x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the period ended September 30, 2011
|
|
- or -
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Pennsylvania
|
74-2705050
|
|
(State or Other Jurisdiction of Incorporation
|
(I.R.S. Employer Identification No.)
|
|
or Organization)
|
3 Penns Trail, Newtown, Pennsylvania
|
18940
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Large accelerated filer o
|
Accelerated filer o
|
|
Non-accelerated filer o
|
Smaller reporting company x
|
|
(Do not check if a smaller reporting company)
|
Class
|
Outstanding
|
$.10 par value common stock
|
2,826,397 shares
|
PART I-CONSOLIDATED FINANCIAL INFORMATION
|
|||
Item 1.
|
3
|
||
Item 2.
|
27
|
||
Item 3.
|
36
|
||
Item 4.
|
36
|
||
PART II-OTHER INFORMATION
|
|||
Item 1.
|
37
|
||
Item 1A.
|
37
|
||
Item 2.
|
37
|
||
Item 3.
|
37
|
||
Item 4.
|
37
|
||
Item 5.
|
37
|
||
Item 6.
|
37
|
||
38
|
|||
Exhibits
|
|||
31.1
|
|||
31.2
|
|||
32.
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
September 30, 2011
|
December 31, 2010
|
|||||||
(in thousands)
|
||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 14,475 | $ | 7,437 | ||||
Investment securities
|
120,483 | 127,490 | ||||||
Loans receivable, net
|
504,036 | 501,528 | ||||||
Loans receivable held for sale
|
1,696 | 130 | ||||||
Federal Home Loan Bank stock—at cost
|
8,060 | 9,401 | ||||||
Accrued interest receivable
|
2,580 | 2,738 | ||||||
Premises and equipment, net
|
6,658 | 6,797 | ||||||
Goodwill
|
4,324 | 4,324 | ||||||
Bank-owned life insurance
|
18,349 | 17,868 | ||||||
Other assets
|
14,507 | 14,044 | ||||||
TOTAL ASSETS
|
$ | 695,168 | $ | 691,757 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits
|
$ | 551,678 | $ | 550,135 | ||||
Borrowings from the Federal Home Loan Bank
|
59,500 | 61,987 | ||||||
Advances from borrowers for taxes and insurance
|
1,433 | 2,166 | ||||||
Accrued interest payable
|
1,307 | 1,784 | ||||||
Other liabilities
|
3,751 | 2,269 | ||||||
Total liabilities
|
617,669 | 618,341 | ||||||
Stockholders’ equity
|
||||||||
Preferred stock, no par value; 2,000,000 shares authorized at
September 30, 2011 and December 31, 2010, none issued
|
- | - | ||||||
Common stock, $0.10 par value; 10,000,000 shares authorized,
5,290,000 shares issued, 2,824,034 and 2,822,449 shares
outstanding at September 30, 2011 and December 31, 2010,
respectively, net of shares in treasury of 2,465,966 and
2,467,551, respectively.
|
529 | 529 | ||||||
Additional paid-in capital
|
54,104 | 53,964 | ||||||
Unearned ESOP shares
|
(1,126 | ) | (1,217 | ) | ||||
Treasury stock-at cost
|
(51,189 | ) | (51,220 | ) | ||||
Retained earnings
|
72,747 | 70,749 | ||||||
Accumulated other comprehensive income
|
2,434 | 611 | ||||||
Total stockholders’ equity
|
77,499 | 73,416 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 695,168 | $ | 691,757 |
For the three months ended
September 30,
|
For the nine months ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Interest income
|
||||||||||||||||
Loans, including fees
|
$ | 6,667 | $ | 7,020 | $ | 19,946 | $ | 21,472 | ||||||||
Investment securities
|
||||||||||||||||
Fully taxable
|
879 | 1,020 | 2,648 | 3,160 | ||||||||||||
Exempt from federal taxes
|
362 | 310 | 1,080 | 913 | ||||||||||||
Interest-bearing deposits and other
|
- | - | 1 | 2 | ||||||||||||
TOTAL INTEREST INCOME
|
7,908 | 8,350 | 23,675 | 25,547 | ||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
1,430 | 1,757 | 4,328 | 5,593 | ||||||||||||
Borrowings
|
473 | 731 | 1,537 | 2,372 | ||||||||||||
TOTAL INTEREST EXPENSE
|
1,903 | 2,488 | 5,865 | 7,965 | ||||||||||||
NET INTEREST INCOME
|
6,005 | 5,862 | 17,810 | 17,582 | ||||||||||||
Provision for loan losses
|
528 | 1,180 | 2,878 | 2,741 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
|
5,477 | 4,682 | 14,932 | 14,841 | ||||||||||||
Non-interest income
|
||||||||||||||||
Service fees, charges and other operating income
|
298 | 404 | 1,242 | 1,296 | ||||||||||||
Bank-owned life insurance
|
160 | 170 | 481 | 509 | ||||||||||||
Gain on sale of investments
|
- | - | 210 | 7 | ||||||||||||
Gain on sale of loans
|
125 | 353 | 292 | 465 | ||||||||||||
Loss on foreclosed real estate
|
(254 | ) | - | (254 | ) | (137 | ) | |||||||||
TOTAL NON-INTEREST INCOME
|
329 | 927 | 1,971 | 2,140 | ||||||||||||
Non-interest expense
|
||||||||||||||||
Employee compensation and benefits
|
2,584 | 2,269 | 7,952 | 7,636 | ||||||||||||
Occupancy and equipment
|
699 | 774 | 2,253 | 2,256 | ||||||||||||
Professional fees
|
263 | 196 | 1,065 | 680 | ||||||||||||
Marketing and advertising
|
88 | 152 | 257 | 392 | ||||||||||||
FDIC insurance premiums
|
142 | 233 | 526 | 686 | ||||||||||||
Other operating
|
636 | 603 | 1,945 | 1,760 | ||||||||||||
TOTAL NON-INTEREST EXPENSE
|
4,412 | 4,227 | 13,998 | 13,410 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
1,394 | 1,382 | 2,905 | 3,571 | ||||||||||||
Income taxes
|
314 | 373 | 508 | 878 | ||||||||||||
NET INCOME
|
$ | 1,080 | $ | 1,009 | $ | 2,397 | $ | 2,693 | ||||||||
Earnings per share—basic
|
$ | 0.40 | $ | 0.38 | $ | 0.89 | $ | 1.01 | ||||||||
Earnings per share—diluted
|
$ | 0.40 | $ | 0.38 | $ | 0.89 | $ | 1.01 | ||||||||
Dividends paid per share
|
$ | 0.05 | $ | 0.19 | $ | 0.15 | $ | 0.58 | ||||||||
For the nine months ended
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 2,397 | $ | 2,693 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Amortization and impairment adjustment of mortgage loan servicing rights
|
296 | 418 | ||||||
Premiums and discounts on investment securities, net
|
87 | 59 | ||||||
Premiums and discounts on mortgage-backed securities, net
|
128 | 63 | ||||||
Deferred loan origination costs, net
|
122 | 114 | ||||||
Provision for loan losses
|
2,878 | 2,741 | ||||||
Depreciation of premises and equipment
|
647 | 645 | ||||||
Increase in value of bank-owned life insurance
|
(481 | ) | (509 | ) | ||||
Stock based compensation
|
262 | 231 | ||||||
Proceeds from sale of loans originated for sale
|
15,748 | 27,326 | ||||||
Origination of loans held for sale
|
(17,156 | ) | (27,087 | ) | ||||
Loss on foreclosed real estate
|
254 | 137 | ||||||
Gain on sale of:
|
||||||||
Investments
|
(210 | ) | (7 | ) | ||||
Loans held for sale
|
(292 | ) | (465 | ) | ||||
(Increase) decrease in:
|
||||||||
Accrued interest receivable
|
158 | 118 | ||||||
Other assets
|
900 | 411 | ||||||
Increase (decrease) in:
|
||||||||
Accrued interest payable
|
(477 | ) | (1,021 | ) | ||||
Other liabilities
|
533 | (1,426 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
5,794 | 4,441 | ||||||
INVESTING ACTIVITIES
|
||||||||
Loan originations
|
(76,036 | ) | (59,604 | ) | ||||
Loan principal payments
|
68,123 | 65,106 | ||||||
Proceeds from sale of foreclosed real estate
|
724 | 799 | ||||||
Proceeds from maturities of investment securities available for sale
|
3,860 | 590 | ||||||
Principal repayments on mortgage-backed securities held to maturity
|
482 | 462 | ||||||
Principal repayments on mortgage-backed securities available for sale
|
20,990 | 20,649 | ||||||
Proceeds from sale of investment securities available for sale
|
3,534 | 60 | ||||||
Proceeds from sale of mortgage-backed securities available for sale
|
1,518 | - | ||||||
Purchase of investment securities available for sale
|
(4,112 | ) | (8,681 | ) | ||||
Purchase of mortgage-backed securities available for sale
|
(16,596 | ) | (13,995 | ) | ||||
Purchase of premises and equipment
|
(508 | ) | (1,910 | ) | ||||
Redemption of Federal Home Loan Bank stock
|
1,341 | - | ||||||
NET CASH PROVIDED BY INVESTING ACTIVITIES
|
3,320 | 3,476 |
For the nine months ended
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Net increase (decrease) in customer deposits
|
1,543 | (154 | ) | |||||
Proceeds of long-term FHLB borrowings
|
6,573 | 12,884 | ||||||
Repayment of long-term FHLB borrowings
|
(19,944 | ) | (24,454 | ) | ||||
Net increase in short term FHLB borrowings
|
10,884 | - | ||||||
Net decrease in advances from borrowers for taxes and insurance
|
(733 | ) | (746 | ) | ||||
Exercise of stock options
|
- | 177 | ||||||
Tax benefit arising from stock compensation
|
- | 17 | ||||||
Common stock dividends paid
|
(399 | ) | (1,526 | ) | ||||
NET CASH USED BY FINANCING ACTIVITIES
|
(2,076 | ) | (13,802 | ) | ||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
|
7,038 | (5,885 | ) | |||||
Cash and cash equivalents at beginning of period
|
7,437 | 12,801 | ||||||
Cash and cash equivalents at end of period
|
$ | 14,475 | $ | 6,916 | ||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid for:
|
||||||||
Interest on deposits and borrowings
|
$ | 6,342 | $ | 8,986 | ||||
Income taxes
|
$ | 300 | $ | 1,462 | ||||
Non-cash transactions:
|
||||||||
Capitalization of mortgage servicing rights
|
$ | 136 | $ | 231 | ||||
Transfers from loans to foreclosed real estate
|
$ | 2,405 | $ | 1,793 | ||||
Securities available for sale purchased not settled
|
$ | - | $ | 175 | ||||
September 30, 2011
|
||||||||||||
Before tax amount
|
Tax (expense)
|
Net of tax amount
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gains on securities
|
||||||||||||
Unrealized holding gains arising during period
|
$ | 1,524 | $ | (518 | ) | $ | 1,006 | |||||
Pension plan benefit adjustment related to actuarial losses
|
30 | (11 | ) | 19 | ||||||||
Other comprehensive income, net
|
$ | 1,554 | $ | (529 | ) | $ | 1,025 |
September 30, 2010
|
||||||||||||
Before tax amount
|
Tax (expense)
|
Net of tax amount
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gains on securities
|
||||||||||||
Unrealized holding gains arising during period
|
$ | 1,126 | $ | (381 | ) | $ | 745 | |||||
Pension plan benefit adjustment related to actuarial losses
|
42 | (14 | ) | 28 | ||||||||
Other comprehensive income, net
|
$ | 1,168 | $ | (395 | ) | $ | 773 |
September 30, 2011
|
||||||||||||
Before tax amount
|
Tax (expense)
|
Net of tax amount
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gains on securities
|
||||||||||||
Unrealized holding gains arising during period
|
$ | 2,884 | $ | (980 | ) | $ | 1,904 | |||||
Reclassification adjustment for gains realized in net income
|
(210 | ) | 71 | (139 | ) | |||||||
Pension plan benefit adjustment related to prior service costs and actuarial losses
|
88 | (30 | ) | 58 | ||||||||
Other comprehensive income, net
|
$ | 2,762 | $ | (939 | ) | $ | 1,823 |
September 30, 2010
|
||||||||||||
Before tax amount
|
Tax (expense)
|
Net of tax amount
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gains on securities
|
||||||||||||
Unrealized holding gains arising during period
|
$ | 1,720 | $ | (586 | ) | $ | 1,134 | |||||
Reclassification adjustment for gains realized in net income
|
(7 | ) | 2 | (5 | ) | |||||||
Pension plan benefit adjustment related to actuarial losses
|
117 | (39 | ) | 78 | ||||||||
Other comprehensive income, net
|
$ | 1,830 | $ | (623 | ) | $ | 1,207 |
Three months ended September 30, 2011
|
||||||||||||
Weighted
|
||||||||||||
average
|
||||||||||||
Income
|
shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
Amount
|
||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 1,080 | 2,704,350 | $ | 0.40 | |||||||
Effect of dilutive securities
|
||||||||||||
Stock options and grants
|
- | 818 | - | |||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders plus effect of dilutive securities
|
$ | 1,080 | 2,705,168 | $ | 0.40 |
Nine months ended September 30, 2011
|
||||||||||||
Weighted
|
||||||||||||
average
|
||||||||||||
Income
|
shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
Amount
|
||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 2,397 | 2,700,845 | $ | 0.89 | |||||||
Effect of dilutive securities
|
||||||||||||
Stock options and grants
|
- | 716 | - | |||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders plus effect of dilutive securities
|
$ | 2,397 | 2,701,561 | $ | 0.89 |
Three months ended September 30, 2010
|
||||||||||||
Weighted
|
||||||||||||
average
|
||||||||||||
Income
|
shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
Amount
|
||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 1,009 | $ | 2,687,439 | $ | 0.38 | ||||||
Effect of dilutive securities
|
||||||||||||
Stock options and grants
|
- | - | - | |||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders plus effect of dilutive securities
|
$ | 1,009 | $ | 2,687,439 | $ | 0.38 |
Nine months ended September 30, 2010
|
||||||||||||
Weighted
|
||||||||||||
average
|
||||||||||||
Income
|
shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
Amount
|
||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 2,693 | $ | 2,678,920 | $ | 1.01 | ||||||
Effect of dilutive securities
|
||||||||||||
Stock options and grants
|
- | - | - | |||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders plus effect of dilutive securities
|
$ | 2,693 | $ | 2,678,920 | $ | 1.01 |
September 30, 2011
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | 5,992 | $ | 58 | $ | - | $ | 6,050 | ||||||||
State and political subdivisions
|
47,521 | 3,885 | (2 | ) | 51,404 | |||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
48,973 | 1,806 | - | 50,779 | ||||||||||||
Residential mortgage-backed securities privately issued
|
9,367 | 208 | (15 | ) | 9,560 | |||||||||||
Total investment securities available for sale
|
111,853 | 5,957 | (17 | ) | 117,793 | |||||||||||
Held to maturity
|
||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
2,690 | 335 | - | 3,025 | ||||||||||||
Total investment securities
|
$ | 114,543 | $ | 6,292 | $ | (17 | ) | $ | 120,818 |
December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | 6,000 | $ | 59 | $ | - | $ | 6,059 | ||||||||
Corporate debt securities
|
3,340 | 223 | - | 3,563 | ||||||||||||
State and political subdivisions
|
47,348 | 1,120 | (260 | ) | 48,208 | |||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
50,942 | 1,950 | (6 | ) | 52,886 | |||||||||||
Residential mortgage-backed securities privately issued
|
13,425 | 224 | (44 | ) | 13,605 | |||||||||||
Total investment securities available for sale
|
121,055 | 3,576 | (310 | ) | 124,321 | |||||||||||
Held to maturity
|
||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
3,169 | 341 | - | 3,510 | ||||||||||||
Total investment securities
|
$ | 124,224 | $ | 3,917 | $ | (310 | ) | $ | 127,831 |
September 30, 2011
|
||||||||||||||||
Available for sale
|
Held to maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
cost
|
value
|
cost
|
value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities
|
||||||||||||||||
Due in one year or less
|
$ | 424 | $ | 431 | $ | - | $ | - | ||||||||
Due after one year through five years
|
10,405 | 10,845 | - | - | ||||||||||||
Due after five years through 10 years
|
26,821 | 28,758 | - | - | ||||||||||||
Due after ten years
|
15,863 | 17,420 | - | - | ||||||||||||
53,513 | 57,454 | - | - | |||||||||||||
Mortgage-backed securities
|
58,340 | 60,339 | 2,690 | 3,025 | ||||||||||||
Total investment and mortgage-backed securities
|
$ | 111,853 | $ | 117,793 | $ | 2,690 | $ | 3,025 |
Number
|
Less than
|
12 months
|
Total
|
|||||||||||||||||||||||||
of |
12 months
|
or longer
|
||||||||||||||||||||||||||
Description of securities
|
securities
|
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
|||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
State and political subdivisions
|
1 | $ | - | $ | - | $ | 173 | $ | (2 | ) | $ | 173 | $ | (2 | ) | |||||||||||||
Residential mortgage-backed
securities issued by
quasi-governmental agencies
|
1 | 435 | (1 | ) | - | - | 435 | (1 | ) | |||||||||||||||||||
Residential mortgage-backed
securities privately issued
|
3 | 3,985 | (14 | ) | - | - | 3,985 | (14 | ) | |||||||||||||||||||
Total temporarily impaired securities
|
5 | $ | 4,420 | $ | (15 | ) | $ | 173 | $ | (2 | ) | $ | 4,593 | $ | (17 | ) |
Number
|
Less than
|
12 months
|
Total
|
|||||||||||||||||||||||||
of |
12 months
|
or longer
|
||||||||||||||||||||||||||
Description of securities
|
securities
|
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
|||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
State and political subdivisions
|
17 | $ | 14,210 | $ | (260 | ) | $ | - | $ | - | $ | 14,210 | $ | (260 | ) | |||||||||||||
Residential mortgage-backed
securities issued by
quasi-governmental agencies
|
1 | 3,027 | (6 | ) | - | - | 3,027 | (6 | ) | |||||||||||||||||||
Residential mortgage-backed
securities privately issued
|
3 | 7,048 | (44 | ) | - | - | 7,048 | (44 | ) | |||||||||||||||||||
Total temporarily impaired securities
|
21 | $ | 24,285 | $ | (310 | ) | $ | - | $ | - | $ | 24,285 | $ | (310 | ) |
September 30, 2011
|
December 31, 2010
|
|||||||
(in thousands)
|
||||||||
Held for investment:
|
||||||||
First mortgage loans
|
||||||||
Secured by one-to four-family residences
|
$ | 278,325 | $ | 269,077 | ||||
Secured by non-residential properties or non—owner occupied
residential properties
|
145,099 | 137,307 | ||||||
Construction loans
|
18,636 | 18,799 | ||||||
Total first mortgage loans
|
442,060 | 425,183 | ||||||
Other loans
|
||||||||
Commercial-business, real estate secured
|
18,454 | 26,603 | ||||||
Commercial-business, non-real estate secured
|
4,587 | 5,575 | ||||||
Home equity and second mortgage
|
45,478 | 49,430 | ||||||
Other consumer
|
2,056 | 2,407 | ||||||
Total other loans
|
70,575 | 84,015 | ||||||
Total loans
|
512,635 | 509,198 | ||||||
Net deferred loan origination costs and unamortized premiums
|
987 | 658 | ||||||
Less allowance for loan losses
|
(9,586 | ) | (8,328 | ) | ||||
Total loans receivable
|
$ | 504,036 | $ | 501,528 | ||||
Held for sale:
|
||||||||
First mortgage loans
|
||||||||
Secured by one-to four-family residences
|
$ | 1,696 | $ | 130 |
Commercial credit exposure-credit risk profile by internally assigned grade
|
||||||||||||||||||||
September 30, 2011
|
||||||||||||||||||||
Pass
|
Special
mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Secured by non-residential properties or
non—owner occupied residential properties
|
$ | 125,786 | $ | 12,920 | $ | 6,393 | $ | - | $ | 145,099 | ||||||||||
Construction loans
|
4,445 | 5,099 | 9,092 | - | 18,636 | |||||||||||||||
Commercial-business, real estate secured
|
7,159 | 102 | 11,193 | - | 18,454 | |||||||||||||||
Commercial-business, non-real estate
secured
|
4,426 | - | 161 | - | 4,587 | |||||||||||||||
Total
|
$ | 141,816 | $ | 18,121 | $ | 26,839 | $ | - | $ | 186,776 |
Commercial credit exposure-credit risk profile by internally assigned grade
|
||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||
Pass
|
Special
mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Secured by non-residential properties or
non—owner occupied residential properties
|
$ | 108,484 | $ | 19,299 | $ | 9,524 | $ | - | $ | 137,307 | ||||||||||
Construction loans
|
3,482 | 6,269 | 9,048 | - | 18,799 | |||||||||||||||
Commercial-business, real estate secured
|
15,778 | 1,007 | 9,818 | - | 26,603 | |||||||||||||||
Commercial-business, non-real estate
secured
|
5,531 | - | - | 44 | 5,575 | |||||||||||||||
Total
|
$ | 133,275 | $ | 26,575 | $ | 28,390 | $ | 44 | $ | 188,284 |
Mortgage and consumer credit exposure-credit risk profile by payment activity
|
||||||||||||
September 30, 2011
|
||||||||||||
Performing
|
Non-performing
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Secured by one-to four-family residences
|
$ | 273,181 | $ | 5,144 | $ | 278,325 | ||||||
Home equity and second mortgage
|
45,202 | 276 | 45,478 | |||||||||
Other
|
2,056 | - | 2,056 | |||||||||
Total
|
$ | 320,439 | $ | 5,420 | $ | 325,859 |
Mortgage and consumer credit exposure-credit risk profile by payment activity
|
||||||||||||
December 31, 2010
|
||||||||||||
Performing
|
Non-performing
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Secured by one-to four-family residences
|
$ | 265,459 | $ | 3,618 | $ | 269,077 | ||||||
Home equity and second mortgage
|
48,018 | 1,412 | 49,430 | |||||||||
Other
|
2,404 | 3 | 2,407 | |||||||||
Total
|
$ | 315,881 | $ | 5,033 | $ | 320,914 |
September 30, 2011
|
December 31, 2010
|
|||||||
(in thousands)
|
||||||||
Secured by one-to four-family residences
|
$ | 5,144 | $ | 3,618 | ||||
Secured by non-residential properties or non—owner occupied residential properties
|
1,214 | 4,993 | ||||||
Construction loans
|
5,707 | 4,307 | ||||||
Commercial-business, real estate secured
|
4,601 | 4,601 | ||||||
Commercial-business, non-real estate secured
|
161 | 44 | ||||||
Home equity and second mortgage
|
276 | 1,412 | ||||||
Other consumer
|
- | 3 | ||||||
Total non-performing loans
|
$ | 17,103 | $ | 18,978 | ||||
Total loans past due 90 days as to interest or principal and accruing interest
|
$ | - | $ | - |
September 30, 2011
|
||||||||||||||||||||
Recorded investment
|
Unpaid principal balance
|
Related allowance
|
Average recorded investment
|
Interest income recognized
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Secured by one-to four- family
residences
|
$ | 1,252 | $ | 1,252 | $ | 217 | $ | 626 | $ | - | ||||||||||
Secured by non-residential
properties or non-owner
occupied residential properties
|
- | - | - | 1,091 | - | |||||||||||||||
Construction loans
|
5,707 | 5,707 | 2,777 | 5,252 | - | |||||||||||||||
Commercial-business, real estate
secured
|
2,605 | 2,605 | 846 | 2,605 | - | |||||||||||||||
Commercial-business, non-real
estate secured
|
161 | 161 | 80 | 86 | - | |||||||||||||||
With no allowance recorded:
|
||||||||||||||||||||
Secured by one-to four- family
residences
|
1,874 | 1,874 | - | 1,276 | - | |||||||||||||||
Secured by non-residential
properties or non-owner
occupied residential properties
|
910 | 910 | - | 1,648 | - | |||||||||||||||
Construction loans
|
- | - | - | 210 | - | |||||||||||||||
Commercial-business, real estate
secured
|
1,996 | 1,996 | - | 1,996 | - | |||||||||||||||
Total
|
$ | 14,505 | $ | 14,505 | $ | 3,920 | $ | 14,790 | $ | - |
December 31, 2010
|
||||||||||||||||||||
Recorded investment
|
Unpaid principal balance
|
Related allowance
|
Average recorded investment
|
Interest income recognized
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Secured by non-residential
properties or non-owner
occupied residential properties
|
$ | 1,855 | $ | 1,855 | $ | 218 | $ | 925 | $ | - | ||||||||||
Construction loans
|
3,887 | 3,887 | 1,627 | 3,887 | - | |||||||||||||||
Commercial-business, real estate
secured
|
2,605 | 2,605 | 373 | 1,563 | - | |||||||||||||||
Commercial-business, non-real
estate secured
|
44 | 44 | 44 | 18 | - | |||||||||||||||
With no allowance recorded:
|
||||||||||||||||||||
Secured by non-residential
properties or non-owner
occupied residential properties
|
2,830 | 2,830 | - | 3,479 | - | |||||||||||||||
Construction loans
|
420 | 420 | - | 492 | - | |||||||||||||||
Commercial-business, real estate
secured
|
1,996 | 1,996 | - | 4,717 | - | |||||||||||||||
Commercial-business, non-real
estate secured
|
- | - | - | 22 | - | |||||||||||||||
Total
|
$ | 13,637 | $ | 13,637 | $ | 2,262 | $ | 15,103 | $ | - |
Current
|
30-59 Days past due
|
60-89 Days past due
|
Loans past due 90 days or more
|
Total past due
|
Total loans
|
Recorded investment over 90 days and accruing interest
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Secured by one-to four- family
residences
|
$ | 274,269 | $ | 244 | $ | - | $ | 3,812 | $ | 4,056 | $ | 278,325 | $ | - | ||||||||||||||
Secured by non-residential
properties or non—owner
occupied residential properties
|
143,885 | - | - | 1,214 | 1,214 | 145,099 | - | |||||||||||||||||||||
Construction loans
|
14,749 | - | - | 3,887 | 3,887 | 18,636 | - | |||||||||||||||||||||
Commercial-business, real
estate secured
|
13,853 | - | - | 4,601 | 4,601 | 18,454 | - | |||||||||||||||||||||
Commercial-business, non-
real estate secured
|
4,581 | - | - | 6 | 6 | 4,587 | - | |||||||||||||||||||||
Home equity and second
mortgage
|
45,142 | 27 | 33 | 276 | 336 | 45,478 | - | |||||||||||||||||||||
Other
|
2,044 | 12 | - | - | 12 | 2,056 | - | |||||||||||||||||||||
Total
|
$ | 498,523 | $ | 283 | $ | 33 | $ | 13,796 | $ | 14,112 | $ | 512,635 | $ | - |
Current
|
30-59 Days past due
|
60-89 Days past due
|
Loans past due 90 days or more
|
Total past due
|
Total loans
|
Recorded investment over 90 days and accruing interest
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Secured by one-to four- family
residences
|
$ | 267,885 | $ | 424 | $ | 26 | $ | 742 | $ | 1,192 | $ | 269,077 | $ | - | ||||||||||||||
Secured by non-residential
properties or non—owner
occupied residential properties
|
131,566 | 748 | 754 | 4,239 | 5,741 | 137,307 | - | |||||||||||||||||||||
Construction loans
|
14,492 | - | - | 4,307 | 4,307 | 18,799 | - | |||||||||||||||||||||
Commercial-business, real
estate secured
|
18,877 | 3,125 | - | 4,601 | 7,726 | 26,603 | - | |||||||||||||||||||||
Commercial-business, non-
real estate secured
|
5,531 | - | - | 44 | 44 | 5,575 | - | |||||||||||||||||||||
Home equity and second
mortgage
|
48,285 | 60 | 9 | 1,076 | 1,145 | 49,430 | - | |||||||||||||||||||||
Other
|
2,381 | 13 | 10 | 3 | 26 | 2,407 | - | |||||||||||||||||||||
Total
|
$ | 489,017 | $ | 4,370 | $ | 799 | $ | 15,012 | $ | 20,181 | $ | 509,198 | $ | - |
Balance
January 1,
2011
|
Provision
|
Charge- offs
|
Recoveries
|
Balance
September 30, 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Secured by one-to four- family
residences
|
$ | 1,839 | $ | (10 | ) | $ | (172 | ) | $ | 2 | $ | 1,659 | ||||||||
Secured by non-residential properties
or non—owner occupied
residential properties
|
2,124 | 1,132 | (1,186 | ) | - | $ | 2,070 | |||||||||||||
Construction loans
|
2,479 | 1,148 | - | 1 | $ | 3,628 | ||||||||||||||
Commercial-business, real estate
secured
|
974 | 364 | - | - | $ | 1,338 | ||||||||||||||
Commercial-business, non-real estate
secured
|
77 | 197 | (44 | ) | 6 | $ | 236 | |||||||||||||
Home equity and second mortgage
|
607 | 82 | (221 | ) | $ | 468 | ||||||||||||||
Other consumer
|
16 | 9 | (12 | ) | 6 | $ | 19 | |||||||||||||
Unallocated
|
212 | (44 | ) | - | - | $ | 168 | |||||||||||||
Total
|
$ | 8,328 | $ | 2,878 | $ | (1,635 | ) | $ | 15 | $ | 9,586 |
2010
|
||||
(in thousands)
|
||||
Balance at January 1,
|
$ | 5,215 | ||
Provision charged to income
|
2,741 | |||
Charge-offs:
|
||||
Secured by one-to-four family residence
|
(10 | ) | ||
Secured by non-residential properties or non-owner occupied
|
(174 | ) | ||
Commercial-business, non-real estate secured
|
(146 | ) | ||
Home equity and second mortgage
|
(28 | ) | ||
Recoveries:
|
||||
Other consumer
|
8 | |||
Balance at September 30,
|
$ | 7,606 |
Trouble Debt Restructuring
|
||||||||||||||||||||||||
For the three months ended
September 30, 2011
|
For the nine months ended
September 30, 2011
|
|||||||||||||||||||||||
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post Modification Outstanding Recorded Investment
|
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post Modification Outstanding Recorded Investment
|
|||||||||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||||||||||
Secured by one-to four-family residences
|
2 | $ | 510 | $ | 507 | 2 | $ | 510 | $ | 507 | ||||||||||||||
Total
|
2 | $ | 510 | $ | 507 | 2 | $ | 510 | $ | 507 |
Evaluated for impairment
|
||||||||||||
Allowance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Secured by one-to-four family residences
|
$ | 217 | $ | 1,442 | $ | 1,659 | ||||||
Secured by non-residential properties or non—owner occupied
residential properties
|
- | 2,070 | 2,070 | |||||||||
Construction loans
|
2,777 | 851 | 3,628 | |||||||||
Commercial-business, real estate secured
|
846 | 492 | 1,338 | |||||||||
Commercial-business, non-real estate secured
|
80 | 156 | 236 | |||||||||
Home equity and second mortgage
|
- | 468 | 468 | |||||||||
Other consumer
|
- | 19 | 19 | |||||||||
Unallocated
|
- | 168 | 168 | |||||||||
Total
|
$ | 3,920 | $ | 5,666 | $ | 9,586 |
Evaluated for impairment
|
||||||||||||
Loan balance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Secured by one-to-four family residences
|
$ | 3,126 | $ | 275,199 | $ | 278,325 | ||||||
Secured by non-residential properties or non—owner occupied
residential properties
|
910 | 144,189 | 145,099 | |||||||||
Construction loans
|
5,707 | 12,929 | 18,636 | |||||||||
Commercial-business, real estate secured
|
4,601 | 13,853 | 18,454 | |||||||||
Commercial-business, non-real estate secured
|
161 | 4,426 | 4,587 | |||||||||
Home equity and second mortgage
|
- | 45,478 | 45,478 | |||||||||
Other consumer
|
- | 2,056 | 2,056 | |||||||||
Total
|
$ | 14,505 | $ | 498,130 | $ | 512,635 |
Evaluated for impairment
|
||||||||||||
Allowance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Secured by one-to-four family residences
|
$ | - | $ | 1,839 | $ | 1,839 | ||||||
Secured by non-residential properties or non—owner occupied
residential properties
|
218 | 1,906 | 2,124 | |||||||||
Construction loans
|
1,627 | 852 | 2,479 | |||||||||
Commercial-business, real estate secured
|
373 | 601 | 974 | |||||||||
Commercial-business, non-real estate secured
|
44 | 33 | 77 | |||||||||
Home equity and second mortgage
|
- | 607 | 607 | |||||||||
Other consumer
|
- | 16 | 16 | |||||||||
Unallocated
|
- | 212 | 212 | |||||||||
Total
|
$ | 2,262 | $ | 6,066 | $ | 8,328 |
Evaluated for impairment
|
||||||||||||
Loan balance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Secured by one-to-four family residences
|
$ | - | $ | 269,077 | $ | 269,077 | ||||||
Secured by non-residential properties or non—owner occupied
residential properties
|
4,685 | 132,622 | 137,307 | |||||||||
Construction loans
|
4,307 | 14,492 | 18,799 | |||||||||
Commercial-business, real estate secured
|
4,601 | 22,002 | 26,603 | |||||||||
Commercial-business, non-real estate secured
|
44 | 5,531 | 5,575 | |||||||||
Home equity and second mortgage
|
- | 49,430 | 49,430 | |||||||||
Other consumer
|
- | 2,407 | 2,407 | |||||||||
Total
|
$ | 13,637 | $ | 495,561 | $ | 509,198 |
|
·
|
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
|
·
|
Level 2 inputs are inputs that are observable for the asset or liability, either directly or indirectly.
|
|
·
|
Level 3 inputs are unobservable and contain assumptions of the party assessing the fair value of the asset or liability.
|
At September 30, 2011
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Balance as of September 30, 2011
|
||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Investment securities available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | - | $ | 6,050 | $ | - | $ | 6,050 | ||||||||
State and political subdivisions
|
- | 51,404 | - | 51,404 | ||||||||||||
Residential mortgage-backed securities issued by quasi-
governmental agencies
|
- | 50,779 | - | 50,779 | ||||||||||||
Residential real estate mortgage - backed securities
privately issued
|
- | 9,560 | - | 9,560 | ||||||||||||
Total investment securities available for sale
|
$ | - | $ | 117,793 | $ | - | $ | 117,793 | ||||||||
Liabilities
|
||||||||||||||||
Forward loan sales
|
$ | - | $ | - | $ | 21 | $ | 21 |
At December 31, 2010
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Balance as of December 31, 2010
|
||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Investment securities available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | - | $ | 6,059 | $ | - | $ | 6,059 | ||||||||
Corporate debt securities
|
3,563 | - | 3,563 | |||||||||||||
State and political subdivisions
|
- | 48,208 | - | 48,208 | ||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
- | 52,886 | - | 52,886 | ||||||||||||
Residential real estate mortgage - backed securities privately issued
|
- | 13,605 | - | 13,605 | ||||||||||||
Total investment securities available for sale
|
$ | - | $ | 124,321 | $ | - | $ | 124,321 | ||||||||
Forward loan sales
|
$ | - | $ | - | $ | 3 | $ | 3 | ||||||||
Forward loan sales
|
||||
(in thousands)
|
||||
Beginning balance, January 1, 2011
|
$ | 3 | ||
Total losses— realized/unrealized:
|
||||
Included in earnings
|
(24 | ) | ||
Included in other comprehensive income
|
- | |||
Purchases, issuances, and settlements
|
- | |||
Ending balance, September 30, 2011
|
$ | (21 | ) |
At September 30, 2011
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Balance as of September 30, 2011
|
||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 10,585 | $ | 10,585 | ||||||||
Real estate acquired through foreclosure
|
- | - | 8,909 | 8,909 | ||||||||||||
Mortgage servicing rights
|
- | 718 | - | 718 |
At December 31, 2010
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Balance as of December 31, 2010
|
||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 11,375 | $ | 11,375 | ||||||||
Real estate acquired through foreclosure
|
- | - | 7,482 | 7,482 | ||||||||||||
Mortgage servicing rights
|
- | 878 | - | 878 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Fair value
|
Carrying value
|
Fair value
|
Carrying value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Cash and cash equivalents
|
$ | 14,475 | $ | 14,475 | $ | 7,437 | $ | 7,437 | ||||||||
Investment securities
|
120,818 | 120,483 | 127,831 | 127,490 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Fair value
|
Carrying value
|
Fair value
|
Carrying value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Loans receivable, net
|
$ | 538,052 | $ | 505,732 | $ | 518,324 | $ | 501,658 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Fair value
|
Carrying value
|
Fair value
|
Carrying value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Liabilities
|
||||||||||||||||
Deposits with stated maturities
|
$ | 188,033 | $ | 185,460 | $ | 206,791 | $ | 204,159 | ||||||||
Borrowings with stated maturities
|
60,939 | 59,500 | 63,811 | 61,987 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Fair value
|
Carrying value
|
Fair value
|
Carrying value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Deposits with no stated maturities
|
$ | 366,218 | $ | 366,218 | $ | 345,976 | $ | 345,976 |
2011
|
||||||||||||||||
Number of shares
|
Weighted average exercise price per share
|
Weighted average remaining contractual term (in years)
|
Aggregate intrinsic value ($000)
|
|||||||||||||
Outstanding at January 1, 2011
|
126,257 | $ | 24.04 | |||||||||||||
Options granted
|
- | - |
|
|
||||||||||||
Options exercised
|
- | - |
|
|
||||||||||||
Options forfeited
|
- | - |
|
|
||||||||||||
Options expired
|
2,100 | 25.71 |
|
|
||||||||||||
Outstanding at September 30, 2011
|
124,157 | $ | 24.01 | 2.59 | $ | - | ||||||||||
Options exercisable at September 30, 2011
|
97,263 | $ | 25.19 | 2.19 | $ | - |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Options Exercised
|
||||||||
Aggregate intrinsic value of options exercised
|
$ | - | $ | 76 | ||||
Cash receipts from options exercised
|
- | 177 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Share-based compensation expense
|
||||||||
Director fees
|
$ | 34 | $ | - | ||||
Stock grant expense
|
3 | 4 | ||||||
Stock option expense
|
8 | 13 | ||||||
Employee Stock Ownership Plan ("ESOP") expense
|
53 | 51 | ||||||
Total share-based compensation expense
|
$ | 98 | $ | 68 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Share-based compensation expense
|
||||||||
Director fees
|
$ | 34 | $ | - | ||||
Stock grant expense
|
9 | 12 | ||||||
Stock option expense
|
24 | 39 | ||||||
Employee Stock Ownership Plan ("ESOP") expense
|
168 | 145 | ||||||
Total share-based compensation expense
|
$ | 235 | $ | 196 |
Three months ended September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Components of net periodic benefit cost
|
||||||||
Service cost
|
$ | 141 | $ | 138 | ||||
Interest cost
|
82 | 74 | ||||||
Expected return on plan assets
|
(156 | ) | (141 | ) | ||||
Recognized net actuarial loss
|
30 | 42 | ||||||
Net periodic benefit cost
|
$ | 97 | $ | 113 |
Nine months ended September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Components of net periodic benefit cost
|
||||||||
Service cost
|
$ | 424 | $ | 415 | ||||
Interest cost
|
246 | 222 | ||||||
Expected return on plan assets
|
(466 | ) | (414 | ) | ||||
Recognized net actuarial loss
|
88 | 117 | ||||||
Net periodic benefit cost
|
$ | 292 | $ | 340 |
Non-Performing Assets
|
September 30, 2011
|
December 31, 2010
|
September 30, 2010
|
|||||||||
(in thousands)
|
||||||||||||
Mortgage secured by:
|
||||||||||||
One-to four- family residences
|
$ | 5,144 | $ | 3,618 | $ | 1,470 | ||||||
Non-residential properties or non—owner occupied
residential properties
|
1,214 | 4,993 | 4,239 | |||||||||
Construction loans
|
5,707 | 4,307 | 4,241 | |||||||||
Commercial-business, real estate secured
|
4,601 | 4,601 | 10,467 | |||||||||
Commercial-business, non-real estate secured
|
160 | 44 | 1,128 | |||||||||
Home equity and second mortgage
|
277 | 1,412 | - | |||||||||
Other consumer
|
- | 3 | - | |||||||||
Total non-performing loans
|
17,103 | 18,978 | 21,545 | |||||||||
Real estate owned
|
8,909 | 7,482 | 2,153 | |||||||||
Total non-performing assets
|
$ | 26,012 | $ | 26,460 | $ | 23,698 | ||||||
Total loans 90 days or more past due as to interest or
principal and accruing interest
|
$ | - | $ | - | $ | - | ||||||
Ratio of non-performing loans to gross loans
|
3.32 | % | 3.72 | % | 4.08 | % | ||||||
Ratio of non-performing loans to total assets
|
2.46 | % | 2.74 | % | 3.07 | % | ||||||
Ratio of total non-performing assets to total assets
|
3.74 | % | 3.83 | % | 3.37 | % |
Three Months Ended September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average balance
|
Interest
|
Average yld/cost
|
Average balance
|
Interest
|
Average yld/cost
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable(1)
|
$ | 502,574 | $ | 6,667 | 5.26 | % | $ | 522,181 | $ | 7,020 | 5.33 | % | ||||||||||||
Mortgage-backed securities
|
66,283 | 702 | 4.20 | % | 79,070 | 886 | 4.45 | % | ||||||||||||||||
Investment securities(2)
|
67,662 | 705 | 4.13 | % | 59,077 | 586 | 3.94 | % | ||||||||||||||||
Other interest-earning assets(3)
|
3,237 | - | * | 0.00 | % | 10,122 | - | * | 0.00 | % | ||||||||||||||
Total interest-earning assets
|
639,756 | 8,074 | 5.01 | % | 670,450 | 8,492 | 5.03 | % | ||||||||||||||||
Non interest-earning assets
|
53,907 | 42,716 | ||||||||||||||||||||||
Total assets
|
$ | 693,663 | $ | 713,166 | ||||||||||||||||||||
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ | 555,713 | 1,430 | 1.02 | % | $ | 556,314 | 1,757 | 1.25 | % | ||||||||||||||
Borrowings from the FHLB
|
54,709 | 473 | 3.43 | % | 75,130 | 731 | 3.86 | % | ||||||||||||||||
Total interest-bearing liabilities
|
610,422 | 1,903 | 1.24 | % | 631,444 | 2,488 | 1.56 | % | ||||||||||||||||
Non interest-bearing liabilities
|
7,075 | 7,744 | ||||||||||||||||||||||
Total liabilities
|
617,497 | 639,188 | ||||||||||||||||||||||
Stockholders’ equity
|
76,166 | 73,978 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 693,663 | $ | 713,166 | ||||||||||||||||||||
Net interest income—tax equivalent basis
|
6,171 | 6,004 | ||||||||||||||||||||||
Interest rate spread(4)-tax equivalent basis
|
3.77 | % | 3.47 | % | ||||||||||||||||||||
Net yield on interest-earning assets(5)
—tax equivalent basis
|
3.83 | % | 3.55 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to
average interest-bearing liabilities
|
104.81 | % | 106.18 | % | ||||||||||||||||||||
Less: tax—equivalent interest
adjustments
|
(166 | ) | (142 | ) | ||||||||||||||||||||
Net interest income
|
$ | 6,005 | $ | 5,862 | ||||||||||||||||||||
Interest rate spread(4)
|
3.67 | % | 3.38 | % | ||||||||||||||||||||
Net yield on interest-earning
assets(5)
|
3.72 | % | 3.47 | % |
(1
|
)
|
Non-performing loans have been included in the appropriate average loan balance category, but interest on non-performing loans has not been included for purposes of determining interest income.
|
||
(2
|
)
|
Tax equivalent adjustments to interest on investment securities were $166,000 and $142,000 for the quarter ended September 30, 2011 and 2010, respectively. Tax equivalent interest income is based upon a marginal effective tax rate of 34%.
|
||
(3
|
)
|
Includes interest-bearing deposits in other banks.
|
||
(4
|
)
|
Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
|
||
(5
|
)
|
Net yield on interest-earning assets represents net interest income as a percentage of average interest-earning assets.
|
||
*
|
Is less than $500 for period indicated
|
Three months ended September 30
|
||||||||||||
2011 vs 2010
Increase (decrease) due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
Interest income:
|
||||||||||||
Loans receivable, net
|
$ | (261 | ) | $ | (92 | ) | $ | (353 | ) | |||
Mortgage-backed securities
|
(137 | ) | (47 | ) | (184 | ) | ||||||
Investment securities (1)
|
88 | 31 | 119 | |||||||||
Other interest-earning assets
|
- | - | - | |||||||||
Total interest-earning assets
|
(310 | ) | (108 | ) | (418 | ) | ||||||
Interest expense:
|
||||||||||||
Deposits
|
(2 | ) | (325 | ) | (327 | ) | ||||||
Borrowings from the FHLB
|
(183 | ) | (75 | ) | (258 | ) | ||||||
Total interest-bearing liabilities
|
(185 | ) | (400 | ) | (585 | ) | ||||||
Net change in net interest income
|
$ | (125 | ) | $ | 292 | $ | 167 |
(1
|
)
|
Tax equivalent adjustments to interest on investment securities were $166,000 and $142,000 for the quarters ended September 30, 2011 and 2010, respectively. Tax equivalent interest income is based upon a marginal effective tax rate of 34%.
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average balance
|
Interest
|
Average yld/cost
|
Average balance
|
Interest
|
Average yld/cost
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable(1)
|
$ | 501,052 | $ | 19,946 | 5.32 | % | $ | 524,734 | $ | 21,472 | 5.47 | % | ||||||||||||
Mortgage-backed securities
|
65,541 | 2,068 | 4.22 | % | 80,538 | 2,782 | 4.62 | % | ||||||||||||||||
Investment securities(2)
|
67,714 | 2,155 | 4.25 | % | 56,956 | 1,709 | 4.01 | % | ||||||||||||||||
Other interest-earning assets(3)
|
4,970 | 1 | 0.03 | % | 10,112 | 2 | 0.03 | % | ||||||||||||||||
Total interest-earning assets
|
639,277 | 24,170 | 5.05 | % | 672,340 | 25,965 | 5.16 | % | ||||||||||||||||
Non interest-earning assets
|
49,759 | 42,050 | ||||||||||||||||||||||
Total assets
|
$ | 689,036 | $ | 714,390 | ||||||||||||||||||||
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ | 549,364 | 4,328 | 1.05 | % | $ | 554,259 | 5,593 | 1.35 | % | ||||||||||||||
Borrowings from the FHLB
|
57,688 | 1,537 | 3.56 | % | 78,684 | 2,372 | 4.03 | % | ||||||||||||||||
Total interest-bearing liabilities
|
607,052 | 5,865 | 1.29 | % | 632,943 | 7,965 | 1.68 | % | ||||||||||||||||
Non interest-bearing liabilities
|
6,867 | 8,240 | ||||||||||||||||||||||
Total liabilities
|
613,919 | 641,183 | ||||||||||||||||||||||
Stockholders’ equity
|
75,117 | 73,207 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 689,036 | $ | 714,390 | ||||||||||||||||||||
Net interest income—tax equivalent basis
|
18,305 | 18,000 | ||||||||||||||||||||||
Interest rate spread(4)-tax equivalent basis
|
3.76 | % | 3.48 | % | ||||||||||||||||||||
Net yield on interest-earning assets(5)
—tax equivalent basis
|
3.83 | % | 3.58 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to
average interest-bearing liabilities
|
105.31 | % | 106.22 | % | ||||||||||||||||||||
Less: tax—equivalent interest
adjustments
|
(495 | ) | (418 | ) | ||||||||||||||||||||
Net interest income
|
$ | 17,810 | $ | 17,582 | ||||||||||||||||||||
Interest rate spread(4)
|
3.66 | % | 3.40 | % | ||||||||||||||||||||
Net yield on interest-earning
assets(5)
|
3.72 | % | 3.50 | % |
(1
|
)
|
Non-performing loans have been included in the appropriate average loan balance category, but interest on non-performing loans has not been included for purposes of determining interest income.
|
|
(2
|
)
|
Tax equivalent adjustments to interest on investment securities were $495,000 and $418,000 for the nine months ended September 30, 2011 and 2010, respectively. Tax equivalent interest income is based upon a marginal effective tax rate of 34%.
|
|
(3
|
)
|
Includes interest-bearing deposits in other banks.
|
|
(4
|
)
|
Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
|
|
(5
|
)
|
Net yield on interest-earning assets represents net interest income as a percentage of average interest-earning assets.
|
Nine months ended September 30
|
||||||||||||
2011 vs 2010
Increase (decrease) due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
Interest income:
|
||||||||||||
Loans receivable, net
|
$ | (953 | ) | $ | (573 | ) | $ | (1,526 | ) | |||
Mortgage-backed securities
|
(487 | ) | (227 | ) | (714 | ) | ||||||
Investment securities (1)
|
338 | 108 | 446 | |||||||||
Other interest-earning assets
|
(1 | ) | - | (1 | ) | |||||||
Total interest-earning assets
|
(1,103 | ) | (692 | ) | (1,795 | ) | ||||||
Interest expense:
|
||||||||||||
Deposits
|
(49 | ) | (1,216 | ) | (1,265 | ) | ||||||
Borrowings from the FHLB
|
(582 | ) | (253 | ) | (835 | ) | ||||||
Total interest-bearing liabilities
|
(631 | ) | (1,469 | ) | (2,100 | ) | ||||||
Net change in net interest income
|
$ | (472 | ) | $ | 777 | $ | 305 | |||||
(1
|
)
|
Tax equivalent adjustments to interest on investment securities were $495,000 and $418,000 for the nine months ended September 30, 2011 and 2010, respectively. Tax equivalent interest income is based upon a marginal effective tax rate of 34%.
|
LEGAL PROCEEDINGS
|
||||
Neither the Company nor its subsidiaries are involved in any pending legal proceedings, other than routine legal matters occurring in the ordinary course of business that in the aggregate involve amounts which are believed by management to be immaterial to the consolidated financial condition or results of operations of the Company.
|
||||
RISK FACTORS
|
||||
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this item.
|
||||
UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS
|
||||
None.
|
||||
DEFAULTS UPON SENIOR SECURITIES
|
||||
Not applicable.
|
||||
[REMOVED AND RESERVED]
|
||||
OTHER INFORMATION
|
||||
None.
|
||||
EXHIBITS
|
||||
(a)
|
Exhibits
|
|||
31.1
|
Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|||
31.2
|
Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|||
32.
|
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|||
101.INS
|
XBRL Instance Document
|
|||
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|||
Date:
|
November 14, 2011
|
/s/ Kent C. Lufkin
|
|
Kent C. Lufkin
|
|||
President and CEO
|
|||
(Principal Executive Officer)
|
|||
Date:
|
November 14, 2011
|
/s/ Dennis R. Stewart
|
|
Dennis R. Stewart
|
|||
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial & Accounting Officer)
|
Date:
|
November 14, 2011
|
/s/Kent C. Lufkin
|
|
Kent C. Lufkin
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
Date:
|
November 14, 2011
|
/s/Dennis R. Stewart
|
|
Dennis R. Stewart
|
|||
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial & Accounting Officer)
|
/s/Kent C. Lufkin
|
|||
Date:
|
November 14, 2011
|
Kent C. Lufkin
|
|
President and CEO
|
|||
(Principal Executive Officer)
|
|||
/s/Dennis R. Stewart
|
|||
Date:
|
November 14, 2011
|
Dennis R. Stewart
|
|
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial & Accounting Officer)
|
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Stockholders' equity | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in share) | 2,000,000 | 2,000,000 |
Preferred stock, issued(in share) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued(in shares) | 5,290,000 | 5,290,000 |
Common stock, shares outstanding (shares) | 2,824,034 | 2,822,449 |
Common stock, shares in treasury (in shares) | 2,465,966 | 2,467,551 |
Document And Entity Information (USD $) | 9 Months Ended | ||
---|---|---|---|
Sep. 30, 2011 | Nov. 14, 2011 | Jun. 30, 2010 | |
Entity Registrant Name | TF FINANCIAL CORP | ||
Entity Central Index Key | 0000921051 | ||
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 | $ 40,000,000 | ||
Entity Common Stock, Shares Outstanding | 2,826,397 | ||
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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