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, 2012
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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 000-20908
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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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39
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52
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52
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53
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53
|
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53
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|
53
|
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53
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53
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53
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53
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54
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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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||||||||
2012
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2011
|
|||||||
ASSETS
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||||||||
Cash and due from banks
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$ | 27,698 | $ | 29,380 | ||||
Interest bearing bank balances
|
43,199 | 42,676 | ||||||
Federal funds sold
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4,829 | 10,832 | ||||||
Cash and cash equivalents
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75,726 | 82,888 | ||||||
Securities available for sale
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300,775 | 278,479 | ||||||
Loans held for sale
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- | 70 | ||||||
Loans
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692,488 | 690,923 | ||||||
Allowance for loan losses
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(10,755 | ) | (9,795 | ) | ||||
Net loans
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681,733 | 681,128 | ||||||
Federal Home Loan Bank stock
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4,184 | 5,216 | ||||||
Premises and equipment, net
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15,995 | 16,355 | ||||||
Real estate and other property acquired through foreclosure
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14,831 | 14,642 | ||||||
Interest receivable
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3,455 | 3,497 | ||||||
Goodwill
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29,875 | 29,875 | ||||||
Other intangible assets
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2,873 | 3,393 | ||||||
Prepaid FDIC insurance premiums
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635 | 1,167 | ||||||
Deferred taxes
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2,065 | 3,997 | ||||||
Other assets
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1,553 | 3,380 | ||||||
Total assets
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$ | 1,133,700 | $ | 1,124,087 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Deposits
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||||||||
Non-interest bearing
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$ | 198,487 | $ | 196,125 | ||||
Time deposits, $100,000 and over
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149,626 | 155,208 | ||||||
Other interest bearing
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598,254 | 573,745 | ||||||
Total deposits
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946,367 | 925,078 | ||||||
Securities sold under agreements to repurchase
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24,330 | 23,205 | ||||||
Federal Home Loan Bank advances
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- | 10,083 | ||||||
Other borrowed funds
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16,573 | 18,130 | ||||||
Interest payable
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550 | 712 | ||||||
Other liabilities
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3,462 | 2,872 | ||||||
Total liabilities
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991,282 | 980,080 | ||||||
Stockholders' equity
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||||||||
Preferred stock, no par value; liquidation preference $12,000 in 2012
and $22,252 in 2011, 5% cumulative, 1,000,000 shares authorized;
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||||||||
12,000 shares in 2012 and 22,252 shares in 2011 issued and outstanding
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11,881 | 21,949 | ||||||
Common stock, no par value; 20,000,000 shares authorized;
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||||||||
7,947,343 shares in 2012 and 7,937,143 shares in 2011 issued and outstanding
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72,645 | 71,571 | ||||||
Retained earnings
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51,025 | 45,474 | ||||||
Accumulated other comprehensive income
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6,867 | 5,013 | ||||||
Total stockholders' equity
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142,418 | 144,007 | ||||||
Total liabilities and stockholders' equity
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$ | 1,133,700 | $ | 1,124,087 |
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
Interest income
|
||||||||||||||||
Loans, including fees
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$ | 10,759 | $ | 11,252 | $ | 33,123 | $ | 33,479 | ||||||||
Securities available for sale
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||||||||||||||||
Taxable
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1,740 | 1,916 | 5,360 | 5,973 | ||||||||||||
Tax-exempt
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50 | 58 | 162 | 180 | ||||||||||||
Federal funds sold and other
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31 | 28 | 107 | 121 | ||||||||||||
Total interest income
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12,580 | 13,254 | 38,752 | 39,753 | ||||||||||||
Interest expense
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||||||||||||||||
Deposits
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1,353 | 1,746 | 4,325 | 5,504 | ||||||||||||
Repurchase agreements and other
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22 | 37 | 70 | 124 | ||||||||||||
FHLB advances and other borrowings
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188 | 257 | 614 | 790 | ||||||||||||
Total interest expense
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1,563 | 2,040 | 5,009 | 6,418 | ||||||||||||
Net interest income
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11,017 | 11,214 | 33,743 | 33,335 | ||||||||||||
Provision for loan losses
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1,260 | 810 | 2,960 | 3,150 | ||||||||||||
Net interest income after provision for loan losses
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9,757 | 10,404 | 30,783 | 30,185 | ||||||||||||
Non-interest income
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||||||||||||||||
Service charges on deposit accounts
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919 | 1,021 | 2,622 | 2,890 | ||||||||||||
Electronic banking income
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502 | 442 | 1,512 | 1,370 | ||||||||||||
Secondary market mortgage income
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74 | 108 | 202 | 248 | ||||||||||||
Gain on disposition of securities
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273 | - | 273 | 18 | ||||||||||||
Other
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168 | 295 | 476 | 685 | ||||||||||||
1,936 | 1,866 | 5,085 | 5,211 | |||||||||||||
Non-interest expenses
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||||||||||||||||
Salaries and employee benefits
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3,720 | 4,174 | 11,541 | 12,217 | ||||||||||||
Occupancy and equipment expenses
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1,143 | 1,188 | 3,445 | 3,706 | ||||||||||||
Outside data processing
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850 | 954 | 2,595 | 3,341 | ||||||||||||
Professional fees
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325 | 248 | 909 | 730 | ||||||||||||
Taxes, other than payroll, property and income
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187 | 158 | 532 | 573 | ||||||||||||
Write-downs, expenses, sales of other real estate owned, net
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372 | 316 | 879 | 723 | ||||||||||||
Amortization of intangibles
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173 | 203 | 520 | 618 | ||||||||||||
Conversion expenses
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25 | 909 | 25 | 1,751 | ||||||||||||
FDIC insurance
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102 | 21 | 583 | 998 | ||||||||||||
Loan collection expenses
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189 | 471 | 1,042 | 841 | ||||||||||||
Other expenses
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818 | 895 | 2,493 | 3,062 | ||||||||||||
7,904 | 9,537 | 24,564 | 28,560 | |||||||||||||
Income before income taxes
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3,789 | 2,733 | 11,304 | 6,836 | ||||||||||||
Provision for income taxes
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1,378 | 920 | 3,971 | 2,323 | ||||||||||||
Net income
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$ | 2,411 | $ | 1,813 | $ | 7,333 | $ | 4,513 | ||||||||
Discount on redemption of preferred stock
|
904 | - | 904 | - | ||||||||||||
Preferred stock dividends and accretion
|
(297 | ) | (305 | ) | (908 | ) | (916 | ) | ||||||||
Net income available to common stockholders
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$ | 3,018 | $ | 1,508 | $ | 7,329 | $ | 3,597 | ||||||||
Net income per share:
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||||||||||||||||
Basic
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$ | 0.38 | $ | 0.19 | $ | 0.92 | $ | 0.45 | ||||||||
Diluted
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0.37 | 0.19 | 0.90 | 0.45 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income
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$ | 2,411 | $ | 1,813 | $ | 7,333 | $ | 4,513 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Unrealized gains arising during the period
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1,290 | 3,279 | 3,082 | 11,921 | ||||||||||||
Reclassification of realized amount
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(273 | ) | - | (273 | ) | (18 | ) | |||||||||
Net change in unrealized gain (loss) on securities
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1,017 | 3,279 | 2,809 | 11,903 | ||||||||||||
Less tax impact
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346 | 1,115 | 955 | 4,047 | ||||||||||||
Other comprehensive income:
|
671 | 2,164 | 1,854 | 7,856 | ||||||||||||
Comprehensive income
|
$ | 3,082 | $ | 3,977 | $ | 9,187 | $ | 12,369 | ||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$ | 7,333 | $ | 4,513 | ||||
Adjustments to reconcile net income to net cash from operating activities
|
||||||||
Depreciation
|
1,090 | 1,113 | ||||||
Provision for loan losses
|
2,960 | 3,150 | ||||||
Amortization (accretion), net
|
(1,345 | ) | (1,063 | ) | ||||
OREO writedowns (gains on sales), net
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(125 | ) | 292 | |||||
Stock compensation expense
|
134 | 77 | ||||||
Loans originated for sale
|
(10,157 | ) | (12,595 | ) | ||||
Secondary market loans sold
|
10,429 | 13,832 | ||||||
Secondary market income
|
(202 | ) | (248 | ) | ||||
Gain on sale of buildings
|
- | (171 | ) | |||||
Gain on disposition of securities
|
(273 | ) | (18 | ) | ||||
Changes in :
|
||||||||
Interest receivable
|
42 | 245 | ||||||
Other assets
|
3,337 | 1,161 | ||||||
Interest payable
|
(162 | ) | (117 | ) | ||||
Other liabilities
|
590 | (56 | ) | |||||
Net cash from operating activities
|
13,651 | 10,115 | ||||||
Cash flows from investing activities
|
||||||||
Purchases of securities available for sale
|
(73,771 | ) | (110,447 | ) | ||||
Proceeds from the sale of securities available for sale
|
1,000 | 2,017 | ||||||
Proceeds from maturities and calls of securities available for sale
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52,212 | 94,293 | ||||||
Redemption of FRB and FHLB stock, (net of purchases)
|
1,032 | 1,558 | ||||||
Net change in loans
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(3,634 | ) | 30,839 | |||||
Purchases of premises and equipment, net
|
(730 | ) | (624 | ) | ||||
Proceeds from sales of other real estate acquired through foreclosure
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3,090 | 1,907 | ||||||
Net cash from investing activities
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(20,801 | ) | 19,543 | |||||
Cash flows from financing activities
|
||||||||
Net change in deposits
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21,372 | (47,374 | ) | |||||
Net change in agreements to repurchase securities
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1,125 | (2,492 | ) | |||||
Net change in short-term Federal Home Loan Bank advances
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- | (2,400 | ) | |||||
Net change in federal funds purchased
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- | 145 | ||||||
Repayment of Federal Home Loan Bank advances
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(10,042 | ) | (131 | ) | ||||
Repayment of other borrowed funds
|
(1,557 | ) | (1,532 | ) | ||||
Redemption of Preferred stock
|
(9,237 | ) | - | |||||
Proceeds from stock option exercises
|
35 | - | ||||||
Common stock dividends paid
|
(874 | ) | - | |||||
Preferred stock dividends paid
|
(834 | ) | (1,112 | ) | ||||
Net cash from financing activities
|
(12 | ) | (54,896 | ) | ||||
Net change in cash and cash equivalents
|
(7,162 | ) | (25,238 | ) | ||||
Cash and cash equivalents at beginning of period
|
82,888 | 122,248 | ||||||
Cash and cash equivalents at end of period
|
$ | 75,726 | $ | 97,010 |
2012
|
2011
|
|||||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during period for interest
|
$ | 5,171 | $ | 6,535 | ||||
Cash (received) paid during period for income taxes
|
1,414 | 2,805 | ||||||
Loans transferred to real estate acquired through foreclosure
|
3,154 | 8,601 | ||||||
September 30, 2012
|
||||||||||||||
Year
|
Total
|
Net Income
|
||||||||||||
Subsidiary
|
Location
|
Acquired
|
Assets
|
Qtr
|
YTD
|
|||||||||
Citizens Deposit Bank & Trust
|
Vanceburg, Kentucky
|
1991
|
$ | 376,916 | $ | 1,279 | $ | 3,676 | ||||||
Premier Bank, Inc.
|
Huntington, West Virginia
|
1998
|
748,939 | 1,655 | 5,201 | |||||||||
Parent and Intercompany Eliminations
|
7,845 | (523 | ) | (1,544 | ) | |||||||||
Consolidated Total
|
$ | 1,133,700 | $ | 2,411 | $ | 7,333 |
2012
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$ | 38,790 | $ | 2,352 | $ | - | $ | 41,142 | ||||||||
U. S. sponsored agency CMO’s - residential
|
217,905 | 6,299 | (161 | ) | 224,043 | |||||||||||
Total mortgage-backed securities of government sponsored agencies
|
256,695 | 8,651 | (161 | ) | 265,185 | |||||||||||
U. S. government sponsored agency securities
|
22,067 | 206 | - | 22,273 | ||||||||||||
Obligations of states and political subdivisions
|
7,991 | 485 | - | 8,476 | ||||||||||||
Other securities
|
3,618 | 1,296 | (73 | ) | 4,841 | |||||||||||
Total available for sale
|
$ | 290,371 | $ | 10,638 | $ | (234 | ) | $ | 300,775 |
2011
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$ | 38,403 | $ | 1,856 | $ | (4 | ) | $ | 40,255 | |||||||
U. S. sponsored agency CMO’s - residential
|
200,835 | 4,933 | (30 | ) | 205,738 | |||||||||||
Total mortgage-backed securities of government sponsored agencies
|
239,238 | 6,789 | (34 | ) | 245,993 | |||||||||||
U. S. government sponsored agency securities
|
18,114 | 58 | (31 | ) | 18,141 | |||||||||||
Obligations of states and political subdivisions
|
9,193 | 457 | - | 9,650 | ||||||||||||
Other securities
|
4,338 | 440 | (83 | ) | 4,695 | |||||||||||
Total available for sale
|
$ | 270,883 | $ | 7,744 | $ | (148 | ) | $ | 278,479 |
Amortized
Cost
|
Fair
Value
|
|||||||
Available for sale
|
||||||||
Due in one year or less
|
$ | 794 | $ | 725 | ||||
Due after one year through five years
|
10,349 | 10,691 | ||||||
Due after five years through ten years
|
19,483 | 19,866 | ||||||
Due after ten years
|
1,958 | 2,745 | ||||||
Corporate preferred securities
|
1,092 | 1,563 | ||||||
Mortgage-backed securities of government sponsored agencies
|
256,695 | 265,185 | ||||||
Total available for sale
|
$ | 290,371 | $ | 300,775 | ||||
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 sponsored agency CMO – residential
|
$ | 24,014 | $ | (161 | ) | $ | - | $ | - | $ | 24,014 | $ | (161 | ) | ||||||||||
Other securities
|
- | - | 4 | (73 | ) | 4 | (73 | ) | ||||||||||||||||
Total temporarily impaired
|
$ | 24,014 | $ | (161 | ) | $ | 4 | $ | (73 | ) | $ | 24,018 | $ | (234 | ) |
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
|
$ | 7,080 | $ | (31 | ) | $ | - | $ | - | $ | 7,080 | $ | (31 | ) | ||||||||||
U.S sponsored agency MBS – residential
|
2,544 | (4 | ) | - | - | 2,544 | (4 | ) | ||||||||||||||||
U.S sponsored agency CMO – residential
|
3,941 | (30 | ) | - | - | 3,941 | (30 | ) | ||||||||||||||||
Other securities
|
370 | (83 | ) | - | - | 370 | (83 | ) | ||||||||||||||||
Total temporarily impaired
|
$ | 13,935 | $ | (148 | ) | $ | - | $ | - | $ | 13,935 | $ | (148 | ) |
2012
|
2011
|
|||||||
Residential real estate
|
$ | 218,631 | $ | 221,756 | ||||
Multifamily real estate
|
29,776 | 34,335 | ||||||
Commercial real estate:
|
||||||||
Owner occupied
|
97,286 | 101,864 | ||||||
Non owner occupied
|
172,417 | 166,540 | ||||||
Commercial and industrial
|
72,276 | 76,960 | ||||||
Consumer
|
28,827 | 30,090 | ||||||
All other
|
73,275 | 59,378 | ||||||
$ | 692,488 | $ | 690,923 |
Loan Class
|
Balance
Dec 31, 2011
|
Provision for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Sept 30, 2012
|
|||||||||||||||
Residential real estate
|
$ | 2,134 | $ | 422 | $ | 223 | $ | 44 | $ | 2,377 | ||||||||||
Multifamily real estate
|
284 | 92 | - | - | 376 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
918 | (172 | ) | 15 | 272 | 1,003 | ||||||||||||||
Non owner occupied
|
2,381 | (236 | ) | 318 | 3 | 1,830 | ||||||||||||||
Commercial and industrial
|
1,880 | 1,585 | 1,216 | 2 | 2,251 | |||||||||||||||
Consumer
|
298 | 87 | 186 | 77 | 276 | |||||||||||||||
All other
|
1,900 | 1,182 | 527 | 87 | 2,642 | |||||||||||||||
Total
|
$ | 9,795 | $ | 2,960 | $ | 2,485 | $ | 485 | $ | 10,755 |
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, 2012
|
Provision for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Sept 30, 2012
|
|||||||||||||||
Residential real estate
|
$ | 2,268 | $ | 201 | $ | 104 | $ | 12 | $ | 2,377 | ||||||||||
Multifamily real estate
|
427 | (51 | ) | - | - | 376 | ||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
979 | (248 | ) | - | 272 | 1,003 | ||||||||||||||
Non owner occupied
|
2,306 | (199 | ) | 277 | - | 1,830 | ||||||||||||||
Commercial and industrial
|
1,984 | 490 | 224 | 1 | 2,251 | |||||||||||||||
Consumer
|
310 | (11 | ) | 47 | 24 | 276 | ||||||||||||||
All other
|
1,588 | 1,078 | 53 | 29 | 2,642 | |||||||||||||||
Total
|
$ | 9,862 | $ | 1,260 | $ | 705 | $ | 338 | $ | 10,755 |
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 |
2012
|
2011
|
|||||||
Residential real estate
|
$ | 206 | $ | 282 | ||||
Multifamily real estate
|
3,258 | 3,708 | ||||||
Commercial real estate
|
||||||||
Owner occupied
|
274 | 1,934 | ||||||
Non owner occupied
|
6,036 | 6,427 | ||||||
Commercial and industrial
|
528 | 583 | ||||||
All other
|
1,243 | 1,925 | ||||||
Total carrying amount
|
$ | 11,545 | $ | 14,859 | ||||
Carrying amount, net of allowance
|
$ | 11,045 | $ | 14,859 |
September 30, 2012
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$ | 3,154 | $ | 2,838 | $ | 1,128 | ||||||
Multifamily real estate
|
5,446 | 4,381 | 622 | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
6,387 | 5,544 | 862 | |||||||||
Non owner occupied
|
12,816 | 9,233 | 202 | |||||||||
Commercial and industrial
|
11,733 | 10,314 | 18 | |||||||||
Consumer
|
114 | 104 | - | |||||||||
All other
|
4,803 | 2,033 | - | |||||||||
Total
|
$ | 44,453 | $ | 34,447 | $ | 2,832 | ||||||
December 31, 2011
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$ | 4,479 | $ | 4,111 | $ | 1,216 | ||||||
Multifamily real estate
|
13,118 | 11,139 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
9,970 | 8,260 | 851 | |||||||||
Non owner occupied
|
12,938 | 9,835 | 1,596 | |||||||||
Commercial and industrial
|
4,756 | 3,227 | 814 | |||||||||
Consumer
|
246 | 237 | 50 | |||||||||
All other
|
9,198 | 5,545 | - | |||||||||
Total
|
$ | 54,705 | $ | 42,354 | $ | 4,527 | ||||||
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
|
$ | 218,631 | $ | 6,965 | $ | 3,182 | $ | 10,147 | $ | 208,484 | ||||||||||
Multifamily real estate
|
29,776 | - | 5,003 | 5,003 | 24,773 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
97,286 | 2,334 | 1,561 | 3,895 | 93,391 | |||||||||||||||
Non owner occupied
|
172,417 | 237 | 4,359 | 4,596 | 167,821 | |||||||||||||||
Commercial and industrial
|
72,276 | 884 | 5,118 | 6,002 | 66,274 | |||||||||||||||
Consumer
|
28,827 | 510 | 44 | 554 | 28,273 | |||||||||||||||
All other
|
73,275 | 100 | 2,030 | 2,130 | 71,145 | |||||||||||||||
Total
|
$ | 692,488 | $ | 11,030 | $ | 21,297 | $ | 32,327 | $ | 660,161 |
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
|
$ | 221,756 | $ | 6,729 | $ | 3,635 | $ | 10,364 | $ | 211,392 | ||||||||||
Multifamily real estate
|
34,335 | 3,249 | 8,892 | 12,141 | 22,194 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
101,864 | 8,081 | 3,981 | 12,062 | 89,802 | |||||||||||||||
Non owner occupied
|
166,540 | 2,444 | 6,065 | 8,509 | 158,031 | |||||||||||||||
Commercial and industrial
|
76,960 | 1,714 | 3,153 | 4,867 | 72,093 | |||||||||||||||
Consumer
|
30,090 | 497 | 233 | 730 | 29,360 | |||||||||||||||
All other
|
59,378 | 222 | 5,532 | 5,754 | 53,624 | |||||||||||||||
Total
|
$ | 690,923 | $ | 22,936 | $ | 31,491 | $ | 54,427 | $ | 636,496 |
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
|
$ | 701 | $ | 1,676 | $ | - | $ | 2,377 | $ | 8,921 | $ | 209,504 | $ | 206 | $ | 218,631 | ||||||||||||||||
Multifamily real estate
|
- | 376 | - | 376 | 921 | 25,597 | 3,258 | 29,776 | ||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
112 | 891 | - | 1,003 | 7,084 | 89,928 | 274 | 97,286 | ||||||||||||||||||||||||
Non-owner occupied
|
362 | 1,468 | - | 1,830 | 4,745 | 161,636 | 6,036 | 172,417 | ||||||||||||||||||||||||
Commercial and industrial
|
1,574 | 677 | - | 2,251 | 11,259 | 60,489 | 528 | 72,276 | ||||||||||||||||||||||||
Consumer
|
36 | 240 | - | 276 | 36 | 28,791 | - | 28,827 | ||||||||||||||||||||||||
All other
|
132 | 2,010 | 500 | 2,642 | 4,296 | 67,736 | 1,243 | 73,275 | ||||||||||||||||||||||||
Total
|
$ | 2,917 | $ | 7,338 | $ | 500 | $ | 10,755 | $ | 37,262 | $ | 643,681 | $ | 11,545 | $ | 692,488 |
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
|
$ | 451 | $ | 1,683 | $ | - | $ | 2,134 | $ | 9,795 | $ | 211,679 | $ | 282 | $ | 221,756 | ||||||||||||||||
Multifamily real estate
|
- | 284 | - | 284 | 8,594 | 22,033 | 3,708 | 34,335 | ||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
138 | 780 | - | 918 | 8,663 | 91,267 | 1,934 | 101,864 | ||||||||||||||||||||||||
Non-owner occupied
|
922 | 1,459 | - | 2,381 | 5,147 | 154,966 | 6,427 | 166,540 | ||||||||||||||||||||||||
Commercial and industrial
|
894 | 986 | - | 1,880 | 3,636 | 72,741 | 583 | 76,960 | ||||||||||||||||||||||||
Consumer
|
37 | 261 | - | 298 | 37 | 30,053 | - | 30,090 | ||||||||||||||||||||||||
All other
|
605 | 1,295 | - | 1,900 | 8,372 | 49,081 | 1,925 | 59,378 | ||||||||||||||||||||||||
Total
|
$ | 3,047 | $ | 6,748 | $ | - | $ | 9,795 | $ | 44,244 | $ | 631,820 | $ | 14,859 | $ | 690,923 |
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 5,328 | $ | 5,124 | $ | - | ||||||
Multifamily real estate
|
5,954 | 4,179 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
8,096 | 6,736 | - | |||||||||
Non owner occupied
|
13,407 | 9,995 | - | |||||||||
Commercial and industrial
|
3,748 | 2,563 | - | |||||||||
All other
|
6,404 | 3,769 | - | |||||||||
42,937 | 32,366 | - | ||||||||||
With an allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 4,025 | $ | 4,003 | $ | 701 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
622 | 622 | 112 | |||||||||
Non owner occupied
|
806 | 786 | 362 | |||||||||
Commercial and industrial
|
9,438 | 9,224 | 1,574 | |||||||||
Consumer
|
36 | 36 | 36 | |||||||||
All other
|
1,947 | 1,770 | 632 | |||||||||
16,874 | 16,441 | 3,417 | ||||||||||
Total
|
$ | 59,811 | $ | 48,807 | $ | 3,417 | ||||||
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 5,602 | $ | 5,329 | $ | - | ||||||
Multifamily real estate
|
15,513 | 12,302 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
10,939 | 9,291 | - | |||||||||
Non owner occupied
|
12,296 | 9,383 | - | |||||||||
Commercial and industrial
|
3,392 | 2,287 | - | |||||||||
All other
|
8,957 | 5,306 | - | |||||||||
56,699 | 43,898 | - | ||||||||||
With an allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 4,803 | $ | 4,748 | $ | 451 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,384 | 1,306 | 138 | |||||||||
Non owner occupied
|
2,240 | 2,191 | 922 | |||||||||
Commercial and industrial
|
2,242 | 1,932 | 894 | |||||||||
Consumer
|
37 | 37 | 37 | |||||||||
All other
|
4,992 | 4,991 | 605 | |||||||||
15,698 | 15,205 | 3,047 | ||||||||||
Total
|
$ | 72,397 | $ | 59,103 | $ | 3,047 | ||||||
Nine months ended Sept 30, 2012
|
Nine months ended Sept 30, 2011
|
|||||||||||||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
Residential real estate
|
$ | 9,905 | $ | 410 | $ | 383 | $ | 265 | $ | 8 | $ | 4 | ||||||||||||
Multifamily real estate
|
6,546 | 1,387 | 1,389 | 7,459 | 202 | 194 | ||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner occupied
|
8,298 | 981 | 984 | 13,167 | 1,070 | 1,073 | ||||||||||||||||||
Non-owner occupied
|
11,305 | 66 | 73 | 11,377 | 13 | 14 | ||||||||||||||||||
Commercial and industrial
|
9,738 | 397 | 378 | 7,941 | 214 | 209 | ||||||||||||||||||
Consumer
|
36 | 2 | 2 | 44 | 6 | 6 | ||||||||||||||||||
All other
|
7,307 | 852 | 842 | 12,119 | 83 | 82 | ||||||||||||||||||
Total
|
$ | 53,135 | $ | 4,095 | $ | 4,051 | $ | 52,372 | $ | 1,596 | $ | 1,582 |
Three months ended Sept 30, 2012
|
Three months ended Sept 30, 2011
|
|||||||||||||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
Residential real estate
|
$ | 9,646 | $ | 93 | $ | 79 | $ | 266 | $ | 5 | $ | 1 | ||||||||||||
Multifamily real estate
|
4,493 | 37 | 48 | 8,698 | 185 | 177 | ||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner occupied
|
7,425 | 43 | 61 | 14,545 | 580 | 582 | ||||||||||||||||||
Non-owner occupied
|
11,008 | 11 | 22 | 11,549 | - | - | ||||||||||||||||||
Commercial and industrial
|
11,710 | 156 | 144 | 7,502 | 25 | 18 | ||||||||||||||||||
Consumer
|
36 | 1 | 1 | 48 | 4 | 4 | ||||||||||||||||||
All other
|
6,031 | 658 | 660 | 11,495 | 58 | 56 | ||||||||||||||||||
Total
|
$ | 50,349 | $ | 999 | $ | 1,015 | $ | 54,103 | $ | 857 | $ | 838 |
September 30, 2012
|
TDR’s on Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$ | 309 | $ | 1,075 | $ | 1,384 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
4,308 | - | 4,308 | |||||||||
Non owner occupied
|
2,888 | 2,103 | 4,991 | |||||||||
Commercial and industrial
|
2 | 2,586 | 2,588 | |||||||||
All other
|
- | 2,205 | 2,205 | |||||||||
Total
|
$ | 7,507 | $ | 7,969 | $ | 15,476 | ||||||
December 31, 2011
|
TDR’s on Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$ | 59 | $ | 1,371 | $ | 1,430 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
4,541 | - | 4,541 | |||||||||
Non owner occupied
|
3,135 | 1,641 | 4,776 | |||||||||
Commercial and industrial
|
42 | 897 | 939 | |||||||||
Consumer
|
11 | 1 | 12 | |||||||||
All other
|
- | 2,041 | 2,041 | |||||||||
Total
|
$ | 7,788 | $ | 5,951 | $ | 13,739 | ||||||
Three months ended Sept. 30, 2012
|
Nine months ended Sept. 30, 2012
|
|||||||||||||||||||||||
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
|
||||||||||||||||||
Commercial real estate
|
||||||||||||||||||||||||
Non owner occupied
|
1 | $ | 519 | $ | 519 | 1 | $ | 519 | $ | 519 | ||||||||||||||
Commercial and industrial
|
- | - | - | 1 | 1,809 | 1,809 | ||||||||||||||||||
All other
|
- | - | - | 1 | 190 | 190 | ||||||||||||||||||
Total
|
1 | $ | 519 | $ | 519 | 3 | $ | 2,518 | $ | 2,518 |
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$ | 198,940 | $ | 6,753 | $ | 12,847 | $ | 91 | $ | 218,631 | ||||||||||
Multifamily real estate
|
20,144 | 2,531 | 7,101 | - | 29,776 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
80,164 | 4,188 | 12,934 | - | 97,286 | |||||||||||||||
Non-owner occupied
|
152,875 | 4,612 | 14,930 | - | 172,417 | |||||||||||||||
Commercial and industrial
|
56,731 | 3,551 | 11,984 | 10 | 72,276 | |||||||||||||||
Consumer
|
28,630 | 111 | 50 | 36 | 28,827 | |||||||||||||||
All other
|
62,576 | 718 | 8,302 | 1,679 | 73,275 | |||||||||||||||
Total
|
$ | 600,060 | $ | 22,464 | $ | 68,148 | $ | 1,816 | $ | 692,488 |
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$ | 198,865 | $ | 8,105 | $ | 14,731 | $ | 55 | $ | 221,756 | ||||||||||
Multifamily real estate
|
16,798 | 2,218 | 15,319 | - | 34,335 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
79,753 | 5,377 | 16,600 | 134 | 101,864 | |||||||||||||||
Non-owner occupied
|
146,305 | 4,883 | 15,352 | - | 166,540 | |||||||||||||||
Commercial and industrial
|
58,158 | 8,675 | 10,095 | 32 | 76,960 | |||||||||||||||
Consumer
|
29,753 | 198 | 102 | 37 | 30,090 | |||||||||||||||
All other
|
43,485 | 1,052 | 14,064 | 777 | 59,378 | |||||||||||||||
Total
|
$ | 573,117 | $ | 30,508 | $ | 86,263 | $ | 1,035 | $ | 690,923 |
Sept 30,
2012
|
December 31,
2011
|
Regulatory
Minimum
Requirements
|
To Be Considered
Well Capitalized
|
|||||||||||||
Tier I Capital (to Risk-Weighted Assets)
|
15.9 | % | 16.0 | % | 4.0 | % | 6.0 | % | ||||||||
Total Capital (to Risk-Weighted Assets)
|
17.2 | % | 17.2 | % | 8.0 | % | 10.0 | % | ||||||||
Tier I Capital (to Average Assets)
|
9.8 | % | 10.0 | % | 4.0 | % | 5.0 | % |
2012
|
2011
|
2010
|
||||||||||
Risk-free interest rate
|
2.31 | % | 3.58 | % | 3.65 | % | ||||||
Expected option life (yrs)
|
10.00 | 10.00 | 10.00 | |||||||||
Expected stock price volatility
|
34.93 | % | 30.01 | % | 24.67 | % | ||||||
Dividend yield
|
2.68 | % | 4.03 | % | 4.94 | % | ||||||
Weighted average fair value of options granted during the year
|
$ | 2.34 | $ | 1.63 | $ | 1.41 |
- - - - - - 2012 - - - - - - | - - - - - - 2011 - - - - - - | |||||||||||||||
Weighted
Average
Exercise
|
Weighted
Average
Exercise
|
|||||||||||||||
Options
|
Price
|
Options
|
Price
|
|||||||||||||
Outstanding at beginning of year
|
350,949 | $ | 9.69 | 255,649 | $ | 10.77 | ||||||||||
Grants
|
105,700 | 7.47 | 102,000 | 6.95 | ||||||||||||
Exercises
|
(10,200 | ) | 6.93 | - | - | |||||||||||
Forfeitures or expired
|
(25,733 | ) | 8.07 | (4,432 | ) | 8.16 | ||||||||||
Outstanding at September 30,
|
420,716 | $ | 9.30 | 353,217 | $ | 9.70 | ||||||||||
Exercisable at September 30,
|
248,996 | 208,995 | ||||||||||||||
Weighted average remaining life of options outstanding
|
6.5 | 6.7 | ||||||||||||||
Weighted average fair value of options granted during the year
|
$ | 2.34 | $ | 1.63 |
- - - - - - - - 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 | 298,583 | $ | 7.52 | $ | 490 | 126,863 | 5.7 | $ | 7.68 | $ | 189 | |||||||||||
$10.01 to $12.50 | 25,833 | 11.62 | - | 25,833 | 2.3 | 11.62 | - | |||||||||||||||
$12.51 to $15.00 | 68,800 | 13.47 | - | 68,800 | 4.9 | 13.47 | - | |||||||||||||||
$15.01 to $17.50 | 27,500 | 16.00 | - | 27,500 | 3.4 | 16.00 | - | |||||||||||||||
Outstanding - Sept 30, 2012
|
420,716 | 9.30 | $ | 490 | 248,996 | 5.9 | 10.61 | $ | 189 | |||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Basic earnings per share
|
||||||||||||||||
Income available to common stockholders
|
$ | 3,018 | $ | 1,508 | $ | 7,329 | $ | 3,597 | ||||||||
Weighted average common shares outstanding
|
7,937,814 | 7,937,143 | 7,937,368 | 7,937,143 | ||||||||||||
Earnings per share
|
$ | 0.38 | $ | 0.19 | $ | 0.92 | $ | 0.45 | ||||||||
Diluted earnings per share
|
||||||||||||||||
Income available to common stockholders
|
$ | 3,018 | $ | 1,508 | $ | 7,329 | $ | 3,597 | ||||||||
Weighted average common shares outstanding
|
7,937,814 | 7,937,143 | 7,937,368 | 7,937,143 | ||||||||||||
Add dilutive effects of potential additional common stock
|
279,358 | 105,421 | 191,615 | 141,011 | ||||||||||||
Weighted average common and dilutive potential
common shares outstanding
|
8,217,172 | 8,042,564 | 8,128,983 | 8,078,155 | ||||||||||||
Earnings per share assuming dilution
|
$ | 0.37 | $ | 0.19 | $ | 0.90 | $ | 0.45 |
Fair Value Measurements at
September 30, 2012 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
|
$ | 41,142 | $ | - | $ | 41,142 | $ | - | ||||||||
U. S. agency CMO’s - residential
|
224,043 | - | 224,043 | - | ||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
265,185 | - | 265,185 | - | ||||||||||||
U. S. government sponsored agency securities
|
22,273 | - | 22,273 | - | ||||||||||||
Obligations of states and political subdivisions
|
8,476 | - | 8,336 | 140 | ||||||||||||
Other securities
|
4,841 | - | 4,841 | - | ||||||||||||
Total available for sale
|
$ | 300,775 | $ | - | $ | 300,635 | $ | 140 |
Fair Value Measurements at
December 31, 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
|
$ | 40,255 | $ | - | $ | 40,255 | $ | - | ||||||||
U. S. agency CMO’s - residential
|
205,738 | - | 205,738 | - | ||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
245,993 | - | 245,993 | - | ||||||||||||
U. S. government sponsored agency securities
|
18,141 | - | 18,141 | - | ||||||||||||
Obligations of states and political subdivisions
|
9,650 | - | 9,510 | 140 | ||||||||||||
Other securities
|
4,695 | - | 4,695 | - | ||||||||||||
Total available for sale
|
$ | 278,479 | $ | - | $ | 278,339 | $ | 140 |
Fair Value Measurements at September 30, 2012 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$ | 70,897 | $ | 70,897 | $ | - | $ | - | $ | 70,897 | ||||||||||
Federal funds sold
|
4,829 | 4,829 | - | - | 4,829 | |||||||||||||||
Securities available for sale
|
300,775 | - | 300,635 | 140 | 300,775 | |||||||||||||||
Loans, net
|
682,233 | - | - | 675,556 | 675,556 | |||||||||||||||
Federal Home Loan Bank stock
|
4,184 | n/a | n/a | n/a | n/a | |||||||||||||||
Interest receivable
|
3,455 | - | 880 | 2,575 | 3,455 | |||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$ | (946,367 | ) | $ | (580,880 | ) | $ | (369,622 | ) | $ | - | $ | (950,502 | ) | ||||||
Securities sold under agreements to repurchase
|
(24,330 | ) | - | (24,330 | ) | - | (24,330 | ) | ||||||||||||
Other borrowed funds
|
(16,573 | ) | - | (16,545 | ) | - | (16,545 | ) | ||||||||||||
Interest payable
|
(550 | ) | (8 | ) | (542 | ) | - | (550 | ) | |||||||||||
Carrying
Amount
|
Fair
Value
|
|||||||
Financial assets
|
||||||||
Cash and due from banks
|
$ | 72,056 | $ | 72,056 | ||||
Federal funds sold
|
10,832 | 10,832 | ||||||
Securities available for sale
|
278,479 | 278,479 | ||||||
Loans held for sale
|
70 | 70 | ||||||
Loans, net
|
681,128 | 675,616 | ||||||
Federal Home Loan Bank stock
|
5,216 | n/a | ||||||
Interest receivable
|
3,497 | 3,497 | ||||||
Financial liabilities
|
||||||||
Deposits
|
$ | (925,078 | ) | $ | (929,796 | ) | ||
Securities sold under agreements to repurchase
|
(23,205 | ) | (23,205 | ) | ||||
Federal Home Loan Bank advances
|
(10,083 | ) | (10,141 | ) | ||||
Other borrowed funds
|
(18,130 | ) | (18,101 | ) | ||||
Interest payable
|
(712 | ) | (712 | ) | ||||
Fair Value Measurements at September 30, 2012 Using
|
||||||||||||||||
Sept 30, 2012
|
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
|
$ | 3,302 | $ | - | $ | - | $ | 3,302 | ||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
510 | - | - | 510 | ||||||||||||
Non-owner Occupied
|
424 | - | - | 424 | ||||||||||||
Commercial and Industrial
|
7,650 | - | - | 7,650 | ||||||||||||
All Other
|
1,138 | - | - | 1,138 | ||||||||||||
Total impaired loans
|
13,024 | $ | - | $ | - | $ | 13,024 | |||||||||
Other real estate owned:
|
||||||||||||||||
Residential Real Estate
|
$ | 209 | $ | - | $ | - | $ | 209 | ||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
100 | - | - | 100 | ||||||||||||
Non-owner Occupied
|
2,931 | - | - | 2,931 | ||||||||||||
All Other
|
224 | - | - | 224 | ||||||||||||
Total OREO
|
$ | 3,464 | $ | - | $ | - | $ | 3,464 |
Fair Value Measurements at December 31, 2011 Using
|
||||||||||||||||
Dec 31, 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
|
$ | 4,297 | $ | - | $ | - | $ | 4,297 | ||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
1,168 | - | - | 1,168 | ||||||||||||
Non-owner Occupied
|
1,269 | - | - | 1,269 | ||||||||||||
Commercial and Industrial
|
1,038 | - | - | 1,038 | ||||||||||||
All Other
|
4,386 | - | - | 4,386 | ||||||||||||
Total impaired loans
|
12,158 | $ | - | $ | - | $ | 12,158 | |||||||||
Other real estate owned:
|
||||||||||||||||
Residential Real Estate
|
$ | 1,608 | $ | - | $ | - | $ | 1,608 | ||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
701 | - | - | 701 | ||||||||||||
Non-owner Occupied
|
2,931 | - | - | 2,931 | ||||||||||||
Commercial and Industrial
|
55 | - | - | 55 | ||||||||||||
All Other
|
8,788 | - | - | 8,788 | ||||||||||||
Total OREO
|
$ | 14,083 | $ | - | $ | - | $ | 14,083 |
September 30, 2012
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Residential Real Estate
|
$ | 3,302 |
sales comparison
|
adjustment for differences between the comparable sales
|
0.8%-49.9%(7.5%) | ||||
Commercial Real Estate
|
|||||||||
Owner Occupied
|
510 |
sales comparison
|
adjustment for limited salability of specialized property
|
40.0%-70.0%(44.1%) | |||||
Non-owner Occupied
|
424 |
sales comparison
|
adjustment for differences between the comparable sales
|
59.0%-59.0%(59.0%) | |||||
Commercial and Industrial
|
7,650 |
sales comparison
|
adjustment for differences between the comparable sales
|
0.0%-43.6%(39.2%) | |||||
All Other
|
1,138 |
sales comparison
|
adjustment for percentage of completion of construction
|
35.0%-91.4%(49.2%) | |||||
Total impaired loans
|
13,024 | ||||||||
Other real estate owned:
|
|||||||||
Residential Real Estate
|
$ | 209 |
sales comparison
|
adjustment for differences between the comparable sales
|
26.1%-47.8%(35.5%) | ||||
Commercial Real Estate
|
|||||||||
Owner Occupied
|
100 |
sales comparison
|
adjustment for estimated realizable value
|
17.9%-17.9%(17.9%) | |||||
Non-owner Occupied
|
2,931 |
sales comparison
|
adjustment for differences between the comparable sales
|
0.0%-82.7%(17.5%) | |||||
All Other
|
224 |
sales comparison
|
adjustment for estimated realizable value
|
0.0%-49.7%(23.8%) | |||||
Total OREO
|
$ | 3,464 |
PREMIER FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Nine Months Ended Sept 30, 2012
|
Nine Months Ended Sept 30, 2011
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and other
|
$ | 59,933 | $ | 107 | 0.24 | % | $ | 75,784 | $ | 121 | 0.21 | % | ||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Taxable
|
295,234 | 5,360 | 2.42 | 280,716 | 5,973 | 2.84 | ||||||||||||||||||
Tax-exempt
|
7,585 | 162 | 4.31 | 8,264 | 180 | 4.40 | ||||||||||||||||||
Total investment securities
|
302,819 | 5,522 | 2.47 | 288,980 | 6,153 | 2.88 | ||||||||||||||||||
Total loans
|
679,617 | 33,123 | 6.49 | 708,618 | 33,479 | 6.32 | ||||||||||||||||||
Total interest-earning assets
|
1,042,369 | 38,752 | 4.96 | % | 1,073,382 | 39,753 | 4.96 | % | ||||||||||||||||
Allowance for loan losses
|
(10,034 | ) | (10,803 | ) | ||||||||||||||||||||
Cash and due from banks
|
28,310 | 27,825 | ||||||||||||||||||||||
Other assets
|
74,523 | 77,294 | ||||||||||||||||||||||
Total assets
|
$ | 1,135,168 | $ | 1,167,698 | ||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 747,294 | 4,325 | 0.77 | $ | 760,002 | 5,504 | 0.97 | ||||||||||||||||
Short-term borrowings
|
20,431 | 70 | 0.46 | 24,827 | 124 | 0.67 | ||||||||||||||||||
FHLB advances
|
2,496 | 41 | 2.19 | 10,589 | 142 | 1.79 | ||||||||||||||||||
Other borrowings
|
17,255 | 573 | 4.42 | 19,382 | 648 | 4.47 | ||||||||||||||||||
Total interest-bearing liabilities
|
787,476 | 5,009 | 0.85 | % | 814,800 | 6,418 | 1.05 | % | ||||||||||||||||
Non-interest bearing deposits
|
195,959 | 212,977 | ||||||||||||||||||||||
Other liabilities
|
4,147 | 2,919 | ||||||||||||||||||||||
Shareholders’ equity
|
147,586 | 137,002 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 1,135,168 | $ | 1,167,698 | ||||||||||||||||||||
Net interest earnings
|
$ | 33,743 | $ | 33,335 | ||||||||||||||||||||
Net interest spread
|
4.11 | % | 3.91 | % | ||||||||||||||||||||
Net interest margin
|
4.32 | % | 4.16 | % | ||||||||||||||||||||
PREMIER FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Three Months Ended Sept 30, 2012
|
Three Months Ended Sept 30, 2011
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and other
|
$ | 48,392 | $ | 31 | 0.25 | % | $ | 55,150 | $ | 28 | 0.20 | % | ||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Taxable
|
302,362 | 1,740 | 2.30 | 282,028 | 1,916 | 2.72 | ||||||||||||||||||
Tax-exempt
|
7,462 | 50 | 4.06 | 8,158 | 58 | 4.31 | ||||||||||||||||||
Total investment securities
|
309,824 | 1,790 | 2.34 | 290,186 | 1,974 | 2.76 | ||||||||||||||||||
Total loans
|
684,420 | 10,759 | 6.24 | 701,112 | 11,252 | 6.37 | ||||||||||||||||||
Total interest-earning assets
|
1,042,636 | 12,580 | 4.80 | % | 1,046,448 | 13,254 | 5.04 | % | ||||||||||||||||
Allowance for loan losses
|
(10,024 | ) | (11,881 | ) | ||||||||||||||||||||
Cash and due from banks
|
27,560 | 28,592 | ||||||||||||||||||||||
Other assets
|
72,396 | 74,776 | ||||||||||||||||||||||
Total assets
|
$ | 1,132,568 | $ | 1,137,935 | ||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 750,257 | 1,353 | 0.72 | $ | 746,786 | 1,746 | 0.93 | ||||||||||||||||
Short-term borrowings
|
18,666 | 22 | 0.47 | 23,485 | 37 | 0.63 | ||||||||||||||||||
FHLB advances
|
1 | - | 0.00 | 10,455 | 48 | 1.82 | ||||||||||||||||||
Other borrowings
|
16,806 | 188 | 4.44 | 18,874 | 209 | 4.39 | ||||||||||||||||||
Total interest-bearing liabilities
|
785,730 | 1,563 | 0.79 | % | 799,600 | 2,040 | 1.01 | % | ||||||||||||||||
Non-interest bearing deposits
|
196,143 | 195,426 | ||||||||||||||||||||||
Other liabilities
|
4,072 | 1,817 | ||||||||||||||||||||||
Shareholders’ equity
|
146,623 | 141,092 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 1,132,568 | $ | 1,137,935 | ||||||||||||||||||||
Net interest earnings
|
$ | 11,017 | $ | 11,214 | ||||||||||||||||||||
Net interest spread
|
4.01 | % | 4.03 | % | ||||||||||||||||||||
Net interest margin
|
4.21 | % | 4.27 | % | ||||||||||||||||||||
(In Thousands)
|
||||||||
2012
|
2011
|
|||||||
Non-accrual loans
|
$ | 34,447 | $ | 42,354 | ||||
Accruing loans which are contractually past due 90 days or more
|
2,832 | 4,527 | ||||||
Accruing restructured loans
|
7,969 | 5,951 | ||||||
Total non-performing loans
|
45,248 | 52,832 | ||||||
Other real estate acquired through foreclosure (OREO)
|
14,831 | 14,642 | ||||||
Total non-performing assets
|
$ | 60,079 | $ | 67,474 | ||||
Non-performing loans as a percentage of total loans
|
6.53 | % | 7.65 | % | ||||
Non-performing assets as a percentage of total assets
|
5.30 | % | 6.00 | % |
NON-PERFORMING ASSETS AT ACQUIRED SUBSIDIARY BANKS
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||||||
Face Value
|
Discounted Net Carrying Value
|
Face Value
|
Discounted Net Carrying Value
|
|||||||||||||
Non-performing Assets
|
||||||||||||||||
Non-accrual loans
|
$ | 23,230 | $ | 17,971 | $ | 37,201 | $ | 29,824 | ||||||||
Loans 90+ days past due
|
2,085 | 2,025 | 4,087 | 3,997 | ||||||||||||
Restructured loans
|
2,110 | 2,090 | - | - | ||||||||||||
Other real estate owned
|
9,255 | 8,675 | 10,978 | 10,622 | ||||||||||||
Total non-performing assets
|
$ | 36,680 | $ | 30,761 | $ | 52,266 | $ | 44,443 | ||||||||
(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 $300.8 million of securities at fair value as of September 30, 2012.
|
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.
|
FAIR VALUE, Asset Quantitative Information (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Impaired Loans [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 13,024 |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 3,302 |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 49.90% |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 0.80% |
Impaired Loans [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 7.50% |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 510 |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 70.00% |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 40.00% |
Impaired Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 44.10% |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 424 |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 59.00% |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 59.00% |
Impaired Loans [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 59.00% |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 7,650 |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 43.60% |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 0.00% |
Impaired Loans [Member] | Commercial and Industrial [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 39.20% |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 1,138 |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 91.40% |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 35.00% |
Impaired Loans [Member] | All Other [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 49.20% |
Other Real Estate Owned [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 3,464 |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 209 |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 47.80% |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 26.10% |
Other Real Estate Owned [Member] | Residential Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 35.50% |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 100 |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 17.90% |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 17.90% |
Other Real Estate Owned [Member] | Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 17.90% |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 2,931 |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 82.70% |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 0.00% |
Other Real Estate Owned [Member] | Non Owner Occupied Commercial Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 17.50% |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Asset fair value | 224 |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member] | Maximum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 49.70% |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member] | Minimum [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 0.00% |
Other Real Estate Owned [Member] | All Other [Member] | Sales Comparison [Member] | Weighted Average [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Comparability of sales (in hundredths) | 23.80% |
SECURITIES, By Contractual Maturity (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
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Dec. 31, 2011
|
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Amortized cost of securities by contractual maturity [Abstract] | |||
Due in one year or less | $ 794 | ||
Due after one year through five years | 10,349 | ||
Due after five years through ten years | 19,483 | ||
Due after ten years | 1,958 | ||
Corporate preferred securities | 1,092 | ||
Mortgage-backed securities of government sponsored agencies | 256,695 | ||
Available for sale, Amortized Cost | 290,371 | ||
Fair value of securities by contractual maturity [Abstract] | |||
Due in one year or less | 725 | ||
Due after one year through five years | 10,691 | ||
Due after five years through ten years | 19,866 | ||
Due after ten years | 2,745 | ||
Corporate preferred securities | 1,563 | ||
Mortgage backed securities of government sponsored agencies | 265,185 | ||
Available for sale, Fair Value | 300,775 | 278,479 | |
Proceeds from the sale of securities available for sale | 1,000 | 2,017 | |
Gain on sale of securities | $ 273 | $ 18 |
LOANS
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Sep. 30, 2012
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LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | NOTE 3 - LOANS Major classifications of loans at September 30, 2012 and December 31, 2011 are summarized as follows:
Activity in the allowance for loan losses by portfolio segment for the nine months ending September 30, 2012 was 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, 2012 was as follows:
Activity in the allowance for loan losses by portfolio segment for the three months ending September 30, 2011 was as follows:
Purchased Loans As a result of the acquisition of 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, 2012 and December 31, 2011.
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 may 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 below. For those purchased loans disclosed above, the Company increased the allowance for loan losses by $500,000 during the nine months ended September 30, 2012 and decreased the allowance for loan losses by $190,000 during the nine months ended September 30, 2011. Past Due and Non-performing Loans The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2012 and December 31 2011. The recorded investment in a non-accrual loan may be less than the principal owed on the loan due to discounts applied to the carrying value of the loan at time of its acquisition and/or 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, 2012 by class of loans:
The following table presents the aging of the recorded investment in past due loans as of December 31, 2011 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, 2012:
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, 2011:
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, 2012. The table includes $11,545,000 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, 2011. The table includes $14,859,000 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, 2012 and 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, 2012 and 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, 2012 and December 31, 2011:
At September 30, 2012, $118,000 in specific reserves was allocated to loans that had restructured terms. At December 31, 2011, $238,000 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, 2012:
The troubled debt restructurings described above increased the allowance for loan losses by $16,000 during the nine month period ending September 30, 2012 and decreased the allowance for loan losses by $12,000 during the three month period ending September 30, 2012. During the three months and nine months ended September 30, 2012 there were no TDR's for which there was a payment default within twelve months following the modification. During the three months and nine months ended September 30, 2011 there were no TDR's for which there as a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. 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 non-homogeneous loans, such as commercial, commercial real estate, multifamily residential and commercial purpose loans secured residential real estate, on a monthly basis. For consumer loans, including consumer loans secured by residential real estate, the analysis involves monitoring the performing status of the loan. At the time such loans become past due by 30 days or more, the Company evaluates the loan to determine if a change in risk category is warranted. 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, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
As of December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
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