|
x QUARTERLY REPORT
UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the Quarterly Period Ended March 31,
2009
|
|
¨ TRANSITION REPORT
UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE
TRANSITION PERIOD FROM _________ TO
___________
|
NORTH CAROLINA
|
56-2259050
|
(State
or other jurisdiction of Incorporation
|
(IRS
Employer Identification Number)
|
or
organization)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
|
Non-accelerated
filer ¨
|
Smaller
reporting company x
|
Page No.
|
|||
Part
I.
|
FINANCIAL
INFORMATION
|
||
Item
1 -
|
Financial
Statements (Unaudited)
|
||
Consolidated
Balance Sheets
March 31, 2009 (unaudited) and December 31, 2008 |
3
|
||
Consolidated
Statements of Operations
Three Months Ended March 31, 2009 and 2008 (unaudited) |
4
|
||
Consolidated
Statement of Stockholders’ Equity
Three Months Ended March 31, 2009 (unaudited) |
5
|
||
Consolidated
Statements of Cash Flows
Three Months Ended March 31, 2009 and 2008 (unaudited) |
6
|
||
Notes
to Consolidated Financial Statements
|
7 – 13
|
||
Item
2 -
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
14 – 26
|
|
Item
3 -
|
Quantitative
and Qualitative Disclosures about Market Risk
|
27
|
|
Item
4T -
|
Controls
and Procedures
|
27
|
|
Part
II.
|
Other
Information
|
||
Item
1 -
|
Legal
Proceedings
|
28
|
|
Item
1a -
|
Risk
Factors
|
28
|
|
Item
2 -
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
28
|
|
Item
3 -
|
Defaults
Upon Senior Debt
|
28
|
|
Item
4 -
|
Submission
of Matters to a Vote of Security Holders
|
28
|
|
Item
5 -
|
Other
Information
|
28
|
|
Item
6 -
|
Exhibits
|
28
|
March 31, 2009
|
December 31,
|
|||||||
(Unaudited)
|
2008*
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 10,373,010 | $ | 9,917,277 | ||||
Interest-earning
deposits with banks
|
24,236,356 | 266,512 | ||||||
Federal
funds sold
|
99,000 | 99,000 | ||||||
Investment
securities available for sale, at fair value
|
197,957,068 | 105,648,618 | ||||||
Loans
|
787,656,893 | 785,377,283 | ||||||
Allowance
for loan losses
|
(13,855,000 | ) | (12,585,000 | ) | ||||
NET
LOANS
|
773,801,893 | 772,792,283 | ||||||
Accrued
interest receivable
|
4,206,731 | 3,341,258 | ||||||
Federal
Home Loan Bank stock, at cost
|
11,910,400 | 7,264,000 | ||||||
Bank
premises and equipment, net
|
11,841,899 | 10,845,049 | ||||||
Investment
in life insurance
|
17,010,932 | 16,811,918 | ||||||
Goodwill
|
30,233,049 | 30,233,049 | ||||||
Other
assets
|
10,674,471 | 11,091,784 | ||||||
TOTAL
ASSETS
|
$ | 1,092,344,809 | $ | 968,310,748 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES
|
||||||||
Deposits
|
||||||||
Demand
|
$ | 64,985,201 | $ | 63,945,717 | ||||
Savings
|
59,392,686 | 58,833,876 | ||||||
Money
market and NOW
|
134,159,836 | 130,542,569 | ||||||
Time
|
473,065,896 | 461,560,593 | ||||||
TOTAL
DEPOSITS
|
731,603,619 | 714,882,755 | ||||||
Short-term
borrowings
|
114,758,000 | 37,706,000 | ||||||
Long-term
borrowings
|
121,748,000 | 116,748,000 | ||||||
Accrued
expenses and other liabilities
|
3,761,782 | 3,882,385 | ||||||
TOTAL
LIABILITIES
|
971,871,401 | 873,219,140 | ||||||
STOCKHOLDERS’
EQUITY
|
||||||||
Preferred
stock, no par value, 5,000,000 shares authorized, 24,900 shares issued and
outstanding on March 31, 2009
|
22,576,237 | - | ||||||
Common
stock, $1 par value, 20,000,000 shares authorized; 9,626,559 shares
outstanding March 31, 2009 and December 31, 2008
|
9,626,559 | 9,626,559 | ||||||
Additional
paid-in capital
|
74,394,060 | 74,349,299 | ||||||
Warrants
|
2,367,368 | - | ||||||
Retained
earnings
|
10,931,504 | 10,488,628 | ||||||
Accumulated
other comprehensive income (Note D)
|
577,680 | 627,122 | ||||||
TOTAL
STOCKHOLDERS’ EQUITY
|
120,473,408 | 95,091,608 | ||||||
COMMITMENTS
(Note B)
|
||||||||
TOTAL
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ | 1,092,344,809 | $ | 968,310,748 |
2009
|
2008
|
|||||||
INTEREST
INCOME
|
||||||||
Loans
|
$ | 12,077,058 | $ | 12,471,592 | ||||
Investment
securities available for sale
|
1,999,023 | 1,206,442 | ||||||
Federal
funds sold and interest-earning deposits
|
2,037 | 43,634 | ||||||
TOTAL
INTEREST INCOME
|
14,078,118 | 13,721,668 | ||||||
INTEREST
EXPENSE
|
||||||||
Deposits
|
5,242,936 | 5,708,860 | ||||||
Short-term
borrowings
|
463,332 | 116,679 | ||||||
Long-term
borrowings
|
1,140,459 | 1,372,173 | ||||||
TOTAL
INTEREST EXPENSE
|
6,846,727 | 7,197,712 | ||||||
NET
INTEREST INCOME
|
7,231,391 | 6,523,956 | ||||||
PROVISION
FOR LOAN LOSSES
|
1,696,685 | 806,395 | ||||||
NET
INTEREST INCOME AFTER
|
||||||||
PROVISION
FOR LOAN LOSSES
|
5,534,706 | 5,717,561 | ||||||
NON-INTEREST
INCOME
|
||||||||
Mortgage
origination revenue and other loan fees
|
296,472 | 171,908 | ||||||
Fees
on deposit accounts
|
388,002 | 381,670 | ||||||
Earnings
on life insurance
|
207,455 | 98,732 | ||||||
Loss
on disposal of assets
|
(25,500 | ) | (9,047 | ) | ||||
Loss
on impairment of nonmarketable equity security
|
(188,040 | ) | - | |||||
Other
|
84,786 | 165,286 | ||||||
TOTAL
NON-INTEREST INCOME
|
763,175 | 808,549 | ||||||
NON-INTEREST
EXPENSE
|
||||||||
Salaries
and employee benefits
|
2,971,098 | 2,804,130 | ||||||
Occupancy
and equipment
|
750,960 | 662,716 | ||||||
Data
processing
|
449,500 | 271,093 | ||||||
Other
|
1,421,242 | 1,283,239 | ||||||
TOTAL
NON-INTEREST EXPENSE
|
5,592,800 | 5,021,178 | ||||||
INCOME
BEFORE INCOME TAXES
|
705,081 | 1,504,932 | ||||||
INCOME
TAX EXPENSE
|
94,100 | 504,600 | ||||||
NET
INCOME
|
610,981 | 1,000,332 | ||||||
Effective
dividend on preferred stock (Note F)
|
168,105 | - | ||||||
Net
income available to common shareholders
|
$ | 442,876 | $ | 1,000,332 | ||||
NET
INCOME PER COMMON SHARE (Note C)
|
||||||||
Basic
|
$ | .05 | $ | .11 | ||||
Diluted
|
$ | .05 | $ | .10 | ||||
WEIGHTED
AVERAGE COMMON
|
||||||||
SHARES
OUTSTANDING (Note C)
|
||||||||
Basic
|
9,569,290 | 9,417,694 | ||||||
Diluted
|
9,581,873 | 9,678,841 |
Accumulated
|
||||||||||||||||||||||||||||||||||||
Additional
|
other
|
|||||||||||||||||||||||||||||||||||
Preferred stock
|
Common stock
|
paid-in
|
Retained
|
comprehensive
|
Total
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Warrant
|
capital
|
earnings
|
income (loss)
|
equity
|
||||||||||||||||||||||||||||
Balance
at December 31, 2008
|
- | $ | - | 9,626,559 | $ | 9,626,559 | $ | - | $ | 74,349,299 | $ | 10,488,628 | $ | 627,122 | $ | 95,091,608 | ||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | - | 610,981 | - | 610,981 | |||||||||||||||||||||||||||
Net
unrealized holding loss on available for sale securities
|
- | - | - | - | - | - | - | (49,442 | ) | (49,442 | ) | |||||||||||||||||||||||||
Total
comprehensive income
|
561,539 | |||||||||||||||||||||||||||||||||||
Expense
recognized in connection with stock options and restricted
stock
|
- | - | - | - | - | 44,761 | - | - | 44,761 | |||||||||||||||||||||||||||
Preferred
stock transaction:
|
||||||||||||||||||||||||||||||||||||
Issuance
of preferred stock
|
24,900,000 | 24,900,000 | - | - | - | - | - | - | 24,900,000 | |||||||||||||||||||||||||||
Discount
on preferred stock
|
- | (2,367,368 | ) | - | - | 2,367,368 | - | - | - | - | ||||||||||||||||||||||||||
Accretion
of discount
|
- | 43,605 | - | - | - | - | (43,605 | ) | - | - | ||||||||||||||||||||||||||
Preferred
stock dividend
|
- | - | - | - | - | - | (124,500 | ) | - | (124,500 | ) | |||||||||||||||||||||||||
Balance
at March 31, 2009
|
24,900,000 | $ | 22,576,237 | 9,626,559 | $ | 9,626,559 | $ | 2,367,368 | $ | 74,394,060 | $ | 10,931,504 | $ | 577,680 | $ | 120,473,408 |
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net
income
|
$ | 610,981 | $ | 1,000,332 | ||||
Adjustments
to reconcile net income to net cash provided (used) by operating
activities:
|
||||||||
Depreciation
|
198,703 | 177,511 | ||||||
Provision
for loan losses
|
1,696,685 | 806,395 | ||||||
Amortization
of core deposit premium
|
33,337 | 33,337 | ||||||
Deferred
income taxes
|
169,812 | - | ||||||
Loss
on impairment of nonmarketable equity security
|
188,040 | - | ||||||
Loss
on disposal of assets
|
25,500 | - | ||||||
Net
amortization (accretion) of premiums/discounts on
securities
|
174,807 | (30,657 | ) | |||||
Accretion
of loan discount
|
(109,955 | ) | (109,955 | ) | ||||
Amortization
of deposit premium
|
27,433 | 46,387 | ||||||
Net
increase in cash value of life insurance
|
(199,014 | ) | (87,439 | ) | ||||
Stock
based compensation
|
44,761 | 49,087 | ||||||
Change
in assets and liabilities:
|
||||||||
(Increase)
decrease in accrued interest receivable
|
(865,473 | ) | 494,077 | |||||
(Increase)
decrease in other assets
|
227,141 | (1,058,641 | ) | |||||
Increase
(decrease) in accrued interest payable
|
(200,578 | ) | 18,567 | |||||
Increase
(decrease) in other liabilities
|
79,973 | (321,704 | ) | |||||
TOTAL
ADJUSTMENTS
|
1,491,172 | 26,012 | ||||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
2,102,153 | 1,026,344 | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchases
of investment securities available for sale
|
(99,722,331 | ) | (7,293,615 | ) | ||||
Principal
repayments of investment securities available for sale
|
7,158,615 | 4,247,188 | ||||||
Purchase
of Federal Home Loan Bank stock
|
(4,646,400 | ) | (248,300 | ) | ||||
Net
increase in loans
|
(2,791,339 | ) | (37,221,230 | ) | ||||
Purchases
of bank premises and equipment
|
(1,196,053 | ) | (2,058,031 | ) | ||||
NET
CASH USED BY INVESTING ACTIVITIES
|
(101,197,508 | ) | (42,573,988 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net
increase (decrease) in deposits:
|
||||||||
Demand
|
1,039,484 | (3,477,589 | ) | |||||
Savings
|
558,810 | (21,534,545 | ) | |||||
Money
market and NOW
|
3,617,267 | 25,792,897 | ||||||
Time
deposits
|
11,477,871 | 46,963,044 | ||||||
Net
increase (decrease) in short-term borrowings
|
77,052,000 | (3,755,000 | ) | |||||
Net
increase in long-term borrowings
|
5,000,000 | - | ||||||
Proceeds
from stock options exercised
|
- | 127,787 | ||||||
Proceeds
from issuance of preferred stock
|
24,900,000 | - | ||||||
Dividends
paid on preferred stock
|
(124,500 | ) | - | |||||
Excess
tax benefits from stock options exercised
|
- | 17,400 | ||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
123,520,932 | 44,133,994 | ||||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
24,425,577 | 2,586,350 | ||||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
10,282,789 | 12,356,404 | ||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 34,708,366 | $ | 14,942,754 |
Undisbursed
lines of credit
|
$ | 139,534,000 | ||
Stand-by
letters of credit
|
1,488,000 | |||
Undisbursed
commitment to purchase additional
|
||||
investment
in Small Business Investment Corporation
|
363,000 | |||
Commitment
to purchase when issued investment securities
|
1,066,000 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2009
|
2008
|
|||||||
Weighted
average number of shares used in computing basic net income per
share
|
9,569,290 | 9,417,694 | ||||||
Effect
of dilutive stock options and restricted stock
|
12,583 | 261,147 | ||||||
Weighted
average number of shares used in computing diluted net income per
share
|
9,581,873 | 9,678,841 |
Fair Value Measurements at
|
||||||||||||||||||||
March 31, 2009, Using
|
||||||||||||||||||||
Total Carrying
|
||||||||||||||||||||
Amount in The
|
Quoted Prices
|
Significant
|
||||||||||||||||||
Consolidated
|
Assets/Liabilities
|
in Active
|
Other
|
Significant
|
||||||||||||||||
Balance
|
Measured at
|
Markets for
|
Observable
|
Unobservable
|
||||||||||||||||
Sheet
|
Fair Value
|
Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||||
Description
|
3/31/2009
|
3/31/2009
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||||
Securities
available for sale
|
$ | 197,957,068 | $ | 197,957,068 | $ | 303,732 | $ | 197,653,336 | $ | - | ||||||||||
Foreclosed
real estate
|
1,911,207 | 1,911,207 | - | - | 1,911,207 | |||||||||||||||
Impaired
loans
|
14,680,246 | 14,680,246 | - | 14,546,455 | 133,791 |
Fair Value Measurements at
|
||||||||||||||||||||
December 31, 2008, Using
|
||||||||||||||||||||
Total Carrying
|
||||||||||||||||||||
Amount in The
|
Quoted Prices
|
Significant
|
||||||||||||||||||
Consolidated
|
Assets/Liabilities
|
in Active
|
Other
|
Significant
|
||||||||||||||||
Balance
|
Measured at
|
Markets for
|
Observable
|
Unobservable
|
||||||||||||||||
Sheet
|
Fair Value
|
Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||||
Description
|
3/31/2009
|
3/31/2009
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||||
Securities
available for sale
|
$ | 105,648,618 | $ | 105,648,618 | $ | 490,753 | $ | 105,157,865 | $ | - | ||||||||||
Foreclosed
real estate
|
1,716,207 | 1,716,207 | - | - | 1,716,207 | |||||||||||||||
Impaired
loans
|
7,556,644 | 7,556,644 | - | 6,787,739 | 768,905 |
Risk-free
interest rate
|
2.49 | % | ||
Expected
life of warrants
|
10 years
|
|||
Expected
dividend yield
|
0.00 | % | ||
Expected
volatility
|
37.27 | % |
For
the Three Months Ended March 31,
|
||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Interest-earnings assets
|
||||||||||||||||||||||||
Loan
portfolio
|
$ | 788,810 | $ | 12,077 | 6.21 | % | $ | 696,751 | $ | 12,472 | 7.20 | % | ||||||||||||
Investment
securities
|
191,909 | 1,999 | 4.17 | % | 99,768 | 1,206 | 4.84 | % | ||||||||||||||||
Fed
funds and other interest-earning assets
|
5,036 | 2 | 0.16 | % | 5,479 | 44 | 3.23 | % | ||||||||||||||||
Total
interest-earning assets
|
985,755 | 14,078 | 5.79 | % | 801,998 | 13,722 | 6.88 | % | ||||||||||||||||
Noninterest-earning
assets
|
67,692 | 63,016 | ||||||||||||||||||||||
Total
Assets
|
$ | 1,053,447 | $ | 865,014 | ||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Interest-bearing
NOW
|
$ | 42,771 | 96 | 0.91 | % | $ | 32,973 | 21 | 0.26 | % | ||||||||||||||
Money
market and savings
|
140,333 | 495 | 1.43 | % | 154,726 | 1,086 | 2.82 | % | ||||||||||||||||
Time
deposits
|
461,539 | 4,652 | 4.09 | % | 379,526 | 4,602 | 4.88 | % | ||||||||||||||||
Short-term
borrowings
|
106,254 | 463 | 1.74 | % | 13,067 | 117 | 3.58 | % | ||||||||||||||||
Long-term
borrowings
|
121,159 | 1,141 | 3.77 | % | 121,248 | 1,372 | 4.53 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
872,056 | 6,847 | 3.18 | % | 701,540 | 7,198 | 4.13 | % | ||||||||||||||||
Noninterest-bearing
deposits
|
59,229 | 67,080 | ||||||||||||||||||||||
Other
liabilities
|
3,092 | 3,202 | ||||||||||||||||||||||
Total
Liabilities
|
934,377 | 771,822 | ||||||||||||||||||||||
Stockholders'
Equity
|
119,070 | 93,192 | ||||||||||||||||||||||
Total
Liabilities & Stockholders' Equity
|
$ | 1,053,447 | $ | 865,014 | ||||||||||||||||||||
Net
interest income
|
$ | 7,231 | $ | 6,524 | ||||||||||||||||||||
Interest
rate spread
|
2.61 | % | 2.75 | % | ||||||||||||||||||||
Net
interest-margin
|
2.98 | % | 3.27 | % | ||||||||||||||||||||
Percentage of average
interest-earning assets to average
interest-bearing liabilities
|
113.04 | % | 114.32 | % |
Rate/Volume Analysis | ||||||||||||
Three
Months Ended March 31,
|
||||||||||||
2009
vs. 2008
|
||||||||||||
(in
Thousands)
|
||||||||||||
Increase
(Decrease) Due to
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
Interest Income
|
||||||||||||
Loan
portfolio
|
$ | 1,470 | $ | (1,865 | ) | $ | (395 | ) | ||||
Investment
Securities
|
1,028 | (235 | ) | 793 | ||||||||
Fed
funds and other interest-earning assets
|
(2 | ) | (40 | ) | (42 | ) | ||||||
Total
interest-earning assets
|
2,496 | (2,140 | ) | 356 | ||||||||
Interest Expense
|
||||||||||||
Interest-bearing
NOW
|
14 | 61 | 75 | |||||||||
Money
market and savings
|
(80 | ) | (511 | ) | (591 | ) | ||||||
Time
deposits
|
888 | (837 | ) | 51 | ||||||||
Short-term
borrowings
|
614 | (268 | ) | 346 | ||||||||
Long-term
debt
|
(3 | ) | (229 | ) | (232 | ) | ||||||
Total
interest-bearing liabilities
|
1,433 | (1,784 | ) | (351 | ) | |||||||
Net
interest income
|
$ | 1,063 | $ | (356 | ) | $ | 707 |
At
March 31,
|
At
December 31,
|
|||||||||||||||
2009
|
2008
|
2008
|
2007
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Nonaccrual
loans
|
$ | 16,421 | $ | 257 | $ | 13,094 | $ | 2,726 | ||||||||
Restructured
loans
|
89 | - | - | - | ||||||||||||
Total
nonperforming loans
|
16,510 | 257 | 13,094 | 2,726 | ||||||||||||
Real
estate owned
|
1,911 | 2,320 | 1,716 | 272 | ||||||||||||
Repossessed
assets
|
- | 10 | - | - | ||||||||||||
Total
nonperforming assets
|
$ | 18,421 | $ | 2,587 | $ | 14,810 | $ | 2,998 | ||||||||
Accruing
loans past due 90 days or more
|
$ | 4 | $ | - | $ | - | $ | - | ||||||||
Allowance
for loan losses
|
13,855 | 8,425 | 12,585 | 8,273 | ||||||||||||
Nonperforming
loans to period end loans
|
2.08 | % | 0.04 | % | 1.53 | % | 0.40 | % | ||||||||
Allowance
for loan losses to
period end loans
|
1.76 | % | 1.19 | % | 1.60 | % | 1.22 | % | ||||||||
Allowance
for loan losses to
nonperforming loans
|
84.37 | % | 3,276.23 | % | 96.12 | % | 303.45 | % | ||||||||
Nonperforming
assets to
total assets
|
1.68 | % | 0.29 | % | 1.67 | % | 0.36 | % | ||||||||
Nonperforming
assets and loans past
due 90 days or more to total
assets
|
1.68 | % | 0.29 | % | 1.67 | % | 0.36 | % |
At
March 31,
|
At
December 31,
|
|||||||||||||||
2009
|
2008
|
|||||||||||||||
%
of Total
|
%
of Total
|
|||||||||||||||
Amount
|
Loans
(1)
|
Amount
|
Loans
(1)
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Residential
real estate loans
|
$ | 503 | 11.85 | % | $ | 103 | 2.43 | % | ||||||||
Home
equity loans and lines
|
682 | 8.24 | % | 469 | 6.91 | % | ||||||||||
Commercial
mortgage loans
|
5,466 | 39.84 | % | 6,003 | 59.82 | % | ||||||||||
Construction
loans
|
4,736 | 29.21 | % | 3,694 | 20.47 | % | ||||||||||
Commercial
and industrial loans
|
2,110 | 10.27 | % | 1,953 | 9.68 | % | ||||||||||
Loans
to individuals
|
358 | 0.59 | % | 363 | 0.69 | % | ||||||||||
Total
allowance
|
$ | 13,855 | 100.00 | % | $ | 12,585 | 100.00 | % |
For
the Three-Month Period Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
Balance
at the beginning of the year
|
$ | 12,585 | $ | 8,273 | ||||
Charge-offs:
|
||||||||
Commercial
and industrial loans
|
363 | - | ||||||
Commercial
real estate loans
|
- | 91 | ||||||
Construction,
acquisition and development
|
39 | 564 | ||||||
Residential
mortgage loans
|
47 | - | ||||||
Consumer
loans
|
1 | - | ||||||
Total
charge-offs
|
450 | 655 | ||||||
Recoveries
|
||||||||
Commercial
and industrial loans
|
23 | - | ||||||
Consumer
loans
|
- | 1 | ||||||
Total
recoveries
|
23 | 1 | ||||||
Net
charge-offs
|
427 | 654 | ||||||
Provision
for loan losses
|
1,697 | 806 | ||||||
Balance
at the end of the period
|
$ | 13,855 | $ | 8,425 | ||||
Total
loans outstanding at period-end
|
$ | 787,657 | $ | 710,545 | ||||
Average
loans outstanding for the period
|
$ | 788,810 | $ | 696,751 | ||||
Allowance
for loan losses to total loans outstanding
|
1.76 | % | 1.19 | % | ||||
Annualized
ratio of net charge-offs to average loans outstanding
|
0.22 | % | 0.38 | % |
Part
II.
|
OTHER
INFORMATION
|
Item
1.
|
Legal
Proceedings.
|
Item
1a.
|
Risk
Factors.
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds.
|
Item
3.
|
Defaults
Upon Senior Debt.
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders
|
Item
5.
|
Other
Information.
|
Item
6.
|
Exhibits
|
(a) Exhibits. | |
31.1
|
Certification
of Principal Executive Officer pursuant to Rule 13a –
14(a)
|
31.2
|
Certification
of Principal Financial Officer pursuant to Rule 13a –
14(a)
|
32.1
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002
|
32.2
|
Certification
of Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
CRESCENT
FINANCIAL CORPORATION
|
|||
Date:
|
May
14, 2009
|
By:
|
/s/
Michael G. Carlton
|
Michael
G. Carlton
|
|||
President
and Chief Executive Officer
|
|||
Date:
|
May
14, 2009
|
By:
|
/s/
Bruce W. Elder
|
Bruce
W. Elder
|
|||
Principal
Financial
Officer
|