[ ] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
OR | |||
[X] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from April 1, 2012 to December 31, 2012 | |||
Commission File Number: 0-16120 | |||
SECURITY FEDERAL CORPORATION | |||
(Exact Name of Registrant as Specified in its Charter) | |||
South Carolina | 57-08580504 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
238 Richland Avenue West, Aiken, South Carolina | 29,801 | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant's telephone number, including area code: | (803) 641-3000 | ||
Securities registered pursuant to Section 12(b) of the Act: | None | ||
Securities registered pursuant to Section 12(g) of the Act: | Common Stock, par value $0.01 per share | ||
(Title of Class) |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company X |
1. | Portions of the Registrant's Annual Report to Stockholders for the transition Fiscal Year Ended December 31, 2012. (Part II) |
2. | Portions of the Registrant's Proxy Statement for the 2013 Annual Meeting of Stockholders. (Part III) |
• | 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 affected by deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing assets in our loan portfolio, and may result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our loan loss reserves; |
• | 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 Board of Governors of the Federal Reserve and our bank subsidiary by the Federal Deposit Insurance Corporation 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 requirements, including changes as a result of Basel III, or other rules, and any changes in rules applicable to institutions participating in the U. S. Department of Treasury Community Development Capital Initiative; |
• | our ability to attract and retain deposits; |
• | further increases in premiums for deposit insurance; |
• | our ability to control operating costs and expenses; |
• | our ability to implement our business strategies; |
• | 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 risk 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 have acquired or 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 new legislation, including the Jumpstart Our Business Startups Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the implementing regulations of these acts; |
• | 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 and preferred 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 Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; |
• | future legislative changes and our ability to comply with the requirements of the U.S. Department of Treasury Community Development Capital Initiative; and |
• | other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described elsewhere in this document. |
At December 31, | At March 31, | ||||||||||||||||||||||||||||||||||||||||
2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||
TYPE OF LOAN: | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 88,895 | 21.6 | % | $ | 90,998 | 20.4 | % | $ | 99,219 | 19.8 | % | $ | 105,170 | 17.9 | % | $ | 115,507 | 18.4 | % | $ | 116,184 | 21.7 | % | |||||||||||||||||
Owner occupied residential construction | 6,553 | 1.6 | 9,482 | 2.1 | 16,975 | 3.4 | 16,248 | 2.8 | 17,186 | 2.8 | 17,975 | 3.4 | |||||||||||||||||||||||||||||
Total residential real estate loans | 95,448 | 23.2 | 100,480 | 22.5 | 116,194 | 23.2 | 121,418 | 20.7 | 132,693 | 21.2 | 134,159 | 25.1 | |||||||||||||||||||||||||||||
Commercial business | 8,064 | 2.0 | 9,553 | 2.1 | 13,530 | 2.7 | 17,813 | 3.0 | 21,032 | 3.3 | 22,070 | 4.1 | |||||||||||||||||||||||||||||
Commercial real estate | 241,268 | 58.8 | 263,936 | 59.3 | 296,901 | 59.2 | 366,002 | 62.4 | 392,087 | 62.5 | 300,406 | 56.2 | |||||||||||||||||||||||||||||
Multi-family | 9,656 | 2.3 | 12,381 | 2.8 | 10,055 | 2.0 | 12,718 | 2.2 | 12,316 | 2.0 | 10,911 | 2.1 | |||||||||||||||||||||||||||||
258,988 | 63.1 | 285,870 | 64.2 | 320,486 | 63.9 | 396,533 | 67.6 | 425,435 | 67.8 | 333,387 | 62.4 | ||||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||||||||||
Deposit account | 942 | 0.2 | 926 | 0.2 | 869 | 0.2 | 985 | 0.2 | 757 | 0.1 | 1,569 | 0.3 | |||||||||||||||||||||||||||||
Home equity lines | 26,330 | 6.4 | 26,996 | 6.1 | 28,776 | 5.7 | 29,944 | 5.1 | 28,298 | 4.5 | 22,693 | 4.2 | |||||||||||||||||||||||||||||
Consumer first and second mortgages | 11,393 | 2.8 | 11,973 | 2.7 | 13,741 | 2.7 | 18,545 | 3.1 | 12,835 | 2.1 | 19,076 | 3.6 | |||||||||||||||||||||||||||||
Premium finance | 2,644 | 0.6 | 2,916 | 0.7 | 2,947 | 0.6 | 406 | 0.1 | 532 | 0.1 | 778 | 0.1 | |||||||||||||||||||||||||||||
Other | 15,286 | 3.7 | 15,874 | 3.6 | 18,530 | 3.7 | 18,646 | 3.2 | 26,603 | 4.2 | 22,716 | 4.3 | |||||||||||||||||||||||||||||
Total consumer loans | 56,595 | 13.7 | 58,685 | 13.3 | 64,863 | 12.9 | 68,526 | 11.7 | 69,025 | 11.0 | 66,832 | 12.5 | |||||||||||||||||||||||||||||
Total loans | 411,031 | 100.0 | % | 445,035 | 100.0 | % | 501,543 | 100.0 | % | 586,477 | 100.0 | % | 627,153 | 100.0 | % | 534,378 | 100.0 | % | |||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||
Loans in process | 2,002 | 1,887 | 4,580 | 5,620 | 5,602 | 8,064 | |||||||||||||||||||||||||||||||||||
Deferred fees and discount | 5 | 22 | (10 | ) | 151 | 279 | 315 | ||||||||||||||||||||||||||||||||||
Allowance for loan losses | 11,318 | 14,615 | 12,502 | 12,307 | 10,182 | 8,067 | |||||||||||||||||||||||||||||||||||
Total loans receivable | $ | 397,706 | $ | 428,511 | $ | 484,471 | $ | 568,399 | $ | 611,090 | $ | 517,932 |
At December 31, | At March 31, | ||||||||||||||||||||||||||||||||||||||||
2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||
TYPE OF LOAN: | |||||||||||||||||||||||||||||||||||||||||
Fixed rate loans | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 15,479 | 3.8% | $ | 13,511 | 3.0 | % | $ | 15,435 | 3.1 | % | $ | 11,488 | 2.0 | % | $ | 13,738 | 2.2 | % | $ | 12,036 | 2.3 | % | ||||||||||||||||||
Commercial business and commercial real estate | 208,604 | 50.7 | 226,407 | 50.9 | 251,766 | 50.2 | 280,702 | 47.9 | 239,076 | 38.1 | 154,558 | 28.9 | |||||||||||||||||||||||||||||
Consumer | 24,503 | 6.0 | 25,704 | 5.8 | 28,786 | 5.7 | 30,223 | 5.1 | 33,881 | 5.4 | 37,026 | 6.9 | |||||||||||||||||||||||||||||
Total fixed rate loans | 248,586 | 60.5 | 265,622 | 59.7 | 295,987 | 59.0 | 322,413 | 55.0 | 286,695 | 45.7 | 203,620 | 38.1 | |||||||||||||||||||||||||||||
Adjustable rate loans | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | 79,969 | 19.5 | 86,969 | 19.5 | 100,759 | 20.1 | 109,930 | 18.7 | 118,955 | 19.0 | 122,123 | 22.9 | |||||||||||||||||||||||||||||
Commercial business and commercial real estate | 50,384 | 12.2 | 59,463 | 13.4 | 68,720 | 13.7 | 115,831 | 19.8 | 186,359 | 29.7 | 178,829 | 33.4 | |||||||||||||||||||||||||||||
Consumer | 32,092 | 7.8 | 32,981 | 7.4 | 36,077 | 7.2 | 38,303 | 6.5 | 35,144 | 5.6 | 29,806 | 5.6 | |||||||||||||||||||||||||||||
Total adjustable rate loans | 162,445 | 39.5 | 179,413 | 40.3 | 205,556 | 41.0 | 264,064 | 45.0 | 340,458 | 54.3 | 330,758 | 61.9 | |||||||||||||||||||||||||||||
Total loans | 411,031 | 100.0 | % | 445,035 | 100.0 | % | 501,543 | 100.0 | % | 586,477 | 100.0 | % | 627,153 | 100.0 | % | 534,378 | 100.0 | % | |||||||||||||||||||||||
Less | |||||||||||||||||||||||||||||||||||||||||
Loans in process | 2,002 | 1,887 | 4,580 | 5,620 | 5,602 | 8,064 | |||||||||||||||||||||||||||||||||||
Deferred fees and discounts | 5 | 22 | (10 | ) | 151 | 279 | 315 | ||||||||||||||||||||||||||||||||||
Allowance for loan losses | 11,318 | 14,615 | 12,502 | 12,307 | 10,182 | 8,067 | |||||||||||||||||||||||||||||||||||
Total loans receivable | $ | 397,706 | $ | 428,511 | $ | 484,471 | $ | 568,399 | $ | 611,090 | $ | 517,932 |
At December 31, 2012 | |||||||||||||||||||||||
Residential Real Estate | Residential/ Real Estate Construction Loans | Commercial Construction and Acquisition and Development Loans | Consumer | Commercial Business and Commercial Real Estate | Total | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Six months or less (1) | $ | 4,907 | $ | 7,226 | $ | 5,743 | $ | 10,069 | $ | 43,497 | $ | 71,442 | |||||||||||
Over six months to one year | 58 | 5,640 | 3,891 | 1,548 | 56,077 | 67,214 | |||||||||||||||||
Over one year to three years | 293 | 1,966 | 3,311 | 6,252 | 65,389 | 77,211 | |||||||||||||||||
Over three to five years | 248 | 101 | — | 5,125 | 35,771 | 41,245 | |||||||||||||||||
Over five to ten years | 1,321 | — | — | 7,250 | 14,972 | 23,543 | |||||||||||||||||
Over ten years | 82,068 | — | 1,790 | 26,351 | 18,165 | 128,374 | |||||||||||||||||
Total (2) | $ | 88,895 | $ | 14,933 | $ | 14,735 | $ | 56,595 | $ | 233,871 | $ | 409,029 |
(1) | Includes demand loans, loans having no stated maturity, overdraft loans and equity line of credit loans. |
(2) | Loan amounts are net of undisbursed funds for loans in process of $2.0 million. |
Nine Months Ended December 31, | Years Ended March 31, | ||||||||||||||||||||||
2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Originated/ Renewed: | |||||||||||||||||||||||
Adjustable rate - residential real estate | $ | 6,986 | $ | 17,051 | $ | 26,539 | $ | 27,644 | $ | 34,571 | $ | 47,432 | |||||||||||
Fixed rate - residential real estate (1) | 24,136 | 37,862 | 74,776 | 65,229 | 48,689 | 39,268 | |||||||||||||||||
Consumer | 7,315 | 12,134 | 12,381 | 19,450 | 30,366 | 31,663 | |||||||||||||||||
Commercial business and commercial real estate | 113,629 | 192,809 | 200,459 | 289,246 | 350,505 | 311,839 | |||||||||||||||||
Total consumer/commercial business real estate | 120,944 | 204,943 | 212,840 | 308,696 | 380,871 | 343,502 | |||||||||||||||||
Total loans originated | 152,066 | 259,856 | 314,155 | 401,569 | 464,131 | 430,202 | |||||||||||||||||
Purchased | — | — | — | — | — | 15,618 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Sold: | |||||||||||||||||||||||
Fixed rate - residential real estate | 22,037 | 40,356 | 73,971 | 67,779 | 45,273 | 38,502 | |||||||||||||||||
Adjustable rate- residential real estate | 725 | — | — | — | — | — | |||||||||||||||||
Fixed rate - commercial real estate | 996 | — | — | — | — | 4,695 | |||||||||||||||||
Adjustable rate - commercial real estate | — | — | — | — | — | 4,000 | |||||||||||||||||
Principal repayments | 162,312 | 276,007 | 325,119 | 374,466 | 326,083 | 315,108 | |||||||||||||||||
Increase (decrease) in other items, net | (3,199 | ) | (547 | ) | (1,007 | ) | 2,015 | (383 | ) | 1,622 | |||||||||||||
Net increase (decrease) | $ | (30,805 | ) | $ | (55,960 | ) | $ | (83,928 | ) | $ | (42,691 | ) | $ | 93,158 | $ | 81,893 |
(1) | Includes newly originated fixed rate loans held for sale and construction/permanent loans converted to fixed rate loans and sold. |
At or For the Nine Months Ended December 31, | At or For the Year Ended March 31, | ||||||||||||||
2012 | 2012 | 2011 | 2010 | ||||||||||||
(Dollars in Thousands) | |||||||||||||||
Net deferred mortgage loan origination fees earned during the period (1) | $ | 37 | $ | 72 | $ | 90 | $ | 88 | |||||||
Mortgage loan origination fees earned as a percentage of total portfolio mortgage loans originated during the period | 0.5 | % | 0.4 | % | 0.3 | % | 0.3 | % | |||||||
Net deferred mortgage loan origination fees in loan portfolio at end of period | $ | 33 | $ | 47 | $ | 77 | $ | 86 |
(1) | Includes amounts amortized to interest income as yield adjustments; does not include fees earned on loans sold. |
Aiken County | Midlands, SC | Augusta, GA | Other | Total | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Commercial real estate | $ | 83,021 | $ | 37,674 | $ | 42,982 | $ | 77,591 | $ | 241,268 | |||||||||
Multi-family | 2,204 | 1,507 | 2,962 | 2,983 | 9,656 | ||||||||||||||
Commercial business | 3,396 | 1,224 | 1,995 | 1,449 | 8,064 | ||||||||||||||
Total | $ | 88,621 | $ | 40,405 | $ | 47,939 | $ | 82,023 | $ | 258,988 |
Real Estate | Non-Real Estate | ||||||||||||||||||||||||||||||
Residential | Commercial | Consumer | Commercial Business | ||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | Number | Amount | Total | |||||||||||||||||||||||
Loans delinquent for: | (Dollars in Thousands, number of loans are actual) | ||||||||||||||||||||||||||||||
30 - 59 days | — | $ | — | 26 | $ | 2,432 | 60 | $ | 1,863 | 8 | $ | 445 | $ | 4,740 | |||||||||||||||||
60 - 89 days | 16 | 1,795 | 8 | 4,852 | 19 | 212 | 3 | 36 | 6,895 | ||||||||||||||||||||||
90 days and over | 26 | 3,758 | 51 | 13,913 | 20 | 646 | 3 | 87 | 18,404 | ||||||||||||||||||||||
Total delinquent loans | 42 | $ | 5,553 | 85 | $ | 21,197 | 99 | $ | 2,721 | 14 | $ | 568 | $ | 30,039 |
At December 31, | At March 31, | ||||||||||||||||||||||
2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Loans Delinquent 60 to 89 Days: | |||||||||||||||||||||||
Residential | $ | 1,795 | $ | 742 | $ | — | $ | 559 | $ | 621 | $ | 94 | |||||||||||
Consumer | 212 | 352 | 197 | 925 | 124 | 54 | |||||||||||||||||
Commercial business | 36 | 209 | 133 | 1 | 29 | 8 | |||||||||||||||||
Commercial real estate | 4,852 | 4,684 | 2,709 | 2,724 | 3,560 | 1,031 | |||||||||||||||||
Total | $ | 6,895 | $ | 5,987 | $ | 3,039 | $ | 4,209 | $ | 4,334 | $ | 1,187 | |||||||||||
Total as a percentage of total assets | 0.77 | % | 0.65 | % | 0.33 | % | 0.44 | % | 0.44 | % | 0.14 | % | |||||||||||
Non-Accruing Loans Delinquent 90 Days or More: | |||||||||||||||||||||||
Residential | $ | 3,758 | $ | 3,639 | $ | 1,810 | $ | 4,344 | $ | 1,112 | $ | 609 | |||||||||||
Consumer | 646 | 620 | 1,194 | 703 | 956 | 416 | |||||||||||||||||
Commercial business | 87 | 21 | 172 | 699 | 2,808 | 3,826 | |||||||||||||||||
Commercial real estate | 13,913 | 18,378 | 9,337 | 25,480 | 8,044 | 1,168 | |||||||||||||||||
Total | $ | 18,404 | $ | 22,658 | $ | 12,513 | $ | 31,226 | $ | 12,920 | $ | 6,019 | |||||||||||
Total as a percentage of total assets | 2.07 | % | 2.45 | % | 1.34 | % | 3.27 | % | 1.31 | % | 0.72 | % | |||||||||||
Troubled debt restructurings | $ | 10,410 | $ | 18,029 | $ | 12,197 | $ | 336 | $ | 652 | $ | 187 | |||||||||||
Repossessed assets | $ | 6,754 | $ | 14,160 | $ | 14,434 | $ | 10,773 | $ | 1,985 | $ | 767 | |||||||||||
Allowance for loan losses | $ | 11,318 | $ | 14,615 | $ | 12,502 | $ | 12,307 | $ | 10,182 | $ | 8,067 |
At December 31, | At March 31, | ||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 14,615 | $ | 12,502 | $ | 12,502 | $ | 12,307 | $ | 10,182 | $ | 8,067 | $ | 7,297 | |||||||||||||
Provision for loan losses | 1,975 | 6,700 | 8,650 | 7,800 | 8,155 | 2,825 | 895 | ||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||
Residential real estate | 647 | 298 | 564 | 1,010 | 283 | 37 | 15 | ||||||||||||||||||||
Commercial business and commercial real estate | 6,488 | 4,539 | 4,830 | 6,524 | 5,380 | 370 | 146 | ||||||||||||||||||||
Consumer | 287 | 189 | 1,250 | 583 | 405 | 338 | 89 | ||||||||||||||||||||
Total charge-offs | 7,422 | 5,026 | 6,644 | 8,117 | 6,068 | 745 | 250 | ||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||
Residential real estate | 57 | — | — | 125 | 3 | — | 1 | ||||||||||||||||||||
Commercial business and commercial real estate | 2,075 | 50 | 51 | 318 | 6 | 15 | 83 | ||||||||||||||||||||
Consumer | 18 | 35 | 56 | 68 | 29 | 20 | 41 | ||||||||||||||||||||
Total recoveries | 2,150 | 85 | 107 | 511 | 38 | 35 | 125 | ||||||||||||||||||||
Balance at end of period | $ | 11,318 | $ | 14,261 | $ | 14,615 | $ | 12,502 | $ | 12,307 | $ | 10,182 | $ | 8,067 | |||||||||||||
Ratio of net charge-offs during the period to average loans outstanding during the period (1) | 1.72 | % | 1.41 | % | 1.43 | % | 1.42 | % | 1.01 | % | 0.12 | % | 0.03 | % |
At December 31, | At March 31, | ||||||||||||||||||||||||||||||||||||||||
2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||
Amount | % of Loans in Each Cate-gory to Total Loans | Amount | % of Loans in Each Cate-gory to Total Loans | Amount | % of Loans in Each Cate-gory to Total Loans | Amount | % of Loans in Each Cate-gory to Total Loans | Amount | % of Loans in Each Cate-gory to Total Loans | Amount | % of Loans in Each Cate-gory to Total Loans | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||
Residential | $ | 1,522 | 23.2 | % | $ | 1,929 | 22.6 | % | $ | 1,703 | 23.2 | % | $ | 2,044 | 20.7 | % | $ | 712 | 21.2 | % | $ | 665 | 25.1 | % | |||||||||||||||||
Consumer | 1,001 | 13.7 | 1,498 | 13.2 | 1,122 | 12.9 | 1,039 | 11.7 | 3,659 | 11.0 | 3,712 | 12.5 | |||||||||||||||||||||||||||||
Commercial business | 619 | 2.0 | 645 | 2.1 | 924 | 2.7 | 714 | 3.0 | 1,571 | 3.3 | 244 | 4.1 | |||||||||||||||||||||||||||||
Commercial real estate | 8,176 | 61.1 | 10,543 | 62.1 | 8,753 | 61.2 | 8,510 | 64.6 | 4,240 | 64.5 | 3,446 | 58.3 | |||||||||||||||||||||||||||||
Total | $ | 11,318 | 100.0 | % | $ | 14,615 | 100.0 | % | $ | 12,502 | 100.0 | % | $ | 12,307 | 100.0 | % | $ | 10,182 | 100.0 | % | $ | 8,067 | 100.0 | % |
At December 31, | At March 31, | ||||||||||||||
2012 | 2012 | 2011 | 2010 | ||||||||||||
(In Thousands) | |||||||||||||||
Interest bearing deposit at FHLB | $ | 226 | $ | 577 | $ | 268 | $ | 167 | |||||||
Certificates of deposits at a financial institutions | 1,729 | 1,727 | 100 | — | |||||||||||
Total | $ | 1,955 | $ | 2,304 | $ | 368 | $ | 167 | |||||||
Investment Securities: | |||||||||||||||
Available for Sale: | |||||||||||||||
FHLB securities | $ | 6,165 | $ | 2,699 | $ | 14,209 | $ | 9,370 | |||||||
Federal Farm Credit Bank securities | — | — | 2,007 | 4,209 | |||||||||||
Fannie Mae bonds | — | — | 7,730 | 4,965 | |||||||||||
Freddie Mac bonds | — | 2,922 | 3,931 | 998 | |||||||||||
Small Business Administration bonds | 96,462 | 86,279 | 64,710 | 37,186 | |||||||||||
Taxable municipal bonds | — | — | 4,472 | 3,226 | |||||||||||
Tax exempt municipal bonds | 37,482 | 24,126 | 2,035 | — | |||||||||||
Equity securities | 75 | 75 | 79 | 72 | |||||||||||
Total securities available for sale | 140,184 | 116,101 | 99,173 | 60,026 | |||||||||||
Held to Maturity: | |||||||||||||||
FHLB securities | 7,996 | 11,555 | 10,040 | 4,000 | |||||||||||
Federal Farm Credit Bank securities | 6,796 | 1,999 | — | — | |||||||||||
Fannie Mae bonds | 2,022 | 2,992 | — | — | |||||||||||
Freddie Mac bonds | 1,998 | 3,991 | — | — | |||||||||||
Small Business Administration bonds | 5,866 | 3,251 | 3,856 | 4,482 | |||||||||||
Equity securities | 155 | 155 | 155 | 155 | |||||||||||
Total securities held to maturity | 24,833 | 23,943 | 14,051 | 8,637 | |||||||||||
Total securities (1) | 165,017 | 140,044 | 113,592 | 68,663 | |||||||||||
FHLB stock | 6,179 | 8,471 | 11,267 | 12,624 | |||||||||||
Total securities and FHLB stock (1) | $ | 171,196 | $ | 148,515 | $ | 124,859 | $ | 81,287 |
Maturing or Repricing | |||||||||||||||||||||||||||
After One But | After Five But | ||||||||||||||||||||||||||
Within One Year | Within Five Years | Within Ten Years | After Ten Years | ||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
U.S. Government sponsored enterprises | $ | 4,998 | 4.06 | % | $ | 19,930 | 1.57 | % | $ | — | — | % | $ | — | — | % | |||||||||||
Small Business Administration bonds | 66,077 | 1.98 | 5,536 | 3.52 | 15,466 | 2.89 | 12,939 | 3.83 | |||||||||||||||||||
Tax exempt municipal bonds | — | — | 3,274 | 3.45 | 29,266 | 3.82 | 3,232 | 5.55 | |||||||||||||||||||
FHLB stock (1) | 6,179 | 2.43 | — | — | — | — | — | — | |||||||||||||||||||
Other equity securities | 258 | 1.29 | — | — | — | — | — | — | |||||||||||||||||||
Total (2) | $ | 77,512 | 2.15 | % | $ | 28,740 | 2.16 | % | $ | 44,732 | 3.50 | % | $ | 16,171 | 4.18 | % |
At December 31, | At March 31, | ||||||||||||||
2012 | 2012 | 2011 | 2010 | ||||||||||||
(In Thousands) | |||||||||||||||
Available for sale: | |||||||||||||||
Freddie Mac | $ | 28,560 | $ | 41,047 | $ | 47,452 | $ | 46,248 | |||||||
Fannie Mae | 45,002 | 47,510 | 44,114 | 53,576 | |||||||||||
Ginnie Mae | 141,170 | 149,297 | 148,515 | 132,411 | |||||||||||
Total | $ | 214,732 | $ | 237,854 | $ | 240,081 | $ | 232,235 | |||||||
Held to maturity: | |||||||||||||||
Freddie Mac | 4,060 | $ | 1,548 | $ | 2,581 | $ | 4,168 | ||||||||
Fannie Mae | — | — | — | 388 | |||||||||||
Ginnie Mae | 47,179 | 42,185 | 16,533 | 5,593 | |||||||||||
Total | $ | 51,239 | $ | 43,733 | $ | 19,114 | $ | 10,149 |
The Earliest of Maturing or Repricing | At December 31, 2012 | |||||||||||||||||||||||||||||||||
Less Than 1 Year | 1 to 5 Years | 5 to 10 Years | Over Ten Years | Balance Outstanding | ||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||
Fannie Mae | $ | 1,704 | 4.58 | % | $ | 1,762 | 5.22 | % | $ | 3,299 | 2.20 | % | $ | 37,277 | 2.76 | % | $ | 44,042 | 2.89 | % | ||||||||||||||
Freddie Mac | 23 | 4.50 | 714 | 5.06 | 2,829 | 5.28 | 27,955 | 3.00 | 31,521 | 3.25 | ||||||||||||||||||||||||
Ginnie Mae | 36,714 | 1.11 | 38 | 6.00 | 14,840 | 3.75 | 130,878 | 3.13 | 182,470 | 2.77 | ||||||||||||||||||||||||
Total | $ | 38,441 | 1.26 | % | $ | 2,514 | 5.19 | % | $ | 20,968 | 3.71 | % | $ | 196,110 | 3.04 | % | $ | 258,033 | 2.85 | % |
At December 31, | At March 31, | ||||||||||||||||||||||||||
2012 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||
Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Interest Rate Range for fiscal 2012: | |||||||||||||||||||||||||||
Savings accounts 0% - 0.20% | $ | 22,411 | 3.3 | % | $ | 22,349 | 3.2 | % | $ | 20,583 | 3.0 | % | $ | 18,991 | 2.7 | % | |||||||||||
NOW and other transaction accounts 0% - 0.20% | 126,741 | 18.7 | 124,750 | 17.9 | 117,077 | 17.0 | 109,086 | 15.7 | |||||||||||||||||||
Money market funds 0.20% - 0.40% | 234,383 | 34.7 | 224,196 | 32.2 | 194,560 | 28.1 | 173,905 | 25.1 | |||||||||||||||||||
Total non-certificates | $ | 383,535 | 56.7 | % | $ | 371,295 | 53.3 | % | $ | 332,220 | 48.1 | % | $ | 301,982 | 43.5 | % | |||||||||||
Certificates: | |||||||||||||||||||||||||||
0.00-1.99% | $ | 255,423 | 37.8 | % | $ | 267,556 | 38.4 | % | $ | 239,078 | 34.6 | % | $ | 118,797 | 17.1 | % | |||||||||||
2.00-2.99% | 32,975 | 4.9 | 49,261 | 7.1 | 107,387 | 15.6 | 255,352 | 36.8 | |||||||||||||||||||
3.00-3.99% | 2,381 | 0.3 | 2,937 | 0.4 | 3,307 | 0.5 | 4,572 | 0.7 | |||||||||||||||||||
4.00-4.99% | 1,523 | 0.2 | 4,022 | 0.6 | 5,272 | 0.8 | 8,818 | 1.2 | |||||||||||||||||||
5.00-5.99% | 502 | 0.1 | 1,130 | 0.2 | 3,093 | 0.4 | 4,731 | 0.7 | |||||||||||||||||||
Total certificates | 292,804 | 43.3 | % | 324,906 | 46.7 | % | 358,137 | 51.9 | % | 392,270 | 56.5 | % | |||||||||||||||
Total deposits | $ | 676,339 | 100.0 | % | $ | 696,201 | 100.0 | % | $ | 690,357 | 100.0 | % | $ | 694,252 | 100.0 | % |
Nine Months Ended December 31, | Years Ended March 31, | ||||||||||||||
2012 | 2012 | 2011 | 2010 | ||||||||||||
(Dollars in Thousands) | |||||||||||||||
Opening balance | $ | 696,201 | $ | 690,357 | $ | 694,252 | $ | 661,714 | |||||||
Net deposits | (19,862 | ) | 5,844 | (3,895 | ) | 32,538 | |||||||||
Ending balance | 676,339 | 696,201 | 690,357 | 694,252 | |||||||||||
Net increase (decrease) | $ | (19,862 | ) | $ | 5,844 | $ | (3,895 | ) | $ | 32,538 | |||||
Percent increase (decrease) | (2.85 | )% | 0.85 | % | (0.60 | )% | 4.9 | % |
0- 1.99% | 2.00- 2.99 | 3.00- 3.99 | 4.00- 4.99 | 5.00- 5.99 | Total | ||||||||||||||||||
Certificate accounts maturing in quarter ending: | (In Thousands) | ||||||||||||||||||||||
March 31, 2013 | $ | 53,892 | $ | 809 | $ | 346 | $ | 235 | $ | — | $ | 55,282 | |||||||||||
June 30, 2013 | 45,801 | 748 | 312 | 373 | — | 47,234 | |||||||||||||||||
September 30, 2013 | 46,901 | 914 | 117 | 339 | 502 | 48,773 | |||||||||||||||||
December 31, 2013 | 29,196 | 694 | 306 | 576 | — | 30,772 | |||||||||||||||||
March 31, 2014 | 24,601 | 2,829 | 124 | — | — | 27,554 | |||||||||||||||||
June 30, 2014 | 17,818 | 883 | 207 | — | — | 18,908 | |||||||||||||||||
September 30, 2014 | 2,664 | 1,146 | 798 | — | — | 4,608 | |||||||||||||||||
December 31, 2014 | 2,364 | 1,956 | — | — | — | 4,320 | |||||||||||||||||
March 31, 2015 | 3,581 | 4,420 | 171 | — | — | 8,172 | |||||||||||||||||
June 30, 2015 | 956 | 1,789 | — | — | — | 2,745 | |||||||||||||||||
September 30, 2015 | 524 | 3,675 | — | — | — | 4,199 | |||||||||||||||||
December 31, 2015 | 3,258 | 3,799 | — | — | — | 7,057 | |||||||||||||||||
Thereafter | 23,867 | 9,313 | — | — | — | 33,180 | |||||||||||||||||
Total | $ | 255,423 | $ | 32,975 | $ | 2,381 | $ | 1,523 | $ | 502 | $ | 292,804 |
Certificates of Deposit | Savings, NOW and Money Market Accounts | ||||||
(In Thousands) | |||||||
Maturity Period | |||||||
Three months or less | $ | 24,650 | $ | 383,535 | |||
Over three through six months | 18,517 | — | |||||
Over six through twelve month | 34,168 | — | |||||
Over twelve months | 62,538 | — | |||||
Total | $ | 139,873 | $ | 383,535 |
Nine Months Ended December 31, | Years Ended March 31, | ||||||||||||||
2012 | 2012 | 2011 | 2010 | ||||||||||||
(In Thousands) | |||||||||||||||
Maximum Balance: | |||||||||||||||
FHLB advances | $ | 113,168 | $ | 141,484 | $ | 168,833 | $ | 228,997 | |||||||
Other borrowings | 10,226 | 11,669 | 12,343 | 61,337 | |||||||||||
Junior subordinated debentures | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||
Senior convertible debentures | 6,084 | 6,084 | 6,084 | 6,084 | |||||||||||
Average Balance: | |||||||||||||||
FHLB advances | $ | 110,380 | $ | 127,411 | $ | 144,008 | $ | 185,499 | |||||||
Other borrowings | 9,669 | 10,423 | 11,713 | 41,749 | |||||||||||
Junior subordinated debentures | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||
Senior convertible debentures | 6,084 | 6,084 | 6,084 | 2,017 |
At December 31, | At March 31, | ||||||||||||||
2012 | 2012 | 2011 | 2010 | ||||||||||||
(Dollars in Thousands) | |||||||||||||||
Balance: | |||||||||||||||
FHLB advances | $ | 105,257 | $ | 122,070 | $ | 138,136 | $ | 164,004 | |||||||
Other borrowings | 9,317 | 9,801 | 11,195 | 12,060 | |||||||||||
Junior subordinated debentures | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||
Senior convertible debentures | 6,084 | 6,084 | 6,084 | 6,084 | |||||||||||
Weighted Average Interest Rate at Fiscal Year End: | |||||||||||||||
FHLB advances | 3.72 | % | 3.62 | % | 3.57 | % | 3.71 | % | |||||||
Other borrowings | 0.20 | 0.25 | 0.40 | 0.80 | |||||||||||
Junior subordinated debentures | 2.01 | 2.17 | 4.45 | 4.42 | |||||||||||
Senior convertible debentures | 8.00 | 8.00 | 8.00 | 8.00 | |||||||||||
During Fiscal Year: | |||||||||||||||
FHLB advances | 3.97 | % | 3.86 | % | 3.92 | % | 3.39 | % | |||||||
Other borrowings | 0.25 | 0.37 | 0.53 | 0.60 | |||||||||||
Junior subordinated debentures | 2.17 | 3.24 | 4.53 | 4.64 | |||||||||||
Senior convertible debentures | 8.00 | 8.00 | 8.00 | 7.98 |
Age at December 31, | Position | |||||
Name | 2012 | Company | Bank | |||
J. Chris Verenes | 56 | President and Chief Executive Officer | Chief Executive Officer and Chairman of the Board | |||
Timothy W. Simmons | 67 | Chairman of the Board | — | |||
Roy G. Lindburg | 52 | Chief Financial Officer | Chief Financial Officer | |||
Frank M. Thomas, Jr. | 65 | — | President |
• | cash flow of the borrower and/or the project being financed; |
• | the changes and uncertainties as to the future value of the collateral, in the case of a collateralized loan; |
• | the duration of the loan; |
• | the character and creditworthiness of a particular borrower; and |
• | changes in economic and industry conditions. |
• | our general reserve, based on our historical default and loss experience and certain macroeconomic factors based on management's expectations of future events; |
• | our specific reserve, based on our evaluation of non-performing loans and their underlying collateral; and |
• | an unallocated reserve to provide for other credit losses inherent in our portfolio that may not have been contemplated in the other loss factors. |
• | we record interest income only on a cash basis for nonaccrual loans and any non-performing investment securities; and do not record interest income for REO; |
• | we must provide for probable loan losses through a current period charge to the provision for loan losses; |
• | non-interest expense increases when we write down the value of properties in our REO portfolio to reflect changing market values or recognize other-than-temporary impairment on non-performing investment securities; |
• | there are legal fees associated with the resolution of problem assets, as well as carrying costs, such as taxes, insurance, and maintenance fees related to our REO; and |
• | the resolution of non-performing assets requires the active involvement of management, which can distract them from more profitable activity. |
• | loan delinquencies, problem assets and foreclosures may increase; |
• | demand for our products and services may decline; |
• | collateral for loans, especially real estate, made may decline further in value, in turn reducing customers' borrowing power, reducing the value of assets and collateral associated with existing loans; and |
• | the amount of our low-cost or non-interest bearing deposits may decrease. |
Location | Owned or Leased | Lease Expiration Date | Date Facility Opened/ Acquired | Gross Square Footage | Net Book Value | |||||||
Main Office: | ||||||||||||
238 Richland Avenue, W. Aiken, South Carolina | Leased | 2016 | 2006 | 3,840 | $ | 791,000 | ||||||
Full Service Branch Offices: | ||||||||||||
100 Laurens Street, N.W. Aiken, South Carolina | Leased | 2016 | 1959 | 3,840 | 791,000 | |||||||
1705 Whiskey Road S. Aiken, South Carolina | Owned | N/A | 1980 | 10,000 | 971,000 | |||||||
313 East Martintown Road North Augusta, South Carolina | Owned | N/A | 1973 | 4,356 | 762,000 | |||||||
1665 Richland Avenue, W. Aiken, South Carolina | Owned | N/A | 1984 | 1,942 | 169,000 | |||||||
Montgomery & Canal Streets Masonic Shopping Center Graniteville, South Carolina | Leased | 2007 | 1993 (1) | 3,576 | 83,000 | |||||||
2812 Augusta Road Langley, South Carolina | Owned | N/A | 1993 (1) | 2,509 | 49,000 | |||||||
4568 Jefferson Davis Highway Clearwater, South Carolina | Owned | N/A | 2008 | 2,287 | 1,439,000 | |||||||
118 Main Street North Wagener, South Carolina | Owned | N/A | 1993 (1) | 3,600 | 124,000 | |||||||
1185 Sunset Boulevard West Columbia, South Carolina | Leased | 2015 | 2000 | 10,000 | 191,000 | |||||||
2587 Whiskey Road Aiken, South Carolina | Owned | N/A | 2006 | 4,000 | 1,335,000 | |||||||
5446 Sunset Boulevard Lexington, South Carolina | Owned (2) | N/A | 2003 | 9,200 | 1,038,000 | |||||||
1900 Assembly Street Columbia, South Carolina | Leased (3) | N/A | 2007 | 6,000 | 407,000 | |||||||
7004 Evans Town Center Evans, Georgia | Owned | N/A | 2007 | 18,000 | 4,029,000 | |||||||
Operations Center: | ||||||||||||
871 East Pine Log Road Aiken, South Carolina | Owned | N/A | 1988 | 10 | 1,073,000 | |||||||
Insurance & Marketing Offices 234 Richland Avenue, West Aiken, South Carolina | Leased | 2016 | 2006 | 1,948 | — |
(1) | Represents acquisition date. |
(2) | Security Federal has a lease on the land for this office which expires in 2018, but has options through 2063. |
(3) | Security Federal has a lease on the land for this office which expires in 2027, but has options through 2047. |
Period Ending | ||||||||||||
Index | 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | ||||||
Security Federal Corporation | $100.00 | 68.74 | 44.75 | 55.33 | 38.17 | 40.08 | ||||||
NASDAQ Composite | 100.00 | 60.02 | 87.24 | 103.08 | 102.26 | 120.42 | ||||||
SNL Bank Index | 100.00 | 57.06 | 56.47 | 63.27 | 49.00 | 66.13 |
(a) | Security Ownership of Certain Beneficial Owners. |
(b) | Security Ownership of Management. |
(c) | Changes In Control |
(d) | Equity Compensation Plan Information |
Plan category | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights | (b) Weighted-average exercise price of outstanding options, warrants and rights | (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||
Equity compensation plans approved by security holders: | ||||||
1999 Stock Option Plan | 39,400 | 23.25 | — | |||
2002 Stock Option Plan | 21,000 | 21.33 | — | |||
2006 Stock Option Plan | 8,000 | 22.96 | — | |||
2008 Equity Incentive Plan | — | — | 50,000 | |||
Equity compensation plans not approved by security holders | — | — | — | |||
Total | 68,400 | 22.63 | 50,000 |
(a)1. | Financial Statements. |
2. | Financial Statement Schedules. |
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 (including Securities Exchange Agreement B Standard Terms, attached as Exhibit A) dated September 29, 2010 between the Company and the United States Department of the Treasury (2) |
4.7 | Letter Agreement (including Securities Purchase Agreement B Standard Terms, attached as Exhibit A) dated September 29, 2010 between the Company and the United States Department of the Treasury (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 (5) |
13 | Annual Report to Stockholders |
14 | Code of Ethics (15) |
21 | Subsidiaries of Registrant |
23.0 | Consent of Elliott Davis, LLC |
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 |
32.0 | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act |
99.1 | Certification of Principal Executive Officer of Security Federal Corporation To Chief Compliance Officer Of The Troubled Asset Relief Program Pursuant to 31 CFR ' 30.15 |
99.2 | Certification of Principal Financial Officer of Security Federal Corporation To Chief Compliance Officer Of The Troubled Asset Relief Program Pursuant to 31 CFR ' 30.15 |
101.0 | The following materials from Security Federal Corporation's Annual Report on Form 10-K for the year ended March 31, 2012, formatted in Extensible Business Reporting Language (XBRL): (1) Consolidated Balance Sheets; (2) Consolidated Statements of Income; (3) Consolidated Statements of Comprehensive Income; (4)Consolidated Statements of Changes in Shareholders' Equity; (5) Consolidated Statements of Cash Flows; and (6) Notes to Consolidated Financial Statements (17) |
(1) | Filed on June 26, 1998, as an exhibit to the Company's Proxy Statement and incorporated herein by reference. |
(2) | Incorporated by reference to the Registrant's Current Report on Form 8-K filed on September 30, 2010. |
(3) | Incorporated herein by reference to the Registrant's Current Report on Form 8-K filed on January 23, 2013. |
(4) | Filed on August 12, 1987, as an exhibit to the Company's Registration Statement on Form 8-A and incorporated herein by reference. |
(5) | 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. |
(17) | 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. |
Date: March 25, 2013 | By: | /s/J. Chris Verenes |
J. Chris Verenes | ||
President, Chief Executive Officer and Director | ||
(Duly Authorized Representative) |
By: | /s/J. Chris Verenes | March 25, 2013 |
J. Chris Verenes | ||
President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
By: | /s/Roy G. Lindburg | March 25, 2013 |
Roy G. Lindburg | ||
Chief Financial Officer and Director | ||
(Principal Financial and Accounting Officer) |
By: | /s/Timothy W. Simmons | March 25, 2013 |
Timothy W. Simmons | ||
Chairman of the Board and Director |
By: | /s/Frank M. Thomas, Jr. | March 25, 2013 |
Frank M. Thomas, Jr. | ||
President of Security Federal Bank and Director of | ||
the Company and Security Federal Bank |
By: | /s/Gasper L. Toole III | March 25, 2013 |
Gasper L. Toole III | ||
Director |
By: | /s/Robert E. Alexander | March 25, 2013 |
Robert E. Alexander | ||
Director |
By: | /s/Thomas L. Moore | March 25, 2013 |
Thomas L. Moore | ||
Director |
By: | /s/William Clyburn | March 25, 2013 |
William Clyburn | ||
Director |
By: | /s/Harry O. Weeks, Jr. | March 25, 2013 |
Harry O. Weeks, Jr. | ||
Director |
By: | /s/W. Barry Adams | March 25, 2013 |
W. Barry Adams | ||
Director and Executive Vice President of Security Federal Bank |
By: | /s/Richard T. Harmon | March 25, 2013 |
Richard T. Harmon | ||
Director and Chief Lending Officer of Security Federal Bank |
13 | Annual Report to Stockholders |
21 | Subsidiaries of the Registrant |
23 | Consent of Elliott Davis, LLC |
31.1 | Certification of Chief Executive Officer of Security Federal Corporation Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2 | Certification of Chief Financial Officer of Security Federal Corporation Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32 | Certification of Chief Executive Officer and Chief Financial Officer of Security Federal Corporation Pursuant to Section 906 of the Sarbanes-Oxley Act |
99.1 | Certification of Principal Executive Officer of Security Federal Corporation To Chief Compliance Officer Of The Troubled Asset Relief Program Pursuant to 31 CFR §30.15 |
99.2 | Certification of Principal Financial Officer of Security Federal Corporation To Chief Compliance Officer Of The Troubled Asset Relief Program Pursuant to 31 CFR §30.15 |
101 | The following materials from Security Federal Corporation's Annual Report on Form 10-K for the year ended March 31, 2012, formatted in Extensible Business Reporting Language (XBRL): (1) Consolidated Balance Sheets; (2) Consolidated Statements of Income; (3) Consolidated Statements of Comprehensive Income; (4) Consolidated Statements of Changes in Shareholders' Equity; (5) Consolidated Statements of Cash Flows; and (6) Notes to Consolidated Financial Statements (17) |
At Or For The Nine Months Ended December 31, | At Or For The Year Ended March 31, | |||||||||||||||||||
2012 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Balance Sheet Data | (Dollars In Thousands, Except Per Share Data) | |||||||||||||||||||
Total Assets | $ | 890,355 | $ | 924,637 | $ | 933,544 | $ | 956,002 | $ | 984,662 | ||||||||||
Cash And Cash Equivalents | 7,904 | 9,331 | 7,836 | 8,805 | 6,562 | |||||||||||||||
Certificates Of Deposit With Other Banks | 1,729 | 1,727 | 100 | — | — | |||||||||||||||
Investment And Mortgage-Backed Securities | 430,988 | 421,631 | 372,418 | 311,046 | 314,099 | |||||||||||||||
Total Loans Receivable, Net (1) | 397,706 | 428,511 | 484,471 | 568,399 | 611,090 | |||||||||||||||
Deposits | 676,339 | 696,201 | 690,357 | 694,252 | 661,714 | |||||||||||||||
Advances From Federal Home Loan Bank | 105,257 | 122,070 | 138,136 | 164,004 | 218,998 | |||||||||||||||
Total Shareholders' Equity | 82,592 | 80,772 | 76,012 | 67,861 | 67,092 | |||||||||||||||
Income Data | ||||||||||||||||||||
Total Interest Income | $ | 24,791 | $ | 38,529 | $ | 43,742 | $ | 47,507 | $ | 48,867 | ||||||||||
Total Interest Expense | 7,460 | 12,397 | 16,095 | 20,136 | 26,321 | |||||||||||||||
Net Interest Income | 17,331 | 26,132 | 27,647 | 27,371 | 22,546 | |||||||||||||||
Provision For Loan Losses | 1,975 | 8,650 | 7,800 | 8,155 | 2,825 | |||||||||||||||
Net Interest Income After Provision For Loan Losses | 15,356 | 17,482 | 19,847 | 19,216 | 19,721 | |||||||||||||||
Non-Interest Income | 4,365 | 6,942 | 6,795 | 6,113 | 4,496 | |||||||||||||||
General And Administrative Expense | 17,062 | 20,717 | 23,841 | 22,663 | 20,499 | |||||||||||||||
Income Taxes | 704 | 1,912 | 958 | 1,060 | 1,265 | |||||||||||||||
Net Income | 1,955 | 1,795 | 1,843 | 1,605 | 2,453 | |||||||||||||||
Preferred Stock Dividends | 330 | 440 | 666 | 900 | 252 | |||||||||||||||
Accretion Of Preferred Stock To Redemption Value | — | — | 19 | 73 | 20 | |||||||||||||||
Net Income Available To Common Shareholders | $ | 1,625 | $ | 1,355 | $ | 1,158 | $ | 632 | $ | 2,181 | ||||||||||
Per Common Share Data | ||||||||||||||||||||
Net Income Per Common Share (Basic) | $ | 0.55 | $ | 0.46 | $ | 0.43 | $ | 0.26 | $ | 0.87 | ||||||||||
Cash Dividends Declared | $ | 0.24 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | ||||||||||
Other Data | ||||||||||||||||||||
Interest Rate Spread Information: | ||||||||||||||||||||
Average During Period (4) | 2.70 | % | 2.98 | % | 3.06 | % | 2.83 | % | 2.45 | % | ||||||||||
End Of Period | 3.16 | % | 3.30 | % | 3.34 | % | 3.21 | % | 2.58 | % | ||||||||||
Net Interest Margin (Net Interest Income/Average Earning Assets) (4) | 2.80 | % | 3.09 | % | 3.17 | % | 2.98 | % | 2.63 | % | ||||||||||
Average Interest-Earning Assets To Average Interest- Bearing Liabilities | 108.08 | % | 107.08 | % | 106.35 | % | 106.64 | % | 105.80 | % | ||||||||||
Common Equity To Total Assets | 6.81 | % | 6.36 | % | 5.79 | % | 5.25 | % | 5.02 | % | ||||||||||
Non-Performing Assets To Total Assets (2) | 2.83 | % | 3.98 | % | 2.89 | % | 4.39 | % | 1.51 | % | ||||||||||
Return On Assets (Ratio Of Net Income To Average Total Assets) (4) | 0.24 | % | 0.15 | % | 0.12 | % | 0.06 | % | 0.24 | % | ||||||||||
Return On Common Equity (Ratio Of Net Income To Average Common Equity) (4) | 3.62 | % | 2.35 | % | 2.17 | % | 1.27 | % | 4.72 | % | ||||||||||
Common Equity To Assets Ratio (Ratio Of Average Common Equity To Average Total Assets) | 6.69 | % | 6.22 | % | 5.62 | % | 5.09 | % | 5.10 | % | ||||||||||
Dividend Pay-Out Ratio On Common Shares(3) | 43.48 | % | 69.50 | % | 74.13 | % | 124.56 | % | 36.59 | % | ||||||||||
Number Of Full-Service Offices | 13 | 13 | 13 | 13 | 13 |
• | 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 affected by deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing assets in our loan portfolio, and may result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our loan loss reserves; |
• | 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 Board of Governors of the Federal Reserve System (“Federal Reserve”), and our bank subsidiary by the Federal Deposit Insurance Corporation 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 requirements, including changes as a result of Basel III, or other rules, and any changes in rules applicable to institutions participating in the U. S. Department of Treasury Community Development Capital Initiative; |
• | our ability to attract and retain deposits; |
• | further increases in premiums for deposit insurance; |
• | our ability to control operating costs and expenses; |
• | our ability to implement our business strategies; |
• | 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 risk 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 have acquired or 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 new legislation, including the Jumpstart Our Business Startups Act and 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 and preferred 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 Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; |
• | future legislative changes and our ability to comply with the requirements of the U.S. Department of Treasury’s Community Development Capital Initiative; and other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described elsewhere in this document. |
At December 31, 2012 | |||
(In Thousands) | |||
Within 3 Months | $ | 24,650 | |
After 3 Months, Within 6 Months | 18,517 | ||
After 6 Months, Within 12 Months | 34,168 | ||
After 12 Months | 62,538 | ||
$ | 139,873 |
At December 31, | At March 31, | ||||||
2012 | 2012 | ||||||
(Dollars In Thousands) | |||||||
Loans (1) | $ | 317,154 | $ | 267,372 | |||
Mortgage-Backed Securities: | |||||||
Held To Maturity | 3,901 | 3,488 | |||||
Available For Sale | 90,946 | 92,157 | |||||
Investment Securities: | |||||||
Held To Maturity | 5,865 | 8,715 | |||||
Available For Sale | 75,332 | 68,749 | |||||
Other Interest-Earning Assets And FHLB Stock | 6,405 | 9,048 | |||||
Total Interest Rate Sensitive Assets Repricing Within 1 Year | $ | 499,603 | $ | 449,529 | |||
Deposits | $ | 354,970 | $ | 381,351 | |||
FHLB Advances And Other Borrowed Money | 36,572 | 33,856 | |||||
Total Interest Rate Sensitive Liabilities Repricing Within 1 Year | $ | 391,542 | $ | 415,207 | |||
Gap | $ | 108,061 | $ | 34,322 | |||
Interest Rate Sensitive Assets/Interest Rate Sensitive Liabilities | 127.6 | % | 108.30 | % | |||
Gap As A Percent Of Total Assets | 12.1 | % | 3.7 | % |
(1) | LOANS ARE NET OF UNDISBURSED FUNDS AND LOANS IN PROCESS. |
Three Months Or Less | Over 3 –12 Months | Over 1 – 3 Years | Over 3 – 5 Years | Over 5 – 10 Years | Over 10 Years | Total | ||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||
Interest-Earnings Assets | ||||||||||||||||||||||||||||
Loans (1) | $ | 139,386 | $ | 177,768 | $ | 65,129 | $ | 17,079 | $ | 6,728 | $ | 2,939 | $ | 409,029 | ||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||||||
Held To Maturity, At Cost | 650 | 3,251 | 6,694 | 9,927 | 25,177 | 5,540 | 51,239 | |||||||||||||||||||||
Available For Sale, At Fair Value | 50,913 | 40,033 | 50,750 | 36,364 | 34,203 | 2,469 | 214,732 | |||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
Held To Maturity, At Cost | 459 | 5,406 | 15,159 | 3,201 | 422 | 186 | 24,833 | |||||||||||||||||||||
Available For Sale, At Fair Value | 69,633 | 5,699 | 17,247 | 10,015 | 33,525 | 4,065 | 140,184 | |||||||||||||||||||||
FHLB Stock, At Cost | — | 6,179 | — | — | — | — | 6,179 | |||||||||||||||||||||
Other Interest-Earning Assets | 226 | — | 1,729 | — | — | — | 1,955 | |||||||||||||||||||||
Total Interest-Earning Assets | $ | 261,267 | $ | 238,336 | $ | 156,708 | $ | 76,586 | $ | 100,055 | $ | 15,199 | $ | 848,151 | ||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Certificate Accounts | $ | 55,283 | $ | 126,779 | $ | 77,561 | $ | 33,181 | $ | — | $ | — | $ | 292,804 | ||||||||||||||
NOW Accounts | 4,019 | 12,058 | 64,310 | — | — | — | 80,387 | |||||||||||||||||||||
Money Market Accounts | 37,501 | 114,848 | 82,034 | — | — | — | 234,383 | |||||||||||||||||||||
Statement Savings Accounts | 1,120 | 3,362 | 17,929 | — | — | — | 22,411 | |||||||||||||||||||||
Borrowings (2) | 16,572 | 20,000 | 45,257 | 32,900 | 5,000 | 6,084 | 125,813 | |||||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 114,495 | $ | 277,047 | $ | 287,091 | $ | 66,081 | $ | 5,000 | $ | 6,084 | $ | 755,798 | ||||||||||||||
Current Period Gap | $ | 146,772 | $ | (38,711 | ) | $ | (130,383 | ) | $ | 10,505 | $ | 95,055 | $ | 9,115 | $ | 92,353 | ||||||||||||
Cumulative Gap | $ | 146,772 | $ | 108,061 | $ | (22,322 | ) | $ | (11,817 | ) | $ | 83,238 | $ | 92,353 | $ | 92,353 | ||||||||||||
Cumulative Gap As A Percent Of Total Assets | 16.5 | % | 12.1 | % | (2.5 | )% | (1.3 | )% | 9.3 | % | 10.4 | % | 10.4 | % |
(1) | LOANS ARE NET OF UNDISBURSED FUNDS AND LOANS IN PROCESS. |
(2) | CALLABLE SECURITIES AND FHLB ADVANCES ARE SHOWN AT THEIR LIKELY CALL DATES BASED ON MANAGEMENT’S ESTIMATES AT DECEMBER 31, 2012. |
At December 31, 2012 | At March 31, 2012 | $ Increase | % Increase | ||||||||||||||||||
Amount | Percent (1) | Amount | Percent (1) | (Decrease) | (Decrease) | ||||||||||||||||
Loans 90 Days Or More Past Due Or Non-Accrual Loans: | |||||||||||||||||||||
Residential Real Estate | $ | 3,757,801 | 0.9 | % | $ | 3,638,929 | 0.8 | % | $ | 118,872 | 3.3 | % | |||||||||
Commercial Business | 86,991 | — | 20,808 | — | 66,183 | 318.1 | |||||||||||||||
Commercial Real Estate | 13,913,190 | 3.4 | 18,378,165 | 4.2 | (4,464,975 | ) | (24.3 | ) | |||||||||||||
Consumer | 646,136 | 0.2 | 620,358 | 0.1 | 25,778 | 4.2 | |||||||||||||||
Total Non-Performing Loans | 18,404,118 | 4.5 | % | 22,658,260 | 5.1 | % | (4,254,142 | ) | (18.8 | )% | |||||||||||
Other Non-Performing Assets | |||||||||||||||||||||
Real Estate Owned | 6,754,425 | 1.7 | 14,160,099 | 3.2 | (7,405,674 | ) | (52.3 | ) | |||||||||||||
Total Other Non-Performing Assets | 6,754,425 | 1.7 | % | 14,160,099 | 3.2 | % | (7,405,674 | ) | (52.3 | )% | |||||||||||
Total Non-Performing Assets | $ | 25,158,543 | 6.2 | % | $ | 36,818,359 | 8.3 | % | $ | (11,659,816 | ) | (31.7 | )% | ||||||||
Total Non-Performing Assets As A Percentage Of Total Assets | 2.8 | % | 4.0 | % |
Nine Months Ended December 31, 2012 Compared To Nine Months Ended December 31, 2011 | Fiscal Year Ended March 31, 2012 Compared To Fiscal Year Ended March 31, 2011 | |||||||||||||||||||||||
Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||
Loans: (1) | ||||||||||||||||||||||||
Mortgage Loans | $ | (466 | ) | $ | (266 | ) | $ | (732 | ) | $ | (1,005 | ) | $ | 150 | $ | (855 | ) | |||||||
Other Loans | (2,834 | ) | (1,145 | ) | (3,979 | ) | (3,562 | ) | (360 | ) | (3,922 | ) | ||||||||||||
Total Loans | (3,300 | ) | (1,411 | ) | (4,711 | ) | (4,567 | ) | (210 | ) | (4,777 | ) | ||||||||||||
Mortgage-Backed Securities (2) | 350 | (1,691 | ) | (1,341 | ) | 967 | (1,611 | ) | (644 | ) | ||||||||||||||
Investments (2)(3) | 529 | (651 | ) | (122 | ) | 644 | (267 | ) | 377 | |||||||||||||||
Other Interest-Earning Assets | 1 | 6 | 7 | 1 | (3 | ) | (2 | ) | ||||||||||||||||
Total Interest-Earning Assets | $ | (2,420 | ) | $ | (3,747 | ) | $ | (6,167 | ) | $ | (2,955 | ) | $ | (2,091 | ) | $ | (5,046 | ) | ||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Certificate Accounts | $ | (447 | ) | $ | (992 | ) | $ | (1,439 | ) | $ | (849 | ) | $ | (1,657 | ) | $ | (2,506 | ) | ||||||
NOW Accounts | 9 | (66 | ) | (57 | ) | 13 | (112 | ) | (99 | ) | ||||||||||||||
Money Market Accounts | 154 | (779 | ) | (625 | ) | 305 | (570 | ) | (265 | ) | ||||||||||||||
Savings Accounts | 3 | (5 | ) | (2 | ) | 4 | (17 | ) | (13 | ) | ||||||||||||||
Total Deposits | (281 | ) | (1,842 | ) | (2,123 | ) | (527 | ) | (2,356 | ) | (2,883 | ) | ||||||||||||
Borrowings | (783 | ) | 76 | (707 | ) | (669 | ) | (146 | ) | (815 | ) | |||||||||||||
Total Interest-Bearing Liabilities | (1,064 | ) | (1,766 | ) | (2,830 | ) | (1,196 | ) | (2,502 | ) | (3,698 | ) | ||||||||||||
Effect On Net Interest Income | $ | (1,356 | ) | $ | (1,981 | ) | $ | (3,337 | ) | $ | (1,759 | ) | $ | 411 | $ | (1,348 | ) |
(2) | SECURITIES AVAILABLE FOR SALE ARE COMPUTED USING THEIR HISTORICAL COST. |
(3) | TAX EQUIVALENT BASIS IS CALCULATED USING AN EFEECTIVE TAX RATE OF 34% AND WAS $260,766 AND $172,205, RESPECTIVELY FOR THE NINE MONTHS ENDED DECEMBER 31, 2012 AND THE YEAR ENDED MARCH 31, 2012. |
Yield/ Rate | Averages For The Nine Months Ended December 31, | |||||||||||||||||||||||
At | 2012 | 2011 | ||||||||||||||||||||||
December 31, 2012 | Average Balance | Interest | Annualized Yield/Rate | Average Balance | Interest | Annualized Yield/Rate | ||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||
Mortgage Loans | 4.83 | % | $ | 95,887 | $ | 3,392 | 4.72 | % | $ | 105,552 | $ | 3,941 | 4.98 | % | ||||||||||
Other Loans | 6.30 | % | 315,615 | 14,515 | 6.13 | % | 361,321 | 17,500 | 6.46 | % | ||||||||||||||
Total Loans (1) | 5.96 | % | 411,502 | 17,907 | 5.80 | % | 466,873 | 21,441 | 6.12 | % | ||||||||||||||
Mortgage-Backed Securities(2) | 2.85 | % | 267,026 | 4,883 | 2.44 | % | 255,238 | 5,889 | 3.08 | % | ||||||||||||||
Investments (2) (3) | 2.71 | % | 152,726 | 2,255 | 1.97 | % | 128,551 | 2,347 | 2.43 | % | ||||||||||||||
Other Interest-Earning Assets | 0.40 | % | 5,165 | 6 | 0.17 | % | 4,178 | 2 | 0.05 | % | ||||||||||||||
Total Interest-Earning Assets | 4.32 | % | $ | 836,419 | $ | 25,051 | 3.99 | % | $ | 854,840 | $ | 29,679 | 4.63 | % | ||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||
Certificate Accounts | 1.11 | % | $ | 308,059 | $ | 2,838 | 1.23 | % | $ | 338,808 | $ | 3,917 | 1.54 | % | ||||||||||
NOW Accounts | 0.10 | % | 78,919 | 64 | 0.11 | % | 73,161 | 106 | 0.19 | % | ||||||||||||||
Money Market Accounts | 0.38 | % | 233,398 | 769 | 0.44 | % | 211,902 | 1,239 | 0.78 | % | ||||||||||||||
Savings Accounts | 0.20 | % | 22,217 | 33 | 0.20 | % | 20,784 | 35 | 0.22 | % | ||||||||||||||
Total Interest-Bearing Accounts | 0.68 | % | 642,593 | 3,704 | 0.77 | % | 644,655 | 5,297 | 1.10 | % | ||||||||||||||
Other Borrowings | 0.20 | % | 9,669 | 18 | 0.25 | % | 10,746 | 31 | 0.39 | % | ||||||||||||||
Junior Subordinated Debt | 2.01 | % | 5,155 | 84 | 2.17 | % | 5,155 | 138 | 3.57 | % | ||||||||||||||
Senior Convertible Debt | 8.00 | % | 6,084 | 365 | 8.00 | % | 6,084 | 365 | 8.00 | % | ||||||||||||||
FHLB Advances | 3.72 | % | 110,380 | 3,289 | 3.97 | % | 130,112 | 3,752 | 3.85 | % | ||||||||||||||
Total Interest-Bearing Liabilities | 1.16 | % | $ | 773,881 | $ | 7,460 | 1.29 | % | $ | 796,752 | $ | 9,583 | 1.60 | % | ||||||||||
Net Interest Income | $ | 17,591 | $ | 20,096 | ||||||||||||||||||||
Interest Rate Spread | 3.16 | % | 2.70 | % | 3.03 | % | ||||||||||||||||||
Net Yield On Earning Assets (Net Interest Margin) | 2.80 | % | 3.13 | % |
(2) | SECURITIES AVAILABLE FOR SALE ARE COMPUTED USING THEIR HISTORICAL COST. |
(3) | TAX EQUIVALENT BASIS IS CALCULATED USING AN EFEECTIVE TAX RATE OF 34% AND WAS $260,766 AND $102,000, RESPECTIVELY FOR THE NINE MONTHS ENDED DECEMBER 31, 2012 AND 2011. |
Averages For Fiscal Years Ended March 31, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||
(Dollars In Thousands) | |||||||||||||||||||||
Interest-Earning Assets: | |||||||||||||||||||||
Mortgage Loans | $ | 103,842 | $ | 5,186 | 4.99 | % | $ | 116,148 | $ | 6,041 | 5.20 | % | |||||||||
Other Loans | 354,753 | 22,847 | 6.44 | % | 419,983 | 26,769 | 6.37 | % | |||||||||||||
Total Loans (1) | 458,595 | 28,033 | 6.11 | % | 536,131 | 32,810 | 6.12 | % | |||||||||||||
Mortgage-Backed Securities (2) | 257,595 | 7,661 | 2.97 | % | 229,052 | 8,305 | 3.63 | % | |||||||||||||
Investments (2) (3) | 130,690 | 3,004 | 2.30 | % | 103,279 | 2,627 | 2.54 | % | |||||||||||||
Other Interest-Earning Assets | 4,826 | 3 | 0.05 | % | 3,547 | 5 | 0.13 | % | |||||||||||||
Total Interest-Earning Assets | $ | 851,706 | $ | 38,701 | 4.54 | % | $ | 872,009 | $ | 43,747 | 5.02 | % | |||||||||
Interest-Bearing Liabilities: | |||||||||||||||||||||
Certificate Accounts | $ | 335,736 | $ | 5,040 | 1.50 | % | $ | 382,508 | $ | 7,546 | 1.97 | % | |||||||||
NOW Accounts | 73,202 | 86 | 0.12 | % | 67,934 | 185 | 0.27 | % | |||||||||||||
Money Market Accounts | 216,517 | 1,617 | 0.75 | % | 183,128 | 1,882 | 1.03 | % | |||||||||||||
Savings Accounts | 20,858 | 45 | 0.22 | % | 19,374 | 58 | 0.30 | % | |||||||||||||
Total Interest-Bearing Accounts | 646,313 | 6,788 | 1.05 | % | 652,944 | 9,671 | 1.48 | % | |||||||||||||
Other Borrowings | 10,424 | 39 | 0.37 | % | 11,714 | 62 | 0.53 | % | |||||||||||||
Jr. Subordinated Debt | 5,155 | 167 | 3.24 | % | 5,155 | 233 | 4.53 | % | |||||||||||||
Sr. Convertible Debt | 6,084 | 487 | 8.00 | % | 6,084 | 487 | 8.00 | % | |||||||||||||
FHLB Advances | 127,417 | 4,916 | 3.86 | % | 144,054 | 5,642 | 3.92 | % | |||||||||||||
Total Interest-Bearing Liabilities | $ | 795,393 | $ | 12,397 | 1.56 | % | $ | 819,951 | $ | 16,095 | 1.96 | % | |||||||||
Net Interest Income | $ | 26,304 | $ | 27,652 | |||||||||||||||||
Interest Rate Spread | 2.98 | % | 3.06 | % | |||||||||||||||||
Net Yield On Earning Assets (Net Interest Margin) | 3.09 | % | 3.17 | % |
(2) | SECURITIES AVAILABLE FOR SALE ARE COMPUTED USING THEIR HISTORICAL COST. |
(3) | TAX EQUIVALENT BASIS IS CALCULATED USING AN EFEECTIVE TAX RATE OF 34% AND WAS $172,205 AND $5,000, RESPECTIVELY FOR THE YEARS ENDED MARCH 31, 2012 AND 2011. |
At December 31, | At March 31, | ||||||
2012 | 2012 | ||||||
(In Thousands) | |||||||
Bank’s Shareholders’ Equity (1) | $ | 82,084 | $ | 79,854 | |||
Reduction For Goodwill And Other Intangibles | 1,262 | 1,299 | |||||
Tangible Capital | 80,822 | 78,555 | |||||
Core Capital | 80,822 | 78,555 | |||||
Supplemental Capital | 5,190 | 5,743 | |||||
Total Risk-Based Capital | $ | 86,012 | $ | 84,298 |
(1) | THE NINE MONTHS ENDED DECEMBER 31, 2012 AND THE YEAR ENDED MARCH 31,2012, EXCLUDES UNREALIZED GAIN OF $7.4 MILLION and $6.6 MILLION, RESPECTIVELY, ON AVAILABLE FOR SALE SECURITIES. |
Amount Required | Percent Required | Actual Amount | Actual Percent | Excess Amount | Excess Percent | ||||||||||||
(Dollars In Thousands) | |||||||||||||||||
Tier 1 Leverage (Core) Capital | 35,541 | 4.0 | % | 80,822 | 9.1 | % | 45,281 | 5.1 | % | ||||||||
Tier 1 Risk-Based (Core) Capital | 16,606 | 4.0 | % | 80,822 | 19.5 | % | 64,216 | 15.5 | % | ||||||||
Total Risk-Based Capital | 33,212 | 8.0 | % | 86,012 | 20.7 | % | 52,800 | 12.7 | % |
(In Thousands) | One Month Or Less | After One Through Three Months | After Three Through Twelve Months | Within One Year | One Year Or Greater | Total | |||||||||||||||||
Unused Lines Of Credit | $ | 109 | $ | 393 | $ | 3,225 | $ | 3,727 | $ | 26,331 | $ | 30,058 | |||||||||||
Standby Letters Of Credit | 387 | 15 | 1,666 | 2,068 | 4,012 | 6,080 | |||||||||||||||||
Total | $ | 496 | $ | 408 | $ | 4,891 | $ | 5,795 | $ | 30,343 | $ | 36,138 |
One Year Or Less | Over One to Three Years | Over Three to Five Years | Thereafter | Total | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Time deposits | $ | 182,062 | $ | 77,561 | $ | 33,181 | $ | — | $ | 292,804 | |||||||||
FHLB Advances | 22,100 | 45,257 | 32,900 | 5,000 | 105,257 | ||||||||||||||
Other Borrowings | 9,317 | — | — | — | 9,317 | ||||||||||||||
Jr. Sub. Debentures | — | — | — | 5,155 | 5,155 | ||||||||||||||
Sr. Conv. Debentures | — | — | — | 6,084 | 6,084 | ||||||||||||||
Operating Lease Obligations | 413 | 772 | 561 | 1,157 | 2,903 | ||||||||||||||
Total | $ | 213,892 | $ | 123,590 | $ | 66,642 | $ | 17,396 | $ | 421,520 |
December 31, 2012 | March 31, 2012 | ||||||
ASSETS: | |||||||
Cash And Cash Equivalents | $ | 7,903,950 | $ | 9,331,372 | |||
Certificates Of Deposit With Other Banks | 1,728,567 | 1,727,210 | |||||
Investment And Mortgage-Backed Securities: | |||||||
Available For Sale: (Amortized Cost of $342,936,153 and $343,421,858 at December 31, 2012 and March 31, 2012, Respectively) | 354,916,216 | 353,954,857 | |||||
Held To Maturity: (Fair Value of $79,671,886 and $69,965,869 at December 31, 2012 and March 31, 2012, Respectively) | 76,072,262 | 67,676,210 | |||||
Total Investments And Mortgage-Backed Securities | 430,988,478 | 421,631,067 | |||||
Loans Receivable, Net: | |||||||
Held For Sale | 4,770,760 | 2,671,771 | |||||
Held For Investment: (Net of Allowance of $11,318,371 and $14,615,198 at December 31, 2012 and March 31, 2012, Respectively) | 392,935,060 | 425,838,835 | |||||
Total Loans Receivable, Net | 397,705,820 | 428,510,606 | |||||
Accrued Interest Receivable: | |||||||
Loans | 1,242,072 | 1,718,252 | |||||
Mortgage-Backed Securities | 901,423 | 987,911 | |||||
Investment Securities | 1,131,262 | 793,655 | |||||
Total Accrued Interest Receivable | 3,274,757 | 3,499,818 | |||||
Premises And Equipment, Net | 17,917,897 | 18,726,299 | |||||
FHLB Stock, At Cost | 6,178,700 | 8,471,100 | |||||
Repossessed Assets Acquired In Settlement Of Loans | 6,754,425 | 14,160,099 | |||||
Bank Owned Life Insurance | 11,151,305 | 10,836,305 | |||||
Intangible Assets, Net | 61,974 | 99,477 | |||||
Goodwill | 1,199,754 | 1,199,754 | |||||
Other Assets | 5,488,960 | 6,443,501 | |||||
Total Assets | $ | 890,354,587 | $ | 924,636,608 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||
Liabilities: | |||||||
Deposit Accounts | $ | 676,338,653 | $ | 696,201,056 | |||
Advances From FHLB | 105,257,182 | 122,069,802 | |||||
Other Borrowings | 9,317,244 | 9,801,386 | |||||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | |||||
Advance Payments By Borrowers For Taxes And Insurance | 189,424 | 350,464 | |||||
Senior Convertible Debentures | 6,084,000 | 6,084,000 | |||||
Other Liabilities | 5,420,600 | 4,203,014 | |||||
Total Liabilities | 807,762,103 | 843,864,722 | |||||
Commitments (Notes 5 and 19) | |||||||
Shareholders' Equity: | |||||||
Serial Preferred Stock, $.01 Par Value; Authorized 200,000 Shares; Issued And Outstanding, 22,000 At December 31, 2012 and March 31, 2012, Respectively | 22,000,000 | 22,000,000 | |||||
Common Stock, $.01 Par Value; Authorized 5,000,000 Shares; Issued 3,144,934 Shares At December 31, 2012 And At March 31, 2012 | 31,449 | 31,449 | |||||
Warrant Issued In Conjunction With Serial Preferred Stock | 400,000 | 400,000 | |||||
Additional Paid-In Capital | 11,630,717 | 11,626,245 | |||||
Treasury Stock, At Cost (200,933 Shares At December 31, 2012 and March 31, 2012, Respectively) | (4,330,712 | ) | (4,330,712 | ) | |||
Accumulated Other Comprehensive Income | 7,431,310 | 6,533,573 | |||||
Retained Earnings | 45,429,720 | 44,511,331 | |||||
Total Shareholders' Equity | 82,592,484 | 80,771,886 | |||||
Total Liabilities And Shareholders' Equity | $ | 890,354,587 | $ | 924,636,608 |
For The Nine Months Ended | For The Years Ended | ||||||||||
December 31, 2012 | March 31, 2012 | March 31, 2011 | |||||||||
Interest Income: | |||||||||||
Loans | $ | 17,907,415 | $ | 28,032,556 | $ | 32,809,913 | |||||
Mortgage-Backed Securities | 4,882,993 | 7,661,454 | 8,304,884 | ||||||||
Investment Securities | 1,994,411 | 2,832,193 | 2,623,006 | ||||||||
Other | 6,405 | 2,620 | 4,537 | ||||||||
Total Interest Income | 24,791,224 | 38,528,823 | 43,742,340 | ||||||||
Interest Expense: | |||||||||||
NOW And Money Market Accounts | 832,856 | 1,702,502 | 2,067,241 | ||||||||
Statement Savings Accounts | 32,720 | 45,089 | 58,195 | ||||||||
Certificate Accounts | 2,838,292 | 5,040,071 | 7,546,064 | ||||||||
FHLB Advances And Other Borrowed Money | 3,306,898 | 4,955,443 | 5,703,534 | ||||||||
Senior Convertible Debentures | 365,040 | 486,720 | 486,720 | ||||||||
Junior Subordinated Debentures | 84,010 | 167,007 | 233,361 | ||||||||
Total Interest Expense | 7,459,816 | 12,396,832 | 16,095,115 | ||||||||
Net Interest Income | 17,331,408 | 26,131,991 | 27,647,225 | ||||||||
Provision For Loan Losses | 1,975,000 | 8,650,000 | 7,800,000 | ||||||||
Net Interest Income After Provision For Loan Losses | 15,356,408 | 17,481,991 | 19,847,225 | ||||||||
Non-Interest Income: | |||||||||||
Gain On Sale Of Investment Securities | 945,476 | 2,300,254 | 1,520,599 | ||||||||
Gain On Sale Of Loans | 498,879 | 534,968 | 1,404,879 | ||||||||
Service Fees On Deposit Accounts | 880,209 | 1,156,202 | 1,143,811 | ||||||||
Commissions From Insurance Agency | 346,015 | 425,967 | 458,663 | ||||||||
Trust Income | 380,000 | 476,000 | 459,500 | ||||||||
Bank Owned Life Insurance Income | 315,000 | 420,000 | 415,000 | ||||||||
Mandatorily Redeemable Financial Instrument Valuation Income | — | 50,000 | 196,000 | ||||||||
Check Card Fee Income | 615,815 | 787,517 | 692,220 | ||||||||
Other | 383,460 | 790,797 | 504,289 | ||||||||
Total Non-Interest Income | 4,364,854 | 6,941,705 | 6,794,961 | ||||||||
General And Administrative Expenses: | |||||||||||
Compensation And Employee Benefits | 7,978,054 | 10,990,812 | 11,828,376 | ||||||||
Occupancy | 1,498,858 | 1,878,754 | 1,929,946 | ||||||||
Advertising | 303,754 | 387,079 | 393,287 | ||||||||
Depreciation And Maintenance Of Equipment | 1,271,609 | 1,720,726 | 1,832,295 | ||||||||
FDIC Insurance Premiums | 514,065 | 826,731 | 1,218,075 | ||||||||
Amortization Of Intangibles | 37,503 | 60,023 | 90,000 | ||||||||
Net Cost Of Operation Of Other Real Estate Owned | 2,745,667 | 1,235,272 | 2,330,410 | ||||||||
Other | 2,713,044 | 3,617,643 | 4,218,751 | ||||||||
Total General And Administrative Expenses | 17,062,554 | 20,717,040 | 23,841,140 | ||||||||
Income Before Income Taxes | 2,658,708 | 3,706,656 | 2,801,046 | ||||||||
Provision For Income Taxes | 703,759 | 1,911,281 | 958,133 | ||||||||
Net Income | 1,954,949 | 1,795,375 | 1,842,913 | ||||||||
Preferred Stock Dividends | 330,000 | 440,000 | 666,453 | ||||||||
Accretion Of Preferred Stock To Redemption Value | — | — | 18,816 | ||||||||
Net Income Available To Common Shareholders | $ | 1,624,949 | $ | 1,355,375 | $ | 1,157,644 | |||||
Net Income Per Common Share (Basic) | $ | 0.55 | $ | 0.46 | $ | 0.43 | |||||
Net Income Per Common Share (Diluted) | $ | 0.55 | $ | 0.46 | $ | 0.42 | |||||
Cash Dividend Per Share On Common Stock | $ | 0.24 | $ | 0.32 | $ | 0.32 | |||||
Weighted Average Shares Outstanding (Basic) | 2,944,001 | 2,944,001 | 2,684,130 | ||||||||
Weighted Average Shares Outstanding (Diluted) | 2,944,001 | 2,944,001 | 2,762,824 |
Nine Months Ended December 31, | Year Ended March 31, | |||||||||||
2012 | 2012 | 2011 | ||||||||||
Net Income | $ | 1,954,949 | $ | 1,795,375 | $ | 1,842,913 | ||||||
Other Comprehensive Income | ||||||||||||
Unrealized Gains On Securities: | ||||||||||||
Unrealized Holding Gains (Losses) On Securities Available For Sale, Net Of Taxes Of $909,507 At December 31, 2012; $2,649,001 At March 31, 2012; And $16,937 At March 31, 2011 | 1,483,932 | 4,322,055 | (27,634 | ) | ||||||||
Reclassification Adjustment For Gains Included In Net Income, Net Of Taxes Of $359,281 At December 31, 2012; $874,097 At March 31, 2012; And $577,828 At March 31, 2011 | (586,195 | ) | (1,426,157 | ) | (942,771 | ) | ||||||
Other Comprehensive Income (Loss) | $ | 897,737 | $ | 2,895,898 | $ | (970,405 | ) | |||||
Comprehensive Income | $ | 2,852,686 | $ | 4,691,273 | $ | 872,508 |
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 | — | — | — | — | — | — | 1,842,913 | 1,842,913 | |||||||||||||||||||||||
Other Comprehensive Income, Net Of Tax: | — | — | — | — | — | (970,405 | ) | — | (970,405 | ) | |||||||||||||||||||||
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 | — | — | — | — | — | — | 34,424 | 34,424 | |||||||||||||||||||||||
Cash Dividends On Preferred | — | — | — | — | — | — | (726,222 | ) | (726,222 | ) | |||||||||||||||||||||
Cash Dividends On Common | — | — | — | — | — | — | (858,184 | ) | (858,184 | ) | |||||||||||||||||||||
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 |
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 | — | — | — | — | — | — | 1,795,375 | 1,795,375 | |||||||||||||||||||||||
Other Comprehensive Income, Net Of Tax: | — | — | — | — | — | 2,895,898 | — | 2,895,898 | |||||||||||||||||||||||
Redemption Of Mandatorily Redeemable Financial Instrument | — | — | 565 | 1,416,747 | — | — | — | 1,417,312 | |||||||||||||||||||||||
Stock Compensation Expense | — | — | — | 33,123 | — | — | — | 33,123 | |||||||||||||||||||||||
Cash Dividends On Preferred | — | — | — | — | — | — | (440,000 | ) | (440,000 | ) | |||||||||||||||||||||
Cash Dividends On Common | — | — | — | — | — | — | (942,027 | ) | (942,027 | ) | |||||||||||||||||||||
Balance at March 31, 2012 | $ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,626,245 | $ | (4,330,712 | ) | $ | 6,533,573 | $ | 44,511,331 | $ | 80,771,886 |
Preferred Stock | Warrants | Common Stock | Additional Paid – In Capital | Treasury Stock | Accumulated Other Comprehensive Income | Retained Earnings | Total | ||||||||||||||||||||||||
Balance at March 31, 2012 | $ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,626,245 | $ | (4,330,712 | ) | $ | 6,533,573 | $ | 44,511,331 | $ | 80,771,886 | ||||||||||||||
Net Income | — | — | — | — | — | — | 1,954,949 | 1,954,949 | |||||||||||||||||||||||
Other Comprehensive Income, Net Of Tax | — | — | — | — | — | 897,737 | — | 897,737 | |||||||||||||||||||||||
Stock Compensation Expense | — | — | — | 4,472 | — | — | — | 4,472 | |||||||||||||||||||||||
Cash Dividends On Preferred | — | — | — | — | — | — | (330,000 | ) | (330,000 | ) | |||||||||||||||||||||
Cash Dividends On Common | — | — | — | — | — | — | (706,560 | ) | (706,560 | ) | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,630,717 | $ | (4,330,712 | ) | $ | 7,431,310 | $ | 45,429,720 | $ | 82,592,484 |
For the Nine Months Ended | For the Years Ended | ||||||||||
December 31, 2012 | March 31, 2012 | March 31, 2011 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net Income | $ | 1,954,949 | $ | 1,795,375 | $ | 1,842,913 | |||||
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities: | |||||||||||
Depreciation Expense | 1,055,662 | 1,491,028 | 1,549,477 | ||||||||
Amortization Of Intangible Assets | 37,503 | 60,023 | 90,000 | ||||||||
Stock Option Compensation Expense | 4,472 | 33,123 | 34,424 | ||||||||
Discount Accretion And Premium Amortization | 5,712,398 | 5,536,476 | 3,690,505 | ||||||||
Provisions For Losses On Loans | 1,975,000 | 8,650,000 | 7,800,000 | ||||||||
Mandatorily Redeemable Financial Instrument Valuation Income | — | (50,000 | ) | (196,000 | ) | ||||||
Income From Bank Owned Life Insurance | (315,000 | ) | (420,000 | ) | (415,000 | ) | |||||
Gain On Sales Of Loans | (498,879 | ) | (534,968 | ) | (1,404,879 | ) | |||||
Gain On Sales Of Mortgage-Backed Securities | (804,959 | ) | (1,255,867 | ) | (1,207,238 | ) | |||||
Gain On Sales Of Investment Securities | (140,517 | ) | (1,044,387 | ) | (313,361 | ) | |||||
(Gain) Loss On Sale Of Real Estate Owned | (694,650 | ) | 4,230 | 256,484 | |||||||
Write Down On Real Estate Owned | 2,933,000 | 608,920 | 1,409,564 | ||||||||
Amortization Of Deferred Fees On Loans | (8,994 | ) | (18,665 | ) | (11,550 | ) | |||||
Proceeds From Sale Of Loans Held For Sale | 22,536,178 | 40,891,379 | 74,175,983 | ||||||||
Origination Of Loans Held For Sale | (24,136,288 | ) | (37,861,948 | ) | (74,775,875 | ) | |||||
(Increase) Decrease In Accrued Interest Receivable: | |||||||||||
Loans | 476,180 | 24,029 | 45,190 | ||||||||
Mortgage-Backed Securities | 86,488 | (43,244 | ) | 19,713 | |||||||
Investment Securities | (337,607 | ) | 93,864 | (185,958 | ) | ||||||
Increase (Decrease) In Advance Payments By Borrowers | (161,040 | ) | (31,024 | ) | 54,156 | ||||||
Decrease In Prepaid FDIC Assessment | 359,681 | 674,171 | 1,172,294 | ||||||||
Other, Net | 1,261,763 | (1,576,174 | ) | 444,784 | |||||||
Net Cash Provided By Operating Activities | 11,295,340 | 17,026,341 | 14,075,626 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase Of Mortgage-Backed Securities Available For Sale | (57,808,416 | ) | (95,362,225 | ) | (116,717,564 | ) | |||||
Principal Repayments On Mortgage-Backed Securities Available For Sale | 43,332,870 | 48,615,134 | 58,109,556 | ||||||||
Purchase Of Mortgage-Backed Securities Held To Maturity | (9,130,181 | ) | (26,183,966 | ) | (12,726,562 | ) | |||||
Principal Repayments On Mortgage-Backed Securities Held To Maturity | 1,144,542 | 1,241,459 | 3,725,195 | ||||||||
Purchase Of Investment Securities Available For Sale | (44,272,326 | ) | (75,048,637 | ) | (88,254,904 | ) | |||||
Maturities Of Investment Securities Available For Sale | 14,662,340 | 30,601,423 | 31,044,163 | ||||||||
Purchase of Investment Securities Held To Maturity | (14,513,829 | ) | (18,532,549 | ) | (7,043,450 | ) | |||||
Maturities Of Investment Securities Held To Maturity | 13,592,535 | 8,598,502 | 1,628,735 | ||||||||
Proceeds From Sale of Investment Securities Available For Sale | 5,441,135 | 28,213,347 | 16,463,819 | ||||||||
Proceeds From Sale of Mortgage-Backed Securities Available For Sale | 34,874,060 | 50,076,125 | 48,564,592 | ||||||||
Investment In Certificates Of Deposits With Other Banks | — | (1,625,000 | ) | — | |||||||
Purchase Of FHLB Stock | (657,887 | ) | (34,343 | ) | — | ||||||
Redemption Of FHLB Stock | 2,950,287 | 2,830,728 | 1,356,915 | ||||||||
Decrease In Loans Receivable | 28,481,291 | 40,557,533 | 62,562,563 | ||||||||
Capital Improvements To Repossessed Assets | — | (36,877 | ) | (549,458 | ) | ||||||
Proceeds From Sale Of Repossessed Assets | 7,623,802 | 3,974,160 | 10,804,585 | ||||||||
Purchase And Improvement Of Premises And Equipment | (247,260 | ) | (416,712 | ) | (629,609 | ) | |||||
Net Cash Provided (Used) By Investing Activities | 25,472,963 | (2,531,898 | ) | 8,338,576 |
For the Nine Months Ended | For the Years Ended | ||||||||||
December 31, 2012 | March 31, 2012 | March 31, 2011 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Increase (Decrease) In Deposit Accounts | (19,862,403 | ) | 5,843,942 | (3,895,323 | ) | ||||||
Proceeds From FHLB Advances | 60,400,000 | 106,501,384 | 148,420,000 | ||||||||
Repayment Of FHLB Advances | (77,212,620 | ) | (122,567,920 | ) | (174,287,544 | ) | |||||
Repayments Of Other Borrowings, Net | (484,142 | ) | (1,394,088 | ) | (864,996 | ) | |||||
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 Stock Shareholders | (330,000 | ) | (440,000 | ) | (726,222 | ) | |||||
Dividends To Common Stock Shareholders | (706,560 | ) | (942,027 | ) | (858,184 | ) | |||||
Net Cash Used By Financing Activities | (38,195,725 | ) | (12,998,709 | ) | (23,383,209 | ) | |||||
Net Increase (Decrease) In Cash And Cash Equivalents | (1,427,422 | ) | 1,495,734 | (969,007 | ) | ||||||
Cash And Cash Equivalents At Beginning Of Year | 9,331,372 | 7,835,638 | 8,804,645 | ||||||||
Cash And Cash Equivalents At End Of Year | $ | 7,903,950 | $ | 9,331,372 | $ | 7,835,638 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
Cash Paid During The Period For: | |||||||||||
Interest | $ | 7,692,965 | $ | 12,527,487 | $ | 16,377,342 | |||||
Income Taxes | $ | 274,656 | $ | 2,863,176 | $ | 429,432 | |||||
Supplemental Schedule Of Non Cash Transactions: | |||||||||||
Transfers From Loans Receivable | $ | 2,456,478 | $ | 4,276,679 | $ | 15,581,977 | |||||
Unrealized Gains (Losses) On Securities Available For Sale, Net Of Taxes | $ | 897,737 | $ | 2,895,898 | $ | (970,405 | ) |
(1) | Significant Accounting Policies |
(a) | Basis of Consolidation and Nature of Operations |
(b) | Change in Fiscal Year |
For the Nine Months Ended December 31, | |||||||
2012 | 2011 | ||||||
(Unaudited) | |||||||
Interest Income | $ | 24,791,224 | $ | 29,577,248 | |||
Interest Expense | 7,459,816 | 9,582,911 | |||||
Net Interest Income | 17,331,408 | 19,994,337 | |||||
Provision For Loan Losses | 1,975,000 | 6,700,000 | |||||
Net Interest Income After Provision For Loan Losses | 15,356,408 | 13,294,337 | |||||
Non-Interest Income | 4,364,854 | 5,327,218 | |||||
General And Administrative Expenses | 17,062,554 | 15,592,171 | |||||
Income Before Income Taxes | 2,658,708 | 3,029,384 | |||||
Provision For Income Taxes | 703,759 | 1,663,956 | |||||
Net Income | 1,954,949 | 1,365,428 | |||||
Preferred Stock Dividends | 330,000 | 330,000 | |||||
Net Income Available To Common Shareholders | $ | 1,624,949 | $ | 1,035,428 | |||
Net Income Per Common Share (Basic) | $0.55 | $0.35 | |||||
Net Income Per Common Share (Diluted) | $0.55 | $0.35 | |||||
Cash Dividend Per Share On Common Stock | $0.24 | $0.24 |
(1) | Significant Accounting Policies, Continued |
(c) | Cash and Cash Equivalents |
(d) | Investment and Mortgage-Backed Securities |
(e) | Loans Receivable Held for Investment |
(f) | Allowance for Loan Losses |
(g) | Loans Receivable Held for Sale |
(1) | Significant Accounting Policies, Continued |
(h) | Repossessed Assets Acquired in Settlement of Loans |
(i) | Premises and Equipment |
(j) | Intangible Assets and Goodwill |
(k) | Income Taxes |
(l) | Loan Fees and Costs Associated with Originating Loans |
(1) | Significant Accounting Policies, Continued |
(m) | Interest Income |
(n) | Advertising Expense |
(o) | Stock-Based Compensation |
(p) | Earnings Per Share |
For the Nine Months Ended December 31, | For the Years Ended March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Earnings Available To Common Shareholders | |||||||||||
Net Income | $ | 1,954,949 | $ | 1,795,375 | $ | 1,842,913 | |||||
Preferred Stock Dividends | 330,000 | 440,000 | 666,453 | ||||||||
Deemed Dividends On Preferred Stock From Net Accretion Of Preferred Stock | — | — | 18,816 | ||||||||
Net Income Available To Common Shareholders | $ | 1,624,949 | $ | 1,355,375 | $ | 1,157,644 |
(1) | Significant Accounting Policies, Continued |
For the Year Ended March 31, 2011 | ||||||||||
Income | Shares | Per Share Amounts | ||||||||
Basic EPS | $ | 1,157,644 | 2,684,130 | $ | 0.43 | |||||
Effect of Diluted Securities: | ||||||||||
Mandatorily Redeemable Shares | — | 78,694 | (0.01 | ) | ||||||
Senior Convertible Debentures | — | — | — | |||||||
Stock Options And Warrants | — | — | — | |||||||
Diluted EPS | $ | 1,157,644 | 2,762,824 | $ | 0.42 |
(q) | Use of Estimates |
(r) | Recently Issued Accounting Standards |
a) | For fair value measurements categorized within Level 3 of the fair value hierarchy: |
1) | The valuation processes used by the reporting entity |
2) | The sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any. |
b) | A reporting entity's use of a nonfinancial asset in a way that differs from the asset's highest and best use when that asset is measured at fair value in the statement of financial position or when its fair value is disclosed on the basis of its highest and best use. |
c) | The categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed (for example, a financial instrument that is measured at amortized cost in the statement of financial position but for which fair value is disclosed in accordance with Topic 825, Financial Instruments). |
(1) | Significant Accounting Policies, Continued |
(1) | Significant Accounting Policies, Continued |
(t) | Reclassifications |
December 31, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair value | ||||||||||||
FHLB Securities | $ | 6,115,036 | $ | 53,954 | $ | 4,320 | $ | 6,164,670 | |||||||
Small Business Administration (“SBA”) Bonds | 94,152,203 | 2,466,354 | 156,287 | 96,462,270 | |||||||||||
Tax Exempt Municipal Bonds | 35,772,115 | 1,770,567 | 60,534 | 37,482,148 | |||||||||||
Mortgage-Backed Securities | 206,793,861 | 8,030,008 | 91,966 | 214,731,903 | |||||||||||
Equity Securities | 102,938 | — | 27,713 | 75,225 | |||||||||||
$ | 342,936,153 | $ | 12,320,883 | $ | 340,820 | $ | 354,916,216 | ||||||||
March 31, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair value | ||||||||||||
FHLB Securities | $ | 2,634,234 | $ | 64,660 | $ | — | $ | 2,698,894 | |||||||
Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) Bonds | 2,926,566 | 560 | 5,275 | 2,921,851 | |||||||||||
SBA Bonds | 85,064,224 | 1,357,490 | 142,912 | 86,278,802 | |||||||||||
Tax Exempt Municipal Bonds | 23,231,375 | 971,739 | 77,389 | 24,125,725 | |||||||||||
Mortgage-Backed Securities | 229,462,521 | 8,486,387 | 95,073 | 237,853,835 | |||||||||||
Equity Securities | 102,938 | — | 27,188 | 75,750 | |||||||||||
$ | 343,421,858 | $ | 10,880,836 | $ | 347,837 | $ | 353,954,857 |
Amortized Cost | Fair Value | ||||||
Less Than One Year | $ | — | $ | — | |||
One – Five Years | 14,222,904 | 14,515,725 | |||||
Five – Ten Years | 60,854,622 | 62,377,392 | |||||
After Ten Years | 61,064,766 | 63,291,196 | |||||
Mortgage-Backed Securities | 206,793,861 | 214,731,903 | |||||
$ | 342,936,153 | $ | 354,916,216 |
December 31, 2012 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
FHLB Securities | $ | 995,680 | $ | 4,320 | $ | — | $ | — | $ | 995,680 | $ | 4,320 | |||||||||||
SBA Bonds | 4,583,177 | 119,825 | 1,833,076 | 36,462 | 6,416,253 | 156,287 | |||||||||||||||||
Tax Exempt Municipal Bond | 4,538,734 | 60,534 | — | — | 4,538,734 | 60,534 | |||||||||||||||||
Mortgage-Backed Securities | 16,259,037 | 91,966 | — | — | 16,259,037 | 91,966 | |||||||||||||||||
Equity Securities | — | — | 75,225 | 27,713 | 75,225 | 27,713 | |||||||||||||||||
$ | 26,376,628 | $ | 276,645 | $ | 1,908,301 | $ | 64,175 | $ | 28,284,929 | $ | 340,820 |
March 31, 2012 | |||||||||||||||||||||||
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 | $ | 1,921,291 | $ | 5,275 | $ | — | $ | — | $ | 1,921,291 | $ | 5,275 | |||||||||||
SBA Bonds | 12,508,821 | 142,912 | — | — | 12,508,821 | 142,912 | |||||||||||||||||
Tax Exempt Municipal Bond | 3,390,580 | 77,389 | — | — | 3,390,580 | 77,389 | |||||||||||||||||
Mortgage-Backed Securities | 23,053,784 | 95,073 | — | — | 23,053,784 | 95,073 | |||||||||||||||||
Equity Securities | — | — | 75,750 | 27,188 | 75,750 | 27,188 | |||||||||||||||||
$ | 40,874,476 | $ | 320,649 | $ | 75,750 | $ | 27,188 | $ | 40,950,226 | $ | 347,837 |
December 31, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
FHLB Securities | $ | 7,996,378 | $ | 123,702 | $ | 21,160 | $ | 8,098,920 | |||||||
Federal Farm Credit Bank ("FFCB") Securities | 6,796,255 | 2,070 | 23,727 | 6,774,598 | |||||||||||
FNMA and FHLMC Bonds | 4,019,931 | 29,029 | 4,560 | 4,044,400 | |||||||||||
SBA Bonds | 5,865,767 | 315,841 | 6,139 | 6,175,469 | |||||||||||
Mortgage-Backed Securities | 51,238,931 | 3,280,100 | 95,532 | 54,423,499 | |||||||||||
Equity Securities | 155,000 | — | — | 155,000 | |||||||||||
$ | 76,072,262 | $ | 3,750,742 | $ | 151,118 | $ | 79,671,886 |
March 31, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
FHLB Securities | $ | 11,554,627 | $ | 221,726 | $ | 13,517 | $ | 11,762,836 | |||||||
FFCB Securities | 1,999,516 | 6,534 | 23,410 | 1,982,640 | |||||||||||
FNMA and FHLMC Bonds | 6,983,004 | 19,863 | 49,147 | 6,953,720 | |||||||||||
SBA Bonds | 3,251,151 | 305,430 | — | 3,556,581 | |||||||||||
Mortgage-Backed Securities | 43,732,912 | 1,822,180 | — | 45,555,092 | |||||||||||
Equity Securities | 155,000 | — | — | 155,000 | |||||||||||
$ | 67,676,210 | $ | 2,375,733 | $ | 86,074 | $ | 69,965,869 |
Amortized Cost | Fair Value | ||||||
Less Than One Year | $ | 3,000,000 | $ | 3,080,130 | |||
One – Five Years | 395,997 | 407,914 | |||||
Over Five – Ten Years | 10,080,844 | 10,074,313 | |||||
More Than Ten Years | 11,356,490 | 11,686,030 | |||||
Mortgage-Backed Securities | 51,238,931 | 54,423,499 | |||||
$ | 76,072,262 | $ | 79,671,886 |
December 31, 2012 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
FHLB Securities | $ | 1,978,840 | $ | 21,160 | $ | — | $ | — | $ | 1,978,840 | $ | 21,160 | |||||||||||
FFCB Securities | 5,772,528 | 23,727 | — | — | 5,772,528 | 23,727 | |||||||||||||||||
FNMA And FHLMC Bonds | 1,021,910 | 4,560 | — | — | 1,021,910 | 4,560 | |||||||||||||||||
SBA Bonds | 3,249,478 | 6,139 | — | — | 3,249,478 | 6,139 | |||||||||||||||||
Mortgage-Backed Securities | 7,659,461 | 95,532 | — | — | 7,659,461 | 95,532 | |||||||||||||||||
$ | 19,682,217 | $ | 151,118 | $ | — | $ | — | $ | 19,682,217 | $ | 151,118 |
March 31, 2012 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
FHLB Securities | $ | 4,532,636 | $ | 13,517 | $ | — | $ | — | $ | 4,532,636 | $ | 13,517 | |||||||||||
FFCB Securities | 976,590 | 23,410 | — | — | 976,590 | 23,410 | |||||||||||||||||
FNMA And FHLMC Bonds | 4,939,150 | 49,147 | — | — | 4,939,150 | 49,147 | |||||||||||||||||
$ | 10,448,376 | $ | 86,074 | $ | — | $ | — | $ | 10,448,376 | $ | 86,074 |
December 31, 2012 | March 31, 2012 | ||||||
Residential Real Estate Loans | $ | 90,677,625 | $ | 97,807,917 | |||
Consumer Loans | 56,595,093 | 58,685,000 | |||||
Commercial Business | 8,063,901 | 9,552,575 | |||||
Commercial Real Estate | 250,924,094 | 276,317,897 | |||||
Total Loans Held For Investment | 406,260,713 | 442,363,389 | |||||
Loans Held For Sale | 4,770,760 | 2,671,771 | |||||
Total Loans Receivable, Gross | 411,031,473 | 445,035,160 | |||||
Less: | |||||||
Allowance For Loan Losses | 11,318,371 | 14,615,198 | |||||
Loans In Process | 2,002,595 | 1,886,652 | |||||
Deferred Loan Fees | 4,687 | 22,704 | |||||
13,325,653 | 16,524,554 | ||||||
Total Loans Receivable, Net | $ | 397,705,820 | $ | 428,510,606 |
Nine Months Ended December 31, | Years Ended March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Balance At Beginning Of Period | $ | 14,615,198 | $ | 12,501,800 | $ | 12,307,394 | |||||
Provision For Loan Losses | 1,975,000 | 8,650,000 | 7,800,000 | ||||||||
Charge Offs | (7,422,393 | ) | (6,643,834 | ) | (8,116,667 | ) | |||||
Recoveries | 2,150,566 | 107,232 | 511,073 | ||||||||
Total Allowance For Loan Losses | $ | 11,318,371 | $ | 14,615,198 | $ | 12,501,800 |
Credit Quality Measures | |||||||||||||||||||
December 31, 2012 | Pass | Caution | Special Mention | Substandard | Total Loans | ||||||||||||||
Residential Real Estate | $ | 82,565,630 | $ | 222,046 | $ | 293,079 | $ | 7,596,870 | $ | 90,677,625 | |||||||||
Consumer | 54,899,665 | 152,368 | 184,731 | 1,358,329 | 56,595,093 | ||||||||||||||
Commercial Business | 7,256,607 | 151,521 | 514,253 | 141,520 | 8,063,901 | ||||||||||||||
Commercial Real Estate | 162,570,021 | 32,049,447 | 17,417,778 | 38,886,848 | 250,924,094 | ||||||||||||||
Total | $ | 307,291,923 | $ | 32,575,382 | $ | 18,409,841 | $ | 47,983,567 | $ | 406,260,713 |
Credit Quality Measures | |||||||||||||||||||
March 31, 2012 | Pass | Caution | Special Mention | Substandard | Total Loans | ||||||||||||||
Residential Real Estate | $ | 88,536,685 | $ | — | $ | 573,887 | $ | 8,697,345 | $ | 97,807,917 | |||||||||
Consumer | 57,113,676 | 159,805 | 27,604 | 1,383,915 | 58,685,000 | ||||||||||||||
Commercial Business | 8,608,378 | 446,815 | — | 497,382 | 9,552,575 | ||||||||||||||
Commercial Real Estate | 190,230,745 | 21,874,264 | 19,783,230 | 44,429,658 | 276,317,897 | ||||||||||||||
Total | $ | 344,489,484 | $ | 22,480,884 | $ | 20,384,721 | $ | 55,008,300 | $ | 442,363,389 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||
Residential Real Estate | $ | — | $ | 1,794,644 | $ | 3,757,801 | $ | 5,552,445 | $ | 85,125,180 | $ | 90,677,625 | |||||||||||
Consumer | 1,862,611 | 211,756 | 646,136 | 2,720,503 | 53,874,590 | 56,595,093 | |||||||||||||||||
Commercial Business | 445,113 | 36,079 | 86,991 | 568,183 | 7,495,718 | 8,063,901 | |||||||||||||||||
Commercial Real Estate | 2,432,423 | 4,852,227 | 13,913,190 | 21,197,840 | 229,726,254 | 250,924,094 | |||||||||||||||||
Total | $ | 4,740,147 | $ | 6,894,706 | $ | 18,404,118 | $ | 30,038,971 | $ | 376,221,742 | $ | 406,260,713 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||
Residential Real Estate | $ | 2,778,235 | $ | 742,345 | $ | 3,638,929 | $ | 7,159,509 | $ | 90,648,408 | $ | 97,807,917 | |||||||||||
Consumer | 659,028 | 352,421 | 620,358 | 1,631,807 | 57,053,193 | 58,685,000 | |||||||||||||||||
Commercial Business | 174,420 | 209,418 | 20,808 | 404,646 | 9,147,929 | 9,552,575 | |||||||||||||||||
Commercial Real Estate | 18,332,136 | 4,682,891 | 18,378,165 | 41,393,192 | 234,924,705 | 276,317,897 | |||||||||||||||||
Total | $ | 21,943,819 | $ | 5,987,075 | $ | 22,658,260 | $ | 50,589,154 | $ | 391,774,235 | $ | 442,363,389 |
At December 31, 2012 | At March 31, 2012 | $ | % | |||||||||||||||||
Amount | Percent (1) | Amount | Percent (1) | Increase (Decrease) | Increase (Decrease) | |||||||||||||||
Non-accrual Loans: | ||||||||||||||||||||
Residential Real Estate | $ | 3,757,801 | 0.9 | % | $ | 3,638,929 | 0.8 | % | $ | 118,872 | 3.3 | % | ||||||||
Commercial Business | 86,991 | — | 20,808 | — | 66,183 | 318.1 | ||||||||||||||
Commercial Real Estate | 13,913,190 | 3.4 | 18,378,165 | 4.2 | (4,464,975 | ) | (24.3 | ) | ||||||||||||
Consumer | 646,136 | 0.2 | 620,358 | 0.1 | 25,778 | 4.2 | ||||||||||||||
Total Non- accrual Loans | $ | 18,404,118 | 4.5 | % | $ | 22,658,260 | 5.1 | % | $ | (4,254,142 | ) | (18.8 | )% |
For the Nine Months Ended December 31, 2012 | ||||||||||||||||||||
Residential Real Estate | Consumer | Commercial Business | Commercial Real Estate | Total | ||||||||||||||||
Beginning Balance | $ | 1,928,625 | $ | 1,498,111 | $ | 644,855 | $ | 10,543,607 | $ | 14,615,198 | ||||||||||
Provision | 183,236 | (227,872 | ) | 175,141 | 1,844,495 | 1,975,000 | ||||||||||||||
Charge-Offs | (647,161 | ) | (286,612 | ) | (209,898 | ) | (6,278,722 | ) | (7,422,393 | ) | ||||||||||
Recoveries | 56,859 | 17,644 | 8,821 | 2,067,242 | 2,150,566 | |||||||||||||||
Ending Balance | $ | 1,521,559 | $ | 1,001,271 | $ | 618,919 | $ | 8,176,622 | $ | 11,318,371 |
For the Year Ended March 31, 2012 | ||||||||||||||||||||
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 | 789,365 | 1,570,350 | 114,169 | 6,176,116 | 8,650,000 | |||||||||||||||
Charge-Offs | (563,604 | ) | (1,250,573 | ) | (408,138 | ) | (4,421,519 | ) | (6,643,834 | ) | ||||||||||
Recoveries | — | 56,279 | 14,675 | 36,278 | 107,232 | |||||||||||||||
Ending Balance | $ | 1,928,625 | $ | 1,498,111 | $ | 644,855 | $ | 10,543,607 | $ | 14,615,198 |
Allowance For Loan Losses | ||||||||||||
December 31, 2012 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | — | $ | 1,521,559 | $ | 1,521,559 | ||||||
Consumer | — | 1,001,271 | 1,001,271 | |||||||||
Commercial Business | — | 618,919 | 618,919 | |||||||||
Commercial Real Estate | 440,000 | 7,736,622 | 8,176,622 | |||||||||
Total | $ | 440,000 | $ | 10,878,371 | $ | 11,318,371 |
Allowance For Loan Losses | ||||||||||||
March 31, 2012 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | 155,000 | $ | 1,773,625 | $ | 1,928,625 | ||||||
Consumer | 19,568 | 1,478,543 | 1,498,111 | |||||||||
Commercial Business | 148,610 | 496,245 | 644,855 | |||||||||
Commercial Real Estate | 1,313,670 | 9,229,937 | 10,543,607 | |||||||||
Total | $ | 1,636,848 | $ | 12,978,350 | $ | 14,615,198 |
Loans Receivable | ||||||||||||
December 31, 2012 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | 4,500,902 | $ | 86,176,723 | $ | 90,677,625 | ||||||
Consumer | 322,588 | 56,272,505 | 56,595,093 | |||||||||
Commercial Business | 7,853 | 8,056,048 | 8,063,901 | |||||||||
Commercial Real Estate | 35,115,195 | 215,808,899 | 250,924,094 | |||||||||
Total | $ | 39,946,538 | $ | 366,314,175 | $ | 406,260,713 |
Loans Receivable | ||||||||||||
March 31, 2012 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | 3,544,061 | $ | 94,263,856 | $ | 97,807,917 | ||||||
Consumer | 1,849,046 | 56,835,954 | 58,685,000 | |||||||||
Commercial Business | 172,362 | 9,380,213 | 9,552,575 | |||||||||
Commercial Real Estate | 35,231,717 | 241,086,180 | 276,317,897 | |||||||||
Total | $ | 40,797,186 | $ | 401,566,203 | $ | 442,363,389 |
December 31, 2012 | ||||||||||||||||||||
Impaired Loans | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||||||
Residential Real Estate | $ | 4,500,902 | $ | 4,611,873 | $ | — | $ | 4,531,543 | $ | 130,896 | ||||||||||
Consumer Loans | 322,588 | 386,588 | — | 342,916 | 28,419 | |||||||||||||||
Commercial Business | 7,853 | 7,853 | — | 12,236 | — | |||||||||||||||
Commercial Real Estate | 31,808,577 | 35,373,833 | — | 32,963,079 | 1,036,344 | |||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||
Residential Real Estate | — | — | — | — | — | |||||||||||||||
Consumer Loans | — | — | — | — | — | |||||||||||||||
Commercial Business | — | — | — | — | — | |||||||||||||||
Commercial Real Estate | 3,306,618 | 4,766,031 | 440,000 | 3,705,660 | — | |||||||||||||||
Total | ||||||||||||||||||||
Residential Real Estate | 4,500,902 | 4,611,873 | — | 4,531,543 | 130,896 | |||||||||||||||
Consumer Loans | 322,588 | 386,588 | — | 342,916 | 28,419 | |||||||||||||||
Commercial Business | 7,853 | 7,853 | — | 12,236 | — | |||||||||||||||
Commercial Real Estate | 35,115,195 | 40,139,864 | 440,000 | 36,668,739 | 1,036,344 | |||||||||||||||
Total | $ | 39,946,538 | $ | 45,146,178 | $ | 440,000 | $ | 41,555,434 | $ | 1,195,659 |
March 31, 2012 | ||||||||||||||||||||
Impaired Loans | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||||||
Residential Real Estate | $ | 2,201,560 | $ | 2,456,960 | $ | — | $ | 2,066,066 | $ | 65,818 | ||||||||||
Consumer Loans | 1,829,478 | 1,879,478 | — | 2,398,298 | 86,180 | |||||||||||||||
Commercial Business | 23,752 | 47,752 | — | 294,894 | 1,677 | |||||||||||||||
Commercial Real Estate | 27,425,873 | 29,175,328 | — | 24,020,047 | 1,186,679 | |||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||
Residential Real Estate | 1,342,501 | 1,954,501 | 155,000 | 586,109 | 6,137 | |||||||||||||||
Consumer Loans | 19,568 | 60,668 | 19,568 | 28,181 | — | |||||||||||||||
Commercial Business | 148,610 | 148,610 | 148,610 | 207,135 | 5,608 | |||||||||||||||
Commercial Real Estate | 7,805,844 | 9,945,912 | 1,313,670 | 4,687,210 | 228,483 | |||||||||||||||
Total | ||||||||||||||||||||
Residential Real Estate | 3,544,061 | 4,411,461 | 155,000 | 2,652,175 | 71,955 | |||||||||||||||
Consumer Loans | 1,849,046 | 1,940,146 | 19,568 | 2,426,479 | 86,180 | |||||||||||||||
Commercial Business | 172,362 | 196,362 | 148,610 | 502,029 | 7,285 | |||||||||||||||
Commercial Real Estate | 35,231,717 | 39,121,240 | 1,313,670 | 28,707,257 | 1,415,162 | |||||||||||||||
Total | $ | 40,797,186 | $ | 45,669,209 | $ | 1,636,848 | $ | 34,287,940 | $ | 1,580,582 |
For the Nine Months Ended December 31, 2012 | For the Year Ended March 31, 2012 | |||||||||||||||||||||
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 | — | — | — | 1 | 15,358 | 15,358 | ||||||||||||||||
Commercial Business | — | — | — | — | — | — | ||||||||||||||||
Commercial Real Estate | 1 | 257,452 | 257,452 | 14 | 11,988,576 | 11,988,576 | ||||||||||||||||
Total | 1 | 257,452 | 257,452 | 15 | $ | 12,003,934 | $ | 12,003,934 |
For the Nine Months Ended December 31, 2012 | For the Year Ended March 31, 2012 | ||||||||||||
Troubled Debt Restructurings That Subsequently Defaulted During the Period | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | |||||||||
Residential Real Estate | — | $ | — | — | $ | — | |||||||
Consumer Loans | — | — | — | — | |||||||||
Commercial Business | — | — | — | — | |||||||||
Commercial Real Estate | 4 | 880,745 | — | — | |||||||||
Total | 4 | $ | 880,745 | — | $ | — |
December 31, | March 31, | ||||||
2012 | 2012 | ||||||
Land | $ | 5,471,503 | $ | 5,471,503 | |||
Buildings And Improvements | 17,591,652 | 17,570,577 | |||||
Furniture And Equipment | 10,684,296 | 11,180,104 | |||||
Construction In Progress | 77,058 | 83,749 | |||||
Total Premises And Equipment | 33,824,509 | 34,305,933 | |||||
Less Accumulated Depreciation | (15,906,612 | ) | (15,579,634 | ) | |||
Total Premises And Equipment, Net | $ | 17,917,897 | $ | 18,726,299 |
2013 | $ | 413,520 | |
2014 | 415,125 | ||
2015 | 357,141 | ||
2016 | 299,157 | ||
2017 | 261,665 | ||
Thereafter | 1,156,558 | ||
Total Future Minimum Payments | $ | 2,903,166 |
December 31, | March 31, | ||||||
2012 | 2012 | ||||||
Customer List | |||||||
Balance At Beginning Of Year | $ | 99,477 | $ | 149,481 | |||
Amortization | 37,503 | 50,004 | |||||
Balance At End Of Year | 61,974 | 99,477 | |||||
Employment Contracts | |||||||
Balance At Beginning Of Year | — | 10,019 | |||||
Amortization | — | 10,019 | |||||
Balance At End Of Year | — | — | |||||
Total Intangibles | 61,974 | 99,477 | |||||
Goodwill | 1,199,754 | 1,199,754 | |||||
Total | $ | 1,261,728 | $ | 1,299,231 |
2013 | $ | 50,004 | |
2014 | 11,970 | ||
Total | $ | 61,974 |
December 31, | March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Balance, Beginning Of Period | $ | 14,160,099 | $ | 14,433,853 | $ | 10,773,050 | |||||
Additions | 2,456,478 | 4,276,679 | 15,581,977 | ||||||||
Capital Improvements | — | 36,877 | 549,458 | ||||||||
Sales | (6,929,152 | ) | (3,978,390 | ) | (11,061,070 | ) | |||||
Write Downs | (2,933,000 | ) | (608,920 | ) | (1,409,562 | ) | |||||
Balance, End Of Period | $ | 6,754,425 | $ | 14,160,099 | $ | 14,433,853 |
At December 31, 2012 | At March 31, 2012 | ||||||||||||||||
Weighted Rate | Interest Rate Range | Weighted Rate | Interest Rate Range | ||||||||||||||
Checking Accounts | $ | 126,740,707 | 0.06 | % | 0.00-0.20% | $ | 124,750,127 | 0.11 | % | 0.00-0.30% | |||||||
Money Market Accounts | 234,382,412 | 0.38 | % | 0.20-0.40% | 224,195,659 | 0.55 | % | 0.25-0.60% | |||||||||
Statement Savings Accounts | 22,411,240 | 0.20 | % | 0.00-0.20% | 22,348,787 | 0.20 | % | 0.00-0.25% | |||||||||
Total | $ | 383,534,359 | 0.26 | % | 0.00-0.40% | $ | 371,294,573 | 0.38 | % | 0.00-0.60% | |||||||
Certificate Accounts: | |||||||||||||||||
0.00 – 1.99% | 255,422,955 | 267,556,217 | |||||||||||||||
2.00 – 2.99% | 32,975,486 | 49,260,643 | |||||||||||||||
3.00 – 3.99% | 2,380,728 | 2,936,931 | |||||||||||||||
4.00 – 4.99% | 1,523,474 | 4,021,999 | |||||||||||||||
5.00 – 5.99% | 501,651 | 1,130,693 | |||||||||||||||
Total | 292,804,294 | 1.11 | % | 0.15-5.22% | 324,906,483 | 1.36 | % | 0.20-5.50% | |||||||||
Total Deposits | $ | 676,338,653 | 0.63 | % | 0.00-5.22% | $ | 696,201,056 | 0.84 | % | 0.00-5.50% |
December 31, | March 31, | ||||||
2012 | 2012 | ||||||
Within 1 Year | $ | 182,062,395 | $ | 215,738,167 | |||
After 1 Year, Within 2 Years | 55,389,195 | 53,231,294 | |||||
After 2 Years, Within 3 Years | 22,172,081 | 14,494,174 | |||||
After 3 Years, Within 4 Years | 24,584,913 | 24,155,416 | |||||
After 4 Years, Within 5 Years | 8,595,710 | 17,287,432 | |||||
Thereafter | — | — | |||||
$ | 292,804,294 | $ | 324,906,483 |
December 31, 2012 | ||||||
Year Ending December 31 | Amount | Weighted Rate | ||||
2013 | $ | 22,100,000 | 2.92 | % | ||
2014 | 30,257,182 | 3.33 | % | |||
2015 | 15,000,000 | 4.01 | % | |||
2016 | 20,000,000 | 4.60 | % | |||
2017 | 12,900,000 | 4.38 | % | |||
Thereafter | 5,000,000 | 3.39 | % | |||
$ | 105,257,182 | 3.72 | % |
March 31, 2012 | ||||||
Year Ending March 31 | Amount | Weighted Rate | ||||
2012 | $ | — | — | % | ||
2013 | 18,900,000 | 2.70 | % | |||
2014 | 30,000,000 | 3.45 | % | |||
2015 | 20,269,802 | 3.01 | % | |||
2016 | 20,000,000 | 4.12 | % | |||
2017 | 15,000,000 | 4.66 | % | |||
Thereafter | 17,900,000 | 4.10 | % | |||
$ | 122,069,802 | 3.62 | % |
As of December 31, 2012 | ||||||||||
Borrow Date | Maturity Date | Amount | Int. Rate | Type | Call Dates | |||||
11/23/2005 | 11/23/2015 | $5,000,000 | 3.933% | Multi-Call | 05/23/08 and quarterly thereafter | |||||
7/11/2006 | 7/11/2016 | 5,000,000 | 4.800% | Multi-Call | 07/11/08 and quarterly thereafter | |||||
11/29/2006 | 11/29/2016 | 5,000,000 | 4.025% | Multi-Call | 05/29/08 and quarterly thereafter | |||||
5/24/2007 | 5/24/2017 | 7,900,000 | 4.375% | Multi-Call | 05/27/08 and quarterly thereafter | |||||
7/25/2007 | 7/25/2017 | 5,000,000 | 4.396% | Multi-Call | 07/25/08 and quarterly thereafter | |||||
8/28/2008 | 8/28/2013 | 5,000,000 | 3.113% | Multi-Call | 08/30/10 and quarterly thereafter |
As of March 31, 2012 | ||||||||||
Borrow Date | Maturity Date | Amount | Int. Rate | Type | Call Dates | |||||
11/23/2005 | 11/23/2015 | $5,000,000 | 3.933% | Multi-Call | 05/23/08 and quarterly thereafter | |||||
7/11/2006 | 7/11/2016 | 5,000,000 | 4.800% | Multi-Call | 07/11/08 and quarterly thereafter | |||||
11/29/2006 | 11/29/2016 | 5,000,000 | 4.025% | Multi-Call | 05/29/08 and quarterly thereafter | |||||
5/24/2007 | 5/24/2017 | 7,900,000 | 4.375% | Multi-Call | 05/27/08 and quarterly thereafter | |||||
7/25/2007 | 7/25/2017 | 5,000,000 | 4.396% | Multi-Call | 07/25/08 and quarterly thereafter | |||||
8/28/2008 | 8/28/2013 | 5,000,000 | 3.113% | Multi-Call | 08/30/10 and quarterly thereafter |
For the Nine Months Ended December 31, | For the Years Ended March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 348,588 | $ | 1,814,394 | $ | 1,755,393 | |||||
State | 91,108 | 226,970 | 336,011 | ||||||||
Total Current Tax Expense | 439,696 | 2,041,364 | 2,091,404 | ||||||||
Deferred: | |||||||||||
Federal | 266,784 | (706,857 | ) | (1,025,678 | ) | ||||||
State | (2,721 | ) | 576,774 | (107,593 | ) | ||||||
Total Deferred Tax Expense | 264,063 | (130,083 | ) | (1,133,271 | ) | ||||||
Total Income Tax Expense | $ | 703,759 | $ | 1,911,281 | $ | 958,133 |
For the Nine Months Ended December 31, | For the Years Ended March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Tax At Statutory Income Tax Rate | $ | 903,960 | $ | 1,260,263 | $ | 952,356 | |||||
State Tax And Other | (212,308 | ) | 10,480 | (23,555 | ) | ||||||
Write-down Of State Deferred Tax Asset | — | 625,000 | — | ||||||||
Valuation Allowance | 12,107 | 15,538 | 29,332 | ||||||||
Total Income Tax Expense | $ | 703,759 | $ | 1,911,281 | $ | 958,133 |
At December 31, | At March 31, | ||||||
2012 | 2012 | ||||||
Deferred Tax Assets: | |||||||
Deferred Compensation | $ | 528,847 | $ | 491,872 | |||
Provision For Loan Losses | 3,891,083 | 5,023,701 | |||||
Other Real Estate Owned | 1,452,449 | 763,796 | |||||
Net Fees Deferred For Financial Reporting | 121,842 | 126,811 | |||||
Non-accrual Interest | 411,761 | 412,775 | |||||
Net Operating Losses | 232,837 | 220,730 | |||||
Other | 61,129 | 58,467 | |||||
Total Gross Deferred Tax Assets | 6,699,948 | 7,098,152 | |||||
Less: Valuation Allowance | (232,837 | ) | (220,730 | ) | |||
Net Deferred Tax Assets | 6,467,111 | 6,877,422 | |||||
Deferred Tax Liabilities: | |||||||
FHLB Stock Basis Over Tax Basis | 114,576 | 114,568 | |||||
Depreciation | 362,221 | 480,812 | |||||
Other | 63,695 | 73,547 | |||||
Intangibles | 19,292 | 37,105 | |||||
Unrealized Gain on Securities Available for Sale | 4,548,752 | 3,999,426 | |||||
Total Gross Deferred Tax Liability | 5,108,536 | 4,705,458 | |||||
Net Deferred Tax Asset | $ | 1,358,575 | $ | 2,171,964 |
Actual | For Capital Adequacy | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
SECURITY FEDERAL CORP. | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 68,639 | 16.5 | % | $ | 16,619 | 4.0 | % | N/A | N/A | ||||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 84,148 | 20.3 | % | 33,237 | 8.0 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 68,639 | 7.7 | % | 35,552 | 4.0 | % | N/A | N/A | ||||||||||||
SECURITY FEDERAL BANK | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 80,822 | 19.5 | % | $ | 16,606 | 4.0 | % | $ | 24,909 | 6.0 | % | ||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 86,012 | 20.7 | % | 33,212 | 8.0 | % | 41,515 | 10.0 | % | |||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 80,822 | 9.1 | % | 35,541 | 4.0 | % | 44,426 | 5.0 | % | |||||||||||
March 31, 2012 | ||||||||||||||||||||
SECURITY FEDERAL CORP. | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 67,360 | 14.9 | % | $ | 18,031 | 4.0 | % | N/A | N/A | ||||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 83,666 | 18.6 | % | 36,314 | 8.0 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 67,360 | 7.4 | % | 36,314 | 4.0 | % | N/A | N/A | ||||||||||||
SECURITY FEDERAL BANK | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 78,555 | 17.4 | % | $ | 18,022 | 4.0 | % | $ | 27,033 | 6.0 | % | ||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 84,298 | 18.7 | % | 36,043 | 8.0 | % | 45,054 | 10.0 | % | |||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 78,555 | 8.7 | % | 36,303 | 4.0 | % | 45,379 | 5.0 | % |
December 31, | March 31, | |||||||||||||||||||
2012 | 2012 | 2011 | ||||||||||||||||||
Shares | Weighted Avg. Exercise Price | Shares | Weighted Avg. Exercise Price | Shares | Weighted Avg. Exercise Price | |||||||||||||||
Balance, Beginning of Period | 72,900 | $ | 22.62 | 81,400 | $ | 22.51 | 90,900 | $ | 22.57 | |||||||||||
Options Granted | — | — | — | — | — | — | ||||||||||||||
Options Exercised | — | — | — | — | — | — | ||||||||||||||
Options Forfeited | 4,500 | 22.58 | 8,500 | 21.72 | 8,500 | 23.09 | ||||||||||||||
Balance, End of Period | 68,400 | $ | 22.63 | 72,900 | $ | 22.62 | 81,400 | $ | 22.51 | |||||||||||
Total Intrinsic Value Of Options Exercised During The Year | — | — | — | |||||||||||||||||
Weighted-Average Fair Value Of Options Granted During The Year | — | — | — | |||||||||||||||||
Options Exercisable | 43,800 | $ | 22.14 | 43,600 | $ | 22.05 | 49,900 | $ | 21.91 | |||||||||||
Weighted-Average Remaining Life Of Exercisable Options | 1.8 years | 2.5 years | 3.4 years | |||||||||||||||||
Options Available For Grant | 50,000 | 50,000 | 50,000 |
Grant Date | Outstanding Options | Option Price | Expiration Date | |||
09/01/03 | 2,400 | $24.00 | 09/01/13 | |||
12/01/03 | 3,000 | $23.65 | 12/01/13 | |||
01/01/04 | 5,000 | $24.22 | 01/01/14 | |||
03/08/04 | 7,000 | $21.43 | 03/08/14 | |||
06/07/04 | 2,000 | $24.00 | 06/07/14 | |||
01/01/05 | 18,000 | $20.55 | 01/01/15 | |||
01/01/06 | 4,000 | $23.91 | 01/01/16 | |||
08/24/06 | 3,500 | $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 | 14,000 | $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 |
For the Nine Months Ended December 31, | For the Years Ended March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Balance, Beginning of Year | $ | 315,338 | $ | 356,345 | $ | 460,115 | |||||
New Loans | 5,364 | 7,798 | 43,620 | ||||||||
Less Loan Payments | 47,372 | 48,805 | 147,390 | ||||||||
Balance, End of Year | $ | 273,330 | $ | 315,338 | $ | 356,345 |
At December 31, | At March 31, | ||||||
2012 | 2012 | ||||||
Assets: | |||||||
Cash | $ | 4,098,035 | $ | 5,471,308 | |||
Investment Securities, Available For Sale | 75,225 | 75,750 | |||||
Investment in Security Federal Statutory Trust | 155,000 | 155,000 | |||||
Investment In Security Federal Bank | 89,532,985 | 86,405,275 | |||||
Accounts Receivable And Other Assets | 13,766 | 69,787 | |||||
Total Assets | $ | 93,875,011 | $ | 92,177,120 | |||
Liabilities And Shareholders’ Equity: | |||||||
Accounts Payable And Other Liabilities | $ | 44,827 | $ | 167,534 | |||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | |||||
Senior Convertible Debentures | 6,084,000 | 6,084,000 | |||||
Shareholders’ Equity | 82,591,184 | 80,770,586 | |||||
Total Liabilities And Shareholders’ Equity | $ | 93,875,011 | $ | 92,177,120 |
For the Nine Months Ended December 31, | For the Years Ended March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Income: | |||||||||||
Equity In Earnings Of Security Federal Bank | $ | 2,229,630 | $ | 2,095,707 | $ | 2,029,275 | |||||
Interest Income | 22,941 | 78,667 | 91,806 | ||||||||
Miscellaneous Income | — | 34,338 | 24,803 | ||||||||
Total Income | 2,252,571 | 2,208,712 | 2,145,884 | ||||||||
Expenses: | |||||||||||
Interest Expense | 449,049 | 653,727 | 720,081 | ||||||||
Mandatorily Redeemable Financial Instrument Valuation (Income) Expense | — | (50,000 | ) | (196,000 | ) | ||||||
Other Expenses | 16,814 | 24,329 | 37,757 | ||||||||
Total Expenses | 465,863 | 628,056 | 561,838 | ||||||||
Income Before Income Taxes | 1,786,708 | 1,580,656 | 1,584,046 | ||||||||
Income Tax Benefit | (168,241 | ) | (214,719 | ) | (258,867 | ) | |||||
Net Income | 1,954,949 | 1,795,375 | 1,842,913 | ||||||||
Preferred Stock Dividends | 330,000 | 440,000 | 666,453 | ||||||||
Accretion of Preferred Stock to Redemption Value | — | — | 18,816 | ||||||||
Net Income Available to Common Shareholders | $ | 1,624,949 | $ | 1,355,375 | $ | 1,157,644 |
For the Nine Months Ended December 31, | For the Years Ended March 31, | ||||||||||
2012 | 2012 | 2011 | |||||||||
Operating Activities: | |||||||||||
Net Income | $ | 1,954,949 | $ | 1,795,375 | $ | 1,842,913 | |||||
Adjustments To Reconcile Net Income To Net Cash Used In Operating Activities: | |||||||||||
Equity In Earnings Of Security Federal Bank | (2,229,630 | ) | (2,095,707 | ) | (2,029,275 | ) | |||||
Stock Compensation Expense | 4,472 | 33,123 | 34,424 | ||||||||
Mandatorily Redeemable Financial Instrument Valuation Income | — | (50,000 | ) | (196,000 | ) | ||||||
(Increase) Decrease In Accounts Receivable And Other Assets | 56,203 | (32,154 | ) | 214 | |||||||
Decrease In Accounts Payable | (122,707 | ) | (5,633 | ) | (1,236 | ) | |||||
Net Cash Used In Operating Activities | (336,713 | ) | (354,996 | ) | (348,960 | ) | |||||
Investing Activities: | |||||||||||
Decrease (Increase) In Loans Receivable | — | 1,786,294 | (1,786,294 | ) | |||||||
Additional Investment in Security Federal Bank | — | — | (4,000,000 | ) | |||||||
Net Cash Provided By (Used In) Investing Activities | — | 1,786,294 | (5,786,294 | ) | |||||||
Financing Activities: | |||||||||||
Proceeds From Issuance Of Common Stock | — | — | 4,829,060 | ||||||||
Proceeds From Issuance Of Preferred Stock | — | — | 22,000,000 | ||||||||
Redemption Of Preferred Stock | — | — | (18,000,000 | ) | |||||||
Dividends Paid To Shareholders-Preferred Stock | (330,000 | ) | (440,000 | ) | (726,222 | ) | |||||
Dividends Paid To Shareholders-Common Stock | (706,560 | ) | (942,027 | ) | (858,184 | ) | |||||
Net Cash Provided By (Used In) Financing Activities | (1,036,560 | ) | (1,382,027 | ) | 7,244,654 | ||||||
Net Increase (Decrease) In Cash | (1,373,273 | ) | 49,271 | 1,109,400 | |||||||
Cash At Beginning Of Period | 5,471,308 | 5,422,037 | 4,312,637 | ||||||||
Cash At End Of Period | $ | 4,098,035 | $ | 5,471,308 | $ | 5,422,037 |
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. |
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 | $ | — | $ | 6,164,670 | $ | — | |||||
SBA Bonds | — | 96,462,270 | — | ||||||||
Tax Exempt Municipal Bonds | — | 37,482,148 | — | ||||||||
Mortgage-Backed Securities | — | 214,731,903 | — | ||||||||
Equity Securities | — | 75,225 | — | ||||||||
Total | $ | — | $ | 354,916,216 | $ | — |
Assets: | Quoted Market Price In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
FHLB Securities | $ | — | $ | 2,698,894 | $ | — | |||||
FNMA and FHLMC Bonds | — | 2,921,851 | — | ||||||||
SBA Bonds | — | 86,278,802 | — | ||||||||
Tax Exempt Municipal Bonds | — | 24,125,725 | — | ||||||||
Mortgage-Backed Securities | — | 237,853,835 | — | ||||||||
Equity Securities | — | 75,750 | — | ||||||||
Total | $ | — | $ | 353,954,857 | $ | — |
Assets: | Level 1 | Level 2 | Level 3 | At December 31, 2012 | |||||||||||
Mortgage Loans Held For Sale | $ | — | $ | 4,770,760 | $ | — | $ | 4,770,760 | |||||||
Collateral Dependent Impaired Loans (1) | — | — | 39,506,538 | 39,506,538 | |||||||||||
Foreclosed Assets | — | — | 6,754,425 | 6,754,425 | |||||||||||
Total | $ | — | $ | 4,770,760 | $ | 46,260,963 | $ | 51,031,723 |
Level 1 | Level 2 | Level 3 | Balance At March 31, 2012 | ||||||||||||
Mortgage Loans Held For Sale | $ | — | $ | 2,671,771 | $ | — | $ | 2,671,771 | |||||||
Collateral Dependent Impaired Loans (1) | — | — | 39,160,338 | 39,160,338 | |||||||||||
Foreclosed Assets | — | — | 14,160,099 | 14,160,099 | |||||||||||
Total | $ | — | $ | 2,671,771 | $ | 53,320,437 | $ | 55,992,208 |
Fair Value | Significant | ||||||||
December 31, | Valuation | Unobservable | |||||||
2012 | Technique | Inputs | Range | ||||||
Collateral Dependent Impaired Loans | $ | 39,506,538 | Appraised Value | Discount Rates/ Discounts to Appraised Values | 0% - 50% | ||||
Foreclosed Assets | 6,754,425 | Appraised Value/Comparable Sales | Discount Rates/ Discounts to Appraised Values | 0% - 89% |
December 31, 2012 | |||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||
(In Thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash And Cash Equivalents | $ | 7,904 | $ | 7,904 | $ | 7,904 | $ | — | $ | — | |||||||||
Certificates of Deposits With Other Banks | 1,729 | 1,729 | — | 1,729 | — | ||||||||||||||
Investment And Mortgage-Backed Securities | 430,988 | 434,588 | — | 434,588 | — | ||||||||||||||
Loans Receivable, Net | 397,706 | 397,360 | — | — | 397,360 | ||||||||||||||
FHLB Stock | 6,179 | 6,179 | 6,179 | — | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Checking, Savings, And Money Market Accounts | $ | 383,534 | $ | 383,534 | $ | 383,534 | $ | — | $ | — | |||||||||
Certificate Accounts | 292,804 | 295,734 | — | 295,734 | — | ||||||||||||||
Advances From FHLB | 105,257 | 113,471 | — | 113,471 | — | ||||||||||||||
Other Borrowed Money | 9,317 | 9,317 | 9,317 | — | — | ||||||||||||||
Senior Convertible Debentures | 5,155 | 5,155 | — | 5,155 | — | ||||||||||||||
Junior Subordinated Debentures | 6,084 | 6,084 | — | 6,084 | — |
March 31, 2012 | ||||||||
Carrying Amount | Estimated Fair Value | |||||||
(In Thousands) | ||||||||
Financial Assets: | ||||||||
Cash And Cash Equivalents | $ | 9,331 | $ | 9,331 | ||||
Certificates of Deposits With Other Banks | 1,727 | 1,727 | ||||||
Investment And Mortgage-Backed Securities | 421,631 | 423,921 | ||||||
Loans Receivable, Net | 428,511 | 427,212 | ||||||
FHLB Stock | 8,471 | 8,471 | ||||||
Financial Liabilities: | ||||||||
Deposits: | ||||||||
Checking, Savings, And Money Market Accounts | $ | 371,295 | $ | 371,295 | ||||
Certificate Accounts | 324,906 | 327,117 | ||||||
Advances From FHLB | 122,070 | 131,679 | ||||||
Other Borrowed Money | 9,801 | 9,801 | ||||||
Senior Convertible Debentures | 6,084 | 6,084 | ||||||
Junior Subordinated Debentures | 5,155 | 5,155 |
Quarter ended | ||||||||||||
Nine Months Ended December 31, 2012 | June 30, 2012 | Sept. 30, 2012 | Dec. 31, 2012 | |||||||||
Interest Income | $ | 8,476 | $ | 8,271 | $ | 8,044 | ||||||
Interest Expense | 2,619 | 2,463 | 2,378 | |||||||||
Net Interest Income | 5,857 | 5,808 | 5,666 | |||||||||
Provision For Loan Losses | 725 | 300 | 950 | |||||||||
Net Interest Income After Provision For Loan Losses | 5,132 | 5,508 | 4,716 | |||||||||
Non-interest Income | 1,184 | 1,478 | 1,703 | |||||||||
Non-interest Expense | 5,298 | 6,071 | 5,693 | |||||||||
Income Before Income Tax | 1,018 | 915 | 726 | |||||||||
Provision For Income taxes | 287 | 245 | 172 | |||||||||
Net Income | 731 | 670 | 554 | |||||||||
Preferred Stock Dividends | 110 | 110 | 110 | |||||||||
Net Income Available To Common Shareholders | $ | 621 | $ | 560 | $ | 444 | ||||||
Basic Net Income Per Common Share | $ | 0.21 | $ | 0.19 | $ | 0.15 | ||||||
Diluted Net Income Per Common Share | $ | 0.21 | $ | 0.19 | $ | 0.15 | ||||||
Basic Weighted Average Shares Outstanding | 2,944,001 | 2,944,001 | 2,944,001 | |||||||||
Diluted Weighted Average Shares Outstanding | 2,944,001 | 2,944,001 | 2,944,001 |
Quarter ended | |||||||||||||||
Year Ended March 31, 2012 | June 30, 2011 | Sept. 30, 2011 | Dec. 31, 2011 | Mar. 31, 2012 | |||||||||||
Interest Income | $ | 10,230 | $ | 9,880 | $ | 9,467 | $ | 8,952 | |||||||
Interest Expense | 3,349 | 3,260 | 2,974 | 2,814 | |||||||||||
Net Interest Income | 6,881 | 6,620 | 6,493 | 6,138 | |||||||||||
Provision For Loan Losses | 2,300 | 2,300 | 2,100 | 1,950 | |||||||||||
Net Interest Income After Provision For Loan Losses | 4,581 | 4,320 | 4,393 | 4,188 | |||||||||||
Non-interest Income | 1,271 | 1,492 | 2,563 | 1,614 | |||||||||||
Non-interest Expense | 5,160 | 5,197 | 5,235 | 5,125 | |||||||||||
Income Before Income Tax | 692 | 615 | 1,721 | 677 | |||||||||||
Provision For Income taxes | 231 | 197 | 1,235 | 247 | |||||||||||
Net Income | 461 | 418 | 486 | 430 | |||||||||||
Preferred Stock Dividends | 110 | 110 | 110 | 110 | |||||||||||
Net Income Available To Common Shareholders | 351 | 308 | 376 | 320 | |||||||||||
Basic Net Income Per Common Share | $ | 0.12 | $ | 0.10 | $ | 0.13 | $ | 0.11 | |||||||
Diluted Net Income Per Common Share | $ | 0.12 | $ | 0.10 | $ | 0.13 | $ | 0.11 | |||||||
Basic Weighted Average Shares Outstanding | 2,944,001 | 2,944,001 | 2,944,001 | 2,944,001 | |||||||||||
Diluted Weighted Average Shares Outstanding | 2,559,475 | 2,550,097 | 2,931,633 | 3,017,521 |
High | Low | |||
Year Ended March 31, 2012 | ||||
6/30/2011 | $10.80 | $10.70 | ||
9/30/2011 | $10.70 | $8.76 | ||
12/31/2011 | $9.57 | $7.16 | ||
3/31/2012 | $9.90 | $8.92 | ||
Nine Months Ended December 31, 2012 | ||||
6/30/2012 | $9.75 | $8.50 | ||
9/30/2012 | $9.00 | $8.50 | ||
12/31/2012 | $8.80 | $7.00 | ||
Parent | Subsidiary | State of Incorporation | Percentage of Ownership |
Security Federal Corporation | Security Federal Bank | United States | 100% |
Security Federal Statutory Trust | South Carolina | 100% | |
Security Federal Bank | Security Federal Insurance, Inc. | South Carolina | 100% |
Security Financial Services | South Carolina | 100% | |
Corporation |
1. | I have reviewed this transitional annual report on Form 10-K 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 periods 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 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 and Chief Executive Officer |
1. | I have reviewed this transitional annual report on Form 10-K 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 periods 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 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 Sections 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. |
/s/J. Chris Verenes | /s/Roy G. Lindburg | |
J. Chris Verenes | Roy G. Lindburg | |
President and Chief Executive Officer | Chief Financial Officer |
Date: March 25, 2013 | By: | /s/J. Chris Verenes | ||
J. Chris Verenes | ||||
Principal Executive Officer |
Date: March 25, 2013 | By: | /s/Roy G. Lindburg | ||
Roy G. Lindburg | ||||
Principal Financial Officer |
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