FROM: | TO: |
South Carolina | 57-0858504 | |||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
YES | X | NO |
Large accelerated filed [ ] | Accelerated filer [ ] | |||
Non-accelerated filer [ ] | Smaller reporting company [ X ] |
YES | NO | X |
CLASS: | OUTSTANDING SHARES AT: | SHARES: | ||||
Common Stock, par value $0.01 per share | August 9, 2013 | 2,944,001 |
PART I. | FINANCIAL INFORMATION (UNAUDITED) | PAGE NO. | |
Item 1. | Financial Statements (Unaudited): | ||
Consolidated Balance Sheets at June 30, 2013 and December 31, 2012 | |||
Consolidated Statements of Income for the Three and Six Months Ended June 30, 2013 and 2012 | |||
Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2013 and 2012 | |||
Consolidated Statements of Changes in Shareholders’ Equity for the Six Months Ended June 30, 2013 and 2012 | |||
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012 | |||
Notes to Consolidated Financial Statements | |||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | ||
Item 4. | Controls and Procedures | ||
PART II. | OTHER INFORMATION | ||
Item 1. | Legal Proceedings | ||
Item 1A. | Risk Factors | ||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 3. | Defaults Upon Senior Securities | ||
Item 4. | Mine Safety Disclosures | ||
Item 5. | Other Information | ||
Item 6. | Exhibits | ||
Signatures | |||
June 30, 2013 | December 31, 2012 | ||||||
ASSETS: | Unaudited | Audited | |||||
Cash And Cash Equivalents | $ | 9,335,897 | $ | 7,903,950 | |||
Certificates Of Deposit With Other Banks | 1,479,469 | 1,728,567 | |||||
Investment And Mortgage-Backed Securities: | |||||||
Available For Sale: (Amortized Cost Of $428,560,987 And $342,936,153 At June 30, 2013 And December 31, 2012, Respectively) | 432,331,886 | 354,916,216 | |||||
Held To Maturity: (Fair Value Of $0 And $79,671,886 At June 30, 2013 And December 31, 2012, Respectively) | — | 76,072,262 | |||||
Total Investments And Mortgage-Backed Securities | 432,331,886 | 430,988,478 | |||||
Loans Receivable, Net: | |||||||
Held For Sale | 3,474,933 | 4,770,760 | |||||
Held For Investment: (Net Of Allowance Of $11,007,279 and $11,318,371 At June 30, 2013 And December 31, 2012, Respectively) | 370,574,166 | 392,935,060 | |||||
Total Loans Receivable, Net | 374,049,099 | 397,705,820 | |||||
Accrued Interest Receivable: | |||||||
Loans | 1,268,367 | 1,242,072 | |||||
Mortgage-Backed Securities | 805,178 | 901,423 | |||||
Investment Securities | 1,405,064 | 1,131,262 | |||||
Total Accrued Interest Receivable | 3,478,609 | 3,274,757 | |||||
Premises And Equipment, Net | 17,690,143 | 17,917,897 | |||||
Federal Home Loan Bank ("FHLB") Stock, At Cost | 5,187,900 | 6,178,700 | |||||
Repossessed Assets Acquired In Settlement Of Loans | 4,781,454 | 6,754,425 | |||||
Bank Owned Life Insurance | 11,318,305 | 11,151,305 | |||||
Intangible Assets, Net | 36,972 | 61,974 | |||||
Goodwill | 1,199,754 | 1,199,754 | |||||
Other Assets | 6,464,230 | 5,488,960 | |||||
Total Assets | $ | 867,353,718 | $ | 890,354,587 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||
Liabilities: | |||||||
Deposit Accounts | $ | 671,082,345 | $ | 676,338,653 | |||
Advances From FHLB | 91,548,662 | 105,257,182 | |||||
Other Borrowings | 9,639,812 | 9,317,244 | |||||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | |||||
Advance Payments By Borrowers For Taxes And Insurance | 494,358 | 189,424 | |||||
Senior Convertible Debentures | 6,084,000 | 6,084,000 | |||||
Other Liabilities | 4,998,850 | 5,420,600 | |||||
Total Liabilities | 789,003,027 | 807,762,103 | |||||
Shareholders' Equity: | |||||||
Serial Preferred Stock, $.01 Par Value; Authorized 200,000 Shares; Issued And Outstanding, 22,000 Shares At June 30, 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 June 30, 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 | 11,621,798 | 11,630,717 | |||||
Treasury Stock, At Cost (200,933 Shares At June 30, 2013 And December 31, 2012, Respectively) | (4,330,712 | ) | (4,330,712 | ) | |||
Accumulated Other Comprehensive Income | 2,339,546 | 7,431,310 | |||||
Retained Earnings | 46,288,610 | 45,429,720 | |||||
Total Shareholders' Equity | 78,350,691 | 82,592,484 | |||||
Total Liabilities And Shareholders' Equity | $ | 867,353,718 | $ | 890,354,587 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest Income: | ||||||||||||||||
Loans | $ | 5,524,185 | $ | 6,086,191 | $ | 11,109,071 | $ | 12,677,801 | ||||||||
Mortgage-Backed Securities | 1,221,271 | 1,764,712 | 2,582,447 | 3,536,916 | ||||||||||||
Investment Securities | 932,545 | 622,536 | 1,688,416 | 1,209,513 | ||||||||||||
Other | 1,707 | 1,966 | 4,043 | 2,750 | ||||||||||||
Total Interest Income | 7,679,708 | 8,475,405 | 15,383,977 | 17,426,980 | ||||||||||||
Interest Expense: | ||||||||||||||||
NOW And Money Market Accounts | 211,968 | 291,585 | 444,056 | 649,558 | ||||||||||||
Statement Savings Accounts | 9,724 | 10,901 | 20,788 | 21,411 | ||||||||||||
Certificate Accounts | 674,138 | 1,033,105 | 1,414,013 | 2,156,283 | ||||||||||||
FHLB Advances And Other Borrowed Money | 915,786 | 1,133,300 | 1,898,891 | 2,304,787 | ||||||||||||
Senior Convertible Debentures | 121,680 | 121,680 | 243,360 | 243,360 | ||||||||||||
Junior Subordinated Debentures | 25,787 | 28,311 | 51,597 | 57,404 | ||||||||||||
Total Interest Expense | 1,959,083 | 2,618,882 | 4,072,705 | 5,432,803 | ||||||||||||
Net Interest Income | 5,720,625 | 5,856,523 | 11,311,272 | 11,994,177 | ||||||||||||
Provision For Loan Losses | 900,000 | 725,000 | 2,045,381 | 2,675,000 | ||||||||||||
Net Interest Income After Provision For Loan Losses | 4,820,625 | 5,131,523 | 9,265,891 | 9,319,177 | ||||||||||||
Non-Interest Income: | ||||||||||||||||
Gain On Sale Of Investment Securities | 369,729 | 103,659 | 753,780 | 638,619 | ||||||||||||
Gain On Sale Of Loans | 210,840 | 132,952 | 395,628 | 276,110 | ||||||||||||
Service Fees On Deposit Accounts | 278,263 | 278,563 | 542,094 | 555,827 | ||||||||||||
Commissions From Insurance Agency | 104,649 | 107,773 | 244,962 | 225,943 | ||||||||||||
Trust Income | 135,000 | 120,000 | 270,000 | 246,000 | ||||||||||||
Bank Owned Life Insurance Income | 78,000 | 105,000 | 183,000 | 210,000 | ||||||||||||
Check Card Fee Income | 222,929 | 204,860 | 418,122 | 403,183 | ||||||||||||
Community Development Financial Institution ("CDFI") Financial Award Income | 220,071 | — | 636,071 | — | ||||||||||||
Other | 123,422 | 130,929 | 244,228 | 242,541 | ||||||||||||
Total Non-Interest Income | 1,742,903 | 1,183,736 | 3,687,885 | 2,798,223 | ||||||||||||
Non-Interest Expense: | ||||||||||||||||
Compensation And Employee Benefits | 2,768,450 | 2,614,044 | 5,589,825 | 5,354,123 | ||||||||||||
Occupancy | 487,664 | 491,747 | 962,978 | 935,277 | ||||||||||||
Advertising | 70,088 | 81,944 | 177,731 | 159,251 | ||||||||||||
Depreciation And Maintenance Of Equipment | 369,760 | 404,594 | 808,932 | 833,320 | ||||||||||||
Federal Deposit Insurance Corporation ("FDIC") Insurance Premiums | 196,476 | 185,628 | 364,198 | 324,449 | ||||||||||||
Amortization Of Intangibles | 12,501 | 12,501 | 25,002 | 25,002 | ||||||||||||
Net Cost Of Operation Of Other Real Estate Owned | 341,392 | 642,151 | 737,761 | 1,053,855 | ||||||||||||
Prepayment Penalties on FHLB Advances | 85,089 | — | 238,342 | — | ||||||||||||
Other | 1,060,192 | 865,599 | 1,999,727 | 1,737,800 | ||||||||||||
Total General And Administrative Expenses | 5,391,612 | 5,298,208 | 10,904,496 | 10,423,077 | ||||||||||||
Income Before Income Taxes | 1,171,916 | 1,017,051 | 2,049,280 | 1,694,323 | ||||||||||||
Provision For Income Taxes | 293,354 | 286,323 | 499,349 | 533,648 | ||||||||||||
Net Income | 878,562 | 730,728 | 1,549,931 | 1,160,675 | ||||||||||||
Preferred Stock Dividends | 110,000 | 110,000 | 220,000 | 220,000 | ||||||||||||
Net Income Available To Common Shareholders | $ | 768,562 | $ | 620,728 | $ | 1,329,931 | $ | 940,675 | ||||||||
Net Income Per Common Share (Basic) | $ | 0.26 | $ | 0.21 | $ | 0.45 | $ | 0.32 | ||||||||
Net Income Per Common Share (Diluted) | $ | 0.26 | $ | 0.21 | $ | 0.45 | $ | 0.32 | ||||||||
Cash Dividend Per Share On Common Stock | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | ||||||||
Weighted Average Shares Outstanding (Basic) | 2,944,001 | 2,944,001 | 2,944,001 | 2,944,001 | ||||||||||||
Weighted Average Shares Outstanding (Diluted) | 2,944,001 | 2,944,001 | 2,944,001 | 2,944,001 |
Three Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
Net Income | $ | 878,562 | $ | 730,728 | ||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized Gains (Losses) On Securities: | ||||||||
Unrealized Holding Gains (Losses) On Securities Available For Sale, Net Of Taxes Of $2,805,077 And $350,458 At June 30, 2013 And 2012, Respectively | (4,578,780 | ) | 636,069 | |||||
Reclassification Adjustment For Gains Included In Net Income, Net Of Taxes Of $140,497 And $39,390 At June 30, 2013 And 2012, Respectively | (229,232 | ) | (64,269 | ) | ||||
HeldTo Maturity Transfer To Available For Sale, Net Of Taxes of $530,733 and $0 at June 30, 2013 and 2012, Respectively | 865,933 | — | ||||||
Other Comprehensive Income (Loss) | (3,942,079 | ) | 571,800 | |||||
Comprehensive Income (Loss) | $ | (3,063,517 | ) | $ | 1,302,528 |
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
Net Income | $ | 1,549,931 | $ | 1,160,675 | ||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized Gains (Losses) On Securities: | ||||||||
Unrealized Holding Gains (Losses) On Securities Available For Sale, Net Of Taxes Of $3,363,779 And $422,349 At June 30, 2013 And 2012, Respectively | (5,490,354 | ) | 1,085,040 | |||||
Reclassification Adjustment For Gains Included In Net Income, Net Of Taxes Of $286,436 And $242,675 At June 30, 2013 And 2012, Respectively | (467,343 | ) | (395,944 | ) | ||||
HeldTo Maturity Transfer To Available For Sale, Net Of Taxes Of $530,733 And $0 At June 30, 2013 And 2012, Respectively | 865,933 | — | ||||||
Other Comprehensive Income (Loss) | (5,091,764 | ) | 689,096 | |||||
Comprehensive Income (Loss) | $ | (3,541,833 | ) | $ | 1,849,771 |
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 | — | — | — | — | — | — | 1,160,675 | 1,160,675 | |||||||||||||||||||||||
Other Comprehensive Income, Net Of Tax | — | — | — | — | — | 689,096 | — | 689,096 | |||||||||||||||||||||||
Stock Compensation Expense | — | — | — | 16,562 | — | — | — | 16,562 | |||||||||||||||||||||||
Cash Dividends On Preferred | — | — | — | — | — | — | (220,000 | ) | (220,000 | ) | |||||||||||||||||||||
Cash Dividends On Common | — | — | — | — | — | — | (471,039 | ) | (471,039 | ) | |||||||||||||||||||||
Balance at June 30, 2012 | $ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,634,526 | $ | (4,330,712 | ) | $ | 7,105,373 | $ | 44,896,539 | $ | 81,737,175 |
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 | — | — | — | — | — | — | 1,549,931 | 1,549,931 | |||||||||||||||||||||||
Other Comprehensive Loss, Net Of Tax | — | — | — | — | — | (5,091,764 | ) | — | (5,091,764 | ) | |||||||||||||||||||||
Stock Compensation Expense | — | — | — | (8,919 | ) | — | — | — | (8,919 | ) | |||||||||||||||||||||
Cash Dividends On Preferred | — | — | — | — | — | — | (220,000 | ) | (220,000 | ) | |||||||||||||||||||||
Cash Dividends On Common | — | — | — | — | — | — | (471,041 | ) | (471,041 | ) | |||||||||||||||||||||
Balance at June 30, 2013 | $ | 22,000,000 | $ | 400,000 | $ | 31,449 | $ | 11,621,798 | $ | (4,330,712 | ) | $ | 2,339,546 | $ | 46,288,610 | $ | 78,350,691 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 1,549,931 | $ | 1,160,675 | |||
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities: | |||||||
Depreciation Expense | 645,468 | 726,856 | |||||
Amortization Of Intangible Assets | 25,002 | 25,002 | |||||
Stock Option Compensation Expense | (8,919 | ) | 16,562 | ||||
Discount Accretion And Premium Amortization | 3,848,810 | 3,516,967 | |||||
Provisions For Losses On Loans | 2,045,381 | 2,675,000 | |||||
Income From Bank Owned Life Insurance | (183,000 | ) | (210,000 | ) | |||
Gain On Sales Of Loans | (395,628 | ) | (276,110 | ) | |||
Gain On Sales Of Mortgage-Backed Securities | (384,051 | ) | (308,958 | ) | |||
Gain On Sales Of Investment Securities | (369,729 | ) | (329,661 | ) | |||
(Gain) Loss On Sale Of Real Estate Owned | (991 | ) | 10,000 | ||||
Write Down On Real Estate Owned | 574,378 | 741,500 | |||||
Amortization Of Deferred Fees On Loans | (3,335 | ) | (4,490 | ) | |||
Gain On Disposition Of Premises And Equipment | 930 | — | |||||
Proceeds From Sale Of Loans Held For Sale | 17,376,516 | 17,504,005 | |||||
Origination Of Loans Held For Sale | (15,685,061 | ) | (14,755,305 | ) | |||
(Increase) Decrease In Accrued Interest Receivable: | |||||||
Loans | (26,295 | ) | 420,739 | ||||
Mortgage-Backed Securities | 96,245 | 12,387 | |||||
Investment Securities | (273,802 | ) | (38 | ) | |||
Increase In Advance Payments By Borrowers | 304,934 | 272,140 | |||||
Other, Net | 1,735,478 | (1,696,874 | ) | ||||
Net Cash Provided By Operating Activities | 10,872,262 | 9,500,397 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase Of Mortgage-Backed Securities Available For Sale | (48,748,823 | ) | (40,821,638 | ) | |||
Principal Repayments On Mortgage-Backed Securities Available For Sale | 31,690,621 | 25,841,714 | |||||
Purchase Of Mortgage-Backed Securities Held To Maturity | — | (4,334,682 | ) | ||||
Principal Repayments On Mortgage-Backed Securities Held To Maturity | 942,806 | 788,430 | |||||
Purchase Of Investment Securities Available For Sale | (39,548,282 | ) | (41,608,772 | ) | |||
Maturities Of Investment Securities Available For Sale | 8,692,353 | 15,364,809 | |||||
Purchase of Investment Securities Held To Maturity | (1,000,000 | ) | (8,540,310 | ) | |||
Maturities Of Investment Securities Held To Maturity | 3,501,978 | 5,240,074 | |||||
Proceeds From Sale of Investment Securities Available For Sale | 10,875,010 | 7,875,167 | |||||
Proceeds From Sale of Mortgage-Backed Securities Available For Sale | 20,946,735 | 13,394,048 | |||||
Proceeds From Redemption of Certificates Of Deposits With Other Banks | 250,000 | — | |||||
Purchase Of FHLB Stock | (2,165,206 | ) | — | ||||
Redemption Of FHLB Stock | 3,156,006 | 1,542,604 | |||||
Decrease In Loans Receivable | 17,536,325 | 25,230,914 | |||||
Capital Improvements To Repossessed Assets | — | (36,877 | ) | ||||
Proceeds From Sale Of Repossessed Assets | 4,182,107 | 1,558,483 | |||||
Purchase And Improvement Of Premises And Equipment | (419,894 | ) | (56,156 | ) | |||
Proceeds From Sale of Premises and Equipment | 1,250 | — | |||||
Net Cash Provided By Investing Activities | 9,892,986 | 1,437,808 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Continued | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Increase (Decrease) In Deposit Accounts | $ | (5,256,308 | ) | $ | 4,788,686 | ||
Proceeds From FHLB Advances | 60,900,000 | 44,600,001 | |||||
Repayment Of FHLB Advances | (74,608,520 | ) | (57,008,352 | ) | |||
Increase in Other Borrowings, Net | 322,568 | 228,163 | |||||
Dividends To Preferred Stock Shareholders | (220,000 | ) | (220,000 | ) | |||
Dividends To Common Stock Shareholders | (471,041 | ) | (471,039 | ) | |||
Net Cash Used By Financing Activities | (19,333,301 | ) | (8,082,541 | ) | |||
Net Increase In Cash And Cash Equivalents | 1,431,947 | 2,855,664 | |||||
Cash And Cash Equivalents At Beginning Of Period | 7,903,950 | 7,797,544 | |||||
Cash And Cash Equivalents At End Of Period | $ | 9,335,897 | $ | 10,653,208 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash Paid During The Period For: | |||||||
Interest | $ | 4,164,419 | $ | 5,574,501 | |||
Income Taxes | $ | 68,419 | $ | 1,278,941 | |||
Supplemental Schedule Of Non Cash Transactions: | |||||||
Transfers From Loans Receivable To Other Real Estate Owned | $ | 2,782,523 | $ | 2,358,381 | |||
Transfers From Investment Securities Held To Maturity To Available For Sale | $ | 49,907,323 | $ | — | |||
Transfers From Mortgage-Backed Securities Held To Maturity To Available For Sale | $ | 22,100,000 | $ | — |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Earnings Available To Common Shareholders: | |||||||||||||||
Net Income | $878,562 | $730,728 | $1,549,931 | $1,160,675 | |||||||||||
Preferred Stock Dividends | 110,000 | 110,000 | 220,000 | 220,000 | |||||||||||
Net Income Available To Common Shareholders | $768,562 | $620,728 | $1,329,931 | $940,675 |
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||
Balance, Beginning of Period | 68,400 | $22.63 | 68,400 | $22.63 | |||||
Options Granted | — | — | — | — | |||||
Options Exercised | — | — | — | — | |||||
Options Forfeited | — | — | — | — | |||||
Balance, End Of Period | 68,400 | $22.63 | 68,400 | $22.63 | |||||
Options Exercisable | 47,500 | ||||||||
Options Available For Grant | 50,000 |
Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | ||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||
Balance, Beginning of Period | 72,900 | $22.62 | 74,900 | $22.61 | |||||
Options Granted | — | — | — | — | |||||
Options Exercised | — | — | — | — | |||||
Options Forfeited | — | — | (2,000 | ) | 22.02 | ||||
Balance, End Of Period | 72,900 | $22.62 | 72,900 | $22.62 | |||||
Options Exercisable | 44,000 | ||||||||
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 |
June 30, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair value | ||||||||||||
FHLB Securities | $ | 16,788,459 | $ | 66,319 | $ | 522,191 | $ | 16,332,587 | |||||||
Federal Farm Credit Bank ("FFCB") Securities | 5,756,637 | — | 242,720 | 5,513,917 | |||||||||||
Fannie Mae ("FNMA") And Freddie Mac ("FHLMC") Bonds | 3,015,316 | 1,855 | 25,320 | 2,991,851 | |||||||||||
Small Business Administration (“SBA”) Bonds | 89,367,398 | 2,381,429 | 222,179 | 91,526,648 | |||||||||||
Tax Exempt Municipal Bonds | 62,148,887 | 507,294 | 2,890,385 | 59,765,796 | |||||||||||
Mortgage-Backed Securities | 251,226,352 | 7,368,429 | 2,643,194 | 255,951,587 | |||||||||||
Equity Securities | 257,938 | — | 8,438 | 249,500 | |||||||||||
$ | 428,560,987 | $ | 10,325,326 | $ | 6,554,427 | $ | 432,331,886 | ||||||||
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 | $ | 2,000,000 | $ | 2,006,870 | |||
One – Five Years | 14,312,240 | 14,665,395 | |||||
Over Five – Ten Years | 67,498,366 | 67,969,587 | |||||
More Than Ten Years | 93,524,029 | 91,738,447 | |||||
Mortgage-Backed Securities | 251,226,352 | 255,951,587 | |||||
$ | 428,560,987 | $ | 432,331,886 |
June 30, 2013 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
FHLB Securities | $ | 12,475,360 | $ | 522,191 | $ | — | $ | — | $ | 12,475,360 | $ | 522,191 | |||||||||||
FFCB Securities | 5,513,918 | 242,720 | 5,513,918 | 242,720 | |||||||||||||||||||
FNMA And FHLMC Bonds | 1,990,280 | 25,320 | 1,990,280 | 25,320 | |||||||||||||||||||
SBA Bonds | 14,595,582 | 222,179 | — | — | 14,595,582 | 222,179 | |||||||||||||||||
Tax Exempt Municipal Bond | 40,708,636 | 2,890,385 | — | — | 40,708,636 | 2,890,385 | |||||||||||||||||
Mortgage-Backed Securities | 68,147,948 | 2,636,697 | 1,287,119 | 6,497 | 69,435,067 | 2,643,194 | |||||||||||||||||
Equity Securities | — | — | 94,500 | 8,438 | 94,500 | 8,438 | |||||||||||||||||
$ | 143,431,724 | $ | 6,539,492 | $ | 1,381,619 | $ | 14,935 | $ | 144,813,343 | $ | 6,554,427 |
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 |
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 |
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 |
June 30, 2013 | December 31, 2012 | ||||||
Residential Real Estate Loans | $ | 86,599,007 | $ | 90,677,625 | |||
Consumer Loans | 52,847,476 | 56,595,093 | |||||
Commercial Business | 7,454,477 | 8,063,901 | |||||
Commercial Real Estate | 236,750,839 | 250,924,094 | |||||
Total Loans Held For Investment | 383,651,799 | 406,260,713 | |||||
Loans Held For Sale | 3,474,933 | 4,770,760 | |||||
Total Loans Receivable, Gross | 387,126,732 | 411,031,473 | |||||
Less: | |||||||
Allowance For Loan Losses | 11,007,279 | 11,318,371 | |||||
Loans In Process | 2,085,769 | 2,002,595 | |||||
Deferred Loan Fees (Costs) | (15,415 | ) | 4,687 | ||||
13,077,633 | 13,325,653 | ||||||
Total Loans Receivable, Net | $ | 374,049,099 | $ | 397,705,820 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance At Beginning Of Period | $ | 11,105,226 | $ | 14,615,198 | $ | 11,318,371 | $ | 14,261,374 | |||||||
Provision For Loan Losses | 900,000 | 725,000 | 2,045,381 | 2,675,000 | |||||||||||
Charge Offs | (1,081,851 | ) | (2,822,025 | ) | (2,467,311 | ) | (4,439,535 | ) | |||||||
Recoveries | 83,904 | 166,154 | 110,838 | 187,488 | |||||||||||
Total Allowance For Loan Losses | $ | 11,007,279 | $ | 12,684,327 | $ | 11,007,279 | $ | 12,684,327 |
Credit Quality Measures | |||||||||||||||||||
June 30, 2013 | Pass | Caution | Special Mention | Substandard | Total Loans | ||||||||||||||
Residential Real Estate | $ | 78,789,013 | $ | 486,435 | $ | 408,320 | $ | 6,915,239 | $ | 86,599,007 | |||||||||
Consumer | 50,822,120 | 148,152 | 170,351 | 1,706,853 | 52,847,476 | ||||||||||||||
Commercial Business | 5,951,357 | 240,266 | 465,402 | 797,452 | 7,454,477 | ||||||||||||||
Commercial Real Estate | 146,176,809 | 37,793,000 | 20,616,263 | 32,164,767 | 236,750,839 | ||||||||||||||
Total | $ | 281,739,299 | $ | 38,667,853 | $ | 21,660,336 | $ | 41,584,311 | $ | 383,651,799 |
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 | $ | 2,474,549 | $ | 636,030 | $ | 3,053,149 | $ | 6,163,728 | $ | 80,435,279 | $ | 86,599,007 | |||||||||||
Consumer | 794,883 | 688,555 | 505,138 | 1,988,576 | 50,858,900 | 52,847,476 | |||||||||||||||||
Commercial Business | 230,356 | 132,802 | 2,264 | 365,422 | 7,089,055 | 7,454,477 | |||||||||||||||||
Commercial Real Estate | 8,931,343 | 2,600,012 | 8,644,831 | 20,176,186 | 216,574,653 | 236,750,839 | |||||||||||||||||
Total | $ | 12,431,131 | $ | 4,057,399 | $ | 12,205,382 | $ | 28,693,912 | $ | 354,957,887 | $ | 383,651,799 |
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 June 30, 2013 | At December 31, 2012 | $ | % | |||||||||||||||||
Amount | Percent (1) | Amount | Percent (1) | Decrease | Decrease | |||||||||||||||
Non-accrual Loans: | ||||||||||||||||||||
Residential Real Estate | $ | 3,053,149 | 0.8 | % | $ | 3,757,801 | 0.9 | % | $ | (704,652 | ) | (18.8 | )% | |||||||
Commercial Business | 2,264 | — | 86,991 | — | (84,727 | ) | (97.4 | ) | ||||||||||||
Commercial Real Estate | 8,644,831 | 2.3 | 13,913,190 | 3.4 | (5,268,359 | ) | (37.9 | ) | ||||||||||||
Consumer | 505,138 | 0.1 | 646,136 | 0.2 | (140,998 | ) | (21.8 | ) | ||||||||||||
Total Non- accrual Loans | $ | 12,205,382 | 3.2 | % | $ | 18,404,118 | 4.5 | % | $ | (6,198,736 | ) | (33.7 | )% |
For the Three Months Ended June 30, 2013 | ||||||||||||||||||||
Residential Real Estate | Consumer | Commercial Business | Commercial Real Estate | Total | ||||||||||||||||
Beginning Balance | $ | 1,591,884 | $ | 908,393 | $ | 542,903 | $ | 8,062,046 | $ | 11,105,226 | ||||||||||
Provision | 156,264 | 66,151 | (57,981 | ) | 735,566 | 900,000 | ||||||||||||||
Charge-Offs | (82,277 | ) | (96,499 | ) | — | (903,075 | ) | (1,081,851 | ) | |||||||||||
Recoveries | — | 10,868 | 3,632 | 69,404 | 83,904 | |||||||||||||||
Ending Balance | $ | 1,665,871 | $ | 888,913 | $ | 488,554 | $ | 7,963,941 | $ | 11,007,279 |
For the Three Months Ended June 30, 2012 | ||||||||||||||||||||
Residential Real Estate | Consumer | Commercial Business | Commercial Real Estate | Total | ||||||||||||||||
Beginning Balance | $ | 1,928,625 | $ | 1,498,111 | $ | 644,855 | $ | 10,543,607 | $ | 14,615,198 | ||||||||||
Provision | 319,110 | (134,166 | ) | 16,574 | 523,482 | 725,000 | ||||||||||||||
Charge-Offs | (226,972 | ) | (120,427 | ) | (188,730 | ) | (2,285,896 | ) | (2,822,025 | ) | ||||||||||
Recoveries | 9,759 | 8,281 | 525 | 147,589 | 166,154 | |||||||||||||||
Ending Balance | $ | 2,030,522 | $ | 1,251,799 | $ | 473,224 | $ | 8,928,782 | $ | 12,684,327 |
For the Six Months Ended June 30, 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 | 255,835 | (15,662 | ) | (135,047 | ) | 1,940,255 | 2,045,381 | |||||||||||||
Charge-Offs | (111,523 | ) | (116,075 | ) | (4,436 | ) | (2,235,277 | ) | (2,467,311 | ) | ||||||||||
Recoveries | — | 19,379 | 9,118 | 82,341 | 110,838 | |||||||||||||||
Ending Balance | $ | 1,665,871 | $ | 888,913 | $ | 488,554 | $ | 7,963,941 | $ | 11,007,279 |
For the Six Months Ended June 30, 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 | 97,062 | 1,408,134 | (59,501 | ) | 1,229,305 | 2,675,000 | ||||||||||||||
Charge-Offs | (492,655 | ) | (1,182,205 | ) | (188,730 | ) | (2,575,945 | ) | (4,439,535 | ) | ||||||||||
Recoveries | 9,759 | 29,090 | 1,050 | 147,589 | 187,488 | |||||||||||||||
Ending Balance | $ | 2,030,522 | $ | 1,251,799 | $ | 473,224 | $ | 8,928,782 | $ | 12,684,327 |
Allowance For Loan Losses | ||||||||||||
June 30, 2013 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | 118,000 | $ | 1,547,871 | $ | 1,665,871 | ||||||
Consumer | — | 888,913 | 888,913 | |||||||||
Commercial Business | — | 488,554 | 488,554 | |||||||||
Commercial Real Estate | 423,493 | 7,540,448 | 7,963,941 | |||||||||
Total | $ | 541,493 | $ | 10,465,786 | $ | 11,007,279 |
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 | ||||||||||||
June 30, 2013 | Individually Evaluated For Impairment | Collectively Evaluated For Impairment | Total | |||||||||
Residential Real Estate | $ | 3,740,741 | $ | 82,858,266 | $ | 86,599,007 | ||||||
Consumer | 304,436 | 52,543,040 | 52,847,476 | |||||||||
Commercial Business | 22,264 | 7,432,213 | 7,454,477 | |||||||||
Commercial Real Estate | 30,460,094 | 206,290,745 | 236,750,839 | |||||||||
Total | $ | 34,527,535 | $ | 349,124,264 | $ | 383,651,799 |
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 June 30, | |||||||||||||||||||||||||||
June 30, 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 | $ | 3,143,808 | $ | 3,372,407 | $ | — | $ | 3,202,717 | $ | 3,890 | $ | 2,385,897 | $ | 19,202 | ||||||||||||||
Consumer Loans | 304,436 | 368,436 | — | 300,998 | 2,875 | 1,139,528 | 3,498 | |||||||||||||||||||||
Commercial Business | 22,264 | 22,264 | — | 23,302 | — | 18,948 | 161 | |||||||||||||||||||||
Commercial Real Estate | 26,341,863 | 30,170,137 | — | 26,980,203 | 180,095 | 32,966,362 | 211,447 | |||||||||||||||||||||
With An Allowance Recorded: | ||||||||||||||||||||||||||||
Residential Real Estate | 596,933 | 596,933 | 118,000 | 596,933 | 1,938 | 1,088,933 | — | |||||||||||||||||||||
Consumer Loans | — | — | — | — | — | 9,784 | — | |||||||||||||||||||||
Commercial Business | — | — | — | — | — | 74,305 | — | |||||||||||||||||||||
Commercial Real Estate | 4,118,231 | 5,529,591 | 423,493 | 4,191,700 | 26,979 | 4,030,147 | — | |||||||||||||||||||||
Total | ||||||||||||||||||||||||||||
Residential Real Estate | 3,740,741 | 3,969,340 | 118,000 | 3,799,650 | 5,828 | 3,474,830 | 19,202 | |||||||||||||||||||||
Consumer Loans | 304,436 | 368,436 | — | 300,998 | 2,875 | 1,149,312 | 3,498 | |||||||||||||||||||||
Commercial Business | 22,264 | 22,264 | — | 23,302 | — | 93,253 | 161 | |||||||||||||||||||||
Commercial Real Estate | 30,460,094 | 35,699,728 | 423,493 | 31,171,903 | 207,074 | 36,996,509 | 211,447 | |||||||||||||||||||||
Total | $ | 34,527,535 | $ | 40,059,768 | $ | 541,493 | $ | 35,295,853 | $ | 215,777 | $ | 41,713,904 | $ | 234,308 |
For The Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Impaired Loans | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
With No Related Allowance Recorded: | ||||||||||||||||
Residential Real Estate | $ | 3,236,129 | $ | 6,087 | $ | 2,225,982 | $ | 78,521 | ||||||||
Consumer Loans | 300,783 | 3,467 | 1,768,913 | 10,581 | ||||||||||||
Commercial Business | 24,819 | — | 156,921 | 161 | ||||||||||||
Commercial Real Estate | 27,549,900 | 506,537 | 28,493,205 | 927,888 | ||||||||||||
With An Allowance Recorded: | ||||||||||||||||
Residential Real Estate | 596,933 | 9,548 | 837,521 | 6,137 | ||||||||||||
Consumer Loans | — | — | 18,983 | — | ||||||||||||
Commercial Business | — | — | 140,720 | 956 | ||||||||||||
Commercial Real Estate | 4,216,012 | 63,051 | 4,358,679 | 185,521 | ||||||||||||
Total | ||||||||||||||||
Residential Real Estate | 3,833,062 | 15,635 | 3,063,503 | 84,658 | ||||||||||||
Consumer Loans | 300,783 | 3,467 | 1,787,896 | 10,581 | ||||||||||||
Commercial Business | 24,819 | — | 297,641 | 1,117 | ||||||||||||
Commercial Real Estate | 31,765,912 | 569,588 | 32,851,884 | 1,113,409 | ||||||||||||
Total | $ | 35,924,576 | $ | 588,690 | $ | 38,000,924 | $ | 1,209,765 |
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 June 30, 2013 | For the Three Months Ended June 30, 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 | — | — | — | — | — | — | ||||||||||||||||
Commercial Business | — | — | — | — | — | — | ||||||||||||||||
Commercial Real Estate | 1 | 329,999 | 329,999 | — | — | — | ||||||||||||||||
Total | 1 | $ | 329,999 | $ | 329,999 | — | $ | — | $ | — |
For the Six Months Ended June 30, 2013 | For the Six Months Ended June 30, 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 | 4 | 1,651,023 | 1,651,023 | 9 | 7,871,114 | 7,871,114 | ||||||||||||||||
Total | 4 | $ | 1,651,023 | $ | 1,651,023 | 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) | ||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||
SECURITY FEDERAL CORP. | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 67,683 | 16.7 | % | $ | 16,261 | 4.0 | % | N/A | N/A | ||||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 72,838 | 17.9 | % | 32,522 | 8.0 | % | N/A | N/A | ||||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 67,683 | 7.8 | % | 34,680 | 4.0 | % | N/A | N/A | ||||||||||||
SECURITY FEDERAL BANK | ||||||||||||||||||||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | $ | 80,048 | 19.7 | % | $ | 16,250 | 4.0 | % | $ | 24,376 | 6.0 | % | ||||||||
Total Risk-Based Capital (To Risk Weighted Assets) | 85,185 | 21.0 | % | 32,501 | 8.0 | % | 40,626 | 10.0 | % | |||||||||||
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | 80,048 | 9.2 | % | 34,670 | 4.0 | % | 43,337 | 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 | $ | — | $ | 16,332,587 | $ | — | |||||
FFCB Securities | — | 5,513,917 | — | ||||||||
FNMA And FHLMC Bonds | — | 2,991,851 | — | ||||||||
SBA Bonds | — | 91,526,648 | — | ||||||||
Tax Exempt Municipal Bonds | — | 59,765,796 | — | ||||||||
Mortgage-Backed Securities | — | 255,951,587 | — | ||||||||
Equity Securities | — | 249,500 | — | ||||||||
Total | $ | — | $ | 432,331,886 | $ | — |
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 June 30, 2013 | ||||||||||||
Mortgage Loans Held For Sale | $ | — | $ | 3,474,933 | $ | — | $ | 3,474,933 | ||||||||
Collateral Dependent Impaired Loans (1) | — | — | 33,986,042 | 33,986,042 | ||||||||||||
Foreclosed Assets | — | — | 4,781,454 | 4,781,454 | ||||||||||||
Total | $ | — | $ | 3,474,933 | $ | 38,767,496 | $ | 42,242,429 |
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 | ||||||||
June 30, | Valuation | Unobservable | |||||||
2013 | Technique | Inputs | Range | ||||||
Collateral Dependent Impaired Loans | $ | 33,986,042 | Appraised Value | Discount Rates/ Discounts to Appraised Values | 0% - 70% | ||||
Foreclosed Assets | 4,781,454 | Appraised Value/Comparable Sales | Discount Rates/ Discounts to Appraised Values | 0% - 73% |
June 30, 2013 | |||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||
(In Thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash And Cash Equivalents | $ | 9,336 | $ | 9,336 | $ | 9,336 | $ | — | $ | — | |||||||||
Certificates Of Deposits With Other Banks | 1,479 | 1,479 | — | 1,479 | — | ||||||||||||||
Investment And Mortgage-Backed Securities | 432,332 | 432,332 | — | 432,332 | — | ||||||||||||||
Loans Receivable, Net | 374,049 | 376,149 | — | — | 376,149 | ||||||||||||||
FHLB Stock | 5,188 | 5,188 | 5,188 | — | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Checking, Savings, And Money Market Accounts | $ | 398,111 | $ | 398,111 | $ | 398,111 | $ | — | $ | — | |||||||||
Certificate Accounts | 272,971 | 274,292 | — | 274,292 | — | ||||||||||||||
Advances From FHLB | 91,549 | 97,117 | — | 97,117 | — | ||||||||||||||
Other Borrowed Money | 9,640 | 9,640 | 9,640 | — | — | ||||||||||||||
Senior Convertible Debentures | 6,084 | 6,084 | — | 6,084 | — | ||||||||||||||
Junior Subordinated Debentures | 5,155 | 5,155 | — | 5,155 | — |
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 | 6,084 | 6,084 | — | 6,084 | — | ||||||||||||||
Junior Subordinated Debentures | 5,155 | 5,155 | — | 5,155 | — |
• | 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 and the implementing regulations, and the recently issued Basel III regulatory capital requirements; |
• | 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) | |||||||||||||
June 30, 2013 | December 31, 2012 | Amount | Percent | ||||||||||
Cash And Cash Equivalents | $ | 9,335,897 | $ | 7,903,950 | $ | 1,431,947 | 18.1% | ||||||
Investment And Mortgage- Backed Securities – Available For Sale | 432,331,886 | 354,916,216 | 77,415,670 | 21.8 | |||||||||
Investment And Mortgage- Backed Securities – Held To Maturity | — | 76,072,262 | (76,072,262 | ) | (100.0) | ||||||||
Loans Receivable, Net | 374,049,099 | 397,705,820 | (23,656,721 | ) | (5.9) | ||||||||
Repossessed Assets Acquired In Settlement Of Loans | 4,781,454 | 6,754,425 | (1,972,971 | ) | (29.2) | ||||||||
FHLB Stock | 5,187,900 | 6,178,700 | (990,800 | ) | (16.0) | ||||||||
Other Assets | 6,464,230 | 5,488,960 | 975,270 | 17.8 |
Balance | |||||||||||||||
June 30, 2013 | December 31, 2012 | Increase (Decrease) | |||||||||||||
Balance | Weighted Rate | Balance | Weighted Rate | Amount | Percent | ||||||||||
Demand Accounts: | |||||||||||||||
Checking | $ | 134,925,969 | 0.07% | $ | 126,740,707 | 0.06% | $ | 8,185,262 | 6.46% | ||||||
Money Market | 238,997,382 | 0.33 | 234,382,412 | 0.38 | 4,614,970 | 1.97 | |||||||||
Statement Savings Accounts | 24,187,183 | 0.15 | 22,411,240 | 0.20 | 1,775,943 | 7.92 | |||||||||
Total | 398,110,534 | 0.23 | 383,534,359 | 0.26 | 14,576,175 | 3.80 | |||||||||
Certificate Accounts | |||||||||||||||
0.00 – 1.99% | 238,619,251 | 255,422,955 | (16,803,704) | (6.58) | |||||||||||
2.00 – 2.99% | 31,217,119 | 32,975,486 | (1,758,367) | (5.33) | |||||||||||
3.00 – 3.99% | 1,740,001 | 2,380,728 | (640,727) | (26.91) | |||||||||||
4.00 – 4.99% | 881,471 | 1,523,474 | (642,003) | (42.14) | |||||||||||
5.00 – 5.99% | 513,969 | 501,651 | 12,318 | 2.46 | |||||||||||
Total | 272,971,811 | 0.95 | 292,804,294 | 1.11 | (19,832,483) | (6.77) | |||||||||
Total Deposits | $ | 671,082,345 | 0.52% | $ | 676,338,653 | 0.63% | $ | (5,256,308) | (0.78)% |
Balance | |||||||||||
June 30, 2013 | December 31, 2012 | Decrease | |||||||||
Fiscal Year Due: | Balance | Rate | Balance | Rate | Balance | Percent | |||||
2013 | $ | 8,400,000 | 2.72% | $ | 22,100,000 | 2.92% | $ | (13,700,000) | (61.99)% | ||
2014 | 30,248,662 | 3.33 | 30,257,182 | 3.33 | (8,520) | (0.03) | |||||
2015 | 15,000,000 | 4.01 | 15,000,000 | 4.01 | — | 0.00 | |||||
2016 | 20,000,000 | 4.61 | 20,000,000 | 4.60 | — | 0.00 | |||||
2017 | 12,900,000 | 4.38 | 12,900,000 | 4.38 | — | 0.00 | |||||
Thereafter | 5,000,000 | 3.39 | 5,000,000 | 3.39 | — | — | |||||
Total Advances | $ | 91,548,662 | 3.82% | $ | 105,257,182 | 3.72% | $ | (13,708,520) | (13.02)% |
As of June 30, 2013 | |||||||||||
Borrow Date | Maturity Date | Amount | Int. Rate | Type | Call Dates | ||||||
11/23/05 | 11/23/15 | 5,000,000 | 3.993 | % | 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 | 3.960 | Multi-Call | 7/25/08 and quarterly thereafter |
Three Months Ended June 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Average Balance | Yield(1) | Average Balance | Yield(1) | Increase (Decrease) In Interest And Dividend Income From 2012 | ||||||||||||
Loans Receivable, Net | $ | 381,504,531 | 5.79 | % | $ | 421,119,301 | 5.78 | % | $ | (562,006) | ||||||
Mortgage-Backed Securities | 249,395,337 | 1.96 | 267,376,698 | 2.64 | (543,441) | |||||||||||
Investment Securities(2) | 181,332,991 | 2.38 | 150,290,654 | 1.84 | 384,293 | |||||||||||
Overnight Time And Certificates of Deposit | 3,362,167 | 0.20 | 3,789,448 | 0.21 | (259 | ) | ||||||||||
Total Interest-Earning Assets | $ | 815,595,026 | 3.84 | % | $ | 842,576,101 | 4.06 | % | $ | (721,413) |
Three Months Ended June 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
Average Balance | Yield(1) | Average Balance | Yield(1) | Decrease In Interest Expense From 2012 | ||||||||||
Now And Money Market Accounts | $ | 322,708,180 | 0.26% | $ | 308,429,997 | 0.38% | $ | (79,617 | ) | |||||
Statement Savings Accounts | 24,356,240 | 0.16 | 22,352,998 | 0.20 | (1,177 | ) | ||||||||
Certificates Accounts | 274,844,828 | 0.98 | 317,538,322 | 1.30 | (358,967 | ) | ||||||||
FHLB Advances And Other Borrowed Money | 105,920,679 | 3.46 | 124,084,189 | 3.65 | (217,514 | ) | ||||||||
Junior Subordinated Debentures | 5,155,000 | 2.00 | 5,155,000 | 2.20 | (2,524 | ) | ||||||||
Senior Convertible Debentures | 6,084,000 | 8.00 | 6,084,000 | 8.00 | — | |||||||||
Total Interest-Bearing Liabilities | $ | 739,068,927 | 1.06% | $ | 783,644,506 | 1.34% | $ | (659,799 | ) |
Three Months Ended June 30, | ||||||
2013 | 2012 | |||||
Beginning Balance | $ | 11,105,226 | $ | 14,615,198 | ||
Provision | 900,000 | 725,000 | ||||
Charge-offs | (1,081,851) | (2,822,025) | ||||
Recoveries | 83,904 | 166,154 | ||||
Ending Balance | $ | 11,007,279 | $ | 12,684,327 | ||
Allowance For Loan Losses As A Percentage Of Gross Loans Receivable, Held For Investment At The End Of The Period | 2.88 | % | 3.00 | % | ||
Allowance For Loan Losses As A Percentage Of Impaired Loans At The End Of The Period | 31.88 | % | 29.75 | % | ||
Gross Loans Receivable, Held For Investment And Held For Sale | $ | 387,126,732 | $ | 427,239,709 | ||
Total Loans Receivable, Net | $ | 374,049,099 | $ | 413,066,894 |
Three Months Ended June 30, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amounts | Percent | |||||||||||
Gain On Sale Of Investments | $ | 369,729 | $ | 103,659 | $ | 266,070 | 256.7% | |||||||
Gain On Sale Of Loans | 210,840 | 132,952 | 77,888 | 58.6 | ||||||||||
Service Fees On Deposit Accounts | 278,263 | 278,563 | (300 | ) | (0.1) | |||||||||
Income From Cash Value Of Life Insurance | 78,000 | 105,000 | (27,000 | ) | (25.7) | |||||||||
Commissions From Insurance Agency | 104,649 | 107,773 | (3,124 | ) | (2.9) | |||||||||
Trust Income | 135,000 | 120,000 | 15,000 | 12.5 | ||||||||||
Check Card Fee Income | 222,929 | 204,860 | 18,069 | 8.8 | ||||||||||
CDFI Financial Award Income | 220,071 | — | 220,071 | 100.0 | ||||||||||
Other | 123,422 | 130,929 | (7,507 | ) | (5.7) | |||||||||
Total Non-Interest Income | $ | 1,742,903 | $ | 1,183,736 | $ | 559,167 | 47.2% |
Three Months Ended June 30, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amounts | Percent | |||||||||||
Compensation And Employee Benefits | $ | 2,768,450 | $ | 2,614,044 | $ | 154,406 | 5.9% | |||||||
Occupancy | 487,664 | 491,747 | (4,083 | ) | (0.8) | |||||||||
Advertising | 70,088 | 81,944 | (11,856 | ) | (14.5) | |||||||||
Depreciation And Maintenance Of Equipment | 369,760 | 404,594 | (34,834 | ) | (8.6) | |||||||||
FDIC Insurance Premiums | 196,476 | 185,628 | 10,848 | 5.8 | ||||||||||
Amortization of Intangibles | 12,501 | 12,501 | — | — | ||||||||||
Net Cost Of Operation Of Other Real Estate Owned | 341,392 | 642,151 | (300,759 | ) | (46.8) | |||||||||
Prepayment Penalties on FHLB Advances | 85,089 | — | 85,089 | 100.0 | ||||||||||
Other | 1,060,192 | 865,599 | 194,593 | 22.5 | ||||||||||
Total General And Administrative Expenses | $ | 5,391,612 | $ | 5,298,208 | $ | 93,404 | 1.8% |
Six Months Ended June 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Average Balance | Yield(1) | Average Balance | Yield(1) | Increase (Decrease) In Interest And Dividend Income From 2012 | |||||||||||||
Loans Receivable, Net | $ | 387,353,900 | 5.74 | % | $ | 429,753,599 | 5.90 | % | $ | (1,568,730) | |||||||
Mortgage-Backed Securities | 247,726,224 | 2.08 | 265,983,343 | 2.66 | (954,469) | ||||||||||||
Investment Securities(2) | 175,000,872 | 2.21 | 143,746,631 | 1.87 | 584,761 | ||||||||||||
Overnight Time And Certificates of Deposit | 5,871,124 | 0.14 | 5,314,103 | 0.10 | 1,293 | ||||||||||||
Total Interest-Earning Assets | $ | 815,952,120 | 3.83 | % | $ | 844,797,676 | 2.67 | % | $ | (1,937,145) |
Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Average Balance | Yield(1) | Average Balance | Yield(1) | Decrease In Interest Expense From 2012 | ||||||||||||
Now And Money Market Accounts | $ | 319,221,712 | 0.28% | $ | 306,110,395 | 0.42 | % | $ | (205,502 | ) | ||||||
Statement Savings Accounts | 23,665,732 | 0.18 | 21,713,139 | 0.20 | (623 | ) | ||||||||||
Certificates Accounts | 278,736,209 | 1.01 | 321,997,326 | 1.34 | (742,270 | ) | ||||||||||
FHLB Advances And Other Borrowed Money | 109,187,416 | 3.48 | 126,390,702 | 3.65 | (405,896 | ) | ||||||||||
Junior Subordinated Debentures | 5,155,000 | 2.00 | 5,155,000 | 2.20 | (5,807 | ) | ||||||||||
Senior Convertible Debentures | 6,084,000 | 8.00 | 6,084,000 | 8.00 | — | |||||||||||
Total Interest-Bearing Liabilities | $ | 742,050,069 | 1.10 | % | $ | 787,450,562 | 1.38 | % | $ | (1,360,098 | ) |
Six Months Ended June 30, | ||||
2013 | 2012 | |||
Beginning Balance | $ | 11,318,371 | $ | 14,261,374 |
Provision | 2,045,381 | 2,675,000 | ||
Charge-offs | (2,467,311) | (4,439,535) | ||
Recoveries | 110,838 | 187,488 | ||
Ending Balance | $ | 11,007,279 | $ | 12,684,327 |
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amounts | Percent | |||||||||||
Gain On Sale Of Investments | $ | 753,780 | $ | 638,619 | $ | 115,161 | 18.0% | |||||||
Gain On Sale Of Loans | 395,628 | 276,110 | 119,518 | 43.3 | ||||||||||
Service Fees On Deposit Accounts | 542,094 | 555,827 | (13,733 | ) | (2.5) | |||||||||
Income From Cash Value Of Life Insurance | 183,000 | 210,000 | (27,000 | ) | (12.9) | |||||||||
Commissions From Insurance Agency | 244,962 | 225,943 | 19,019 | 8.4 | ||||||||||
Trust Income | 270,000 | 246,000 | 24,000 | 9.8 | ||||||||||
Check Card Fee Income | 418,122 | 403,183 | 14,939 | 3.7 | ||||||||||
CDFI Financial Award Income | 636,071 | — | 636,071 | 100.0 | ||||||||||
Other | 244,228 | 242,541 | 1,687 | 0.7 | ||||||||||
Total Non-Interest Income | $ | 3,687,885 | $ | 2,798,223 | $ | 889,662 | 31.8% |
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amounts | Percent | |||||||||||
Compensation And Employee Benefits | $ | 5,589,825 | $ | 5,354,123 | $ | 235,702 | 4.40% | |||||||
Occupancy | 962,978 | 935,277 | 27,701 | 3.0 | ||||||||||
Advertising | 177,731 | 159,251 | 18,480 | 11.6 | ||||||||||
Depreciation And Maintenance Of Equipment | 808,932 | 833,320 | (24,388 | ) | (2.9) | |||||||||
FDIC Insurance Premiums | 364,198 | 324,449 | 39,749 | 12.3 | ||||||||||
Amortization of Intangibles | 25,002 | 25,002 | — | — | ||||||||||
Net Cost Of Operation Of Other Real Estate Owned | 737,761 | 1,053,855 | (316,094 | ) | (30.0) | |||||||||
Prepayment Penalties on FHLB Advances | 238,342 | — | 238,342 | 100.0 | ||||||||||
Other | 1,999,727 | 1,737,800 | 261,927 | 15.1 | ||||||||||
Total General And Administrative Expenses | $ | 10,904,496 | $ | 10,423,077 | $ | 481,419 | 4.6% |
(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 | $ | 177 | $ | 1,176 | $ | 2,022 | $ | 3,375 | $ | 26,161 | $ | 29,536 | |||||||||||
Standby Letters Of Credit | 240 | 233 | 1,856 | 2,329 | — | 2,329 | |||||||||||||||||
Total | $ | 417 | $ | 1,409 | $ | 3,878 | $ | 5,704 | $ | 26,161 | $ | 31,865 |
3.1 | Articles of Incorporation, as amended (1) |
3.2 | Articles of Amendment, including Certificate of Designation relating to the Company’s Fixed Rate Cumulative Perpetual Preferred Stock Series B (2) |
3.3 | Amended and Restated Bylaws (3) |
4.1 | Form of Stock Certificate of the Company and other instruments defining the rights of security holders, including indentures (4) |
4.2 | Form of Stock Certificate for the Series B Preferred Shares (2) |
4.3 | Warrant to purchase shares of the Company’s common stock dated December 19, 2008 (5) |
4.4 | Form of Indenture with respect to the Company’s 8.0% Convertible Senior Debentures Due 2029 (6) |
4.5 | Specimen Convertible Senior Debenture Due 2029 (6) |
4.6 | Letter Agreement dated September 29, 2010 between Security Federal Corporation and the United States Department of the Treasury, including the Exchange Agreement – Standard Terms, with respect to the exchange of the Series A Fixed Rate Cumulative Perpetual Preferred Stock for the Series B Fixed Rate Cumulative Perpetual Preferred Stock (2) |
4.7 | Letter Agreement dated September 29, 2010 between Security Federal Corporation and the United States Department of the Treasury, including the Securities Purchase Agreement – Standard Terms, with respect to the purchase of the Series B Fixed Rate Cumulative Perpetual Preferred Stock (2) |
10.1 | 1993 Salary Continuation Agreements (7) |
10.2 | Amendment One to 1993 Salary Continuation Agreements (8) |
10.3 | Form of 2006 Salary Continuation Agreement (9) |
10.4 | 1999 Stock Option Plan (10) |
10.5 | 2002 Stock Option Plan (11) |
10.6 | 2006 Stock Option Plan (12) |
10.7 | 2008 Equity Incentive Plan (13) |
10.8 | Form of incentive stock option agreement and non-qualified stock option agreement pursuant to the 2006 Stock Option Plan (12) |
10.9 | 2004 Employee Stock Purchase Plan (14) |
10.10 | Incentive Compensation Plan (7) |
10.11 | Form of Security Federal Bank Salary Continuation Agreement (9) |
10.12 | Form of Security Federal Split Dollar Agreement (9) |
10.13 | Form of Compensation Modification Agreement (5) |
14 | Code of Ethics (15) |
25 | Form T-1; Statement Eligibility of Trustee (6) |
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act |
32 | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act |
101 | The following materials from Security Federal Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Balance Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income (Loss); (d) Consolidated Statements of Changes in Shareholders’Equity; (e) Consolidated Statements of Cash Flows; and (f) Notes to Consolidated Financial Statements (16) |
(1) | Filed on June 26, 1998, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference. |
(2) | Incorporated by reference to the Company’s Current Report on Form 8-K filed on September 30, 2010. |
(3) | Incorporated by reference to the Company’s Current Report on Form 8-K filed on December 19, 2011. |
(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. |
(6) | Filed on July 13, 2009 as an exhibit to the Company’s Registration Statement on Form S-1 (File No. 333-160553) and incorporated herein by reference. |
(7) | Filed on June 28, 1993, as an exhibit to the Company’s Annual Report on Form 10-KSB and incorporated herein by reference. |
(8) | Filed as an exhibit to the Company’s Quarterly Report on Form 10-QSB for the quarter ended September 30, 1993 and incorporated herein by reference. |
(9) | Filed on May 24, 2006 as an exhibit to the Company’s Current Report on Form 8-K dated May 18, 2006 and incorporated herein by reference. |
(10) | Filed on March 2, 2000, as an exhibit to the Company's Registration Statement on Form S-8 and incorporated herein by reference |
(11) | Filed on January 3, 2003, as an exhibit to the Company's Registration Statement on Form S-8 and incorporated herein by reference. |
(12) | Filed on August 22, 2006, as an exhibit to the Company's Registration Statement on Form S-8 (Registration Statement No. 333-136813) and incorporated herein by reference. |
(13) | Filed on November 12, 2008, as an exhibit to the Company's Registration Statement on Form S-8 and incorporated herein by reference. |
(14) | Filed on June 18, 2004, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference. |
(15) | Filed on June 29, 2006, as an exhibit to the Company’s Annual Report on Form 10-K and incorporated herein by reference. |
(16) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section |
18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
Date: | August 12, 2013 | By: | /s/J. Chris Verenes | ||
J. Chris Verenes | |||||
President & Chief Executive Officer | |||||
Duly Authorized Representative |
Date: | August 12, 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 June 30, 2013, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Balance Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income (Loss); (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
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable, Net | Loans Receivable, Net Loans receivable, net, consisted of the following as of the dates shown:
Changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 are summarized as follows:
The Company uses a risk based approach based on the following credit quality measures when analyzing the loan portfolio: pass, caution, special mention, and substandard. These indicators are used to rate the credit quality of loans for the purposes of determining the Company’s allowance for loan losses. Pass loans are loans that are performing and are deemed adequately protected by the net worth of the borrower or the underlying collateral value. These loans are considered the least risky in terms of determining the allowance for loan losses. Substandard loans are considered the most risky category. These loans typically have an identified weakness or weaknesses and are inadequately protected by the net worth of the borrower or collateral value. All loans 90 days or more past due are automatically classified in this category. The other two categories fall in between these two grades. The following tables list the loan grades used by the Company as credit quality indicators and the balance in each category at the dates presented, excluding loans held for sale.
9. Loans Receivable, Net, Continued
The following table presents an age analysis of past due balances by category at June 30, 2013:
The following table presents an age analysis of past due balances by category at December 31, 2012:
At June 30, 2013 and December 31, 2012, the Company did not have any loans that were 90 days or more past due and still accruing interest. Our strategy is to work with our borrowers to reach acceptable payment plans while protecting our interests in the existing collateral. In the event an acceptable arrangement cannot be reached, we may have to acquire these properties through foreclosure or other means and subsequently sell, develop, or liquidate them. 9. Loans Receivable, Net, Continued The following table shows non-accrual loans by category at June 30, 2013 compared to December 31, 2012:
(1) PERCENT OF GROSS LOANS RECEIVABLE, NET OF DEFERRED FEES AND LOANS IN PROCESS AND LOANS HELD FOR SALE. The following tables show the activity in the allowance for loan losses by category for the periods indicated:
9. Loans Receivable, Net, Continued
The following tables present information related to impaired loans evaluated individually for impairment and collectively evaluated for impairment in the allowance for loan losses:
9. Loans Receivable, Net, Continued The following tables present information related to impaired loans evaluated individually for impairment and collectively evaluated for impairment in loans receivable for the periods indicated:
Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired management measures impairment and records the loan at fair value. Fair value is estimated using one of the following methods: fair value of the collateral less estimated costs to sale, discounted cash flows, or market value of the loan based on similar debt. The fair value of the collateral less estimated costs to sell is the most frequently used method. Typically, the Company reviews the most recent appraisal and if it is over 24 months old will request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, management may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. The average balance of impaired loans was $35.9 million for six months ended June 30, 2013 compared to $38.0 million for the six months ended June 30, 2012. 9. Loans Receivable, Net, Continued The following tables are a summary of information related to impaired loans as of and for the three months ended June 30, 2013 and 2012.
9. Loans Receivable, Net, Continued
9. Loans Receivable, Net, Continued
In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. A troubled debt restructuring ("TDR") is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that it would not otherwise consider (Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. The Bank grants such concessions to reassess the borrower’s financial status and develop a plan for repayment. TDRs included in impaired loans at June 30, 2013 and December 31, 2012 were $13.0 million and $15.9 million, respectively. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of concession are initially classified as accruing TDRs if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the concession date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower's financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). 9. Loans Receivable, Net, Continued The following table is a summary of loans restructured as TDRs during the periods indicated:
During the three months ended June 30, 2013, the Bank modified one loan that was considered to be a TDR. The Bank lowered the interest rate on this loan to enable the customer to begin making monthly principal and interest payments. During the three months ended June 30, 2012, the Bank did not modify any loans that were considered to be TDRs. At June 30, 2013, all of the TDRs were current and therefore, no loans previously restructured within the last twelve months were in default. The Bank considers any loan 30 days or more past due to be in default. During the six months ended June 30, 2012, four loans with a recorded investment of $879,000 that had been restructured during the last 12 months subsequently defaulted during the period. Our policy with respect to accrual of interest on loans restructured in a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms, continued accrual of interest at the restructured interest rate is likely. If a borrower was materially delinquent on payments prior to the restructuring but shows capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual going forward. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. We will continue to closely monitor these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured note terms. If, after previously being classified as a TDR, a loan is restructured a second time, then that loan is automatically placed on nonaccrual status. Our policy with respect to nonperforming loans requires the borrower to make a minimum of six consecutive payments in accordance with the loan terms before that loan can be placed back on accrual status. Further, the borrower must show capacity to continue performing into the future prior to restoration of accrual status. |
Consolidated Statements of Income (Unaudited) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Interest Income: | ||||
Loans | $ 5,524,185 | $ 6,086,191 | $ 11,109,071 | $ 12,677,801 |
Mortgage-Backed Securities | 1,221,271 | 1,764,712 | 2,582,447 | 3,536,916 |
Investment Securities | 932,545 | 622,536 | 1,688,416 | 1,209,513 |
Other | 1,707 | 1,966 | 4,043 | 2,750 |
Total Interest Income | 7,679,708 | 8,475,405 | 15,383,977 | 17,426,980 |
Interest Expense: | ||||
NOW And Money Market Accounts | 211,968 | 291,585 | 444,056 | 649,558 |
Statement Savings Accounts | 9,724 | 10,901 | 20,788 | 21,411 |
Certificate Accounts | 674,138 | 1,033,105 | 1,414,013 | 2,156,283 |
FHLB Advances And Other Borrowed Money | 915,786 | 1,133,300 | 1,898,891 | 2,304,787 |
Senior Convertible Debentures | 121,680 | 121,680 | 243,360 | 243,360 |
Junior Subordinated Debentures | 25,787 | 28,311 | 51,597 | 57,404 |
Total Interest Expense | 1,959,083 | 2,618,882 | 4,072,705 | 5,432,803 |
Net Interest Income | 5,720,625 | 5,856,523 | 11,311,272 | 11,994,177 |
Provision For Loan Losses | 900,000 | 725,000 | 2,045,381 | 2,675,000 |
Net Interest Income After Provision For Loan Losses | 4,820,625 | 5,131,523 | 9,265,891 | 9,319,177 |
Non-Interest Income: | ||||
Gain On Sale Of Investment Securities | 369,729 | 103,659 | 753,780 | 638,619 |
Gain On Sale Of Loans | 210,840 | 132,952 | 395,628 | 276,110 |
Service Fees On Deposit Accounts | 278,263 | 278,563 | 542,094 | 555,827 |
Commissions From Insurance Agency | 104,649 | 107,773 | 244,962 | 225,943 |
Trust Income | 135,000 | 120,000 | 270,000 | 246,000 |
Bank Owned Life Insurance Income | 78,000 | 105,000 | 183,000 | 210,000 |
Check Card Fee Income | 222,929 | 204,860 | 418,122 | 403,183 |
Community Development Financial Institution (CDFI) Financial Award Income | 220,071 | 0 | 636,071 | 0 |
Other | 123,422 | 130,929 | 244,228 | 242,541 |
Total Non-Interest Income | 1,742,903 | 1,183,736 | 3,687,885 | 2,798,223 |
Non-Interest Expense: | ||||
Compensation And Employee Benefits | 2,768,450 | 2,614,044 | 5,589,825 | 5,354,123 |
Occupancy | 487,664 | 491,747 | 962,978 | 935,277 |
Advertising | 70,088 | 81,944 | 177,731 | 159,251 |
Depreciation And Maintenance Of Equipment | 369,760 | 404,594 | 808,932 | 833,320 |
Federal Deposit Insurance Corporation (FDIC) Insurance Premiums | 196,476 | 185,628 | 364,198 | 324,449 |
Amortization Of Intangibles | 12,501 | 12,501 | 25,002 | 25,002 |
Net Cost Of Operation Of Other Real Estate Owned | 341,392 | 642,151 | 737,761 | 1,053,855 |
Prepayment Penalties on FHLB Advances | 85,089 | 0 | 238,342 | 0 |
Other | 1,060,192 | 865,599 | 1,999,727 | 1,737,800 |
Total General And Administrative Expenses | 5,391,612 | 5,298,208 | 10,904,496 | 10,423,077 |
Income Before Income Taxes | 1,171,916 | 1,017,051 | 2,049,280 | 1,694,323 |
Provision For Income Taxes | 293,354 | 286,323 | 499,349 | 533,648 |
Net Income | 878,562 | 730,728 | 1,549,931 | 1,160,675 |
Preferred Stock Dividends | 110,000 | 110,000 | 220,000 | 220,000 |
Net Income Available To Common Shareholders | $ 768,562 | $ 620,728 | $ 1,329,931 | $ 940,675 |
Net Income Per Common Share (Basic) | $ 0.26 | $ 0.21 | $ 0.45 | $ 0.32 |
Net Income Per Common Share (Diluted) | $ 0.26 | $ 0.21 | $ 0.45 | $ 0.32 |
Cash Dividend Per Share On Common Stock | $ 0.08 | $ 0.08 | $ 0.16 | $ 0.16 |
Weighted Average Shares Outstanding (Basic) | 2,944,001 | 2,944,001 | 2,944,001 | 2,944,001 |
Weighted Average Shares Outstanding (Diluted) | 2,944,001 | 2,944,001 | 2,944,001 | 2,944,001 |
Principles of Consolidation
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Security Federal Bank (the “Bank”) and the Bank’s wholly owned subsidiaries, Security Federal Insurance, Inc. (“SFINS”) and Security Financial Services Corporation (“SFSC”). SFINS was formed during fiscal 2002 and began operating during the December 2001 quarter and is an insurance agency offering auto, business, health, and home insurance. SFINS has a wholly owned subsidiary, Collier Jennings Financial Corporation which has as subsidiaries Security Federal Insurance Technologies, Inc. and Security Federal Premium Pay Plans Inc. (the “Collier Jennings Companies”). Security Federal Premium Pay Plans Inc. has one wholly owned premium finance subsidiary and also has an ownership interest in four other premium finance subsidiaries. SFSC was formed in 1975 and was inactive for several years. During the quarter ended December 31, 2010, it was reactivated and utilized to hold and operate a repossessed hotel located in Hardeeville, South Carolina. Subsequently, in fiscal 2012 the hotel was sold and the subsidiary once again returned to inactive status. The Company has a wholly owned subsidiary, Security Federal Statutory Trust (the “Trust”), which issued and sold fixed and floating rate capital securities of the Trust. However, under current accounting guidance, the Trust is not consolidated in the Company’s financial statements. The Bank is primarily engaged in the business of accepting savings and demand deposits and originating mortgage loans and other loans to individuals and small businesses for various personal and commercial purposes. |
Stock-Based Compensation (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity under stock option plans | The following is a summary of the activity under the Company’s stock option plans for the periods presented:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options outstanding | At June 30, 2013, the Company had the following options outstanding:
|
Regulatory Matters
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | Regulatory Matters The Federal Reserve and bank regulatory agencies require bank holding companies and financial institutions to maintain capital at adequate levels based on a percentage of assets and off-balance sheet exposures, adjusted for risk weights ranging from 0% to 100%. Under the capital adequacy guidelines, regulatory capital is classified into two tiers. These guidelines require an institution to maintain a certain level of Tier 1 and Tier 2 capital to risk-weighted assets. Tier 1 capital consists of common shareholders' equity, excluding the unrealized gain or loss on securities available for sale, minus certain intangible assets. In determining the amount of risk-weighted assets, all assets, including certain off-balance sheet assets, are multiplied by a risk-weight factor of 0% to 100% based on the risks believed to be inherent in the type of asset. Tier 2 capital consists of Tier 1 capital plus the general reserve for loan losses, subject to certain limitations. The Bank is required to maintain capital at a minimum level based on total average assets, which is known as the Tier 1 leverage ratio. Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Company. As of June 30, 2013 and December 31, 2012, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. The Company and the Bank’s regulatory capital amounts and ratios are as follows as of the dates indicated:
|
Carrying Amounts and Fair Value of Financial Instruments (Narrative) (Details) (USD $)
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
investment
|
Dec. 31, 2012
|
Jun. 30, 2012
|
|
Fair Value Disclosures [Abstract] | |||
Number of equity investments | 2 | ||
Investor funding period | 30 days | ||
Review period to request a new third party appraisal | 24 months | ||
Impaired financing receivable, recorded investment | $ 34,527,535 | $ 39,946,538 | $ 879,000 |
Fair value disclosure, off-balance sheet risks, amount, liability | $ 31,900,000 |
Loans Receivable, Net (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable, net, consisted of the following as of the dates shown:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Loan Losses | Changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | The following tables list the loan grades used by the Company as credit quality indicators and the balance in each category at the dates presented, excluding loans held for sale.
9. Loans Receivable, Net, Continued
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables | The following table presents an age analysis of past due balances by category at June 30, 2013:
The following table presents an age analysis of past due balances by category at December 31, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | 9. Loans Receivable, Net, Continued The following table shows non-accrual loans by category at June 30, 2013 compared to December 31, 2012:
(1) PERCENT OF GROSS LOANS RECEIVABLE, NET OF DEFERRED FEES AND LOANS IN PROCESS AND LOANS HELD FOR SALE. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | The following tables show the activity in the allowance for loan losses by category for the periods indicated:
9. Loans Receivable, Net, Continued
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | he following tables present information related to impaired loans evaluated individually for impairment and collectively evaluated for impairment in loans receivable for the periods indicated:
The following tables present information related to impaired loans evaluated individually for impairment and collectively evaluated for impairment in the allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Financing Receivables | The following tables are a summary of information related to impaired loans as of and for the three months ended June 30, 2013 and 2012.
9. Loans Receivable, Net, Continued
9. Loans Receivable, Net, Continued
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | The following table is a summary of loans restructured as TDRs during the periods indicated:
|
Investment and Mortgage-Backed Securities, Held to Maturity (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment and mortgage-backed securities held to maturity | The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment and mortgage-backed securities held to maturity are as follows at December 31, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of held-to-maturity securities in an unrealized loss position | 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 for the periods indicated.
|
G!Y_^
M%L6_J)$%,IY&RHOW58^'?32BT?3\1CE9&7PE=T&'CQ#[);TFZ;_)>>5D'/]R
M\+=!_,O*[9&*L`Z'1+\I=%ZIGOSW+WIXARBB`W;^9R*5UY\^VHW^O6@8E`V5
M.XQ7[TO_O,L>U>,1SCI:Z"]`#`<=,N8B_6NF3OV@8WUK_M1C-?K]"C*_KR>"
M,")(*)>H9JZ#X_D0#1SOS9`$?1Y%_$XKE\H`!3(9C9"8!KP?**0JCQJ@K"2L
M)F8Z(<%8<*9L$Z:3M`SB(8H5@),(!ZC?5]`.T-QV;U0/,\.]2>V(J0PCKDFG
MN^]G9V&A**"+TT>#WE3U20(]\2,V/3=5<[99^IH%];&@45"MO@FTCWF3JKE9
M[S:4W65"<%#OW@9?^5&0A3=G;X('LCR'VVGS ;
MA_IS&V@X=2_Z0:EPJMB&I`B(F:L04LI5*.H0VZH27#UO%3YJ_G,RIF/)$+3K
M/2QF3`0%-UD#:MQ'NZ?%=":K6QH5)`"!526Q!Y65'B%>LC;,/C7S=)L"$!2B
M+CF`TY2,]A2&SI@HZ*X\Z*F:WQ:KTW93WS"*YX,XAUN:EL?I?'UYFWKN'+_6
MFE*-5<'XUBAL72N-7Z_>:N4[XR7M6E"]<0'3=JMZF%?YQ%U206<3Y"L5U6ZY
M0A_&Q+]ET4/7JH[M#$C+RDST*A][IK\M_GE^T8QFW2Z5>W$IZ/J/%G,OQO2Q
MK+XU-Y`1"4^TQ,$7%M]=([<\;XT`[4;LSI^TR\Q5^S6=WJ<3EF_7V[-M7<"I
M.L\5HS,&H!CV.4&'00`-3BFL+]E9G\ZAWWEZIZ&TE$C8K(H&*\?QGGC,P?6'
M#]I-2YK1Z`/:3K<4Z.Z,UI"$<:B6D/0<2ILN.S2*:=:&.J_J"8S6ZA`]T>V!
M_>Y<8C3%!%#!._0V!*K#G4%D=>Z;[,5W^QM36>8NENU@_]W-'F29BP$#)84`
MU@>!TCJB\!ZPMDL.&6N8<:I8_%`![//D]C-E2W')08!)B<0:;8ZYI=1T)(?L
M(O?-3$J"_HU6IKE+;0?7`P25%00*F0-$@JC"Z(ECA0Z..L%`%OU4-O8E/<[)E>HP66==:O-2
M/`^=F.38U_XJ=F.M!C"'9EA?GFB[^S)[[VKV43%SL@4JD1ZO#,AH.U@$;)TC
MXP]PJ^V&`X"1R!1O.%4(+I+XJV%2F!8&UR-JI:?#`?<&B_O;6`(7;1`1"FH*
M*:`*93SLJ\6QQ7YFE)BEPD,*>0_CPL0=>50Z<5#L*(68QFN=40D.[2?2M=-G
M;H_9C22B69U=G5^M?SF[6"Y.V_,_GJ_7_SA?KS97QX_)H!G%` )>0%)07ZF03*F6^YB&\J;#MY'MY999
MSKSQ.E@([TS4P4-<,K V9KN>NS"&G+G!A/H[`:)1J`FL8H6XJ%\WYO
MY3S#`UQY6M:8W:\4P,;/^4[](`3/>N6!FH[7+#I6"K*%YZ77R`0(?HYFW,X^
M[^Z[WKE./'G?;9\UK5:G8V'8W-;UUL_9'A(;IHC/(O$^^^/#PXTQ2Q'S6\F6
MS_6LM8^5G[$;38KV\<3L_OSD(\/5IYMI0WW?=GLWK$L[HRZ"[MO.?.4;OKI"
M7V>`-7TYY^#;*Q;BMI_:T%-VB>KM&QM+J&4X3-?:ZPE$@>P+7#&)L+(K^%*_
M)[Y@9D,K:I\*&1H9FF!7[OVJF3W7IRM7O%V-G:CVA0@P#X"`W;=0EER0O*&;
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MVF/",`@3A`G"!&&BX@^WFY4.9I8/MY_<+%B.R[ZF)'ZA"9GG[VJML867?PK!
M-M67H.$RGGI9Q3YYWUNE9)&4K2;VK).M$GO^9!G%[AD@]B3V)/9\$[9*[/F3
MKIE&L;L=B#\/:Y.O]:HEL2^Q+['OR]BWVRQVCP=Q[S.SK9N/YGHUP7)*VU96
MLQI:/)2PU_`3%G"&_WLDWX[]I0:?VK04VA%V$,K:H>]1#^J6?O#2.\ENEC63
M5TMA9W63LWJCL:R!-@UD<2JL4ANY]]E'L5(2C6&1"^P":PZL+=6\]J\"IC4K
M[;JR"+:19_/E2D]-:U;PH=5[`=YY>)[>QA,!5@\.&'(W_(M[B>A%D8BC+[*T
MM'"^^5\#/\0Y#*$3K#\>[7"D0*]UT>U>M'O];NO U='
MGYU;I?:A:P"_#P\6/(VW<#R^&<5Y`(,@HW&<*4$-25452;?,WF4V"M5!%KL$
M%AN*M@V"J`;#1>@UX>&QAX1IH7=@F/;B\Y@O\-CEH8QNWP89[>[K8?`:69T4
M%[JD4U6R:6?.+:("48'&X6Q@@-GO/6[5KY\5C2;32>7ZQF+1JONB
M%?M,T>K(RXA'R)^("`7O+)SI"P:.';4@)BX8$Y*%4O"0"(*P0%@@+%:P,$*'
M0J.WZ"+H[%'B>]QH]/;6O1NS&`>Q:TE<5H\WL2P?/24*=*/"D_,18R)3!3
M1G0ANKI'%SA^#@#K;C\D`@P!A@#;`)@4$%UCK?>H8??%1M='V'B$1'0`$9WV
M`9-C5(9#H4A(;'(*RQ?G^09B3/26>^8ZP`D
NK>1\-)T$LW+L&XO,
MI\'(M_2`SV/?0:M<-AT9K7?C@5.;(UWSCZ"8^,K:JE?)ZK0'1XXFP1Q&5;A!
M%9-!Z;]WMX(?5556KQ^=TL=TN8?^-_@5FVYBTTWL2=G#\[#IYG-YU5X\<7MA
M&"$'\ZK/R%.P^Z;V\_[\7Y2!ISXSIN=90B(VW/KNH:=
M-['O("(`.V\B`EXN`DZ@KV>S;^R\V9$BL?/FY:3*O:_38W.J]?,H-2%X@Z/K
MI"^S[\[#A6?D&N2:$W!-*(4.C<:'(Y%MD&V0;8[--DI)9)L#V`:7&['K)K92
M.U0=AE'6F5_J"PZ.';@@+BX8%\:8T':W\(N80$P@)BX3$[@J@CTWSY6#+J=K
MV1$"V8M/EA%B"+$#]"3`_TO975<3A!?""^&%\,)2;P?A-7;=Q&3^(+9A/!3X
M`@W$!&)B>9X.I2"AZ*ZU/*("47$!J+"N'[SH;!/"I:`""[_8KO+DO/.XXIZU
M$U)S-]_!H[<]:L^C3=(Q5'F$]_`)VF4.\72-GH7E83D16?)<;!59LL--O)!2
M*AEJHTZOU+,P/B1*),ISL54DR@Z)DH:$Z)#I([V0!HER=P%COW:=:W(]=X_-
M)\GZV'AWW63MG`TZPSZ6V,<2VSSV\#SL8_E<[J87C[!>6,"-?2RQC^4Q09N6
M@_+VNIP%G/I>E@RQVSUVSZ./&?:RQ$Y^B`#L98D(>+D(.(&^GLV^L9=E1XK$
M7I:7DR[W_C$0[/B$C['B>B_R#?+-2=9<0\G@G^QNR;7O\X]L@VR#;(-L^)4^FMY
M\\/5&]>CZ1?^>W.)WYM;%N,WDVH^NW?=.Z*/H^KWZF8X_GWM07VW5E8OE=%_
M^(9/5\&P'(QNBW'E^TJ.AC]E)YS@IJ&`J0#5L`*6`$K8`6LC@`KU#2VO66B=4U#(/Q'
M^-\YV734-,"TWN9I,+3>`]5Z>2N`>1I*D`Y8`2M@!:R`%;`Z`JQ0T]A6T^#G
MQ$)-`^%_'V0S4=,`TWJJ:=`S@\F&YB&IXC=`9WAO_\^NP)G(50^