
·
|
reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements; and
|
·
|
exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Non-performing assets-
|
||||||||
Non-accrual loans
|
$ | 2,096 | $ | 2,227 | ||||
Other real estate owned
|
2,321 | 4,589 | ||||||
Repossessed consumer property
|
25 | 78 | ||||||
Total non-performing assets
|
4,442 | $ | 6,894 |
Item 1.
|
Legal Proceedings
|
In the normal course of business, the Company occasionally becomes involved in various legal proceedings. In the opinion of management, any liability from such proceedings would not have a material adverse effect on the business or financial condition of the Company. See Note 9 of the Notes to Consolidated Financial Statements under Part I, Item 1 of this 10-Q.
|
|
Item 1A.
|
Risk Factors
|
For information regarding the Company’s risk factors, see “Risk Factors” in the Company’s prospectus dated May 14, 2012, filed with the Securities and Exchange Commission pursuant to Rule 424(b)(3) on May 24, 2012. As of September 30, 2012, the risk factors of the Company have not changed materially from those disclosed in the prospectus.
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Not applicable.
|
|
Item 3.
|
Defaults Upon Senior Securities
|
Not applicable.
|
|
Item 4.
|
Mine Safety Disclosures
|
Not applicable.
|
|
Item 5.
|
Other Information
|
Subsequent to September 30, 2012, the Company agreed in principle to sell up to $13.0 million of consumer marine loans, which is expected to close during the fourth quarter of 2012 subject to finalizing the terms of the purchase and sale agreement. Based on the preliminary data, the Company anticipates that the sale will result in a pretax gain during the fourth quarter of 2012 between $125,000 and $200,000 depending on the costs incurred in connection with the transaction. These loans are included in the loan tables as consumer loans and listed in the “recreational” consumer loan category at September 30, 2012. These loans have interest rates of between 6.00% and 11.75% and maturity terms of up to 20 years from the date of origination. The primary purpose in selling these consumer loans is to enable the Company to continue to diversify the balance sheet and manage interest rate risk.
|
|
Item 6.
|
Exhibits
|
See Exhibit Index
|
FS BANCORP, INC.
|
||
Date: November 13, 2012
|
By:
|
/s/Joseph C. Adams |
Joseph C. Adams,
|
||
Chief Executive Officer
|
||
(Duly Authorized Officer)
|
||
Date: November 13, 2012
|
By:
|
/s/Matthew D. Mullet |
Matthew D. Mullet
|
||
Secretary, Treasurer and
|
||
Chief Financial Officer
|
||
(Principal Financial and Accounting Officer)
|
Exhibits:
|
|
2.0
|
Plan of Conversion (incorporated herein by reference to Exhibit 2.0 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-177125))
|
3.1
|
Articles of Incorporation of FS Bancorp, Inc. (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-177125))
|
3.2
|
Bylaws of FS Bancorp, Inc. (incorporated herein by reference to Exhibit 3.2 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-177125))
|
4.0
|
Form of Common Stock Certificate of FS Bancorp, Inc. (incorporated herein by reference to Exhibit 4.0 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-177125))
|
10.1
|
Severance Agreement between 1st Security Bank of Washington and Joseph C. Adams (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-177125))
|
10.2
|
Form of Change of Control Agreement between 1st Security Bank of Washington and each of Matthew D. Mullet, Steven L. Haynes and Drew B. Ness (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-177125))
|
10.3
|
Director Fee Arrangements (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-177125))
|
31.1
|
Rule 13a-14(a) Certification of the Chief Executive Officer
|
31.2
|
Rule 13a-14(a) Certification of the Chief Financial Officer
|
32.0
|
Section 1350 Certification
|
101
|
Interactive Data Files*
|
*
|
In accordance with Rule 406T of Regulation S-T, these interactive data files are deemed not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of FS Bancorp, Inc. (the “Company”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of 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 Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company 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 Company, including its consolidated subsidiary, 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 purposed in accordance with generally accepted accounting principles; |
|
(c)
|
evaluated the effectiveness of the Company’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 evaluations; and
|
|
(d)
|
disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
|
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’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 Company’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 Company’s internal control over financial reporting.
|
November 13, 2012
|
By:
|
/s/Joseph C. Adams |
Joseph C. Adams
|
||
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of FS Bancorp, Inc. (the “Company”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of 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 Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company 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 Company, including its consolidated subsidiary, 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 purposed in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of the Company’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 evaluations; and
|
|
(d)
|
disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’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 Company’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 Company’s internal control over financial reporting.
|
November 13, 2012
|
By:
|
/s/Matthew D. Mullet |
Matthew D. Mullet
|
||
Secretary, Treasurer and
|
||
Chief Financial Officer
|
November 13, 2012
|
By:
|
/s/Joseph C. Adams |
Joseph C. Adams
|
||
Chief Executive Officer
|
||
November 13, 2012
|
By:
|
/s/Matthew D. Mullet |
Matthew D. Mullet
|
||
Secretary, Treasurer and
|
||
Chief Financial Officer
|
Note 9 - Commitments and Contingencies: Commitments and Contingencies Policy (Policies)
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Policies | |
Commitments and Contingencies Policy | Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customers creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on managements credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties.
Unfunded commitments under commercial lines-of-credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines-of-credit are uncollateralized and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which we are committed.
Because of the nature of our activities, we are subject to various pending and threatened legal actions, which arise in the ordinary course of business. From time to time, subordination liens may create litigation which requires us to defend our lien rights. In the opinion of management, liabilities arising from these claims, if any, will not have a material effect on our financial position. |
Note 4 - Loans Receivable and Allowance For Loan Losses: Schedule of Impaired Loans With and Without Related Allowance (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impaired Loans With and Without Related Allowance |
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Note 3 - Securities Available-for-sale: Schedule of Available-for-sale Securities Reconciliation (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation |
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Note 11 - Fair Value of Financial Instruments: Schedule of Fair Value of Financial Instruments (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Financial Instruments |
|
Note 4 - Loans Receivable and Allowance For Loan Losses: Schedule of Loans by Internal Risk Rating (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans by Internal Risk Rating |
|
Note 11 - Fair Value of Financial Instruments: Schedule of Other Real Estate Owned and Repossessed Assets Measured at Fair Value on Nonrecurring Basis (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
OREO and Other Repossessed Assets Level 3 | $ 2,346 | $ 4,667 |
OREO and Other Repossessed Assets Total Level 1-3 | 2,346 | 4,667 |
Total Impairment OREO and Other Repossessed Assets | $ (693) | $ (594) |
Note 13 - Subsequent Event: Subsequent Events, Policy (Policies)
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Policies | |
Subsequent Events, Policy | Subsequent to September 30, 2012, the Company agreed in principle to sell up to $13.0 million of consumer marine loans, which is expected to close during the fourth quarter of 2012 subject to finalizing the terms of the purchase and sale agreement. Based on the preliminary data, the Company anticipates that the sale will result in a pretax gain during the fourth quarter of 2012 between $125,000 and $200,000 depending on the costs incurred in connection with the transaction. These loans are included in the loan tables as consumer loans and listed in the recreational consumer loan category at September 30, 2012. These loans have interest rates of between 6.00% and 11.75% and maturity terms of up to 20 years from the date of origination. The primary purpose in selling these consumer loans is to enable the Company to continue to diversify the balance sheet and manage interest rate risk. |
Note 6 - Other Real Estate Owned ("OREO") and Other Repossessed Assets: Other Real Estate Owned Policy (Policies)
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Policies | |
Other Real Estate Owned Policy | At September 30, 2012, OREO consisted of four properties in Washington, with balances ranging from $94,000 to $1.1 million. For the three months ended September 30, 2012 and 2011, the Bank recorded a net gain of $17,000 and a net loss of $8,000, respectively, and for the nine months ended September 30, 2012 and 2011, the Bank recorded a net loss of $35,000 and $5,000, respectively, on disposals of OREO. The holding costs associated with OREO in the amount of $155,000 and $153,000. |
Note 3 - Securities Available-for-sale: Investments with Unrealized Losses Policy (Details)
|
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Investments with Unrealized Losses Less than One Year | 3 | 5 |
Note 6 - Other Real Estate Owned ("OREO") and Other Repossessed Assets: Schedule of Other Repossessed Assets (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Other Repossessed Assets Beginning Balance | $ 5 | $ 92 | $ 78 | $ 78 |
Other Repossessed Assets Additions | 28 | 152 | 118 | 414 |
Other Repossessed Assets Disposition of Assets | (8) | (89) | (171) | (337) |
Other Repossessed Assets Ending Balance | $ 25 | $ 155 | $ 25 | $ 155 |
Note 4 - Loans Receivable and Allowance For Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debtor Troubled Debt Restructuring, Current Period |
|
Note 5 - Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Mortgage Servicing Rights Beginning Balance | $ 425 | $ 197 | $ 200 | $ 245 |
Mortgage Servicing Rights Additions | 327 | 596 | ||
Mortgage Servicing Rights Amortized | (36) | (19) | (83) | (67) |
Mortgage Servicing Rights Impairment Reversal | (108) | (105) | ||
Mortgage Servicing Rights Ending Balance | $ 608 | $ 178 | $ 608 | $ 178 |
Note 4 - Loans Receivable and Allowance For Loan Losses: Troubled Debt Restructuring Policy (Details)
|
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Number of Troubled Debt Restructured Loans Still on Accrual and Included in Impaired Loans | 2 | 3 |
Number of Troubled Debt Restructured Loans on Nonaccrual | 3 | 3 |
Note 6 - Other Real Estate Owned ("OREO") and Other Repossessed Assets: Schedule of Other Real Estate Owned (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Other Real Estate Owned Beginning Balance | $ 2,950 | $ 5,925 | $ 4,589 | $ 3,701 |
Other Real Estate Owned Additions | 921 | 2,623 | ||
OREO fair value write-downs, net of (gain) loss on sales | (99) | (205) | (693) | (325) |
Other Real Estate Owned Disposition of Assets | (530) | (333) | (2,496) | (612) |
Other Real Estate Owned Ending Balance | $ 2,321 | $ 5,387 | $ 2,321 | $ 5,387 |
Note 2 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
||||||
Net income from earnings per share | $ 3,325 | $ 225 | [1] | $ 4,223 | [1] | $ 1,233 | [1] | ||
Denominator for basic earnings per share-weighted average common shares outstanding | 3,240,125 | ||||||||
Denominator for diluted earnings per share-weighted average common shares outstanding | 3,240,125 | ||||||||
Earnings Per Share, Basic | $ 1.03 | ||||||||
Earnings Per Share, Diluted | $ 1.03 | ||||||||
|
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements
In May 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-03Reconsideration of Effective Control for Repurchase Agreements impacting FASB ASC 860-40, Transfers and Servicing. Entities that enter into repurchase and similar agreements will be required to account for even more of the transactions as secured borrowings. The amendment changes the assessment of effective control by focusing on the transferors contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This update becomes effective for the Company on a prospective basis for new transfers and modifications of existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. The adoption of this ASU did not have a material impact on the Companys consolidated financial statements.
In May 2011, the FASB issued ASU No. 2011-04Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. This update clarifies the methodologies and assumptions to be used by entities applying fair value measures, expands disclosure of qualitative factors used in determining fair values, and provides guidance on measuring the fair value of financial instruments included within equity. This update was effective for the Company on a prospective basis for the first interim or annual period beginning on or after December 15, 2011. This updated guidance impacted financial statement disclosures, but did not have an effect on the Companys consolidated financial statements.
In May 2011, the FASB issued ASU No. 2011-05Presentation of Comprehensive Income. This update provides an option to entities reporting comprehensive income to present the components of net income, other comprehensive income, and total comprehensive income within a single continuous statement of comprehensive income or in two separate but consecutive statements. This update becomes effective for the Company on a retrospective basis in the first interim or annual period beginning on or after December 15, 2011. This updated guidance impacted the presentation of the components of comprehensive income, but did not have an effect on Companys consolidated financial statements.
In December 2011, the FASB issued ASU No. 2011 11Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The objective of this ASU is to enhance disclosures and provide converged disclosures under U.S. GAAP and IFRS about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. This ASU requires disclosure of both net and gross information for these assets and liabilities. The new guidance will be effective for annual and interim periods beginning on or after January 1, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Companys consolidated financial statements.
In July 2012, the FASB issued ASU No. 2012-2Intangibles Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The objective of this ASU is to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible asset by simplifying how an entity test those assets for impairment and improve consistency in impairment testing guidance among long-lived asset categories. The update provides the option to first assess the qualitative factors to determine whether it is necessary to perform a quantitative impairment test. A quantitative impairment calculation is required if based on the qualitative assessment that it is more likely than not that the asset is impaired. The new guidance will be effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Management does not expect the adoption of this guidance to have a material impact on the Companys consolidated financial statements.
|
Note 3 - Securities Available-for-sale: Schedule of Sales of Available for Sale Securities (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||
Schedule of Sales of Available for Sale Securities |
|
Note 11 - Fair Value of Financial Instruments: Fair Value Measurement, Policy (Policies)
|
3 Months Ended |
---|---|
Sep. 30, 2012
|
|
Policies | |
Fair Value Measurement, Policy | The Company assume interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair value of our financial instruments will change when interest rate levels change and that change may either be favorable or unfavorable to us. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed interest rate obligations are less likely to prepay in a rising interest rate environment and more likely to prepay in a falling interest rate environment. Conversely, depositors who are receiving fixed interest rates are more likely to withdraw funds before maturity in a rising interest rate environment and less likely to do so in a falling interest rate environment. Management monitors interest rates and maturities of assets and liabilities, and attempts to minimize interest rate risk by adjusting terms of new loans, and deposits, and by investing in securities with terms that mitigate the Banks overall interest rate risk.
Accounting guidance regarding fair value measurements defines fair value and establishes a framework for measuring fair value in accordance with GAAP. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The following definitions describe the levels of inputs that may be used to measure fair value:
Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Note 3 - Securities Available-for-sale: Schedule of Sales of Available for Sale Securities (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
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Sep. 30, 2011
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Proceeds
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Available-for-sale Securities | $ 2,432 | $ 279 |
Gross Gains
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Available-for-sale Securities | $ 106 | $ 18 |
Note 8 - Income Taxes: Income Tax Policy (Policies)
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3 Months Ended |
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Sep. 30, 2012
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Policies | |
Income Tax Policy | During the quarter and nine months ended September 30, 2012, the Company recorded a net $2.3 million income tax benefit, which was the result of reversing substantially all of the deferred tax asset valuation allowance. There was no provision for federal income tax expense during the comparable periods ended September 30, 2011. The Company does not expect to recognize any income tax expense until the first quarter of 2013, as the remaining deferred tax asset valuation allowance of $269,000 is expected to offset income tax expense for the fourth quarter of 2012. The deferred tax asset valuation allowance was established as a result of cumulative losses incurred in 2007, 2008 and 2009 due to the economic downturn caused by the recession and uncertainty at that time regarding the Companys ability to generate future taxable income.
The Company has reported pre-tax income in 2010, 2011 and for the nine months ended September 30, 2012, which provides positive evidence that the trend of losses during the recession has been reversed. In addition, on July 9, 2012, the Bank converted from a mutual bank to a stock bank upon the successful completion of the initial public offering (IPO). Based on the profitable operations during the current period and two preceding years, the successful capital raise of $32.4 million in the IPO and the expectation of continued profitability, the Company determined that it was more likely than not that the net deferred tax asset would be realized. As of September 30, 2012 the net deferred tax asset was $2.7 million consisting of $3.0 million reduced by a partial valuation allowance of $269,000. As of December 31, 2011 the Company had a deferred tax asset of $3.2 million that was reduced by a full $3.2 million valuation allowance.
As of September 30, 2012 and December 31, 2011, the Company had no uncertain tax positions. The Company recognizes interest and penalties in tax expense and at September 30, 2012 and December 31, 2011 no interest or penalties were recognized. |
Note 4 - Loans Receivable and Allowance For Loan Losses: Schedule of Allowance for Loan Losses by Loan Categories (Tables)
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Schedule of Allowance for Loan Losses by Loan Categories |
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Note 11 - Fair Value of Financial Instruments: Schedule of Available for Sale Securities Measured at Fair Value on a Recurring Basis (Tables)
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Sep. 30, 2012
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Schedule of Available for Sale Securities Measured at Fair Value on a Recurring Basis |
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Note 7 - Deposits: Schedule of Deposit Liabilities (Tables)
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Sep. 30, 2012
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Schedule of Deposit Liabilities |
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Note 2 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)
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Sep. 30, 2012
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Schedule of Earnings Per Share, Basic and Diluted |
The Company purchased 259,210 shares in the open market for the Employee Stock Ownership Plan (ESOP). For earnings per share calculations, the ESOP shares are included as outstanding shares. As of September 30, 2012, zero shares have been allocated to employees through this plan.
(1) Earnings per share and share calculations are not meaningful (nm) as the Company completed its stock conversion and became a public company on July 9, 2012. |
Note 2 - Earnings Per Share
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Sep. 30, 2012
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Note 2 - Earnings Per Share | NOTE 2 EARNINGS PER SHARE
Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the three and nine months ended September 30, 2012 and 2011.
The Company purchased 259,210 shares in the open market for the Employee Stock Ownership Plan (ESOP). For earnings per share calculations, the ESOP shares are included as outstanding shares. As of September 30, 2012, zero shares have been allocated to employees through this plan.
(1) Earnings per share and share calculations are not meaningful (nm) as the Company completed its stock conversion and became a public company on July 9, 2012.
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Note 7 - Deposits: Schedule of Maturities of Time Deposits for Future Periods (Tables)
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Sep. 30, 2012
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Schedule of Maturities of Time Deposits for Future Periods |
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