x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the period ended March 31, 2012
|
|
- 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
|
2,835,058 shares
|
PART I-CONSOLIDATED FINANCIAL INFORMATION
|
|||
Item 1.
|
3
|
||
Item 2.
|
28
|
||
Item 3.
|
34
|
||
Item 4.
|
35
|
||
PART II-OTHER INFORMATION
|
|||
Item 1.
|
36
|
||
Item 1A.
|
36
|
||
Item 2.
|
36
|
||
Item 3.
|
36
|
||
Item 4.
|
36
|
||
Item 5.
|
36
|
||
Item 6.
|
36
|
||
37
|
|||
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
|
At
|
||||||||
March 31, 2012
|
December 31, 2011
|
|||||||
(in thousands)
|
||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 22,340 | $ | 14,928 | ||||
Investment securities
|
||||||||
Available for sale
|
123,830 | 114,503 | ||||||
Held to maturity (fair value of $2,780 and $2,928 as of
March 31, 2012 and December 31, 2011, respectively)
|
2,440 | 2,588 | ||||||
Loans receivable, net
|
490,492 | 494,125 | ||||||
Loans receivable, held for sale
|
884 | 488 | ||||||
Federal Home Loan Bank stock-at cost
|
7,274 | 7,657 | ||||||
Accrued interest receivable
|
2,502 | 2,610 | ||||||
Premises and equipment, net
|
6,527 | 6,559 | ||||||
Goodwill
|
4,324 | 4,324 | ||||||
Bank owned life insurance
|
18,658 | 18,506 | ||||||
Other assets
|
14,150 | 15,641 | ||||||
TOTAL ASSETS
|
$ | 693,421 | $ | 681,929 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits
|
$ | 562,201 | $ | 551,288 | ||||
Advances from the Federal Home Loan Bank ("FHLB")
|
46,685 | 46,908 | ||||||
Advances from borrowers for taxes and insurance
|
1,905 | 2,322 | ||||||
Accrued interest payable
|
1,629 | 1,375 | ||||||
Other liabilities
|
2,473 | 2,628 | ||||||
Total liabilities
|
614,893 | 604,521 | ||||||
Stockholders’ equity
|
||||||||
Preferred stock, no par value; 2,000,000 shares authorized at
March 31, 2012 and December 31, 2011, none issued
|
- | - | ||||||
Common stock, $0.10 par value; 10,000,000 shares authorized,
5,290,000 shares issued, 2,833,521 and 2,831,874 shares
outstanding at March 31, 2012 and December 31, 2011,
respectively, net of shares in treasury of 2,456,479 and
2,458,126, respectively.
|
529 | 529 | ||||||
Additional paid-in capital
|
54,173 | 54,118 | ||||||
Unearned ESOP shares
|
(1,066 | ) | (1,097 | ) | ||||
Treasury stock-at cost
|
(50,997 | ) | (51,032 | ) | ||||
Retained earnings
|
75,164 | 74,144 | ||||||
Accumulated other comprehensive income
|
725 | 746 | ||||||
Total stockholders’ equity
|
78,528 | 77,408 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 693,421 | $ | 681,929 |
For the three months ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
(in thousands, except per share data)
|
||||||||
Interest income
|
||||||||
Loans, including fees
|
$ | 6,197 | $ | 6,584 | ||||
Investment securities
|
||||||||
Fully taxable
|
629 | 896 | ||||||
Exempt from federal taxes
|
435 | 355 | ||||||
Interest-bearing deposits and other
|
2 | - | ||||||
TOTAL INTEREST INCOME
|
7,263 | 7,835 | ||||||
Interest expense
|
||||||||
Deposits
|
1,066 | 1,460 | ||||||
Borrowings
|
405 | 559 | ||||||
TOTAL INTEREST EXPENSE
|
1,471 | 2,019 | ||||||
NET INTEREST INCOME
|
5,792 | 5,816 | ||||||
Provision for loan losses
|
500 | 900 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
5,292 | 4,916 | ||||||
Non-interest income
|
||||||||
Service fees, charges and other operating income
|
484 | 465 | ||||||
Bank owned life insurance
|
152 | 157 | ||||||
Gain on sale of loans
|
324 | 117 | ||||||
Gain on disposition of premises and equipment
|
277 | - | ||||||
TOTAL NON-INTEREST INCOME
|
1,237 | 739 | ||||||
Non-interest expense
|
||||||||
Compensation and benefits
|
2,874 | 2,746 | ||||||
Occupancy and equipment
|
710 | 818 | ||||||
Federal deposit insurance premiums
|
151 | 233 | ||||||
Professional fees
|
351 | 478 | ||||||
Marketing and advertising
|
85 | 67 | ||||||
Foreclosed real estate expense
|
287 | 61 | ||||||
Other operating
|
598 | 562 | ||||||
TOTAL NON-INTEREST EXPENSE
|
5,056 | 4,965 | ||||||
INCOME BEFORE INCOME TAXES
|
1,473 | 690 | ||||||
Income tax expense
|
318 | 72 | ||||||
NET INCOME
|
$ | 1,155 | $ | 618 | ||||
Earnings per share—basic
|
$ | 0.42 | $ | 0.23 | ||||
Earnings per share—diluted
|
$ | 0.42 | $ | 0.23 | ||||
Dividends paid per share
|
$ | 0.05 | $ | 0.05 | ||||
Weighted average shares outstanding:
|
||||||||
Basic
|
2,718,839 | 2,695,700 | ||||||
Diluted
|
2,722,405 | 2,695,909 |
For the three months ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
Net income
|
$ | 1,155 | $ | 618 | ||||
Other comprehensive (loss) income:
|
||||||||
Investment securities available for sale:
|
||||||||
Unrealized holding gains (losses)
|
(103 | ) | 404 | |||||
Tax effect
|
35 | (137 | ) | |||||
Net of tax amount
|
(68 | ) | 267 | |||||
Pension plan benefit adjustment:
|
||||||||
Related to actuarial losses
|
72 | 29 | ||||||
Tax effect
|
(25 | ) | (9 | ) | ||||
Net of tax amount
|
47 | 20 | ||||||
Total other comprehensive (loss) income
|
(21 | ) | 287 | |||||
Comprehensive income
|
$ | 1,134 | $ | 905 |
For the three months ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 1,155 | $ | 618 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization and impairment adjustment of mortgage loan servicing rights
|
54 | 50 | ||||||
Premiums and discounts on investment securities, net
|
57 | 27 | ||||||
Premiums and discounts on mortgage-backed securities, net
|
97 | 74 | ||||||
Deferred loan origination costs, net
|
54 | 69 | ||||||
Provision for loan losses
|
500 | 900 | ||||||
Depreciation of premises and equipment
|
203 | 219 | ||||||
Increase in value of bank owned life insurance
|
(152 | ) | (157 | ) | ||||
Stock based compensation
|
121 | 79 | ||||||
Proceeds from sale of loans originated for sale
|
15,694 | 5,767 | ||||||
Origination of loans held for sale
|
(15,926 | ) | (5,785 | ) | ||||
Loss (gain) on foreclosed real estate
|
179 | (11 | ) | |||||
Gain on sale of:
|
||||||||
Loans held for sale
|
(324 | ) | (117 | ) | ||||
Disposition of premises and equipment
|
(277 | ) | - | |||||
Decrease in:
|
||||||||
Accrued interest receivable
|
108 | 154 | ||||||
Other assets
|
81 | 324 | ||||||
Increase (decrease) in:
|
||||||||
Accrued interest payable
|
254 | 430 | ||||||
Other liabilities
|
(167 | ) | 408 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
1,711 | 3,049 | ||||||
INVESTING ACTIVITIES
|
||||||||
Loan originations
|
(19,210 | ) | (22,525 | ) | ||||
Loan principal payments
|
20,441 | 23,578 | ||||||
Proceeds from sale of foreclosed real estate
|
3,278 | 322 | ||||||
Proceeds from disposition of premises and equipment
|
356 | - | ||||||
Principal repayments on mortgage-backed securities held to maturity
|
149 | 182 | ||||||
Principal repayments on mortgage-backed securities available for sale
|
8,195 | 7,700 | ||||||
Purchase of investment securities available for sale
|
(4,260 | ) | - | |||||
Purchase of mortgage-backed securities available for sale
|
(13,520 | ) | - | |||||
Purchase of premises and equipment
|
(249 | ) | (91 | ) | ||||
Redemption of FHLB stock
|
383 | 470 | ||||||
NET CASH (USED)/PROVIDED BY INVESTING ACTIVITIES
|
(4,437 | ) | 9,636 |
For the three months ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Net increase (decrease) in deposits
|
10,913 | (2,382 | ) | |||||
Proceeds of long-term FHLB borrowings
|
4,500 | - | ||||||
Repayment of long-term FHLB borrowings
|
(4,723 | ) | (6,600 | ) | ||||
Net decrease in advances from borrowers for taxes and insurance
|
(417 | ) | (342 | ) | ||||
Common stock dividends paid
|
(135 | ) | (130 | ) | ||||
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES
|
10,138 | (9,454 | ) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
7,412 | 3,231 | ||||||
Cash and cash equivalents at beginning of period
|
14,928 | 7,437 | ||||||
Cash and cash equivalents at end of period
|
$ | 22,340 | $ | 10,668 | ||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid for:
|
||||||||
Interest on deposits and borrowings
|
$ | 1,217 | $ | 1,589 | ||||
Income taxes
|
$ | - | $ | 300 | ||||
Non-cash transactions:
|
||||||||
Capitalization of mortgage servicing rights
|
$ | 160 | $ | - | ||||
Transfers from loans to foreclosed real estate
|
$ | 1,848 | $ | 843 |
For the three months ended March 31, 2012
|
||||||||||||
Weighted
|
||||||||||||
average
|
||||||||||||
Income
|
shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
Amount
|
||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 1,155 | 2,718,839 | $ | 0.42 | |||||||
Effect of dilutive securities
|
||||||||||||
Stock options and grants
|
- | 3,566 | - | |||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders plus effect of dilutive securities
|
$ | 1,155 | 2,722,405 | $ | 0.42 |
For the three months ended March 31, 2011
|
||||||||||||
Weighted
|
||||||||||||
average
|
||||||||||||
Income
|
shares
|
Per share
|
||||||||||
(numerator)
|
(denominator)
|
Amount
|
||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 618 | 2,695,700 | $ | 0.23 | |||||||
Effect of dilutive securities
|
||||||||||||
Stock options and grants
|
- | 209 | - | |||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders plus effect of dilutive securities
|
$ | 618 | 2,695,909 | $ | 0.23 |
At March 31, 2012
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | 2,998 | $ | 14 | $ | - | $ | 3,012 | ||||||||
State and political subdivisions
|
55,487 | 3,895 | (112 | ) | 59,270 | |||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
55,037 | 1,464 | (48 | ) | 56,453 | |||||||||||
Residential mortgage-backed securities privately issued
|
4,881 | 217 | (3 | ) | 5,095 | |||||||||||
Total investment securities available for sale
|
118,403 | 5,590 | (163 | ) | 123,830 | |||||||||||
Held to maturity
|
||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
2,440 | 340 | - | 2,780 | ||||||||||||
Total investment securities
|
$ | 120,843 | $ | 5,930 | $ | (163 | ) | $ | 126,610 | |||||||
At December 31, 2011
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | 2,995 | $ | 35 | $ | - | $ | 3,030 | ||||||||
State and political subdivisions
|
51,287 | 3,804 | - | 55,091 | ||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
45,969 | 1,525 | - | 47,494 | ||||||||||||
Residential mortgage-backed securities privately issued
|
8,723 | 195 | (30 | ) | 8,888 | |||||||||||
Total investment securities available for sale
|
108,974 | 5,559 | (30 | ) | 114,503 | |||||||||||
Held to maturity
|
||||||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
2,588 | 340 | - | 2,928 | ||||||||||||
Total investment securities
|
$ | 111,562 | $ | 5,899 | $ | (30 | ) | $ | 117,431 |
At March 31, 2012
|
||||||||||||||||
Available for sale
|
Held to maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
cost
|
value
|
cost
|
value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Investment securities
|
||||||||||||||||
Due in one year or less
|
$ | 887 | $ | 898 | $ | - | $ | - | ||||||||
Due after one year through five years
|
8,922 | 9,379 | - | - | ||||||||||||
Due after five years through ten years
|
27,431 | 29,065 | - | - | ||||||||||||
Due after ten years
|
21,245 | 22,940 | - | - | ||||||||||||
58,485 | 62,282 | - | - | |||||||||||||
Mortgage-backed securities
|
59,918 | 61,548 | 2,440 | 2,780 | ||||||||||||
Total investment and mortgage-backed securities
|
$ | 118,403 | $ | 123,830 | $ | 2,440 | $ | 2,780 |
Less than
|
12 months
|
|||||||||||||||||||||||||||
Number |
12 months
|
or longer
|
Total | |||||||||||||||||||||||||
of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||||||
Description of Securities
|
Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
State and political subdivisions
|
4 | $ | 4,147 | $ | (112 | ) | $ | - | $ | - | $ | 4,147 | $ | (112 | ) | |||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
4 | 10,619 | (48 | ) | - | - | 10,619 | (48 | ) | |||||||||||||||||||
Residential mortgage-backed securities privately issued
|
1 | 113 | (3 | ) | - | - | 113 | (3 | ) | |||||||||||||||||||
Total temporarily impaired securities
|
9 | $ | 14,879 | $ | (163 | ) | $ | - | $ | - | $ | 14,879 | $ | (163 | ) |
Less than
|
12 months
|
|||||||||||||||||||||||||||
Number |
12 months
|
or longer
|
Total | |||||||||||||||||||||||||
of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||||||
Description of Securities | Securities | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Residential mortgage-backed securities privately issued
|
2 | 3,442 | (30 | ) | - | - | 3,442 | (30 | ) | |||||||||||||||||||
Total temporarily impaired securities
|
2 | $ | 3,442 | $ | (30 | ) | $ | - | $ | - | $ | 3,442 | $ | (30 | ) |
At
|
||||||||
March 31, 2012
|
December 31, 2011
|
|||||||
(in thousands)
|
||||||||
Held for investment:
|
||||||||
Residential
|
||||||||
Residential mortgages
|
$ | 273,250 | $ | 277,824 | ||||
Commercial
|
||||||||
Real estate-commercial
|
109,155 | 110,743 | ||||||
Real estate-residential
|
26,398 | 25,801 | ||||||
Real estate-multi-family
|
19,824 | 19,906 | ||||||
Construction loans
|
16,154 | 16,336 | ||||||
Commercial and industrial loans
|
4,685 | 4,414 | ||||||
Total commercial loans
|
176,216 | 177,200 | ||||||
Consumer
|
||||||||
Home equity and second mortgage
|
44,983 | 44,165 | ||||||
Other consumer
|
2,071 | 1,971 | ||||||
Total consumer loans
|
47,054 | 46,136 | ||||||
Total loans
|
496,520 | 501,160 | ||||||
Net deferred loan origination costs and unamortized premiums
|
953 | 1,065 | ||||||
Less allowance for loan losses
|
(6,981 | ) | (8,100 | ) | ||||
Total loans receivable
|
$ | 490,492 | $ | 494,125 | ||||
Held for sale:
|
||||||||
Residential
|
||||||||
Residential mortgages
|
$ | 884 | $ | 488 |
Commercial credit exposure-credit risk profile by internally assigned grade
|
||||||||||||||||||||
At March 31, 2012
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
Pass | mention | Substandard | Doubtful | Total | ||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Real estate-commercial
|
$ | 94,442 | $ | 5,081 | $ | 9,632 | $ | - | $ | 109,155 | ||||||||||
Real estate-residential
|
21,253 | 162 | 4,983 | - | 26,398 | |||||||||||||||
Real estate-multi-family
|
12,691 | 3,748 | 3,385 | - | 19,824 | |||||||||||||||
Construction loans
|
4,578 | 4,660 | 6,916 | - | 16,154 | |||||||||||||||
Commercial and industrial loans
|
4,424 | 92 | 169 | - | 4,685 | |||||||||||||||
Total
|
$ | 137,388 | $ | 13,743 | $ | 25,085 | $ | - | $ | 176,216 |
At December 31, 2011
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
Pass | mention | Substandard | Doubtful | Total | ||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Real estate-commercial
|
$ | 95,719 | $ | 6,189 | $ | 8,835 | $ | - | $ | 110,743 | ||||||||||
Real estate-residential
|
21,447 | 2,891 | 1,463 | - | 25,801 | |||||||||||||||
Real estate-multi-family
|
12,753 | 3,768 | 3,385 | - | 19,906 | |||||||||||||||
Construction loans
|
4,452 | 4,312 | 7,572 | 16,336 | ||||||||||||||||
Commercial and industrial loans
|
4,140 | 99 | 175 | - | 4,414 | |||||||||||||||
Total
|
$ | 138,511 | $ | 17,259 | $ | 21,430 | $ | - | $ | 177,200 |
Mortgage and consumer credit exposure-credit risk profile by payment activity
|
||||||||||||
At March 31, 2012
|
||||||||||||
Performing
|
Non-performing
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Residential mortgages
|
$ | 269,210 | $ | 4,040 | $ | 273,250 | ||||||
Home equity and second mortgage
|
44,573 | 410 | 44,983 | |||||||||
Other consumer
|
2,062 | 9 | 2,071 | |||||||||
Total
|
$ | 315,845 | $ | 4,459 | $ | 320,304 |
At December 31, 2011
|
||||||||||||
Performing
|
Non-performing
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Residential mortgages
|
$ | 272,322 | $ | 5,502 | $ | 277,824 | ||||||
Home equity and second mortgage
|
43,888 | 277 | 44,165 | |||||||||
Other consumer
|
1,970 | 1 | 1,971 | |||||||||
Total
|
$ | 318,180 | $ | 5,780 | $ | 323,960 |
At
|
||||||||
March 31, 2012
|
December 31, 2011
|
|||||||
(in thousands)
|
||||||||
Residential
|
||||||||
Residential mortgages
|
$ | 4,040 | $ | 5,502 | ||||
Commercial
|
||||||||
Real estate-commercial
|
2,039 | 2,711 | ||||||
Real estate-residential
|
838 | - | ||||||
Construction loans
|
6,580 | 4,044 | ||||||
Commercial and industrial loans
|
6 | 6 | ||||||
Consumer
|
||||||||
Home equity and second mortgage
|
377 | 277 | ||||||
Other consumer
|
9 | 1 | ||||||
Total non-performing loans
|
$ | 13,889 | $ | 12,541 | ||||
Total loans past due 90 days as to interest or principal and accruing interest
|
$ | - | $ | - |
At March 31, 2012
|
||||||||||||||||||||
Recorded investment
|
Unpaid principal balance
|
Related
allowance
|
Average recorded investment
|
Interest income recognized
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Residential
|
||||||||||||||||||||
Residential mortgages
|
$ | 2,140 | $ | 2,442 | $ | 143 | $ | 1,696 | $ | - | ||||||||||
Commercial
|
||||||||||||||||||||
Real estate-commercial
|
874 | 1,497 | 254 | 1,186 | - | |||||||||||||||
Construction loans
|
3,208 | 3,816 | 443 | 3,512 | - | |||||||||||||||
Commercial and industrial loans
|
6 | 6 | 3 | 6 | - | |||||||||||||||
6,228 | 7,761 | 843 | 6,400 | - | ||||||||||||||||
With no allowance recorded:
|
||||||||||||||||||||
Residential
|
||||||||||||||||||||
Residential mortgages
|
- | - | - | 1,361 | - | |||||||||||||||
Commercial
|
||||||||||||||||||||
Real estate-commercial
|
1,165 | 1,165 | - | 1,189 | - | |||||||||||||||
Real estate-residential
|
838 | 838 | - | 419 | ||||||||||||||||
Construction loans
|
3,372 | 3,372 | - | 1,799 | - | |||||||||||||||
5,375 | 5,375 | - | 4,768 | - | ||||||||||||||||
Total
|
$ | 11,603 | $ | 13,136 | $ | 843 | $ | 11,168 | $ | - |
At December 31, 2011
|
||||||||||||||||||||
Recorded investment
|
Unpaid principal balance
|
Related
allowance
|
Average recorded investment
|
Interest income recognized
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Residential
|
||||||||||||||||||||
Residential mortgages
|
$ | 1,252 | $ | 1,252 | $ | 388 | $ | 751 | $ | - | ||||||||||
Commercial
|
||||||||||||||||||||
Real estate-commercial
|
1,497 | 1,497 | 877 | 3,581 | - | |||||||||||||||
Real estate-residential
|
- | - | - | 497 | ||||||||||||||||
Construction loans
|
3,816 | 3,816 | 1,035 | 4,143 | - | |||||||||||||||
Commercial and industrial loans
|
6 | 6 | 3 | 72 | - | |||||||||||||||
6,571 | 6,571 | 2,303 | 9,044 | - | ||||||||||||||||
With no allowance recorded:
|
||||||||||||||||||||
Residential
|
||||||||||||||||||||
Residential mortgages
|
2,381 | 2,381 | - | 1,497 | - | |||||||||||||||
Commercial
|
||||||||||||||||||||
Real estate-commercial
|
1,214 | 1,214 | - | 1,270 | - | |||||||||||||||
Real estate-residential
|
- | - | - | 459 | ||||||||||||||||
Construction loans
|
228 | 228 | - | 1,642 | - | |||||||||||||||
Commercial and industrial loans
|
- | - | - | - | - | |||||||||||||||
3,823 | 3,823 | - | 4,868 | - | ||||||||||||||||
Total
|
$ | 10,394 | $ | 10,394 | $ | 2,303 | $ | 13,912 | $ | - |
At March 31, 2012
|
||||||||||||||||||||||||||||
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)
|
||||||||||||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||
Residential mortgages
|
$ | 271,140 | $ | 78 | $ | - | $ | 2,032 | $ | 2,110 | $ | 273,250 | $ | - | ||||||||||||||
Commercial
|
||||||||||||||||||||||||||||
Real estate-commercial
|
106,928 | 488 | - | 1,739 | 2,227 | 109,155 | - | |||||||||||||||||||||
Real estate-residential
|
25,560 | - | - | 838 | 838 | 26,398 | - | |||||||||||||||||||||
Real estate-multi-family
|
19,824 | - | - | - | - | 19,824 | - | |||||||||||||||||||||
Construction loans
|
9,574 | - | - | 6,580 | 6,580 | 16,154 | - | |||||||||||||||||||||
Commercial and industrial loans
|
4,679 | - | 6 | 6 | 4,685 | - | ||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||
Home equity and second mortgage
|
44,448 | 158 | 377 | 535 | 44,983 | |||||||||||||||||||||||
Other consumer
|
2,044 | 18 | - | 9 | 27 | 2,071 | - | |||||||||||||||||||||
Total
|
$ | 484,197 | $ | 742 | $ | - | $ | 11,581 | $ | 12,323 | $ | 496,520 | $ | - |
At December 31, 2011
|
||||||||||||||||||||||||||||
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)
|
||||||||||||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||
Residential mortgages
|
$ | 273,231 | $ | 98 | $ | 153 | $ | 4,342 | $ | 4,593 | $ | 277,824 | $ | - | ||||||||||||||
Commercial
|
||||||||||||||||||||||||||||
Real estate-commercial
|
108,382 | - | - | 2,361 | 2,361 | 110,743 | - | |||||||||||||||||||||
Real estate-residential
|
25,489 | 312 | - | - | 312 | 25,801 | - | |||||||||||||||||||||
Real estate-multi-family
|
19,906 | - | - | - | - | 19,906 | - | |||||||||||||||||||||
Construction loans
|
9,151 | - | 3,141 | 4,044 | 7,185 | 16,336 | - | |||||||||||||||||||||
Commercial and industrial loans
|
4,408 | - | - | 6 | 6 | 4,414 | - | |||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||
Home equity and second mortgage
|
43,712 | 165 | 11 | 277 | 453 | 44,165 | - | |||||||||||||||||||||
Other consumer
|
1,956 | 6 | 8 | 1 | 15 | 1,971 | - | |||||||||||||||||||||
Total
|
$ | 486,235 | $ | 581 | $ | 3,313 | $ | 11,031 | $ | 14,925 | $ | 501,160 | $ | - |
Balance
January 1, 2012
|
Provision
|
Charge-offs
|
Recoveries
|
Balance
March 31, 2012
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Residential
|
||||||||||||||||||||
Residential mortgages
|
$ | 2,194 | $ | 151 | $ | (399 | ) | $ | 7 | $ | 1,953 | |||||||||
Commercial
|
||||||||||||||||||||
Real estate-commercial
|
2,819 | (362 | ) | (623 | ) | - | 1,834 | |||||||||||||
Real estate-residential
|
464 | 190 | - | - | 654 | |||||||||||||||
Real estate-multi-family
|
358 | (8 | ) | - | - | 350 | ||||||||||||||
Construction loans
|
1,260 | 519 | (608 | ) | - | 1,171 | ||||||||||||||
Commercial and industrial loans
|
138 | (97 | ) | - | 5 | 46 | ||||||||||||||
Consumer
|
||||||||||||||||||||
Home equity and second mortgage
|
448 | (139 | ) | - | - | 309 | ||||||||||||||
Other consumer
|
22 | (13 | ) | (2 | ) | 1 | 8 | |||||||||||||
Unallocated
|
397 | 259 | - | - | 656 | |||||||||||||||
Total
|
$ | 8,100 | $ | 500 | $ | (1,632 | ) | $ | 13 | $ | 6,981 |
Balance
January 1, 2011
|
Provision
|
Charge-offs
|
Recoveries
|
Balance
March 31, 2011
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Residential
|
||||||||||||||||||||
Residential mortgages
|
$ | 1,839 | $ | 268 | $ | (57 | ) | $ | - | $ | 2,050 | |||||||||
Commercial
|
||||||||||||||||||||
Real estate-commercial
|
3,281 | 429 | - | - | 3,710 | |||||||||||||||
Real estate-residential
|
534 | (55 | ) | - | - | 479 | ||||||||||||||
Real estate-multi-family
|
399 | (49 | ) | - | - | 350 | ||||||||||||||
Construction loans
|
1,363 | 252 | - | - | 1,615 | |||||||||||||||
Commercial and industrial loans
|
77 | 67 | (44 | ) | 3 | 103 | ||||||||||||||
Consumer
|
||||||||||||||||||||
Home equity and second mortgage
|
607 | 189 | (221 | ) | 4 | 579 | ||||||||||||||
Other consumer
|
16 | 11 | (7 | ) | - | 20 | ||||||||||||||
Unallocated
|
212 | (212 | ) | - | - | - | ||||||||||||||
Total
|
$ | 8,328 | $ | 900 | $ | (329 | ) | $ | 7 | $ | 8,906 |
For the three months ended
March 31, 2012
|
||||||||||||
Number of Contracts
|
Pre-Modification
Outstanding Recorded
Investment
|
Post Modification
Outstanding Recorded
Investment
|
||||||||||
(in thousands)
|
||||||||||||
Residential
|
||||||||||||
Residential mortgage
|
1 | $ | 852 | $ | 825 | |||||||
Total
|
1 | $ | 852 | $ | 825 |
Evaluated for impairment
|
||||||||||||
Allowance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Residential
|
||||||||||||
Residential mortgages
|
$ | 143 | $ | 1,810 | $ | 1,953 | ||||||
Commercial
|
||||||||||||
Real estate-commercial
|
254 | 1,580 | 1,834 | |||||||||
Real estate-residential
|
- | 654 | 654 | |||||||||
Real estate-multi-family
|
- | 350 | 350 | |||||||||
Construction loans
|
443 | 728 | 1,171 | |||||||||
Commercial and industrial loans
|
3 | 43 | 46 | |||||||||
Consumer
|
||||||||||||
Home equity and second mortgage
|
- | 309 | 309 | |||||||||
Other consumer
|
- | 8 | 8 | |||||||||
Unallocated
|
- | 656 | 656 | |||||||||
Total
|
$ | 843 | $ | 6,138 | $ | 6,981 |
Evaluated for impairment
|
||||||||||||
Loan balance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Residential
|
||||||||||||
Residential mortgages
|
$ | 2,140 | $ | 271,110 | $ | 273,250 | ||||||
Commercial
|
||||||||||||
Real estate-commercial
|
2,039 | 107,116 | 109,155 | |||||||||
Real estate-residential
|
838 | 25,560 | 26,398 | |||||||||
Real estate-multi-family
|
- | 19,824 | 19,824 | |||||||||
Construction loans
|
6,580 | 9,574 | 16,154 | |||||||||
Commercial and industrial loans
|
6 | 4,679 | 4,685 | |||||||||
Consumer
|
||||||||||||
Home equity and second mortgage
|
- | 44,983 | 44,983 | |||||||||
Other consumer
|
- | 2,071 | 2,071 | |||||||||
Total
|
$ | 11,603 | $ | 484,917 | $ | 496,520 |
Evaluated for impairment
|
||||||||||||
Allowance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Residential
|
||||||||||||
Residential mortgages
|
$ | 388 | $ | 1,806 | $ | 2,194 | ||||||
Commercial
|
||||||||||||
Real estate-commercial
|
877 | 1,475 | 2,352 | |||||||||
Real estate-residential
|
- | 369 | 369 | |||||||||
Real estate-multi-family
|
- | 350 | 350 | |||||||||
Construction loans
|
1,035 | 795 | 1,830 | |||||||||
Commercial and industrial loans
|
3 | 135 | 138 | |||||||||
Consumer
|
||||||||||||
Home equity and second mortgage
|
- | 448 | 448 | |||||||||
Other consumer
|
- | 22 | 22 | |||||||||
Unallocated
|
- | 397 | 397 | |||||||||
Total
|
$ | 2,303 | $ | 5,797 | $ | 8,100 |
Evaluated for impairment
|
||||||||||||
Loan balance
|
Individually
|
Collectively
|
Total
|
|||||||||
(in thousands)
|
||||||||||||
Residential
|
||||||||||||
Residential mortgages
|
$ | 3,633 | $ | 274,191 | $ | 277,824 | ||||||
Commercial
|
||||||||||||
Real estate-commercial
|
2,711 | 108,032 | 110,743 | |||||||||
Real estate-residential
|
- | 25,801 | 25,801 | |||||||||
Real estate-multi-family
|
- | 19,906 | 19,906 | |||||||||
Construction loans
|
4,044 | 12,292 | 16,336 | |||||||||
Commercial and industrial loans
|
6 | 4,408 | 4,414 | |||||||||
Consumer
|
||||||||||||
Home equity and second mortgage
|
- | 44,165 | 44,165 | |||||||||
Other consumer
|
- | 1,971 | 1,971 | |||||||||
Total
|
$ | 10,394 | $ | 490,766 | $ | 501,160 |
|
·
|
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.
|
Balance as of
|
||||||||||||||||
Fair value hierarchy levels
|
March 31,
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
2012
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Investment securities available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | - | $ | 3,012 | $ | - | $ | 3,012 | ||||||||
State and political subdivisions
|
- | 59,270 | - | 59,270 | ||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
- | 56,453 | - | 56,453 | ||||||||||||
Residential real estate mortgage - backed securities privately issued
|
- | 5,095 | - | 5,095 | ||||||||||||
Total investment securities available for sale
|
$ | - | $ | 123,830 | $ | - | $ | 123,830 | ||||||||
Balance as of
|
||||||||||||||||
Fair value hierarchy levels
|
December 31,
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
2011 | |||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Investment securities available for sale
|
||||||||||||||||
U.S. Government and federal agencies
|
$ | - | $ | 3,030 | $ | - | $ | 3,030 | ||||||||
State and political subdivisions
|
- | 55,091 | - | 55,091 | ||||||||||||
Residential mortgage-backed securities issued by quasi-governmental agencies
|
- | 47,494 | - | 47,494 | ||||||||||||
Residential real estate mortgage - backed securities privately issued
|
- | 8,888 | - | 8,888 | ||||||||||||
Total investment securities available for sale
|
$ | - | $ | 114,503 | $ | - | $ | 114,503 |
Balance as of
|
||||||||||||||||
Fair value hierarchy levels
|
March 31,
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
2012
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 10,760 | $ | 10,760 | ||||||||
Real estate acquired through foreclosure
|
- | - | 10,247 | 10,247 | ||||||||||||
Mortgage servicing rights
|
- | 870 | - | 870 |
Fair value
|
Valuation
|
Unobservable
|
Range of
|
|||||||
Description
|
estimate
|
technique
|
Input
|
inputs
|
||||||
(in thousands)
|
||||||||||
Impaired loans
|
$ | 10,760 |
Appraisal of collateral
|
Discount rate to reflect current market conditions and ultimate recoverability
|
5%-15 | % | ||||
Real estate acquired through foreclosure
|
10,247 |
Appraisal of collateral
|
Discount rate to reflect current market conditions and liquidation expenses
|
5%-20 | % |
Balance as of
|
||||||||||||||||
Fair value hierarchy levels
|
December 31,
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
2011
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 8,091 | $ | 8,091 | ||||||||
Real estate acquired through foreclosure
|
- | - | 11,731 | 11,731 | ||||||||||||
Mortgage servicing rights
|
- | 763 | - | 763 |
Carrying
|
Fair
|
Fair value hierarchy levels
|
||||||||||||||||||
value
|
value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
Assets
|
(in thousands) | |||||||||||||||||||
Cash and cash equivalents
|
$ | 22,340 | $ | 22,340 | $ | 22,340 | $ | - | $ | - | ||||||||||
Investment securities
|
62,282 | 62,282 | - | 62,282 | - | |||||||||||||||
Mortgage-backed securities
|
63,988 | 64,328 | - | 64,328 | - | |||||||||||||||
Loans receivable, net
|
491,376 | 516,157 | - | - | 516,157 | |||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits with stated maturities
|
$ | 180,962 | $ | 183,013 | $ | - | $ | - | $ | 183,013 | ||||||||||
Borrowings with stated maturities
|
46,685 | 47,680 | - | 47,680 | - | |||||||||||||||
Deposits with no stated maturities
|
381,239 | 381,239 | 381,239 | - | - |
At December 31, 2011
|
||||||||
Carrying
value
|
Fair
value
|
|||||||
(in thousands)
|
||||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 14,928 | $ | 14,928 | ||||
Investment securities
|
58,121 | 58,121 | ||||||
Mortgage-backed securities
|
58,970 | 59,310 | ||||||
Loans receivable, net
|
494,613 | 516,359 | ||||||
Liabilities
|
||||||||
Deposits with stated maturities
|
$ | 181,074 | $ | 183,306 | ||||
Borrowings with stated maturities
|
46,908 | 48,092 | ||||||
Deposits with no stated maturities
|
370,214 | 370,214 |
At March 31, 2012
|
||||||||||||||||
Number of
shares
|
Weighted average exercise price per share
|
Weighted average remaining contractual term (in years)
|
Aggregate intrinsic value ($000)
|
|||||||||||||
Outstanding at January 1, 2012
|
109,765 | $ | 24.41 | |||||||||||||
Options granted
|
- | - |
|
|
||||||||||||
Options exercised
|
- | - |
|
|
||||||||||||
Options forfeited
|
- | - |
|
|
||||||||||||
Options expired
|
(257 | ) | 28.25 |
|
|
|||||||||||
Outstanding at March 31, 2012
|
109,508 | $ | 24.40 | 2.36 | $ | 270 | ||||||||||
Options exercisable at March 31, 2012
|
92,071 | $ | 25.30 | 2.13 | $ | 191 |
For the three months ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
Stock-based compensation expense
|
||||||||
Director fees
|
$ | 37 | $ | - | ||||
Stock grant expense
|
- | 3 | ||||||
Stock option expense
|
7 | 8 | ||||||
Employee Stock Ownership Plan ("ESOP") expense
|
69 | 59 | ||||||
Total stock-based compensation expense
|
$ | 113 | $ | 70 |
For the three months ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
Components of net periodic benefit cost
|
||||||||
Service cost
|
$ | 184 | $ | 141 | ||||
Interest cost
|
90 | 82 | ||||||
Expected return on plan assets
|
(162 | ) | (154 | ) | ||||
Recognized net actuarial loss
|
72 | 29 | ||||||
Net periodic benefit cost
|
$ | 184 | $ | 98 |
At | ||||||||||||
Non-Performing Assets
|
March 31, 2012
|
December 31, 2011
|
March 31, 2011
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Loans receivable, net:
|
||||||||||||
Residential
|
||||||||||||
Residential mortgages
|
$ | 4,040 | $ | 5,502 | $ | 4,951 | ||||||
Commercial
|
||||||||||||
Real estate-commercial
|
2,039 | 2,711 | 5,949 | |||||||||
Real estate-residential
|
838 | - | 2,389 | |||||||||
Real estate-multi-family
|
- | - | 7,145 | |||||||||
Construction loans
|
6,580 | 4,044 | - | |||||||||
Commercial and industrial loans
|
6 | 6 | - | |||||||||
Consumer
|
||||||||||||
Home equity and second mortgage
|
377 | 277 | 630 | |||||||||
Other consumer
|
9 | 1 | - | |||||||||
Total non-performing loans
|
13,889 | 12,541 | 21,064 | |||||||||
Real estate owned
|
10,247 | 11,730 | 8,002 | |||||||||
Total non-performing assets
|
$ | 24,136 | $ | 24,271 | $ | 29,066 | ||||||
Total loans 90 days or more past due as to interest or principal and accruing interest
|
$ | - | $ | - | $ | - | ||||||
Ratio of non-performing loans to gross loans
|
2.79 | % | 2.49 | % | 4.15 | % | ||||||
Ratio of non-performing loans to total assets
|
2.00 | % | 1.84 | % | 3.08 | % | ||||||
Ratio of total non-performing assets to total assets
|
3.48 | % | 3.56 | % | 4.25 | % |
Three Months Ended March 31,
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
Average
balance
|
Interest
|
Average
yld/cost
|
Average
balance
|
Interest
|
Average
yld/cost
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable(1)
|
$ | 493,396 | $ | 6,197 | 5.05 | % | $ | 501,543 | $ | 6,584 | 5.32 | % | ||||||||||||
Mortgage-backed securities
|
61,971 | 539 | 3.50 | % | 66,401 | 695 | 4.24 | % | ||||||||||||||||
Investment securities(2)
|
67,035 | 712 | 4.27 | % | 67,035 | 719 | 4.35 | % | ||||||||||||||||
Other interest-earning assets(3)
|
13,619 | 2 | 0.06 | % | 3,237 | - | * | - | % | |||||||||||||||
Total interest-earning assets
|
636,021 | 7,450 | 4.71 | % | 638,216 | 7,998 | 5.08 | % | ||||||||||||||||
Non interest-earning assets
|
50,557 | 48,984 | ||||||||||||||||||||||
Total assets
|
$ | 686,578 | $ | 687,200 | ||||||||||||||||||||
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ | 554,523 | 1,066 | 0.77 | % | $ | 546,055 | 1,460 | 1.08 | % | ||||||||||||||
Borrowings from the FHLB
|
47,387 | 405 | 3.44 | % | 60,446 | 559 | 3.75 | % | ||||||||||||||||
Total interest-bearing liabilities
|
601,910 | 1,471 | 0.98 | % | 606,501 | 2,019 | 1.35 | % | ||||||||||||||||
Non interest-bearing liabilities
|
6,523 | 6,482 | ||||||||||||||||||||||
Total liabilities
|
608,433 | 612,983 | ||||||||||||||||||||||
Stockholders’ equity
|
78,145 | 74,217 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 686,578 | $ | 687,200 | ||||||||||||||||||||
Net interest income-tax equivalent basis
|
5,979 | 5,979 | ||||||||||||||||||||||
Interest rate spread(4)-tax equivalent basis
|
3.73 | % | 3.73 | % | ||||||||||||||||||||
Net yield on interest-earning assets(5)-tax
equivalent basis
|
3.78 | % | 3.80 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to
average interest-bearing liabilities
|
105.67 | % | 105.23 | % | ||||||||||||||||||||
Less: tax-equivalent interest adjustments
|
(187 | ) | (163 | ) | ||||||||||||||||||||
Net interest income
|
$ | 5,792 | $ | 5,816 | ||||||||||||||||||||
Interest rate spread(4)
|
3.61 | % | 3.63 | % | ||||||||||||||||||||
Net yield on interest-earning assets(5)
|
3.66 | % | 3.70 | % |
|
(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 $187,000 and $163,000 for the quarters ended March 31, 2012 and 2011, 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.
|
For the three months ended March 31
|
||||||||||||
2012 vs 2011
Increase (decrease) due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
Interest income:
|
||||||||||||
Loans receivable, net
|
$ | (93 | ) | $ | (294 | ) | $ | (387 | ) | |||
Mortgage-backed securities
|
(43 | ) | (113 | ) | (156 | ) | ||||||
Investment securities (1)
|
- | (7 | ) | (7 | ) | |||||||
Other interest-earning assets
|
- | 2 | 2 | |||||||||
Total interest-earning assets
|
(136 | ) | (412 | ) | (548 | ) | ||||||
Interest expense:
|
||||||||||||
Deposits
|
154 | (548 | ) | (394 | ) | |||||||
Borrowings from the FHLB
|
(111 | ) | (43 | ) | (154 | ) | ||||||
Total interest-bearing liabilities
|
43 | (591 | ) | (548 | ) | |||||||
Net change in net interest income
|
$ | (179 | ) | $ | 179 | $ | - | |||||
(1
|
)
|
Tax equivalent adjustments to interest on investment securities were $187,000 and $163,000 for the quarters ended March 31, 2012 and 2011, 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 SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
||||
None.
|
||||
DEFAULTS UPON SENIOR SECURITIES
|
||||
Not applicable.
|
||||
MINE SAFETY DISCLOSURES
Not applicable
|
||||
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:
|
May 14, 2012
|
/s/ Kent C. Lufkin
|
|
Kent C. Lufkin
|
|||
President and CEO
|
|||
(Principal Executive Officer)
|
|||
Date:
|
May 14, 2012
|
/s/ Dennis R. Stewart
|
|
Dennis R. Stewart
|
|||
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial & Accounting Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of TF Financial Corporation (Registrant);
|
|
2.
|
Based on my knowledge, this quarterly 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 quarterly report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report;
|
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the Registrant and we 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 quarterly report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal controls 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 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 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and to the audit committee of the Registrant’s board of directors (or persons performing the equivalent function):
|
|
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.
|
Date:
|
May 14, 2012
|
/s/ KENT C. LUFKIN
|
|
Kent C. Lufkin
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of TF Financial Corporation (Registrant);
|
|
2.
|
Based on my knowledge, this quarterly 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 quarterly report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report;
|
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the Registrant and we 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 quarterly report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal controls 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 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 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and to the audit committee of the Registrant’s board of directors (or persons performing the equivalent function):
|
|
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.
|
Date:
|
May 14, 2012
|
/s/ DENNIS R. STEWART
|
|
Dennis R. Stewart
|
|||
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial & Accounting Officer)
|
/s/ KENT C. LUFKIN
|
/s/ DENNIS R. STEWART
|
|
Kent C. Lufkin
|
Dennis R. Stewart
|
|
President and Chief Executive Officer
|
Executive Vice President and Chief Financial Officer
|
|
May 14, 2012
|
May 14, 2012
|
S$YISQP5.I0_FBFMTM=[E$ 8/WO;\ZDCMPJFRRX_S7L5P5./Z98=?2"6
M[%TG6<-STM/%9)HHIH?[.R=/P.-RU?2`##D&@JKE40+8 38;$")73_BM9B^C$I;K*>0R0
M4`\%P/KO31]QP_$FES$Z[@OVP%[5['E\;EA.LE[IR?`5=C3%%,?.Y8RRJK#+
M`/%Z0;Q]>/#X@U@>L,0%'T>LT%+U0\Z>_]1JM9J$7#GQS G&4"A&TXY7A?&4S
MPV=A8-DR]$!\D#<)VQ&X;,(#[LU)M]-%;(4PR!NM0`3LL*9/RF'0'IPF@HUX
M! AY]C_B,2:?^]^;F^C1Y*WR^;MIZFF31FAZ_C.?_OK,;+=T
M^E]+#USY4Z>C/_MM0^I)B;/X>^DN?"1WX7,%1_X^WMV_9>V;5[=?WG]A=^_8
MI\]OO[S]>'][__[N8T:WK-5J7QV6"QICC_V\HX_/U$2=?J&%CAEG!O7\?&$X
M3Z+O0\<()Y;(Q"HV=,1R6I26-4+/L)D,*R!RL_KL._ %*\`%[D`[_0`#AY"DI1D,#M,0[2`"9G`'>X__FNJN=NVTSC
M)K:]>%M4"/Y1PI= <_>`^C_CI'+?0H0%^'X),>(+R\$TIP0M>AHN)QM\
M$M!"V4XX^V>OM">.\/X9>#X?3`X:\WQ73K1SV=N(%VC88KPH
MF[X]`;>06$V4%^IE/?WUF
MBLYHZ2T]<.5/G8[^C/K/BO[Z9ZO5?D9=;%ISP_9_?7;3>?9;>SCHMEJM57VS
M2ZE,6GTIK9Y'VD&W7T3:#Y8QMFS9,UORK?Z4T82'1>GKW>&HLR[,ZI6G2J#K
M[<,2M+J]MEY$`MEA$;)[A*'F_!(0H3/7)B7UH^>/:Z-1I[M;PLQRJA8[5\,.
M]5%[=*38KN'X9'Y,;CT*`Z&Q&;
/>9DLQO>%QP%=*#"\^B.I%8
M;/S$#!;,+(\^-+S@2?Q))!N4U\V"E^S@C;0G^9'I>@O7$\O_$SY>%YU*714G
MWD[E!S//#1]F5/0\M`/K9D)MXXCCT7(OP3:"Z,>Y.^&V1D_%T4)78<,U]GUF
MF3-JZ67)/A5-U?38M]`5OPFQW&!&'U#97WE`SU)3S.6[Q??L4"B.1M^:4F?)
MQ@NHJ<8>-[Y.W.^.QL94O9GX,GNRN#WQZ1/#Y\Q?T",3+?J0!2Z]/Q"U):'6
MF\(P15G^RQ2VRY\.'!/?;$'#]MVD\[Y;U%\B>!O?;A<6^J+S+&<1!KY\DEK/
MYYYXCSL5DHH.\.G+1D`M/;6ITAGU)/'I-3X+%Q/1LE'%HGHS8_)7&!'JOV1_
M["8P:F+.WOW^X8_7&ON/CW_<1N]Y1S\QDWN!-:5J)UVUN7&3O:>4FJ^:KC,)
M+5%+24**[I#4V\NB)FX=(VJ''Z*K$MI$/VZW0U)E@O')M^)VH,\6QE.DH@O.
M)]3!FYM,8X_]7+5IVC>YKU"&_38MPWCF79"(0MNQ.3?\T*->)$"GJX0!U$,&
MC9*.)P#S1"^2+EH^`??@\0=B9"),V71GA@'QNC_$[R(4/&NW]+8DQ@_GPC+]
M/_%U;KO??VE@CQ620V6WFYU.OHS
MFAM;T6=_MEKM9S0`F#3(V_ZOSVXZSW[KM4:C0:O56LFX_>+2!=/U]F'!]%:G
MG5>P#]:4L_<._94&2IJBO7:]A2L<'C'&B8&/W7UW^(3^,#.)5\@W1-]_[^QJ<+VE!V[.IM=[Z_4K5KAJ==>7===SU7U01MW?)@
MR3.2$WWR<^BWN>7SR*L2WLQ"^$J;-4U_ZZ/KD-L["4WYBM,ZE)Y9J]3.
4_?9[SC
M
;+%"YTDEV"2)3A*$7CO22V?L#=\'(CJ!UYH!J%'VN2SY\_NWWSV
MG[UXR6X=F6+NT9J$:]D*Z;V&_21$%+F3HV.7(L>E+]+?&=3TIGQHL?`,RX^R
M+2^3/1LVR4LM&HCDMK(-1&E"J._^VY'195#E_D[];4HLK^_OD+`IYE"=T%9F!T0.7
M[H%JCO)M;X4/^G7<"L>%N!I<:T%:*;!1\^MP%5QX$@:WAI[;:W<^YYYYK./6
M/.51X5Y")5X,XN2!#37,+)S=V-DE+Y>+8P/\QLQIAJ_4HU%!\=I:JU-FV'*X
MO8V$9*"7>7"_!OYOD\VREW==$RIW,94;=A`*`(CLE>%&?4#@*N^SR:]=)SJ^
M*@Z\RH.$,,>*ZEI?ZY5Z\P0&N8&0B"V$*XN+U3R3G*Q8R#/=)$-()EK\"ONL
MLNKUU5<[``)`SN@LUWT#+T\<)&@0MFBP?0Q0#%*B0K/HH%!RS=1>N$(V6KO-:QT[3;KKE\!=%&@F\7`'XQCZ=\B+
MEG'P&$3TQ2V$I`-OQX`>JD4$T%(UY;^&LR%FH/3="T.`KKE)(0-"+`10)863
MXB0=Q>Q2'R0A\Q9N,5[#2H/OVMY/#&A[
@W8=9F]?7=VDS`^WMW4XP:,[ZO^8N3#3?;];$?6,`ZQM`WY*,+21DJ]U[
MI+$"17$(8"H.0WV&JU.EL7S7/?C.,U:EL5GV^J[(9DD:F^UQ>P4Q0(0D.?L3D1HDTM?L[5>7DG3TOIA!5\#KI)7]ZZR=%C5VF2%*^:)7%.-T\F@^C20
M5,>=>(6%L627/4#%6"NLV=KL5<(*1E@+A)5]GQ;9UA?%:_BU".KZ4GA<^;D.
M*)7*A>^U0WV^)DA+5KX/B^DQ;`$KBZJY;J&G.J]+&WQ=@J;#4W1N%I8?]#&9
M+3=`U::,L1&^S\("@^:5,%]GX4"O4CA`]G"=FZ)SVZ#F='/9!B\R>9'I5GN]
MJO3NZP2_:K\W,/I'U0,66].NO.UOT*^ZZ@]7ZVL