[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended | June 30, 2011 |
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number | 001-12103 |
Mississippi | 64-0709834 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Lameuse and Howard Avenues, Biloxi, Mississippi | 39533 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company X | |||
Do not check if a smaller reporting company |
Item 1: Financial Statements |
June 30, 2011 | December 31, 2010 | |||||||
(Unaudited) | (Audited) | |||||||
Assets |
||||||||
Cash and due from banks |
$ | 45,605,429 | $ | 24,146,939 | ||||
Available for sale securities |
319,529,536 | 287,078,463 | ||||||
Held to maturity securities, fair value of $2,006,142 at June 30, 2011;
$2,010,430 at December 31, 2010 |
1,916,323 | 1,914,879 | ||||||
Other investments |
3,843,455 | 3,926,371 | ||||||
Federal Home Loan Bank Stock, at cost |
2,153,000 | 2,281,200 | ||||||
Loans |
393,389,744 | 409,898,757 | ||||||
Less: Allowance for loan losses |
6,713,484 | 6,650,258 | ||||||
Loans, net |
386,676,260 | 403,248,499 | ||||||
Bank premises and equipment, net
of accumulated depreciation |
28,853,143 | 29,756,239 | ||||||
Other real estate |
8,163,237 | 5,744,150 | ||||||
Accrued interest receivable |
3,532,014 | 3,292,430 | ||||||
Cash surrender value of life insurance |
16,076,138 | 15,951,117 | ||||||
Prepaid FDIC assessments |
2,898,420 | 3,652,972 | ||||||
Other assets |
1,968,018 | 5,552,225 | ||||||
Total assets |
$ | 821,214,973 | $ | 786,545,484 | ||||
2
June 30, 2011 | December 31, 2010 | |||||||
(Unaudited) | (Audited) | |||||||
Liabilities & Shareholders Equity | ||||||||
Liabilities: |
||||||||
Deposits: |
||||||||
Demand, non-interest bearing |
$ | 109,784,048 | $ | 108,277,985 | ||||
Savings and demand, interest bearing |
217,789,641 | 193,631,209 | ||||||
Time, $100,000 or more |
124,242,102 | 134,667,660 | ||||||
Other time deposits |
46,603,645 | 47,562,661 | ||||||
Total deposits |
498,419,436 | 484,139,515 | ||||||
Federal funds purchased and securities sold under
agreements to repurchase |
169,044,469 | 140,102,019 | ||||||
Borrowings from Federal Home Loan Bank |
28,955,873 | 42,957,016 | ||||||
Other liabilities |
18,547,716 | 17,990,072 | ||||||
Total liabilities |
714,967,494 | 685,188,622 | ||||||
Shareholders Equity: |
||||||||
Common stock, $1 par value, 15,000,000 shares
authorized, 5,136,918 and 5,151,139 shares issued and
outstanding at June 30, 2011 and December 31, 2010 |
5,136,918 | 5,151,139 | ||||||
Surplus |
65,780,254 | 65,780,254 | ||||||
Undivided profits |
33,909,136 | 33,302,381 | ||||||
Accumulated other comprehensive income (loss),
net of tax |
1,421,171 | (2,876,912 | ) | |||||
Total shareholders equity |
106,247,479 | 101,356,862 | ||||||
Total liabilities & shareholders equity |
$ | 821,214,973 | $ | 786,545,484 | ||||
3
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest income: |
||||||||||||||||
Interest and fees on loans |
$ | 4,381,186 | $ | 4,893,342 | $ | 9,287,948 | $ | 9,880,468 | ||||||||
Interest and dividends on securities: |
||||||||||||||||
U.S. Treasuries |
63,266 | 131,216 | 127,129 | 325,478 | ||||||||||||
U.S. Government agencies |
1,711,696 | 2,312,723 | 3,151,058 | 4,612,426 | ||||||||||||
Mortgage-backed securities |
30,957 | 132,048 | 30,957 | 518,924 | ||||||||||||
States and political subdivisions |
360,357 | 316,668 | 729,458 | 673,597 | ||||||||||||
Other investments |
2,421 | 3,203 | 8,639 | 7,654 | ||||||||||||
Interest on federal funds sold |
3,386 | 1,557 | 4,738 | 5,336 | ||||||||||||
Total interest income |
6,553,269 | 7,790,757 | 13,339,927 | 16,023,883 | ||||||||||||
Interest expense: |
||||||||||||||||
Deposits |
651,406 | 849,297 | 1,354,117 | 1,666,786 | ||||||||||||
Long-term borrowings |
45,402 | 109,559 | 95,467 | 246,204 | ||||||||||||
Federal funds purchased and securities
sold under agreements to repurchase |
169,545 | 276,351 | 341,568 | 562,741 | ||||||||||||
Total interest expense |
866,353 | 1,235,207 | 1,791,152 | 2,475,731 | ||||||||||||
Net interest income |
5,686,916 | 6,555,550 | 11,548,775 | 13,548,152 | ||||||||||||
Provision for allowance for losses
on loans |
546,000 | 1,585,000 | 1,187,000 | 2,735,000 | ||||||||||||
Net interest income after provision
for allowance for losses on loans |
$ | 5,140,916 | $ | 4,970,550 | $ | 10,361,775 | $ | 10,813,152 | ||||||||
4
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Non-interest income: |
||||||||||||||||
Trust department income and fees |
$ | 323,468 | $ | 282,941 | $ | 669,923 | $ | 590,237 | ||||||||
Service charges on deposit accounts |
1,455,146 | 1,579,485 | 2,874,174 | 3,151,988 | ||||||||||||
Gain on sales or calls of securities |
7,174 | 1,563,441 | 7,174 | 1,567,486 | ||||||||||||
Increase in cash surrender value |
125,380 | 126,344 | 257,680 | 255,944 | ||||||||||||
Gain from redemption of life insurance |
389,119 | 389,119 | ||||||||||||||
Other income |
151,035 | 132,316 | 276,162 | 252,005 | ||||||||||||
Total non-interest income |
2,451,322 | 3,684,527 | 4,474,232 | 5,817,660 | ||||||||||||
Non-interest expense: |
||||||||||||||||
Salaries and employee benefits |
3,395,090 | 3,398,188 | 6,771,387 | 6,810,463 | ||||||||||||
Net occupancy |
655,236 | 544,121 | 1,269,170 | 1,068,898 | ||||||||||||
Equipment rentals, depreciation and maintenance |
951,812 | 951,312 | 1,822,212 | 1,886,765 | ||||||||||||
FDIC assessments |
437,086 | 390,517 | 842,912 | 740,904 | ||||||||||||
Other expense |
1,535,141 | 1,402,857 | 3,224,909 | 3,109,245 | ||||||||||||
Total non-interest expense |
6,974,365 | 6,686,995 | 13,930,590 | 13,616,275 | ||||||||||||
Income before income taxes |
617,873 | 1,968,082 | 905,417 | 3,014,537 | ||||||||||||
Income tax expense (benefit) |
(192,000 | ) | 522,000 | (342,000 | ) | 697,000 | ||||||||||
Net income |
$ | 809,873 | $ | 1,446,082 | $ | 1,247,417 | $ | 2,317,537 | ||||||||
Basic and diluted earnings per share |
$ | .16 | $ | .28 | $ | .24 | $ | .45 | ||||||||
5
Accumulated | ||||||||||||||||||||||||||||
Number of | Other | |||||||||||||||||||||||||||
Common | Common | Undivided | Comprehensive | Comprehensive | ||||||||||||||||||||||||
Shares | Stock | Surplus | Profits | Income (Loss) | Income | Total | ||||||||||||||||||||||
Balance, January 1,
2011 |
5,151,139 | $ | 5,151,139 | $ | 65,780,254 | $ | 33,302,381 | $ | (2,876,912 | ) | $ | 101,356,862 | ||||||||||||||||
Comprehensive
income: |
||||||||||||||||||||||||||||
Net income |
1,247,417 | $ | 1,247,417 | 1,247,417 | ||||||||||||||||||||||||
Net unrealized gain
on available for
sale securities,
net of tax |
4,302,818 | 4,302,818 | 4,302,818 | |||||||||||||||||||||||||
Reclassification
adjustment for
available for sale
securities called
or sold in current year, net of tax |
(4,735 | ) | (4,735 | ) | (4,735 | ) | ||||||||||||||||||||||
Total comprehensive income |
$ | 5,545,500 | ||||||||||||||||||||||||||
Dividend declared
($.09 per share) |
(462,323 | ) | (462,323 | ) | ||||||||||||||||||||||||
Retirement
of stock |
(14,221 | ) | (14,221 | ) | (178,339 | ) | (192,560 | ) | ||||||||||||||||||||
Balance,
June 30, 2011 |
5,136,918 | $ | 5,136,918 | $ | 65,780,254 | $ | 33,909,136 | $ | 1,421,171 | $ | 106,247,479 | |||||||||||||||||
6
Six Months Ended June 30, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 1,247,417 | $ | 2,317,537 | ||||
Adjustment to reconcile net income to net cash
provided by operating activities: |
||||||||
Depreciation |
1,176,000 | 1,218,000 | ||||||
Provision for allowance for loan losses |
1,187,000 | 2,735,000 | ||||||
Loss on writedown of other real estate |
124,606 | 77,350 | ||||||
Loss on sales of other real estate |
25,291 | 39,350 | ||||||
Loss on other investments |
82,916 | 15,550 | ||||||
Gain on sales and calls of securities |
(7,174 | ) | (1,567,486 | ) | ||||
Accretion of held to maturity securities |
(1,444 | ) | (1,413 | ) | ||||
Change in accrued interest receivable |
(239,584 | ) | 625,954 | |||||
Change in other assets |
2,605,373 | 15,556 | ||||||
Change in other liabilities |
80,850 | 20,596,976 | ||||||
Net cash provided by operating activities |
$ | 6,281,251 | $ | 26,072,374 | ||||
7
Six Months Ended June 30, | ||||||||
2011 | 2010 | |||||||
Cash flows from investing activities: |
||||||||
Proceeds from maturities, sales and calls of
available for sale securities |
$ | 78,710,848 | $ | 147,206,124 | ||||
Investment in available for sale securities |
(104,646,484 | ) | (173,037,295 | ) | ||||
Proceeds from maturities of held to maturity securities |
389,920 | |||||||
Redemption of Federal Home Loan Bank Stock |
128,200 | 1,645,100 | ||||||
Proceeds from sales of other real estate |
358,526 | 807,500 | ||||||
Loans, net change |
12,457,729 | 17,045,947 | ||||||
Acquisition of premises and equipment |
(272,904 | ) | (172,932 | ) | ||||
Investment in other assets |
(125,021 | ) | (325,325 | ) | ||||
Net cash used in investing activities |
(13,389,106 | ) | (6,440,961 | ) | ||||
Cash flows from financing activities: |
||||||||
Demand and savings deposits, net change |
25,664,495 | 20,461,290 | ||||||
Time deposits made, net change |
(11,384,574 | ) | 28,392,369 | |||||
Cash dividends |
(462,323 | ) | (515,170 | ) | ||||
Retirement of common stock |
(192,560 | ) | ||||||
Borrowings from Federal Home Loan Bank |
330,002,395 | 390,669,662 | ||||||
Repayments to Federal Home Loan Bank |
(344,003,538 | ) | (441,123,947 | ) | ||||
Federal funds purchased and securities sold
under agreements to repurchase, net change |
28,942,450 | (3,558,614 | ) | |||||
Net cash provided by (used in) financing activities |
28,566,345 | (5,674,410 | ) | |||||
Net increase in cash and cash equivalents |
21,458,490 | 13,957,003 | ||||||
Cash and cash equivalents, beginning of period |
24,146,939 | 29,155,294 | ||||||
Cash and cash equivalents, end of period |
$ | 45,605,429 | $ | 43,112,297 | ||||
8
9
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
June 30, 2011 | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Available for sale securities: |
||||||||||||||||
Debt securities: |
||||||||||||||||
U.S. Treasuries |
$ | 16,961,812 | $ | 129,805 | $ | (4,428 | ) | $ | 17,087,189 | |||||||
U.S. Government agencies |
256,404,465 | 2,564,060 | (377,975 | ) | 258,590,550 | |||||||||||
Mortgage-backed securities |
4,879,688 | 92,224 | 4,971,912 | |||||||||||||
States and political subdivisions |
36,872,481 | 1,359,439 | (2,018 | ) | 38,229,902 | |||||||||||
Total debt securities |
315,118,446 | 4,145,528 | (384,421 | ) | 318,879,553 | |||||||||||
Equity securities |
649,983 | 649,983 | ||||||||||||||
Total available for sale securities |
$ | 315,768,429 | $ | 4,145,528 | $ | (384,421 | ) | $ | 319,529,536 | |||||||
Held to maturity securities: |
||||||||||||||||
States and political subdivisions |
$ | 1,916,323 | $ | 89,819 | $ | $ | $2,006,142 | |||||||||
Total held to maturity securities |
$ | 1,916,323 | $ | 89,819 | $ | $ | 2,006,142 | |||||||||
10
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | |||||||||||||||
December 31, 2010 | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Available for sale securities: |
||||||||||||||||
Debt securities: |
||||||||||||||||
U.S. Treasuries |
$ | 26,957,061 | $ | 51,729 | $ | (499,819 | ) | $ | 26,508,971 | |||||||
U.S. Government agencies |
221,639,699 | 1,055,500 | (4,099,256 | ) | 218,595,943 | |||||||||||
States and political subdivisions |
40,578,877 | 1,114,322 | (369,633 | ) | 41,323,566 | |||||||||||
Total debt securities |
289,175,637 | 2,221,551 | (4,968,708 | ) | 286,428,480 | |||||||||||
Equity securities |
649,983 | 649,983 | ||||||||||||||
Total available for sale securities |
$ | 289,825,620 | $ | 2,221,551 | $ | (4,968,708 | ) | $ | 287,078,463 | |||||||
Held to maturity securities: |
||||||||||||||||
States and political subdivisions |
$ | 1,914,879 | $ | 95,551 | $ | $ | 2,010,430 | |||||||||
Total held to maturity securities |
$ | 1,914,879 | $ | 95,551 | $ | $ | 2,010,430 | |||||||||
Amortized Cost | Fair Value | |||||||
Available for sale securities: |
||||||||
Due in one year or less |
$ | 2,055,295 | $ | 2,094,894 | ||||
Due after one year through five years |
81,172,973 | 82,366,068 | ||||||
Due after five years through ten years |
144,730,325 | 146,645,370 | ||||||
Due after ten years |
82,280,165 | 82,801,309 | ||||||
Mortgage-backed securities |
4,879,688 | 4,971,912 | ||||||
Totals |
$ | 315,118,446 | $ | 318,879,553 | ||||
Held to maturity securities: |
||||||||
Due after one year through five years |
$ | 1,451,901 | $ | 1,524,683 | ||||
Due after five years through ten years |
464,422 | 481,459 | ||||||
Totals |
$ | 1,916,323 | $ | 2,006,142 | ||||
11
Less Than Twelve Months | Over Twelve Months | Total | ||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
June 30, 2011: | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
U.S. Treasuries |
$ | 1,001,640 | $ | 4,428 | $ | $ | $ | 1,001,640 | $ | 4,428 | ||||||||||||||
U.S. Government
agencies |
49,538,250 | 377,975 | 49,538,250 | 377,975 | ||||||||||||||||||||
States and political
subdivisions |
321,155 | 2,018 | 321,155 | 2,018 | ||||||||||||||||||||
TOTAL |
$ | 50,861,045 | $ | 384,421 | $ | $ | $ | 50,861,045 | $ | 384,421 | ||||||||||||||
December 31, 2010: |
||||||||||||||||||||||||
U.S. Treasuries |
$ | 15,457,980 | $ | 499,819 | $ | $ | $ | 15,457,980 | $ | 499,819 | ||||||||||||||
U.S. Government
agencies |
138,075,993 | 4,099,256 | 138,075,993 | 4,099,256 | ||||||||||||||||||||
States and political
subdivisions |
5,295,359 | 172,435 | 2,028,616 | 197,198 | 7,323,975 | 369,633 | ||||||||||||||||||
TOTAL |
$ | 158,829,332 | $ | 4,771,510 | $ | 2,028,616 | $ | 197,198 | $ | 160,857,948 | $ | 4,968,708 | ||||||||||||
12
June 30, 2011 | December 31, 2010 | |||||||
Gaming |
$ | 44,909,921 | $ | 44,342,798 | ||||
Residential and land development |
29,123,815 | 30,063,593 | ||||||
Real estate, construction |
62,008,715 | 60,982,989 | ||||||
Real estate, mortgage |
220,177,439 | 222,578,080 | ||||||
Commercial and industrial |
24,463,860 | 36,463,500 | ||||||
Other |
12,705,994 | 15,467,797 | ||||||
Total |
$ | 393,389,744 | $ | 409,898,757 | ||||
Loans Past | ||||||||||||||||||||||||||||
Number of Days Past Due | Due Greater | |||||||||||||||||||||||||||
Greater | Total | Total | Than 90 Days | |||||||||||||||||||||||||
30 - 59 | 60 - 89 | Than 90 | Past Due | Current | Loans | & Still Accruing | ||||||||||||||||||||||
June 30, 2011: |
||||||||||||||||||||||||||||
Gaming |
$ | $ | $ | 275,165 | $ | 275,165 | $ | 44,634,756 | $ | 44,909,921 | $ | 275,165 | ||||||||||||||||
Residential and
land development |
15,819,820 | 15,819,820 | 13,303,995 | 29,123,815 | ||||||||||||||||||||||||
Real estate, construction |
4,348,383 | 473,891 | 762,625 | 5,584,899 | 56,423,816 | 62,008,715 | 762,624 | |||||||||||||||||||||
Real estate, mortgage |
5,234,786 | 6,727,950 | 812,286 | 12,775,022 | 207,402,417 | 220,177,439 | 32,420 | |||||||||||||||||||||
Commercial and industrial |
1,604,289 | 24,701 | 123,856 | 1,752,846 | 22,711,014 | 24,463,860 | 123,856 | |||||||||||||||||||||
Other |
394,430 | 58,810 | 818 | 454,058 | 12,251,936 | 12,705,994 | 817 | |||||||||||||||||||||
Total |
$ | 11,581,888 | $ | 7,285,352 | $ | 17,794,570 | $ | 36,661,810 | $ | 356,727,934 | $ | 393,389,744 | $ | 1,194,882 | ||||||||||||||
December 31, 2010: |
||||||||||||||||||||||||||||
Gaming |
$ | $ | $ | 2,808,409 | $ | 2,808,409 | $ | 41,534,389 | $ | 44,342,798 | $ | |||||||||||||||||
Residential and
land development |
2,281,675 | 2,317,327 | 4,599,002 | 25,464,591 | 30,063,593 | |||||||||||||||||||||||
Real estate, construction |
8,041,900 | 4,433,125 | 4,373,103 | 16,848,128 | 44,134,861 | 60,982,989 | 1,990,772 | |||||||||||||||||||||
Real estate, mortgage |
18,479,501 | 4,639,802 | 5,139,974 | 28,259,277 | 194,318,803 | 222,578,080 | 955,715 | |||||||||||||||||||||
Commercial and industrial |
1,558,356 | 98,328 | 41,181 | 1,697,865 | 34,765,635 | 36,463,500 | 14,099 | |||||||||||||||||||||
Other |
273,940 | 33,544 | 969 | 308,453 | 15,159,344 | 15,467,797 | 969 | |||||||||||||||||||||
Total |
$ | 30,635,372 | $ | 9,204,799 | $ | 14,680,963 | $ | 54,521,134 | $ | 355,377,623 | $ | 409,898,757 | $ | 2,961,555 | ||||||||||||||
13
14
Loans With A Grade Of: | ||||||||||||||||||||
A or B | C | D | E | Total | ||||||||||||||||
June 30, 2011: |
||||||||||||||||||||
Gaming |
$ | 29,181,795 | $ | $ | $ | 15,728,126 | $ | 44,909,921 | ||||||||||||
Residential and land
development |
5,012,773 | 4,220,000 | 19,258,722 | 632,320 | 29,123,815 | |||||||||||||||
Real estate, construction |
52,101,038 | 73,594 | 9,640,556 | 193,527 | 62,008,715 | |||||||||||||||
Real estate, mortgage |
181,993,752 | 5,792,770 | 29,939,922 | 2,450,995 | 220,177,439 | |||||||||||||||
Commercial and industrial |
15,697,642 | 299,048 | 8,262,406 | 204,764 | 24,463,860 | |||||||||||||||
Other |
12,372,826 | 38,145 | 289,718 | 5,305 | 12,705,994 | |||||||||||||||
Total |
$ | 296,359,826 | $ | 10,423,557 | $ | 67,391,324 | $ | 19,215,037 | $ | 393,389,744 | ||||||||||
December 31, 2010: |
||||||||||||||||||||
Gaming |
$ | 27,397,218 | $ | $ | 6,413,068 | $ | 10,532,512 | $ | 44,342,798 | |||||||||||
Residential and land
development |
25,664,590 | 864,342 | 3,102,340 | 432,321 | 30,063,593 | |||||||||||||||
Real estate, construction |
52,417,942 | 314,806 | 7,715,653 | 534,588 | 60,982,989 | |||||||||||||||
Real estate, mortgage |
184,963,841 | 8,247,627 | 25,669,185 | 3,697,427 | 222,578,080 | |||||||||||||||
Commercial and industrial |
33,702,021 | 289,222 | 2,323,291 | 148,966 | 36,463,500 | |||||||||||||||
Other |
15,232,311 | 39,865 | 195,621 | 15,467,797 | ||||||||||||||||
Total |
$ | 339,377,923 | $ | 9,755,862 | $ | 45,419,158 | $ | 15,345,814 | $ | 409,898,757 | ||||||||||
15
June 30, 2011 | December 31, 2010 | |||||||
Gaming |
$ | 15,728,126 | $ | 10,221,662 | ||||
Residential and land development |
15,819,821 | 632,321 | ||||||
Real estate, construction |
386,557 | |||||||
Real estate, mortgage |
1,014,036 | 3,268,778 | ||||||
Commercial and industrial |
27,081 | |||||||
Other |
698 | |||||||
Total |
$ | 32,561,983 | $ | 14,537,097 | ||||
Pre-Modification | Post-Modification | |||||||||||||||
Number | Outstanding | Outstanding | ||||||||||||||
of | Recorded | Recorded | Related | |||||||||||||
Contracts | Investment | Investment | Allowance | |||||||||||||
June 30, 2011: |
||||||||||||||||
Real estate, construction |
1 | $ | 183,607 | $ | 183,607 | $ | 112,000 | |||||||||
Real estate, mortgage |
2 | 8,874,063 | 8,874,063 | 498,000 | ||||||||||||
Commercial and industrial |
1 | 708,352 | 708,352 | |||||||||||||
4 | $ | 9,766,022 | $ | 9,766,022 | $ | 610,000 | ||||||||||
December 31, 2010: |
||||||||||||||||
Real estate, construction |
1 | $ | 186,831 | $ | 186,831 | $ | 116,000 | |||||||||
Real estate, mortgage |
1 | 515,663 | 515,663 | 110,000 | ||||||||||||
2 | $ | 702,494 | $ | 702,494 | $ | 226,000 | ||||||||||
16
Unpaid | Average | |||||||||||||||
Principal | Recorded | Related | Recorded | |||||||||||||
Balance | Investment | Allowance | Investment | |||||||||||||
June 30, 2011: |
||||||||||||||||
Gaming |
$ | 15,728,125 | $ | 15,728,126 | $ | $ | 10,116,646 | |||||||||
Residential and land development |
19,500,599 | 15,819,821 | 632,321 | |||||||||||||
Real estate, construction |
183,607 | 183,607 | 112,000 | 185,120 | ||||||||||||
Real estate, mortgage |
10,818,096 | 9,888,099 | 935,201 | 1,207,129 | ||||||||||||
Commercial and industrial |
708,352 | 708,352 | 3,935 | |||||||||||||
Total |
$ | 46,938,779 | $ | 42,328,005 | $ | 1,047,201 | $ | 12,145,151 | ||||||||
December 31, 2010: |
||||||||||||||||
Gaming |
$ | 10,532,512 | $ | 10,221,662 | $ | 107,328 | $ | 9,363,015 | ||||||||
Residential and land development |
4,313,098 | 632,321 | 8,220 | 2,692,751 | ||||||||||||
Real estate, construction |
573,388 | 573,388 | 179,000 | 199,531 | ||||||||||||
Real estate, mortgage |
4,762,356 | 3,784,441 | 649,392 | 2,366,888 | ||||||||||||
Commercial and industrial |
27,081 | 27,081 | 195 | 8,065 | ||||||||||||
Other |
698 | 698 | 698 | 590 | ||||||||||||
Total |
$ | 20,209,133 | $ | 15,239,591 | $ | 944,833 | $ | 14,630,840 | ||||||||
17
Residential | ||||||||||||||||||||||||||||
and Land | Real Estate, | Real Estate, | Commercial | |||||||||||||||||||||||||
Gaming | Development | Construction | Mortgage | and Industrial | Other | Total | ||||||||||||||||||||||
For the six months ended
June 30, 2011: |
||||||||||||||||||||||||||||
Allowance for Loan Losses: |
||||||||||||||||||||||||||||
Beginning Balance |
$ | 466 | $ | 1,069 | $ | 1,020 | $ | 3,413 | $ | 480 | $ | 202 | $ | 6,650 | ||||||||||||||
Charge-offs |
(212 | ) | (956 | ) | (46 | ) | (102 | ) | (1,316 | ) | ||||||||||||||||||
Recoveries |
35 | 32 | 46 | 16 | 63 | 192 | ||||||||||||||||||||||
Provision |
(249 | ) | (572 | ) | 226 | 1,638 | 40 | 104 | 1,187 | |||||||||||||||||||
Ending
Balance |
$ | 252 | $ | 529 | $ | 1,034 | $ | 4,141 | $ | 490 | $ | 267 | $ | 6,713 | ||||||||||||||
For the
quarter ended
June 30, 2011: |
||||||||||||||||||||||||||||
Allowance for Loan Losses: |
||||||||||||||||||||||||||||
Beginning Balance |
$ | 233 | $ | 613 | $ | 1,260 | $ | 4,217 | $ | 692 | $ | 90 | $ | 7,105 | ||||||||||||||
Charge-offs |
(212 | ) | (708 | ) | (25 | ) | (72 | ) | (1,017 | ) | ||||||||||||||||||
Recoveries |
35 | 3 | 41 | 79 | ||||||||||||||||||||||||
Provision |
(16 | ) | (84 | ) | (14 | ) | 632 | (180 | ) | 208 | 546 | |||||||||||||||||
Ending Balance |
$ | 252 | $ | 529 | $ | 1,034 | $ | 4,141 | $ | 490 | $ | 267 | $ | 6,713 | ||||||||||||||
Allowance
For Loan Losses, June 30, 2011:
|
||||||||||||||||||||||||||||
Ending balance: individually
evaluated for
impairment |
$ | $ | $ | 250 | $ | 1,754 | $ | 302 | $ | 53 | $ | 2,359 | ||||||||||||||||
Ending
Balance: collectively evaluated for impairment |
$ | 252 | $ | 529 | $ | 784 | $ | 2,387 | $ | 188 | $ | 214 | $ | 4,354 | ||||||||||||||
Total Loans, June 30, 2011: |
||||||||||||||||||||||||||||
Ending balance: individually
evaluated for
impairment |
$ | 22,303 | $ | 19,891 | $ | 9,834 | $ | 32,391 | $ | 1,892 | $ | 295 | $ | 86,606 | ||||||||||||||
Ending balance: collectively
evaluated for
impairment |
$ | 22,607 | $ | 9,233 | $ | 52,175 | $ | 187,786 | $ | 22,571 | $ | 12,411 | $ | 306,783 | ||||||||||||||
18
Residential | ||||||||||||||||||||||||||||
and Land | Real Estate, | Real Estate, | Commercial | |||||||||||||||||||||||||
Gaming | Development | Construction | Mortgage | and Industrial | Other | Total | ||||||||||||||||||||||
For the six months ended
June 30, 2010: |
||||||||||||||||||||||||||||
Allowance for Loan Losses: |
||||||||||||||||||||||||||||
Beginning Balance |
$ | 699 | $ | 1,198 | $ | 1,019 | $ | 3,549 | $ | 1,293 | $ | 70 | $ | 7,828 | ||||||||||||||
Charge-offs |
(562 | ) | (785 | ) | (122 | ) | (1,469 | ) | ||||||||||||||||||||
Recoveries |
11 | 63 | 74 | |||||||||||||||||||||||||
Provision |
297 | 1,442 | 75 | 1,439 | (606 | ) | 88 | 2,735 | ||||||||||||||||||||
Ending Balance |
$ | 996 | $ | 2,640 | $ | 532 | $ | 4,203 | $ | 698 | $ | 99 | $ | 9,168 | ||||||||||||||
For the
quarter ended
June 30, 2010: |
||||||||||||||||||||||||||||
Allowance for Loan Losses: |
||||||||||||||||||||||||||||
Beginning Balance |
$ | 901 | $ | 1,844 | $ | 525 | $ | 4,208 | $ | 585 | $ | 216 | $ | 8,279 | ||||||||||||||
Charge-offs |
(11 | ) | (663 | ) | (40 | ) | (714 | ) | ||||||||||||||||||||
Recoveries |
1 | 17 | 18 | |||||||||||||||||||||||||
Provision |
95 | 796 | 18 | 658 | 112 | (94 | ) | 1,585 | ||||||||||||||||||||
Ending Balance |
$ | 996 | $ | 2,640 | $ | 532 | $ | 4,203 | $ | 698 | $ | 99 | $ | 9,168 | ||||||||||||||
Allowance for Loan
Losses, June 30, 2010: |
||||||||||||||||||||||||||||
Ending balance:
individually
evaluated for
impairment |
$ | 337 | $ | 1,309 | $ | 467 | $ | 1,625 | $ | 399 | $ | 5 | $ | 4,142 | ||||||||||||||
Ending balance: |
||||||||||||||||||||||||||||
collectively
evaluated for
impairment |
$ | 659 | $ | 1,331 | $ | 65 | $ | 2,578 | $ | 299 | $ | 94 | $ | 5,026 | ||||||||||||||
Total Loans, June 30, 2010: |
||||||||||||||||||||||||||||
Ending balance:
individually
evaluated for
impairment |
$ | 2,808 | $ | 5,664 | $ | 2,308 | $ | 8,263 | $ | 1,240 | $ | 13 | $ | 20,296 | ||||||||||||||
Ending balance:
collectively
evaluated for
impairment |
$ | 62,828 | $ | 35,195 | $ | 48,016 | $ | 220,999 | $ | 44,450 | $ | 13,952 | $ | 425,440 | ||||||||||||||
19
20
21
Fair Value Measurement Using | ||||||||||||||||
June 30, 2011: | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
U.S. Treasuries |
$ | 17,087,189 | $ | $ | 17,087,189 | $ | ||||||||||
U.S. Government agencies |
258,590,550 | 258,590,550 | ||||||||||||||
Mortgage-backed securities |
4,971,912 | 4,971,912 | ||||||||||||||
States and political subdivisions |
38,229,902 | 38,229,902 | ||||||||||||||
Equity securities |
649,983 | 649,983 | ||||||||||||||
Total |
$ | 319,529,536 | $ | $ | 319,529,536 | $ | ||||||||||
22
Fair Value Measurement Using | ||||||||||||||||
December 31, 2010: | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
U.S. Treasuries |
$ | 26,508,971 | $ | $ | 26,508,971 | $ | ||||||||||
U.S. Government agencies |
218,595,943 | 218,595,943 | ||||||||||||||
States and political subdivisions |
41,323,566 | 41,323,566 | ||||||||||||||
Equity securities |
649,983 | 649,983 | ||||||||||||||
Total |
$ | 287,078,463 | $ | $ | 287,078,463 | $ | ||||||||||
Fair Value Measurement Using | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
June 30, 2011 |
$ | 41,280,804 | $ | $ | $ | 41,280,804 | ||||||||||
December 31, 2010 |
14,294,758 | 14,294,758 |
For the Six Months | For the Year | |||||||
Ended | Ended | |||||||
June 30, 2011 | December 31, 2010 | |||||||
Balance, beginning of period |
$ | 14,294,758 | $ | 20,110,330 | ||||
Additions to impaired loans and troubled
debt restructurings |
33,612,742 | 5,519,905 | ||||||
Principal payments, charge-offs and transfers
to other real estate |
(6,524,327 | ) | (12,286,059 | ) | ||||
Change in allowance for loan losses on
impaired loans |
(102,369 | ) | 950,583 | |||||
Balance, end of period |
$ | 41,280,804 | $ | 14,294,758 | ||||
Fair Value Measurement Using | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
June 30, 2011 |
$ | 8,163,237 | $ | $ | 1,205,000 | $ | 6,958,237 | |||||||||
December 31, 2010 |
5,744,150 | 1,248,816 | 4,495,334 |
23
For the Six | For the Year | |||||||
Months Ended | Ended | |||||||
June 30, 2011 | December 31, 2010 | |||||||
Balance, beginning of period |
$ | 4,495,334 | $ | 1,521,313 | ||||
Loans transferred to ORE |
2,899,509 | 4,466,221 | ||||||
Sales |
(312,000 | ) | (1,414,850 | ) | ||||
Writedowns |
(124,606 | ) | (77,350 | ) | ||||
Balance, end of period |
$ | 6,958,237 | $ | 4,495,334 | ||||
June 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Financial Assets: |
||||||||||||||||
Cash and due from banks |
$ | 45,605,429 | $ | 45,605,429 | $ | 24,146,939 | $ | 24,146,939 | ||||||||
Available for sale securities |
319,529,536 | 319,529,536 | 287,078,463 | 287,078,463 | ||||||||||||
Held to maturity securities |
1,916,323 | 2,006,142 | 1,914,879 | 2,010,430 | ||||||||||||
Other investments |
3,843,455 | 3,843,455 | 3,926,371 | 3,926,371 | ||||||||||||
Federal Home Loan Bank stock |
2,153,000 | 2,153,000 | 2,281,200 | 2,281,200 | ||||||||||||
Loans, net |
386,676,260 | 391,565,813 | 403,248,499 | 407,363,159 | ||||||||||||
Cash surrender value of life
insurance |
16,076,138 | 16,076,138 | 15,951,117 | 15,951,117 | ||||||||||||
Financial Liabilities: |
||||||||||||||||
Deposits: |
||||||||||||||||
Non-interest bearing |
109,784,048 | 109,784,048 | 108,277,985 | 108,277,985 | ||||||||||||
Interest bearing |
388,635,388 | 389,714,767 | 375,861,530 | 376,715,446 | ||||||||||||
Total deposits |
498,419,436 | 499,498,815 | 484,139,515 | 484,993,431 | ||||||||||||
Federal funds purchased and
securities sold under agreements
to repurchase |
169,044,469 | 169,044,469 | 140,102,019 | 140,102,019 | ||||||||||||
Borrowings from Federal Home Loan Bank |
28,955,873 | 30,375,454 | 42,957,016 | 43,990,270 |
24
25
26
27
28
29
30
Quarter Ended June 30, 2011 | Quarter Ended June 30, 2010 | |||||||||||||||||||||||
Average Balance | Interest Earned/Paid | Rate | Average Balance | Interest Earned/Paid | Rate | |||||||||||||||||||
Loans (2)(3) |
$ | 391,346 | $ | 4,381 | 4.48 | % | $ | 445,601 | $ | 4,893 | 4.39 | % | ||||||||||||
Federal Funds Sold |
2,318 | 4 | 0.69 | % | 2,670 | 2 | 0.30 | % | ||||||||||||||||
HTM: |
||||||||||||||||||||||||
Non taxable (1) |
1,916 | 27 | 5.64 | % | 3,025 | 36 | 4.76 | % | ||||||||||||||||
AFS: |
||||||||||||||||||||||||
Taxable |
295,317 | 1,806 | 2.45 | % | 267,579 | 2,576 | 3.85 | % | ||||||||||||||||
Non taxable (1) |
40,913 | 519 | 5.07 | % | 40,340 | 444 | 4.40 | % | ||||||||||||||||
Other |
2,951 | 3 | 0.41 | % | 4,601 | 3 | 0.26 | % | ||||||||||||||||
Total |
$ | 734,761 | $ | 6,740 | 3.67 | % | $ | 763,816 | $ | 7,954 | 4.17 | % | ||||||||||||
Savings & interest-bearing DDA |
$ | 249,035 | $ | 265 | 0.43 | % | $ | 223,111 | $ | 289 | 0.52 | % | ||||||||||||
CDs |
169,899 | 386 | 0.91 | % | 197,044 | 560 | 1.14 | % | ||||||||||||||||
Federal funds
purchased |
147,997 | 170 | 0.46 | % | 155,629 | 276 | 0.71 | % | ||||||||||||||||
FHLB advances |
35,826 | 45 | 0.50 | % | 51,330 | 110 | 0.86 | % | ||||||||||||||||
Total |
$ | 602,757 | $ | 866 | 0.57 | % | $ | 627,114 | $ | 1,235 | 0.79 | % | ||||||||||||
Net tax-equivalent
margin on earning assets |
3.20 | % | 3.52 | % | ||||||||||||||||||||
(1) | All interest earned is reported on a taxable equivalent basis using a tax rate of 34% in 2011 and 2010. |
|
(2) | Loan fees of $197 and $115 for 2011 and 2010, respectively, are included in these figures. |
|
(3) | Includes nonaccrual loans. |
31
Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | |||||||||||||||||||||||
Average Balance | Interest Earned/Paid | Rate | Average Balance | Interest Earned/Paid | Rate | |||||||||||||||||||
Loans (2)(3) |
$ | 399,497 | $ | 9,288 | 4.65 | % | $ | 450,712 | $ | 9,880 | 4.38 | % | ||||||||||||
Federal Funds Sold |
3,730 | 5 | 0.27 | % | 4,222 | 5 | 0.24 | % | ||||||||||||||||
HTM: |
||||||||||||||||||||||||
Non taxable (1) |
1,916 | 52 | 5.43 | % | 3,113 | 80 | 5.14 | % | ||||||||||||||||
AFS: |
||||||||||||||||||||||||
Taxable |
271,379 | 3,309 | 2.44 | % | 267,586 | 5,457 | 4.08 | % | ||||||||||||||||
Non taxable (1) |
41,266 | 1,053 | 5.10 | % | 40,353 | 941 | 4.66 | % | ||||||||||||||||
Other |
3,007 | 9 | 0.60 | % | 5,131 | 8 | 0.31 | % | ||||||||||||||||
Total |
$ | 720,795 | $ | 13,716 | 3.81 | % | $ | 771,117 | $ | 16,371 | 4.25 | % | ||||||||||||
Savings & interest-
bearing DDA |
$ | 233,294 | $ | 525 | 0.45 | % | $ | 223,047 | $ | 578 | 0.52 | % | ||||||||||||
CDs |
175,304 | 829 | 0.95 | % | 187,331 | 1,089 | 1.16 | % | ||||||||||||||||
Federal funds
purchased |
141,819 | 342 | 0.48 | % | 163,178 | 563 | 0.69 | % | ||||||||||||||||
FHLB advances |
38,488 | 95 | 0.49 | % | 63,552 | 246 | 0.77 | % | ||||||||||||||||
Total |
$ | 588,905 | $ | 1,791 | 0.61 | % | $ | 637,108 | $ | 2,476 | 0.78 | % | ||||||||||||
Net tax-equivalent
margin on earning assets |
3.31 | % | 3.60 | % | ||||||||||||||||||||
(1) | All interest earned is reported on a taxable equivalent basis using a tax rate of 34% in
2011 and 2010. |
|
(2) | Loan fees of $363 and $316 for 2011 and 2010, respectively, are included in these figures. |
|
(3) | Includes nonaccrual loans. |
32
33
34
Quarters Ended June 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Tax | Rate | Tax | Rate | |||||||||||||
Taxes at statutory rate |
$ | 210,077 | 34 | $ | 669,148 | 34 | ||||||||||
Increase (decrease) resulting from: |
||||||||||||||||
Tax-exempt interest income |
(137,935 | ) | (23 | ) | (107,668 | ) | (6 | ) | ||||||||
Income from BOLI |
(174,930 | ) | (28 | ) | (42,956 | ) | (2 | ) | ||||||||
Federal tax credits |
(91,410 | ) | (15 | ) | ||||||||||||
Other |
2,198 | 1 | 3,476 | 1 | ||||||||||||
Total income taxes (benefit) |
$ | (192,000 | ) | (31 | ) | $ | 522,000 | 27 | ||||||||
Six Months Ended June 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Tax | Rate | Tax | Rate | |||||||||||||
Taxes at statutory rate |
$ | 307,842 | 34 | $ | 1,024,943 | 34 | ||||||||||
Increase (decrease) resulting from: |
||||||||||||||||
Tax-exempt interest income |
(263,429 | ) | (29 | ) | (229,024 | ) | (8 | ) | ||||||||
Income from BOLI |
(219,912 | ) | (24 | ) | (87,020 | ) | (3 | ) | ||||||||
Federal tax credits |
(182,820 | ) | (20 | ) | (32,160 | ) | (1 | ) | ||||||||
Other |
16,319 | 1 | 20,261 | 1 | ||||||||||||
Total income taxes (benefit) |
$ | (342,000 | ) | (38 | ) | $ | 697,000 | 23 | ||||||||
35
36
Actual | For Capital Adequacy Purposes | |||||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||||
June 30, 2011: |
||||||||||||||||
Total Capital (to Risk Weighted Assets) |
$ | 110,069 | 21.25 | % | $ | 41,438 | 8.00 | % | ||||||||
Tier 1 Capital (to Risk Weighted Assets) |
103,602 | 20.00 | % | 20,719 | 4.00 | % | ||||||||||
Tier 1 Capital (to Average Assets) |
103,602 | 12.53 | % | 33,069 | 4.00 | % | ||||||||||
December 31, 2010: |
||||||||||||||||
Total Capital (to Risk Weighted Assets) |
$ | 110,435 | 22.26 | % | $ | 39,691 | 8.00 | % | ||||||||
Tier 1 Capital (to Risk Weighted Assets) |
104,233 | 21.01 | % | 19,846 | 4.00 | % | ||||||||||
Tier 1 Capital (to Average Assets) |
104,233 | 12.40 | % | 33,616 | 4.00 | % |
Actual | For Capital Adequacy Purposes | |||||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||||
June 30, 2011: |
||||||||||||||||
Total Capital (to Risk Weighted Assets) |
$ | 105,191 | 20.34 | % | $ | 41,372 | 8.00 | % | ||||||||
Tier 1 Capital (to Risk Weighted Assets) |
98,723 | 19.09 | % | 20,686 | 4.00 | % | ||||||||||
Tier 1 Capital (to Average Assets) |
98,723 | 11.95 | % | 33,047 | 4.00 | % | ||||||||||
December 31, 2010: |
||||||||||||||||
Total Capital (to Risk Weighted Assets) |
$ | 105,255 | 21.41 | % | $ | 39,320 | 8.00 | % | ||||||||
Tier 1 Capital (to Risk Weighted Assets) |
99,111 | 20.16 | % | 19,660 | 4.00 | % | ||||||||||
Tier 1 Capital (to Average Assets) |
99,111 | 11.86 | % | 33,431 | 4.00 | % |
37
38
Exhibit 31.1: | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 |
|||
Exhibit 31.2: | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 |
|||
Exhibit 32.1: | Certification of Chief Executive Officer Pursuant to 18 U.S.C. ss. 1350 |
|||
Exhibit 32.2: | Certification of Chief Financial Officer Pursuant to 18 U.S.C. ss. 1350 |
|||
Exhibit 101 | The following materials from the Companys quarterly report on Form 10-Q for
the quarter ended June 30, 2011, formatted in XBRL (Extensible Business Reporting
Language): (i) Consolidated Statements of Condition at June 30, 2011 and December 31,
2010, (ii)Consolidated Statements of Income for the quarters ended June 30, 2011 and
2010 and for the six months ended June 30, 2011 and 2010, (iii) Consolidated Statement
of Changes in Shareholders Equity and Comprehensive Income for the six months ended
June 30, 2011, (iv) Consolidated Statements of Cash Flows for the six months ended
June 30, 2011 and 2010 and (v) Notes to the Unaudited Consolidated Financial
Statements for the six months ended June 30, 2011 and 2010 tagged as blocks of text. |
|||
In accordance with Rule 406T of Regulation S-T, the XBRL related
information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not
be deemed to be filed for purposes of Section 18 of the Securities
Exchange Act of 1934 (the Exchange Act), or otherwise subject to the
liability of that section, and shall not be part of any registration
statement or other document filed under the Securities Act of 1933 or the
Exchange Act, except as shall be expressly set forth by specific reference
in such filing. |
39
PEOPLES FINANCIAL CORPORATION (Registrant) |
||||||
Date:
|
August 12, 2011
|
|||||
By:
|
/s/ Chevis C. Swetman
|
|||||
Chairman, President and Chief Executive Officer |
||||||
(principal executive officer) |
||||||
Date:
|
August 12, 2011
|
|||||
By:
|
/s/ Lauri A. Wood | |||||
Lauri A. Wood | ||||||
Chief Financial Officer and Controller |
||||||
(principal financial and accounting officer) |
40
/s/ Chevis C. Swetman
|
||||
President and Chief Executive Officer | ||||
(principal executive officer) |
/s/ Lauri A. Wood
|
||||
Chief Financial Officer |
||||
(principal financial and accounting officer) |
By:
|
/s/ Chevis C. Swetman
|
|||||
Chevis C. Swetman, |
||||||
Chairman, President and Chief Executive Officer |
||||||
(principal executive officer) |
||||||
Date:
|
August 12, 2011 |
By:
|
/s/ Lauri A. Wood
|
|||||
Lauri A. Wood |
||||||
Chief Financial Officer and Controller |
||||||
(principal financial and accounting officer) |
||||||
Date:
|
August 12, 2011
|
Consolidated Statements of Condition (Parenthetical) (USD $)
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Assets | Â | Â |
Held to maturity securities, fair value | $ 2,006,142 | $ 2,010,430 |
Shareholders' Equity: | Â | Â |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 5,136,918 | 5,151,139 |
Common stock, shares outstanding | 5,136,918 | 5,151,139 |
Consolidated Statements of Income (Unaudited) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Interest income: | Â | Â | Â | Â |
Interest and fees on loans | $ 4,381,186 | $ 4,893,342 | $ 9,287,948 | $ 9,880,468 |
Interest and dividends on securities: | Â | Â | Â | Â |
U.S. Treasuries | 63,266 | 131,216 | 127,129 | 325,478 |
U.S. Government agencies | 1,711,696 | 2,312,723 | 3,151,058 | 4,612,426 |
Mortgage-backed securities | 30,957 | 132,048 | 30,957 | 518,924 |
States and political subdivisions | 360,357 | 316,668 | 729,458 | 673,597 |
Other investments | 2,421 | 3,203 | 8,639 | 7,654 |
Interest on federal funds sold | 3,386 | 1,557 | 4,738 | 5,336 |
Total interest income | 6,553,269 | 7,790,757 | 13,339,927 | 16,023,883 |
Interest expense: | Â | Â | Â | Â |
Deposits | 651,406 | 849,297 | 1,354,117 | 1,666,786 |
Long-term borrowings | 45,402 | 109,559 | 95,467 | 246,204 |
Federal funds purchased and securities sold under agreements to repurchase | 169,545 | 276,351 | 341,568 | 562,741 |
Total interest expense | 866,353 | 1,235,207 | 1,791,152 | 2,475,731 |
Net interest income | 5,686,916 | 6,555,550 | 11,548,775 | 13,548,152 |
Provision for allowance for losses on loans | 546,000 | 1,585,000 | 1,187,000 | 2,735,000 |
Net interest income after provision for allowance for losses on loans | 5,140,916 | 4,970,550 | 10,361,775 | 10,813,152 |
Non-interest income: | Â | Â | Â | Â |
Trust department income and fees | 323,468 | 282,941 | 669,923 | 590,237 |
Service charges on deposit accounts | 1,455,146 | 1,579,485 | 2,874,174 | 3,151,988 |
Gain on sales or calls of securities | 7,174 | 1,563,441 | 7,174 | 1,567,486 |
Increase in cash surrender value | 125,380 | 126,344 | 257,680 | 255,944 |
Gain from redemption of life insurance | 389,119 | Â | 389,119 | Â |
Other income | 151,035 | 132,316 | 276,162 | 252,005 |
Total non-interest income | 2,451,322 | 3,684,527 | 4,474,232 | 5,817,660 |
Non-interest expense: | Â | Â | Â | Â |
Salaries and employee benefits | 3,395,090 | 3,398,188 | 6,771,387 | 6,810,463 |
Net occupancy | 655,236 | 544,121 | 1,269,170 | 1,068,898 |
Equipment rentals, depreciation and maintenance | 951,812 | 951,312 | 1,822,212 | 1,886,765 |
FDIC assessments | 437,086 | 390,517 | 842,912 | 740,904 |
Other expense | 1,535,141 | 1,402,857 | 3,224,909 | 3,109,245 |
Total non-interest expense | 6,974,365 | 6,686,995 | 13,930,590 | 13,616,275 |
Income before income taxes | 617,873 | 1,968,082 | 905,417 | 3,014,537 |
Income tax expense (benefit) | (192,000) | 522,000 | (342,000) | 697,000 |
Net income | $ 809,873 | $ 1,446,082 | $ 1,247,417 | $ 2,317,537 |
Basic and diluted earnings per share | $ 0.16 | $ 0.28 | $ 0.24 | $ 0.45 |
Document and Entity Information (USD $)
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
Jul. 29, 2011
|
Jun. 30, 2010
|
|
Document and Entity Information [Abstract] | Â | Â | Â |
Entity Registrant Name | PEOPLES FINANCIAL CORP /MS/ | Â | Â |
Entity Central Index Key | 0000770460 | Â | Â |
Document Type | 10-Q | Â | Â |
Document Period End Date | Jun. 30, 2011 | ||
Amendment Flag | false | Â | Â |
Document Fiscal Year Focus | 2011 | Â | Â |
Document Fiscal Period Focus | Q2 | Â | Â |
Current Fiscal Year End Date | --12-31 | Â | Â |
Entity Well-known Seasoned Issuer | No | Â | Â |
Entity Voluntary Filers | No | Â | Â |
Entity Current Reporting Status | Yes | Â | Â |
Entity Filer Category | Smaller Reporting Company | Â | Â |
Entity Public Float | Â | Â | $ 43,604,000 |
Entity Common Stock, Shares Outstanding | Â | 5,136,918 | Â |
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Loans
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Loans [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans |
5. Loans:
The composition of the loan portfolio at June 30, 2011 and December 31, 2010, is as follows:
The age analysis of the loan portfolio, segregated by class of loans, as of June 30, 2011 and
December 31, 2010, is as follows:
The Company monitors the credit quality of its loan portfolio through the use of a loan
grading system. A score of 1 — 5 is assigned to the loan based on factors including repayment
ability, trends in net worth and/or financial condition of the borrower and guarantors, employment
stability, management ability, loan to value fluctuations, the type and structure of the loan,
conformity of the loan to bank policy and payment performance. Based on the total score, a loan
grade of A - F is applied. A grade of A will generally be applied to loans for customers that are
well known to the Company and that have excellent sources of repayment. A grade of B will
generally be applied to loans for customers that have excellent sources of repayment which have no
identifiable risk of collection. A grade of C will generally be applied to loans for customers
that have adequate sources of repayment which have little identifiable risk of collection. Loans
with a grade of C may be placed on the watch list if weaknesses are not resolved which could result
in potential loss. A grade of D will generally be applied to loans for customers that are
inadequately protected by current sound net worth, paying capacity of the borrower, or pledged
collateral. Loans with a grade of D have unsatisfactory characteristics such as cash flow
deficiencies, bankruptcy filing by the borrower or dependence on the sale of collateral for the
primary source of repayment, causing more than acceptable levels of risk. Loans 60 to 89 days past
due receive a grade of D. A grade of E will generally be applied to loans for customers with
weaknesses inherent in the “D” classification and in which collection or liquidation in full is
questionable. All loans 90 days or more past due are rated E. A grade of F is applied to loans
which are considered uncollectible and of such little value that their continuance in an active
bank is not warranted. Loans with this grade are charged off, even though partial or full recovery
may be possible in the future. All loans 180 days or more past due are rated F and charged off
unless the Bank is in the process of collection.
An analysis of the loan portfolio by loan grade, segregated by class of loans, as of June 30, 2011
and December 31, 2010, is as follows:
Total loans on nonaccrual as of June 30, 2011 and December 31, 2010, are as follows:
The Company has modified certain loans by granting interest rate concessions to these
customers. These loans are classified as troubled debt restructurings. These loans are all in
compliance with their modified terms and are currently accruing. Troubled debt restructurings as of
June 30, 2011 and December 31, 2010 are as follows:
Impaired loans, segregated by class of loans, as of June 30, 2011 and December 31, 2010, are
as follows:
No material interest income was recognized on impaired loans for the six months ended June 30,
2011 and the year ended December 31, 2010.
|
Fair Value of Financial Instruments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Fair Value of Financial Instruments [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments |
10. Fair Value of Financial Instruments:
The Company reports certain assets and liabilities at their estimated fair value. These assets and
liabilities are classified and disclosed in one of three categories based on the inputs used to
develop the measurements. The categories, which establish a hierarchy for ranking the quality and
reliability of the information used to determine fair value, are: Level 1 — Quoted market prices
in active markets for identical assets or liabilities, Level 2 — Observable market based inputs or
unobservable inputs or unobservable inputs that are corroborated by market data, or Level 3 —
Unobservable inputs that are not corroborated by market data.
The Company is required to disclose the fair value of financial instruments, both assets and
liabilities recognized and not recognized in the statement of condition, for which it is practical
to estimate its
fair value. Certain financial instruments and all nonfinancial instruments are excluded from these
disclosure requirements. Significant assets and liabilities that are not considered financial
instruments include deferred income taxes and bank premises and equipment. Accordingly, the
aggregate fair value amounts presented do not represent the underlying value of the Company. In
preparing these disclosures, Management made highly sensitive estimates and assumptions in
developing the methodology to be utilized in the computation of fair value. These estimates and
assumptions were formulated based on judgments regarding economic conditions and risk
characteristics of the financial instruments that were present at the time the computations were
made. Events may occur that alter these conditions and may change the assumptions as well. A
change in the assumptions might affect the fair value of the financial instruments disclosed in
this footnote. These estimates do not reflect any premium or discount that could result from
offering for sale at one time the Company’s entire holdings of a particular financial instrument.
Fair value estimates are based on existing on and off-balance sheet financial instruments without
attempting to estimate the value of anticipated future business and the value of assets and
liabilities that are not considered financial instruments. In addition, the tax consequences
related to the realization of the unrealized gains and losses have not been computed or disclosed
herein. These methods and assumptions are set forth below.
Cash and Due from Banks
The carrying amount shown as cash and due from banks approximates fair value. Federal Funds Sold
The carrying amount shown as federal funds sold approximates fair value. Available for Sale Securities
The fair value of available for sale securities is based on quoted market prices. The Company’s
available for sale securities are reported at their estimated fair value, which is determined
utilizing several sources. The primary source is Interactive Data Corporation, which utilizes
pricing models that vary based on asset class and include available trade, bid and other market
information and whose methodology includes broker quotes, proprietary models and vast descriptive
databases. The other source for determining fair value is matrix pricing, which is a mathematical
technique used widely in the industry to value debt securities without relying exclusively on
quoted prices for the specific securities but rather by relying on the securities’ relationship to
other benchmark securities.
All of the Company’s available for sale securities are Level 2 assets.
Held to Maturity Securities
The fair value of held to maturity securities is based on quoted market prices. Other Investments
The carrying amount shown as other investments approximates fair value. Federal Home Loan Bank Stock
The carrying amount shown as Federal Home Loan Bank Stock approximates fair value. Loans
The fair value of fixed rate loans is estimated by discounting the future cash flows using the
current rates at which similar loans would be made to borrowers with similar credit ratings for the
remaining maturities. The cash flows considered in computing the fair value of such loans are
segmented into categories relating to the nature of the contract and collateral based on
contractual principal maturities. Appropriate adjustments are made to reflect probable credit
losses. Cash flows have not been adjusted for such factors as prepayment risk or the effect of the
maturity of balloon notes. The fair value of floating rate loans is estimated to be its carrying
value. At each reporting period, the Company determines which loans are impaired. Accordingly, the
Company’s impaired loans are reported at their estimated fair value on a non-recurring basis. An
allowance for each impaired loan, which are generally collateral-dependent, is calculated based on
the fair value of its collateral. The fair value of the collateral is based on appraisals
performed by third-party valuation specialists. Factors including the assumptions and techniques
utilized by the appraiser are considered by Management. If the recorded investment in the impaired
loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a
component of the allowance for loan losses. When the fair value of the collateral is based on an
observable market price or a current appraised value, the Company records the impaired loan as a
non-recurring Level 2 asset. When an appraised value is not available or Management determines the
fair value of the collateral is further impaired below the appraised value and there is no
observable market price, the Company records the impaired loan as a non-recurring Level 3 asset.
Other Real Estate
When Management determines that it has sustained a loss on a loan, it may be necessary to foreclose
on the related collateral. Other real estate acquired through foreclosure is carried at fair
value, less estimated costs to sell. The fair value of the collateral is based on appraisals
performed by third-party valuation specialists. Factors including the assumptions and techniques
utilized by the appraiser are considered by Management. If the current appraisal is more than one
year old and/or the loan balance is more than $200,000, a new appraisal is obtained. Otherwise,
the Bank’s in-house property evaluator and Management will determine the fair value of the
collateral, based on comparable sales, market conditions, Management’s plans for disposition and
other estimates of fair value obtained from principally independent sources, adjusted for estimated
selling costs. When the fair value of the collateral is based on an observable market price or a
current appraised value, the Company records the other real estate as a non-recurring Level 2
asset. When an appraised value is
not available or Management determines the fair value of the
collateral is further impaired below the
appraised value and there is no observable market price, the Company records the other real estate
as a non-recurring Level 3 asset.
Cash Surrender Value of Life Insurance
The carrying amount of cash surrender value of bank-owned life insurance approximates fair value. Deposits
The fair value of non-interest bearing demand and interest bearing savings and demand
deposits is the amount reported in the financial statements. The fair value of time deposits is
estimated by discounting the cash flows using current rates of time deposits with similar remaining
maturities.
The cash flows considered in computing the fair value of such deposits are based on contractual
maturities, since approximately 98% of time deposits provide for automatic renewal at current
interest rates.
Federal Funds Purchased and Securities Sold under Agreements to Repurchase
The carrying amount shown as federal funds purchased and securities sold under agreements to repurchase approximates fair value. Borrowings from Federal Home Loan Bank
The fair value of FHLB fixed rate borrowings is estimated using discounted cash flows based on current incremental borrowing rates for similar types of borrowing arrangements. The Company has no FHLB variable rate borrowings. Commitments to Extend Credit and Standby Letters of Credit
Because commitments to extend credit and standby letters of credit are generally short-term and at variable rates, the contract value and estimated value associated with these instruments are immaterial. The balances of available for sale securities, which are the only assets measured at fair value on
a recurring basis, by level within the fair value hierarchy and by investment type, as of June 30,
2011 and December 31, 2010 are as follows:
Impaired loans, which are measured at fair value on a non-recurring basis, by level within the
fair value hierarchy as of June 30, 2011 and December 31, 2010 are as follows:
The following table presents a summary of changes in the fair value of impaired loans which
are measured using level 3 inputs:
Other real estate, which is measured at fair value on a non-recurring basis, by level within
the fair value hierarchy as of June 30, 2011 and December 31, 2010 are as follows:
The following table presents a summary of changes in the fair value of other real estate which
is measured using level 3 inputs:
The carrying value and estimated fair value of financial assets and financial liabilities at
June 30, 2011 and December 31, 2010, are as follows:
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Basis of Presentation
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6 Months Ended |
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Jun. 30, 2011
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Basis of Presentation [Abstract] | Â |
Basis of Presentation |
1. Basis of Presentation:
Peoples Financial Corporation (the “Company”) is a one-bank holding company headquartered in
Biloxi, Mississippi. Its two operating subsidiaries are The Peoples Bank, Biloxi, Mississippi (the
“Bank”), and PFC Service Corp. Its principal subsidiary is The Peoples Bank, Biloxi, Mississippi,
which provides a full range of banking, financial and trust services to state, county and local
government entities and individuals and small and commercial businesses operating in Harrison,
Hancock, Stone and Jackson counties.
The accompanying unaudited consolidated financial statements and notes thereto contain all
adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in
accordance with accounting principles generally accepted in the United States of America (“GAAP”),
the financial position of the Company and its subsidiaries as of June 30, 2011 and the results of
their operations and their cash flows for the periods presented. The interim financial information
should be read in conjunction with the annual consolidated financial statements and the notes
thereto included in the Company’s 2010 Annual Report and Form 10-K.
The results of operations for the six months ended June 30, 2011, are not necessarily indicative of
the results to be expected for the full year.
Use of Estimates - The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the reported period.
Actual results could differ from those estimates.
Summary of Significant Accounting Policies - The accounting and reporting policies of the Company
conform with GAAP and general practices within the banking industry. There have been no material
changes or developments in the application of principles or in our evaluation of the accounting
estimates and the underlying assumptions or methodologies that we believe to be Critical Accounting
Policies as disclosed in our Form 10-K for the year ended December 31, 2010.
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Deposits
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6 Months Ended |
---|---|
Jun. 30, 2011
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Deposits [Abstract] | Â |
Deposits |
7. Deposits:
At June 30, 2011, time deposits of $100,000 or more include brokered deposits of $22,696,000 which
mature in 2012.
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Reclassifications
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6 Months Ended |
---|---|
Jun. 30, 2011
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|
Reclassifications [Abstract] | Â |
Reclassifications |
12. Reclassifications:
Certain reclassifications, which had no effect on prior year net income, have been made to prior
period statements to conform to current year presentation.
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Shareholders' Equity
|
6 Months Ended |
---|---|
Jun. 30, 2011
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Shareholders' Equity [Abstract] | Â |
Shareholders' Equity |
8. Shareholders’ Equity:
On June 29, 2011, the Board of Directors declared a semi-annual dividend of $.09 per share with a
record date of July 13, 2011 and a payment date of July 20, 2011.
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Allowance for Loan Losses
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Jun. 30, 2011
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Allowance for Loan Losses [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses |
6. Allowance for Loan Losses:
Transactions in the allowance for loan losses for the quarters and six months ended June 30, 2011
and 2010, and the balances of loans, individually and collectively evaluated for impairment as of
June 30, 2011 and 2010, are as follows (in thousands):
|
Consolidated Statement of Changes in Shareholders' Equity and Comprehensive Income (Parenthetical) (USD $)
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Dividend declared per share | $ 0.09 |
Undivided Profits
|
 |
Dividend declared per share | $ 0.09 |
Earnings Per Share
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Earnings Per Share [Abstract] | Â |
Earnings Per Share |
2. Earnings Per Share:
Per share data is based on the weighted average shares of common stock outstanding of 5,136,918 and
5,151,697 for the six months ended June 30, 2011 and 2010, respectively, and 5,136,918 and
5,151,697 for the quarters ended June 30, 2011 and 2010, respectively.
|
Statements of Cash Flows
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Statements of Cash Flows [Abstract] | Â |
Statements of Cash Flows |
3. Statements of Cash Flow:
The Company has defined cash and cash equivalents as cash and due from banks. The Company paid
$1,811,218 and $2,475,536 for the six months ended June 30, 2011 and 2010, respectively, for
interest on deposits and borrowings. Income tax payments of $235,000 and $625,000 were made
during the six months ended June 30, 2011 and 2010, respectively. Loans transferred to other real
estate amounted to $2,927,510 and $799,800 during the six months ended June 30, 2011 and 2010,
respectively. Dividends payable of $462,323 as of December 31, 2010 were paid during the six
months ended June 30, 2011.
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