þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
For the quarterly period ended September 30, 2011
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or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ___________ to ___________
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Commission file number 0-20908
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PREMIER FINANCIAL BANCORP, INC.
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(Exact name of registrant as specified in its charter)
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Kentucky
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61-1206757
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(State or other jurisdiction of incorporation organization)
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(I.R.S. Employer Identification No.)
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2883 Fifth Avenue
Huntington, West Virginia
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25702
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number (304) 525-1600
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Large accelerated filer o.
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Accelerated filer o.
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Non-accelerated filer o
(Do not check if smaller reporting company)
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Smaller reporting company þ
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3
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40
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53
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53
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54
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54
|
|
54
|
|
54
|
|
54
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54
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54
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54
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55
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4
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5
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6
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7
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9
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(UNAUDITED)
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||||||||
2011
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2010
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
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$ | 27,828 | $ | 20,001 | ||||
Interest bearing bank balances
|
64,349 | 78,649 | ||||||
Federal funds sold
|
4,833 | 23,598 | ||||||
Cash and cash equivalents
|
97,010 | 122,248 | ||||||
Securities available for sale
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281,600 | 256,520 | ||||||
Loans held for sale
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499 | 1,477 | ||||||
Loans
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688,012 | 725,964 | ||||||
Allowance for loan losses
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(12,398 | ) | (9,865 | ) | ||||
Net loans
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675,614 | 716,099 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock
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5,538 | 7,096 | ||||||
Premises and equipment, net
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16,248 | 16,566 | ||||||
Real estate and other property acquired through foreclosure
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17,651 | 11,249 | ||||||
Interest receivable
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3,497 | 3,742 | ||||||
Goodwill
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29,875 | 29,875 | ||||||
Other intangible assets
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3,566 | 4,185 | ||||||
Prepaid FDIC insurance premiums
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1,376 | 2,068 | ||||||
Deferred taxes
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6,335 | 10,743 | ||||||
Other assets
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1,264 | 1,383 | ||||||
Total assets
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$ | 1,140,073 | $ | 1,183,251 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Deposits
|
||||||||
Non-interest bearing
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$ | 195,085 | $ | 214,665 | ||||
Time deposits, $100,000 and over
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156,287 | 158,962 | ||||||
Other interest bearing
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586,177 | 611,664 | ||||||
Total deposits
|
937,549 | 985,291 | ||||||
Federal fund purchased
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145 | - | ||||||
Securities sold under agreements to repurchase
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27,145 | 29,637 | ||||||
Federal Home Loan Bank advances
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10,178 | 12,896 | ||||||
Other borrowed funds
|
18,646 | 20,178 | ||||||
Interest payable
|
782 | 899 | ||||||
Other liabilities
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2,619 | 2,953 | ||||||
Total liabilities
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997,064 | 1,051,854 | ||||||
Stockholders' equity
|
||||||||
Preferred stock, no par value; $22,252 liquidation preference,
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||||||||
5% cumulative, 1,000,000 shares authorized; 22,252 shares issued and outstanding
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21,922 | 21,841 | ||||||
Common stock, no par value; 20,000,000 shares authorized;
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||||||||
7,937,143 shares issued and outstanding
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71,542 | 71,465 | ||||||
Retained earnings
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43,124 | 39,526 | ||||||
Accumulated other comprehensive income (loss)
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6,421 | (1,435 | ) | |||||
Total stockholders' equity
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143,009 | 131,397 | ||||||
Total liabilities and stockholders' equity
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$ | 1,140,073 | $ | 1,183,251 | ||||
Three Months Ended September 30
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Nine Months Ended September 30
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|||||||||||||||
2011
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2010
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2011
|
2010
|
|||||||||||||
Interest income
|
||||||||||||||||
Loans, including fees
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$ | 11,252 | $ | 10,964 | $ | 33,479 | $ | 33,534 | ||||||||
Securities available for sale
|
||||||||||||||||
Taxable
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1,916 | 1,976 | 5,973 | 5,997 | ||||||||||||
Tax-exempt
|
58 | 63 | 180 | 193 | ||||||||||||
Federal funds sold and other
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28 | 49 | 121 | 110 | ||||||||||||
Total interest income
|
13,254 | 13,052 | 39,753 | 39,834 | ||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
1,746 | 2,125 | 5,504 | 6,538 | ||||||||||||
Repurchase agreements and other
|
37 | 42 | 124 | 124 | ||||||||||||
FHLB advances and other borrowings
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257 | 215 | 790 | 726 | ||||||||||||
Total interest expense
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2,040 | 2,382 | 6,418 | 7,388 | ||||||||||||
Net interest income
|
11,214 | 10,670 | 33,335 | 32,446 | ||||||||||||
Provision for loan losses
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810 | 761 | 3,150 | 2,741 | ||||||||||||
Net interest income after provision for loan losses
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10,404 | 9,909 | 30,185 | 29,705 | ||||||||||||
Non-interest income
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||||||||||||||||
Service charges on deposit accounts
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1,021 | 1,025 | 2,890 | 3,016 | ||||||||||||
Electronic banking income
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442 | 383 | 1,370 | 1,095 | ||||||||||||
Secondary market mortgage income
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108 | 128 | 248 | 312 | ||||||||||||
Other
|
295 | 199 | 703 | 523 | ||||||||||||
1,866 | 1,735 | 5,211 | 4,946 | |||||||||||||
Non-interest expenses
|
||||||||||||||||
Salaries and employee benefits
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4,174 | 3,978 | 12,217 | 11,965 | ||||||||||||
Occupancy and equipment expenses
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1,188 | 1,166 | 3,706 | 3,498 | ||||||||||||
Outside data processing
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954 | 1,029 | 3,341 | 3,059 | ||||||||||||
Professional fees
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248 | 249 | 730 | 740 | ||||||||||||
Taxes, other than payroll, property and income
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158 | 254 | 573 | 767 | ||||||||||||
Write-downs, expenses, sales of other real estate owned, net
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316 | (48 | ) | 723 | 419 | |||||||||||
Amortization of intangibles
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203 | 131 | 618 | 409 | ||||||||||||
Conversion expenses
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909 | 61 | 1,751 | 61 | ||||||||||||
FDIC insurance
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21 | 473 | 998 | 1,345 | ||||||||||||
Other expenses
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1,366 | 1,177 | 3,903 | 3,272 | ||||||||||||
9,537 | 8,470 | 28,560 | 25,535 | |||||||||||||
Income before income taxes
|
2,733 | 3,174 | 6,836 | 9,116 | ||||||||||||
Provision for income taxes
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920 | 1,069 | 2,323 | 2,479 | ||||||||||||
Net income
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$ | 1,813 | $ | 2,105 | $ | 4,513 | $ | 6,637 | ||||||||
Preferred stock dividends and accretion
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305 | 305 | 916 | 943 | ||||||||||||
Net income available to common stockholders
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$ | 1,508 | $ | 1,800 | $ | 3,597 | $ | 5,694 | ||||||||
Net income per share:
|
||||||||||||||||
Basic
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$ | 0.19 | $ | 0.23 | $ | 0.45 | $ | 0.72 | ||||||||
Diluted
|
0.19 | 0.22 | 0.45 | 0.70 |
Three Months Ended September 30
|
Nine Months Ended September 30
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|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net income
|
$ | 1,813 | $ | 2,105 | $ | 4,513 | $ | 6,637 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Unrealized gains arising during the period
|
3,279 | 719 | 11,921 | 2,598 | ||||||||||||
Reclassification of realized amount
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- | - | (18 | ) | - | |||||||||||
Net change in unrealized gain (loss) on securities
|
3,279 | 719 | 11,903 | 2,598 | ||||||||||||
Less tax impact
|
1,115 | 247 | 4,047 | 886 | ||||||||||||
Other comprehensive income:
|
2,164 | 472 | 7,856 | 1,712 | ||||||||||||
Comprehensive income
|
$ | 3,977 | $ | 2,577 | $ | 12,369 | $ | 8,349 | ||||||||
2011
|
2010
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$ | 4,513 | $ | 6,637 | ||||
Adjustments to reconcile net income to net cash from operating activities
|
||||||||
Depreciation
|
1,113 | 1,093 | ||||||
Provision for loan losses
|
3,150 | 2,741 | ||||||
Amortization (accretion), net
|
(1,063 | ) | (2,310 | ) | ||||
OREO writedowns (gains on sales), net
|
292 | (264 | ) | |||||
Stock compensation expense
|
77 | 38 | ||||||
Loans originated for sale
|
(12,595 | ) | (15,265 | ) | ||||
Secondary market loans sold
|
13,832 | 15,167 | ||||||
Secondary market income
|
(248 | ) | (312 | ) | ||||
Gain on sale of buildings
|
(171 | ) | (81 | ) | ||||
Gain on sale of securities
|
(18 | ) | - | |||||
Changes in :
|
||||||||
Interest receivable
|
245 | 170 | ||||||
Other assets
|
1,161 | 2,022 | ||||||
Interest payable
|
(117 | ) | (107 | ) | ||||
Other liabilities
|
(56 | ) | 238 | |||||
Net cash from operating activities
|
10,115 | 9,767 | ||||||
Cash flows from investing activities
|
||||||||
Purchases of securities available for sale
|
(110,447 | ) | (228,715 | ) | ||||
Proceeds from the sale of securities available for sale
|
2,017 | - | ||||||
Proceeds from maturities and calls of securities available for sale
|
94,293 | 231,033 | ||||||
Redemption of FRB and FHLB stock, (net of purchases)
|
1,558 | (242 | ) | |||||
Purchase of branches, net of cash received
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- | 8,936 | ||||||
Net change in loans
|
30,839 | 14,048 | ||||||
Purchases of premises and equipment, net
|
(624 | ) | (934 | ) | ||||
Proceeds from sales of other real estate acquired through foreclosure
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1,907 | 2,597 | ||||||
Net cash from investing activities
|
19,543 | 26,723 | ||||||
Cash flows from financing activities
|
||||||||
Net change in deposits
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(47,374 | ) | (11,111 | ) | ||||
Common Stock dividends paid
|
- | (1,746 | ) | |||||
Preferred Stock dividends paid
|
(1,112 | ) | (835 | ) | ||||
Net change in short-term Federal Home Loan Bank advances
|
(2,400 | ) | - | |||||
Repayment of Federal Home Loan Bank advances
|
(131 | ) | (4,144 | ) | ||||
Repayment of other borrowed funds
|
(1,532 | ) | (6,643 | ) | ||||
Proceeds from other borrowings
|
- | 11,300 | ||||||
Net change in federal funds purchased
|
145 | - | ||||||
Net change in agreements to repurchase securities
|
(2,492 | ) | 2,115 | |||||
Net cash from financing activities
|
(54,896 | ) | (11,064 | ) | ||||
Net change in cash and cash equivalents
|
(25,238 | ) | 25,426 | |||||
Cash and cash equivalents at beginning of period
|
122,248 | 84,596 | ||||||
Cash and cash equivalents at end of period
|
$ | 97,010 | $ | 110,022 |
2011
|
2010
|
|||||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during period for interest
|
$ | 6,535 | $ | 7,396 | ||||
Cash paid during period for income taxes
|
2,805 | 930 | ||||||
Non-cash transactions
|
||||||||
Loans transferred to real estate acquired through foreclosure
|
$ | 8,601 | $ | 7,396 | ||||
Branches acquired:
|
||||||||
Fair value of assets acquired from via branch purchase
|
$ | 71,825 | ||||||
Cash paid for branches
|
2,432 | |||||||
Liabilities assumed of via branch purchase
|
$ | 74,257 | ||||||
September 30, 2011
|
||||||||||||||
Year
|
Total
|
Net Income
|
||||||||||||
Subsidiary
|
Location
|
Acquired
|
Assets
|
Qtr
|
Nine Mos
|
|||||||||
Citizens Deposit Bank & Trust
|
Vanceburg, Kentucky
|
1991
|
$ | 210,683 | $ | 596 | $ | 1,705 | ||||||
Farmers Deposit Bank
|
Eminence, Kentucky
|
1996
|
58,513 | 168 | 119 | |||||||||
Ohio River Bank
|
Ironton, Ohio
|
1998
|
94,882 | 239 | 362 | |||||||||
Premier Bank, Inc.
|
Huntington, West Virginia
|
1998
|
769,091 | 1,117 | 3,557 | |||||||||
Parent and Intercompany Eliminations
|
6,904 | (307 | ) | (1,230 | ) | |||||||||
Consolidated Total
|
$ | 1,140,073 | $ | 1,813 | $ | 4,513 |
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$ | 30,875 | $ | 2,043 | $ | - | $ | 32,918 | ||||||||
U. S. agency CMO’s - residential
|
207,082 | 6,720 | - | 213,802 | ||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
237,957 | 8,763 | - | 246,720 | ||||||||||||
U. S. government sponsored agency securities
|
20,120 | 96 | (22 | ) | 20,194 | |||||||||||
Obligations of states and political subdivisions
|
9,458 | 469 | - | 9,927 | ||||||||||||
Other securities
|
4,336 | 529 | (106 | ) | 4,759 | |||||||||||
Total available for sale
|
$ | 271,871 | $ | 9,857 | $ | (128 | ) | $ | 281,600 |
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$ | 36,798 | $ | 1,922 | $ | - | $ | 38,720 | ||||||||
U. S. agency CMO’s - residential
|
153,502 | 670 | (5,388 | ) | 148,784 | |||||||||||
Total mortgage-backed securities of government sponsored agencies
|
190,300 | 2,592 | (5,388 | ) | 187,504 | |||||||||||
U. S. government sponsored agency securities
|
52,912 | 154 | (639 | ) | 52,427 | |||||||||||
Obligations of states and political subdivisions
|
10,152 | 196 | (42 | ) | 10,306 | |||||||||||
Other securities
|
5,330 | 954 | (1 | ) | 6,283 | |||||||||||
Total available for sale
|
$ | 258,694 | $ | 3,896 | $ | (6,070 | ) | $ | 256,520 |
Amortized
Cost
|
Fair
Value
|
|||||||
Available for sale
|
||||||||
Due in one year or less
|
$ | 739 | $ | 748 | ||||
Due after one year through five years
|
20,456 | 20,671 | ||||||
Due after five years through ten years
|
8,943 | 9,234 | ||||||
Due after ten years
|
2,684 | 2,921 | ||||||
Corporate preferred securities
|
1,092 | 1,306 | ||||||
Mortgage-backed securities of government sponsored agencies
|
237,957 | 246,720 | ||||||
Total available for sale
|
$ | 271,871 | $ | 281,600 | ||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S. government sponsored agency securities
|
$ | 3,095 | $ | (22 | ) | $ | - | $ | - | $ | 3,095 | $ | (22 | ) | ||||||||||
Other securities
|
791 | (106 | ) | - | - | 791 | (106 | ) | ||||||||||||||||
Total temporarily impaired
|
$ | 3,886 | $ | (128 | ) | $ | - | $ | - | $ | 3,886 | $ | (128 | ) |
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S. government sponsored agency securities
|
$ | 28,724 | $ | (639 | ) | $ | - | $ | - | $ | 28,724 | $ | (639 | ) | ||||||||||
Obligations of states and political subdivisions
|
1,987 | (42 | ) | - | - | 1,987 | (42 | ) | ||||||||||||||||
U.S. government sponsored agency CMO-residential
|
1,012 | (10 | ) | 1,012 | (10 | ) | ||||||||||||||||||
U.S. agency CMO-residential
|
129,647 | (5,378 | ) | 129,647 | (5,378 | ) | ||||||||||||||||||
Other securities
|
443 | (1 | ) | - | - | 443 | (1 | ) | ||||||||||||||||
Total temporarily impaired
|
$ | 161,813 | $ | (6,070 | ) | $ | - | $ | - | $ | 161,813 | $ | (6,070 | ) |
2011
|
2010
|
|||||||
Commercial, secured by real estate
|
$ | 310,951 | $ | 319,048 | ||||
Commercial, other
|
75,780 | 82,591 | ||||||
Real estate construction and land development
|
34,989 | 48,213 | ||||||
Residential real estate, including home equity
|
224,870 | 233,513 | ||||||
Agricultural
|
2,765 | 2,564 | ||||||
Consumer
|
30,793 | 32,926 | ||||||
Other
|
7,864 | 7,109 | ||||||
$ | 688,012 | $ | 725,964 |
Loan Class
|
Balance
Dec 31, 2010
|
Provision for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Sept 30, 2011
|
|||||||||||||||
Residential real estate
|
$ | 2,666 | $ | 83 | $ | 318 | $ | 28 | $ | 2,459 | ||||||||||
Multifamily real estate
|
252 | 32 | - | 21 | 305 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,141 | 35 | - | 2 | 1,178 | |||||||||||||||
Non owner occupied
|
1,644 | 819 | 261 | 28 | 2,230 | |||||||||||||||
Commercial and industrial
|
2,421 | (430 | ) | 17 | 36 | 2,010 | ||||||||||||||
Consumer
|
366 | 36 | 90 | 67 | 379 | |||||||||||||||
All other
|
1,375 | 2,575 | 179 | 66 | 3,837 | |||||||||||||||
Total
|
$ | 9,865 | $ | 3,150 | $ | 865 | $ | 248 | $ | 12,398 |
Loan Class
|
Balance
June 30, 2011
|
Provision for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Sept 30, 2011
|
|||||||||||||||
Residential real estate
|
$ | 2,666 | $ | (69 | ) | $ | 150 | $ | 12 | $ | 2,459 | |||||||||
Multifamily real estate
|
349 | (63 | ) | - | 19 | 305 | ||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
988 | 190 | - | - | 1,178 | |||||||||||||||
Non owner occupied
|
1,639 | 566 | - | 25 | 2,230 | |||||||||||||||
Commercial and industrial
|
1,934 | 49 | 1 | 28 | 2,010 | |||||||||||||||
Consumer
|
364 | 18 | 30 | 27 | 379 | |||||||||||||||
All other
|
3,808 | 119 | 106 | 16 | 3,837 | |||||||||||||||
Total
|
$ | 11,748 | $ | 810 | $ | 287 | $ | 127 | $ | 12,398 |
Three Months
Ended Sept 30, 2010
|
Nine Months
Ended Sept 30, 2010
|
|||||||
Balance, beginning of period
|
$ | 9,201 | $ | 7,569 | ||||
Gross charge-offs
|
(526 | ) | (1,109 | ) | ||||
Recoveries
|
104 | 339 | ||||||
Provision for loan losses
|
761 | 2,741 | ||||||
Balance, end of period
|
$ | 9,540 | $ | 9,540 |
2011
|
2010
|
|||||||
Residential Real Estate
|
$ | 286 | $ | 1,553 | ||||
Multifamily Real Estate
|
3,758 | 4,742 | ||||||
Commercial Real Estate
|
||||||||
Owner Occupied
|
1,948 | 4,564 | ||||||
Non owner Occupied
|
6,501 | 5,189 | ||||||
Commercial and industrial
|
617 | 1,292 | ||||||
All other
|
2,059 | 11,519 | ||||||
Total carrying amount
|
$ | 15,169 | $ | 28,859 | ||||
Carrying amount, net of allowance
|
$ | 15,169 | $ | 28,669 |
2011
|
2010
|
|||||||
Non-accrual loans
|
$ | 42,128 | $ | 47,131 | ||||
Accruing loans which are contractually past due 90 days or more
|
5,140 | 414 | ||||||
Restructured loans
|
1,048 | 2,639 | ||||||
Total
|
$ | 48,316 | $ | 50,184 |
September 30, 2011
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$ | 4,223 | $ | 3,198 | $ | 888 | ||||||
Multifamily real estate
|
9,706 | 7,759 | 703 | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
11,243 | 9,383 | 596 | |||||||||
Non owner occupied
|
10,029 | 7,981 | 1,585 | |||||||||
Commercial and industrial
|
7,581 | 5,303 | 1,365 | |||||||||
Consumer
|
120 | 116 | 3 | |||||||||
All other
|
12,006 | 8,388 | - | |||||||||
Total
|
$ | 54,908 | $ | 42,128 | $ | 5,140 | ||||||
December 31, 2010
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$ | 4,845 | $ | 3,764 | $ | 80 | ||||||
Multifamily real estate
|
6,764 | 4,742 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
12,680 | 10,493 | - | |||||||||
Non owner occupied
|
14,624 | 12,081 | - | |||||||||
Commercial and industrial
|
7,939 | 5,813 | 319 | |||||||||
Consumer
|
15 | 15 | 15 | |||||||||
All other
|
14,805 | 10,223 | - | |||||||||
Total
|
$ | 61,672 | $ | 47,131 | $ | 414 | ||||||
Loan Class
|
Total Loans
|
30-89 Days Past Due
|
Greater than 90 days past due
|
Total Past Due
|
Loans Not Past Due
|
|||||||||||||||
Residential real estate
|
$ | 224,870 | $ | 7,011 | $ | 1,809 | $ | 8,820 | $ | 216,050 | ||||||||||
Multifamily real estate
|
35,410 | 3,836 | 6,166 | 10,002 | 25,408 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
105,430 | 7,928 | 4,718 | 12,646 | 92,784 | |||||||||||||||
Non owner occupied
|
155,696 | 518 | 6,191 | 6,709 | 148,987 | |||||||||||||||
Commercial and industrial
|
75,780 | 2,371 | 5,962 | 8,333 | 67,447 | |||||||||||||||
Consumer
|
30,793 | 388 | 89 | 477 | 30,316 | |||||||||||||||
All other
|
60,033 | 376 | 8,360 | 8,736 | 51,297 | |||||||||||||||
Total
|
$ | 688,012 | $ | 22,428 | $ | 33,295 | $ | 55,723 | $ | 632,289 |
Loan Class
|
Total Loans
|
30-89 Days Past Due
|
Greater than 90 days past due
|
Total Past Due
|
Loans Not Past Due
|
|||||||||||||||
Residential real estate
|
$ | 233,513 | $ | 5,902 | $ | 2,266 | $ | 8,168 | $ | 225,345 | ||||||||||
Multifamily real estate
|
41,037 | 4,471 | 2,140 | 6,611 | 34,426 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
106,924 | 5,638 | 5,797 | 11,435 | 95,489 | |||||||||||||||
Non owner occupied
|
155,839 | 1,141 | 6,907 | 8,048 | 147,791 | |||||||||||||||
Commercial and industrial
|
82,591 | 1,216 | 5,965 | 7,181 | 75,410 | |||||||||||||||
Consumer
|
32,926 | 395 | 29 | 424 | 32,502 | |||||||||||||||
All other
|
73,134 | 4,852 | 10,203 | 15,055 | 58,079 | |||||||||||||||
Total
|
$ | 725,964 | $ | 23,615 | $ | 33,307 | $ | 56,922 | $ | 669,042 |
Allowance for Loan Losses
|
Loan Balances
|
|||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$ | 114 | $ | 2,345 | $ | - | $ | 2,459 | $ | 214 | $ | 224,370 | $ | 286 | $ | 224,870 | ||||||||||||||||
Multifamily real estate
|
3 | 302 | - | 305 | 5,833 | 25,819 | 3,758 | 35,410 | ||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
284 | 894 | - | 1,178 | 14,874 | 88,608 | 1,948 | 105,430 | ||||||||||||||||||||||||
Non-owner occupied
|
921 | 1,309 | - | 2,230 | 8,567 | 140,628 | 6,501 | 155,696 | ||||||||||||||||||||||||
Commercial and industrial
|
1,191 | 819 | - | 2,010 | 5,822 | 69,341 | 617 | 75,780 | ||||||||||||||||||||||||
Consumer
|
36 | 343 | - | 379 | 55 | 30,738 | - | 30,793 | ||||||||||||||||||||||||
All other
|
3,079 | 758 | - | 3,837 | 7,824 | 50,150 | 2,059 | 60,033 | ||||||||||||||||||||||||
Total
|
$ | 5,628 | $ | 6,770 | $ | - | $ | 12,398 | $ | 43,189 | $ | 629,654 | $ | 15,169 | $ | 688,012 |
Allowance for Loan Losses
|
Loan Balances
|
|||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$ | 48 | $ | 2,618 | $ | - | $ | 2,666 | $ | 207 | $ | 231,753 | $ | 1,553 | $ | 233,513 | ||||||||||||||||
Multifamily real estate
|
- | 252 | - | 252 | - | 36,295 | 4,742 | 41,037 | ||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
280 | 861 | - | 1,141 | 7,328 | 95,032 | 4,564 | 106,924 | ||||||||||||||||||||||||
Non-owner occupied
|
429 | 1,025 | 190 | 1,644 | 7,031 | 143,619 | 5,189 | 155,839 | ||||||||||||||||||||||||
Commercial and industrial
|
1,389 | 1,032 | - | 2,421 | 5,022 | 74,047 | 3,522 | 82,591 | ||||||||||||||||||||||||
Consumer
|
23 | 343 | - | 366 | 43 | 32,883 | - | 32,926 | ||||||||||||||||||||||||
All other
|
163 | 1,212 | - | 1,375 | 2,163 | 61,682 | 9,289 | 73,134 | ||||||||||||||||||||||||
Total
|
$ | 2,332 | $ | 7,343 | $ | 190 | $ | 9,865 | $ | 21,794 | $ | 675,311 | $ | 28,859 | $ | 725,964 |
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$ | - | $ | - | $ | - | ||||||
Multifamily real estate
|
12,023 | 9,509 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
15,783 | 13,850 | - | |||||||||
Non owner occupied
|
14,160 | 11,389 | - | |||||||||
Commercial and industrial
|
2,708 | 1,540 | - | |||||||||
All other
|
5,798 | 2,184 | - | |||||||||
50,472 | 38,472 | - | ||||||||||
With an allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 213 | $ | 213 | $ | 114 | ||||||
Multifamily real estate
|
82 | 82 | 3 | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,990 | 2,972 | 284 | |||||||||
Non owner occupied
|
4,013 | 3,679 | 921 | |||||||||
Commercial and industrial
|
5,650 | 4,899 | 1,191 | |||||||||
Consumer
|
55 | 55 | 36 | |||||||||
All other
|
7,702 | 7,700 | 3,079 | |||||||||
20,705 | 19,600 | 5,628 | ||||||||||
Total
|
$ | 71,177 | $ | 58,072 | $ | 5,628 |
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 207 | $ | 10 | $ | - | ||||||
Multifamily real estate
|
6,764 | 4,742 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
10,437 | 8,720 | ||||||||||
Non owner occupied
|
6,338 | 5,105 | - | |||||||||
Commercial and industrial
|
5,043 | 3,837 | - | |||||||||
All other
|
13,868 | 9,289 | - | |||||||||
42,657 | 31,703 | - | ||||||||||
With an allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 197 | $ | 197 | $ | 48 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
3,596 | 3,172 | 280 | |||||||||
Non owner occupied
|
8,484 | 7,115 | 619 | |||||||||
Commercial and industrial
|
5,891 | 4,707 | 1,389 | |||||||||
Consumer
|
43 | 43 | 23 | |||||||||
All other
|
2,165 | 2,163 | 163 | |||||||||
20,376 | 17,397 | 2,522 | ||||||||||
Total
|
$ | 63,033 | $ | 49,100 | $ | 2,522 |
Nine months ended Sept 30, 2011
|
||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
|||||||||
Residential real estate
|
$ | 265 | $ | 8 | $ | 4 | ||||||
Multifamily real estate
|
7,459 | 202 | 194 | |||||||||
Commercial real estate:
|
||||||||||||
Owner occupied
|
13,167 | 1,070 | 1,073 | |||||||||
Non-owner occupied
|
11,377 | 13 | 14 | |||||||||
Commercial and industrial
|
7,941 | 214 | 209 | |||||||||
Consumer
|
44 | 6 | 6 | |||||||||
All other
|
12,119 | 83 | 82 | |||||||||
Total
|
$ | 52,372 | $ | 1,596 | $ | 1,582 |
Three months ended Sept 30, 2011
|
||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
|||||||||
Residential real estate
|
$ | 266 | $ | 5 | $ | 1 | ||||||
Multifamily real estate
|
8,698 | 185 | 177 | |||||||||
Commercial real estate:
|
||||||||||||
Owner occupied
|
14,545 | 580 | 582 | |||||||||
Non-owner occupied
|
11,549 | - | - | |||||||||
Commercial and industrial
|
7,502 | 25 | 18 | |||||||||
Consumer
|
48 | 4 | 4 | |||||||||
All other
|
11,495 | 58 | 56 | |||||||||
Total
|
$ | 54,103 | $ | 857 | $ | 838 |
September 30, 2011
|
TDR’s on
Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$ | 249 | $ | 1,180 | $ | 1,429 | ||||||
Commercial real estate
|
||||||||||||
Non owner occupied
|
- | 93 | 93 | |||||||||
Commercial and industrial
|
42 | 4 | 46 | |||||||||
Consumer
|
12 | 3 | 15 | |||||||||
Total
|
$ | 303 | $ | 1,280 | $ | 1,583 | ||||||
December 31, 2010
|
TDR’s on
Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$ | - | $ | 1,078 | $ | 1,078 | ||||||
Multifamily real estate
|
- | - | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
- | 365 | 365 | |||||||||
Non owner occupied
|
- | 511 | 511 | |||||||||
Commercial and industrial
|
- | 292 | 292 | |||||||||
Consumer
|
- | 3 | 3 | |||||||||
All other
|
- | 390 | 390 | |||||||||
Total
|
$ | - | $ | 2,639 | $ | 2,639 | ||||||
Three months ended Sept 30, 2011
|
Nine months ended Sept 30, 2011
|
|||||||||||||||||||||||
Loan Class
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
||||||||||||||||||
Residential real estate
|
1 | $ | 827 | $ | 827 | 1 | $ | 827 | $ | 827 | ||||||||||||||
Total
|
1 | $ | 827 | $ | 827 | 1 | $ | 827 | $ | 827 |
Three Months Ended
September 30, 2011
|
Nine Months Ended
September 30, 2011
|
|||||||||||||||
Loan Class
|
Number of Loans
|
Recorded Investment
|
Number of Loans
|
Recorded Investment
|
||||||||||||
Residential real estate
|
1 | $ | 83 | 2 | $ | 274 | ||||||||||
Commercial real estate
|
||||||||||||||||
Non owner occupied
|
2 | 93 | 2 | 93 | ||||||||||||
Commercial and industrial
|
1 | 4 | 2 | 45 | ||||||||||||
Consumer
|
- | - | 1 | 12 | ||||||||||||
Total
|
$ | 4 | $ | 180 | $ | 7 | $ | 424 |
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$ | 203,728 | $ | 8,746 | $ | 12,182 | $ | 214 | $ | 224,870 | ||||||||||
Multifamily real estate
|
20,556 | 5,263 | 9,591 | - | 35,410 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
81,726 | 6,881 | 16,689 | 134 | 105,430 | |||||||||||||||
Non-owner occupied
|
133,332 | 4,554 | 17,810 | - | 155,696 | |||||||||||||||
Commercial and industrial
|
61,138 | 8,203 | 6,393 | 46 | 75,780 | |||||||||||||||
Consumer
|
30,430 | 268 | 40 | 55 | 30,793 | |||||||||||||||
All other
|
45,492 | 4,868 | 8,999 | 674 | 60,033 | |||||||||||||||
Total
|
$ | 576,402 | $ | 38,783 | $ | 71,704 | $ | 1,123 | $ | 688,012 |
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$ | 210,519 | $ | 13,696 | $ | 9,091 | $ | 207 | $ | 233,513 | ||||||||||
Multifamily real estate
|
24,231 | 5,955 | 10,851 | - | 41,037 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
79,147 | 11,024 | 16,373 | 380 | 106,924 | |||||||||||||||
Non-owner occupied
|
136,019 | 3,086 | 16,734 | - | 155,839 | |||||||||||||||
Commercial and industrial
|
56,842 | 17,112 | 8,524 | 113 | 82,591 | |||||||||||||||
Consumer
|
32,537 | 233 | 113 | 43 | 32,926 | |||||||||||||||
All other
|
57,106 | 4,336 | 11,119 | 573 | 73,134 | |||||||||||||||
Total
|
$ | 596,401 | $ | 55,442 | $ | 72,805 | $ | 1,316 | $ | 725,964 |
2011
|
2010
|
|||||||
Payments due at maturity in March 2012, fixed rate at 1.81%
|
$ | 10,104 | $ | 10,291 | ||||
Payments due monthly with maturities from November 2011 to July 2012, fixed rates from 4.10% to 4.40%, averaging 4.26%
|
74 | 205 | ||||||
Overnight borrowed funds
|
- | 2,400 | ||||||
$ | 10,178 | $ | 12,896 | |||||
2011 (remaining three months)
|
$ | 95 | ||
2012
|
10,083 | |||
2013
|
- | |||
2014
|
- | |||
2015
|
- | |||
Thereafter
|
- | |||
$ | 10,178 | |||
Sept. 30,
2011
|
December 31,
2010
|
Regulatory
Minimum
Requirements
|
To Be Considered
Well Capitalized
|
|||||||||||||
Tier I Capital (to Risk-Weighted Assets)
|
15.7 | % | 14.1 | % | 4.0 | % | 6.0 | % | ||||||||
Total Capital (to Risk-Weighted Assets)
|
17.0 | % | 15.3 | % | 8.0 | % | 10.0 | % | ||||||||
Tier I Capital (to Average Assets)
|
9.6 | % | 8.5 | % | 4.0 | % | 5.0 | % |
2011
|
2010
|
2009
|
||||||||||
Risk-free interest rate
|
3.58 | % | 3.65 | % | 2.74 | % | ||||||
Expected option life (yrs)
|
10.00 | 10.00 | 10.00 | |||||||||
Expected stock price volatility
|
30.01 | % | 24.67 | % | 19.26 | % | ||||||
Dividend yield
|
4.03 | % | 4.94 | % | 6.72 | % | ||||||
Weighted average fair value of options granted during the year
|
$ | 1.63 | $ | 1.41 | $ | 0.37 |
- - - - - - 2011 - - - - - -
|
- - - - - - 2010 - - - - - -
|
|||||||||||||||
Weighted
Average
Exercise
|
Weighted
Average
Exercise
|
|||||||||||||||
Options
|
Price
|
Options
|
Price
|
|||||||||||||
Outstanding at beginning of year
|
255,649 | $ | 10.77 | 212,449 | $ | 11.18 | ||||||||||
Grants
|
102,000 | 6.95 | 47,700 | 8.90 | ||||||||||||
Exercises
|
- | - | - | - | ||||||||||||
Forfeitures or expired
|
(4,432 | ) | 8.16 | (2,000 | ) | 12.42 | ||||||||||
Outstanding at September 30,
|
353,217 | $ | 9.70 | 258,149 | $ | 10.75 | ||||||||||
Exercisable at September 30,
|
208,995 | 165,699 | ||||||||||||||
Weighted average remaining life of options outstanding
|
6.7 | 6.6 | ||||||||||||||
Weighted average fair value of options granted during the year
|
$ | 1.63 | $ | 1.41 |
- - - - - - - - Outstanding - - - - - - - -
|
- - - - - - - - Currently Exercisable - - - - - - - -
|
||||||||||||||||||||||||||||
Range of Exercise Prices
|
Number
|
Weighted Average Exercise Price
|
Aggregate Intrinsic Value
|
Number
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Aggregate Intrinsic Value
|
||||||||||||||||||||||
$6.50 to $10.00 | 227,284 | $ | 7.53 | $ | - | 83,062 | 5.1 | $ | 7.93 | $ | - | ||||||||||||||||||
$10.01 to $12.50 | 28,333 | 11.62 | - | 28,333 | 3.3 | 11.62 | - | ||||||||||||||||||||||
$12.51 to $15.00 | 70,100 | 13.47 | - | 70,100 | 5.9 | 13.47 | - | ||||||||||||||||||||||
$15.01 to $17.50 | 27,500 | 16.00 | - | 27,500 | 4.4 | 16.00 | - | ||||||||||||||||||||||
Outstanding – Sept 30, 2011
|
353,217 | 9.70 | $ | - | 208,995 | 5.0 | 11.35 | $ | - | ||||||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Basic earnings per share
|
||||||||||||||||
Income available to common stockholders
|
$ | 1,508 | $ | 1,800 | $ | 3,597 | $ | 5,694 | ||||||||
Weighted average common shares outstanding
|
7,937 | 7,937 | 7,937 | 7,937 | ||||||||||||
Earnings per share
|
$ | 0.19 | $ | 0.23 | $ | 0.45 | $ | 0.72 | ||||||||
Diluted earnings per shares
|
||||||||||||||||
Income available to common stockholders
|
$ | 1,508 | $ | 1,800 | $ | 3,597 | $ | 5,694 | ||||||||
Weighted average common shares outstanding
|
7,937 | 7,937 | 7,937 | 7,937 | ||||||||||||
Add dilutive effects of potential additional common stock
|
106 | 156 | 141 | 210 | ||||||||||||
Weighted average common and dilutive potential common shares outstanding
|
8,043 | 8,093 | 8,078 | 8,147 | ||||||||||||
Earnings per share assuming dilution
|
$ | 0.19 | $ | 0.22 | $ | 0.45 | $ | 0.70 | ||||||||
Fair Value Measurements at
September 30, 2011 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$ | 32,918 | $ | - | $ | 32,918 | $ | - | ||||||||
U. S. agency CMO’s - residential
|
213,802 | - | 213,802 | - | ||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
246,720 | - | 246,720 | - | ||||||||||||
U. S. government sponsored agency securities
|
20,194 | - | 20,194 | - | ||||||||||||
Obligations of states and political subdivisions
|
9,927 | - | 9,787 | 140 | ||||||||||||
Other securities
|
4,759 | - | 4,759 | - | ||||||||||||
Total available for sale
|
$ | 281,600 | $ | - | $ | 281,460 | $ | 140 |
Fair Value Measurements at
December 31, 2010 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$ | 38,720 | $ | - | $ | 38,720 | $ | - | ||||||||
U. S. agency CMO’s - residential
|
148,784 | - | 148,784 | - | ||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
187,504 | - | 187,504 | - | ||||||||||||
U. S. government sponsored agency securities
|
52,427 | - | 52,427 | - | ||||||||||||
Obligations of states and political subdivisions
|
10,306 | - | 10,166 | 140 | ||||||||||||
Other securities
|
6,283 | - | 6,283 | - | ||||||||||||
Total available for sale
|
$ | 256,520 | $ | - | $ | 256,380 | $ | 140 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
|||||||||||||
Financial assets
|
||||||||||||||||
Cash and due from banks
|
$ | 92,177 | $ | 92,177 | $ | 98,650 | $ | 98,650 | ||||||||
Federal funds sold
|
4,833 | 4,833 | 23,598 | 23,598 | ||||||||||||
Securities available for sale
|
281,600 | 281,600 | 256,520 | 256,520 | ||||||||||||
Loans held for sale
|
499 | 499 | 1,477 | 1,477 | ||||||||||||
Loans, net
|
675,614 | 678,518 | 716,099 | 715,992 | ||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock
|
5,538 | n/a | 7,096 | n/a | ||||||||||||
Interest receivable
|
3,497 | 3,497 | 3,742 | 3,742 | ||||||||||||
Financial liabilities
|
||||||||||||||||
Deposits
|
$ | (937,549 | ) | $ | (942,526 | ) | $ | (985,291 | ) | $ | (986,261 | ) | ||||
Federal funds purchased
|
(145 | ) | (145 | ) | - | - | ||||||||||
Securities sold under agreements to repurchase
|
(27,145 | ) | (27,145 | ) | (29,637 | ) | (29,637 | ) | ||||||||
Federal Home Loan Bank advances
|
(10,178 | ) | (10,273 | ) | (12,896 | ) | (13,045 | ) | ||||||||
Other borrowed funds
|
(18,646 | ) | (18,616 | ) | (20,178 | ) | (20,148 | ) | ||||||||
Interest payable
|
(782 | ) | (782 | ) | (899 | ) | (899 | ) | ||||||||
Fair Value Measurements at
September 30, 2011 Using
|
||||||||||||||||
Sept 30, 2011
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Residential Real Estate
|
$ | 99 | $ | - | $ | - | $ | 99 | ||||||||
Multifamily Real Estate
|
79 | - | - | 79 | ||||||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
2,688 | - | - | 2,688 | ||||||||||||
Non-owner Occupied
|
2,758 | - | - | 2,758 | ||||||||||||
Commercial and Industrial
|
3,709 | - | - | 3,709 | ||||||||||||
Consumer
|
19 | - | - | 19 | ||||||||||||
All Other
|
4,620 | - | - | 4,620 | ||||||||||||
Total impaired loans
|
13,972 | $ | - | $ | - | $ | 13,972 | |||||||||
Other real estate owned:
|
||||||||||||||||
Residential Real Estate
|
$ | 2,137 | $ | - | $ | - | $ | 2,137 | ||||||||
Multifamily Real Estate
|
3,376 | - | - | 3,376 | ||||||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
238 | - | - | 238 | ||||||||||||
Non-owner Occupied
|
2,931 | - | - | 2,931 | ||||||||||||
Commercial and Industrial
|
55 | - | - | 55 | ||||||||||||
All Other
|
8,914 | - | - | 8,914 | ||||||||||||
Total OREO
|
$ | 17,651 | $ | - | $ | - | $ | 17,651 |
Fair Value Measurements at
December 31, 2010 Using
|
||||||||||||||||
Dec 31, 2010
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired Loans:
|
$ | - | $ | - | ||||||||||||
Residential Real Estate
|
$ | 149 | $ | - | $ | - | $ | 149 | ||||||||
Multifamily Real Estate
|
- | - | - | - | ||||||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
2,892 | - | - | 2,892 | ||||||||||||
Non-owner Occupied
|
6,496 | - | - | 6,496 | ||||||||||||
Commercial and Industrial
|
3,318 | - | - | 3,318 | ||||||||||||
Consumer
|
20 | - | - | 20 | ||||||||||||
All Other
|
2,000 | - | - | 2,000 | ||||||||||||
Total impaired loans
|
$ | 14,875 | $ | - | $ | - | $ | 14,875 | ||||||||
Other real estate owned
|
||||||||||||||||
Residential Real Estate
|
$ | 818 | $ | - | $ | - | $ | 818 | ||||||||
Multifamily Real Estate
|
3,385 | - | - | 3,385 | ||||||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
352 | - | - | 352 | ||||||||||||
Non-owner Occupied
|
2,778 | - | - | 2,778 | ||||||||||||
Commercial and Industrial
|
66 | - | - | 66 | ||||||||||||
All Other
|
3,850 | - | - | 3,850 | ||||||||||||
Total OREO
|
$ | 11,249 | $ | - | $ | - | $ | 11,249 |
PREMIER FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Nine Months Ended Sept 30, 2011
|
Nine Months Ended Sept 30, 2010
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and other
|
$ | 75,784 | $ | 121 | 0.21 | % | $ | 72,263 | $ | 110 | 0.20 | % | ||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Taxable
|
280,716 | 5,973 | 2.84 | 238,368 | 5,997 | 3.35 | ||||||||||||||||||
Tax-exempt
|
8,264 | 180 | 4.40 | 8,450 | 193 | 4.61 | ||||||||||||||||||
Total investment securities
|
288,960 | 6,153 | 2.88 | 246,818 | 6,190 | 3.40 | ||||||||||||||||||
Total loans
|
708,618 | 33,479 | 6.32 | 692,027 | 33,534 | 6.48 | ||||||||||||||||||
Total interest-earning assets
|
1,073,382 | 39,753 | 4.96 | % | 1,011,108 | 39,834 | 5.28 | % | ||||||||||||||||
Allowance for loan losses
|
(10,803 | ) | (8,366 | ) | ||||||||||||||||||||
Cash and due from banks
|
27,825 | 20,105 | ||||||||||||||||||||||
Other assets
|
77,294 | 76,133 | ||||||||||||||||||||||
Total assets
|
$ | 1,167,698 | $ | 1,098,980 | ||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 760,002 | 5,504 | 0.97 | $ | 737,021 | 6,538 | 1.19 | ||||||||||||||||
Short-term borrowings
|
24,827 | 1243 | 0.67 | 22,765 | 124 | 0.73 | ||||||||||||||||||
FHLB advances
|
10,589 | 142 | 1.79 | 12,750 | 257 | 2.69 | ||||||||||||||||||
Other borrowings
|
19,382 | 648 | 4.47 | 15,761 | 469 | 3.98 | ||||||||||||||||||
Total interest-bearing liabilities
|
814,800 | 6,418 | 1.05 | % | 788,297 | 7,388 | 1.25 | % | ||||||||||||||||
Non-interest bearing deposits
|
212,977 | 174,213 | ||||||||||||||||||||||
Other liabilities
|
2,919 | 4,498 | ||||||||||||||||||||||
Shareholders’ equity
|
137,002 | 131,972 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 1,167,698 | $ | 1,098,980 | ||||||||||||||||||||
Net interest earnings
|
$ | 33,335 | $ | 32,446 | ||||||||||||||||||||
Net interest spread
|
3.91 | % | 4.03 | % | ||||||||||||||||||||
Net interest margin
|
4.16 | % | 4.30 | % | ||||||||||||||||||||
PREMIER FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Three Months Ended Sept 30, 2011
|
Three Months Ended Sept 30, 2010
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and other
|
$ | 55,150 | $ | 28 | 0.20 | % | $ | 86,743 | $ | 49 | 0.22 | % | ||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Taxable
|
282,028 | 1,916 | 2.72 | 227,469 | 1,976 | 3.47 | ||||||||||||||||||
Tax-exempt
|
8,158 | 58 | 4.31 | 8,554 | 63 | 4.46 | ||||||||||||||||||
Total investment securities
|
290,186 | 1,974 | 2.76 | 236,023 | 2,039 | 3.51 | ||||||||||||||||||
Total loans
|
701,112 | 11,252 | 6.37 | 700,105 | 10,964 | 6.21 | ||||||||||||||||||
Total interest-earning assets
|
1,046,448 | 13,254 | 5.04 | % | 1,022,871 | 13,052 | 5.08 | % | ||||||||||||||||
Allowance for loan losses
|
(11,881 | ) | (9,251 | ) | ||||||||||||||||||||
Cash and due from banks
|
28,592 | 20,601 | ||||||||||||||||||||||
Other assets
|
74,776 | 76,375 | ||||||||||||||||||||||
Total assets
|
$ | 1,137,935 | $ | 1,110,595 | ||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 746,785 | 1,746 | 0.93 | $ | 743,157 | 2,125 | 1.13 | ||||||||||||||||
Short-term borrowings
|
23,485 | 37 | 0.63 | 24,223 | 42 | 0.69 | ||||||||||||||||||
FHLB advances
|
10,455 | 48 | 1.82 | 10,525 | 50 | 1.88 | ||||||||||||||||||
Other borrowings
|
18,874 | 209 | 4.39 | 16,204 | 165 | 4.04 | ||||||||||||||||||
Total interest-bearing liabilities
|
799,600 | 2,040 | 1.01 | % | 794,109 | 2,382 | 1.19 | % | ||||||||||||||||
Non-interest bearing deposits
|
195,426 | 177,996 | ||||||||||||||||||||||
Other liabilities
|
1,817 | 4,600 | ||||||||||||||||||||||
Shareholders’ equity
|
141,092 | 133,890 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 1,137,935 | $ | 1,110,595 | ||||||||||||||||||||
Net interest earnings
|
$ | 11,214 | $ | 10,670 | ||||||||||||||||||||
Net interest spread
|
4.03 | % | 3.89 | % | ||||||||||||||||||||
Net interest margin
|
4.27 | % | 4.16 | % | ||||||||||||||||||||
(In Thousands)
|
||||||||
2011
|
2010
|
|||||||
Non-accrual loans
|
$ | 42,128 | $ | 47,131 | ||||
Accruing loans which are contractually past due 90 days or more
|
5,140 | 414 | ||||||
Restructured
|
1,048 | 2,639 | ||||||
Total non-performing loans
|
48,316 | 50,184 | ||||||
Other real estate acquired through foreclosure (OREO)
|
17,651 | 11,249 | ||||||
Total non-performing assets
|
$ | 65,967 | $ | 61,433 | ||||
Non-performing loans as a percentage of total loans
|
7.02 | % | 6.91 | % | ||||
Non-performing assets as a percentage of total assets
|
5.79 | % | 5.19 | % |
NON-PERFORMING ASSETS AT ACQUIRED SUBSIDIARY BANKS
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Face Value
|
Discounted Net Carrying Value
|
Face Value
|
Discounted Net Carrying
Value
|
|||||||||||||
Non-performing Assets
|
||||||||||||||||
Non-accrual loans
|
$ | 37,326 | $ | 29,920 | $ | 52,337 | $ | 41,480 | ||||||||
Loans 90+ days past due
|
4,740 | 4,683 | 335 | 319 | ||||||||||||
Other real estate owned
|
15,256 | 13,766 | 8,198 | 6,903 | ||||||||||||
Total non-performing assets
|
$ | 57,322 | $ | 48,369 | $ | 60,870 | $ | 48,702 | ||||||||
(1) Face value includes reductions for interest payments received on loans while on non-accrual status in accordance with the cost recovery method of accounting for non-accrual loans.
|
|
1.
|
Core deposits consisting of both consumer and commercial deposits and certificates of deposit of $100,000 or more. Management believes that the majority of its $100,000 or more certificates of deposit are no more volatile than its other deposits. This is due to the nature of the markets in which the subsidiaries operate.
|
|
2.
|
Cash flow generated by repayment of loans and interest.
|
|
3.
|
Arrangements with correspondent banks for purchase of unsecured federal funds.
|
|
4.
|
The sale of securities under repurchase agreements and borrowing from the Federal Home Loan Bank.
|
|
5.
|
Maintenance of an adequate available-for-sale security portfolio. The Company owns $281.6 million of securities at fair value as of September 30, 2011.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Premier Financial 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 registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and;
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Premier Financial 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 registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and;
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
·
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
|
·
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, dividend rate ( in hundredths) | 5.00% | 5.00% |
Preferred stock, liquidation preference | $ 22,252 | $ 22,252 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 22,252 | 22,252 |
Preferred stock, shares outstanding (in shares) | 22,252 | 22,252 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 7,937,143 | 7,937,143 |
Common stock, shares outstanding (in shares) | 7,937,143 | 7,937,143 |
Document And Entity Information (USD $) | 9 Months Ended | ||
---|---|---|---|
Sep. 30, 2011 | Nov. 01, 2011 | Jun. 30, 2010 | |
Entity Registrant Name | PREMIER FINANCIAL BANCORP INC | ||
Entity Central Index Key | 0000887919 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 54,103,300 | ||
Entity Common Stock, Shares Outstanding | 7,937,143 | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q3 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2011 |
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PREFERRED STOCK | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
PREFERRED STOCK [Abstract] | |
PREFERRED STOCK | NOTE 6 – PREFERRED STOCK On October 2, 2009, as part of the Troubled Asset Relief Program (“TARP”) Capital Purchase Program, the Company entered into a Letter Agreement and Securities Purchase Agreement (collectively, the “Purchase Agreement”) with the United States Department of the Treasury (“U.S. Treasury”). Pursuant to the Purchase Agreement, the Company issued and sold to the U.S. Treasury 22,252 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, no par value, with a liquidation preference of one thousand dollars per share (the “Series A Preferred Stock”) and a ten-year warrant (the “Warrant”) to purchase 628,587 shares of the Company's common stock, no par value, at an exercise price of $5.31 per share, for an aggregate purchase price of $22,252 in cash. Under standardized TARP Capital Purchase Program terms, cumulative dividends on the Series A Preferred Stock will accrue on the liquidation preference at a rate of 5% per annum until November 14, 2014, and at a rate of 9% per annum thereafter. These dividends will be paid only if, as and when declared by Premier's Board of Directors. The Series A Preferred Stock has no maturity date and ranks senior to the Company's common stock with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of Premier. Subject to the approval of the Appropriate Federal Banking Agency (as defined in the Securities Purchase Agreement, which for Premier is the Board of Governors of the Federal Reserve System), the Series A Preferred Stock is redeemable at the option of Premier at 100% of its liquidation preference plus accrued and unpaid dividends, without penalty, delay or the need to raise additional replacement capital. The Series A Preferred Stock is non-voting, but has class voting rights on (i) any authorization or issuance of shares ranking senior to the Series A Preferred Stock; (ii) any amendment to the rights of the Series A Preferred Stock; or (iii) any merger, consolidation, share exchange, reclassification or similar transaction which would adversely affect the rights of the Series A Preferred Stock. In the event that the cumulative dividends described above are not paid in full for an aggregate of six dividend periods or more, whether or not consecutive, the authorized number of directors of Premier would automatically be increased by two and the holders of the Series A Preferred Stock would have the right to elect two directors. The right to elect directors would end when dividends have been paid in full for four consecutive dividend periods. As previously disclosed, Premier has already deferred two dividend payments on the Series A Preferred Stock as a result of the Federal Reserve Board's refusal to initially approve the November 15, 2010 and February 15, 2011 dividends under the Written Agreement dated July 29, 2010, among CB&T, a wholly owned subsidiary of Premier; the FRB, and the Virginia Bureau. These deferred dividends were paid along with the regularly scheduled May 15, 2011 Series A Preferred Stock quarterly dividend. The U.S. Treasury has agreed not to exercise voting power with respect to any common stock issued to it upon exercise of the Warrant. The common stock will be issued from authorized but unissued common stock and thus will dilute the interests of existing Premier common shareholders. As of September 30, 2011, the Warrant has not yet been exercised. Pursuant to the terms of the Purchase Agreement, the ability of the Company to declare or pay dividends or distributions on, or purchase, redeem or otherwise acquire for consideration, shares of its common stock will be subject to restrictions, including a restriction against increasing dividends from the last quarterly cash dividend per share ($0.11) declared on the common stock prior to October 2, 2009. |
SECURITIES | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SECURITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | NOTE 2 –SECURITIES Amortized cost and fair value of investment securities, by category, at September 30, 2011 are summarized as follows:
Amortized cost and fair value of investment securities, by category, at December 31, 2010 are summarized as follows:
The amortized cost and fair value of securities at September 30, 2011 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Securities with unrealized losses at September 30, 2011 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
Securities with unrealized losses at December 31, 2010 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
The investment portfolio is predominately high quality interest-bearing debt securities with defined maturity dates backed by the U.S. Government or Government sponsored entities. The unrealized losses at September 30, 2011 and December 31, 2010 are price changes resulting from changes in the interest rate environment and are not considered to be other than temporary declines in the value of the securities. Their fair value is expected to recover as the bonds approach their maturity date and/or market conditions improve. |
EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | NOTE 8 – EARNINGS PER SHARE A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution computations for the three and nine months ended September 30, 2011 and 2010 is presented below:
Stock options for 311,049 and 211,049 shares of common stock were not considered in computing diluted earnings per share for the periods ended September 30, 2011 and 2010 because they were antidilutive. |
FAIR VALUE | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FAIR VALUE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | NOTE 9 – FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and the Company must use other valuation methods to develop a fair value. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a recurring basis: Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below:
The carrying amounts and estimated fair values of financial instruments at September 30, 2011 and December 31, 2010 were as follows:
Carrying amount is the estimated fair value for cash and due from banks, Federal funds sold, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. It was not practicable to determine the fair value of Federal Home Loan Bank and Federal Reserve Bank stock due to the restrictions placed on its transferability. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of commitments to extend credit and standby letters of credit is not material. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a non-recurring basis: Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Other real estate owned (OREO): The fair value of OREO is based on appraisals less cost to sell at the date of foreclosure. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Valuations are periodically performed by management and the assets are carried at fair value, less cost to sell. Assets and Liabilities Measured on a Non-Recurring Basis Assets and liabilities measured at fair value on a non-recurring basis are summarized below:
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $19,600,000 at September 30, 2011 with a valuation allowance of $5,628,000 and a carrying amount of $17,397,000 at December 31, 2010 with a valuation allowance of $2,522,000, resulting in a provision for loan losses of $3,106,000 for the nine months ended September 30, 2011, compared to a $901,000 provision for loan losses for the nine months ended September 30, 2010; and a $764,000 provision for loan losses for the three months ended September 30, 2011, compared to a negative provision for loan losses of $41,000 for the three months ended September 30, 2010. The detail of impaired loans by loan class is contained in Note 3 above. Other real estate owned measured at fair value less costs to sell, had a net carrying amount of $17,651,000, which is made up of the outstanding balance of $18,644,000, net of a valuation allowance of $993,000 at September 30, 2011, resulting in write downs of $592,000 for the nine months ended September 30, 2011 and $230,000 for the three months ended September 30, 2011. At December 31, 2010, other real estate owned had a net carrying amount of $11,249,000, made up of the outstanding balance of $11,659,000, net of a $410,000 valuation allowance. |
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STOCK COMPENSATION EXPENSE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK COMPENSATION EXPENSE | From time to time the Company grants stock options to its employees. The Company estimates the fair value of the options at the time they are granted to employees and expenses that fair value over the vesting period of the option grant. On March 16, 2011, 102,000 incentive stock options were granted out of the 2002 Employee Stock Option Plan at an exercise price of $6.95, the closing market price of Premier on the grant date. These options vest in three equal annual installments ending on March 16, 2014. On March 17, 2010, 47,700 incentive stock options were granted out of the 2002 Plan at an exercise price of $8.90. These options vest in three equal annual installments ending on March 17, 2013. On February 18, 2009, 47,100 incentive stock options were granted out of the 2002 Plan at an exercise price of $6.55. These options vest in three equal annual installments ending on February 18, 2012. The fair value of the Company's employee stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. The assumptions used in the Black-Scholes option-pricing model are as follows
The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield in effect at the time of the grant. The expected option life was estimated since there has been little option exercise history. The expected stock price volatility is based on historical volatilities of the Company's common stock. The dividend yield was estimated using historical dividends and dividend yields since at the time of the option grant the Company is restricted from paying dividends by its primary regulator. Compensation expense of $77,000 was recorded for the first nine months of 2011 compared to $38,000 for the first nine months of 2010. For the three months ended September 30, $30,000 was recorded for 2011 while $14,000 was recorded for 2010. Stock-based compensation expense is recognized ratably over the requisite service period for all awards. Unrecognized stock-based compensation expense related to stock options totaled $118,000 at September 30, 2011. This unrecognized expense is expected to be recognized over the next 29 months based on the vesting periods of the options. A summary of the Company's stock option activity and related information is presented below for the nine months ended September 30:
Options outstanding at period-end are expected to fully vest. Additional information regarding stock options outstanding and exercisable at September 30, 2011, is provided in the following table:
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LOANS | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | NOTE 3 - LOANS Major classifications of loans at September 30, 2011 and December 31, 2010 are summarized as follows:
Activity in the allowance for loan losses by portfolio segment for the nine months ending September 30, 2011 was as follows:
Activity in the allowance for loan losses by portfolio segment for the three months ending September 30, 2011 was as follows:
Changes in the allowance for loan losses for the three and nine months ended September 30, 2010 are as follows:
Purchased Loans As a result of the acquisition Abigail Adams National Bancorp, the Company holds purchased loans for which there was, at the October 1, 2009 acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows at September 30, 2011 and December 31, 2010.
The Company cannot reasonably estimate the cash flows expected to be collected on these loans and therefore has continued to account for these loans using the cost recovery method of income recognition. As such, no portion of a purchase discount adjustment has been determined to meet the definition of an accretable yield adjustment. If, in the future, cash flows from the borrower(s) can be reasonably estimated, a portion of the purchase discount would be allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion would be recognized as interest income over the remaining life of the loan. Until such accretable yield can be calculated, under the cost recovery method of income recognition, all payments will be used to reduce the carrying value of the loan and no income will be recognized on the loan until the carrying value is reduced to zero. Any loan accounted for under the cost recovery method is also still included as a non-accrual loan in the amounts presented in the tables above. For those purchased loans disclosed above, the Company increased the allowance for loan losses by $307 for the nine months ended September 30, 2010 and decreased the allowance for loan losses by $190 for the nine months ended September 30, 2011. Past Due and Non-performing Loans The following table sets forth information with respect to the Company's nonperforming loans at September 30, 2011 and December 31, 2010.
The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2011 and December 31, 2010. The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.
Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of September 30, 2011 by class of loans:
The following table presents the aging of the recorded investment in past due loans as of December 31, 2010 by class of loans:
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2011:
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2010:
In the tables below, total individually evaluated impaired loans include certain purchased loans that were acquired with deteriorated credit quality that are still individually evaluated for impairment. The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2011. The table includes $14,883 of loans acquired with deteriorated credit quality that are still individually evaluated for impairment.
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2010. The table includes $27,306 of loans acquired with deteriorated credit quality that are still individually evaluated for impairment.
The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the nine months ended September 30, 2011. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.
The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended September 30, 2011. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.
Troubled Debt Restructurings A loan is classified as a troubled debt restructuring ("TDR") when loan terms are modified due to a borrower's financial difficulties and a concession is granted to a borrower that would not have otherwise been considered. Most of the Company's loan modifications involve a restructuring of loan terms prior to maturity to temporarily reduce the payment amount and/or to require only interest for a temporary period, usually up to six months. These modifications generally do not meet the definition of a TDR because the modifications are considered to be an insignificant delay in payment. The following table presents TDR's as of September 30, 2011 and December 31, 2010:
At September 30, 2011, $60,000 in specific reserves was allocated to loans that had restructured terms. At December 31, 2010 $5,000 in specific reserves was allocated to loans that had restructured terms. The following table presents TDR's that occurred during the three and nine months ended September 30, 2011:
The troubled debt restructurings described above did not increase the allowance for loan losses during the periods ending September 30, 2011. The following table presents TDR's for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2011:
A loan is considered to be in payment default once it is 31 days contractually past due under the modified terms. The troubled debt restructurings that subsequently defaulted described above increased the allowance for loan losses by $60,000 during the period ending September 30, 2011. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
As of December 31, 2010, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
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FEDERAL HOME LOAN BANK ADVANCES | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FEDERAL HOME LOAN BANK ADVANCES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FEDERAL HOME LOAN BANK ADVANCES | NOTE 4 – FEDERAL HOME LOAN BANK ADVANCES The Banks own stock of the Federal Home Loan Bank (FHLB) of Cincinnati, Ohio, and the FHLB of Pittsburgh, Pennsylvania. This stock allows the Banks to borrow advances from the FHLB. Advances from the FHLB at September 30, 2011 and December 31, 2010 were as follows:
Advances are secured by the FHLB stock, certain pledged investment securities and substantially all single family first mortgage loans of the participating Banks. Scheduled principal payments due on advances during the five years subsequent to September 30, 2011 are as follows:
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STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | NOTE 5 - STOCKHOLDERS' EQUITY AND REGULATORY MATTERS The Company's principal source of funds for dividend payments to shareholders is dividends received from the subsidiary Banks. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year's net profits, as defined, combined with the retained net profits of the preceding two years, subject to the capital requirements and additional restrictions as discussed below. During 2011 the Banks could, without prior approval, declare dividends of approximately $1.3 million plus any 2011 net profits retained to the date of the dividend declaration. The Company and the subsidiary Banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Banks must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. These quantitative measures established by regulation to ensure capital adequacy require the Company and Banks to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of September 30, 2011, that the Company and the Banks meet all quantitative capital adequacy requirements to which they are subject. Shown below is a summary of regulatory capital ratios for the Company:
During 2009, Farmers Deposit Bank requested and received approval from its primary regulatory authority to make a dividend payment to the Company in an amount that exceeded the retained net profits of the preceding two years. As such, Farmers Deposit will be required to continue to request permission to pay any additional dividends to the Company for at least two years. As of September 30, 2011, the most recent notification from each of the Banks' primary Federal regulators categorized the subsidiary Banks as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Banks must maintain minimum Total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the preceding table. There are no conditions or events since that notification that management believes have changed the Banks' categories. Adams National Bank entered into an agreement with the Office of the Comptroller of the Currency (“OCC”) on October 1, 2008 restricting the bank from declaring or paying dividends, without prior approval from the OCC. Adams National Bank was merged into Premier Bank, Inc. on April 8, 2011. With the surrender of the Adams National Bank charter as part of the merger to form Premier Bank, the October 1, 2008 Written Agreement between Adams National Bank and the OCC ceased to have any future effect on the Company or Premier Bank. On July 29, 2010, Consolidated Bank and Trust Company (“CB&T” or “the Bank”), a wholly owned subsidiary of Premier, the Federal Reserve Bank of Richmond (“FRB”) and the State Corporation Commission Bureau of Financial Institutions (“Virginia Bureau”) entered into a written agreement (“Written Agreement”) requiring CB&T to perform certain actions primarily designed to improve the credit quality of the Bank. Abigail Adams National Bancorp, Inc. (“AANBI”), as parent of CB&T, and Premier, as parent of AANBI, were also named as parties to the Written Agreement to ensure that the Bank complies with the Written Agreement. On April 8, 2011, CB&T was merged into Premier Bank, Inc. As such, the provisions of the Written Agreement that applied to the Bank are no longer in effect. In addition to ensuring the Bank complied with provisions of the Written Agreement, Premier is also specifically subject to a provision requiring prior written approval of the FRB and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System for declaring or paying any dividends, and a provision requiring prior written approval of the FRB before incurring, increasing or guaranteeing any debt or purchasing or redeeming any shares of its stock. The dividend rights of holders of Premier's common shares are also qualified and subject to the dividend rights of holders of Premier's Series A Preferred Shares. Due to restrictions placed on it by the Federal Reserve Board of Governors in conjunction with the July 29, 2010 Written Agreement between Consolidated Bank & Trust and the FRB, Premier deferred its November 15, 2010 and February 15, 2011 quarterly dividends on its Series A Preferred Shares. On May 13, 2011, Premier was given permission by the FRB and the Board of Governors to pay the deferred November 15, 2010 and February 15, 2011 quarterly dividends on its Series A Preferred Shares in conjunction with the regularly scheduled May 15, 2011 dividend payment. In a letter dated July 21, 2011, the FRB and Board of Governors approved Premier's July 14, 2011 request to pay the current $278,150 dividend due August 15, 2011. Also, see Note 10 below. |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands | 3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 1,813 | $ 2,105 | $ 4,513 | $ 6,637 |
Other comprehensive income: | ||||
Unrealized gains arising during the period | 3,279 | 719 | 11,921 | 2,598 |
Reclassification of realized amount | 0 | 0 | (18) | 0 |
Net change in unrealized gain (loss) on securities | 3,279 | 719 | 11,903 | 2,598 |
Less tax impact | 1,115 | 247 | 4,047 | 886 |
Other comprehensive income: | 2,164 | 472 | 7,856 | 1,712 |
Comprehensive income | $ 3,977 | $ 2,577 | $ 12,369 | $ 8,349 |
BASIS OF PRESENTATION | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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BASIS OF PRESENTATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The consolidated financial statements include the accounts of Premier Financial Bancorp, Inc. (the Company) and its wholly owned subsidiaries (the “Banks”):
All significant intercompany transactions and balances have been eliminated. On April 8, 2011, Premier consummated the merger of five of its subsidiary banks to form Premier Bank, Inc., an $820 million West Virginia chartered bank with 23 locations in West Virginia, Virginia, Washington, the District of Columbia and Maryland. Premier filed applications with state and federal banking regulatory authorities in September 2010 to merge two of its wholly owned West Virginia banks (First Central Bank and Traders Bank) and the two subsidiary banks obtained via the acquisition of Abigail Adams National Bancorp (Adams National Bank and Consolidated Bank & Trust) with and into Boone County Bank, also a West Virginia chartered bank under the name “Premier Bank, Inc.” In the first quarter of 2011, Premier received the required approvals from all federal and state banking regulatory authorities to go ahead with its plans. As of the close of business on Friday, April 8, 2011, the five banks were merged to form Premier Bank, Inc. Recently Issued Accounting Pronouncements In December 2010, the FASB amended existing guidance relating to goodwill impairment testing. This guidance requires that if the carrying amount of a reporting unit is zero or negative, a qualitative assessment be performed to determine if it is more likely than not that goodwill is impaired. Step 2 of the impairment test shall be performed if it is determined that it is more likely than not that goodwill is impaired. The amendments in this guidance are effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. The Company is currently evaluating the impact of this amendment on the consolidated financial statements. In April 2011, the FASB amended existing guidance for assisting a creditor in determining whether a restructuring is a troubled debt restructuring. The amendments clarify the guidance for a creditor's evaluation of whether it has granted a concession and whether a debtor is experiencing financial difficulties. With regard to determining whether a concession has been granted, the ASU clarifies that creditors are precluded from using the effective interest method to determine whether a concession has been granted. In the absence of using the effective interest method, a creditor must now focus on other considerations such as the value of the underlying collateral, evaluation of other collateral or guarantees, the debtor's ability to access other funds at market rates, interest rate increases and whether the restructuring results in a delay in payment that is insignificant. This guidance is effective for interim and annual reporting periods beginning after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. For purposes of measuring impairment on newly identified troubled debt restructurings, the amendments should be applied prospectively for the first interim or annual period beginning on or after June 15, 2011. The adoption of this guidance did not have a material effect on the Company's results of operations or financial position. In June 2011, the FASB issued ASU No. 2011-05, "Comprehensive Income (Topic 220) - Presentation of Comprehensive Income." The ASU requires entities to present items of net income and other comprehensive income either in one continuous statement - referred to as the statement of comprehensive income - or in two separate, but consecutive, statements of net income and other comprehensive income. The ASU is effective for the first interim period and annual period beginning after December 15, 2011. The adoption of this guidance is not expected to have a material impact upon the Company's financial statements. In May 2011, the FASB issued ASU No. 2011-04, "Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." This ASU represents the converged guidance of the FASB and the IASB (the "Boards") on fair value measurement. The collective efforts of the Boards and their staffs, reflected in ASU 2011-04, have resulted in common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term "fair value." The Boards have concluded the common requirements will result in greater comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. Included in the ASU are requirements to disclose additional quantitative disclosures about unobservable inputs for all Level 3 fair value measurements, as well as qualitative disclosures about the sensitivity inherent in recurring Level 3 fair value measurements. The ASU is effective during interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact this new ASU will have on its financial statements. |
SUBSEQUENT EVENTS | 9 Months Ended |
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Sep. 30, 2011 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS On October 14, 2011, Premier submitted a request to the FRB for written approval from the FRB and the Director of the Division of Banking Supervision and Regulation of the Board of Governors to declare and pay its quarterly dividend obligation to the U.S. Treasury due on November 15, 2011. In a letter dated October 24, 2011, the FRB and Board of Governors approved Premier's October 14, 2011 request to pay the current $278,150 dividend due November 15, 2011. See Note 6 for additional details on Premier's Series A, Fixed Rate Cumulative Perpetual Preferred Stock. |