þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 34-1687530 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o
(Do not check if a smaller reporting company) | Smaller reporting company þ |
Common stock, $6.25 par value
|
Outstanding at May 13, 2011 : | |
2,734,799 common shares |
Page | ||||||||
Part I Financial Information |
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3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
22 | ||||||||
27 | ||||||||
27 | ||||||||
Part II Other Information |
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29 | ||||||||
29 | ||||||||
29 | ||||||||
29 | ||||||||
29 | ||||||||
29 | ||||||||
30 | ||||||||
31 | ||||||||
EX-11 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 |
March 31, | December 31, | |||||||
(Dollars in thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
Cash and cash equivalents |
||||||||
Cash and due from banks |
$ | 9,792 | $ | 9,798 | ||||
Interest-earning deposits in other banks |
11,898 | 38,497 | ||||||
Federal funds sold |
310 | 65 | ||||||
Total cash and cash equivalents |
22,000 | 48,360 | ||||||
Securities |
||||||||
Available-for-sale, at fair value |
83,085 | 75,204 | ||||||
Restricted stock, at cost |
5,463 | 5,463 | ||||||
Total securities |
88,548 | 80,667 | ||||||
Loans held for sale |
20 | | ||||||
Loans |
322,017 | 315,647 | ||||||
Less allowance for loan losses |
4,028 | 4,031 | ||||||
Net loans |
317,989 | 311,616 | ||||||
Premises and equipment, net |
7,754 | 7,878 | ||||||
Core deposit intangible |
391 | 406 | ||||||
Goodwill |
1,725 | 1,725 | ||||||
Bank-owned life insurance |
2,987 | 2,961 | ||||||
Accrued interest receivable and other assets |
3,947 | 3,443 | ||||||
TOTAL ASSETS |
$ | 445,361 | $ | 457,056 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
LIABILITIES |
||||||||
Deposits |
||||||||
Noninterest-bearing |
$ | 60,325 | $ | 69,151 | ||||
Interest-bearing |
287,884 | 284,340 | ||||||
Total deposits |
348,209 | 353,491 | ||||||
Short-term borrowings |
28,382 | 32,018 | ||||||
Other borrowings |
19,707 | 22,909 | ||||||
Accrued interest payable and other liabilities |
1,606 | 1,484 | ||||||
Total liabilities |
397,904 | 409,902 | ||||||
SHAREHOLDERS EQUITY |
||||||||
Common stock, $6.25 par value. Authorized
9,000,000 shares; issued 2,980,602 shares;
outstanding 2,734,799 shares in 2011 and 2010 |
18,629 | 18,629 | ||||||
Additional paid-in capital |
9,994 | 9,994 | ||||||
Retained earnings |
23,077 | 22,673 | ||||||
Treasury
stock at cost 245,803 shares in 2011 and 2010 |
(5,015 | ) | (5,015 | ) | ||||
Accumulated other comprehensive income |
772 | 873 | ||||||
Total shareholders equity |
47,457 | 47,154 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 445,361 | $ | 457,056 | ||||
3.
Three Months Ended | ||||||||
March 31, | ||||||||
(Dollars in thousands, except per share data) | 2011 | 2010 | ||||||
INTEREST AND DIVIDEND INCOME |
||||||||
Loans, including fees |
$ | 4,236 | $ | 4,302 | ||||
Taxable securities |
595 | 751 | ||||||
Nontaxable securities |
98 | 84 | ||||||
Other |
17 | 19 | ||||||
Total interest and dividend income |
4,946 | 5,156 | ||||||
INTEREST EXPENSE |
||||||||
Deposits |
786 | 876 | ||||||
Other borrowings |
226 | 399 | ||||||
Total interest expense |
1,012 | 1,275 | ||||||
NET INTEREST INCOME |
3,934 | 3,881 | ||||||
PROVISION FOR LOAN LOSSES |
280 | 519 | ||||||
Net interest income, after provision for loan losses |
3,654 | 3,362 | ||||||
NONINTEREST INCOME |
||||||||
Service charges on deposit accounts |
245 | 269 | ||||||
Trust services |
160 | 142 | ||||||
Debit card interchange fees |
138 | 108 | ||||||
Gain on sale of loans, net |
70 | 46 | ||||||
Other |
148 | 166 | ||||||
Total noninterest income |
761 | 731 | ||||||
NONINTEREST EXPENSES |
||||||||
Salaries and employee benefits |
1,763 | 1,604 | ||||||
Occupancy expense |
219 | 220 | ||||||
Equipment expense |
120 | 126 | ||||||
Professional fees |
159 | 154 | ||||||
Franchise tax expense |
135 | 135 | ||||||
Software expense |
91 | 95 | ||||||
Marketing and public relations |
59 | 71 | ||||||
Amortization of intangible assets |
15 | 16 | ||||||
Other expenses |
559 | 620 | ||||||
Total noninterest expenses |
3,120 | 3,041 | ||||||
Income before income taxes |
1,295 | 1,052 | ||||||
FEDERAL INCOME TAX PROVISION |
399 | 315 | ||||||
NET INCOME |
$ | 896 | $ | 737 | ||||
Basic and diluted net income per share |
$ | 0.33 | $ | 0.27 | ||||
4.
Three Months Ended | ||||||||
March 31, | ||||||||
(Dollars in thousands, except per share data) | 2011 | 2010 | ||||||
Balance at beginning of period |
$ | 47,154 | $ | 45,822 | ||||
Comprehensive income: |
||||||||
Net income |
896 | 737 | ||||||
Change in net unrealized gain (loss),
net of reclassification adjustments
and related income taxes of ($52) and
$54, respectively |
(101 | ) | 104 | |||||
Total comprehensive income |
795 | 841 | ||||||
Cash dividends declared ($0.18 per share in 2011 and 2010) |
(492 | ) | (492 | ) | ||||
Balance at end of period |
$ | 47,457 | $ | 46,171 | ||||
5.
Three Months Ended | ||||||||
March 31, | ||||||||
(Dollars in thousands, except per share data) | 2011 | 2010 | ||||||
NET CASH FROM OPERATING ACTIVITIES |
$ | 1,041 | $ | (113 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITES |
||||||||
Securities available-for-sale: |
||||||||
Proceeds from maturities and repayments |
4,240 | 13,560 | ||||||
Purchases |
(12,344 | ) | (6,551 | ) | ||||
Loan originations, net of repayments |
(6,679 | ) | 2,044 | |||||
Proceeds from sale of other real estate |
8 | 215 | ||||||
Property, equipment, and software acquisitions |
(517 | ) | (7 | ) | ||||
Net cash provided by (used in) investing activities |
(15,292 | ) | 9,261 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Net change in deposits |
(5,271 | ) | (3,256 | ) | ||||
Net change in short-term borrowings |
(3,636 | ) | 857 | |||||
Repayments of other borrowings |
(3,202 | ) | (12,728 | ) | ||||
Net cash provided by used in financing activities |
(12,109 | ) | (15,127 | ) | ||||
NET DECREASE IN CASH AND CASH
EQUIVALENTS |
(26,360 | ) | (5,979 | ) | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD |
48,360 | 42,661 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 22,000 | $ | 36,682 | ||||
SUPPLEMENTAL DISCLOSURES |
||||||||
Cash paid during the year for: |
||||||||
Interest |
$ | 1,042 | $ | 1,403 | ||||
Income taxes |
50 | 250 | ||||||
Noncash investing activities: |
||||||||
Transfer of loans to other real estate owned |
| 301 |
6.
7.
8.
Gross | Gross | |||||||||||||||
Amortized | unrealized | unrealized | ||||||||||||||
(Dollars in thousands) | cost | gains | losses | Fair value | ||||||||||||
March 31, 2011 |
||||||||||||||||
Available-for-sale: |
||||||||||||||||
U.S. Treasury security |
$ | 100 | $ | | $ | | $ | 100 | ||||||||
Obligations of U.S. Government
corporations and agencies |
25,992 | 15 | 299 | 25,708 | ||||||||||||
Mortgage-backed securites in
government sponsored entities |
42,323 | 1,270 | 120 | 43,473 | ||||||||||||
Obligations of states and political
subdivisions |
12,431 | 352 | 35 | 12,748 | ||||||||||||
Corporate bonds |
1,000 | | 2 | 998 | ||||||||||||
Total debt securities |
81,846 | 1,637 | 456 | 83,027 | ||||||||||||
Equity securities in financial
institutions |
69 | 3 | 14 | 58 | ||||||||||||
Total available-for-sale |
81,915 | 1,640 | 470 | 83,085 | ||||||||||||
Restricted stock |
5,463 | | | 5,463 | ||||||||||||
Total securities |
$ | 87,378 | $ | 1,640 | $ | 470 | $ | 88,548 | ||||||||
December 31, 2010 |
||||||||||||||||
Available-for-sale: |
||||||||||||||||
U.S. Treasury security |
$ | 100 | $ | | $ | | $ | 100 | ||||||||
Obligations of U.S. Government
corporations and agencies |
20,009 | 8 | 306 | 19,711 | ||||||||||||
Mortgage-backed securites in
government sponsored entities |
41,005 | 1,374 | 28 | 42,351 | ||||||||||||
Obligations of states and political
subdivisions |
11,699 | 341 | 46 | 11,994 | ||||||||||||
Corporate bonds |
1,000 | | 8 | 992 | ||||||||||||
Total debt securities |
73,813 | 1,723 | 388 | 75,148 | ||||||||||||
Equity securities in financial
institutions |
69 | 3 | 16 | 56 | ||||||||||||
Total available-for-sale |
73,882 | 1,726 | 404 | 75,204 | ||||||||||||
Restricted stock |
5,463 | | | 5,463 | ||||||||||||
Total securities |
$ | 79,345 | $ | 1,726 | $ | 404 | $ | 80,667 | ||||||||
9.
Due in one year or less |
$ | 1,978 | $ | 1,988 | ||||
Due after one through five years |
7,487 | 7,633 | ||||||
Due after five through ten years |
19,908 | 20,163 | ||||||
Due after ten years |
52,473 | 53,243 | ||||||
Total debt securities available-for-sale |
$ | 81,846 | $ | 83,027 | ||||
10.
Securities in a continuous unrealized loss position | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
unrealized | Fair | unrealized | Fair | unrealized | Fair | |||||||||||||||||||
(Dollars in thousands) | losses | value | losses | value | losses | value | ||||||||||||||||||
March 31, 2011 |
||||||||||||||||||||||||
Obligations of U.S. Corporations
and agencies |
$ | 299 | $ | 13,692 | $ | | $ | | $ | 299 | $ | 13,692 | ||||||||||||
Mortgage-backed securities in
government sponsored entities |
111 | 7,945 | 9 | 394 | 120 | 8,339 | ||||||||||||||||||
Obligations of state & political
subdivisions |
35 | 2,569 | | | 35 | 2,569 | ||||||||||||||||||
Corporate bonds |
2 | 498 | | | 2 | 498 | ||||||||||||||||||
Total debt securities |
447 | 24,704 | 9 | 394 | 456 | 25,098 | ||||||||||||||||||
Equity securities in financial
institutions |
| | 14 | 40 | 14 | 40 | ||||||||||||||||||
Total temporarily impaired
securities |
$ | 447 | $ | 24,704 | $ | 23 | $ | 434 | $ | 470 | $ | 25,138 | ||||||||||||
December 31, 2010 |
||||||||||||||||||||||||
Obligations of U.S. Corporations
and agencies |
$ | 306 | $ | 12,686 | $ | | $ | | $ | 306 | $ | 12,686 | ||||||||||||
Mortgage-backed securities in
government sponsored entities |
14 | 4,032 | 14 | 493 | 28 | 4,525 | ||||||||||||||||||
Obligations of state & political
subdivisions |
46 | 2,561 | | | 46 | 2,561 | ||||||||||||||||||
Corporate bonds |
8 | 492 | | | 8 | 492 | ||||||||||||||||||
Total debt securities |
374 | 19,771 | 14 | 493 | 388 | 20,264 | ||||||||||||||||||
Equity securities in financial
institutions |
| | 16 | 38 | 16 | 38 | ||||||||||||||||||
Total temporarily impaired
securities |
$ | 374 | $ | 19,771 | $ | 30 | $ | 531 | $ | 404 | $ | 20,302 | ||||||||||||
11.
(Dollars in thousands) | March 31, 2011 | December 31, 2010 | ||||||
Commercial |
$ | 85,778 | $ | 78,540 | ||||
Commercial real estate |
105,839 | 104,829 | ||||||
Residential real estate |
107,053 | 108,832 | ||||||
Consumer |
6,850 | 6,715 | ||||||
Construction & Land Development |
16,297 | 16,515 | ||||||
Total loans before deferred costs |
321,817 | 315,431 | ||||||
Deferred loan costs |
200 | 216 | ||||||
Total Loans |
$ | 322,017 | $ | 315,647 | ||||
12.
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2011 | 2010 | ||||||
Beginning balance |
$ | 4,031 | $ | 4,060 | ||||
Provision for loan losses |
280 | 519 | ||||||
Loans charged-off |
(316 | ) | (289 | ) | ||||
Recoveries |
33 | 66 | ||||||
Ending balance |
$ | 4,028 | $ | 4,356 | ||||
13.
Construction | ||||||||||||||||||||||||||||
Commercial | Residential | & Land | ||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Real Estate | Real Estate | Consumer | Development | Unallocated | Total | |||||||||||||||||||||
March 31, 2011 |
||||||||||||||||||||||||||||
Beginning balance |
$ | 1,179 | $ | 1,183 | $ | 1,057 | $ | 80 | $ | 213 | $ | 319 | $ | 4,031 | ||||||||||||||
Provision for possible loan losses |
11 | 330 | 69 | 33 | (55 | ) | (108 | ) | 280 | |||||||||||||||||||
Charge-offs |
(204 | ) | | (68 | ) | (44 | ) | | | (316 | ) | |||||||||||||||||
Recoveries |
10 | | 9 | 14 | | | 33 | |||||||||||||||||||||
Net charge-offs |
(194 | ) | | (59 | ) | (30 | ) | | | (283 | ) | |||||||||||||||||
Ending balance |
$ | 996 | $ | 1,513 | $ | 1,067 | $ | 83 | $ | 158 | $ | 211 | $ | 4,028 | ||||||||||||||
14.
Construction | ||||||||||||||||||||||||||||
Commercial | Residential | & Land | ||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Real Estate | Real Estate | Consumer | Development | Unallocated | Total | |||||||||||||||||||||
March 31, 2011 |
||||||||||||||||||||||||||||
Allowance for loan losses: |
||||||||||||||||||||||||||||
Ending allowance balances
attributable to loans: |
||||||||||||||||||||||||||||
Individually evaluated
for impairment |
$ | 102 | $ | 462 | $ | | $ | | $ | | $ | | $ | 564 | ||||||||||||||
Collectively evaluated
for impairment |
894 | 1,051 | 1,067 | 83 | 158 | 211 | 3,464 | |||||||||||||||||||||
Acquired with deteriorated
credit quality |
| | | | | | | |||||||||||||||||||||
Total ending allowance balance |
$ | 996 | $ | 1,513 | $ | 1,067 | $ | 83 | $ | 158 | $ | 211 | $ | 4,028 | ||||||||||||||
Loans: |
||||||||||||||||||||||||||||
Loans indvidually evaluated
for impairment |
$ | 450 | $ | 3,187 | $ | 48 | $ | | $ | | $ | | $ | 3,685 | ||||||||||||||
Loans collectively evaluated
for impairment |
85,328 | 102,652 | 107,005 | 6,850 | 15,907 | | 317,742 | |||||||||||||||||||||
Loans acquired with deteriorated
credit quality |
| | | | 390 | | 390 | |||||||||||||||||||||
Total ending loans balance |
$ | 85,778 | $ | 105,839 | $ | 107,053 | $ | 6,850 | $ | 16,297 | $ | | $ | 321,817 | ||||||||||||||
December 31, 2010 |
||||||||||||||||||||||||||||
Allowance for loan losses: |
||||||||||||||||||||||||||||
Ending allowance balances
attributable to loans: |
||||||||||||||||||||||||||||
Individually evaluated
for impairment |
$ | 106 | $ | 132 | $ | | $ | | $ | | $ | | $ | 238 | ||||||||||||||
Collectively evaluated
for impairment |
1,073 | 1,051 | 1,057 | 80 | 121 | 319 | 3,701 | |||||||||||||||||||||
Acquired with deteriorated
credit quality |
| | | | 92 | | 92 | |||||||||||||||||||||
Total ending allowance balance |
$ | 1,179 | $ | 1,183 | $ | 1,057 | $ | 80 | $ | 213 | $ | 319 | $ | 4,031 | ||||||||||||||
Loans: |
||||||||||||||||||||||||||||
Loans indvidually evaluated
for impairment |
$ | 621 | $ | 886 | $ | 299 | $ | | $ | | $ | | $ | 1,806 | ||||||||||||||
Loans collectively evaluated
for impairment |
77,919 | 103,943 | 108,533 | 6,715 | 16,075 | | 313,185 | |||||||||||||||||||||
Loans acquired with deteriorated
credit quality |
| | | | 440 | | 440 | |||||||||||||||||||||
Total ending loans balance |
$ | 78,540 | $ | 104,829 | $ | 108,832 | $ | 6,715 | $ | 16,515 | $ | | $ | 315,431 | ||||||||||||||
15.
Recorded | Recorded | |||||||||||||||||||||||
Unpaid | Investment | Investment | Total | Average | ||||||||||||||||||||
Principal | with no | with | Recorded | Related | Recorded | |||||||||||||||||||
(Dollars in thousands) | Balance | Allowance | Allowance | Investment | Allowance | Investment | ||||||||||||||||||
March 31, 2011 |
||||||||||||||||||||||||
Commercial |
$ | 553 | $ | 186 | $ | 264 | $ | 450 | $ | 101 | $ | 502 | ||||||||||||
Commercial real estate |
3,759 | 602 | 2,585 | 3,187 | 463 | 3,262 | ||||||||||||||||||
Residential real estate |
65 | 48 | | 48 | | 48 | ||||||||||||||||||
Construction & land development |
638 | 390 | | 390 | | 415 | ||||||||||||||||||
Total impaired loans |
$ | 5,015 | $ | 1,226 | $ | 2,849 | $ | 4,075 | $ | 564 | $ | 4,227 | ||||||||||||
December 31, 2010 |
||||||||||||||||||||||||
Commercial |
$ | 644 | $ | 51 | $ | 571 | $ | 622 | $ | 106 | $ | 571 | ||||||||||||
Commercial real estate |
1,047 | 109 | 777 | 886 | 132 | 1,631 | ||||||||||||||||||
Residential real estate |
590 | 298 | | 298 | | 97 | ||||||||||||||||||
Construction & land development |
683 | | 440 | 440 | 92 | 483 | ||||||||||||||||||
Total impaired loans |
$ | 2,964 | $ | 458 | $ | 1,788 | $ | 2,246 | $ | 330 | $ | 2,782 | ||||||||||||
Total | ||||||||||||||||||||||||||||
30 - 59 | 60 - 89 | Past Due | ||||||||||||||||||||||||||
Days | Days | 90 Days + | and | Non- | Total | |||||||||||||||||||||||
(Dollars in thousands) | Current | Past Due | Past Due | Past Due | Accruing | Accrual | Loans | |||||||||||||||||||||
March 31, 2011 |
||||||||||||||||||||||||||||
Commercial |
$ | 85,521 | $ | 118 | $ | 19 | $ | 100 | $ | 237 | $ | 20 | $ | 85,778 | ||||||||||||||
Commercial real estate |
103,658 | 136 | 401 | 27 | 564 | 1,617 | 105,839 | |||||||||||||||||||||
Residential real estate |
103,943 | 779 | 582 | 242 | 1,603 | 1,507 | 107,053 | |||||||||||||||||||||
Consumer |
6,788 | 39 | 23 | | 62 | | 6,850 | |||||||||||||||||||||
Construction & land development |
15,894 | 3 | | | 3 | 400 | 16,297 | |||||||||||||||||||||
Total Loans |
$ | 315,804 | $ | 1,075 | $ | 1,025 | $ | 369 | $ | 2,469 | $ | 3,544 | $ | 321,817 | ||||||||||||||
December 31, 2010 |
||||||||||||||||||||||||||||
Commercial |
$ | 78,235 | $ | 63 | $ | 160 | $ | 58 | $ | 281 | $ | 24 | $ | 78,540 | ||||||||||||||
Commercial real estate |
100,914 | 2,156 | 114 | 26 | 2,296 | 1,619 | 104,829 | |||||||||||||||||||||
Residential real estate |
105,593 | 574 | 253 | 601 | 1,428 | 1,811 | 108,832 | |||||||||||||||||||||
Consumer |
6,580 | 69 | 66 | | 135 | | 6,715 | |||||||||||||||||||||
Construction & land development |
16,061 | 3 | | | 3 | 451 | 16,515 | |||||||||||||||||||||
Total Loans |
$ | 307,383 | $ | 2,865 | $ | 593 | $ | 685 | $ | 4,143 | $ | 3,905 | $ | 315,431 | ||||||||||||||
16.
17.
Special | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Mention | Substandard | Doubtful | Not Rated | Total | ||||||||||||||||||
March 31, 2011 |
||||||||||||||||||||||||
Commercial |
$ | 73,887 | $ | 1,787 | $ | 9,403 | $ | | $ | 701 | $ | 85,778 | ||||||||||||
Commercial real estate |
87,313 | 7,834 | 8,253 | | 2,439 | 105,839 | ||||||||||||||||||
Residential real estate |
1,377 | | 358 | | 105,318 | 107,053 | ||||||||||||||||||
Consumer |
| | 1 | | 6,849 | 6,850 | ||||||||||||||||||
Construction & land development |
10,921 | 3,052 | 954 | | 1,370 | 16,297 | ||||||||||||||||||
Total |
$ | 173,498 | $ | 12,673 | $ | 18,969 | $ | | $ | 116,677 | $ | 321,817 | ||||||||||||
December 31, 2010 |
||||||||||||||||||||||||
Commercial |
$ | 65,371 | $ | 3,843 | $ | 9,252 | $ | | $ | 74 | $ | 78,540 | ||||||||||||
Commercial real estate |
78,191 | 9,982 | 8,188 | | 8,468 | 104,829 | ||||||||||||||||||
Residential real estate |
1,153 | | 365 | | 107,314 | 108,832 | ||||||||||||||||||
Consumer |
| | 2 | | 6,713 | 6,715 | ||||||||||||||||||
Construction & land development |
11,626 | 2,905 | 591 | | 1,393 | 16,515 | ||||||||||||||||||
Total |
$ | 156,341 | $ | 16,730 | $ | 18,398 | $ | | $ | 123,962 | $ | 315,431 | ||||||||||||
(Dollars in thousands) | Performing | Non-Performing | Total | |||||||||
March 31, 2011 |
||||||||||||
Commercial |
$ | 701 | $ | | $ | 701 | ||||||
Commercial real estate |
2,439 | | 2,439 | |||||||||
Residential real estate |
103,568 | 1,750 | 105,318 | |||||||||
Consumer |
6,849 | | 6,849 | |||||||||
Construction & land development |
1,360 | 10 | 1,370 | |||||||||
Total |
$ | 114,917 | $ | 1,760 | $ | 116,677 | ||||||
December 31, 2010 |
||||||||||||
Commercial |
$ | 74 | $ | | $ | 74 | ||||||
Commercial real estate |
8,468 | | 8,468 | |||||||||
Residential real estate |
105,201 | 2,133 | 107,334 | |||||||||
Consumer |
6,713 | | 6,713 | |||||||||
Construction & land development |
1,383 | 10 | 1,393 | |||||||||
Total |
$ | 121,839 | $ | 2,143 | $ | 123,982 | ||||||
18.
Level I: | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. | |
Level II: | Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by corroborated or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability. | |
Level III: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
(Dollars in thousands) | Level I | Level II | Level III | Total | ||||||||||||
March 31, 2011 |
||||||||||||||||
Assets: |
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||
U.S. Treasury security |
$ | 100 | $ | | $ | | $ | 100 | ||||||||
Obligations of U.S. government corporations
and agencies |
| 25,708 | | 25,708 | ||||||||||||
Mortgage-backed securities in government
sponsored entities |
| 43,473 | | 43,473 | ||||||||||||
Obligations of states and political subdivisions |
| 12,748 | | 12,748 | ||||||||||||
Corporate bonds |
| 998 | | 998 | ||||||||||||
Total debt securities |
100 | 82,927 | | 83,027 | ||||||||||||
Equity securities in financial institutions |
58 | | | 58 | ||||||||||||
Total available-for-sale securities |
$ | 158 | $ | 82,927 | $ | | $ | 83,085 | ||||||||
December 31, 2010 |
||||||||||||||||
Assets: |
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||
U.S. Treasury security |
$ | 100 | $ | | $ | | $ | 100 | ||||||||
Obligations of U.S. government corporations
and agencies |
| 19,711 | | 19,711 | ||||||||||||
Mortgage-backed securities in government
sponsored entities |
| 42,351 | | 42,351 | ||||||||||||
Obligations of states and political subdivisions |
| 11,994 | | 11,994 | ||||||||||||
Corporate bonds |
| 992 | | 992 | ||||||||||||
Total debt securities |
100 | 75,048 | | 75,148 | ||||||||||||
Equity securities in financial institutions |
56 | | | 56 | ||||||||||||
Total available-for-sale securities |
$ | 156 | $ | 75,048 | $ | | $ | 75,204 | ||||||||
19.
(Dollars in thousands) | Level I | Level II | Level III | Total | ||||||||||||
March 31, 2011 |
||||||||||||||||
Assets measured on a nonrecurring basis: |
||||||||||||||||
Impaired loans |
$ | | $ | | $ | 3,511 | $ | 3,511 | ||||||||
Other real estate owned |
| | 30 | 30 | ||||||||||||
Premises |
| | 193 | 193 | ||||||||||||
Mortgage servicing rights |
| | 164 | 164 | ||||||||||||
December 31, 2010 |
||||||||||||||||
Impaired loans |
$ | | $ | | $ | 1,916 | $ | 1,916 | ||||||||
Other real estate owned |
| | 36 | 36 | ||||||||||||
Premises |
| | 200 | 200 | ||||||||||||
Mortgage servicing rights |
| | 155 | 155 |
2011 | 2010 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
(Dollars in thousands) | value | value | value | value | ||||||||||||
Financial assets: |
||||||||||||||||
Cash and cash equivalents |
$ | 22,000 | $ | 22,000 | $ | 48,360 | $ | 48,360 | ||||||||
Securities |
88,548 | 88,548 | 80,667 | 80,667 | ||||||||||||
Loans, net |
317,989 | 322,450 | 311,616 | 316,474 | ||||||||||||
Accrued interest receivable |
1,443 | 1,443 | 1,215 | 1,215 | ||||||||||||
Financial liabilities: |
||||||||||||||||
Deposits |
$ | 348,209 | $ | 350,083 | $ | 353,491 | $ | 355,589 | ||||||||
Short-term borrowings |
28,382 | 28,382 | 32,018 | 32,018 | ||||||||||||
Other borrowings |
19,707 | 19,497 | 22,909 | 23,042 | ||||||||||||
Accrued interest payable |
195 | 195 | 213 | 213 |
20.
21.
22.
March 31, | December 31, | March 31, | ||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | |||||||||
Non-performing loans |
$ | 3,913 | $ | 4,589 | $ | 6,221 | ||||||
Other real estate |
30 | 36 | 271 | |||||||||
Allowance for loan losses |
4,028 | 4,031 | 4,356 | |||||||||
Total loans |
322,017 | 315,647 | 310,899 | |||||||||
Allowance: loans |
1.25 | % | 1.28 | % | 1.40 | % | ||||||
Allowance: non-performing loans |
1.0 | x | 0.9 | x | 0.7 | x |
23.
For the three months ended March 31, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Average | Average | Average | Average | |||||||||||||
(Dollars in thousands) | balance | rate | balance | rate | ||||||||||||
ASSETS |
||||||||||||||||
Due from banks-interest bearing |
$ | 23,321 | 0.30 | % | $ | 31,185 | 0.25 | % | ||||||||
Federal funds sold |
90 | 0.11 | 186 | 0.11 | ||||||||||||
Taxable securities |
73,941 | 3.26 | 69,650 | 4.37 | ||||||||||||
Tax-exempt securities |
11,688 | 5.12 | 9,677 | 5.31 | ||||||||||||
Loans |
319,646 | 5.39 | 311,789 | 5.61 | ||||||||||||
Total earning assets |
428,686 | 4.74 | % | 422,487 | 5.00 | % | ||||||||||
Other assets |
22,980 | 22,429 | ||||||||||||||
TOTAL ASSETS |
$ | 451,666 | $ | 444,916 | ||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||
Interest bearing demand deposits |
$ | 52,341 | 0.08 | % | $ | 53,946 | 0.08 | % | ||||||||
Savings deposits |
82,242 | 0.27 | 71,994 | 0.39 | ||||||||||||
Time deposits |
149,844 | 1.95 | 148,665 | 2.17 | ||||||||||||
Other borrowed funds |
53,092 | 1.73 | 69,901 | 2.31 | ||||||||||||
Total interest bearing liabilities |
337,519 | 1.22 | % | 344,506 | 1.50 | % | ||||||||||
Non-interest bearing demand deposits |
65,147 | 52,381 | ||||||||||||||
Other liabilities |
1,613 | 1,589 | ||||||||||||||
Shareholders Equity |
47,387 | 46,440 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 451,666 | $ | 444,916 | ||||||||||||
Taxable equivalent net interest spread |
3.52 | % | 3.50 | % | ||||||||||||
Taxable equivalent net interest margin |
3.78 | % | 3.78 | % |
24.
25.
26.
March 31, 2011 | ||||||||||||
(Dollars in thousands) | ||||||||||||
Change in | Net | |||||||||||
interest rates | interest | Dollar | Percentage | |||||||||
(basis points) | income | change | change | |||||||||
+ 300 |
$ | 16,784 | $ | 205 | 1.2 | % | ||||||
+ 200 |
16,612 | 33 | 0.2 | |||||||||
+ 100 |
16,583 | 4 | 0.0 | |||||||||
0 |
16,579 | | | |||||||||
- 100 |
N/A | N/A | N/A |
December 31, 2010 | ||||||||||||
Change in | Net | |||||||||||
interest rates | interest | Dollar | Percentage | |||||||||
(basis points) | income | change | change | |||||||||
+ 300 |
$ | 16,275 | $ | 443 | 2.8 | % | ||||||
+ 200 |
16,073 | 241 | 1.5 | |||||||||
+ 100 |
15,906 | 74 | 0.5 | |||||||||
0 |
15,832 | | | |||||||||
- 100 |
N/A | N/A | N/A |
(a) | information required to be disclosed by the Company in this Quarterly Report on Form 10-Q would be accumulated and communicated to the Companys management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure; | ||
(b) | information required to be disclosed by the Company in this Quarterly Report on Form 10-Q would be recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms; and |
27.
(c) | the Companys disclosure controls and procedures are effective as of the end of the period covered by this Quarterly Report on Form 10- Q to ensure that material information relating to the Company and its consolidated subsidiary is made known to them, particularly during the period for which our periodic reports, including this Quarterly Report on Form 10-Q, are being prepared. |
28.
ITEM 1- | LEGAL PROCEEDINGS There are no matters required to be reported under this item. |
ITEM 1A- | RISK FACTORS There are no matters required to be reported under this item. |
ITEM 2- | On July 7, 2005 CSB Bancorp, Inc. filed Form 8-k with the Securities and Exchange Commission announcing that its Board of Directors approved a Stock Repurchase Program authorizing the repurchase of up to 10% of the Companys common shares then outstanding. Repurchases will be made from time to time as market and business conditions warrant, in the open market, through block purchases and in negotiated private transactions. |
ITEM 3- | DEFAULTS UPON SENIOR SECURITIES: There are no matters required to be reported under this item. |
ITEM 4- | REMOVED AND RESERVED: |
ITEM 5- | OTHER INFORMATION: There are no matters required to be reported under this item. |
29.
Item 6 | -Exhibits: |
Exhibit | ||
Number | Description of Document | |
3.1
|
Amended Articles of Incorporation of CSB Bancorp, Inc. (incorporated by reference to Registrants Form 10-KSB for the Fiscal Year ended December 31, 1994). | |
3.1.1
|
Amended form of Article Fourth of Amended Articles of Incorporation, as effective April 9, 1998 (incorporated by reference to Registrants Form 10-K for the Fiscal Year ended December 31, 1998). | |
3.2
|
Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrants Form 10-SB). | |
3.2.1
|
Amended Article VIII Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrants Form DEF 14a for the Fiscal Year ended December 31, 2008). | |
4.0
|
Specimen stock certificate (incorporated by reference to Registrants Form 10-SB). | |
11
|
Statement Regarding Computation of Per Share Earnings (reference is hereby made to Consolidated Statements of Income on page 4 hereof). | |
31.1
|
Rule 13a-14(a)/15d-14(a) CEOs Certification | |
31.2
|
Rule 13a-14(a)/15d-14(a) CFOs Certification | |
32.1
|
Section 1350 CEOs Certification | |
32.2
|
Section 1350 CFOs Certification |
30.
CSB BANCORP, INC. (Registrant) |
||||
Date: May 13, 2011 | /s/ Eddie L. Steiner | |||
Eddie L. Steiner | ||||
President Chief Executive Officer |
||||
Date: May 13, 2011 | /s/ Paula J. Meiler | |||
Paula J. Meiler | ||||
Senior Vice President Chief Financial Officer |
31.
Exhibit | ||
Number | Description of Document | |
3.1
|
Amended Articles of Incorporation of CSB Bancorp, Inc. (incorporated by reference to Registrants Form 10-KSB for the Fiscal Year ended December 31, 1994). | |
3.1.1
|
Amended form of Article Fourth of Amended Articles of Incorporation, as effective April 9, 1998 (incorporated by reference to Registrants Form 10-K for the Fiscal Year ended December 31, 1998). | |
3.2
|
Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrants Form 10-SB). | |
3.2.1
|
Amended Article VIII Code of Regulations of CSB Bancorp, Inc. (incorporated by reference to Registrants Form DEF 14a for the Fiscal Year ended December 31, 2008). | |
4.0
|
Specimen stock certificate (incorporated by reference to Registrants Form 10-SB). | |
11
|
Statement Regarding Computation of Per Share Earnings (reference is hereby made to Consolidated Statements of Income on page 4 hereof). | |
31.1
|
Rule 13a-14(a)/15d-14(a) CEOs Certification | |
31.2
|
Rule 13a-14(a)/15d-14(a) CFOs Certification | |
32.1
|
Section 1350 CEOs Certification | |
32.2
|
Section 1350 CFOs Certification |
32.
Three months ended | ||||||||
March 31, | ||||||||
(Dollars in thousands, except per share amounts) | 2011 | 2010 | ||||||
Basic Earnings Per Share |
||||||||
Net income |
$ | 896 | $ | 737 | ||||
Weighted average common shares |
2,734,799 | 2,734,799 | ||||||
Basice Earnings Per Share |
$ | 0.33 | $ | 0.27 | ||||
Diluted Earnings Per Share |
||||||||
Net income |
$ | 896 | $ | 737 | ||||
Weighted average common shares |
2,734,799 | 2,734,799 | ||||||
Weighted average effect of assumed
stock options |
13 | | ||||||
Total |
2,734,812 | 2,734,799 | ||||||
Diluted Earnings Per Share |
$ | 0.33 | $ | 0.27 | ||||
33.
1. | I have reviewed this quarterly report on Form 10-Q of CSB Bancorp, Inc.; | ||
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 registrants other certifying officer 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
/s/ Eddie L. Steiner | ||||
Eddie L. Steiner | ||||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of CSB Bancorp, Inc.; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material factor 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 registrants other certifying officer 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants ability to record, process, summarize and report financial data; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Paula J. Meiler | ||||
Paula J. Meiler | ||||
Senior Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Eddie L. Steiner | ||||
Eddie L. Steiner | ||||
President and Chief Executive Officer | ||||
* | This certification is being furnished as required by Rule 13a -14(b) under the Securities Exchange Act of 1934 (the Exchange Act) and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing. |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Paula J. Meiler | ||||
Paula J. Meiler | ||||
Senior Vice President and Chief Financial Officer | ||||
* | This certification is being furnished as required by Rule 13a -14(b) under the Securities Exchange Act of 1934 (the Exchange Act) and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing. |