ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2010
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OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ____________ to ____________
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INDIANA
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35-1934975
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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101 Main Street, Lafayette, Indiana
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47901
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(Address of principal executive offices)
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(Zip Code)
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Title of each class:
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Name of each exchange on which registered:
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Common Stock, par value $0.01 per share
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The NASDAQ Stock Market LLC
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
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Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
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Yes o No ý
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes ý No o
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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
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Yes o No o
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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
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ý
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Large Accelerated Filer o
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Accelerated Filer o
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Non-Accelerated Filer o (Do not check if a smaller reporting company)
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Smaller Reporting Company ý
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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Yes o No ý
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Class
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Outstanding at March 15, 2011
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Common Stock, $0.01 par value per share
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1,553,525 shares
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Document
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Parts Into Which Incorporated
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Annual Report to Shareholders for the Fiscal Year Ended December 31, 2010
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Parts I and II
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Proxy Statement for the Annual Meeting of Shareholders to be held April 20, 2011
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Part III
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Page
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Forward-Looking Statements
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4
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Part I
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Item 1.
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Business
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5
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Item 1A.
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Risk Factors
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32
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Item 1B.
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Unresolved Staff Comments
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32
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Item 2.
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Properties
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32
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Item 3.
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Legal Proceedings
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32
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Item 4.
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(Removed and Reserved)
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33
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Item 4.5.
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Executive Officers of the Registrant
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33
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Part II
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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33
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Item 6.
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Selected Financial Data
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34
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operation
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34
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Item 7A.
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Quantitative and Qualitative Disclosures about Market Risk
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34
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Item 8.
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Financial Statements and Supplementary Data
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34
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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34
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Item 9A.
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Controls and Procedures
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34
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Item 9B.
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Other Information
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35
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Part III
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Item 10.
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Directors, Executive Officers and Corporate Governance
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35
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Item 11.
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Executive Compensation
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36
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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36
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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36
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Item 14.
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Principal Accountant Fees and Services
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36
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Part IV
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Item 15.
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Exhibits and Financial Statement Schedules
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37
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·
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the strength of the United States economy in general and the strength of the local economies in which we conduct our operations;
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·
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the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board;
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·
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financial market, monetary and interest rate fluctuations, particularly the relative relationship of short-term interest rates to long-term interest rates;
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·
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the timely development of and acceptance of new products and services of Lafayette Savings Bank and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services;
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·
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the willingness of users to substitute competitors’ products and services for our products and services;
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·
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the impact of changes in financial services laws and regulations (including laws concerning taxes, accounting standards, banking, securities and insurance);
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·
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the impact of technological changes;
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·
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acquisitions;
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·
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changes in consumer spending and saving habits; and
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·
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our success at managing the risks involved in the foregoing.
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Item 1. Business
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December 31,
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||||||||||||||||||||||||||||||||||||||||
2006
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2007
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2008
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2009
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2010
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||||||||||||||||||||||||||||||||||||
Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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|||||||||||||||||||||||||||||||
Real Estate Loans
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(Dollars in Thousands)
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|||||||||||||||||||||||||||||||||||||||
One- to four-family
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$ | 142,045 | 43.70 | % | $ | 137,611 | 45.48 | % | $ | 145,442 | 43.43 | % | $ | 123,502 | 37.46 | % | $ | 125,121 | 37.46 | % | ||||||||||||||||||||
Multi-family
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30,160 | 9.28 | 29,764 | 9.84 | 39,892 | 11.91 | 52,790 | 16.01 | 53,458 | 16.00 | ||||||||||||||||||||||||||||||
Commercial
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74,710 | 22.98 | 71,601 | 23.67 | 90,606 | 27.06 | 90,571 | 27.47 | 90,395 | 27.06 | ||||||||||||||||||||||||||||||
Land and land development
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18,466 | 5.68 | 18,067 | 5.97 | 17,756 | 5.30 | 17,192 | 5.21 | 14,510 | 4.34 | ||||||||||||||||||||||||||||||
Construction
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19,228 | 5.91 | 9,741 | 3.22 | 11,436 | 3.42 | 13,002 | 3.95 | 15,957 | 4.78 | ||||||||||||||||||||||||||||||
Total real estate loans
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284,609 | 87.55 | 266,784 | 88.18 | 305,132 | 91.12 | 297,057 | 90.10 | 299,441 | 89.65 | ||||||||||||||||||||||||||||||
Other Loans
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||||||||||||||||||||||||||||||||||||||||
Consumer loans:
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||||||||||||||||||||||||||||||||||||||||
Home equity
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16,276 | 5.01 | 14,018 | 4.63 | 13,610 | 4.06 | 14,698 | 4.46 | 17,043 | 5.10 | ||||||||||||||||||||||||||||||
Home improvement
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417 | 0.13 | 315 | 0.10 | 174 | 0.05 | 124 | 0.04 | --- | --- | ||||||||||||||||||||||||||||||
Automobile
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2,285 | 0.70 | 1,757 | 0.58 | 1,265 | 0.38 | 930 | 0.28 | 871 | 0.26 | ||||||||||||||||||||||||||||||
Deposit account
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285 | 0.09 | 231 | 0.08 | 291 | 0.09 | 196 | 0.06 | 211 | 0.06 | ||||||||||||||||||||||||||||||
Other
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267 | 0.08 | 136 | 0.04 | 113 | 0.03 | 71 | 0.02 | 126 | 0.03 | ||||||||||||||||||||||||||||||
Total consumer loans
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19,530 | 6.01 | 16,457 | 5.44 | 15,453 | 4.62 | 16,019 | 4.86 | 18,251 | 5.46 | ||||||||||||||||||||||||||||||
Commercial business loans
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20,935 | 6.44 | 19,307 | 6.38 | 14,277 | 4.26 | 16,638 | 5.04 | 16,332 | 4.89 | ||||||||||||||||||||||||||||||
Total other loans
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40,465 | 12.45 | 35,764 | 11.82 | 29,730 | 8.88 | 32,657 | 9.90 | 34,583 | 10.35 | ||||||||||||||||||||||||||||||
Total loans
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325,074 | 100.00 | % | 302,548 | 100.00 | % | 334,862 | 100.00 | % | 329,714 | 100.00 | % | 334,024 | 100.00 | % | |||||||||||||||||||||||||
Less:
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||||||||||||||||||||||||||||||||||||||||
Loans in process
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4,167 | 1,581 | 4,180 | 4,383 | 5,107 | |||||||||||||||||||||||||||||||||||
Deferred fees and discounts
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446 | 357 | 346 | 431 | 499 | |||||||||||||||||||||||||||||||||||
Allowance for losses
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2,770 | 3,702 | 3,697 | 3,737 | 5,343 | |||||||||||||||||||||||||||||||||||
Total loans receivable, net
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$ | 317,691 | $ | 296,908 | $ | 326,639 | $ | 321,163 | $ | 323,075 |
December 31,
|
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2006
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2007
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2008
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2009
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2010
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||||||||||||||||||||||||||||||||||||
Amount
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Percent
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Amount
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Percent
|
Amount
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Percent
|
Amount
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Percent
|
Amount
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Percent
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|||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||||||
Fixed Rate Loans:
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||||||||||||||||||||||||||||||||||||||||
Real estate:
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||||||||||||||||||||||||||||||||||||||||
One- to four-family
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$ | 41,105 | 12.65 | % | $ | 43,707 | 14.45 | % | $ | 56,814 | 16.97 | % | $ | 45,059 | 13.67 | % | $ | 51,621 | 15,46 | % | ||||||||||||||||||||
Multi-family
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2,793 | 0.86 | 3,860 | 1.27 | 5,113 | 1.53 | 2,443 | 0.74 | 2,179 | 0.65 | ||||||||||||||||||||||||||||||
Commercial
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10,797 | 3.32 | 13,753 | 4.55 | 23,794 | 7.11 | 21,611 | 6.55 | 14,825 | 4.44 | ||||||||||||||||||||||||||||||
Construction
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1,989 | 0.61 | 5,223 | 1.73 | 1,405 | 0.42 | 2,660 | 0.81 | 4,625 | 1.38 | ||||||||||||||||||||||||||||||
Land and land development
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7,358 | 2.26 | 2,305 | 0.76 | 3,216 | 0.96 | 4,698 | 1.42 | 5,108 | 1.53 | ||||||||||||||||||||||||||||||
Total real estate loans
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64,042 | 19.70 | 68,848 | 22.76 | 90,342 | 26.98 | 76,471 | 23.19 | 78,358 | 23.46 | ||||||||||||||||||||||||||||||
Consumer
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3,234 | 1.00 | 2,419 | 0.80 | 1,843 | 0.55 | 1,452 | 0.44 | 1,208 | 0.36 | ||||||||||||||||||||||||||||||
Commercial business
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9,372 | 2.88 | 9,749 | 3.22 | 7,011 | 2.09 | 7,293 | 2.21 | 8,182 | 2.45 | ||||||||||||||||||||||||||||||
Total fixed rate loans
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96,648 | 23.58 | 81,016 | 26.78 | 99,196 | 29.62 | 85,216 | 25.84 | 87,748 | 26.27 | ||||||||||||||||||||||||||||||
Adjustable Rate Loans:
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||||||||||||||||||||||||||||||||||||||||
Real estate:
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||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
100,940 | 31.05 | 93,904 | 31.04 | 88,628 | 26.47 | 78,443 | 23.79 | 73,500 | 22.00 | ||||||||||||||||||||||||||||||
Multi-family
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27,367 | 8.42 | 25,904 | 8.56 | 34,780 | 10.39 | 50,347 | 15.27 | 51,278 | 15.35 | ||||||||||||||||||||||||||||||
Commercial
|
63,913 | 19.66 | 57,848 | 19.12 | 66,812 | 19.95 | 68,960 | 20.91 | 75,570 | 22.63 | ||||||||||||||||||||||||||||||
Construction
|
16,477 | 5.07 | 4,518 | 1.49 | 16,350 | 4.88 | 14,532 | 4.41 | 9,886 | 2.96 | ||||||||||||||||||||||||||||||
Land and land development
|
11,870 | 3.65 | 15,762 | 5.21 | 8,220 | 2.45 | 8,304 | 2.52 | 10,849 | 3.25 | ||||||||||||||||||||||||||||||
Total real estate loans
|
220,567 | 67.85 | 197,936 | 65.42 | 214,790 | 64.14 | 220,586 | 66.90 | 221,083 | 66.19 | ||||||||||||||||||||||||||||||
Consumer
|
16,296 | 5.01 | 14,039 | 4.64 | 13,610 | 4.06 | 14,568 | 4.42 | 17,043 | 5.10 | ||||||||||||||||||||||||||||||
Commercial business
|
11,563 | 3.56 | 9,557 | 3.16 | 7,266 | 2.17 | 9,345 | 2.84 | 8,150 | 2.44 | ||||||||||||||||||||||||||||||
Total adjustable rate loans
|
248,426 | 76.42 | 221,532 | 73.22 | 235,666 | 70.38 | 244,499 | 74.16 | 246,276 | 73.73 | ||||||||||||||||||||||||||||||
Total loans
|
325,074 | 100.00 | % | 302,548 | 100.00 | % | 334,862 | 100.00 | % | 329,714 | 100.00 | % | 334,024 | 100.00 | % | |||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Loans in process
|
4,167 | 1,581 | 4,180 | 4,383 | 5,107 | |||||||||||||||||||||||||||||||||||
Deferred fees and discounts
|
446 | 357 | 346 | 431 | 499 | |||||||||||||||||||||||||||||||||||
Allowance for losses
|
2,770 | 3,702 | 3,697 | 3,737 | 5,343 | |||||||||||||||||||||||||||||||||||
Total loans receivable, net
|
$ | 317,691 | $ | 296,908 | $ | 326,639 | $ | 321,163 | $ | 323,075 |
Real Estate
|
||||||||||||||||||||||||||||||||||||||||
Mortgage(1)
|
Construction, Land and Land Development
|
Consumer
|
Commercial Business
|
Total
|
||||||||||||||||||||||||||||||||||||
Due During Years
Ending December 31, |
Amount
|
Weighted Average Rate
|
Amount
|
Weighted Average Rate
|
Amount
|
Weighted Average Rate
|
Amount
|
Weighted Average Rate
|
Amount
|
Weighted Average Rate
|
||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||||||
2011
|
$ | 8,265 | 5.82 | % | $ | 9,485 | 4.89 | % | $ | 1,702 | 4.39 | % | $ | 7,264 | 6.64 | % | $ | 26,716 | 5.62 | % | ||||||||||||||||||||
2012 to 2015
|
10,584 | 5.69 | 5,974 | 6.61 | 16,384 | 4.06 | 4,537 | 6.74 | 37,479 | 5.25 | ||||||||||||||||||||||||||||||
2016 and following
|
250,125 | 5.58 | 15,008 | 5.10 | 165 | 4.59 | 4.531 | 6.46 | 269,829 | 5.57 | ||||||||||||||||||||||||||||||
TOTAL
|
$ | 268,974 | 5.59 | % | $ | 30,467 | 5.33 | % | $ | 18,251 | 4.10 | % | $ | 16,332 | 6.62 | % | $ | 334,024 | 5.54 | % |
Year Ended December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
(In Thousands)
|
||||||||||||
Originations by Type:
|
||||||||||||
Adjustable rate:
|
||||||||||||
Real estate
|
||||||||||||
One- to four-family
|
$ | 11,041 | $ | 1,478 | $ | 7,729 | ||||||
Multi-family
|
18,758 | 15,183 | 1,776 | |||||||||
Commercial
|
19,979 | 13,955 | 14,577 | |||||||||
Construction, land and land development
|
10,675 | 4,568 | 7,848 | |||||||||
Non-real estate
|
||||||||||||
Consumer
|
--- | 1,233 | 5,441 | |||||||||
Commercial business
|
4,688 | 3,782 | 1,473 | |||||||||
Total adjustable rate
|
65,141 | 40,199 | 38,844 | |||||||||
Fixed rate:
|
||||||||||||
Real estate
|
||||||||||||
One- to four-family
|
32,701 | 75,716 | 68,700 | |||||||||
Multi-family
|
906 | --- | 81 | |||||||||
Commercial
|
8,434 | 2,410 | 828 | |||||||||
Construction, land and land development
|
3,689 | 3,098 | 3,696 | |||||||||
Non-real estate
|
||||||||||||
Consumer
|
564 | 3,339 | 526 | |||||||||
Commercial business
|
2,588 | 2,931 | 3,836 | |||||||||
Total fixed rate
|
48,882 | 87,494 | 77,667 | |||||||||
Total loans originated
|
114,023 | 127,693 | 116,511 | |||||||||
Sales and Repayments:
|
||||||||||||
Real estate loans sold
|
||||||||||||
One- to four-family
|
10,247 | 68,726 | 49,389 | |||||||||
Total loans sold
|
10,247 | 68,726 | 49,389 | |||||||||
Principal repayments
|
72,880 | 64,408 | 65,210 | |||||||||
Total loans sold and repayments
|
83,127 | 133,134 | 114,599 | |||||||||
Mortgage-backed securities:
|
||||||||||||
Principal repayments
|
1,125 | 534 | 633 | |||||||||
Increase in other items, net
|
49 | 51 | 50 | |||||||||
Net increase (decrease)
|
$ | 29,820 | $ | (5,924 | ) | $ | 1,329 |
Loans Delinquent For:
|
||||||||||||||||||||||||||||||||||||
60-89 Days
|
90 Days and Over
|
Total Delinquent Loans
|
||||||||||||||||||||||||||||||||||
Number
|
Amount
|
Percent of Loan
Category
|
Number
|
Amount
|
Percent of Loan
Category
|
Number
|
Amount
|
Percent of Loan
Category
|
||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||||||||||
One- to four-family
|
13 | $ | 715 | 0.57 | % | 28 | $ | 3,808 | 3.04 | % | 41 | $ | 4,523 | 3.61 | % | |||||||||||||||||||||
Multi-family
|
--- | --- | 0.00 | 1 | 2,289 | 4.28 | 1 | 2,289 | 4.28 | |||||||||||||||||||||||||||
Commercial
|
2 | 55 | 0.06 | 12 | 5,639 | 6.24 | 14 | 5,693 | 6.30 | |||||||||||||||||||||||||||
Construction and land development
|
--- | --- | 0.00 | 2 | 1,022 | 3.35 | 2 | 1,022 | 3.35 | |||||||||||||||||||||||||||
Consumer
|
2 | 39 | 0.21 | 6 | 134 | 0.73 | 8 | 173 | 0.95 | |||||||||||||||||||||||||||
Commercial Business
|
--- | --- | 0.00 | 4 | 251 | 1.54 | 4 | 251 | 1.54 | |||||||||||||||||||||||||||
Total
|
17 | $ | 809 | 0.24 | % | 53 | $ | 13,143 | 3.93 | % | 70 | $ | 13,951 | 4.18 | % |
December 31,
|
||||||||||||||||||||
2006
|
2007
|
2008
|
2009
|
2010
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Non-accruing loans:
|
||||||||||||||||||||
One- to four- family
|
$ | 6,851 | $ | 7,250 | $ | 4,781 | $ | 7,137 | $ | 3,760 | ||||||||||
Multi-family
|
328 | 341 | --- | 22 | 2,289 | |||||||||||||||
Commercial real estate
|
--- | 648 | 1,385 | 4,218 | 5,011 | |||||||||||||||
Construction and land development
|
93 | 1,210 | 1,326 | 1,120 | 1,022 | |||||||||||||||
Consumer
|
89 | 103 | 118 | 3 | 134 | |||||||||||||||
Commercial business
|
3 | 383 | 366 | 104 | 251 | |||||||||||||||
Total
|
7,364 | 9,935 | 7,976 | 12,604 | 12,467 | |||||||||||||||
Accruing loans delinquent more than 90 days:
|
||||||||||||||||||||
One- to-four-family
|
147 | --- | --- | --- | --- | |||||||||||||||
Multi-family
|
--- | --- | --- | --- | 48 | |||||||||||||||
Commercial real estate
|
--- | 59 | --- | --- | 628 | |||||||||||||||
Total
|
147 | 59 | --- | --- | 676 | |||||||||||||||
Non-accruing loans less than 90 days:
|
||||||||||||||||||||
One- to four-family
|
--- | --- | --- | --- | 2,633 | |||||||||||||||
Multi-family
|
--- | --- | --- | --- | 559 | |||||||||||||||
Commercial real estate
|
--- | --- | --- | --- | 213 | |||||||||||||||
Construction or development
|
--- | --- | --- | --- | 1,468 | |||||||||||||||
Consumer
|
--- | --- | --- | --- | 30 | |||||||||||||||
Total
|
--- | --- | --- | --- | 4,903 | |||||||||||||||
Foreclosed assets
|
||||||||||||||||||||
One- to four-family
|
2,228 | 1,565 | 1,192 | 1,686 | 1,071 | |||||||||||||||
Multi-family
|
--- | 1,022 | --- | --- | --- | |||||||||||||||
Commercial real estate
|
1,709 | 1,310 | 220 | 206 | 143 | |||||||||||||||
Construction or development
|
232 | 30 | --- | --- | --- | |||||||||||||||
Consumer
|
--- | 17 | --- | --- | --- | |||||||||||||||
Total
|
4,169 | 3,944 | 1,412 | 1,892 | 1,214 | |||||||||||||||
Total non-performing assets
|
$ | 11,680 | $ | 13,938 | $ | 9,388 | $ | 14,496 | $ | 19,260 | ||||||||||
Total as a percentage of total assets
|
3.17 | % | 4.08 | % | 2.52 | % | 3.91 | % | 5.18 | % | ||||||||||
Total assets
|
$ | 368,400 | $ | 342,010 | $ | 373,012 | $ | 371,050 | $ | 371,847 |
Year Ended December 31,
|
||||||||||||||||||||
2006
|
2007
|
2008
|
2009
|
2010
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Balance at beginning of period
|
$ | 2,852 | $ | 2,770 | $ | 3,702 | $ | 3,697 | $ | 3,737 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
One- to four-family
|
585 | 672 | 782 | 1,573 | 696 | |||||||||||||||
Multi-family
|
--- | --- | --- | 97 | --- | |||||||||||||||
Commercial real estate
|
274 | --- | --- | 336 | 211 | |||||||||||||||
Construction or development
|
278 | --- | 159 | 45 | 402 | |||||||||||||||
Consumer
|
4 | 4 | 32 | 91 | 5 | |||||||||||||||
Commercial business
|
8 | --- | 210 | 1,043 | 68 | |||||||||||||||
Total charge-offs
|
1,149 | 676 | 1,183 | 3,185 | 1,382 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
One- to four-family
|
--- | 10 | 49 | --- | 153 | |||||||||||||||
Commercial real estate
|
--- | --- | --- | --- | 37 | |||||||||||||||
Construction or development
|
46 | 27 | 25 | 25 | 35 | |||||||||||||||
Consumer
|
3 | 1 | 3 | 2 | 3 | |||||||||||||||
Commercial business
|
--- | --- | --- | 1 | --- | |||||||||||||||
Total recoveries
|
49 | 38 | 77 | 28 | 229 | |||||||||||||||
Net charge-offs
|
1,100 | 638 | 1,107 | 3,157 | 1,153 | |||||||||||||||
Additions charged to operations
|
1,018 | 1,570 | 1,102 | 3,197 | 2,759 | |||||||||||||||
Balance at end of period
|
$ | 2,770 | $ | 3,702 | $ | 3,697 | $ | 3,737 | $ | 5,343 | ||||||||||
Net charge-offs to average loans outstanding
|
0.34 | % | 0.21 | % | 0.35 | % | 0.98 | % | 0.35 | % | ||||||||||
Allowance for loan losses to non-performing assets
|
23.72 | % | 26.56 | % | 39.38 | % | 25.78 | % | 27.67 | % | ||||||||||
Allowance for loan losses to net loans at end of period
|
0.87 | % | 1.23 | % | 1.12 | % | 1.16 | % | 1.65 | % |
At December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2006
|
2007
|
2008
|
2009
|
2010
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount
of
Loan Loss
Allowance
|
Loan
Amounts
by
Category
|
Percent
of Loans
in Each
Category
to Total
Loans
|
Amount
of
Loan Loss
Allowance
|
Loan
Amounts
By
Category
|
Percent
of Loans
in Each
Category
to Total
Loans
|
Amount
of
Loan Loss
Allowance
|
Loan
Amounts
By
Category
|
Percent
of Loans
in Each
Category
to Total
Loans
|
Amount
of
Loan Loss
Allowance
|
Loan
Amounts
By
Category
|
Percent
of
Loans
in Each
Category
to Total
Loans
|
Amount
of
Loan Loss
Allowance
|
Loan
Amounts
By
Category
|
Percent
of Loans
in Each
Category
to Total
Loans
|
||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
$ | 1,201 | $ | 142,045 | 43.70 | % | $ | 1,917 | $ | 137,590 | 45.47 | % | $ | 1,791 | $ | 145,442 | 43.43 | % | $ | 1,705 | $ | 123,502 | 37.46 | % | $ | 1,015 | $ | 125,121 | 37.46 | % | ||||||||||||||||||||||||||||||
Multi-family
|
116 | 30,160 | 9.28 | 99 | 29,765 | 9.84 | 265 | 39,892 | 11.91 | 321 | 52,790 | 16.01 | 1,138 | 53,458 | 16.00 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate
|
459 | 74,710 | 22.98 | 297 | 71,601 | 23.67 | 802 | 90,606 | 27.06 | 801 | 90,571 | 27.47 | 2,061 | 90,395 | 27.06 | |||||||||||||||||||||||||||||||||||||||||||||
Land and land development
|
390 | 18,466 | 5.68 | 343 | 18,067 | 5.97 | 229 | 17,756 | 5.30 | 283 | 17,192 | 5.21 | 480 | 14,510 | 4.35 | |||||||||||||||||||||||||||||||||||||||||||||
Construction
|
260 | 19,228 | 5.91 | 323 | 9,741 | 3.22 | 190 | 11,436 | 3.42 | 102 | 13,002 | 3.94 | --- | 15,957 | 4.78 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer
|
126 | 19,530 | 6.01 | 127 | 16,457 | 5.44 | 143 | 15,453 | 4.62 | 110 | 16,019 | 4.86 | 84 | 18,251 | 5.46 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial business
|
120 | 20,935 | 6.44 | 494 | 19,327 | 6.39 | 201 | 14,277 | 4.26 | 384 | 16,638 | 5.05 | 565 | 16,332 | 4.89 | |||||||||||||||||||||||||||||||||||||||||||||
Unallocated
|
98 | --- | --- | 102 | --- | --- | 76 | --- | --- | 31 | --- | --- | --- | --- | --- | |||||||||||||||||||||||||||||||||||||||||||||
Total
|
$ | 2,770 | $ | 325,074 | 100.00 | % | $ | 3,702 | $ | 302,548 | 100.00 | % | $ | 3,697 | $ | 334,862 | 100.00 | % | $ | 3,737 | $ | 329,714 | 100.00 | % | $ | 5,343 | $ | 334,024 | 100.00 | % |
December 31,
|
||||||||||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||||||||||
Carrying
Value
|
% of
Total
|
Carrying
Value
|
% of
Total
|
Carrying
Value
|
% of
Total
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
Federal agency obligations
|
$ | 509 | 4.19 | % | $ | 536 | 4.46 | % | $ | 2,096 | 16.49 | % | ||||||||||||
Municipal bonds
|
7,639 | 62.90 | 7,502 | 62.33 | 7,035 | 55.33 | ||||||||||||||||||
Subtotal
|
8,148 | 67.09 | 8,038 | 66.79 | 9,131 | 71.82 | ||||||||||||||||||
Other:
|
||||||||||||||||||||||||
Federal Home Loan Bank stock
|
3,997 | 32.91 | 3,997 | 33.21 | 3,583 | 28.18 | ||||||||||||||||||
Total debt securities and Federal Home Loan Bank stock
|
$ | 12,145 | 100.00 | % | $ | 12,035 | 100.00 | % | $ | 12,714 | 100.00 | % | ||||||||||||
Average remaining life of debt securities
|
3.40 years
|
5.07 years
|
4.07 years
|
|||||||||||||||||||||
Other interest-earning assets:
|
||||||||||||||||||||||||
Interest-bearing deposits with Federal Home Loan Bank
|
$ | 9,179 | 100.00 | % | $ | 4,817 | 100.00 | % | $ | 2,980 | 100.00 | % | ||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
Fannie Mae certificates
|
$ | 1,814 | 48.96 | % | $ | 1,773 | 53.61 | % | $ | 1,473 | 55.09 | % | ||||||||||||
Freddie Mac certificates
|
1,891 | 51.04 | 1,534 | 46.39 | 1,201 | 44.91 | ||||||||||||||||||
Total mortgage-backed securities
|
$ | 3,705 | 100.00 | % | $ | 3,307 | 100.00 | % | $ | 2,674 | 100.00 | % |
December 31, 2010
|
||||||||||||||||||||
Less than 1 year
|
1 to 5 Years
|
5 to 10 Years
|
Over
10 Years
|
Total
Investment Securities
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Federal agency obligations
|
$ | 520 | $ | 1,576 | $ | --- | $ | --- | $ | 2,096 | ||||||||||
Municipal bonds
|
767 | 3,311 | 2,461 | 497 | 7,035 | |||||||||||||||
Fannie Mae certificates
|
--- | --- | 1,472 | --- | 1,473 | |||||||||||||||
Freddie Mac certificates
|
--- | --- | 1,201 | --- | 1,201 | |||||||||||||||
Total investment securities
|
$ | 1,287 | $ | 4,886 | $ | 5,134 | $ | 497 | $ | 11,805 | ||||||||||
Weighted average yield
|
3.64 | % | 3.20 | % | 4.76 | % | 5.04 | % | 3.93 | % |
Year Ended December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
(Dollars in Thousands)
|
||||||||||||
Opening balance
|
$ | 232,030 | $ | 258,587 | $ | 277,866 | ||||||
Deposits
|
1,327,719 | 1,363,514 | 1,578,438 | |||||||||
Withdrawals
|
(1,308,010 | ) | (1,350,295 | ) | (1,549,254 | ) | ||||||
Interest credited
|
6,848 | 6,060 | 4,408 | |||||||||
Ending balance
|
$ | 258,587 | $ | 277,866 | $ | 311,458 | ||||||
Net increase (decrease)
|
$ | 26,557 | $ | 19,279 | $ | 33,592 | ||||||
Percent increase
|
11.45 | % | 7.46 | % | 12.09 | % |
At December 31,
|
|||||||||||||||||||||||||
2008
|
2009
|
2010
|
|||||||||||||||||||||||
Amount
|
Percent of Total
|
Amount
|
Percent of Total
|
Amount
|
Percent of Total
|
||||||||||||||||||||
(Dollars in Thousands)
|
|||||||||||||||||||||||||
Transaction and Savings Deposits:
|
|||||||||||||||||||||||||
Non-interest-bearing
|
$ | 16,739 | 6.47 | % | $ | 21,359 | 7.68 | % | $ | 25,023 | 8.03 | % | |||||||||||||
Savings accounts (0.10% - 1.00% at December 31, 2010)
|
22,796 | 8.81 | 27,099 | 9.75 | 25,297 | 8.12 | |||||||||||||||||||
NOW Accounts (0.00% - 1.50% at December 31, 2010)
|
26,520 | 10.25 | 30,027 | 10.80 | 31,768 | 10.20 | |||||||||||||||||||
Money Market Accounts (0.25% - 1.40% at December 31, 2010)
|
15,486 | 5.98 | 29,701 | 10.69 | 63,919 | 20.52 | |||||||||||||||||||
Total Non-Certificates
|
81,541 | 31.51 | 108,186 | 38.92 | 146,007 | 46.87 | |||||||||||||||||||
Certificates:
|
|||||||||||||||||||||||||
0.00 - 1.99% | 3,037 | 1.17 | 63,177 | 22.73 | 74,582 | 23.95 | |||||||||||||||||||
2.00 - 3.99% | 105,400 | 40.73 | 74,326 | 26.74 | 79,303 | 25.46 | |||||||||||||||||||
4.00 - 5.99% | 68,590 | 26.51 | 32,158 | 11.57 | 11,560 | 3.71 | |||||||||||||||||||
6.00 - 7.99% | 19 | 0.01 | 19 | 0.01 | 6 | 0.00 | |||||||||||||||||||
Total certificates
|
177,046 | 68.42 | 169,680 | 61.05 | 165,451 | 53.12 | |||||||||||||||||||
Accrued interest
|
169 | 0.07 | 75 | 0.03 | 33 | 0.01 | |||||||||||||||||||
Total deposits with interest
|
$ | 258,756 | 100.00 | % | $ | 277,941 | 100.00 | % | $ | 311,491 | 100.00 | % |
0.00- 1.99% | 2.00- 3.99% | 4.00- 5.99% | 6.00- 7.99% |
Total
|
Percent
of Total
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Certificate accounts maturing in quarter ending:
|
||||||||||||||||||||||||
March 31, 2011
|
$ | 17,681 | $ | 7,171 | $ | 4,309 | $ | --- | $ | 29,161 | 17.62 | % | ||||||||||||
June 30, 2011
|
18,254 | 3,876 | 40 | --- | 22,170 | 13.40 | ||||||||||||||||||
September 30, 2011
|
14,981 | 3,704 | 335 | --- | 19,020 | 11.50 | ||||||||||||||||||
December 31, 2011
|
10,772 | 4,349 | 1,371 | --- | 16,492 | 9.97 | ||||||||||||||||||
March 31, 2012
|
3,934 | 2,430 | 705 | --- | 7,069 | 4.27 | ||||||||||||||||||
June 30, 2012
|
1,043 | 3,628 | 557 | 1 | 5,229 | 3.16 | ||||||||||||||||||
September 30, 2012
|
1,846 | 5,215 | 153 | --- | 7,214 | 4.36 | ||||||||||||||||||
December 31, 2012
|
1,099 | 6,598 | 315 | --- | 8.012 | 4.84 | ||||||||||||||||||
March 31, 2013
|
159 | 2,911 | 236 | --- | 3,306 | 2.00 | ||||||||||||||||||
June 30, 2013
|
51 | 2,931 | 182 | --- | 3,164 | 1.91 | ||||||||||||||||||
September 30, 2013
|
668 | 3,565 | 691 | --- | 4,923 | 2.98 | ||||||||||||||||||
December 31, 2013
|
3,748 | 12 | 1,372 | --- | 5,132 | 3.10 | ||||||||||||||||||
Thereafter
|
346 | 32,914 | 1,299 | --- | 34,559 | 20.89 | ||||||||||||||||||
Total
|
$ | 74,582 | $ | 79,303 | $ | 11,565 | $ | 1 | $ | 165,451 | 100.00 | % | ||||||||||||
Percent of total
|
45.08 | % | 47.93 | % | 6.99 | % | 0.00 | % | 100.00 | % | 100.00 | % |
Maturity
|
||||||||||||||||||||
3 Months
or Less
|
Over
3 to 6
Months
|
Over
6 to 12
Months
|
Over
12 months
|
Total
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Certificates of deposit less than $100,000, excluding public funds
|
$ | 15,497 | $ | 12,189 | $ | 20,747 | $ | 42,535 | $ | 90,968 | ||||||||||
Certificates of deposit of $100,000 or more, excluding public funds
|
12,119 | 9,903 | 14,711 | 34,662 | 71,395 | |||||||||||||||
Public funds
|
1,545 | 77 | 54 | 1,412 | 3,088 | |||||||||||||||
Total certificates of deposit
|
$ | 29,161 | $ | 22,169 | $ | 35,512 | $ | 78,609 | $ | 165,451 |
Year Ended December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
(Dollars in Thousands)
|
||||||||||||
Maximum Balance - Federal Home Loan Bank Advances
|
$ | 78,756 | $ | 71,500 | $ | 57,000 | ||||||
Average Balance - Federal Home Loan Bank Advances
|
$ | 76,025 | $ | 62,708 | $ | 35,667 |
December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
(Dollars in Thousands)
|
||||||||||||
Federal Home Loan Bank Advances
|
$ | 78,500 | $ | 57,000 | $ | 22,500 | ||||||
Weighted average interest rate of Federal Home Loan Bank Advances
|
4.02 | % | 3.59 | % | 2.78 | % |
·
|
For small Risk Category I banks, the rates would range from 5-9 basis points.
|
·
|
The proposed rates for small institutions in Risk Categories II, III and IV would be 14, 23 and 35 basis points, respectively.
|
·
|
For large institutions and large, highly complex institutions, the proposed rate schedule ranges from 5 to 35 basis points.
|
Item 1A. Risk Factors
|
Item 1B. Unresolved Staff Comments
|
Item 2. Properties
|
Item 4. (Removed and Reserved)
|
Item 4.5 Executive Officers of the Registrant
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
Issuer Purchases of Equity Securities
|
||||||||||||||||
Month of Purchase
|
Total Number of
Shares Purchased(1)
|
Average Price
Paid per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plan(2)
|
Maximum Number
(or Approximate
Dollar Value) of
Shares that May
Yet Be Purchased
Under the Plan(2)
|
||||||||||||
October 1 – October 31, 2010
|
--- | --- | --- | 52,817 | ||||||||||||
November 1 – November 30, 2010
|
--- | --- | --- | 52,817 | ||||||||||||
December 1 – December 31, 2010
|
--- | --- | --- | 52,817 | ||||||||||||
Total
|
--- | --- | --- | 52,817 |
Item 6. Selected Financial Data
|
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation
|
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
|
Item 8. Financial Statements and Supplementary Data
|
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A. Controls and Procedures
|
·
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
·
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
·
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
Item 9B. Other Information
|
Item 10. Directors, Executive Officers and Corporate Governance
|
Item 11. Executive Compensation
|
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Plan Category
|
Number of securities to
be issued upon exercise
of outstanding options
warrants and rights
(a)
|
Weighted-average
exercise price of
outstanding options
warrants and rights
(b)
|
Number of Securities
remaining available for
future issuance under
equity compensation plans
(excluding securities reflected in
column (a))
(c)
|
Equity compensation plans approved by security holders(1)
|
36,785 (2)
|
17.82 (3)
|
77,250 (4)
|
Equity compensation plans not approved by security holders
|
---
|
---
|
---
|
(1) LSB Financial Corp.’s 1995 Stock Option and Incentive Plan terminated on August 22, 2005 so no further options may be granted under the 1995 Stock Option and Incentive Plan. LSB Financial Corp.’s Recognition and Retention Plan terminated by its terms on August 22, 2005, so no further awards may be made under the Recognition and Retention Plan.
(2) Includes 33,035 shares under LSB Financial Corp.’s 1995 Stock Option and Incentive Plan, 3,750 shares under the LSB Financial Corp. 2007 Stock Option and Incentive Plan and no shares under LSB Financial Corp.’s Recognition and Retention Plan.
(3) The total in Column (b) includes only the weighted-average price of stock options, as the restricted shares awarded under the Recognition and Retention Plan have no exercise price and no shares have been awarded under the Recognition and Retention Plan.
(4) The total in Column (c) is the number of shares reserved for issuance under the LSB Financial Corp. 2007 Stock Option and Incentive Plan excluding the 3,750 shares included in Column (a).
|
Item 13. Certain Relationships and Related Transactions, and Director Independence
|
Item 14. Principal Accountant Fees and Services
|
Annual Report Page No(s).
|
||
Financial Statements:
|
||
Report of BKD, LLP, Independent Registered Public Accounting Firm
|
31
|
|
Consolidated Balance Sheets at December 31, 2010 and 2009
|
32
|
|
Consolidated Statements of Income for the Years Ended December 31, 2010 and 2009
|
33
|
|
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2010 and 2009
|
34
|
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2010 and 2009
|
35
|
|
Notes to Consolidated Financial Statements
|
36-64
|
|
Financial Statement Schedules:
All schedules are omitted as the required information either is not applicable or is included in the consolidated financial statements or related notes.
|
LSB FINANCIAL CORP.
|
||||
Date: March 16, 2011
|
By:
|
/s/ Randolph F. Williams | ||
Randolph F. Williams, President,
|
||||
Chief Executive Officer and Director
|
||||
(Duly Authorized Representative)
|
/s/ Mariellen M. Neudeck | /s/ Randolph F. Williams | |
Mariellen M. Neudeck, Chairman of the Board
|
Randolph F. Williams, President, Chief Executive Officer and Director
(Principal Executive and Operating Officer)
|
|
|
||
Date: March 16, 2011
|
Date: March 16, 2011
|
|
/s/ James A. Andrew | /s/ Kenneth P. Burns | |
James A. Andrew, Director
|
Kenneth P. Burns, Director
|
|
Date: March 16, 2011
|
Date: March 16, 2011
|
|
/s/ Philip W. Kemmer | /s/ Stephen E. Belter | |
Philip W. Kemmer, Director
|
Stephen E. Belter, Director
|
|
Date: March 16, 2011
|
Date: March 16, 2011
|
|
/s/ Thomas R. McCully | ||
Jeffrey A. Poxon, Director
|
Thomas R. McCully, Director
|
|
Date: March , 2011
|
Date: March 16, 2011
|
|
/s/ Mary Jo David | ||
Mary Jo David, Vice President, Chief Financial Officer, Secretary-Treasurer and Director
(Principal Financial and Accounting Officer)
|
Charles W. Shook, Director
|
|
Date: March 16, 2011
|
Date: March , 2011
|
Regulation
S-K Exhibit
Number
|
Document
|
|
3.1
|
Articles of Incorporation, filed on September 21, 1994 as an exhibit to Registrant’s Registration Statement on Form S-1 (File No. 33-84266), are incorporated by reference.
|
|
3.2
|
Bylaws, as amended and restated, filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on July 22, 2009, are incorporated herein by reference.
|
|
4
|
Registrant’s Specimen Stock Certificate, filed on September 21, 1994 as an exhibit to Registrant’s Registration Statement on Form S-1 (File No. 33-84266), is incorporated herein by reference.
|
|
10.1*
|
Registrant’s 1995 Stock Option and Incentive Plan, filed as Exhibit 10.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, is incorporated herein by reference.
|
|
10.2*
|
Registrant’s 1995 Recognition and Retention Plan, filed as Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, is incorporated herein by reference.
|
|
10.3*
|
Form of 1995 Stock Option and Incentive Plan Non-Qualified Stock Option Agreement, filed as Exhibit 10.4 to the Registrant’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004, is incorporated herein by reference.
|
|
10.4*
|
Form of 1995 Stock Option and Incentive Plan Incentive Stock Option Agreement, filed as Exhibit 10.5 to the Registrant’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004, is incorporated herein by reference.
|
|
10.5*
|
Form of Recognition and Retention Plan Restricted Stock Agreement, filed as Exhibit 10.6 to the Registrant’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004, is incorporated herein by reference.
|
|
10.6*
|
Deferred Compensation Agreement between Lafayette Savings Bank and Randolph F. Williams, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K for the event occurring on September 29, 2005, is incorporated herein by reference.
|
|
10.7*
|
Amended and Restated Employment Agreement dated February 27, 2008 between LSB Financial Corp. and Randolph F. Williams filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on March 3, 2008, is incorporated herein by reference.
|
|
10.8*
|
Amended and Restated Employment Agreement dated February 27, 2006 between LSB Financial Corp. and Mary Jo David filed as Exhibit 10.2 to the Registrant’s 8-K filed on March 3, 2008, is incorporated herein by reference.
|
|
10.9*
|
LSB Financial Corp. 2007 Stock Option and Incentive Plan, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on April 24, 2007, is incorporated herein by reference.
|
|
10.10*
|
Form of 2007 Stock Option and Incentive Plan Incentive Stock Option Agreement, filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2007, is incorporated herein by reference.
|
|
10.11*
|
Form of 2007 Stock Option and Incentive Plan Non-qualified Stock Option Agreement, filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2007, is incorporated herein by reference.
|
|
10.12*
|
Form of Agreement for Restricted Stock Granted under LSB Financial Corp. 2007 Stock Option and Incentive Plan, filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2007, is incorporated herein by reference.
|
|
13
|
Annual Report to Shareholders for the Year Ended December 31, 2010.
|
|
21
|
Subsidiaries of Registrant.
|
|
23
|
Consent of BKD, LLP, Independent Registered Public Accounting Firm.
|
|
31.1
|
Rule 13a - 14(a) Certification (Chief Executive Officer).
|
|
31.2
|
Rule 13a - 14(a) Certification (Chief Financial Officer).
|
|
32
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
* Indicates exhibits that describe or evidence management contracts and plans required to be filed as exhibits.
|
TABLE OF CONTENTS
|
||
Letter to Shareholders
|
i
|
|
Selected Financial Information
|
1
|
|
Management’s Discussion and Analysis
|
3
|
|
Disclosure Regarding Forward-Looking Statements
|
28
|
|
Auditors’ Report
|
29
|
|
Consolidated Financial Statements
|
32
|
|
Directors and Executive Officers
|
65
|
|
Shareholder Information
|
67
|
FINANCIAL HIGHLIGHTS
|
||
December 31, 2010
|
||
(Dollars in Thousands)
|
||
Total assets
|
$371,847
|
|
Total loans, net of allowance
|
323,075
|
|
Securities and short-term investments
|
14,785
|
|
Deposits
|
311,458
|
|
Borrowings
|
22,500
|
|
Shareholders’ equity
|
35,577
|
|
Shareholders’ equity as percent of assets
|
9.56%
|
|
Net Income
|
$2,117
|
Respectfully,
|
|
![]() |
|
Randolph F. Williams
|
|
President & Chief Executive Officer
|
December 31,
|
||||||||||||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Selected Financial Condition Data:
|
||||||||||||||||||||
Total assets
|
$ | 371,847 | $ | 371,050 | $ | 373,012 | $ | 342,010 | $ | 368,400 | ||||||||||
Loans receivable, including loans held for sale, net
|
323,075 | 321,163 | 326,639 | 296,908 | 317,691 | |||||||||||||||
Securities available-for-sale
|
11,805 | 11,345 | 11,853 | 13,221 | 16,316 | |||||||||||||||
Short-term investments
|
2,980 | 4,817 | 9,179 | 4,846 | 8,336 | |||||||||||||||
Deposits
|
311,458 | 277,866 | 258,587 | 232,030 | 255,304 | |||||||||||||||
Total borrowings
|
22,500 | 57,000 | 78,500 | 74,256 | 76,618 | |||||||||||||||
Shareholders’ equity
|
35,577 | 33,884 | 34,075 | 33,932 | 34,840 |
December 31,
|
||||||||||||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||||||
(Dollars in Thousands, except share data)
|
||||||||||||||||||||
Selected Operations Data:
|
||||||||||||||||||||
Total interest income
|
$ | 18,895 | $ | 19,659 | $ | 21,319 | $ | 22,882 | $ | 23,263 | ||||||||||
Total interest expense
|
6,115 | 9,335 | 11,286 | 11,655 | 11,142 | |||||||||||||||
Net interest income
|
12,780 | 10,324 | 10,033 | 11,227 | 12,121 | |||||||||||||||
Provision for loan losses
|
2,759 | 3,197 | 1,102 | 1,570 | 1,018 | |||||||||||||||
Net interest income after provision for loan losses
|
10,021 | 7,127 | 8,931 | 9,657 | 11,103 | |||||||||||||||
Deposit account service charges
|
1,522 | 1,525 | 1,736 | 1,838 | 1,766 | |||||||||||||||
Gain on sales of mortgage loans
|
1,019 | 1,386 | 117 | 201 | 214 | |||||||||||||||
Gain on call of securities
|
--- | --- | --- | 6 | --- | |||||||||||||||
Loss on real estate owned
|
(441 | ) | (183 | ) | (156 | ) | (1,097 | ) | --- | |||||||||||
Other non-interest income
|
980 | 1,059 | 1,194 | 1,098 | 858 | |||||||||||||||
Total non-interest income
|
3,080 | 3,787 | 2,891 | 2,046 | 2,838 | |||||||||||||||
Total non-interest expense
|
9,932 | 10,503 | 9,286 | 9,322 | 8,593 | |||||||||||||||
Income before taxes
|
3,169 | 411 | 2,536 | 2,381 | 5,348 | |||||||||||||||
Income taxes
|
1,052 | (49 | ) | 796 | 807 | 1,998 | ||||||||||||||
Net income
|
$ | 2,117 | $ | 460 | $ | 1,740 | $ | 1,574 | $ | 3,350 | ||||||||||
Earnings per share
|
$ | 1.36 | $ | 0.30 | $ | 1.12 | $ | 1.00 | $ | 2.08 | ||||||||||
Earnings per share, assuming dilution
|
1.36 | 0.30 | 1.12 | 0.99 | 2.07 | |||||||||||||||
Dividends paid per share
|
0.25 | 0.50 | 1.00 | 0.90 | 0.68 |
December 31,
|
||||||||||||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||||||
Selected Financial Ratios and Other Data:
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on assets (ratio of net income to average total assets)
|
0.56 | % | 0.12 | % | 0.48 | % | 0.45 | % | 0.91 | % | ||||||||||
Return on equity (ratio of net income to average equity)
|
6.09 | 1.34 | 5.08 | 4.52 | 9.88 | |||||||||||||||
Average interest rate spread during period
|
3.65 | 2.82 | 2.82 | 3.25 | 3.33 | |||||||||||||||
Net interest margin(1)
|
3.68 | 2.94 | 2.97 | 3.42 | 3.48 | |||||||||||||||
Operating expense to average total assets
|
2.62 | 2.81 | 2.58 | 2.66 | 2.33 | |||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
1.02 | x | 1.04 | x | 1.05 | x | 1.05 | x | 1.05 | x | ||||||||||
|
||||||||||||||||||||
Quality Ratios:
|
||||||||||||||||||||
Non-performing assets to total assets at end of period
|
5.18 | % | 3.91 | % | 2.52 | % | 4.08 | % | 3.17 | % | ||||||||||
Allowance for loan losses to non-performing loans
|
29.53 | 29.65 | 46.35 | 37.04 | 23.72 | |||||||||||||||
Allowance for loan losses to loans receivable
|
1.65 | 1.16 | 1.12 | 1.23 | 0.86 | |||||||||||||||
Capital Ratios:
|
||||||||||||||||||||
Shareholders’ equity to total assets at end of period
|
9.56 | 9.13 | 9.14 | 9.92 | 9.46 | |||||||||||||||
Average shareholders’ equity to average total assets
|
9.18 | 9.17 | 9.53 | 9.92 | 9.19 | |||||||||||||||
Dividend payout ratio
|
18.38 | 168.48 | 89.43 | 90.00 | 32.69 | |||||||||||||||
Other Data:
|
||||||||||||||||||||
Number of full-service offices
|
5 | 5 | 5 | 5 | 5 |
(1)
|
Net interest income divided by average interest-earning assets.
|
·
|
Residential mortgage loans (including loans held for sale) increasing by 1.3% from $123.5 million to $125.1 million.
|
·
|
All other real estate loans, net, including multi-family, land, land development, construction and commercial real estate loans increased 3.0% from $169.2 million to $174.3 million net of undisbursed loans.
|
·
|
Commercial business lending decreased 1.8% from $16.6 million to $16.3 million.
|
·
|
At December 31, 2010, 73.7% of our gross loan portfolio had adjustable interest rates.
|
·
|
Total deposit accounts increased 12.1% from $277.9 million at December 31, 2009 to $311.5 million at December 31, 2010, with core deposits increasing 35.0% from $108.2 million to $146.0 million over the same period.
|
·
|
We expect to face increased regulation of our industry. Compliance with such regulation may increase our costs and limit our ability to pursue business opportunities.
|
·
|
Our ability to assess the creditworthiness of our customers may be impaired if the models and approaches we use to select, manage and underwrite our customers become less predictive of future behaviors.
|
·
|
The process we use to estimate losses inherent in our credit exposure requires difficult, subjective and complex judgments, including forecasts of economic conditions and how these economic predictions might impair the ability of our borrowers to repay their loans, which may no longer be capable of accurate estimation which may, in turn, impact the reliability of the process.
|
·
|
Competition in our industry could intensify as a result of the increasing consolidation of financial services companies in connection with current market conditions.
|
·
|
We may be required to pay even higher deposit insurance premiums because market developments continue to significantly deplete the insurance fund of the Federal Deposit Insurance Corporation and reduce the ratio of reserves to insured deposits.
|
SELECTED FINANCIAL CONDITION DATA
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
December 31,
|
December 31,
|
$ | % | |||||||||||||
2010
|
2009
|
Difference
|
Difference
|
|||||||||||||
Total assets
|
$ | 371,847 | $ | 371,050 | $ | 797 | 0.21 | % | ||||||||
Loans receivable, including loans held for sale, net
|
323,075 | 321,163 | 1,912 | 0.60 | ||||||||||||
Residential mortgage loans
|
125,121 | 123,502 | 1,619 | 1.31 | ||||||||||||
Home equity lines of credit
|
17,043 | 14,698 | 2,345 | 15.95 | ||||||||||||
Other real estate loans net undisbursed portion of loans
|
174,320 | 169,172 | 5,149 | 3.04 | ||||||||||||
Commercial business loans
|
16,332 | 16,638 | (306 | ) | (1.84 | ) | ||||||||||
Consumer loans
|
1,208 | 1,321 | (113 | ) | (8.55 | ) | ||||||||||
Loans sold
|
49,389 | 68,726 | (19,337 | ) | (28.14 | ) | ||||||||||
Non-performing loans
|
12,466 | 12,554 | (116 | ) | (0.92 | ) | ||||||||||
Loans past due 90 days, still accruing
|
676 | --- | 676 | --- | ||||||||||||
Loans less than 90 days past due, not accruing
|
4,903 | --- | 4,980 | --- | ||||||||||||
Other real estate owned
|
1,214 | 1,892 | (678 | ) | (35.84 | ) | ||||||||||
Non-performing assets
|
19,260 | 14,446 | 4,862 | 33.66 | ||||||||||||
Available-for-sale securities
|
11,805 | 11,345 | 460 | 4.05 | ||||||||||||
Short-term investments
|
2,980 | 4,817 | (1,837 | ) | (38.14 | ) | ||||||||||
Deposits
|
311,458 | 277,866 | 33,592 | 12.09 | ||||||||||||
Core deposits
|
146,007 | 108,186 | 37,821 | 34.96 | ||||||||||||
Time accounts
|
165,451 | 169,680 | (4,229 | ) | (2.49 | ) | ||||||||||
Brokered deposits
|
16,984 | 27,300 | (10,316 | ) | (37.79 | ) | ||||||||||
FHLB advances
|
22,500 | 57,000 | (34,500 | ) | (60.53 | ) | ||||||||||
Shareholders’ equity (net)
|
35,577 | 33,884 | 1,693 | 5.00 |
2010
|
2009
|
|||||||||||||||||||||||
|
Average Outstanding Balance
|
Interest Earned/ Paid
|
Yield/ Rate
|
Average Outstanding Balance
|
Interest Earned/ Paid
|
Yield/ Rate
|
||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Loans receivable(1)
|
$ | 327,372 | $ | 18,401 | 5.62 | % | $ | 322,457 | $ | 19,106 | 5.93 | % | ||||||||||||
Mortgage-backed securities
|
2,923 | 112 | 3.83 | 3,472 | 160 | 4.61 | ||||||||||||||||||
Other investments
|
13,076 | 307 | 2.36 | 21,831 | 326 | 1.49 | ||||||||||||||||||
FHLB stock
|
3,928 | 75 | 1.91 | 3,997 | 67 | 1.68 | ||||||||||||||||||
Total interest-earning assets
|
347,299 | 18,895 | 5.44 | 351,757 | 19,659 | 5.59 | ||||||||||||||||||
Non-interest earning assets
|
31,625 | 22,399 | ||||||||||||||||||||||
Total assets
|
$ | 378,923 | $ | 374,156 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
Savings deposits
|
$ | 25,934 | 109 | 0.42 | $ | 25,773 | 243 | 0.94 | ||||||||||||||||
Demand and NOW deposits
|
105,879 | 674 | 0.64 | 72,528 | 532 | 0.73 | ||||||||||||||||||
Time deposits
|
174,024 | 4,168 | 2.40 | 176,057 | 5,888 | 3.34 | ||||||||||||||||||
Borrowings
|
35,667 | 1,164 | 3.26 | 62,708 | 2,672 | 4.26 | ||||||||||||||||||
Total interest-bearing liabilities
|
341,504 | 6,115 | 1.79 | 337,066 | 9,335 | 2.77 | ||||||||||||||||||
Other liabilities
|
2,648 | 2,778 | ||||||||||||||||||||||
Total liabilities
|
344,152 | 339,844 | ||||||||||||||||||||||
Shareholders’ equity
|
34,771 | 34,311 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 378,923 |
|
$ | 374,156 |
|
||||||||||||||||||
Net interest income
|
$ | 12,780 | $ | 10,324 | ||||||||||||||||||||
Net interest rate spread
|
3.65 | % | 2.82 | % | ||||||||||||||||||||
Net earning assets
|
$ | 5,795 | $ | 14,691 | ||||||||||||||||||||
Net yield on average interest-earning assets
|
3.68 | % | 2.94 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
1.02 | x | 1.04 | x |
(1) Calculated net of deferred loan fees, loan discounts, loans in process and loss reserves.
|
Year Ended December 31,
|
||||||||||||||||||||||||
2010 vs. 2009
|
2009 vs. 2008
|
|||||||||||||||||||||||
Increase (Decrease) Due to
|
Total Increase
|
Increase (Decrease) Due to
|
Total Increase
|
|||||||||||||||||||||
Volume
|
Rate
|
(Decrease) |
Volume
|
Rate
|
(Decrease) | |||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$ | 280 | $ | (985 | ) | $ | (705 | ) | $ | 610 | $ | (1,996 | ) | $ | (1,386 | ) | ||||||||
Mortgage-backed securities
|
(23 | ) | (25 | ) | (48 | ) | (33 | ) | (20 | ) | (53 | ) | ||||||||||||
Other investments
|
(157 | ) | 138 | (19 | ) | 107 | (193 | ) | (86 | ) | ||||||||||||||
FHLB stock
|
(1 | ) | 9 | 8 | -- | (135 | ) | (135 | ) | |||||||||||||||
Total interest-earning assets
|
$ | 99 | $ | (863 | ) | $ | (764 | ) | $ | 684 | $ | (2,344 | ) | $ | (1,660 | ) | ||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings deposits
|
$ | 1 | $ | (135 | ) | $ | (134 | ) | $ | 36 | $ | (30 | ) | $ | 6 | |||||||||
Demand deposits and NOW accounts
|
234 | (92 | ) | 142 | 84 | (66 | ) | 18 | ||||||||||||||||
Time deposits
|
(49 | ) | (1,671 | ) | (1,720 | ) | 531 | (1,573 | ) | (1,042 | ) | |||||||||||||
Borrowings
|
(1,076 | ) | (432 | ) | (1,508 | ) | (591 | ) | (343 | ) | (934 | ) | ||||||||||||
Total interest-bearing liabilities
|
$ | (890 | ) | $ | (2,330 | ) | $ | (3,220 | ) | $ | 60 | $ | (2,012 | ) | $ | (1,952 | ) | |||||||
Net interest income
|
$ | 2,456 | $ | 292 |
12/31/10
|
12/31/09
|
12/31/08
|
||||||||||
(Dollars in thousands) | ||||||||||||
Loans delinquent 30-59 days
|
$ | 559 | $ | 677 | $ | 1,483 | ||||||
Loans delinquent 60-89 days
|
808 | 3,169 | 3,187 | |||||||||
Total delinquencies
|
1,367 | 3,846 | 4,670 | |||||||||
Accruing loans past due 90 days
|
676 | --- | --- | |||||||||
Non-accruing loans
|
17,370 | 12,554 | 7,976 | |||||||||
Total non-performing loans
|
18,046 | 12,554 | 7,976 | |||||||||
OREO
|
1,214 | 1,892 | 1,412 | |||||||||
Total non-performing assets
|
$ | 19,260 | $ | 14,446 | $ | 9,388 |
Change in
|
Board Limit
|
At December 31, 2010
|
At December 31, 2009
|
|||||||||||||
Interest Rate
|
Post-shock
|
Post-shock
|
Change
|
Post-shock
|
Change
|
|||||||||||
(Basis Points)
|
NPV Ratio
|
NPV Ratio
|
(Basis Points)
|
NPV Ratio
|
(Basis Points)
|
|||||||||||
300 | bp | 6.00 | % | 11.90 | % | (58 | ) | 10.70 | % | (139 | ) | |||||
200 | 7.00 | 12.45 | (3 | ) | 11.46 | (62 | ) | |||||||||
100 | 8.00 | 12.64 | 16 | 11.87 | (22 | ) | ||||||||||
0 | 8.00 | 12.48 | --- | 12.09 | --- | |||||||||||
-100 | 8.00 | 12.34 | (14 | ) | 12.31 | 22 |
Interest Income
|
Interest Expense
|
Net Interest Income
|
Provision For Loan Losses
|
Net Income
|
Basic Earnings Per Share
|
Diluted Earnings Per Share
|
||||||||||||||||||||||
2010
|
||||||||||||||||||||||||||||
March
|
$ | 4,671 | $ | 1,723 | $ | 2,948 | $ | 434 | $ | 532 | $ | 0.34 | $ | 0.34 | ||||||||||||||
June
|
4,721 | 1,572 | 3,149 | 465 | 457 | 0.29 | 0.29 | |||||||||||||||||||||
September
|
4,877 | 1,489 | 3,388 | 910 | 526 | 0.34 | 0.34 | |||||||||||||||||||||
December
|
4,626 | 1,331 | 3,295 | 950 | 602 | 0.39 | 0.39 | |||||||||||||||||||||
$ | 18,895 | $ | 6,115 | $ | 12,780 | $ | 2,759 | $ | 2,117 | |||||||||||||||||||
2009
|
||||||||||||||||||||||||||||
March
|
$ | 4,973 | $ | 2,586 | $ | 2,387 | $ | 569 | $ | 302 | $ | 0.20 | $ | 0.20 | ||||||||||||||
June
|
5,059 | 2,523 | 2,536 | 389 | 312 | 0.20 | 0.20 | |||||||||||||||||||||
September
|
4,874 | 2,262 | 2,612 | 865 | 24 | 0.02 | 0.02 | |||||||||||||||||||||
December
|
4,753 | 1,964 | 2,789 | 1,375 | (178 | ) | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
$ | 19,659 | $ | 9,335 | $ | 10,324 | $ | 3,197 | $ | 460 |
·
|
the strength of the United States economy in general and the strength of the local economies in which we conduct our operations;
|
·
|
the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board;
|
·
|
financial market, monetary and interest rate fluctuations, particularly the relative relationship of short-term interest rates to long-term interest rates;
|
·
|
the timely development of and acceptance of new products and services of Lafayette Savings and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services;
|
·
|
the willingness of users to substitute competitors’ products and services for our products and services;
|
·
|
the impact of changes in financial services laws and regulations (including laws concerning taxes, accounting standards, banking, securities and insurance);
|
·
|
the impact of technological changes;
|
·
|
acquisitions;
|
·
|
changes in consumer spending and saving habits; and
|
·
|
our success at managing the risks involved in the foregoing.
|
Report of Independent Registered Public Accounting Firm | 31 | |
Consolidated Financial Statements | ||
Balance Sheets
|
32
|
|
Statements of Income
|
33
|
|
Statements of Stockholders’ Equity
|
34
|
|
Statements of Cash Flows
|
35
|
|
Notes to Financial Statements
|
36
|
Assets |
2010
|
2009
|
||||||
Cash and due from banks
|
$ | 10,593 | $ | 8,084 | ||||
Short-term investments
|
2,980 | 4,817 | ||||||
Cash and cash equivalents
|
13,573 | 12,901 | ||||||
Available-for-sale securities
|
11,805 | 11,345 | ||||||
Loans held for sale
|
2,265 | 3,303 | ||||||
Loans, net of allowance for loan losses of $5,343 and $3,737 at December 31, 2010 and 2009, respectively
|
320,810 | 317,860 | ||||||
Premises and equipment, net
|
6,116 | 6,209 | ||||||
Federal Home Loan Bank stock
|
3,583 | 3,997 | ||||||
Bank-owned life insurance
|
6,264 | 6,071 | ||||||
Interest receivable and other assets
|
7,431 | 9,364 | ||||||
Total assets
|
$ | 371,847 | $ | 371,050 | ||||
Liabilities
|
||||||||
Deposits
|
$ | 311,458 | $ | 277,866 | ||||
Federal Home Loan Bank advances
|
22,500 | 57,000 | ||||||
Interest payable and other liabilities
|
2,312 | 2,300 | ||||||
Total liabilities
|
336,270 | 337,166 | ||||||
Commitments and Contingencies
|
||||||||
Stockholders’ Equity
|
||||||||
Common stock, $.01 par value; authorized 7,000,000 shares; issued and outstanding 2010 -1,553,525 shares, 2009 - 1,553,525 shares
|
15 | 15 | ||||||
Additional paid-in capital
|
10,987 | 10,985 | ||||||
Retained earnings
|
24,374 | 22,646 | ||||||
Accumulated other comprehensive income
|
201 | 238 | ||||||
Total stockholders’ equity
|
35,577 | 33,884 | ||||||
Total liabilities and stockholders’ equity
|
$ | 371,847 | $ | 371,050 |
2010
|
2009
|
|||||||
Interest and Dividend Income
|
||||||||
Loans
|
$ | 18,401 | $ | 19,106 | ||||
Securities
|
||||||||
Taxable
|
232 | 279 | ||||||
Tax-exempt
|
239 | 262 | ||||||
Other
|
23 | 12 | ||||||
Total interest and dividend income
|
18,895 | 19,659 | ||||||
Interest Expense
|
||||||||
Deposits
|
4,951 | 6,663 | ||||||
Borrowings
|
1,164 | 2,672 | ||||||
Total interest expense
|
6,115 | 9,335 | ||||||
Net Interest Income
|
12,780 | 10,324 | ||||||
Provision for Loan Losses
|
2,759 | 3,197 | ||||||
Net Interest Income After Provision for Loan Losses
|
10,021 | 7,127 | ||||||
Noninterest Income
|
||||||||
Deposit account service charges and fees
|
1,522 | 1,525 | ||||||
Net gains on loan sales
|
1,019 | 1,386 | ||||||
Net loss on other real estate owned
|
(441 | ) | (183 | ) | ||||
Other
|
980 | 1,059 | ||||||
Total noninterest income
|
3,080 | 3,787 | ||||||
Noninterest Expense
|
||||||||
Salaries and employee benefits
|
5,288 | 5,137 | ||||||
Net occupancy and equipment expense
|
1,303 | 1,307 | ||||||
Computer service
|
569 | 562 | ||||||
Advertising
|
282 | 301 | ||||||
Other
|
2,490 | 3,196 | ||||||
Total noninterest expense
|
9,932 | 10,503 | ||||||
Income Before Income Tax
|
3,169 | 411 | ||||||
Provision (Benefit) for Income Taxes
|
1,052 | (49 | ) | |||||
Net Income
|
$ | 2,117 | $ | 460 | ||||
Basic Earnings Per Share
|
$ | 1.36 | $ | 0.30 | ||||
Diluted Earnings Per Share
|
$ | 1.36 | $ | 0.30 |
Accumulated
|
||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|||||||||||||||||
Stock
|
Capital
|
Earnings
|
Income
|
Total
|
||||||||||||||||
Balance, January 1, 2009
|
$ | 15 | $ | 10,983 | $ | 22,961 | $ | 116 | $ | 34,075 | ||||||||||
Comprehensive income
|
||||||||||||||||||||
Net income
|
460 | 460 | ||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities, net of taxes
|
122 | 122 | ||||||||||||||||||
Total comprehensive income
|
582 | |||||||||||||||||||
Dividends on common stock, $0.50 per share
|
(775 | ) | (775 | ) | ||||||||||||||||
Amortization of stock option compensation
|
2 | 2 | ||||||||||||||||||
Balance, December 31, 2009
|
15 | 10,985 | 22,646 | 238 | 33,884 | |||||||||||||||
Comprehensive income
|
||||||||||||||||||||
Net income
|
2,117 | 2,117 | ||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities, net of taxes
|
(37 | ) | (37 | ) | ||||||||||||||||
Total comprehensive income
|
2,080 | |||||||||||||||||||
Dividends on common stock, $0.25 per share
|
(389 | ) | (389 | ) | ||||||||||||||||
Amortization of stock option compensation
|
2 | 2 | ||||||||||||||||||
Balance, December 31, 2010
|
$ | 15 | $ | 10,987 | $ | 24,374 | $ | 201 | $ | 35,577 |
2010
|
2009
|
|||||||
Operating Activities
|
||||||||
Net income
|
$ | 2,117 | $ | 460 | ||||
Items not requiring (providing) cash
|
||||||||
Depreciation
|
425 | 472 | ||||||
Provision for loan losses
|
2,759 | 3,197 | ||||||
Amortization of premiums and discounts on securities
|
49 | 49 | ||||||
Deferred income taxes
|
(485 | ) | (474 | ) | ||||
Loss on other real estate owned
|
441 | 183 | ||||||
Gain on sale of loans
|
(1,019 | ) | (1,386 | ) | ||||
Loans originated for sale
|
(47,528 | ) | (69,741 | ) | ||||
Proceeds on loans sold
|
49,389 | 68,726 | ||||||
Compensation cost of stock options
|
2 | 2 | ||||||
Changes in
|
||||||||
Interest receivable and other assets
|
1,744 | (1,687 | ) | |||||
Interest payable and other liabilities
|
36 | 842 | ||||||
Net cash provided by operating activities
|
7,930 | 643 | ||||||
Investing Activities
|
||||||||
Purchases of available-for-sale securities
|
(2,901 | ) | (2,894 | ) | ||||
Proceeds from maturities of available-for-sale securities
|
2,330 | 3,557 | ||||||
Net change in loans
|
(6,383 | ) | 1,645 | |||||
Proceeds from sale of real estate owned
|
911 | 1,941 | ||||||
Reclamation of Federal Home Loan Bank stock
|
414 | --- | ||||||
Purchase of premises and equipment
|
(332 | ) | (220 | ) | ||||
Net cash provided by (used in) investing activities
|
(5,961 | ) | 4,029 | |||||
Financing Activities
|
||||||||
Net change in demand deposits, money market, NOW and savings accounts
|
37,821 | 26,645 | ||||||
Net change in certificates of deposit
|
(4,229 | ) | (7,366 | ) | ||||
Proceeds from Federal Home Loan Bank advances
|
16,000 | 13,000 | ||||||
Repayment of Federal Home Loan Bank advances
|
(50,500 | ) | (34,500 | ) | ||||
Dividends paid
|
(389 | ) | (775 | ) | ||||
Net cash used in financing activities
|
(1,297 | ) | (2,996 | ) | ||||
Increase in Cash and Cash Equivalents
|
672 | 1,676 | ||||||
Cash and Cash Equivalents, Beginning of Year
|
12,901 | 11,225 | ||||||
Cash and Cash Equivalents, End of Year
|
$ | 13,573 | $ | 12,901 | ||||
Supplemental Cash Flows Information
|
||||||||
Interest paid
|
$ | 6,224 | $ | 9,480 | ||||
Income taxes paid
|
1,210 | 289 | ||||||
Supplemental NonCash Disclosures
|
||||||||
Capitalization of mortgage-servicing rights
|
$ | 196 | $ | 440 | ||||
Loans transferred to other real estate
|
1,017 | 2,595 |
Note 1: Nature of Operations and Summary of Significant Accounting Policies
|
Note 2: Restriction on Cash and Due From Banks
|
Note 3: Securities
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Approximate Fair Value
|
|||||||||||||
Available-for-sale Securities:
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
U.S. Government sponsored agencies
|
$ | 2,081 | $ | 19 | $ | (4 | ) | $ | 2,096 | |||||||
Mortgage-backed securities
|
2,529 | 145 | --- | 2,674 | ||||||||||||
State and political subdivisions
|
6,860 | 181 | (6 | ) | 7,035 | |||||||||||
$ | 11,470 | $ | 345 | $ | (10 | ) | $ | 11,805 | ||||||||
December 31, 2009
|
||||||||||||||||
U.S. Government sponsored agencies
|
$ | 529 | $ | 7 | $ | --- | $ | 536 | ||||||||
Mortgage-backed securities
|
3,131 | 176 | --- | 3,307 | ||||||||||||
State and political subdivisions
|
7,288 | 214 | --- | 7,502 | ||||||||||||
$ | 10,948 | $ | 397 | $ | --- | $ | 11,345 |
Amortized Cost
|
Fair Value
|
||||||||
Within one year
|
$ | 1,279 | $ | 1,287 | |||||
One to five years
|
4,803 | 4,886 | |||||||
Five to ten years
|
2,377 | 2,461 | |||||||
After ten years
|
482 | 497 | |||||||
8,941 | 9,131 | ||||||||
Mortgage-backed securities
|
2,529 | 2,674 | |||||||
Totals
|
$ | 11,470 | $ | 11,805 |
Less Than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||||||||
U.S. Government sponsored agencies
|
$ | 1,042 | $ | 4 | $ | --- | $ | --- | $ | 1,042 | $ | 4 | |||||||||||||
State and political subdivisions
|
874 | 6 | --- | --- | 874 | 6 | |||||||||||||||||||
Total temporarily impaired securities
|
$ | 1,916 | $ | 10 | $ | --- | $ | --- | $ | 1,916 | $ | 10 |
Note 4: Loans and Allowance for Loan Losses
|
2010
|
2009
|
||||||||
Real Estate
|
|||||||||
One-to-four family residential
|
$ | 122,856 | $ | 120,199 | |||||
Multi-family residential
|
53,458 | 52,790 | |||||||
Commercial real estate
|
90,395 | 90,571 | |||||||
Construction and land development
|
30,467 | 30,194 | |||||||
Commercial
|
16,332 | 16,638 | |||||||
Consumer and other
|
1,208 | 1,321 | |||||||
Home equity lines of credit
|
17,043 | 14,698 | |||||||
Total loans
|
331,759 | 326,411 | |||||||
Less
|
|||||||||
Net deferred loan fees, premiums and discounts
|
(499 | ) | (431 | ) | |||||
Undisbursed portion of loans
|
(5,107 | ) | (4,383 | ) | |||||
Allowance for loan losses
|
(5,343 | ) | (3,737 | ) | |||||
Net loans
|
$ | 320,810 | $ | 317,860 |
2010
|
2009
|
||||||||
Balance, beginning of year
|
$ | 3,737 | $ | 3,697 | |||||
Provision charged to expense
|
2,759 | 3,197 | |||||||
Losses charged off, net of recoveries of $229 for 2010 and $28 for 2009
|
(1,153 | ) | (3,157 | ) | |||||
Balance, end of year
|
$ | 5,343 | $ | 3,737 |
Allowance for Loan Losses and Recorded Investment in Loans for the Year Ended December 31, 2010
|
||||||||||||||||||||||||||
2010
|
Commercial
|
Owner Occupied 1-4
|
Non-owner Occupied 1-4
|
Multi-family
|
Commercial RE
|
Construction
|
Land
|
Consumer and Home Equity
|
Total
|
|||||||||||||||||
Allowance for losses
|
||||||||||||||||||||||||||
Beginning balance
|
$ | 103 | $ | 402 | $ | 1,214 | $ | 344 | $ | 1,095 | $ | 38 | $ | 518 | 23 | 3,737 | ||||||||||
Provision charged to expense
|
527 | (61 | ) | 3 | 794 | 1,140 | (46 | ) | 337 | 65 | 2,759 | |||||||||||||||
Losses charged off
|
68 | 117 | 579 | --- | 211 | --- | 402 | 5 | 1,382 | |||||||||||||||||
Recoveries
|
3 | 18 | 135 | --- | 37 | 8 | 27 | 1 | 229 | |||||||||||||||||
Ending balance
|
565 | 242 | 773 | 1,138 | 2,061 | --- | 480 | 84 | 5,343 | |||||||||||||||||
ALL individually evaluated
|
285 | 122 | 390 | 574 | 1,039 | --- | 242 | 42 | 2,694 | |||||||||||||||||
ALL collectively evaluated
|
280 | 120 | 383 | 564 | 1,022 | --- | 238 | 42 | 2,649 | |||||||||||||||||
Loans individually evaluated
|
4,334 | 3,365 | 16,529 | 11,491 | 21,828 | --- | 6,865 | 279 | 64,691 | |||||||||||||||||
Loans collectively evaluated
|
11,998 | 56,941 | 46,021 | 41,967 | 68,567 | 15,957 | 7,645 | 17,972 | 267,068 |
Credit Rating
|
Commercial
|
Owner
Occupied
1-4
|
Non-owner
Occupied
1-4
|
Multi-
Family
|
Commercial
Real Estate
|
Construction
|
Land
|
Consumer
and
Home
Equity
|
Total
|
||||||||||||||||||
1- Superior
|
$ | 42 | $ | 3,364 | $ | 160 | $ | 112 | $ | 207 | $ | --- | $ | 218 | $ | 1,458 | $ | 5,565 | |||||||||
2 - Good
|
3,227 | 20,113 | 5,353 | 8,248 | 10,690 | 3,073 | 953 | 11,079 | 63,736 | ||||||||||||||||||
3 - Pass Low risk
|
3,767 | 26,149 | 15,514 | 26,040 | 31,532 | 8,843 | 1,150 | 4,404 | 117,399 | ||||||||||||||||||
4 - Pass
|
4,960 | 7,113 | 25,016 | 7,567 | 26,414 | 4,040 | 5,325 | 930 | 81,364 | ||||||||||||||||||
4W - Watch
|
172 | 1,351 | 5,591 | 4,353 | 8,331 | --- | 2,483 | 116 | 22,398 | ||||||||||||||||||
5 - Special mention
|
3,899 | 462 | 5,535 | 2,478 | 4,799 | --- | --- | 97 | 17,269 | ||||||||||||||||||
6 - Substandard
|
265 | 1,753 | 5,382 | 4,660 | 8,421 | --- | 4,382 | 164 | 25,027 | ||||||||||||||||||
7 - Doubtful
|
--- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
8 - Loss
|
--- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
Total
|
$ | 16,332 | $ | 60,306 | $ | 62,550 | $ | 53,458 | $ | 90,395 | $ | 15,957 | $ | 14,510 | $ | 18,251 | $ | 331,759 |
Loan Portfolio Aging Analysis as of December 31, 2010
|
||||||||||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
Over 90 Days
|
Total Past Due
|
Current
|
Total Loans
|
Under 90 Days
and Not Accruing
|
Total 90 Days
and Accruing
|
|||||||||||||||||||||||||
Commercial
|
$ | 60 | $ | --- | $ | 251 | $ | 311 | $ | 16,021 | $ | 16,332 | $ | --- | $ | --- | ||||||||||||||||
Owner occupied 1-4
|
139 | 539 | 515 | 1,193 | 59,113 | 60,306 | 715 | --- | ||||||||||||||||||||||||
Non owner occupied 1-4
|
--- | 176 | 3,293 | 3,469 | 59,080 | 62,550 | 1,918 | 48 | ||||||||||||||||||||||||
Multi-family
|
--- | --- | 2,289 | 2,289 | 51,168 | 53,458 | 559 | --- | ||||||||||||||||||||||||
Commercial RE
|
338 | 55 | 5,639 | 6,032 | 84,363 | 90,395 | 213 | 628 | ||||||||||||||||||||||||
Construction
|
--- | --- | --- | --- | 15,957 | 15,957 | --- | --- | ||||||||||||||||||||||||
Land
|
16 | --- | 1,022 | 1,039 | 12,472 | 14,510 | 1,468 | --- | ||||||||||||||||||||||||
Consumer and home equity
|
5 | 39 | 134 | 178 | 18,073 | 18,251 | 30 | --- | ||||||||||||||||||||||||
Total
|
$ | 559 | $ | 809 | $ | 13,143 | $ | 14,511 | $ | 317,248 | $ | 331,759 | $ | 4,903 | $ | 676 |
Impaired Loans as of and for the Year Ended December 31, 2010
|
|||||||||||||||||||||
Recorded
Balance
|
Unpaid
Principal
Balance
|
Specific
Allowance
|
Average
Impaired
Loans
|
Interest
Income
Recognized
|
|||||||||||||||||
Loans without specific valuation allowance
|
|||||||||||||||||||||
Residential Real Estate
|
$ | 7,485 | $ | 6,385 | $ | --- | $ | 7,661 | $ | 391 | |||||||||||
Commercial Real Estate
|
7,238 | 7,765 | --- | 6,765 | 343 | ||||||||||||||||
Non real estate
|
--- | --- | --- | 46 | 8 | ||||||||||||||||
Loans with a specific valuation allowance
|
|||||||||||||||||||||
Residential Real Estate
|
1,128 | 1,128 | 70 | 818 | 21 | ||||||||||||||||
Commercial Real Estate
|
4,534 | 4,534 | 1,125 | 2,628 | 77 | ||||||||||||||||
Non real estate
|
239 | 239 | 169 | 197 | 12 | ||||||||||||||||
Total
|
|||||||||||||||||||||
Residential Real Estate
|
8,613 | 7,513 | 70 | 8,479 | 412 | ||||||||||||||||
Commercial Real Estate
|
11,772 | 12,299 | 1,125 | 9,393 | 420 | ||||||||||||||||
Non real estate
|
239 | 239 | 169 | 243 | 12 |
Loan Class
|
2010
|
||||
Commercial
|
$ | 251 | |||
Owner occupied 1-4
|
1,230 | ||||
Non owner occupied 1-4
|
5,163 | ||||
Multi-family
|
2,848 | ||||
Commercial RE
|
5,224 | ||||
Construction
|
--- | ||||
Land
|
2,490 | ||||
Consumer and home equity
|
164 | ||||
Total
|
$ | 17,370 |
Note 5: Premises and Equipment
|
2010
|
2009
|
||||||||
Land
|
$ | 1,681 | $ | 1,681 | |||||
Buildings and improvements
|
6,450 | 6,417 | |||||||
Equipment
|
3,422 | 3,773 | |||||||
11,553 | 11,871 | ||||||||
Less accumulated depreciation
|
(5,437 | ) | (5,662 | ) | |||||
Net premises and equipment
|
$ | 6,116 | $ | 6,209 |
Note 6: Loan Servicing
|
2010
|
2009
|
||||||||
Mortgage servicing rights
|
|||||||||
Balance, beginning of year
|
$ | 1,154 | $ | 991 | |||||
Additions
|
196 | 440 | |||||||
Amortization of servicing rights
|
(258 | ) | (277 | ) | |||||
Balance, end of year
|
$ | 1,092 | $ | 1,154 |
2010
|
2009
|
||||||||
Fair value, beginning of period
|
$ | 1,411 | $ | 1,340 | |||||
Fair value, end of period
|
1,172 | 1,411 |
Note 7: Deposits
|
2010
|
2009
|
||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||
Non interest-bearing deposits
|
$ | 25,023 | 8.04 | % | $ | 21,359 | 7.69 | % | |||||||||
NOW accounts
|
95,687 | 30.72 | 59,728 | 21.49 | |||||||||||||
Savings accounts
|
25,297 | 8.12 | 27,099 | 9.75 | |||||||||||||
146,007 | 46.88 | 108,186 | 38.93 | ||||||||||||||
Certificates of deposit
|
|||||||||||||||||
0.00% to 1.99%
|
74,582 | 23.95 | 63,177 | 22.74 | |||||||||||||
2.00% to 3.99%
|
79,303 | 25.46 | 74,326 | 26.75 | |||||||||||||
4.00% to 5.99%
|
11,560 | 3.71 | 32,158 | 11.57 | |||||||||||||
6.00% to 7.99%
|
6 | .00 | 19 | .01 | |||||||||||||
165,451 | 53.12 | 169,680 | 61.07 | ||||||||||||||
$ | 311,458 | 100.00 | % | $ | 277,866 | 100.00 | % |
2011
|
$ | 86,843 | |||
2012
|
27,524 | ||||
2013
|
16,526 | ||||
2014
|
13,112 | ||||
2015
|
21,446 | ||||
$ | 165,451 |
Note 8: Federal Home Loan Bank Advances
|
2011
|
$ | 11,500 | |||
2012
|
3,000 | ||||
2013
|
5,000 | ||||
2015
|
3,000 | ||||
$ | 22,500 |
Note 9: Income Taxes
|
2010
|
2009
|
||||||||
Taxes currently payable
|
$ | 1,537 | $ | 423 | |||||
Deferred income taxes
|
(485 | ) | (474 | ) | |||||
Income tax expense (benefit)
|
$ | 1,052 | $ | (49 | ) |
2010
|
2009
|
||||||||
Computed at the statutory rate (34%)
|
$ | 1,077 | $ | 140 | |||||
Increase (decrease) resulting from
|
|||||||||
Tax exempt interest
|
(75 | ) | (78 | ) | |||||
State income taxes
|
97 | (49 | ) | ||||||
Other
|
(47 | ) | (62 | ) | |||||
Actual tax expense (benefit)
|
$ | 1,052 | $ | (49 | ) |
2010
|
2009
|
||||||||
Deferred tax assets
|
|||||||||
Allowance for loan losses
|
$ | 1,881 | $ | 1,586 | |||||
Non-accrual loan income
|
171 | 85 | |||||||
Other
|
350 | 257 | |||||||
2,402 | 1,910 | ||||||||
Deferred tax liabilities
|
|||||||||
Depreciation
|
131 | 185 | |||||||
Mortgage servicing rights
|
463 | 489 | |||||||
FHLB stock dividends
|
148 | 165 | |||||||
Unrealized gain on available-for-sale securities
|
134 | 159 | |||||||
Other
|
286 | 200 | |||||||
1,162 | 1,198 | ||||||||
Net deferred tax asset
|
$ | 1,240 | $ | 712 |
Note 10: Other Comprehensive Income (Loss)
|
2010
|
2009
|
||||||||
Unrealized holding gains (losses) on available-for-sale securities
|
$ | (62 | ) | $ | 204 | ||||
Tax expense (benefit)
|
(25 | ) | 82 | ||||||
Other comprehensive income (loss)
|
$ | (37 | ) | $ | 122 |
Note 11: Regulatory Matters
|
Actual
|
For Capital Adequacy Purposes
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of December 31, 2010
|
||||||||||||||||||||||||
Total risk-based capital
(to risk-weighted assets)
|
$ | 38,288 | 13.8 | % | $ | 22,124 | 8.0 | % | $ | 27,655 | 10.0 | % | ||||||||||||
Tier I capital
(to risk-weighted assets)
|
34,975 | 12.6 | 11,062 | 4.0 | 16,593 | 6.0 | ||||||||||||||||||
Tier I capital
(to adjusted total assets)
|
34,975 | 9.4 | 11,148 | 3.0 | 18,581 | 5.0 | ||||||||||||||||||
Tier I capital
(to adjusted tangible assets)
|
34,975 | 9.4 | 7,432 | 2.0 | N/A | N/A | ||||||||||||||||||
Tangible capital
(to adjusted tangible assets)
|
34,975 | 9.4 | 5,574 | 1.5 | N/A | N/A | ||||||||||||||||||
As of December 31, 2009
|
||||||||||||||||||||||||
Total risk-based capital
(to risk-weighted assets)
|
$ | 37,223 | 12.9 | % | $ | 23,132 | 8.0 | % | $ | 28,915 | 10.0 | % | ||||||||||||
Tier I capital
(to risk-weighted assets)
|
33,609 | 11.6 | 11,566 | 4.0 | 17,349 | 6.0 | ||||||||||||||||||
Tier I capital
(to adjusted total assets)
|
33,609 | 9.1 | 11,123 | 3.0 | 18,538 | 5.0 | ||||||||||||||||||
Tier I capital
(to adjusted tangible assets)
|
33,609 | 9.1 | 7,415 | 2.0 | N/A | N/A | ||||||||||||||||||
Tangible capital
(to adjusted tangible assets)
|
33,609 | 9.1 | 5,561 | 1.5 | N/A | N/A |
Note 12: Employee Benefits
|
2010
|
2009
|
||||||
ESOP shares allocated
|
106,908 | 106,968 |
Note 13: Stock Option Plans
|
2010
|
||||||||||||||
Shares
|
Weighted-Average Exercise Price
|
Weighted-Average Remaining Contractual Term
|
Aggregate Intrinsic Value
|
|||||||||||
Outstanding, beginning of year
|
37,248 | $ | 17.73 | |||||||||||
Granted
|
--- | --- | ||||||||||||
Forfeited or expired
|
(463 | ) | 10.37 | |||||||||||
Outstanding, end of year
|
36,785 | $ | 17.82 |
3.16 years
|
$ | 0 | ||||||||
Exercisable, end of year
|
33,785 | $ | 18.51 |
2.44 years
|
$ | 0 |
Note 14: Earnings Per Share
|
Year Ended December 31, 2010
|
||||||||||||
Income
|
Weighted-Average Shares
|
Per Share Amount
|
||||||||||
Net income
|
$ | 2,117 | 1,553,525 | |||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 1.36 | ||||||||||
Effect of dilutive securities
|
||||||||||||
Stock options
|
1,195 | |||||||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders and assumed conversions
|
$ | 2,117 | 1,554,720 | $ | 1.36 |
Year Ended December 31, 2009
|
|||||||||||||
Income
|
Weighted-
Average
Shares
|
Per Share Amount
|
|||||||||||
Net income
|
$ | 460 | 1,553,525 | ||||||||||
Basic earnings per share
|
|||||||||||||
Income available to common stockholders
|
$ | 0.30 | |||||||||||
Effect of dilutive securities
|
|||||||||||||
Stock options
|
1,182 | ||||||||||||
Diluted earnings per share
|
|||||||||||||
Income available to common stockholders and assumed conversions
|
$ | 460 | 1,554,707 | $ | 0.30 |
Note 15: Disclosures About Fair Value of Financial Instruments
|
|
Level 1
|
Quoted prices in active markets for identical assets or liabilities.
|
|
Level 2
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
|
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
|
Fair Value Measurements Using
|
|||||||||||||||||
Fair Value
|
Quoted Prices in Active Markets for Identical Assets(Level 1)
|
Significant Other Observable Inputs(Level 2)
|
Significant Unobservable Inputs(Level 3)
|
||||||||||||||
Available-for-sale securities
|
|||||||||||||||||
December 31, 2010
|
|||||||||||||||||
U.S. government agencies
|
$ | 2,096 | $ | --- | $ | 2,096 | $ | --- | |||||||||
Mortgage-backed securities
|
2,674 | --- | 2,674 | --- | |||||||||||||
State and political subdivisions
|
7,035 | --- | 7,035 | --- | |||||||||||||
Totals
|
$ | 11,805 | $ | --- | $ | 11,805 | $ | --- | |||||||||
Available-for-sale securities
|
|||||||||||||||||
December 31, 2009
|
|||||||||||||||||
U.S. government agencies
|
$ | 536 | $ | --- | $ | 536 | $ | --- | |||||||||
Mortgage-backed securities
|
3,307 | --- | 3,307 | --- | |||||||||||||
State and political subdivisions
|
7,502 | --- | 7,502 | --- | |||||||||||||
Totals
|
$ | 11,345 | $ | --- | $ | 11,345 | $ | --- |
Fair Value Measurements Using
|
|||||||||||||||||
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||||
Impaired loans
|
|||||||||||||||||
December 31, 2010
|
$ | 12,013 | $ | --- | $ | --- | $ | 12,013 | |||||||||
Impaired loans
|
|||||||||||||||||
December 31, 2009
|
9,218 | --- | --- | 9,218 |
December 31, 2010
|
December 31, 2009
|
||||||||||||||||
Carrying Amount
|
Fair Value
|
Carrying Amount
|
Fair Value
|
||||||||||||||
Financial assets
|
|||||||||||||||||
Cash and cash equivalents
|
$ | 13,573 | $ | 13,573 | $ | 12,901 | $ | 12,901 | |||||||||
Available-for-sale securities
|
11,805 | 11,805 | 11,345 | 11,345 | |||||||||||||
Loans held for sale
|
2,265 | 2,265 | 3,303 | 3,303 | |||||||||||||
Loans, net of allowance for loan losses
|
320,810 | 331,913 | 317,860 | 328,436 | |||||||||||||
Federal Home Loan Bank stock
|
3,583 | 3,583 | 3,997 | 3,997 | |||||||||||||
Interest receivable
|
1,421 | 1,421 | 1,447 | 1,447 | |||||||||||||
Financial liabilities
|
|||||||||||||||||
Deposits
|
311,458 | 316,112 | 277,866 | 281,663 | |||||||||||||
Federal Home Loan Bank advances
|
22,500 | 22,920 | 57,000 | 57,993 | |||||||||||||
Interest payable
|
62 | 62 | 171 | 171 |
Note 16: Commitments and Contingent Liabilities
|
2010
|
2009
|
||||||||
Commitments to extend credit
|
|||||||||
Fixed rate
|
$ | 9,748 | $ | 2,938 | |||||
Variable rate
|
4,090 | 5,350 | |||||||
Unused portions of lines of credit
|
26,277 | 28,777 | |||||||
Letters of credit
|
663 | 286 |
Note 17: Condensed Financial Information (Parent Company Only)
|
December 31
|
|||||||||
2010
|
2009
|
||||||||
Assets
|
|||||||||
Cash
|
$ | 178 | $ | 10 | |||||
Securities available-for-sale
|
144 | 158 | |||||||
Investment in the Bank
|
35,176 | 33,840 | |||||||
Other assets
|
117 | 182 | |||||||
Total assets
|
$ | 35,615 | $ | 34,190 | |||||
Liabilities
|
$ | 38 | $ | 306 | |||||
Stockholders’ Equity
|
35,577 | 33,884 | |||||||
Total liabilities and stockholders’ equity
|
$ | 35,615 | $ | 34,190 |
|
||||||||
Years Ending December 31
|
||||||||
2010
|
2009
|
|||||||
Income
|
||||||||
Dividends from the Bank
|
$ | 879 | $ | 762 | ||||
Other income
|
9 | 10 | ||||||
Total income
|
888 | 772 | ||||||
Expenses
|
(232 | ) | (242 | ) | ||||
Income Before Income Tax and Equity in Undistributed Income of Subsidiaries
|
656 | 530 | ||||||
Income Tax Benefit
|
90 | 94 | ||||||
Income Before Equity in Undistributed Income of Subsidiaries
|
746 | 624 | ||||||
Equity in Undistributed (Distribution in Excess of) Income of Subsidiaries
|
1,371 | (164 | ) | |||||
Net Income
|
$ | 2,117 | $ | 460 |
|
||||||||
Years Ending December 31
|
||||||||
2010
|
2009
|
|||||||
Operating Activities
|
||||||||
Net income
|
$ | 2,117 | $ | 460 | ||||
Equity in undistributed (distributions in excess of) income of the Bank
|
(1,371 | ) | 164 | |||||
Change in other assets
|
(203 | ) | 138 | |||||
Net cash provided by operating activities
|
543 | 762 | ||||||
Investing Activity - proceeds from paydowns of securities
|
14 | 13 | ||||||
Financing Activity - dividends paid
|
(389 | ) | (775 | ) | ||||
Net Change in Cash
|
168 | --- | ||||||
Cash at Beginning of Year
|
10 | 10 | ||||||
Cash at End of Year
|
$ | 178 | $ | 10 |
Note 18: Recent Accounting Pronouncements
|
Randolph F. Williams
President and Chief Executive Officer,
LSB Financial and Lafayette Savings
Mariellen M. Neudeck
Chairman of the Board, LSB Financial and Lafayette Savings
Vice President, Greater Lafayette Health Services, Inc., retired
James A. Andrew
President and Owner, Henry Poor Lumber Co. and Homeworks
Stephen E. Belter
President, Indiana Dataline Corp.
Kenneth P. Burns
Executive Vice President and Treasurer,
Purdue University, retired
|
Mary Jo David
Vice President, Chief Financial Officer
and Secretary-Treasurer of LSB Financial and Lafayette Savings
Philip W. Kemmer
Transportation Supervisor,
Lafayette School Corp., retired
Thomas R. McCully
Partner, Stuart & Branigin
Jeffrey A. Poxon
Senior Vice President, Investments and
Chief Investment Officer, The Lafayette Life Insurance Company
Charles W. Shook
President and Owner, The Shook Agency
|
|
Randolph F. Williams
President and Chief Executive Officer
|
Mary Jo David
Vice President, Chief Financial Officer
and Secretary-Treasurer
|
Corporate Office
101 Main Street
Lafayette, Indiana 47902
Branch Offices
1020A Sagamore Park Centre
West Lafayette, IN 47906
1501 Sagamore Parkway North
Lafayette, Indiana 47905
833 Twyckenham Boulevard
Lafayette, Indiana 47905
3510 S.R. 38 E
Lafayette, Indiana 47905
|
Independent Auditors
BKD, LLP
201 N. Illinois Street, Suite 700
P.O. Box 44998
Indianapolis, Indiana 46244-0998
Transfer Agent
Computershare Investor Services
350 Indiana Street, Suite 800
Golden, Colorado 80401
Local Counsel
Stuart & Branigin LLP
300 Main Street, Suite 800
Lafayette, Indiana 47902
Special Counsel
Barnes & Thornburg LLP
11 South Meridian Street
Indianapolis, Indiana 46204
|
Quarter Ended
|
High
|
Low
|
Cash Dividends
Declared
|
||||||
March 31, 2009
|
11.75 | 8.50 | 0.125 | ||||||
June 30, 2009
|
14.40 | 11.00 | 0.125 | ||||||
September 30, 2009
|
13.49 | 10.30 | 0.125 | ||||||
December 31, 2009
|
12.66 | 8.27 | 0.125 | ||||||
March 31, 2010
|
10.70 | 9.80 | 0.125 | ||||||
June 30, 2010
|
12.74 | 9.89 | 0.125 | ||||||
September 30, 2010
|
11.42 | 9.00 | 0.0 | ||||||
December 31, 2010
|
13.73 | 9.50 | 0.0 |
Parent
|
Subsidiary
|
Jurisdiction of Incorporation of Subsidiary
|
||
LSB Financial Corp.
|
Lafayette Savings Bank, FSB
|
Federal
|
||
Lafayette Savings Bank, FSB
|
L.S.B. Service Corporation
|
Indiana
|
1.
|
I have reviewed this annual report on Form 10-K of LSB Financial Corp. (the “Registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
|
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 the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Dated:
|
March 16, 2011
|
/s/ Randolph F. Williams | |
Randolph F. Williams
|
|||
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of LSB Financial Corp. (the “Registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
|
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 the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Dated:
|
March 16, 2011
|
/s/ Mary Jo David | |
Mary Jo David
|
|||
Vice President and Chief Financial Officer
|
/s/ Randolph F. Williams | /s/ Mary Jo David | |
Randolph F. Williams
|
Mary Jo David
|
|
President and Chief Executive Officer
|
Vice President and Chief Financial Officer
|
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