FROM: | TO: |
South Carolina | 57-0858504 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
YES | X | NO |
YES | NO | X |
CLASS: | OUTSTANDING SHARES AT: | SHARES: | ||
Common Stock, par value $0.01 per share | May 13, 2013 | 2,944,001 |
PART I. | FINANCIAL INFORMATION (UNAUDITED) | PAGE NO. | |
Item 1. | Financial Statements (Unaudited): | ||
Consolidated Balance Sheets at March 31, 2013 and December 31, 2012 | 3 | ||
Consolidated Statements of Income for the Three Months Ended March 31, 2013 and 2012 | 4 | ||
Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2013 and 2012 | 5 | ||
Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2013 and 2012 | 6 | ||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2013 and 2012 | 7 | ||
Notes to Consolidated Financial Statements | 9 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 32 | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 41 | |
Item 4. | Controls and Procedures | 41 | |
PART II. | OTHER INFORMATION | ||
Item 1. | Legal Proceedings | 42 | |
Item 1A. | Risk Factors | 42 | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 42 | |
Item 3. | Defaults Upon Senior Securities | 42 | |
Item 4. | Mine Safety Disclosures | 42 | |
Item 5. | Other Information | 42 | |
Item 6. | Exhibits | 42 | |
Signatures | 45 | ||
March 31, 2013 | December 31, 2012 | ||||||
ASSETS: | |||||||
Cash And Cash Equivalents | $ | 10,390,886 | $ | 7,903,950 | |||
Certificates Of Deposit With Other Banks | 1,729,015 | 1,728,567 | |||||
Investment And Mortgage-Backed Securities: | |||||||
Available For Sale: (Amortized Cost Of $345,275,616 And $342,936,153 At March 31, 2013 And December 31, 2012, Respectively) | 355,401,361 | 354,916,216 | |||||
Held To Maturity: (Fair Value Of $77,376,402 And $79,671,886 At March 31, 2013 And December 31, 2012, Respectively) | 74,196,803 | 76,072,262 | |||||
Total Investments And Mortgage-Backed Securities | 429,598,164 | 430,988,478 | |||||
Loans Receivable, Net: | |||||||
Held For Sale | 2,262,202 | 4,770,760 | |||||
Held For Investment: (Net Of Allowance Of $11,105,226 and $11,318,371 At March 31, 2013 And December 31, 2012, Respectively) | 380,754,963 | 392,935,060 | |||||
Total Loans Receivable, Net | 383,017,165 | 397,705,820 | |||||
Accrued Interest Receivable: | |||||||
Loans | 1,170,190 | 1,242,072 | |||||
Mortgage-Backed Securities | 817,368 | 901,423 | |||||
Investment Securities | 1,172,477 | 1,131,262 | |||||
Total Accrued Interest Receivable | 3,160,035 | 3,274,757 | |||||
Premises And Equipment, Net | 17,682,663 | 17,917,897 | |||||
Federal Home Loan Bank ("FHLB") Stock, At Cost | 5,223,294 | 6,178,700 | |||||
Repossessed Assets Acquired In Settlement Of Loans | 6,491,907 | 6,754,425 | |||||
Bank Owned Life Insurance | 11,240,305 | 11,151,305 | |||||
Intangible Assets, Net | 49,473 | 61,974 | |||||
Goodwill | 1,199,754 | 1,199,754 | |||||
Other Assets | 5,937,889 | 5,488,960 | |||||
Total Assets | $ | 875,720,550 | $ | 890,354,587 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||
Liabilities: | |||||||
Deposit Accounts | $ | 674,526,465 | $ | 676,338,653 | |||
Advances From FHLB | 93,152,933 | 105,257,182 | |||||
Other Borrowings | 9,406,169 | 9,317,244 | |||||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | |||||
Advance Payments By Borrowers For Taxes And Insurance | 362,865 | 189,424 | |||||
Senior Convertible Debentures | 6,084,000 | 6,084,000 | |||||
Other Liabilities | 5,276,559 | 5,420,600 | |||||
Total Liabilities | 793,963,991 | 807,762,103 | |||||
Shareholders' Equity: | |||||||
Serial Preferred Stock, $.01 Par Value; Authorized 200,000 Shares; Issued And Outstanding, 22,000 Shares At March 31, 2013 And December 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 March 31, 2013 And At December 31, 2012 | 31,449 | 31,449 | |||||
Warrant Issued In Conjunction With Serial Preferred Stock | 400,000 | 400,000 | |||||
Additional Paid-In Capital | 11,618,628 | 11,630,717 | |||||
Treasury Stock, At Cost (200,933 Shares At March 31, 2013 And December 31, 2012, Respectively) | (4,330,712 | ) | (4,330,712 | ) | |||
Accumulated Other Comprehensive Income | 6,281,625 | 7,431,310 | |||||
Retained Earnings | 45,755,569 | 45,429,720 | |||||
Total Shareholders' Equity | 81,756,559 | 82,592,484 | |||||
Total Liabilities And Shareholders' Equity | $ | 875,720,550 | $ | 890,354,587 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Interest Income: | ||||||||
Loans | $ | 5,584,886 | $ | 6,591,610 | ||||
Mortgage-Backed Securities | 1,361,176 | 1,772,204 | ||||||
Investment Securities | 755,871 | 586,977 | ||||||
Other | 2,336 | 784 | ||||||
Total Interest Income | 7,704,269 | 8,951,575 | ||||||
Interest Expense: | ||||||||
NOW And Money Market Accounts | 232,088 | 357,973 | ||||||
Statement Savings Accounts | 11,064 | 10,510 | ||||||
Certificate Accounts | 739,875 | 1,123,178 | ||||||
FHLB Advances And Other Borrowed Money | 983,105 | 1,171,487 | ||||||
Senior Convertible Debentures | 121,680 | 121,680 | ||||||
Junior Subordinated Debentures | 25,810 | 29,093 | ||||||
Total Interest Expense | 2,113,622 | 2,813,921 | ||||||
Net Interest Income | 5,590,647 | 6,137,654 | ||||||
Provision For Loan Losses | 1,145,381 | 1,950,000 | ||||||
Net Interest Income After Provision For Loan Losses | 4,445,266 | 4,187,654 | ||||||
Non-Interest Income: | ||||||||
Gain On Sale Of Investment Securities | 384,051 | 534,960 | ||||||
Gain On Sale Of Loans | 184,788 | 143,158 | ||||||
Service Fees On Deposit Accounts | 263,831 | 277,264 | ||||||
Commissions From Insurance Agency | 140,313 | 118,170 | ||||||
Trust Income | 135,000 | 126,000 | ||||||
Bank Owned Life Insurance Income | 105,000 | 105,000 | ||||||
Check Card Fee Income | 195,193 | 198,323 | ||||||
Grant Income | 416,000 | — | ||||||
Other | 120,806 | 111,612 | ||||||
Total Non-Interest Income | 1,944,982 | 1,614,487 | ||||||
General And Administrative Expenses: | ||||||||
Compensation And Employee Benefits | 2,821,375 | 2,740,079 | ||||||
Occupancy | 475,314 | 443,530 | ||||||
Advertising | 107,643 | 77,307 | ||||||
Depreciation And Maintenance Of Equipment | 439,172 | 428,726 | ||||||
Federal Deposit Insurance Corporation ("FDIC") Insurance Premiums | 167,722 | 138,821 | ||||||
Amortization Of Intangibles | 12,501 | 12,501 | ||||||
Net Cost Of Operation Of Other Real Estate Owned | 396,369 | 411,704 | ||||||
Other | 1,092,788 | 872,201 | ||||||
Total General And Administrative Expenses | 5,512,884 | 5,124,869 | ||||||
Income Before Income Taxes | 877,364 | 677,272 | ||||||
Provision For Income Taxes | 205,995 | 247,325 | ||||||
Net Income | 671,369 | 429,947 | ||||||
Preferred Stock Dividends | 110,000 | 110,000 | ||||||
Net Income Available To Common Shareholders | $ | 561,369 | $ | 319,947 | ||||
Net Income Per Common Share (Basic) | $ | 0.19 | $ | 0.11 | ||||
Net Income Per Common Share (Diluted) | $ | 0.19 | $ | 0.11 | ||||
Cash Dividend Per Share On Common Stock | $ | 0.08 | $ | 0.08 | ||||
Weighted Average Shares Outstanding (Basic) | 2,944,001 | 2,944,001 | ||||||
Weighted Average Shares Outstanding (Diluted) | 2,944,001 | 2,944,001 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Net Income | $ | 671,369 | $ | 429,947 | ||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized Gains (Losses) On Securities: | ||||||||
Unrealized Holding Gains (Losses) On Securities Available For Sale, Net Of Taxes Of $558,694 And $71,891 At March 31, 2013 And 2012, Respectively | (911,573 | ) | 448,971 | |||||
Reclassification Adjustment For Gains Included In Net Income, Net Of Taxes Of $145,939 And $203,285 At March 31, 2013 And 2012, Respectively | (238,112 | ) | (331,675 | ) | ||||
Other Comprehensive Income (Loss) | $ | (1,149,685 | ) | $ | 117,296 | |||
Comprehensive Income (Loss) | $ | (478,316 | ) | $ | 547,243 |
Preferred Stock | Warrants | Common Stock | Additional Paid – In Capital | Treasury Stock | Accumulated Other Comprehensive Income | Retained Earnings | Total | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,617,964 | $ | (4,330,712 | ) | $ | 6,416,277 | $ | 44,426,903 | $ | 80,561,881 | ||||||||||||||
Net Income | — | — | — | — | — | — | 429,947 | 429,947 | |||||||||||||||||||||||
Other Comprehensive Income, Net Of Tax | — | — | — | — | — | 117,296 | — | 117,296 | |||||||||||||||||||||||
Stock Compensation Expense | — | — | — | 8,281 | — | — | — | 8,281 | |||||||||||||||||||||||
Cash Dividends On Preferred | — | — | — | — | — | — | (110,000 | ) | (110,000 | ) | |||||||||||||||||||||
Cash Dividends On Common | — | — | — | — | — | — | (235,519 | ) | (235,519 | ) | |||||||||||||||||||||
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 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 | ||||||||||||||
Net Income | — | — | — | — | — | — | 671,369 | 671,369 | |||||||||||||||||||||||
Other Comprehensive Income, Net Of Tax | — | — | — | — | — | (1,149,685 | ) | — | (1,149,685 | ) | |||||||||||||||||||||
Stock Compensation Expense | — | — | — | (12,089 | ) | — | — | — | (12,089 | ) | |||||||||||||||||||||
Cash Dividends On Preferred | — | — | — | — | — | — | (110,000 | ) | (110,000 | ) | |||||||||||||||||||||
Cash Dividends On Common | — | — | — | — | — | — | (235,520 | ) | (235,520 | ) | |||||||||||||||||||||
Balance at March 31, 2013 | $ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,618,628 | $ | (4,330,712 | ) | $ | 6,281,625 | $ | 45,755,569 | $ | 81,756,559 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 671,369 | $ | 429,947 | |||
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities: | |||||||
Depreciation Expense | 342,063 | 372,692 | |||||
Amortization Of Intangible Assets | 12,501 | 12,501 | |||||
Stock Option Compensation Expense | (12,089 | ) | 8,281 | ||||
Discount Accretion And Premium Amortization | 1,889,488 | 1,720,153 | |||||
Provisions For Losses On Loans | 1,145,381 | 1,950,000 | |||||
Income From Bank Owned Life Insurance | (105,000 | ) | (105,000 | ) | |||
Gain On Sales Of Loans | (184,788 | ) | (143,158 | ) | |||
Gain On Sales Of Mortgage-Backed Securities | (384,051 | ) | (209,362 | ) | |||
Gain On Sales Of Investment Securities | — | (325,598 | ) | ||||
Loss On Sale Of Real Estate Owned | 501 | 19,286 | |||||
Write Down On Real Estate Owned | 264,378 | 200,000 | |||||
Amortization Of Deferred Fees On Loans | (3,369 | ) | (2,845 | ) | |||
Proceeds From Sale Of Loans Held For Sale | 9,596,054 | 10,842,803 | |||||
Origination Of Loans Held For Sale | (6,902,708 | ) | (7,740,325 | ) | |||
(Increase) Decrease In Accrued Interest Receivable: | |||||||
Loans | 71,882 | 125,079 | |||||
Mortgage-Backed Securities | 84,055 | (22,344 | ) | ||||
Investment Securities | (41,215 | ) | 245,526 | ||||
Increase In Advance Payments By Borrowers | 173,441 | 135,454 | |||||
Other, Net | 127,215 | (1,030,572 | ) | ||||
Net Cash Provided By Operating Activities | 6,745,108 | 6,482,518 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase Of Mortgage-Backed Securities Available For Sale | (23,258,838 | ) | (25,255,315 | ) | |||
Principal Repayments On Mortgage-Backed Securities Available For Sale | 15,733,179 | 12,648,907 | |||||
Purchase Of Mortgage-Backed Securities Held To Maturity | — | (4,334,682 | ) | ||||
Principal Repayments On Mortgage-Backed Securities Held To Maturity | 367,737 | 347,958 | |||||
Purchase Of Investment Securities Available For Sale | (21,368,984 | ) | (25,944,399 | ) | |||
Maturities Of Investment Securities Available For Sale | 4,322,231 | 10,099,410 | |||||
Purchase of Investment Securities Held To Maturity | (1,000,000 | ) | (8,540,310 | ) | |||
Maturities Of Investment Securities Held To Maturity | 2,288,499 | 3,240,074 | |||||
Proceeds From Sale of Investment Securities Available For Sale | — | 6,151,868 | |||||
Proceeds From Sale of Mortgage-Backed Securities Available For Sale | 20,946,735 | 7,352,190 | |||||
Purchase Of FHLB Stock | (445,500 | ) | — | ||||
Redemption Of FHLB Stock | 1,400,906 | — | |||||
Decrease In Loans Receivable | 8,759,426 | 11,176,834 | |||||
Capital Improvements To Repossessed Assets | — | (36,877 | ) |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Proceeds From Sale Of Repossessed Assets | 2,276,298 | 523,243 | |||||
Purchase And Improvement Of Premises And Equipment | (106,829 | ) | (4,629 | ) | |||
Net Cash Provided (Used) By Investing Activities | 9,914,860 | (12,575,728 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Increase (Decrease) In Deposit Accounts | (1,812,188 | ) | 6,470,068 | ||||
Proceeds From FHLB Advances | 13,900,000 | 25,800,001 | |||||
Repayment Of FHLB Advances | (26,004,249 | ) | (24,304,166 | ) | |||
Repayments Of Other Borrowings, Net | 88,925 | 6,654 | |||||
Dividends To Preferred Stock Shareholders | (110,000 | ) | (110,000 | ) | |||
Dividends To Common Stock Shareholders | (235,520 | ) | (235,519 | ) | |||
Net Cash Provided (Used) By Financing Activities | (14,173,032 | ) | 7,627,038 | ||||
Net Increase In Cash And Cash Equivalents | 2,486,936 | 1,533,828 | |||||
Cash And Cash Equivalents At Beginning Of Period | 7,903,950 | 7,797,544 | |||||
Cash And Cash Equivalents At End Of Period | $ | 10,390,886 | $ | 9,331,372 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash Paid During The Period For: | |||||||
Interest | $ | 2,096,095 | $ | 2,737,060 | |||
Income Taxes | $ | 10,419 | $ | 1,247,160 | |||
Supplemental Schedule Of Non Cash Transactions: | |||||||
Transfers From Loans Receivable To Other Real Estate Owned | $ | 2,278,659 | $ | 1,205,375 | |||
Unrealized Gains (Losses) On Securities Available For Sale, Net Of Taxes | $ | (911,573 | ) | $ | 448,971 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Earnings Available To Common Shareholders: | |||||||
Net Income | $671,369 | $429,947 | |||||
Preferred Stock Dividends | 110,000 | 110,000 | |||||
Net Income Available To Common Shareholders | $561,369 | $319,947 |
Three Months Ended March 31, 2013 | ||||
Shares | Weighted Average Exercise Price | |||
Balance, Beginning of Period | 68,400 | $22.63 | ||
Options Granted | — | — | ||
Options Exercised | — | — | ||
Options Forfeited | — | — | ||
Balance, End Of Period | 68,400 | $22.63 | ||
Options Exercisable | 46,600 | |||
Options Available For Grant | 50,000 |
Three Months Ended March 31, 2012 | ||||
Shares | Weighted Average Exercise Price | |||
Balance, Beginning of Period | 74,900 | $22.61 | ||
Options Granted | — | — | ||
Options Exercised | — | — | ||
Options Forfeited | (2,000 | ) | 22.02 | |
Balance, End Of Period | 72,900 | $22.62 | ||
Options Exercisable | 43,600 | |||
Options Available For Grant | 50,000 |
Grant Date | Outstanding Options | Option Price | Expiration Date | |||
09/01/03 | 2,400 | $24.00 | 08/31/13 | |||
12/01/03 | 3,000 | $23.65 | 11/30/13 | |||
01/01/04 | 5,000 | $24.22 | 12/31/13 | |||
03/08/04 | 7,000 | $21.43 | 03/08/14 | |||
06/07/04 | 2,000 | $24.00 | 06/07/14 | |||
01/01/05 | 18,000 | $20.55 | 12/31/14 | |||
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 |
March 31, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair value | ||||||||||||
FHLB Securities | $ | 8,983,672 | $ | 48,214 | $ | 18,189 | $ | 9,013,697 | |||||||
Small Business Administration (“SBA”) Bonds | 93,589,413 | 2,514,953 | 204,158 | 95,900,208 | |||||||||||
Tax Exempt Municipal Bonds | 49,806,615 | 1,408,452 | 268,729 | 50,946,338 | |||||||||||
Mortgage-Backed Securities | 192,792,978 | 6,799,757 | 145,367 | 199,447,368 | |||||||||||
Equity Securities | 102,938 | — | 9,188 | 93,750 | |||||||||||
$ | 345,275,616 | $ | 10,771,376 | $ | 645,631 | $ | 355,401,361 | ||||||||
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 | |||||||
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 |
Amortized Cost | Fair Value | ||||||
Less Than One Year | $ | — | $ | — | |||
One – Five Years | 15,540,739 | 15,932,338 | |||||
Over Five – Ten Years | 61,815,281 | 63,170,489 | |||||
More Than Ten Years | 75,126,618 | 76,851,166 | |||||
Mortgage-Backed Securities | 192,792,978 | 199,447,368 | |||||
$ | 345,275,616 | $ | 355,401,361 |
March 31, 2013 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
FHLB Securities | $ | 5,979,820 | $ | 18,189 | $ | — | $ | — | $ | 5,979,820 | $ | 18,189 | |||||||||||
SBA Bonds | 6,440,340 | 170,489 | 1,716,490 | 33,669 | 8,156,830 | 204,158 | |||||||||||||||||
Tax Exempt Municipal Bond | 16,952,240 | 268,729 | — | — | 16,952,240 | 268,729 | |||||||||||||||||
Mortgage-Backed Securities | 19,458,520 | 145,367 | — | — | 19,458,520 | 145,367 | |||||||||||||||||
Equity Securities | — | — | 93,750 | 9,188 | 93,750 | 9,188 | |||||||||||||||||
$ | 48,830,920 | $ | 602,774 | $ | 1,810,240 | $ | 42,857 | $ | 50,641,160 | $ | 645,631 |
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, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
FHLB Securities | $ | 8,996,919 | $ | 81,331 | $ | 32,920 | $ | 9,045,330 | |||||||
Federal Farm Credit Bank ("FFCB") Securities | 5,775,661 | — | 8,963 | 5,766,698 | |||||||||||
Fannie Mae ("FNMA") And Freddie Mac ("FHLMC") Bonds | 3,017,594 | 20,326 | 3,770 | 3,034,150 | |||||||||||
SBA Bonds | 5,566,499 | 292,341 | 3,161 | 5,855,679 | |||||||||||
Mortgage-Backed Securities | 50,685,130 | 2,963,974 | 129,559 | 53,519,545 | |||||||||||
Equity Securities | 155,000 | — | — | 155,000 | |||||||||||
$ | 74,196,803 | $ | 3,357,972 | $ | 178,373 | $ | 77,376,402 |
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 | |||||||
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 |
Amortized Cost | Fair Value | ||||||
Less Than One Year | $ | 3,000,000 | $ | 3,044,300 | |||
One – Five Years | 158,720 | 165,813 | |||||
Over Five – Ten Years | 11,048,656 | 11,054,549 | |||||
More Than Ten Years | 9,304,297 | 9,592,195 | |||||
Mortgage-Backed Securities | 50,685,130 | 53,519,545 | |||||
$ | 74,196,803 | $ | 77,376,402 |
March 31, 2013 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
FHLB Securities | $ | 1,967,080 | $ | 32,920 | $ | — | $ | — | $ | 1,967,080 | $ | 32,920 | |||||||||||
FFCB Securities | 5,766,697 | 8,963 | — | — | 5,766,697 | 8,963 | |||||||||||||||||
FNMA And FHLMC Bonds | 1,019,380 | 3,770 | — | — | 1,019,380 | 3,770 | |||||||||||||||||
SBA Bonds | 1,252,240 | 3,161 | — | — | 1,252,240 | 3,161 | |||||||||||||||||
Mortgage-Backed Securities | 7,526,437 | 129,559 | — | — | 7,526,437 | 129,559 | |||||||||||||||||
$ | 17,531,834 | $ | 178,373 | $ | — | $ | — | $ | 17,531,834 | $ | 178,373 |
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, 2013 | December 31, 2012 | ||||||
Residential Real Estate Loans | $ | 90,039,701 | $ | 90,677,625 | |||
Consumer Loans | 54,944,279 | 56,595,093 | |||||
Commercial Business | 7,113,335 | 8,063,901 | |||||
Commercial Real Estate | 241,953,458 | 250,924,094 | |||||
Total Loans Held For Investment | 394,050,773 | 406,260,713 | |||||
Loans Held For Sale | 2,262,202 | 4,770,760 | |||||
Total Loans Receivable, Gross | 396,312,975 | 411,031,473 | |||||
Less: | |||||||
Allowance For Loan Losses | 11,105,226 | 11,318,371 | |||||
Loans In Process | 2,188,137 | 2,002,595 | |||||
Deferred Loan Fees | 2,447 | 4,687 | |||||
13,295,810 | 13,325,653 | ||||||
Total Loans Receivable, Net | $ | 383,017,165 | $ | 397,705,820 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Balance At Beginning Of Period | $ | 11,318,371 | $ | 14,261,374 | |||
Provision For Loan Losses | 1,145,381 | 1,950,000 | |||||
Charge Offs | (1,385,460 | ) | (1,617,510 | ) | |||
Recoveries | 26,934 | 21,334 | |||||
Total Allowance For Loan Losses | $ | 11,105,226 | $ | 14,615,198 |
Credit Quality Measures | |||||||||||||||||||
March 31, 2013 | Pass | Caution | Special Mention | Substandard | Total Loans | ||||||||||||||
Residential Real Estate | $ | 82,024,814 | $ | 489,538 | $ | 291,660 | $ | 7,233,689 | $ | 90,039,701 | |||||||||
Consumer | 53,532,784 | 151,495 | 180,951 | 1,079,049 | 54,944,279 | ||||||||||||||
Commercial Business | 5,714,074 | 244,999 | 583,401 | 570,861 | 7,113,335 | ||||||||||||||
Commercial Real Estate | 156,432,330 | 37,623,987 | 13,684,717 | 34,212,424 | 241,953,458 | ||||||||||||||
Total | $ | 297,704,002 | $ | 38,510,019 | $ | 14,740,729 | $ | 43,096,023 | $ | 394,050,773 |
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 |
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 | $ | 1,519,094 | $ | 134,425 | $ | 3,442,273 | $ | 5,095,792 | $ | 84,943,909 | $ | 90,039,701 | |||||||||||
Consumer | 803,800 | 66,855 | 563,615 | 1,434,270 | 53,510,009 | 54,944,279 | |||||||||||||||||
Commercial Business | 23,801 | — | 32,559 | 56,360 | 7,056,975 | 7,113,335 | |||||||||||||||||
Commercial Real Estate | 5,113,535 | 3,393,772 | 10,717,862 | 19,225,169 | 222,728,289 | 241,953,458 | |||||||||||||||||
Total | $ | 7,460,230 | $ | 3,595,052 | $ | 14,756,309 | $ | 25,811,591 | $ | 368,239,182 | $ | 394,050,773 |
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 |
At March 31, 2013 | At December 31, 2012 | $ | % | |||||||||||||||||
Amount | Percent (1) | Amount | Percent (1) | Increase (Decrease) | Increase (Decrease) | |||||||||||||||
Non-accrual Loans: | ||||||||||||||||||||
Residential Real Estate | $ | 3,442,273 | 0.9 | % | $ | 3,757,801 | 0.9 | % | $ | (315,528 | ) | (8.4 | )% | |||||||
Commercial Business | 32,559 | — | 86,991 | — | (54,432 | ) | (62.6 | ) | ||||||||||||
Commercial Real Estate | 10,717,862 | 2.7 | 13,913,190 | 3.4 | (3,195,328 | ) | (23.0 | ) | ||||||||||||
Consumer | 563,615 | 0.1 | 646,136 | 0.2 | (82,521 | ) | (12.8 | ) | ||||||||||||
Total Non- accrual Loans | $ | 14,756,309 | 3.7 | % | $ | 18,404,118 | 4.5 | % | $ | (3,647,809 | ) | (19.8 | )% |
For the Three Months Ended March 31, 2013 | ||||||||||||||||||||
Residential Real Estate | Consumer | Commercial Business | Commercial Real Estate | Total | ||||||||||||||||
Beginning Balance | $ | 1,521,559 | $ | 1,001,271 | $ | 618,919 | $ | 8,176,622 | $ | 11,318,371 | ||||||||||
Provision | 99,571 | (81,813 | ) | (77,066 | ) | 1,204,689 | 1,145,381 | |||||||||||||
Charge-Offs | (29,246 | ) | (19,576 | ) | (4,436 | ) | (1,332,202 | ) | (1,385,460 | ) | ||||||||||
Recoveries | — | 8,511 | 5,486 | 12,937 | 26,934 | |||||||||||||||
Ending Balance | $ | 1,591,884 | $ | 908,393 | $ | 542,903 | $ | 8,062,046 | $ | 11,105,226 |
For the Three Months Ended March 2012 | ||||||||||||||||||||
Residential Real Estate | Consumer | Commercial Business | Commercial Real Estate | Total | ||||||||||||||||
Beginning Balance | $ | 2,416,356 | $ | 996,780 | $ | 720,405 | $ | 10,127,833 | $ | 14,261,374 | ||||||||||
Provision | (222,048 | ) | 1,542,300 | (76,075 | ) | 705,823 | 1,950,000 | |||||||||||||
Charge-Offs | (265,683 | ) | (1,061,778 | ) | — | (290,049 | ) | (1,617,510 | ) | |||||||||||
Recoveries | — | 20,809 | 525 | — | 21,334 | |||||||||||||||
Ending Balance | $ | 1,928,625 | $ | 1,498,111 | $ | 644,855 | $ | 10,543,607 | $ | 14,615,198 |
Allowance For Loan Losses | ||||||||||||
March 31, 2013 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | — | $ | 1,591,884 | $ | 1,591,884 | ||||||
Consumer | — | 908,393 | 908,393 | |||||||||
Commercial Business | — | 542,903 | 542,903 | |||||||||
Commercial Real Estate | 563,075 | 7,498,971 | 8,062,046 | |||||||||
Total | $ | 563,075 | $ | 10,542,151 | $ | 11,105,226 |
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 |
Loans Receivable | ||||||||||||
March 31, 2013 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | 4,265,092 | $ | 85,774,609 | $ | 90,039,701 | ||||||
Consumer | 316,900 | 54,627,379 | 54,944,279 | |||||||||
Commercial Business | 32,559 | 7,080,776 | 7,113,335 | |||||||||
Commercial Real Estate | 33,379,159 | 208,574,299 | 241,953,458 | |||||||||
Total | $ | 37,993,710 | $ | 356,057,063 | $ | 394,050,773 |
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 |
At | For The Three Months Ended March 31, | |||||||||||||||||||||||||||
March 31, 2013 | 2013 | 2012 | ||||||||||||||||||||||||||
Impaired Loans | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||||||||||||||
Residential Real Estate | $ | 4,265,092 | $ | 4,376,063 | $ | — | $ | 4,289,656 | $ | 10,686 | $ | 1,933,259 | $ | 59,319 | ||||||||||||||
Consumer Loans | 316,900 | 380,900 | — | 318,396 | 1,445 | 2,470,969 | 7,083 | |||||||||||||||||||||
Commercial Business | 32,559 | 32,559 | — | 34,316 | — | 111,165 | — | |||||||||||||||||||||
Commercial Real Estate | 30,408,364 | 34,466,445 | — | 30,937,044 | 336,089 | 24,756,622 | 716,441 | |||||||||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||||||||||
Residential Real Estate | — | — | — | — | — | 1,301,687 | 6,137 | |||||||||||||||||||||
Consumer Loans | — | — | — | — | — | 9,784 | — | |||||||||||||||||||||
Commercial Business | — | — | — | — | — | 148,610 | 956 | |||||||||||||||||||||
Commercial Real Estate | 2,970,795 | 3,211,695 | 563,075 | 2,970,219 | 20,743 | 5,675,189 | 185,521 | |||||||||||||||||||||
Total | ||||||||||||||||||||||||||||
Residential Real Estate | 4,265,092 | 4,376,063 | — | 4,289,656 | 10,686 | 3,234,946 | 65,456 | |||||||||||||||||||||
Consumer Loans | 316,900 | 380,900 | — | 318,396 | 1,445 | 2,480,753 | 7,083 | |||||||||||||||||||||
Commercial Business | 32,559 | 32,559 | — | 34,316 | — | 259,775 | 956 | |||||||||||||||||||||
Commercial Real Estate | 33,379,159 | 37,678,140 | 563,075 | 33,907,263 | 356,832 | 30,431,811 | 901,962 | |||||||||||||||||||||
Total | $ | 37,993,710 | $ | 42,467,662 | $ | 563,075 | $ | 38,549,631 | $ | 368,963 | $ | 36,407,285 | $ | 975,457 |
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 |
For the Three Months Ended March 31, 2013 | For the Three Months 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 | 3 | 1,321,024 | 1,321,024 | 9 | 7,871,114 | 7,871,114 | ||||||||||||||||
Total | 3 | $ | 1,321,024 | $ | 1,321,024 | 10 | $ | 7,886,472 | $ | 7,886,472 |
Actual | For Capital Adequacy | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||
SECURITY FEDERAL CORP. | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 69,091 | 16.9 | % | $ | 16,334 | 4.0 | % | N/A | N/A | ||||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 84,397 | 20.7 | % | 32,668 | 8.0 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 69,091 | 7.9 | % | 34,819 | 4.0 | % | N/A | N/A | ||||||||||||
SECURITY FEDERAL BANK | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 81,597 | 20.0 | % | $ | 16,324 | 4.0 | % | $ | 24,485 | 6.0 | % | ||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 86,761 | 21.3 | % | 32,647 | 8.0 | % | 40,809 | 10.0 | % | |||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 81,597 | 9.4 | % | 34,808 | 4.0 | % | 43,510 | 5.0 | % | |||||||||||
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 | % |
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 | $ | — | $ | 9,013,697 | $ | — | |||||
SBA Bonds | — | 95,900,208 | — | ||||||||
Tax Exempt Municipal Bonds | — | 50,946,338 | — | ||||||||
Mortgage-Backed Securities | — | 199,447,368 | — | ||||||||
Equity Securities | — | 93,750 | — | ||||||||
Total | $ | — | $ | 355,401,361 | $ | — |
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: | Level 1 | Level 2 | Level 3 | Balance At March 31, 2013 | ||||||||||||
Mortgage Loans Held For Sale | $ | — | $ | 2,262,202 | $ | — | $ | 2,262,202 | ||||||||
Collateral Dependent Impaired Loans (1) | — | — | 37,430,635 | 37,430,635 | ||||||||||||
Foreclosed Assets | — | — | 6,491,907 | 6,491,907 | ||||||||||||
Total | $ | — | $ | 2,262,202 | $ | 43,922,542 | $ | 46,184,744 |
Assets: | Level 1 | Level 2 | Level 3 | Balance 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 |
Fair Value | Significant | ||||||||
March 31, | Valuation | Unobservable | |||||||
2013 | Technique | Inputs | Range | ||||||
Collateral Dependent Impaired Loans | $ | 37,430,635 | Appraised Value | Discount Rates/ Discounts to Appraised Values | 0% - 70% | ||||
Foreclosed Assets | 6,491,907 | Appraised Value/Comparable Sales | Discount Rates/ Discounts to Appraised Values | 0% - 66% |
March 31, 2013 | |||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||
(In Thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash And Cash Equivalents | $ | 10,391 | $ | 10,391 | $ | 10,391 | $ | — | $ | — | |||||||||
Certificates of Deposits With Other Banks | 1,729 | 1,729 | — | 1,729 | — | ||||||||||||||
Investment And Mortgage-Backed Securities | 429,598 | 432,778 | — | 432,778 | — | ||||||||||||||
Loans Receivable, Net | 383,017 | 387,152 | — | — | 387,152 | ||||||||||||||
FHLB Stock | 5,223 | 5,223 | 5,223 | — | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Checking, Savings, And Money Market Accounts | $ | 394,039 | $ | 394,039 | $ | 394,039 | $ | — | $ | — | |||||||||
Certificate Accounts | 280,487 | 282,974 | — | 282,974 | — | ||||||||||||||
Advances From FHLB | 93,153 | 100,915 | — | 100,915 | — | ||||||||||||||
Other Borrowed Money | 9,406 | 9,406 | 9,406 | — | — | ||||||||||||||
Senior Convertible Debentures | 5,155 | 5,155 | — | 5,155 | — | ||||||||||||||
Junior Subordinated Debentures | 6,084 | 6,084 | — | 6,084 | — |
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 | — |
• | statements of our goals, intentions and expectations; |
• | statements regarding our business plans, prospects, growth and operating strategies; |
• | statements regarding the quality of our loan and investment portfolios; and |
• | estimates of our risks and future costs and benefits. |
• | the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in our allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; |
• | changes in general economic conditions, either nationally or in our market areas; |
• | changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources; |
• | fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; |
• | secondary market conditions for loans and our ability to sell loans in the secondary market; |
• | results of examinations of the Company by the Federal Reserve, and our bank subsidiary by the FDIC and the South Carolina Board of Financial Institutions or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; |
• | legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; |
• | our ability to attract and retain deposits; |
• | further increases in premiums for deposit insurance; |
• | our ability to control operating costs and expenses; |
• | 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 risks associated with the loans on our balance sheet; |
• | staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges; |
• | computer systems on which we depend could fail or experience a security breach; |
• | our ability to retain key members of our senior management team; |
• | costs and effects of litigation, including settlements and judgments; |
• | our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we have acquired or we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; |
• | increased competitive pressures among financial services companies; |
• | changes in consumer spending, borrowing and savings habits; |
• | the impact of new legislation, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Jumpstart Our Business Startups Act and the Basel III regulatory capital requirements and the implementing regulations; |
• | the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; |
• | our ability to pay dividends on our common stock; |
• | adverse changes in the securities markets; |
• | inability of key third-party providers to perform their obligations to us; |
• | changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the FASB, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; |
• | Future legislative changes and our ability to continue to comply with the requirements of the 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. |
Increase (Decrease) | |||||||||||||
March 31, 2013 | December 31, 2012 | Amount | Percent | ||||||||||
Cash And Cash Equivalents | $ | 10,390,886 | $ | 7,903,950 | $ | 2,486,936 | 31.5% | ||||||
Investment And Mortgage- Backed Securities – Available For Sale | 355,401,361 | 354,916,216 | 485,145 | 0.1 | |||||||||
Investment And Mortgage- Backed Securities – Held To Maturity | 74,196,803 | 76,072,262 | (1,875,459 | ) | (2.5) | ||||||||
Loans Receivable, Net | 383,017,165 | 397,705,820 | (14,688,655 | ) | (3.7) | ||||||||
Repossessed Assets Acquired In Settlement Of Loans | 6,491,907 | 6,754,425 | (262,518 | ) | (3.9) | ||||||||
FHLB Stock | 5,223,294 | 6,178,700 | (955,406 | ) | (15.5) |
Balance | |||||||||||||||
March 31, 2013 | December 31, 2012 | Increase (Decrease) | |||||||||||||
Balance | Weighted Rate | Balance | Weighted Rate | Amount | Percent | ||||||||||
Demand Accounts: | |||||||||||||||
Checking | $ | 131,701,992 | 0.06% | $ | 126,740,707 | 0.06% | $ | 4,961,285 | 3.91% | ||||||
Money Market | 238,216,286 | 0.38 | 234,382,412 | 0.38 | 3,833,874 | 1.64% | |||||||||
Statement Savings Accounts | 24,120,858 | 0.20 | 22,411,240 | 0.20 | 1,709,618 | 7.63% | |||||||||
Total | 394,039,136 | 0.26 | 383,534,359 | 0.26 | 10,504,777 | 2.74% | |||||||||
Certificate Accounts | |||||||||||||||
0.00 – 1.99% | 244,551,066 | 255,422,955 | (10,871,889) | (4.26)% | |||||||||||
2.00 – 2.99% | 32,122,202 | 32,975,486 | (853,284) | (2.59)% | |||||||||||
3.00 – 3.99% | 2,032,301 | 2,380,728 | (348,427) | (14.64)% | |||||||||||
4.00 – 4.99% | 1,274,056 | 1,523,474 | (249,418) | (16.37)% | |||||||||||
5.00 – 5.99% | 507,704 | 501,651 | 6,053 | 1.21% | |||||||||||
Total | 280,487,329 | 1.02 | 292,804,294 | 1.11 | (12,316,965) | (4.21)% | |||||||||
Total Deposits | $ | 674,526,465 | 0.58% | $ | 676,338,653 | 0.63% | $ | (1,812,188) | (0.27)% |
Balance | |||||||||||
March 31, 2013 | December 31, 2012 | Decrease | |||||||||
Fiscal Year Due: | Balance | Rate | Balance | Rate | Balance | Percent | |||||
2013 | $ | 10,000,000 | 3.53% | $ | 22,100,000 | 2.92% | $ | (12,100,000) | (54.75)% | ||
2014 | 30,252,933 | 3.33 | 30,257,182 | 3.33% | (4,249) | (0.01) | |||||
2015 | 15,000,000 | 4.01 | 15,000,000 | 4.01% | — | — | |||||
2016 | 20,000,000 | 4.60 | 20,000,000 | 4.60% | — | — | |||||
2017 | 12,900,000 | 4.38 | 12,900,000 | 4.38% | — | — | |||||
Thereafter | 5,000,000 | 3.39 | 5,000,000 | 3.39% | — | — | |||||
Total Advances | $ | 93,152,933 | 3.89% | $ | 105,257,182 | 3.72% | $ | (12,104,249) | (11.50)% |
As of March 31, 2013 | |||||||||||
Borrow Date | Maturity Date | Amount | Int. Rate | Type | Call Dates | ||||||
11/23/05 | 11/23/15 | $ | 5,000,000 | 3.933 | % | Multi-Call | 5/23/08 and quarterly thereafter | ||||
07/11/06 | 07/11/16 | 5,000,000 | 4.800 | Multi-Call | 7/11/08 and quarterly thereafter | ||||||
11/29/06 | 11/29/16 | 5,000,000 | 4.025 | Multi-Call | 5/29/08 and quarterly thereafter | ||||||
05/24/07 | 05/24/17 | 7,900,000 | 4.375 | Multi-Call | 5/27/08 and quarterly thereafter | ||||||
07/25/07 | 07/25/17 | 5,000,000 | 4.396 | Multi-Call | 7/25/08 and quarterly thereafter |
Three Months Ended March 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Average Balance | Yield(1) | Average Balance | Yield(1) | Increase (Decrease) In Interest And Dividend Income From 2012 | |||||||||||||
Loans Receivable, Net | $ | 393,269,063 | 5.68 | % | $ | 438,454,079 | 6.01 | % | $ | (1,006,724) | |||||||
Mortgage-Backed Securities | 246,038,565 | 2.21 | 264,643,210 | 2.68 | (411,028) | ||||||||||||
Investment Securities(2) | 168,598,396 | 2.03 | 137,231,976 | 1.87 | 214,421 | ||||||||||||
Overnight Time And Certificates of Deposit | 8,407,959 | 0.11 | 6,782,618 | 0.05 | 1,552 | ||||||||||||
Total Interest-Earning Assets | $ | 816,313,983 | 3.82 | % | $ | 847,111,883 | 4.25 | % | $ | (1,201,779) |
Three Months Ended March 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Average Balance | Yield(1) | Average Balance | Yield(1) | Increase (Decrease) In Interest Expense From 2012 | ||||||||||||
Now And Money Market Accounts | $ | 315,696,505 | 0.29 | % | $ | 303,792,026 | 0.47 | % | $ | (125,885 | ) | |||||
Statement Savings Accounts | 22,967,552 | 0.19 | 21,078,296 | 0.20 | 554 | |||||||||||
Certificates Accounts | 282,670,827 | 1.05 | 326,453,338 | 1.38 | (383,303 | ) | ||||||||||
FHLB Advances And Other Borrowed Money | 112,490,450 | 3.50 | 128,721,056 | 3.64 | (188,382 | ) | ||||||||||
Junior Subordinated Debentures | 5,155,000 | 2.00 | 5,155,000 | 2.26 | (3,283 | ) | ||||||||||
Senior Convertible Debentures | 6,084,000 | 8.00 | 6,084,000 | 8.00 | — | |||||||||||
Total Interest-Bearing Liabilities | $ | 745,064,334 | 1.13 | % | $ | 791,283,716 | 1.42 | % | $ | (700,299 | ) |
Three Months Ended March 31, | ||||||
2013 | 2012 | |||||
Beginning Balance | $ | 11,318,371 | $ | 14,261,374 | ||
Provision | 1,145,381 | 1,950,000 | ||||
Charge-offs | (1,385,460) | (1,617,510) | ||||
Recoveries | 26,934 | 21,334 | ||||
Ending Balance | $ | 11,105,226 | $ | 14,615,198 | ||
Allowance For Loan Losses As A Percentage Of Gross Loans Receivable, Held For Investment At The End Of The Period | 2.8 | % | 3.3 | % | ||
Allowance For Loan Losses As A Percentage Of Impaired Loans At The End Of The Period | 29.2 | % | 35.8 | % | ||
Impaired Loans | $ | 37,993,710 | $ | 40,797,186 | ||
Gross Loans Receivable, Held For Investment And Held For Sale | $ | 396,312,975 | $ | 445,035,160 | ||
Total Loans Receivable, Net | $ | 383,017,165 | $ | 428,510,606 |
Three Months Ended March 31, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amounts | Percent | |||||||||||
Gain On Sale Of Investments | $ | 384,051 | $ | 534,960 | $ | (150,909) | (28.2)% | |||||||
Gain On Sale Of Loans | 184,788 | 143,158 | 41,630 | 29.1 | ||||||||||
Service Fees On Deposit Accounts | 263,831 | 277,264 | (13,433 | ) | (4.8) | |||||||||
Income From Cash Value Of Life Insurance | 140,313 | 118,170 | 22,143 | 18.7 | ||||||||||
Commissions From Insurance Agency | 135,000 | 126,000 | 9,000 | 7.1 | ||||||||||
Trust Income | 105,000 | 105,000 | — | — | ||||||||||
Check Card Fee Income | 195,193 | 198,323 | (3,130 | ) | (1.6) | |||||||||
Grant Income | 416,000 | — | 416,000 | 100.0 | ||||||||||
Other | 120,806 | 111,612 | 9,194 | 8.2 | ||||||||||
Total Non-Interest Income | $ | 1,944,982 | $ | 1,614,487 | $ | 330,495 | 20.5% |
Three Months Ended March 31, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amounts | Percent | |||||||||||
Salaries And Employee Benefits | $ | 2,821,375 | $ | 2,740,079 | $ | 81,296 | 2.97% | |||||||
Occupancy | 475,314 | 443,530 | 31,784 | 7.2 | ||||||||||
Advertising | 107,643 | 77,307 | 30,336 | 39.2 | ||||||||||
Depreciation And Maintenance Of Equipment | 439,172 | 428,726 | 10,446 | 2.4 | ||||||||||
FDIC Insurance Premiums | 167,722 | 138,821 | 28,901 | 20.8 | ||||||||||
Amortization of Intangibles | 12,501 | 12,501 | — | — | ||||||||||
Net Cost Of Operation Of Other Real Estate Owned | 396,369 | 411,704 | (15,335 | ) | (3.7) | |||||||||
Other | 1,092,788 | 872,201 | 220,587 | 25.3 | ||||||||||
Total General And Administrative Expenses | $ | 5,512,884 | $ | 5,124,869 | $ | 388,015 | 7.6% |
(Dollars in thousands) | Within One Month | After One Through Three Months | After Three Through Twelve Months | Within One Year | Greater Than One Year | Total | |||||||||||||||||
Unused Lines Of Credit | $ | 347 | $ | 376 | $ | 3,011 | $ | 3,734 | $ | 26,400 | $ | 30,134 | |||||||||||
Standby Letters Of Credit | — | 840 | 1,309 | 2,149 | — | 2,149 | |||||||||||||||||
Total | $ | 347 | $ | 1,216 | $ | 4,320 | $ | 5,883 | $ | 26,400 | $ | 32,283 |
4.6 | Letter Agreement dated September 29, 2010 between Security Federal Corporation and the United States Department of the Treasury, including the Exchange Agreement – Standard Terms, with respect to the |
4.7 | Letter Agreement dated September 29, 2010 between Security Federal Corporation and the United States Department of the Treasury, including the Securities Purchase Agreement – Standard Terms, with respect to the purchase of the Series B Fixed Rate Cumulative Perpetual Preferred Stock (2) |
101 | The following materials from Security Federal Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated |
(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 Company’s Current Report on Form 8-K filed on December 23, 2008. |
(14) | Filed on June 18, 2004, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference. |
Date: | May 14, 2013 | By: | /s/J. Chris Verenes | ||
J. Chris Verenes | |||||
President & Chief Executive Officer | |||||
Duly Authorized Representative |
Date: | May 14, 2013 | By: | /s/Roy G. Lindburg | ||
Roy G. Lindburg | |||||
Chief Financial Officer | |||||
Duly Authorized Representative |
31.1 | Certifications of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act |
31.2 | Certifications of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act |
32 | Certifications of the Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act |
101 | The following materials from Security Federal Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Balance Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income; (d) Consolidated Statements of Changes in Shareholders’Equity; (e) Consolidated Statements of Cash Flows; and (f) Notes to Consolidated Financial Statements |
1. | I have reviewed this quarterly report on Form 10-Q of Security Federal Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the 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 quarterly report on Form 10-Q of Security Federal Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the 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 |
Loans Receivable, Net (Past Due Financing Receivables) (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $ 7,460,230 | $ 4,740,147 |
60-89 Days Past Due | 3,595,052 | 6,894,706 |
90 Days or More Past Due | 14,756,309 | 18,404,118 |
Total Past Due | 25,811,591 | 30,038,971 |
Current | 368,239,182 | 376,221,742 |
Total | 394,050,773 | 406,260,713 |
Residential Real Estate
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,519,094 | 0 |
60-89 Days Past Due | 134,425 | 1,794,644 |
90 Days or More Past Due | 3,442,273 | 3,757,801 |
Total Past Due | 5,095,792 | 5,552,445 |
Current | 84,943,909 | 85,125,180 |
Total | 90,039,701 | 90,677,625 |
Consumer
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 803,800 | 1,862,611 |
60-89 Days Past Due | 66,855 | 211,756 |
90 Days or More Past Due | 563,615 | 646,136 |
Total Past Due | 1,434,270 | 2,720,503 |
Current | 53,510,009 | 53,874,590 |
Total | 54,944,279 | 56,595,093 |
Commercial Business
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 23,801 | 445,113 |
60-89 Days Past Due | 0 | 36,079 |
90 Days or More Past Due | 32,559 | 86,991 |
Total Past Due | 56,360 | 568,183 |
Current | 7,056,975 | 7,495,718 |
Total | 7,113,335 | 8,063,901 |
Commercial Real Estate
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 5,113,535 | 2,432,423 |
60-89 Days Past Due | 3,393,772 | 4,852,227 |
90 Days or More Past Due | 10,717,862 | 13,913,190 |
Total Past Due | 19,225,169 | 21,197,840 |
Current | 222,728,289 | 229,726,254 |
Total | $ 241,953,458 | $ 250,924,094 |
Stock-Based Compensation (Options Outstanding) (Details) (USD $)
|
Mar. 31, 2013
|
---|---|
$24.00
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 2,400 |
Option Price | $ 24.00 |
$23.65
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 3,000 |
Option Price | $ 23.65 |
$24.22
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 5,000 |
Option Price | $ 24.22 |
$21.43
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 7,000 |
Option Price | $ 21.43 |
$24.00
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 2,000 |
Option Price | $ 24.00 |
$20.55
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 18,000 |
Option Price | $ 20.55 |
$23.91
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 4,000 |
Option Price | $ 23.91 |
$23.03
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 3,500 |
Option Price | $ 23.03 |
$24.34
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 2,000 |
Option Price | $ 24.34 |
$24.61
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 1,000 |
Option Price | $ 24.61 |
$24.28
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 2,000 |
Option Price | $ 24.28 |
$23.49
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 14,000 |
Option Price | $ 23.49 |
$22.91
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 2,500 |
Option Price | $ 22.91 |
$22.91
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options | 2,000 |
Option Price | $ 22.91 |
Carrying Amounts and Fair Value of Financial Instruments (Summary of the carrying value and estimated fair value of financial instruments) (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|
Financial Assets: | ||||
Cash And Cash Equivalents | $ 10,391,000 | $ 7,904,000 | ||
Cash And Cash Equivalents | 10,390,886 | 7,903,950 | 9,331,372 | 7,797,544 |
Certificates of Deposits With Other Banks | 1,729,000 | 1,729,000 | ||
Investments | 429,598,164 | 430,988,478 | ||
Certificates Of Deposit With Other Banks | 1,729,015 | 1,728,567 | ||
Investment And Mortgage-Backed Securities | 430,988,000 | |||
Loans Receivable, Net | 383,017,000 | 397,706,000 | ||
FHLB Stock | 5,223,000 | 6,179,000 | ||
Federal Home Loan Bank (FHLB) Stock, At Cost | 5,223,294 | 6,178,700 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 394,039,000 | 383,534,000 | ||
Certificate Accounts | 280,487,000 | 292,804,000 | ||
Advances From FHLB | 93,152,933 | 105,257,182 | ||
Advances From FHLB | 105,257,000 | |||
Other Borrowed Money | 9,406,000 | 9,317,000 | ||
Other Borrowings | 9,406,169 | 9,317,244 | ||
Senior Convertible Debentures | 5,155,000 | 5,155,000 | ||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | ||
Junior Subordinated Debentures | 6,084,000 | 6,084,000 | ||
Senior Convertible Debentures | 6,084,000 | 6,084,000 | ||
Netting
|
||||
Financial Assets: | ||||
Cash And Cash Equivalents | 10,391,000 | 7,904,000 | ||
Certificates of Deposits With Other Banks | 1,729,000 | 1,729,000 | ||
Investment And Mortgage-Backed Securities | 432,778,000 | 434,588,000 | ||
Loans Receivable, Net | 387,152,000 | 397,360,000 | ||
FHLB Stock | 5,223,000 | 6,179,000 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 394,039,000 | 383,534,000 | ||
Certificate Accounts | 282,974,000 | 295,734,000 | ||
Advances From FHLB | 100,915,000 | 113,471,000 | ||
Other Borrowed Money | 9,406,000 | 9,317,000 | ||
Senior Convertible Debentures | 5,155,000 | 5,155,000 | ||
Junior Subordinated Debentures | 6,084,000 | 6,084,000 | ||
Fair Value, Inputs, Level 1
|
||||
Financial Assets: | ||||
Cash And Cash Equivalents | 7,904,000 | |||
Cash And Cash Equivalents | 10,391,000 | |||
Certificates of Deposits With Other Banks | 0 | 0 | ||
Investment And Mortgage-Backed Securities | 0 | 0 | ||
Loans Receivable, Net | 0 | 0 | ||
FHLB Stock | 6,179,000 | |||
Federal Home Loan Bank (FHLB) Stock, At Cost | 5,223,000 | |||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 394,039,000 | 383,534,000 | ||
Certificate Accounts | 0 | 0 | ||
Advances From FHLB | 0 | 0 | ||
Other Borrowed Money | 9,317,000 | |||
Other Borrowings | 9,406,000 | |||
Senior Convertible Debentures | 0 | 0 | ||
Junior Subordinated Debentures | 0 | 0 | ||
Fair Value, Inputs, Level 2
|
||||
Financial Assets: | ||||
Cash And Cash Equivalents | 0 | 0 | ||
Certificates of Deposits With Other Banks | 1,729,000 | |||
Certificates Of Deposit With Other Banks | 1,729,000 | |||
Investment And Mortgage-Backed Securities | 432,778,000 | 434,588,000 | ||
Loans Receivable, Net | 0 | 0 | ||
FHLB Stock | 0 | 0 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 0 | 0 | ||
Certificate Accounts | 282,974,000 | 295,734,000 | ||
Advances From FHLB | 100,915,000 | 113,471,000 | ||
Other Borrowed Money | 0 | 0 | ||
Senior Convertible Debentures | 5,155,000 | |||
Junior Subordinated Debentures | 5,155,000 | |||
Junior Subordinated Debentures | 6,084,000 | |||
Senior Convertible Debentures | 6,084,000 | |||
Fair Value, Inputs, Level 3
|
||||
Financial Assets: | ||||
Cash And Cash Equivalents | 0 | 0 | ||
Certificates of Deposits With Other Banks | 0 | 0 | ||
Investment And Mortgage-Backed Securities | 0 | 0 | ||
Loans Receivable, Net | 387,152,000 | 397,360,000 | ||
FHLB Stock | 0 | 0 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 0 | 0 | ||
Certificate Accounts | 0 | 0 | ||
Advances From FHLB | 0 | 0 | ||
Other Borrowed Money | 0 | 0 | ||
Senior Convertible Debentures | 0 | 0 | ||
Junior Subordinated Debentures | $ 0 | $ 0 |
Investment and Mortgage-Backed Securities, Available for Sale (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available for Sale Securities | The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment and mortgage-backed securities available for sale are as follows:
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Schedule of Available For Sale Securities, Contractual Maturities |
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Schedule of Temporarily Impaired Securities, Fair Value and Unrealized Losses | The following tables show gross unrealized losses and fair value, aggregated by investment category, and length of time that individual available for sale securities have been in a continuous unrealized loss position ate the dates indicated.
|
Loans Receivable, Net (Impaired Financing Receivables) (Details) (USD $)
|
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
|
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, related allowance | $ 440,000 | ||
Impaired financing receivable, recorded investment | 37,993,710 | 39,946,538 | |
Impaired financing receivable, unpaid principal balance | 42,467,662 | 45,146,178 | |
Impaired financing receivable, average recorded investment | 38,549,631 | 36,407,285 | 41,555,434 |
Impaired financing receivable, interest income, accrual method | 368,963 | 975,457 | 1,195,659 |
Residential Real Estate
|
|||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 4,265,092 | 4,500,902 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 4,376,063 | 4,611,873 | |
Impaired financing receivable, with no related allowance, average recorded investment | 4,289,656 | 1,933,259 | 4,531,543 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 10,686 | 59,319 | 130,896 |
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | |
Impaired financing receivable, with related allowance, average recorded investment | 0 | 1,301,687 | 0 |
Impaired financing receivable, with related allowance, interest income, accrual method | 0 | 6,137 | 0 |
Impaired financing receivable, recorded investment | 4,265,092 | 4,500,902 | |
Impaired financing receivable, unpaid principal balance | 4,376,063 | 4,611,873 | |
Impaired financing receivable, average recorded investment | 4,289,656 | 3,234,946 | 4,531,543 |
Impaired financing receivable, interest income, accrual method | 10,686 | 65,456 | 130,896 |
Consumer Loans
|
|||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 316,900 | 322,588 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 380,900 | 386,588 | |
Impaired financing receivable, with no related allowance, average recorded investment | 318,396 | 2,470,969 | 342,916 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 1,445 | 7,083 | 28,419 |
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | |
Impaired financing receivable, with related allowance, average recorded investment | 0 | 9,784 | 0 |
Impaired financing receivable, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired financing receivable, recorded investment | 316,900 | 322,588 | |
Impaired financing receivable, unpaid principal balance | 380,900 | 386,588 | |
Impaired financing receivable, average recorded investment | 318,396 | 2,480,753 | 342,916 |
Impaired financing receivable, interest income, accrual method | 1,445 | 7,083 | 28,419 |
Commercial Business
|
|||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 32,559 | 7,853 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 32,559 | 7,853 | |
Impaired financing receivable, with no related allowance, average recorded investment | 34,316 | 111,165 | 12,236 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | |
Impaired financing receivable, with related allowance, average recorded investment | 0 | 148,610 | 0 |
Impaired financing receivable, with related allowance, interest income, accrual method | 0 | 956 | 0 |
Impaired financing receivable, recorded investment | 32,559 | 7,853 | |
Impaired financing receivable, unpaid principal balance | 32,559 | 7,853 | |
Impaired financing receivable, average recorded investment | 34,316 | 259,775 | 12,236 |
Impaired financing receivable, interest income, accrual method | 0 | 956 | 0 |
Commercial Real Estate
|
|||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 30,408,364 | 31,808,577 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 34,466,445 | 35,373,833 | |
Impaired financing receivable, with no related allowance, average recorded investment | 30,937,044 | 24,756,622 | 32,963,079 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 336,089 | 716,441 | 1,036,344 |
Impaired financing receivable, with related allowance, recorded investment | 2,970,795 | 3,306,618 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 3,211,695 | 4,766,031 | |
Impaired financing receivable, related allowance | 563,075 | 440,000 | |
Impaired financing receivable, with related allowance, average recorded investment | 2,970,219 | 5,675,189 | 3,705,660 |
Impaired financing receivable, with related allowance, interest income, accrual method | 20,743 | 185,521 | 0 |
Impaired financing receivable, recorded investment | 33,379,159 | 35,115,195 | |
Impaired financing receivable, unpaid principal balance | 37,678,140 | 40,139,864 | |
Impaired financing receivable, average recorded investment | 33,907,263 | 30,431,811 | 36,668,739 |
Impaired financing receivable, interest income, accrual method | $ 356,832 | $ 901,962 | $ 1,036,344 |
Investment and Mortgage-Backed Securities, Held to Maturity (Narrative) (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity Securities Pledged as Collateral | $ 13,800,000 | $ 12,200,000 |
Held to Maturity Securities Pledged as Collateral, Fair Value | 14,400,000 | 12,800,000 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held To Maturity, Amortized Cost | 74,196,803 | 76,072,262 |
Held-to-maturity Securities, Fair Value | 77,376,402 | 79,671,886 |
GNMA Mortgage-Backed Securities
|
||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held To Maturity, Amortized Cost | 46,900,000 | 47,200,000 |
Held-to-maturity Securities, Fair Value | $ 49,700,000 | $ 50,400,000 |
Investment and Mortgage-Backed Securities, Available for Sale (Schedule of Temporarily Impaired Securities, Fair Value and Unrealized losses) (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 48,830,920 | $ 26,376,628 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,810,240 | 1,908,301 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 50,641,160 | 28,284,929 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 602,774 | 276,645 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 42,857 | 64,175 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 645,631 | 340,820 |
FHLB Securities
|
||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,979,820 | 995,680 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,979,820 | 995,680 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 18,189 | 4,320 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 18,189 | 4,320 |
SBA Bonds
|
||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,440,340 | 4,583,177 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,716,490 | 1,833,076 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 8,156,830 | 6,416,253 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 170,489 | 119,825 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 33,669 | 36,462 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 204,158 | 156,287 |
Tax Exempt Municipal Bonds
|
||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 16,952,240 | 4,538,734 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16,952,240 | 4,538,734 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 268,729 | 60,534 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 268,729 | 60,534 |
Mortgage-Backed Securities
|
||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 19,458,520 | 16,259,037 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 19,458,520 | 16,259,037 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 145,367 | 91,966 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 145,367 | 91,966 |
Equity Securities
|
||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 93,750 | 75,225 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 93,750 | 75,225 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 9,188 | 27,713 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 9,188 | $ 27,713 |
Loans Receivable, Net (Narrative) (Details) (USD $)
|
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2013
payments
loan
|
Mar. 31, 2012
loan
|
Dec. 31, 2012
|
|
Receivables [Abstract] | |||
Review period to request a new third party appraisal | 24 months | ||
Impaired financing receivable, average recorded investment | $ 38,549,631 | $ 36,407,285 | $ 41,555,434 |
TDRs included in impaired loans | $ 13,900,000.0 | $ 15,900,000.0 | |
Number of Contracts - Troubled Debt Restructurings | 3 | 10 | |
Financing Receivable, Modifications, Extended Term, Number of Contracts | 1 | ||
Financing Receivable, Modifications, Payment Term, Number of Contracts | 1 | ||
Number of Contracts - loans that had been previously restructured that were in default | 0 | ||
Number of Contracts - Troubled Debt Restructurings That Subsequently Defaulted During the Period | 6 | ||
Nonperforming Loans, Accrual Status, Minimum Consecutive Payments | 6 |
Loans Receivable, Net (Schedule of non-accrual loans by category) (Details) (USD $)
|
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | $ 14,756,309 | $ 18,404,118 | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | 3.70% | [1] | 4.50% | [1] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | (3,647,809) | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (19.80%) | |||||
Residential Real Estate
|
||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | 3,442,273 | 3,757,801 | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | 0.90% | [1] | 0.90% | [1] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | (315,528) | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (8.40%) | |||||
Commercial Business
|
||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | 32,559 | 86,991 | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | 0.00% | [1] | 0.00% | [1] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | (54,432) | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (62.60%) | |||||
Commercial Real Estate
|
||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | 10,717,862 | 13,913,190 | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | 2.70% | [1] | 3.40% | [1] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | (3,195,328) | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (23.00%) | |||||
Consumer
|
||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | 563,615 | 646,136 | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | 0.10% | [1] | 0.20% | [1] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | $ (82,521) | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (12.80%) | |||||
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Basis of Presentation
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3 Months Ended |
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Mar. 31, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows. Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods. Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in Security Federal Corporation’s (the “Company”) 2012 Annual Report to Shareholders which was filed as an exhibit to our Annual Report on Form 10-KT for the transitional nine months ended December 31, 2012 (“2012 10-KT”) when reviewing interim financial statements. The Company changed its fiscal year from March 31 to December 31 effective January 17, 2013. The results of operations for the three month period ended March 31, 2013 are not necessarily indicative of the results that may be expected for the entire fiscal year. |