FROM:
|
TO:
|
South Carolina
|
57-0858504
|
(State or other jurisdiction of
incorporation or organization)
|
(IRS Employer
Identification No.)
|
YES
|
X
|
NO
|
YES
|
NO
|
X
|
CLASS:
|
OUTSTANDING SHARES AT:
|
SHARES:
|
|||
Common Stock, par value $0.01 per share
|
February 13, 2012
|
2,944,001 |
PART I.
|
FINANCIAL INFORMATION (UNAUDITED)
|
PAGE NO.
|
|
Item 1.
|
Financial Statements (Unaudited):
|
||
Consolidated Balance Sheets at December 31, 2011 and March 31, 2011
|
1
|
||
Consolidated Statements of Income for the Three and Nine Months Ended December
31, 2011 and 2010
|
2
|
||
Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive
Income for the Nine Months Ended December 31, 2011 and 2010
|
4
|
||
Consolidated Statements of Cash Flows for the Nine Months Ended December 31,
2011 and 2010
|
5
|
||
Notes to Consolidated Financial Statements
|
7
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
28
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
42
|
|
Item 4.
|
Controls and Procedures
|
42
|
|
PART II.
|
OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
43
|
|
Item 1A.
|
Risk Factors
|
43
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
43
|
|
Item 3.
|
Defaults Upon Senior Securities
|
43
|
|
Item 4.
|
(Removed and Reserved)
|
43
|
|
Item 5.
|
Other Information
|
43
|
|
Item 6.
|
Exhibits
|
43
|
|
Signatures
|
45
|
||
December 31, 2011
|
March 31, 2011
|
|||||||
Assets:
|
(Unaudited)
|
(Audited)
|
||||||
Cash And Cash Equivalents
|
$ | 7,797,544 | $ | 7,835,638 | ||||
Certificates Of Deposits With Other Banks
|
1,726,765 | 100,432 | ||||||
Investment And Mortgage-Backed Securities:
|
||||||||
Available For Sale:(Amortized cost of $329,516,794 at December 31, 2011 and
$333,387,779 at March 31, 2011)
|
339,861,638 | 339,252,790 | ||||||
Held To Maturity:(Fair value of $60,360,139 at December 31, 2011 and $34,122,925 at
March 31, 2011)
|
58,532,168 | 33,165,125 | ||||||
Total Investment And Mortgage-Backed Securities
|
398,393,806 | 372,417,915 | ||||||
Loans Receivable, Net:
|
||||||||
Held For Sale
|
5,631,091 | 5,166,234 | ||||||
Held For Investment:(Net of allowance of $14,261,374 at December 31, 2011 and
$12,501,800 at March 31, 2011)
|
440,168,199 | 479,304,382 | ||||||
Total Loans Receivable, Net
|
445,799,290 | 484,470,616 | ||||||
Accrued Interest Receivable:
|
||||||||
Loans
|
1,843,331 | 1,742,281 | ||||||
Mortgage-Backed Securities
|
965,567 | 944,667 | ||||||
Investments
|
1,039,626 | 889,297 | ||||||
Premises And Equipment, Net
|
19,094,363 | 19,800,616 | ||||||
Federal Home Loan Bank (“FHLB”) Stock, At Cost
|
8,471,100 | 11,267,485 | ||||||
Bank Owned Life Insurance
|
10,731,305 | 10,416,305 | ||||||
Repossessed Assets Acquired In Settlement Of Loans
|
13,660,376 | 14,433,853 | ||||||
Intangible Assets, Net
|
111,978 | 159,500 | ||||||
Goodwill
|
1,199,754 | 1,199,754 | ||||||
Prepaid Federal Deposit Insurance Corporation (“FDIC”) Premium
|
2,328,076 | 2,815,328 | ||||||
Other Assets
|
3,424,273 | 5,050,362 | ||||||
Total Assets
|
$ | 916,587,154 | $ | 933,544,049 | ||||
Liabilities And Shareholders’ Equity
|
||||||||
Liabilities:
|
||||||||
Deposit Accounts
|
$ | 689,730,988 | $ | 690,357,114 | ||||
Advances From FHLB
|
120,573,967 | 138,136,338 | ||||||
Other Borrowed Money
|
9,794,732 | 11,195,474 | ||||||
Advance Payments By Borrowers For Taxes And Insurance
|
215,010 | 381,488 | ||||||
Mandatorily Redeemable Financial Instrument
|
- | 1,467,312 | ||||||
Junior Subordinated Debentures
|
5,155,000 | 5,155,000 | ||||||
Senior Convertible Debentures
|
6,084,000 | 6,084,000 | ||||||
Other Liabilities
|
4,471,576 | 4,755,118 | ||||||
Total Liabilities
|
836,025,273 | 857,531,844 | ||||||
Shareholders' Equity:
|
||||||||
Serial Preferred Stock, $.01 Par Value; Authorized Shares – 200,000; Issued And Outstanding
Series B Shares, 22,000 At December 31, 2011 And March 31, 2011
|
22,000,000 | 22,000,000 | ||||||
Common Stock, $.01 Par Value; Authorized Shares – 5,000,000; Issued And Outstanding
Shares -3,144,934 And 2,944,001, Respectively, At December 31, 2011 And At March 31,
2011
|
31,449 | 30,884 | ||||||
Warrant Issued In Conjunction With Serial Preferred Stock
|
400,000 | 400,000 | ||||||
Additional Paid-In Capital
|
11,593,122 | 10,176,375 | ||||||
Treasury Stock (At Cost, 200,933 Shares, At December 31, 2011 And March 31,2011)
|
(4,330,712 | ) | (4,330,712 | ) | ||||
Accumulated Other Comprehensive Income
|
6,416,277 | 3,637,675 | ||||||
Retained Earnings, Substantially Restricted
|
44,451,745 | 44,097,983 | ||||||
Total Shareholders' Equity
|
80,561,881 | 76,012,205 | ||||||
Total Liabilities And Shareholders' Equity
|
$ | 916,587,154 | $ | 933,544,049 |
Three Months Ended
December 31,
|
||||||||
2011
|
2010
|
|||||||
Interest Income:
|
||||||||
Loans
|
$ | 6,912,656 | $ | 8,011,236 | ||||
Mortgage-Backed Securities
|
1,822,526 | 1,966,515 | ||||||
Investment Securities
|
730,875 | 579,571 | ||||||
Other
|
747 | 1,956 | ||||||
Total Interest Income
|
9,466,804 | 10,559,278 | ||||||
Interest Expense:
|
||||||||
NOW And Money Market Accounts
|
435,400 | 459,440 | ||||||
Statement Savings Accounts
|
10,233 | 13,134 | ||||||
Certificate Accounts
|
1,176,590 | 1,846,667 | ||||||
Advances And Other Borrowed Money
|
1,208,230 | 1,382,049 | ||||||
Convertible Senior Debentures
|
121,680 | 121,680 | ||||||
Junior Subordinated Debentures
|
21,808 | 58,451 | ||||||
Total Interest Expense
|
2,973,941 | 3,881,421 | ||||||
Net Interest Income
|
6,492,863 | 6,677,857 | ||||||
Provision For Loan Losses
|
2,100,000 | 1,900,000 | ||||||
Net Interest Income After Provision For Loan Losses
|
4,392,863 | 4,777,857 | ||||||
Non-Interest Income:
|
||||||||
Gain On Sale Of Investments
|
1,209,041 | 492,975 | ||||||
Gain On Sale Of Loans
|
162,126 | 334,713 | ||||||
Service Fees On Deposit Accounts
|
304,458 | 289,810 | ||||||
Income From Cash Value Of Life Insurance
|
105,000 | 105,000 | ||||||
Commissions From Insurance Agency
|
96,539 | 92,619 | ||||||
Trust Income
|
120,000 | 109,500 | ||||||
Mandatorily Redeemable Financial Instrument Valuation
|
- | 90,000 | ||||||
Check Card Fee Income
|
196,401 | 176,144 | ||||||
Other
|
369,892 | 89,200 | ||||||
Total Non-Interest Income
|
2,563,457 | 1,779,961 | ||||||
General And Administrative Expenses:
|
||||||||
Salaries And Employee Benefits
|
2,671,521 | 3,016,325 | ||||||
Occupancy
|
484,056 | 439,374 | ||||||
Advertising
|
108,479 | 97,491 | ||||||
Depreciation And Maintenance Of Equipment
|
436,727 | 453,291 | ||||||
FDIC Insurance Premiums
|
130,998 | 366,000 | ||||||
Amortization of Intangibles
|
12,501 | 22,500 | ||||||
Net Cost Of Operation Of Other Real Estate Owned
|
525,728 | 419,516 | ||||||
Other
|
864,976 | 1,059,504 | ||||||
Total General And Administrative Expenses
|
5,234,986 | 5,874,001 | ||||||
Income Before Income Taxes
|
1,721,334 | 683,817 | ||||||
Provision For Income Taxes
|
1,235,406 | 229,446 | ||||||
Net Income
|
485,928 | 454,371 | ||||||
Preferred Stock Dividends
|
110,000 | 110,001 | ||||||
Net Income Available To Common Shareholders
|
$ | 375,928 | $ | 344,370 | ||||
Basic Net Income Per Common Share
|
$ | 0.13 | $ | 0.12 | ||||
Diluted Net Income Per Common Share
|
$ | 0.13 | $ | 0.12 | ||||
Cash Dividend Per Share On Common Stock
|
$ | 0.08 | $ | 0.08 | ||||
Basic Weighted Average Common Shares Outstanding
|
2,944,001 | 2,869,205 | ||||||
Diluted Weighted Average Common Shares Outstanding
|
2,944,001 | 2,931,633 |
Nine Months Ended
December 31,
|
||||||||
2011
|
2010
|
|||||||
Interest Income:
|
||||||||
Loans
|
$ | 21,440,946 | $ | 24,649,276 | ||||
Mortgage-Backed Securities
|
5,889,250 | 6,359,160 | ||||||
Investment Securities
|
2,245,216 | 1,928,999 | ||||||
Other
|
1,836 | 3,433 | ||||||
Total Interest Income
|
29,577,248 | 32,940,868 | ||||||
Interest Expense:
|
||||||||
NOW And Money Market Accounts
|
1,344,529 | 1,638,090 | ||||||
Statement Savings Accounts
|
34,579 | 46,191 | ||||||
Certificate Accounts
|
3,916,893 | 5,963,591 | ||||||
Advances And Other Borrowed Money
|
3,783,956 | 4,440,815 | ||||||
Convertible Senior Debentures
|
365,040 | 365,040 | ||||||
Junior Subordinated Debentures
|
137,914 | 176,121 | ||||||
Total Interest Expense
|
9,582,911 | 12,629,848 | ||||||
Net Interest Income
|
19,994,337 | 20,311,020 | ||||||
Provision For Loan Losses
|
6,700,000 | 5,950,000 | ||||||
Net Interest Income After Provision For Loan Losses
|
13,294,337 | 14,361,020 | ||||||
Non-Interest Income:
|
||||||||
Gain On Sale Of Investments
|
1,765,294 | 1,188,381 | ||||||
Gain On Sale Of Loans
|
391,810 | 1,180,870 | ||||||
Service Fees On Deposit Accounts
|
878,938 | 879,627 | ||||||
Income From Cash Value Of Life Insurance
|
315,000 | 305,000 | ||||||
Commissions From Insurance Agency
|
307,797 | 301,585 | ||||||
Trust Income
|
350,000 | 328,500 | ||||||
Mandatorily Redeemable Financial Instrument Valuation
|
50,000 | 5,000 | ||||||
Check Card Fee Income
|
589,194 | 506,893 | ||||||
Other
|
679,185 | 523,557 | ||||||
Total Non-Interest Income
|
5,327,218 | 5,219,413 | ||||||
General And Administrative Expenses:
|
||||||||
Salaries And Employee Benefits
|
8,250,733 | 9,023,500 | ||||||
Occupancy
|
1,435,224 | 1,443,340 | ||||||
Advertising
|
309,772 | 298,839 | ||||||
Depreciation And Maintenance Of Equipment
|
1,292,000 | 1,377,859 | ||||||
FDIC Insurance Premiums
|
687,910 | 994,048 | ||||||
Amortization of Intangibles
|
47,522 | 67,500 | ||||||
Net Cost Of Operation Of Other Real Estate Owned
|
823,568 | 1,225,188 | ||||||
Other
|
2,745,442 | 2,848,260 | ||||||
Total General And Administrative Expenses
|
15,592,171 | 17,278,534 | ||||||
Income Before Income Taxes
|
3,029,384 | 2,301,899 | ||||||
Provision For Income Taxes
|
1,663,956 | 849,590 | ||||||
Net Income
|
1,365,428 | 1,452,309 | ||||||
Preferred Stock Dividends
|
330,000 | 556,452 | ||||||
Accretion Of Preferred Stock To Redemption Value
|
- | 18,816 | ||||||
Net Income Available To Common Shareholders
|
$ | 1,035,428 | $ | 877,041 | ||||
Basic Net Income Per Common Share
|
$ | 0.35 | $ | 0.34 | ||||
Diluted Net Income Per Common Share
|
$ | 0.35 | $ | 0.33 | ||||
Cash Dividend Per Share On Common Stock
|
$ | 0.24 | $ | 0.24 | ||||
Basic Weighted Average Common Shares Outstanding
|
2,944,001 | 2,599,081 | ||||||
Diluted Weighted Average Common Shares Outstanding
|
2,944,001 | 2,678,530 |
Preferred
Stock
|
Warrants
|
Common
Stock
|
Additional
Paid – In
Capital
|
Treasury
Stock
|
Accumulated Other Comprehensive Income
|
Retained
Earnings
|
Total
|
|||||||||||||||||||||||||
Balance At March 31, 2010
|
$ | 17,692,609 | $ | 400,000 | $ | 26,055 | $ | 5,352,144 | $ | (4,330,712 | ) | $ | 4,608,080 | $ | 44,112,443 | $ | 67,860,619 | |||||||||||||||
Net Income
|
- | - | - | - | - | - | 1,452,309 | 1,452,309 | ||||||||||||||||||||||||
Other Comprehensive Income,
Net Of Tax:
|
||||||||||||||||||||||||||||||||
Unrealized Holding Gains
On Securities Available
For Sale, Net Of Taxes
|
- | - | - | - | - | 220,249 | - | 220,249 | ||||||||||||||||||||||||
Reclassification Adjustment
For Gains Included In Net
Income, Net Of Taxes
|
- | - | - | - | - | (736,796 | ) | - | (736,796 | ) | ||||||||||||||||||||||
Comprehensive Income
|
- | - | - | - | - | - | - | 935,762 | ||||||||||||||||||||||||
Common Stock Issuance
|
- | - | 4,829 | 4,824,231 | - | - | - | 4,829,060 | ||||||||||||||||||||||||
Preferred Stock Issuance
|
22,000,000 | - | - | - | - | - | - | 22,000,000 | ||||||||||||||||||||||||
Preferred Stock Redemption
|
(17,711,425 | ) | - | - | - | - | - | (288,575 | ) | (18,000,000 | ) | |||||||||||||||||||||
Accretion Of Preferred Stock To Redemption Value
|
18,816 | - | - | - | - | - | (18,816 | ) | - | |||||||||||||||||||||||
Stock Compensation Expense
|
- | - | - | 24,843 | - | - | - | 24,843 | ||||||||||||||||||||||||
Cash Dividends On Preferred
|
- | - | - | - | - | - | (616,222 | ) | (616,222 | ) | ||||||||||||||||||||||
Cash Dividends On Common
|
- | - | - | - | - | - | (622,663 | ) | (622,663 | ) | ||||||||||||||||||||||
Balance At December 31, 2010
|
$ | 22,000,000 | $ | 400,000 | $ | 30,884 | $ | 10,201,218 | $ | (4,330,712 | ) | $ | 4,091,533 | $ | 44,018,476 | $ | 76,411,399 |
Preferred
Stock
|
Warrants
|
Common
Stock
|
Additional
Paid – In
Capital
|
Treasury
Stock
|
Accumulated Other Comprehensive Income
|
Retained
Earnings
|
Total
|
|||||||||||||||||||||||||
Balance At March 31, 2011
|
$ | 22,000,000 | $ | 400,000 | $ | 30,884 | $ | 10,176,375 | $ | (4,330,712 | ) | $ | 3,637,675 | $ | 44,097,983 | $ | 76,012,205 | |||||||||||||||
Net Income
|
- | - | - | - | - | - | 1,365,428 | 1,365,428 | ||||||||||||||||||||||||
Other Comprehensive Income,
Net Of Tax:
|
||||||||||||||||||||||||||||||||
Unrealized Holding Gains
On Securities Available
For Sale, Net Of Taxes
|
- | - | - | - | - | 3,873,084 | - | 3,873,084 | ||||||||||||||||||||||||
Reclassification Adjustment
For Gains Included In Net
Income, Net Of Taxes
|
- | - | - | - | - | (1,094,482 | ) | - | (1,094,482 | ) | ||||||||||||||||||||||
Comprehensive Income
|
4,144,030 | |||||||||||||||||||||||||||||||
Redemption Of Mandatorily Redeemable Financial Instrument
|
- | - | 565 | 1,416,747 | - | - | - | 1,417,312 | ||||||||||||||||||||||||
Stock Compensation Expense
|
- | - | - | - | - | - | 24,842 | 24,842 | ||||||||||||||||||||||||
Cash Dividends On Preferred
|
- | - | - | - | - | - | (330,000 | ) | (330,000 | ) | ||||||||||||||||||||||
Cash Dividends On Common
|
- | - | - | - | - | - | (706,508 | ) | (706,508 | ) | ||||||||||||||||||||||
Balance At December 31, 2011
|
$ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,593,122 | $ | (4,330,712 | ) | $ | 6,416,277 | $ | 44,451,745 | $ | 80,561,881 |
Nine Months Ended
December 31,
|
||||||||
2011
|
2010
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net Income
|
$ | 1,365,428 | $ | 1,452,309 | ||||
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities:
|
||||||||
Depreciation Expense
|
1,118,336 | 1,173,023 | ||||||
Amortization Of Intangible Assets
|
47,522 | 67,500 | ||||||
Stock Option Compensation Expense
|
24,842 | 24,843 | ||||||
Discount Accretion And Premium Amortization
|
3,816,323 | 2,547,909 | ||||||
Provisions For Losses On Loans And Real Estate
|
6,700,000 | 5,950,000 | ||||||
Write Down Of Repossessed Assets Acquired In Settlement Of Loans
|
408,920 | 621,496 | ||||||
Mandatorily Redeemable Financial Instrument Valuation Income
|
(50,000 | ) | (5,000 | ) | ||||
Gain On Sale Of Mortgage-Backed Securities Available For Sale
|
(1,046,505 | ) | (1,038,435 | ) | ||||
Gain On Sale Of Investment Securities Available For Sale
|
(718,789 | ) | (149,946 | ) | ||||
Gain On Sale Of Loans
|
(391,810 | ) | (1,180,870 | ) | ||||
(Gain) Loss On Sale Of Repossessed Assets Acquired In Settlement Of Loans
|
(15,056 | ) | 228,447 | |||||
Amortization Of Deferred Fees On Loans
|
(15,820 | ) | (18,405 | ) | ||||
Income From Bank Owned Life Insurance
|
(315,000 | ) | (305,000 | ) | ||||
Proceeds From Sale Of Loans Held For Sale
|
30,048,576 | 63,318,003 | ||||||
Origination Of Loans For Sale
|
(30,121,623 | ) | (72,475,733 | ) | ||||
Increase In Accrued Interest Receivable:
|
||||||||
Loans
|
(101,050 | ) | (14,964 | ) | ||||
Mortgage-Backed Securities
|
(20,900 | ) | 94,285 | |||||
Investments
|
(151,662 | ) | (221,145 | ) | ||||
Decrease In Advance Payments By Borrowers
|
(166,478 | ) | (106,419 | ) | ||||
Other, Net
|
128,569 | 825,513 | ||||||
Net Cash Provided By Operating Activities
|
10,543,823 | 787,411 | ||||||
Cash Flows From Investing Activities:
|
||||||||
Principal Repayments On Mortgage-Backed Securities Held To Maturity
|
893,501 | 3,018,518 | ||||||
Principal Repayments On Mortgage-Backed Securities Available For Sale
|
35,966,227 | 44,906,395 | ||||||
Purchase Of Investment Securities Available For Sale
|
(49,104,238 | ) | (72,633,466 | ) | ||||
Purchase Of Mortgage-Backed Securities Available For Sale
|
(70,106,910 | ) | (72,675,609 | ) | ||||
Purchase Of Investment Securities Held To Maturity
|
(9,992,239 | ) | - | |||||
Purchase Of Mortgage-Backed Securities Held To Maturity
|
(21,849,284 | ) | - | |||||
Maturities Of Investment Securities Available For Sale
|
20,502,013 | 26,631,467 | ||||||
Maturities Of Investment Securities Held To Maturity
|
5,358,428 | 1,388,855 | ||||||
Proceeds From Sale Of Mortgage-Backed Securities Available For Sale
|
42,723,935 | 38,291,203 | ||||||
Proceeds From Sale Of Investment Securities Available For Sale
|
22,061,479 | 5,442,103 | ||||||
Investment In Certificates Of Deposits With Other Banks
|
(1,625,000 | ) | - | |||||
Redemption Of FHLB Stock
|
2,830,728 | 1,356,915 | ||||||
Purchase Of FHLB Stock
|
(34,343 | ) | - | |||||
Decrease In Loans To Customers
|
29,380,699 | 42,031,986 | ||||||
Proceeds From Sale Of Repossessed Assets
|
3,450,917 | 6,196,196 | ||||||
Purchase And Improvement Of Premises And Equipment
|
(412,083 | ) | (625,162 | ) | ||||
Net Cash Provided By Investing Activities
|
10,043,830 | 23,329,401 |
Nine Months Ended
December 31,
|
||||||||
2011
|
2010
|
|||||||
Cash Flows From Financing Activities:
|
||||||||
Decrease In Deposit Accounts
|
(626,126 | ) | (4,957,845 | ) | ||||
Proceeds From FHLB Advances
|
80,701,383 | 113,120,000 | ||||||
Repayment Of FHLB Advances
|
(98,263,754 | ) | (139,233,462 | ) | ||||
Net Repayment Of Other Borrowings
|
(1,400,742 | ) | (835,410 | ) | ||||
Proceeds From Issuance Of Preferred Stock
|
- | 22,000,000 | ||||||
Proceeds From Issuance Of Common Stock
|
- | 4,829,060 | ||||||
Redemption Of Preferred Stock
|
- | (18,000,000 | ) | |||||
Dividends To Preferred Shareholders
|
(330,000 | ) | (616,222 | ) | ||||
Dividends To Common Shareholders
|
(706,508 | ) | (622,663 | ) | ||||
Net Cash Used By Financing Activities
|
(20,625,747 | ) | (24,316,542 | ) | ||||
Net Decrease In Cash And Cash Equivalents
|
(38,094 | ) | (199,730 | ) | ||||
Cash And Cash Equivalents At Beginning Of Period
|
7,835,638 | 8,804,645 | ||||||
Cash And Cash Equivalents At End Of Period
|
$ | 7,797,544 | $ | 8,604,915 | ||||
Supplemental Disclosure Of Cash Flows Information:
|
||||||||
Cash Paid During The Period For Interest
|
$ | 9,790,427 | $ | 12,925,718 | ||||
Cash Paid During The Period For Income Taxes
|
$ | 1,616,016 | $ | 19,432 | ||||
Additions To Repossessed Acquired Through Foreclosure
|
$ | 3,071,304 | $ | 11,250,853 |
1.
|
Basis of Presentation
|
2.
|
Principles of Consolidation
|
3.
|
Critical Accounting Policies, Continued
|
4.
|
Earnings Per Common Share
|
For the Quarter Ended:
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Earnings Available To Common Shareholders:
|
||||||||
Net Income
|
$ | 485,928 | $ | 454,371 | ||||
Preferred Stock Dividends
|
110,000 | 110,001 | ||||||
Net Income Available To Common Shareholders
|
$ | 375,928 | $ | 344,370 |
For the Nine Months Ended:
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Earnings Available To Common Shareholders:
|
||||||||
Net Income
|
$ | 1,365,428 | $ | 1,452,309 | ||||
Preferred Stock Dividends
|
330,000 | 556,452 | ||||||
Deemed Dividends On Preferred Stock From Net
Accretion of Preferred Stock
|
- | 18,816 | ||||||
Net Income Available To Common Shareholders
|
$ | 1,035,428 | $ | 877,041 |
For the Quarter Ended
|
||||||||||||
December 31, 2010
|
||||||||||||
Income (Numerator) Amount
|
Shares (Denominator)
|
Per Share
|
||||||||||
Basic EPS
|
$ | 344,370 | 2,869,205 | $ | 0.12 | |||||||
Effect Of Diluted Securities:
|
||||||||||||
Mandatorily Redeemable
Shares
|
- | 62,428 | - | |||||||||
Senior Convertible Debentures
|
- | - | - | |||||||||
Stock Options And Warrants
|
- | - | - | |||||||||
Diluted EPS
|
$ | 344,370 | 2,931,633 | $ | 0.12 |
For the Nine Months Ended
|
||||||||||||
December 31, 2010
|
||||||||||||
Income (Numerator) Amount
|
Shares (Denominator)
|
Per Share
|
||||||||||
Basic EPS
|
$ | 877,041 | 2,599,081 | $ | 0.34 | |||||||
Effect Of Diluted Securities:
|
||||||||||||
Mandatorily Redeemable
Shares
|
- | 79,449 | (0.01 | ) | ||||||||
Senior Convertible Debentures
|
- | - | - | |||||||||
Stock Options And Warrants
|
- | - | - | |||||||||
Diluted EPS
|
$ | 877,041 | 2,678,530 | $ | 0.33 |
5.
|
Stock-Based Compensation
|
Three Months Ended
December 31, 2011
|
Nine Months Ended
December 31, 2011
|
|||||||||||||||
Shares
|
Weighted
Average
Exercise Price
|
Shares
|
Weighted
Average
Exercise Price
|
|||||||||||||
Balance, Beginning Of Period/Year
|
75,400 | $ | 22.59 | 82,400 | $ | 22.52 | ||||||||||
Options granted
|
- | - | - | - | ||||||||||||
Options exercised
|
- | - | - | - | ||||||||||||
Options forfeited
|
500 | 20.55 | 7,500 | 21.65 | ||||||||||||
Balance, December 31, 2011
|
74,900 | $ | 22.61 | 74,900 | $ | 22.61 | ||||||||||
Options Exercisable
|
44,600 | 44,600 | ||||||||||||||
Options Available For Grant
|
50,000 | 50,000 |
Three Months Ended
December 31, 2010
|
Nine Months Ended
December 31, 2010
|
|||||||||||||||
Shares
|
Weighted
Average
Exercise Price
|
Shares
|
Weighted
Average
Exercise Price
|
|||||||||||||
Balance, Beginning Of Period/Year
|
90,900 | $ | 22.57 | 90,900 | $ | 22.57 | ||||||||||
Options granted
|
- | - | - | - | ||||||||||||
Options exercised
|
- | - | - | - | ||||||||||||
Options forfeited
|
9,500 | 23.09 | 9,500 | 23.09 | ||||||||||||
Balance, December 31, 2010
|
81,400 | $ | 22.51 | 81,400 | $ | 22.51 | ||||||||||
Options Exercisable
|
49,900 | 49,900 | ||||||||||||||
Options Available For Grant
|
50,000 | 50,000 |
Grant Date
|
Outstanding Options
|
Option Price
|
Expiration Date
|
||||||
09/01/03
|
2,400 | $ | 24.00 |
08/31/13
|
|||||
12/01/03
|
3,000 | $ | 23.65 |
11/30/13
|
|||||
01/01/04
|
5,000 | $ | 24.22 |
12/31/13
|
|||||
03/08/04
|
7,000 | $ | 21.43 |
03/08/14
|
|||||
06/07/04
|
2,000 | $ | 24.00 |
06/07/14
|
|||||
01/01/05
|
20,000 | $ | 20.55 |
12/31/14
|
|||||
01/01/06
|
4,000 | $ | 23.91 |
01/01/16
|
|||||
08/24/06
|
6,000 | $ | 23.03 |
08/24/16
|
|||||
05/24/07
|
2,000 | $ | 24.34 |
05/24/17
|
|||||
07/09/07
|
1,000 | $ | 24.61 |
07/09/17
|
|||||
10/01/07
|
2,000 | $ | 24.28 |
10/01/17
|
|||||
01/01/08
|
16,000 | $ | 23.49 |
01/01/18
|
|||||
05/19/08
|
2,500 | $ | 22.91 |
05/19/18
|
|||||
07/01/08
|
2,000 | $ | 22.91 |
07/01/18
|
6.
|
Stock Warrants
|
Level 1
|
Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasuries and money market funds.
|
Level 2
|
Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, mortgage-backed securities, municipal bonds, corporate debt securities and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans.
|
Level 3
|
Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
|
Assets:
|
Quoted Market Price In Active Markets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
|||||||||
FHLB Securities
|
$ | - | $ | 6,171,849 | $ | - | ||||||
Federal National Mortgage
Association (“FNMA”) And
Federal Home Loan Mortgage
Corporation (“FHLMC”) Bonds
|
- | 3,005,359 | - | |||||||||
Small Business Administration
(“SBA”) Bonds
|
- | 77,817,459 | - | |||||||||
Taxable Municipal Securities
|
- | 20,533,269 | - | |||||||||
Mortgage-Backed Securities
|
- | 232,272,202 | - | |||||||||
Equity Securities
|
- | 61,500 | - | |||||||||
Total
|
$ | - | $ | 339,861,638 | $ | - |
Assets:
|
Quoted Market
Price In Active
Markets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||
FHLB Securities
|
$ | - | $ | 14,209,332 | $ | - | ||||||
Federal Farm Credit Securities
|
- | 2,006,600 | - | |||||||||
FNMA And FHLMC Bonds
|
- | 11,660,990 | - | |||||||||
SBA Bonds
|
- | 64,709,832 | - | |||||||||
Taxable Municipal Securities
|
- | 4,471,650 | - | |||||||||
Tax Exempt Municipal Securities
|
- | 2,034,943 | - | |||||||||
Mortgage-Backed Securities
|
- | 240,080,693 | - | |||||||||
Equity Securities
|
- | 78,750 | - | |||||||||
Total
|
- | $ | 339,252,790 | $ | - | |||||||
Liabilities:
|
||||||||||||
Mandatorily Redeemable Financial
Instrument
|
- | $ | 1,467,312 | $ | - | |||||||
Total
|
$ | - | $ | 1,467,312 | $ | - |
Assets:
|
Level 1
|
Level 2
|
Level 3
|
Balance At
December 31, 2011
|
||||||||||||
Goodwill
|
$ | - | $ | - | $ | 1,199,754 | $ | 1,199,754 | ||||||||
Mortgage Loans Held For Sale
|
- | 5,631,091 | - | 5,631,091 | ||||||||||||
Impaired Loans (1)
|
- | - | 30,603,094 | 30,603,094 | ||||||||||||
Foreclosed Assets
|
- | - | 13,660,376 | 13,660,376 | ||||||||||||
Total
|
$ | - | $ | 5,631,091 | $ | 45,463,224 | $ | 51,094,315 |
Assets:
|
Level 1
|
Level 2
|
Level 3
|
Balance At
March 31, 2011
|
||||||||||||
Goodwill
|
$ | - | $ | - | $ | 1,199,754 | $ | 1,199,754 | ||||||||
Mortgage Loans Held For Sale
|
- | 5,166,234 | - | 5,166,234 | ||||||||||||
Impaired Loans (1)
|
- | - | 32,525,192 | 32,525,192 | ||||||||||||
Foreclosed Assets
|
- | - | 14,433,853 | 14,433,853 | ||||||||||||
Total
|
$ | - | $ | 5,166,234 | $ | 48,158,799 | $ | 53,325,033 |
December 31, 2011
|
March 31, 2011
|
|||||||||||||||
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||
Cash And Cash Equivalents
|
$ | 7,798 | $ | 7,798 | $ | 7,836 | $ | 7,836 | ||||||||
Certificates of Deposits With Other Banks
|
1,727 | 1,727 | 100 | 101 | ||||||||||||
Investment And Mortgage-Backed Securities
|
398,394 | 400,222 | 372,418 | 373,376 | ||||||||||||
Loans Receivable, Net
|
445,799 | 444,232 | 484,471 | 482,834 | ||||||||||||
FHLB Stock
|
8,471 | 8,471 | 11,267 | 11,267 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Deposits:
|
||||||||||||||||
Checking, Savings, And Money Market Accounts
|
$ | 361,034 | $ | 361,034 | $ | 332,220 | $ | 332,220 | ||||||||
Certificate Accounts
|
328,697 | 330,628 | 358,137 | 361,110 | ||||||||||||
Advances From FHLB
|
120,574 | 131,229 | 138,136 | 147,207 | ||||||||||||
Other Borrowed Money
|
9,795 | 9,795 | 11,195 | 11,195 | ||||||||||||
Senior Convertible Debentures
|
6,084 | 6,084 | 6,084 | 6,084 | ||||||||||||
Junior Subordinated Debentures
|
5,155 | 5,155 | 5,155 | 5,155 |
December 31, 2011
|
||||||||||||||||
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||
FHLB Securities
|
$ | 6,097,930 | $ | 79,695 | $ | 5,776 | $ | 6,171,849 | ||||||||
FNMA And FHLMC Bonds
|
2,999,269 | 6,090 | - | 3,005,359 | ||||||||||||
SBA Bonds
|
76,633,844 | 1,365,648 | 182,033 | 77,817,459 | ||||||||||||
Tax Exempt Municipal Bonds
|
19,683,873 | 859,416 | 10,020 | 20,533,269 | ||||||||||||
Mortgage-Backed Securities
|
223,998,940 | 8,473,529 | 200,267 | 232,272,202 | ||||||||||||
Equity Securities
|
102,938 | - | 41,438 | 61,500 | ||||||||||||
$ | 329,516,794 | $ | 10,784,378 | $ | 439,534 | $ | 339,861,638 |
March 31, 2011
|
||||||||||||||||
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair value
|
|||||||||||||
FHLB Securities
|
$ | 14,428,778 | $ | 125,259 | $ | 344,705 | $ | 14,209,332 | ||||||||
Federal Farm Credit Securities
|
1,997,097 | 9,503 | - | 2,006,600 | ||||||||||||
FNMA And FHLMC Bonds
|
11,959,119 | - | 298,129 | 11,660,990 | ||||||||||||
SBA Bonds
|
64,382,588 | 599,679 | 272,435 | 64,709,832 | ||||||||||||
Taxable Municipal Bond
|
4,556,812 | 12,039 | 97,201 | 4,471,650 | ||||||||||||
Tax Exempt Municipal Bonds
|
2,027,172 | 7,771 | - | 2,034,943 | ||||||||||||
Mortgage-Backed Securities
|
233,933,275 | 6,681,694 | 534,276 | 240,080,693 | ||||||||||||
Equity Securities
|
102,938 | - | 24,188 | 78,750 | ||||||||||||
$ | 333,387,779 | $ | 7,435,945 | $ | 1,570,934 | $ | 339,252,790 |
Amortized Cost
|
Fair Value
|
|||||||
Less Than One Year
|
$ | 944,985 | $ | 950,098 | ||||
One – Five Years
|
9,720,464 | 9,898,591 | ||||||
Over Five – Ten Years
|
42,766,098 | 43,238,208 | ||||||
After Ten Years
|
52,086,307 | 53,502,539 | ||||||
Mortgage-Backed Securities
|
223,998,940 | 232,272,202 | ||||||
$ | 329,516,794 | $ | 339,861,638 |
December 31, 2011
|
Less than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
|||||||||||||||||||
FHLB Securities
|
$ | 2,892,861 | $ | 5,776 | $ | - | $ | - | $ | 2,892,861 | $ | 5,776 | ||||||||||||
SBA Bonds
|
13,409,799 | 182,033 | - | - | 13,409,799 | 182,033 | ||||||||||||||||||
Tax Exempt Municipal Bonds
|
1,086,860 | 10,020 | - | - | 1,086,860 | 10,020 | ||||||||||||||||||
Mortgage-Backed Securities
|
27,124,448 | 200,267 | - | - | 27,124,448 | $ | 200,267 | |||||||||||||||||
Equity Securities
|
- | - | 61,500 | 41,438 | 61,500 | 41,438 | ||||||||||||||||||
$ | 44,513,968 | $ | 398,096 | $ | 61,500 | $ | 41,438 | $ | 44,575,468 | $ | 439,534 |
March 31, 2011
|
Less than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
|||||||||||||||||||
FHLB Securities
|
$ | 11,316,397 | $ | 344,705 | $ | - | $ | - | $ | 11,316,397 | $ | 344,705 | ||||||||||||
FNMA And FHLMC Bonds
|
11,660,990 | 298,129 | - | - | 11,660,990 | 298,129 | ||||||||||||||||||
SBA Bonds
|
22,878,098 | 272,435 | - | - | 22,878,098 | 272,435 | ||||||||||||||||||
Taxable Municipal Bond
|
2,452,620 | 97,201 | 2,452,620 | 97,201 | ||||||||||||||||||||
Mortgage-Backed Securities
|
49,991,656 | 534,276 | - | - | 49,991,656 | 534,276 | ||||||||||||||||||
Equity Securities
|
- | - | 78,750 | 24,188 | 78,750 | 24,188 | ||||||||||||||||||
$ | 98,299,761 | $ | 1,546,746 | $ | 78,750 | $ | 24,188 | $ | 98,378,511 | $ | 1,570,934 |
December 31, 2011
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
FHLB Securities
|
$ | 10,019,894 | $ | 267,426 | $ | - | $ | 10,287,320 | ||||||||
FNMA And FHLMC Bonds
|
4,986,990 | 29,092 | 2,972 | 5,013,110 | ||||||||||||
SBA Bonds
|
3,491,543 | 321,120 | - | 3,812,663 | ||||||||||||
Mortgage-Backed Securities
|
39,878,741 | 1,220,992 | 7,687 | 41,092,046 | ||||||||||||
Equity Securities
|
155,000 | - | - | 155,000 | ||||||||||||
Total
|
$ | 58,532,168 | $ | 1,838,630 | $ | 10,659 | $ | 60,360,139 |
March 31, 2011
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
|
||||||||||||||||
FHLB Securities
|
$ | 10,040,055 | $ | 297,670 | $ | 694 | $ | 10,337,031 | ||||||||
SBA Bonds
|
3,856,483 | 242,167 | - | 4,098,650 | ||||||||||||
Mortgage-Backed Securities
|
19,113,587 | 418,657 | - | 19,532,244 | ||||||||||||
Equity Securities
|
155,000 | - | - | 155,000 | ||||||||||||
Total
|
$ | 33,165,125 | $ | 958,494 | $ | 694 | $ | 34,122,925 |
Amortized Cost
|
Fair Value
|
|||||||
Less Than One Year
|
$ | - | $ | - | ||||
One – Five Years
|
5,155,000 | 5,367,329 | ||||||
Over Five – Ten Years
|
8,727,582 | 8,809,249 | ||||||
More Than Ten Years
|
4,770,845 | 5,091,515 | ||||||
Mortgage-Backed Securities
|
39,878,741 | 41,092,046 | ||||||
Total
|
$ | 58,532,168 | $ | 60,360,139 |
December 31, 2011
|
Less than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
FNMA And FHLMC Bonds
|
$ | 994,580 | $ | 2,972 | $ | - | $ | - | $ | 994,580 | $ | 2,972 | ||||||||||||
Mortgage-Backed Securities
|
4,435,013 | 7,687 | - | - | 4,435,013 | 7,687 | ||||||||||||||||||
Total
|
$ | 5,429,593 | $ | 10,659 | $ | - | $ | - | $ | 5,429,593 | $ | 10,659 |
December 31, 2011
|
March 31, 2011
|
|||||||
Residential Real Estate
|
$ | 99,021,656 | $ | 111,028,021 | ||||
Consumer
|
60,353,026 | 64,862,668 | ||||||
Commercial Business
|
10,595,547 | 13,529,957 | ||||||
Commercial Real Estate
|
285,963,893 | 306,955,623 | ||||||
Total Loans Held For Investment
|
455,934,122 | 496,376,269 | ||||||
Loans Held For Sale
|
5,631,091 | 5,166,234 | ||||||
Total Loans Receivable, Gross
|
461,565,213 | 501,542,503 | ||||||
Less:
|
||||||||
Allowance For Possible Loan Loss
|
14,261,374 | 12,501,800 | ||||||
Loans In Process
|
1,478,926 | 4,580,059 | ||||||
Deferred Loan Fees
|
25,623 | (9,972 | ) | |||||
15,765,923 | 17,071,887 | |||||||
Total Loans Receivable, Net
|
$ | 445,799,290 | $ | 484,470,616 |
Credit Quality Measures
|
||||||||||||||||||||
December 31, 2011
|
Pass
|
Watch
|
Special
Mention
|
Substandard
|
Total Loans
|
|||||||||||||||
Residential Real Estate
|
$ | 90,231,081 | $ | - | $ | 760,776 | $ | 8,029,799 | $ | 99,021,656 | ||||||||||
Consumer
|
48,133,541 | 215,582 | 29,240 | 11,974,663 | 60,353,026 | |||||||||||||||
Commercial Business
|
9,609,759 | 323,864 | - | 661,924 | 10,595,547 | |||||||||||||||
Commercial Real Estate
|
208,761,442 | 19,912,978 | 15,558,297 | 41,731,176 | 285,963,893 | |||||||||||||||
Total
|
$ | 356,735,823 | $ | 20,452,424 | $ | 16,348,313 | $ | 62,397,562 | $ | 455,934,122 |
Credit Quality Measures
|
||||||||||||||||||||
March 31, 2011
|
Pass
|
Watch
|
Special
Mention
|
Substandard
|
Total Loans
|
|||||||||||||||
Residential Real Estate
|
$ | 104,826,411 | $ | 433,710 | $ | 379,036 | $ | 5,388,864 | $ | 111,028,021 | ||||||||||
Consumer
|
61,425,853 | 97,706 | 9,180 | 3,329,929 | 64,862,668 | |||||||||||||||
Commercial Business
|
12,059,761 | 6,285 | - | 1,463,911 | 13,529,957 | |||||||||||||||
Commercial Real Estate
|
230,031,130 | 10,786,846 | 30,462,062 | 35,675,585 | 306,955,623 | |||||||||||||||
Total
|
$ | 408,343,155 | $ | 11,324,547 | $ | 30,850,278 | $ | 45,858,289 | $ | 496,376,269 |
December 31, 2011
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Day or
More Past
Due
|
Total Past
Due
|
Current
|
Total Loans Receivable
|
||||||||||||||||||
Residential
Real Estate
|
$ | 2,755,185 | $ | - | $ | 4,288,281 | $ | 7,043,466 | $ | 91,978,190 | $ | 99,021,656 | ||||||||||||
Consumer
|
1,480,087 | 206,144 | 1,871,665 | 3,557,896 | 56,795,130 | 60,353,026 | ||||||||||||||||||
Commercial
Business
|
198,108 | 131,232 | 21,200 | 350,540 | 10,245,007 | 10,595,547 | ||||||||||||||||||
Commercial
Real Estate
|
9,327,522 | 12,682,788 | 13,852,025 | 35,862,335 | 250,101,558 | 285,963,893 | ||||||||||||||||||
Total
|
$ | 13,760,902 | $ | 13,020,164 | $ | 20,033,171 | $ | 46,814,237 | $ | 409,119,885 | $ | 455,934,122 |
March 31, 2011
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Day or
More Past
Due
|
Total Past
Due
|
Current
|
Total Loans Receivable
|
||||||||||||||||||
Residential
Real Estate
|
$ | 1,799,800 | $ | - | $ | 1,809,881 | $ | 3,609,681 | $ | 107,418,340 | $ | 111,028,021 | ||||||||||||
Consumer
|
2,673,973 | 196,958 | 1,194,171 | 4,065,102 | 60,797,566 | 64,862,668 | ||||||||||||||||||
Commercial
Business
|
93,579 | 133,399 | 171,901 | 398,879 | 13,131,078 | 13,529,957 | ||||||||||||||||||
Commercial
Real Estate
|
19,441,992 | 2,708,373 | 9,337,385 | 31,487,750 | 275,467,873 | 306,955,623 | ||||||||||||||||||
Total
|
$ | 24,009,344 | $ | 3,038,730 | $ | 12,513,338 | $ | 39,561,412 | $ | 456,814,857 | $ | 496,376,269 |
At December 31, 2011
|
At March 31, 2011
|
$ | % | |||||||||||||||||||||
Amount
|
Percent (1)
|
Amount
|
Percent (1)
|
Increase
(Decrease)
|
Increase
(Decrease)
|
|||||||||||||||||||
Non-accrual Loans:
|
|
|||||||||||||||||||||||
Residential Real Estate
|
$ | 4,288,281 | 0.9 | % | $ | 1,809,881 | 0.4 | % | $ | 2,478,400 | 136.9 | % | ||||||||||||
Commercial Business
|
21,200 | - | 171,901 | - | (150,701 | ) | (87.7 | ) | ||||||||||||||||
Commercial Real Estate
|
13,852,025 | 3.0 | 9,337,385 | 1.9 | 4,514,640 | 48.4 | ||||||||||||||||||
Consumer
|
1,871,665 | 1.4 | 1,194,171 | 0.2 | 677,494 | 56.7 | ||||||||||||||||||
Total Non-Accural Loans
|
$ | 20,033,171 | 4.4 | % | $ | 12,513,338 | 2.5 | % | $ | 7,519,833 | 60.1 | % |
For the Three Months Ended December 31, 2011
|
||||||||||||||||||||
Allowance For
Loan Losses
|
Residential
Real Estate
|
Consumer
|
Commercial
Business
|
Commercial
Real Estate
|
Total
|
|||||||||||||||
Beginning Balance
|
$ | 1,706,796 | $ | 1,033,839 | $ | 844,762 | $ | 10,194,036 | $ | 13,779,433 | ||||||||||
Provision
|
820,060 | (6,735 | ) | (124,771 | ) | 1,411,446 | 2,100,000 | |||||||||||||
Charge-Offs
|
(110,500 | ) | (50,380 | ) | - | (1,479,228 | ) | (1,640,108 | ) | |||||||||||
Recoveries
|
- | 20,056 | 414 | 1,579 | 22,049 | |||||||||||||||
Ending Balance
|
$ | 2,416,356 | $ | 996,780 | $ | 720,405 | $ | 10,127,833 | $ | 14,261,374 |
For the Nine Months Ended December 31, 2011
|
||||||||||||||||||||
Allowance For
Loan Losses
|
Residential
Real Estate
|
Consumer
|
Commercial
Business
|
Commercial
Real Estate
|
Total
|
|||||||||||||||
Beginning Balance
|
$ | 1,702,864 | $ | 1,122,055 | $ | 924,149 | $ | 8,752,732 | $ | 12,501,800 | ||||||||||
Provision
|
1,011,413 | 28,050 | 190,244 | 5,470,293 | 6,700,000 | |||||||||||||||
Charge-Offs
|
(297,921 | ) | (188,795 | ) | (408,138 | ) | (4,131,470 | ) | (5,026,324 | ) | ||||||||||
Recoveries
|
- | 35,470 | 14,150 | 36,278 | 85,898 | |||||||||||||||
Ending Balance
|
$ | 2,416,356 | $ | 996,780 | $ | 720,405 | $ | 10,127,833 | $ | 14,261,374 |
For the Year Ended March 31, 2011
|
||||||||||||||||||||
Allowance For
Loan Losses
|
Residential Real Estate
|
Consumer
|
Commercial Business
|
Commercial Real Estate
|
Total
|
|||||||||||||||
Beginning Balance
|
$ | 1,944,257 | $ | 988,634 | $ | 678,728 | $ | 8,695,775 | $ | 12,307,394 | ||||||||||
Provision
|
644,032 | 649,542 | 539,264 | 5,967,162 | 7,800,000 | |||||||||||||||
Charge-Offs
|
(1,009,937 | ) | (584,600 | ) | (320,960 | ) | (6,201,170 | ) | (8,116,667 | ) | ||||||||||
Recoveries
|
124,512 | 68,479 | 27,117 | 290,965 | 511,073 | |||||||||||||||
Ending Balance
|
$ | 1,702,864 | $ | 1,122,055 | $ | 924,149 | $ | 8,752,732 | $ | 12,501,800 |
Allowance For Loan Losses
|
||||||||||||
December 31, 2011
|
Individually Evaluated For Impairment
|
Collectively Evaluated For Impairment
|
Total
|
|||||||||
Residential Real Estate
|
$ | 568,500 | $ | 1,847,856 | $ | 2,416,356 | ||||||
Consumer
|
- | 996,780 | 996,780 | |||||||||
Commercial Business
|
148,610 | 571,795 | 720,405 | |||||||||
Commercial Real Estate
|
697,179 | 9,430,654 | 10,127,833 | |||||||||
Total
|
$ | 1,414,289 | $ | 12,847,085 | $ | 14,261,374 |
Allowance For Loan Losses
|
||||||||||||
March 31, 2011
|
Individually Evaluated For Impairment
|
Collectively Evaluated For Impairment
|
Total
|
|||||||||
Residential Real Estate
|
$ | - | $ | 1,702,864 | $ | 1,702,864 | ||||||
Consumer
|
41,100 | 1,080,955 | 1,122,055 | |||||||||
Commercial Business
|
240,648 | 683,501 | 924,149 | |||||||||
Commercial Real Estate
|
490,728 | 8,262,004 | 8,752,732 | |||||||||
Total
|
$ | 772,476 | $ | 11,729,324 | $ | 12,501,800 |
Loans Receivable
|
||||||||||||
December 31, 2011
|
Individually Evaluated For Impairment
|
Collectively Evaluated For Impairment
|
Total
|
|||||||||
Residential Real Estate
|
$ | 2,925,830 | $ | 96,095,826 | $ | 99,021,656 | ||||||
Consumer
|
3,112,460 | 57,240,566 | 60,353,026 | |||||||||
Commercial Business
|
347,188 | 10,248,359 | 10,595,547 | |||||||||
Commercial Real Estate
|
25,631,905 | 260,331,988 | 285,963,893 | |||||||||
Total
|
$ | 32,017,383 | $ | 423,916,739 | $ | 455,934,122 |
Loans Receivable
|
||||||||||||
March 31, 2011
|
Individually Evaluated For Impairment
|
Collectively Evaluated For Impairment
|
Total
|
|||||||||
Residential Real Estate
|
$ | 2,278,966 | $ | 108,749,055 | $ | 111,028,021 | ||||||
Consumer
|
1,436,829 | 63,425,839 | 64,862,668 | |||||||||
Commercial Business
|
770,011 | 12,759,946 | 13,529,957 | |||||||||
Commercial Real Estate
|
28,811,862 | 278,143,761 | 306,955,623 | |||||||||
Total
|
$ | 33,297,668 | $ | 463,078,601 | $ | 496,376,269 |
Impaired Loans
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
With No Related Allowance
Recorded:
|
||||||||||||||||||||
Residential Real Estate
|
$ | 1,664,957 | $ | 2,294,457 | $ | - | $ | 2,032,193 | $ | 6,499 | ||||||||||
Consumer Loans
|
3,112,460 | 3,422,894 | - | 2,540,503 | 79,097 | |||||||||||||||
Commercial Business
|
198,578 | 222,578 | - | 362,680 | 9,457 | |||||||||||||||
Commercial Real Estate
|
22,087,371 | 24,891,300 | - | 23,168,591 | 462,458 | |||||||||||||||
With An Allowance Recorded:
|
||||||||||||||||||||
Residential Real Estate
|
1,260,873 | 1,260,873 | 568,500 | 397,011 | - | |||||||||||||||
Consumer Loans
|
- | - | - | 30,334 | - | |||||||||||||||
Commercial Business
|
148,610 | 148,610 | 148,610 | 221,766 | 4,652 | |||||||||||||||
Commercial Real Estate
|
3,544,534 | 4,562,034 | 697,179 | 3,907,552 | 42,962 | |||||||||||||||
Total
|
||||||||||||||||||||
Residential Real Estate
|
2,925,830 | 3,555,330 | 568,500 | 2,429,204 | 6,499 | |||||||||||||||
Consumer Loans
|
3,112,460 | 3,422,894 | - | 2,570,837 | 79,097 | |||||||||||||||
Commercial Business
|
347,188 | 371,188 | 148,610 | 584,446 | 14,109 | |||||||||||||||
Commercial Real Estate
|
25,631,905 | 29,453,334 | 697,179 | 27,076,142 | 505,420 | |||||||||||||||
Total
|
$ | 32,017,383 | $ | 36,802,746 | $ | 1,414,289 | $ | 32,660,629 | $ | 605,125 |
Impaired Loans
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
With No Related Allowance
Recorded:
|
||||||||||||||||||||
Residential Real Estate
|
$ | 2,278,966 | $ | 2,683,966 | $ | - | $ | 1,458,882 | $ | 51,267 | ||||||||||
Consumer Loans
|
1,376,161 | 1,583,160 | - | 729,889 | 56,764 | |||||||||||||||
Commercial Business
|
499,481 | 499,481 | - | 327,785 | 14,790 | |||||||||||||||
Commercial Real Estate
|
26,387,167 | 27,948,568 | - | 30,244,873 | 1,361,177 | |||||||||||||||
With An Allowance Recorded:
|
||||||||||||||||||||
Residential Real Estate
|
- | - | - | 41,879 | - | |||||||||||||||
Consumer Loans
|
60,668 | 60,668 | 41,100 | 124,089 | - | |||||||||||||||
Commercial Business
|
270,530 | 270,530 | 240,648 | 207,073 | 4,833 | |||||||||||||||
Commercial Real Estate
|
2,424,695 | 2,614,695 | 490,728 | 4,018,967 | 44,337 | |||||||||||||||
Total
|
||||||||||||||||||||
Residential Real Estate
|
2,278,966 | 2,683,966 | - | 1,500,761 | 51,267 | |||||||||||||||
Consumer Loans
|
1,436,829 | 1,643,828 | 41,100 | 853,978 | 56,764 | |||||||||||||||
Commercial Business
|
770,011 | 770,011 | 240,648 | 534,858 | 19,623 | |||||||||||||||
Commercial Real Estate
|
28,811,862 | 30,563,263 | 490,728 | 34,263,840 | 1,405,514 | |||||||||||||||
Total
|
$ | 33,297,668 | $ | 35,661,068 | $ | 772,476 | $ | 37,153,437 | $ | 1,533,168 |
For the Nine Months Ended
December 31, 2011
|
For the Three Months Ended
December 31, 2011
|
|||||||||||||||||||||||
Troubled Debt
Restructurings
|
Number
of
Contracts
|
Pre-
modification Outstanding
Recorded
Investment
|
Post-
Modification Outstanding
Recorded
Investment
|
Number
of
Contracts
|
Pre-modification Outstanding
Recorded
Investment
|
Post-
Modification Outstanding
Recorded
Investment
|
||||||||||||||||||
Residential Real Estate
|
- | $ | - | $ | - | - | $ | - | $ | - | ||||||||||||||
Consumer Loans
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial Business
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial Real Estate
|
5 | 4,217,849 | 4,217,849 | 2 | 2,429,913 | 2,429,913 | ||||||||||||||||||
Total
|
5 | $ | 4,217,849 | $ | 4,217,849 | 2 | $ | 2,429,913 | $ | 2,429,913 |
·
|
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.
|
·
|
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;
|
·
|
changes in general economic conditions, either nationally or in our market areas;
|
·
|
changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources;
|
·
|
fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas;
|
·
|
secondary market conditions for loans and our ability to sell loans in the secondary market;
|
·
|
results of examinations of the Company by the by the Board of Governors of the Federal Reserve System (“Federal Reserve”), and our bank subsidiary by the FDIC and the South Carolina State Board of Financial Institutions, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings;
|
·
|
legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules;
|
·
|
our ability to attract and retain deposits;
|
·
|
further increases in premiums for deposit insurance;
|
·
|
our ability to control operating costs and expenses;
|
·
|
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;
|
·
|
difficulties in reducing risks associated with the loans on our balance sheet;
|
·
|
staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges;
|
·
|
computer systems on which we depend could fail or experience a security breach;
|
·
|
our ability to retain key members of our senior management team;
|
·
|
costs and effects of litigation, including settlements and judgments;
|
·
|
our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto;
|
·
|
increased competitive pressures among financial services companies;
|
·
|
changes in consumer spending, borrowing and savings habits;
|
·
|
the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the implementing regulations;
|
·
|
the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions;
|
·
|
our ability to pay dividends on our common stock;
|
·
|
adverse changes in the securities markets;
|
·
|
inability of key third-party providers to perform their obligations to us;
|
·
|
changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the FASB, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods;
|
·
|
Future legislative changes and our ability to continue to comply with the requirements of the Treasury’s Community Development Capital Initiative (“CDCI”); and
|
·
|
other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described elsewhere in this prospectus and the incorporated documents.
|
Increase (Decrease)
|
||||||||||||||||
December 31, 2011
|
March 31, 2011
|
Amount
|
Percent
|
|||||||||||||
Certificates Of Deposits With Other
Banks
|
$ | 1,726,765 | $ | 100,432 | $ | 1,626,333 | 1,619.3 | % | ||||||||
Investment And Mortgage-Backed
Securities
|
398,393,806 | 372,417,915 | 25,975,891 | 7.0 | ||||||||||||
Loan Receivable, Net
|
445,799,290 | 484,470,616 | (38,671,326 | ) | (8.0 | ) | ||||||||||
Federal Home Loan Bank Stock
|
8,471,100 | 11,267,485 | (2,796,385 | ) | (24.8 | ) | ||||||||||
Repossessed Assets Acquired In
Settlement Of Loans
|
13,660,376 | 14,433,853 | (773,477 | ) | (5.4 | ) | ||||||||||
Other Assets
|
5,752,349 | 7,865,690 | (2,113,341 | ) | (26.9 | ) |
December 31, 2011
|
March 31, 2011
|
Increase (Decrease)
|
||||||||||||||||||||||
Balance
|
Weighted
Rate
|
Balance
|
Weighted
Rate
|
Amount
|
Percent
|
|||||||||||||||||||
Demand Accounts:
|
||||||||||||||||||||||||
Checking
|
$ | 117,002,762 | 0.15 | % | $ | 117,077,343 | 0.09 | % | $ | (74,581 | ) | (0.1 | )% | |||||||||||
Money Market
|
223,373,391 | 0.68 | % | 194,560,099 | 0.85 | % | 28,813,292 | 14.8 | % | |||||||||||||||
Statement Savings
|
20,658,303 | 0.20 | % | 20,582,505 | 0.24 | % | 75,798 | 0.4 | % | |||||||||||||||
Total
|
361,034,456 | 0.48 | % | 332,219,947 | 0.54 | % | 28,814,509 | 8.7 | % | |||||||||||||||
Certificate Accounts
|
||||||||||||||||||||||||
0.00 – 1.99% | 259,098,600 | - | 239,078,153 | - | 20,020,447 | 8.4 | % | |||||||||||||||||
2.00 – 2.99% | 60,721,241 | - | 107,386,573 | - | (46,665,332 | ) | (43.5 | )% | ||||||||||||||||
3.00 – 3.99% | 2,973,724 | - | 3,307,422 | - | (333,698 | ) | (10.1 | )% | ||||||||||||||||
4.00 – 4.99% | 4,688,443 | - | 5,272,507 | - | (584,064 | ) | (11.1 | )% | ||||||||||||||||
5.00 – 5.99% | 1,214,524 | - | 3,092,512 | - | (1,877,988 | ) | (60.7 | )% | ||||||||||||||||
Total
|
328,696,532 | 1.41 | % | 358,137,167 | 1.71 | % | (29,440,635 | ) | (8.2 | )% | ||||||||||||||
Total Deposits
|
$ | 689,730,988 | 0.92 | % | $ | 690,357,114 | 1.15 | % | $ | (626,126 | ) | 0.0 | % |
Balance
|
||||||||||||||||||||||||
December 31, 2011
|
March 31, 2011
|
Decrease
|
||||||||||||||||||||||
Fiscal Year Due:
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Percent
|
||||||||||||||||||
2012
|
$ | 7,400,000 | 2.85 | % | $ | 24,950,000 | 2.22 | % | $ | (17,550,000 | ) | (70.3 | )% | |||||||||||
2013
|
10,000,000 | 4.76 | % | 10,000,000 | 4.76 | % | - | - | ||||||||||||||||
2014
|
30,000,000 | 3.45 | % | 30,000,000 | 3.45 | % | - | - | ||||||||||||||||
2015
|
20,273,967 | 3.01 | % | 20,286,338 | 3.01 | % | (12,371 | ) | (0.1 | ) | ||||||||||||||
2016
|
20,000,000 | 4.12 | % | 20,000,000 | 4.12 | % | - | - | ||||||||||||||||
Thereafter
|
32,900,000 | 4.36 | % | 32,900,000 | 4.36 | % | - | - | ||||||||||||||||
Total Advances
|
$ | 120,573,967 | 3.81 | % | $ | 138,136,338 | 3.57 | % | $ | (17,562,371 | ) | (12.7 | )% |
As of December 31, 2011
|
||||||||||
Borrow Date
|
Maturity Date
|
Amount
|
Int. Rate
|
Type
|
Call Dates
|
|||||
11/23/05
|
11/23/15
|
5,000,000
|
3.933%
|
Multi-Call
|
05/25/08 and quarterly thereafter
|
|||||
07/11/06
|
07/11/16
|
5,000,000
|
4.800%
|
Multi-Call
|
07/11/08 and quarterly thereafter
|
|||||
11/29/06
|
11/29/16
|
5,000,000
|
4.025%
|
Multi-Call
|
05/29/08 and quarterly thereafter
|
|||||
05/24/07
|
05/24/17
|
7,900,000
|
4.375%
|
Multi-Call
|
05/27/08 and quarterly thereafter
|
|||||
07/25/07
|
07/25/17
|
5,000,000
|
4.396%
|
Multi-Call
|
07/25/08 and quarterly thereafter
|
|||||
08/28/08
|
08/28/13
|
5,000,000
|
3.113%
|
Multi-Call
|
08/30/10 and quarterly thereafter
|
Three Months Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||
Average
Balance
|
Yield(1)
|
Average
Balance
|
Yield(1)
|
Increase (Decrease)
In Interest And Dividend Income
From 2010
|
||||||||||||||||
Loans Receivable, Net
|
$ | 457,021,589 | 6.05 | % | $ | 528,369,487 | 6.06 | % | $ | (1,098,580 | ) | |||||||||
Mortgage-Backed Securities
|
254,043,358 | 2.87 | 222,572,127 | 3.53 | (143,989 | ) | ||||||||||||||
Investment Securities(2)
|
129,358,971 | 2.43 | 107,929,680 | 2.15 | 151,304 | |||||||||||||||
Overnight Time And
Certificates of Deposit
|
6,074,163 | 0.05 | 6,730,533 | 0.12 | (1,209 | ) | ||||||||||||||
Total Interest-Earning Assets
|
$ | 846,498,081 | 4.50 | % | $ | 865,601,827 | 4.88 | % | $ | (1,092,474 | ) |
Three Months Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||
Average
Balance
|
Yield(1)
|
Average
Balance
|
Yield(1)
|
Decrease In
Interest Expense
From 2010
|
||||||||||||||||
NOW And Money Market
Accounts
|
$ | 296,403,832 | 0.59 | % | $ | 254,551,918 | 0.72 | % | $ | (24,040 | ) | |||||||||
Statement Savings Accounts
|
20,745,125 | 0.20 | 19,265,588 | 0.27 | (2,901 | ) | ||||||||||||||
Certificates Accounts
|
329,694,521 | 1.43 | 378,853,218 | 1.95 | (670,077 | ) | ||||||||||||||
Advances And Other Borrowed
Money
|
131,925,334 | 3.66 | 148,734,175 | 3.72 | (173,819 | ) | ||||||||||||||
Convertible Senior Debentures
|
6,084,000 | 8.00 | 6,084,000 | 8.00 | - | |||||||||||||||
Junior Subordinated Debentures
|
5,155,000 | 1.69 | 5,155,000 | 4.54 | (36,643 | ) | ||||||||||||||
Total Interest-Bearing Liabilities
|
$ | 790,007,812 | 1.51 | % | $ | 812,643,899 | 1.91 | % | $ | (907,480 | ) |
Three Months Ended
December 31,
|
||||||||
2011
|
2010
|
|||||||
Beginning Balance
|
$ | 13,779,433 | $ | 11,528,220 | ||||
Provision
|
2,100,000 | 1,900,000 | ||||||
Charge-offs
|
(1,640,108 | ) | (1,041,439 | ) | ||||
Recoveries
|
22,049 | 22,015 | ||||||
Ending Balance
|
$ | 14,261,374 | $ | 12,408,796 | ||||
Allowance For Loan Losses As A Percentage Of Gross Loans Receivable,
Held For Investment At The End Of The Period
|
3.13 | % | 2.39 | % | ||||
Allowance For Loan Losses As A Percentage Of Impaired Loans At The
End Of The Period
|
44.54 | % | 32.77 | % | ||||
Impaired Loans
|
$ | 32,017,383 | $ | 37,867,994 | ||||
Non-accrual Loans And 90 Days Or More Past Due Loans As A
Percentage Of Gross Loans Receivable, Held For Investment At The
End Of The Period
|
4.40 | % | 4.44 | % | ||||
Total Loans Receivable, Net
|
$ | 445,799,290 | $ | 519,523,001 |
Three Months Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
2011
|
2010
|
Amounts
|
Percent
|
|||||||||||||
Gain On Sale Of Investments
|
$ | 1,209,041 | $ | 492,975 | $ | 716,066 | 145.3 | % | ||||||||
Gain On Sale Of Loans
|
162,126 | 334,713 | (172,587 | ) | (51.6 | ) | ||||||||||
Service Fees On Deposit Accounts
|
304,458 | 289,810 | 14,648 | 5.1 | ||||||||||||
Income From Cash Value Of
Life Insurance
|
105,000 | 105,000 | - | - | ||||||||||||
Commissions From Insurance Agency
|
96,539 | 92,619 | 3,920 | 4.2 | ||||||||||||
Trust Income
|
120,000 | 109,500 | 10,500 | 9.6 | ||||||||||||
Mandatorily Redeemable Financial
Instrument Valuation
|
- | 90,000 | (90,000 | ) | (100.0 | ) | ||||||||||
Check Card Fee Income
|
196,401 | 176,144 | 20,257 | 11.5 | ||||||||||||
Other
|
369,892 | 89,200 | 280,692 | 314.7 | ||||||||||||
Total Non-Interest Income
|
$ | 2,563,457 | $ | 1,779,961 | $ | 783,496 | 44.0 | % |
Three Months Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
2011
|
2010
|
Amounts
|
Percent
|
|||||||||||||
Salaries And Employee Benefits
|
$ | 2,671,521 | $ | 3,016,325 | $ | (344,804 | ) | (11.4 | )% | |||||||
Occupancy
|
484,056 | 439,374 | 44,682 | 10.2 | ||||||||||||
Advertising
|
108,479 | 97,491 | 10,988 | 11.3 | ||||||||||||
Depreciation And Maintenance
Of Equipment
|
436,727 | 453,291 | (16,564 | ) | (3.7 | ) | ||||||||||
FDIC Insurance Premiums
|
130,998 | 366,000 | (235,002 | ) | (64.2 | ) | ||||||||||
Amortization of Intangibles
|
12,501 | 22,500 | (9,999 | ) | (44.4 | ) | ||||||||||
Net Cost Of Operation Of Other Real
Estate Owned
|
525,728 | 419,516 | 106,212 | 25.3 | ||||||||||||
Other
|
864,976 | 1,059,504 | (194,528 | ) | (18.4 | ) | ||||||||||
Total General And Administrative
Expenses
|
$ | 5,234,986 | $ | 5,874,001 | $ | (639,015 | ) | (10.9 | )% |
Nine Months Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||
Average
Balance
|
Yield(1)
|
Average
Balance
|
Yield(1)
|
Increase (Decrease)
In Interest And Dividend Income
From 2010
|
||||||||||||||||
Loans Receivable, Net
|
$ | 466,872,585 | 6.12 | % | $ | 545,657,873 | 6.02 | % | $ | (3,208,330 | ) | |||||||||
Mortgage-Backed Securities
|
255,238,349 | 3.08 | 228,704,199 | 3.71 | (469,910 | ) | ||||||||||||||
Investments(2)
|
128,551,070 | 2.43 | 96,285,864 | 2.67 | 316,217 | |||||||||||||||
Overnight Time And
Certificates of Deposit
|
4,178,123 | 0.06 | 3,427,522 | 0.13 | (1,597 | ) | ||||||||||||||
Total Interest-Earning Assets
|
$ | 854,840,127 | 4.63 | % | $ | 874,075,458 | 5.02 | % | $ | (3,363,620 | ) | |||||||||
Nine Months Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||
Average
Balance
|
Yield(1)
|
Average
Balance
|
Yield(1)
|
Decrease In
Interest Expense
From 2010
|
||||||||||||||||
Now And Money Market
Accounts
|
$ | 285,062,835 | 0.63 | % | $ | 247,884,852 | 0.88 | % | $ | (293,561 | ) | |||||||||
Statement Savings Accounts
|
20,784,573 | 0.22 | 19,220,447 | 0.32 | (11,612 | ) | ||||||||||||||
Certificates Accounts
|
338,807,554 | 1.54 | 388,807,686 | 2.05 | (2,046,698 | ) | ||||||||||||||
FHLB Advances And
Other Borrowed Money
|
140,858,209 | 3.58 | 158,690,300 | 3.73 | (656,859 | ) | ||||||||||||||
Senior Convertible Debentures
|
6,084,000 | 8.00 | 6,084,000 | 8.00 | - | |||||||||||||||
Junior Subordinated Debentures
|
5,155,000 | 3.57 | 5,155,000 | 4.56 | (38,207 | ) | ||||||||||||||
Total Interest-Bearing Liabilities
|
$ | 796,752,171 | 1.60 | % | $ | 825,842,285 | 2.04 | % | $ | (3,046,937 | ) |
Nine Months Ended
December 31,
|
||||||||
2011
|
2010
|
|||||||
Beginning Balance
|
$ | 12,501,800 | $ | 12,307,394 | ||||
Provision
|
6,700,000 | 5,950,000 | ||||||
Charge-offs
|
(5,026,324 | ) | (5,916,333 | ) | ||||
Recoveries
|
85,898 | 67,735 | ||||||
Ending Balance
|
$ | 14,261,374 | $ | 12,408,796 |
Nine Months Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
2011
|
2010
|
Amounts
|
Percent
|
|||||||||||||
Gain On Sale Of Investments
|
$ | 1,765,294 | $ | 1,188,381 | $ | 576,913 | 48.6 | % | ||||||||
Gain On Sale Of Loans
|
391,810 | 1,180,870 | (789,060 | ) | (66.8 | ) | ||||||||||
Service Fees On Deposit Accounts
|
878,938 | 879,627 | (689 | ) | (0.1 | ) | ||||||||||
Income From Cash Value Of
Life Insurance
|
315,000 | 305,000 | 10,000 | 3.3 | ||||||||||||
Commissions From Insurance Agency
|
307,797 | 301,585 | 6,212 | 2.1 | ||||||||||||
Trust Income
|
350,000 | 328,500 | 21,500 | 6.5 | ||||||||||||
Mandatorily Redeemable Financial
Instrument Valuation
|
50,000 | 5,000 | 45,000 | 900.0 | ||||||||||||
Check Card Fee Income
|
589,194 | 506,893 | 82,301 | 16.2 | ||||||||||||
Other
|
679,185 | 523,557 | 155,628 | 29.7 | ||||||||||||
Total Non-Interest Income
|
$ | 5,327,218 | $ | 5,219,413 | $ | 107,805 | 2.1 | % |
Nine Months Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
2011
|
2010
|
Amounts
|
Percent
|
|||||||||||||
Salaries And Employee Benefits
|
$ | 8,250,733 | $ | 9,023,500 | $ | (772,767 | ) | (8.6 | )% | |||||||
Occupancy
|
1,435,224 | 1,443,340 | (8,116 | ) | (0.6 | ) | ||||||||||
Advertising
|
309,772 | 298,839 | 10,933 | 3.7 | ||||||||||||
Depreciation And Maintenance
Of Equipment
|
1,292,000 | 1,377,859 | (85,859 | ) | (6.2 | ) | ||||||||||
FDIC Insurance Premiums
|
687,910 | 994,048 | (306,138 | ) | (30.8 | ) | ||||||||||
Amortization of Intangibles
|
47,522 | 67,500 | (19,978 | ) | (29.6 | ) | ||||||||||
Net Cost Of Operation Of Other Real
Estate Owned
|
823,568 | 1,225,188 | (401,620 | ) | (32.8 | ) | ||||||||||
Other
|
2,745,442 | 2,848,260 | (102,818 | ) | (3.6 | ) | ||||||||||
Total General And Administrative
Expenses
|
$ | 15,592,171 | $ | 17,278,534 | $ | (1,686,363 | ) | (9.8 | )% |
(Dollars in thousands)
|
Within
One
Month
|
After One
Through
Three
Months
|
After
Three
Through
Twelve
Months
|
Within
One Year
|
Greater
Than
One
Year
|
Total
|
||||||||||||||||||
Unused lines of credit
|
$ | 73 | $ | 462 | $ | 4,427 | $ | 4,962 | $ | 27,288 | $ | 32,250 | ||||||||||||
Standby letters of credit
|
2 | 230 | 886 | 1,118 | 413 | 1,531 | ||||||||||||||||||
Total
|
$ | 75 | $ | 692 | $ | 5,313 | $ | 6,080 | $ | 27,701 | $ | 33,781 |
3.1 | Articles of Incorporation, as amended (1) | |
3.2 |
Articles of Amendment, including Certificate of Designation relating to the Company’s Fixed Rate Cumulative Perpetual Preferred Stock Series B (2)
|
|
3.3 | Amended and Restated Bylaws (3) | |
4.1 | Form of Stock Certificate of the Company and other instruments defining the rights of security holders, including indentures (4) | |
4.2 | Form of Certificate for the Series B Preferred Shares (2) | |
4.3 |
Warrant to purchase shares of the Company’s common stock dated December 19, 2008 (5)
|
|
4.4 |
Form of Indenture with respect to the Company’s 8.0% Convertible Senior Debentures Due 2029 (6)
|
|
4.5 |
Specimen Convertible Senior Debenture Due 2029 (6)
|
|
4.6 |
Letter Agreement dated September 29, 2010 between Security Federal Corporation and the United States Department of the Treasury, including the Exchange Agreement – Standard Terms, with respect to the exchange of the Series A Fixed Rate Cumulative Perpetual Preferred Stock for the Series B Fixed Rate Cumulative Perpetual Preferred Stock (2)
|
|
4.7 |
Letter Agreement dated September 29, 2010 between Security Federal Corporation and the United States Department of the Treasury, including the Securities Purchase Agreement – Standard Terms, with respect to the purchase of the Series B Fixed Rate Cumulative Perpetual Preferred Stock (2)
|
|
10.1 | 1993 Salary Continuation Agreements (7) | |
10.2 | Amendment One to 1993 Salary Continuation Agreements (8) | |
10.3 |
Form of 2006 Salary Continuation Agreement (9)
|
|
10.4 | 1999 Stock Option Plan (10) | |
10.5 | 2002 Stock Option Plan (11) | |
10.6 | 2006 Stock Option Plan (12) | |
10.7 |
2008 Equity Incentive Plan (13)
|
|
10.8 |
Form of incentive stock option agreement and non-qualified stock option agreement pursuant to the 2006 Stock Option Plan (12)
|
|
10.9 | 2004 Employee Stock Purchase Plan (14) | |
10.10 | Incentive Compensation Plan (7) |
10.11 | Form of Security Federal Bank Salary Continuation Agreement (15) | |
10.12 | Form of Security Federal Split Dollar Agreement (9) | |
10.13 | Form of Compensation Modification Agreement (2) | |
13 |
Annual Report to Stockholders
|
|
14 |
Code of Ethics (16)
|
|
25.0 | Form T-1; Statement of Eligibility of Trustee (6) | |
31.1 |
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
|
|
31.2 |
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
|
|
32 |
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act
|
|
101 |
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2011, formatted in Extensible Business Reporting Language (XBRL): (1) Consolidated Balance Sheets; (2) Consolidated Statements of Income; (3) Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income; (4) Consolidated Statements of Cash Flows; and (5) Notes to Consolidated Financial Statements (*)
|
___________
|
|
*
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
|
(1)
|
Filed on June 26, 1998, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference.
|
|
(3)
|
Incorporated herein by reference to the Registrant’s Current Report on Form 8-K filed on December 19, 2011.
|
|
(4)
(5)
|
Filed on August 12, 1987, as an exhibit to the Company’s Registration Statement on Form 8-A and incorporated herein by reference.
Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on December 23, 2008.
|
|
(6)
|
Filed on July 13, 2009 as an exhibit to the Company’s Registration Statement on Form S-1 (File No. 333-160553) and incorporated herein by reference.
|
|
(7)
|
Filed on June 28, 1993, as an exhibit to the Company’s Annual Report on Form 10-KSB and incorporated herein by reference.
|
|
(8)
|
Filed as an exhibit to the Company’s Quarterly Report on Form 10-QSB for the quarter ended September 30, 1993 and incorporated herein by reference.
|
|
(9)
|
Filed on May 24, 2006 as an exhibit to the Company’s Current Report on Form 8-K dated May 18, 2006 and incorporated herein by reference.
|
|
(10)
|
Filed on March 2, 2000, as an exhibit to the Company’s Registration Statement on Form S-8 and incorporated herein by reference
|
|
(11)
|
Filed on January 3, 2003, as an exhibit to the Company’s Registration Statement on Form S-8 and incorporated herein by reference.
|
|
(12)
|
Filed on August 22, 2006, as an exhibit to the Company’s Registration Statement on Form S-8 (Registration Statement No. 333-136813) and incorporated herein by reference.
|
|
(13)
|
Filed on November 12, 2008, as an exhibit to the Company’s Registration Statement on Form S-8 and incorporated herein by reference.
|
|
(14)
|
Filed on June 18, 2004, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference.
|
|
(15)
|
Filed on May 24, 2006 as an exhibit to the Current Report on Form 8-K and incorporated herein by reference.
|
|
(16)
|
Filed on June 29, 2006, as an exhibit to the Company’s Annual Report on Form 10-K and incorporated herein by reference.
|
SECURITY FEDERAL CORPORATION
|
|
Date: February 13, 2012
|
/s/ J. Chris Verenes |
J. Chris Verenes
|
|
President & Chief Executive Officer
|
|
Duly Authorized Representative
|
|
Date: February 13, 2012 | /s/ Roy G. Lindburg |
Roy G. Lindburg
|
|
CFO
|
|
Duly Authorized Representative |
|
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2011, formatted in Extensible Business Reporting Language (XBRL): (1) Consolidated Balance Sheets; (2) Consolidated Statements of Income; (3) Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income; (4) Consolidated Statements of Cash Flows; and (5) Notes to Consolidated Financial Statements
|
|
Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Security Federal Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ J. Chris Verenes |
J. Chris Verenes
|
|
President & Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Security Federal Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Roy G. Lindburg | |
Roy G. Lindburg
|
|
Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the Company’s financial condition and results of operations as of the dates and for the periods presented in the financial statements included in the Report.
|
/s/ J. Chris Verenes | /s/ Roy G. Lindburg | |
J. Chris Verenes
|
Roy G. Lindburg
|
|
President & Chief Executive Officer
|
Chief Financial Officer
|
Critical Accounting Policies
|
3 Months Ended |
---|---|
Dec. 31, 2011
|
|
Critical Accounting Policies | |
Critical Accounting Policies | 3. Critical Accounting Policies
The Company has adopted various accounting policies, which govern the application of accounting principles generally accepted in the United States in the preparation of our financial statements. Our significant accounting policies are described in the footnotes to the audited consolidated financial statements at March 31, 2011 included in our 2011 Annual Report to Stockholders, which was filed as an exhibit to our 2011 10-K. Certain accounting policies involve significant judgments and assumptions by management, which have a material impact on the carrying value of certain assets and liabilities. We consider these accounting policies to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances. Because of the nature of the judgments and assumptions we make, actual results could differ from these judgments and estimates which could have a material impact on our carrying values of assets and liabilities and our results of operations.
The Company believes the allowance for loan losses is a critical accounting policy that requires the most significant judgments and estimates used in preparation of the consolidated financial statements. The Company provides for loan losses using the allowance method. Accordingly, all loan losses are charged to the related allowance and all recoveries are credited to the allowance for loan losses.
Additions to the allowance for loan losses are provided by charges to operations based on various factors, which, in managements judgment, deserve current recognition in estimating possible losses. Such factors considered by management include the fair value of the underlying collateral, stated guarantees by the borrower (if applicable), the borrowers ability to repay from other economic resources, growth and composition of the loan portfolio, the relationship of the allowance for loan losses to the outstanding loans, loss experience, delinquency trends, and general economic conditions. Management evaluates the carrying value of the loans periodically and the allowance is adjusted accordingly.
While management uses the best information available to make evaluations, future adjustments may be necessary if economic conditions differ substantially from the assumptions used in making these evaluations. The allowance for loan losses is subject to periodic evaluations by various authorities and may be subject to adjustments based upon the information that is available at the time of their examination.
The Company values impaired loans at the loans fair value if it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement at the present value of expected cash flows, the market price of the loan, if available, or the value of the underlying collateral. Expected cash flows are required to be discounted at the loans effective interest rate. When the ultimate collectibility of an impaired loans principal is in doubt, wholly or partially, all cash receipts are applied to principal. When this doubt does not exist, cash receipts are applied under the contractual terms of the loan agreement first to interest and then to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to interest income to the extent that any interest has been foregone. Further cash receipts are recorded as recoveries of any amounts previously charged off.
The Company uses assumptions and estimates in determining income taxes payable or refundable for the current year, deferred income tax liabilities and assets for events recognized differently in its financial statements and income tax returns, and income tax expense. Determining these amounts requires analysis of certain transactions and interpretation of tax laws and regulations. The Company exercises considerable judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments and estimates are reevaluated on a continual basis as regulatory and business factors change. No assurance can be given that either the tax returns submitted by us or the income tax reported on the Consolidated Financial Statements will not be adjusted by either adverse rulings by the United States Tax Court, changes in the tax code, or assessments made by the Internal Revenue Service.
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