x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Delaware
|
43-1930755
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
|
Smaller
reporting company x
|
Page Number
|
||
PART
I
|
||
Item
1.
|
Financial
Statements and Related Notes
|
2 -
19
|
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
20
- 29
|
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
29
- 30
|
Item
4.
|
Controls
and Procedures
|
30
|
PART
II
|
||
Item
1.
|
Legal
Proceedings
|
31
|
Item
1A.
|
Risk
Factors
|
31
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
31
|
Item
3.
|
Defaults
Upon Senior Securities
|
31
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
32
|
Item
5.
|
Other
Information
|
32
|
Item
6.
|
Exhibits
|
32
|
Form
10-Q Signature Page
|
33
|
(Dollars in
thousands)
|
June 30,
|
December
31,
|
||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Cash and cash
equivalents
|
$ | 18,853 | $ | 13,788 | ||||
Investment
securities:
|
||||||||
Available for sale, at fair
value
|
170,062 | 162,245 | ||||||
Other
securities
|
7,909 | 9,052 | ||||||
Loans, net
|
355,306 | 365,772 | ||||||
Loans held for
sale
|
7,544 | 1,487 | ||||||
Premises and equipment,
net
|
16,614 | 13,956 | ||||||
Goodwill
|
12,894 | 12,894 | ||||||
Other intangible assets,
net
|
2,609 | 2,407 | ||||||
Bank owned life
insurance
|
12,242 | 11,996 | ||||||
Accrued interest and other
assets
|
9,107 | 8,617 | ||||||
Total
assets
|
$ | 613,140 | $ | 602,214 | ||||
Liabilities and Stockholders’
Equity
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
demand
|
$ | 57,290 | $ | 49,823 | ||||
Money
market and NOW
|
154,635 | 150,116 | ||||||
Savings
|
28,926 | 26,203 | ||||||
Time,
$100,000 and greater
|
61,461 | 49,965 | ||||||
Time,
other
|
159,266 | 163,439 | ||||||
Total
deposits
|
461,578 | 439,546 | ||||||
Federal Home Loan Bank
borrowings
|
61,117 | 77,319 | ||||||
Other
borrowings
|
28,855 | 27,047 | ||||||
Accrued expenses, taxes and other
liabilities
|
9,041 | 6,896 | ||||||
Total
liabilities
|
560,591 | 550,808 | ||||||
Stockholders'
equity:
|
||||||||
Preferred stock, $0.01 par,
200,000 shares authorized, none issued
|
- | - | ||||||
Common stock, $0.01 par, 7,500,000
shares authorized, 2,411,412 shares issued, at June 30, 2009 and December
31, 2008
|
24 | 24 | ||||||
Additional paid-in
capital
|
23,951 | 23,873 | ||||||
Retained
earnings
|
28,939 | 27,819 | ||||||
Treasury stock, at cost; 39,962
and 39,162 shares at June 30, 2009 and December 31, 2008,
respectively
|
(947 | ) | (935 | ) | ||||
Accumulated other comprehensive
income
|
582 | 625 | ||||||
Total stockholders'
equity
|
52,549 | 51,406 | ||||||
Total liabilities and
stockholders' equity
|
$ | 613,140 | $ | 602,214 |
(Dollars in thousands, except per
share data)
|
Three months ended June
30,
|
Six months ended June
30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Interest
income:
|
||||||||||||||||
Loans:
|
||||||||||||||||
Taxable
|
$ | 5,170 | $ | 6,113 | $ | 10,303 | $ | 12,727 | ||||||||
Tax-exempt
|
64 | 56 | 113 | 99 | ||||||||||||
Investment
securities:
|
||||||||||||||||
Taxable
|
1,069 | 1,198 | 2,185 | 2,421 | ||||||||||||
Tax-exempt
|
621 | 599 | 1,230 | 1,195 | ||||||||||||
Other
|
4 | 19 | 7 | 37 | ||||||||||||
Total interest
income
|
6,928 | 7,985 | 13,838 | 16,479 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
1,558 | 2,615 | 3,197 | 5,737 | ||||||||||||
Borrowed
funds
|
811 | 897 | 1,690 | 1,808 | ||||||||||||
Total interest
expense
|
2,369 | 3,512 | 4,887 | 7,545 | ||||||||||||
Net interest
income
|
4,559 | 4,473 | 8,951 | 8,934 | ||||||||||||
Provision for loan
losses
|
800 | 300 | 1,100 | 900 | ||||||||||||
Net interest income after
provision for loan losses
|
3,759 | 4,173 | 7,851 | 8,034 | ||||||||||||
Non-interest
income:
|
||||||||||||||||
Fees and service
charges
|
1,142 | 1,115 | 2,098 | 2,081 | ||||||||||||
Gains on sale of
loans
|
1,199 | 394 | 1,907 | 739 | ||||||||||||
Gain on prepayment of FHLB
borrowings
|
- | - | - | 246 | ||||||||||||
Bank owned life
insurance
|
124 | 118 | 247 | 234 | ||||||||||||
Other
|
174 | 136 | 287 | 278 | ||||||||||||
Total non-interest
income
|
2,639 | 1,763 | 4,539 | 3,578 | ||||||||||||
Investment securities gains
(losses), net:
|
||||||||||||||||
Impairment losses on investment
securities
|
(60 | ) | - | (910 | ) | - | ||||||||||
Less noncredit-related
losses
|
(189 | ) | - | 334 | - | |||||||||||
Net impairment
losses
|
(249 | ) | - | (576 | ) | - | ||||||||||
Gains on sales of investment
securities
|
- | 497 | - | 497 | ||||||||||||
Investment securities gains
(losses), net
|
(249 | ) | 497 | (576 | ) | 497 | ||||||||||
Non-interest
expense:
|
||||||||||||||||
Compensation and
benefits
|
2,203 | 2,097 | 4,379 | 4,225 | ||||||||||||
Occupancy and
equipment
|
663 | 673 | 1,314 | 1,434 | ||||||||||||
Federal deposit insurance
premiums
|
447 | 13 | 480 | 26 | ||||||||||||
Data
processing
|
204 | 206 | 394 | 403 | ||||||||||||
Amortization of
intangibles
|
191 | 205 | 378 | 409 | ||||||||||||
Professional
fees
|
192 | 121 | 364 | 233 | ||||||||||||
Advertising
|
119 | 89 | 240 | 177 | ||||||||||||
Other
|
926 | 859 | 1,851 | 1,645 | ||||||||||||
Total non-interest
expense
|
4,945 | 4,263 | 9,400 | 8,552 | ||||||||||||
Earnings before income
taxes
|
1,204 | 2,170 | 2,414 | 3,557 | ||||||||||||
Income tax
expense
|
192 | 594 | 393 | 914 | ||||||||||||
Net
earnings
|
$ | 1,012 | $ | 1,576 | $ | 2,021 | $ | 2,643 | ||||||||
Earnings per
share:
|
||||||||||||||||
Basic
|
$ | 0.43 | $ | 0.66 | $ | 0.85 | $ | 1.09 | ||||||||
Diluted
|
$ | 0.43 | $ | 0.66 | $ | 0.85 | $ | 1.08 | ||||||||
Dividends per
share
|
$ | 0.19 | $ | 0.18 | $ | 0.38 | $ | 0.36 |
(Dollars in
thousands)
|
Six months ended June
30,
|
|||||||
2009
|
2008
|
|||||||
Net cash used in operating
activities
|
$ | (712 | ) | $ | (1,220 | ) | ||
Cash flows from investing
activities:
|
||||||||
Net decrease (increase) in
loans
|
12,247 | (2,241 | ) | |||||
Maturities and prepayments of
investment securities
|
29,101 | 7,097 | ||||||
Purchase of investment
securities
|
(37,707 | ) | (25,901 | ) | ||||
Proceeds from sales of investment
securities
|
1,210 | 10,407 | ||||||
Proceeds from sales of premises
and equipment and foreclosed assets
|
1,095 | 668 | ||||||
Purchases of premises and
equipment, net
|
(552 | ) | (472 | ) | ||||
Net cash paid in branch
acquisition
|
(130 | ) | - | |||||
Net cash provided by (used in)
investing activities
|
5,264 | (10,442 | ) | |||||
Cash flows from financing
activities:
|
||||||||
Net increase (decrease) in
deposits
|
15,636 | (4,855 | ) | |||||
Federal Home Loan Bank advance
borrowings
|
- | 35,000 | ||||||
Federal Home Loan Bank advance
repayments
|
(10,018 | ) | (13,518 | ) | ||||
Federal Home Loan Bank line of
credit, net
|
(6,000 | ) | (6,400 | ) | ||||
Other borrowings,
net
|
1,808 | 3,903 | ||||||
Purchase of treasury
stock
|
(12 | ) | (3,296 | ) | ||||
Proceeds from issuance of stock
under stock option plans
|
- | 30 | ||||||
Excess tax benefit related to
stock option plans
|
- | 5 | ||||||
Payment of
dividends
|
(901 | ) | (887 | ) | ||||
Net cash provided by financing
activities
|
513 | 9,982 | ||||||
Net increase (decrease) in cash
and cash equivalents
|
5,065 | (1,680 | ) | |||||
Cash and cash equivalents at
beginning of period
|
13,788 | 14,739 | ||||||
Cash and cash equivalents at end
of period
|
$ | 18,853 | $ | 13,059 | ||||
Supplemental disclosure of cash
flow information:
|
||||||||
Cash paid during period for
interest
|
$ | 4,832 | $ | 7,776 | ||||
Cash paid during period for taxes,
net
|
312 | 213 | ||||||
Supplemental schedule of non-cash
investing and financing activities:
|
||||||||
Transfer of loans to real estate
owned
|
$ | 1,140 | $ | 1,346 | ||||
Branch
acquisition:
|
||||||||
Fair value of liabilities
assumed
|
6,650 | - | ||||||
Fair value of assets
acquired
|
6,520 | - |
(Dollars in thousands, except per
share data)
|
Common
stock
|
Additional
paid-in
capital
|
Retained
earnings
|
Treasury
stock
|
Accumulated
other
comprehensive
income
|
Total
|
||||||||||||||||||
Balance
at December 31, 2007
|
$ | 24 | $ | 24,304 | $ | 27,493 | $ | (206 | ) | $ | 680 | $ | 52,295 | |||||||||||
Comprehensive
income:
|
- | |||||||||||||||||||||||
Net
earnings
|
- | - | 2,643 | - | - | 2,643 | ||||||||||||||||||
Change
in fair value of investment securities available-for-sale, net of
tax
|
- | - | - | - | (931 | ) | (931 | ) | ||||||||||||||||
Total
comprehensive income
|
- | - | 2,643 | - | (931 | ) | 1,712 | |||||||||||||||||
Dividends
paid ($0.36 per share)
|
- | - | (887 | ) | - | - | (887 | ) | ||||||||||||||||
Stock-based
compensation
|
- | 57 | - | - | - | 57 | ||||||||||||||||||
Exercise
of stock options, 1,882 shares, including tax benefit of
$5,010
|
- | 35 | - | - | - | 35 | ||||||||||||||||||
Purchase
of 134,385 treasury shares
|
- | - | - | (3,296 | ) | - | (3,296 | ) | ||||||||||||||||
Adoption
of EITF 06-4
|
- | - | (335 | ) | - | - | (335 | ) | ||||||||||||||||
Balance
June 30, 2008
|
$ | 24 | $ | 24,396 | $ | 28,914 | $ | (3,502 | ) | $ | (251 | ) | $ | 49,581 | ||||||||||
Balance
at December 31, 2008
|
$ | 24 | $ | 23,873 | $ | 27,819 | $ | (935 | ) | $ | 625 | $ | 51,406 | |||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||
Net
earnings
|
- | - | 2,021 | - | - | 2,021 | ||||||||||||||||||
Change
in fair value of investment securities available-for-sale for which a
portion of an other than temporary impairment has been recorded in net
earnings, net of tax
|
- | - | - | - | 246 | 246 | ||||||||||||||||||
Change
in fair value of all other investment securities available-for-sale, net
of tax
|
- | - | - | - | (289 | ) | (289 | ) | ||||||||||||||||
Total
comprehensive income
|
- | - | 2,021 | - | (43 | ) | 1,978 | |||||||||||||||||
Dividends
paid ($0.38 per share)
|
- | - | (901 | ) | - | - | (901 | ) | ||||||||||||||||
Stock-based
compensation
|
- | 78 | - | - | - | 78 | ||||||||||||||||||
Purchase
of 800 shares treasury shares
|
- | - | - | (12 | ) | - | (12 | ) | ||||||||||||||||
Balance
at June 30, 2009
|
$ | 24 | $ | 23,951 | $ | 28,939 | $ | (947 | ) | $ | 582 | $ | 52,549 |
1.
|
Interim
Financial Statements
|
2.
|
Goodwill
and Other Intangible Assets
|
Three months ended June 30,
|
||||||||||||||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||||||||||
Fair value at
acquisition
|
Accumulated
Amortization
|
Fair value at
acquisition
|
Accumulated
Amortization
|
|||||||||||||
Balance
at beginning of period
|
$ | 5,396 | $ | (3,314 | ) | $ | 5,396 | $ | (2,641 | ) | ||||||
Additions
|
86 | - | - | - | ||||||||||||
Amortization
|
- | (153 | ) | - | (177 | ) | ||||||||||
Balance
at end of period
|
$ | 5,482 | $ | (3,467 | ) | $ | 5,396 | $ | (2,818 | ) |
Six months ended June 30,
|
||||||||||||||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||||||||||
Fair value at
acquisition
|
Accumulated
Amortization
|
Fair value at
acquisition
|
Accumulated
Amortization
|
|||||||||||||
Balance
at beginning of period
|
$ | 5,396 | $ | (3,159 | ) | $ | 5,396 | $ | (2,462 | ) | ||||||
Additions
|
86 | - | - | - | ||||||||||||
Amortization
|
- | (308 | ) | - | (356 | ) | ||||||||||
Balance
at end of period
|
$ | 5,482 | $ | (3,467 | ) | $ | 5,396 | $ | (2,818 | ) |
Three months ended June 30,
|
||||||||||||||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||||||||||
Cost
|
Accumulated
Amortization
|
Cost
|
Accumulated
Amortization
|
|||||||||||||
Balance
at beginning of period
|
$ | 893 | $ | (600 | ) | $ | 771 | $ | (572 | ) | ||||||
Additions
|
339 | - | 19 | - | ||||||||||||
Prepayments/maturities
|
(21 | ) | 21 | (19 | ) | 19 | ||||||||||
Amortization
|
- | (38 | ) | - | (28 | ) | ||||||||||
Balance
at end of period
|
$ | 1,211 | $ | (617 | ) | $ | 771 | $ | (581 | ) |
Six months ended June 30,
|
||||||||||||||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||||||||||
Cost
|
Accumulated
Amortization
|
Cost
|
Accumulated
Amortization
|
|||||||||||||
Balance
at beginning of period
|
$ | 772 | $ | (602 | ) | $ | 770 | $ | (560 | ) | ||||||
Additions
|
494 | - | 33 | - | ||||||||||||
Prepayments/maturities
|
(55 | ) | 55 | (32 | ) | 32 | ||||||||||
Amortization
|
- | (70 | ) | - | (53 | ) | ||||||||||
Balance
at end of period
|
$ | 1,211 | $ | (617 | ) | $ | 771 | $ | (581 | ) |
Year
|
Amount (in thousands)
|
|||
Remainder
of 2009
|
$ | 376 | ||
2010
|
667 | |||
2011
|
567 | |||
2012
|
471 | |||
2013
|
297 | |||
Thereafter
|
231 |
3.
|
Investments
|
As of June 30,
2009
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
|||||||||||||
(Dollars in
thousands)
|
cost
|
gains
|
losses
|
fair value
|
||||||||||||
U. S. federal agency
obligations
|
$ | 26,652 | $ | 626 | $ | (1 | ) | $ | 27,277 | |||||||
Municipal
obligations
|
67,096 | 1,028 | (631 | ) | 67,493 | |||||||||||
Mortgage-backed
securities
|
62,514 | 1,400 | (3 | ) | 63,911 | |||||||||||
Pooled trust preferred
securities
|
1,914 | - | (1,595 | ) | 319 | |||||||||||
Common
stocks
|
693 | 112 | (17 | ) | 788 | |||||||||||
Certificates of
deposit
|
10,274 | - | - | 10,274 | ||||||||||||
Total
|
$ | 169,143 | $ | 3,166 | $ | (2,247 | ) | $ | 170,062 |
As of December 31,
2008
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
|||||||||||||
(Dollars in
thousands)
|
cost
|
gains
|
losses
|
fair value
|
||||||||||||
U. S. federal agency
obligations
|
$ | 28,566 | $ | 950 | $ | (2 | ) | $ | 29,514 | |||||||
Municipal
obligations
|
63,711 | 1,532 | (934 | ) | 64,309 | |||||||||||
Mortgage-backed
securities
|
55,752 | 934 | (104 | ) | 56,582 | |||||||||||
Pooled trust preferred
securities
|
2,488 | — | (1,748 | ) | 740 | |||||||||||
Common
stocks
|
693 | 389 | (8 | ) | 1,074 | |||||||||||
Certificates of
deposit
|
10,026 | — | — | 10,026 | ||||||||||||
Total
|
$ | 161,236 | $ | 3,805 | $ | (2,796 | ) | $ | 162,245 |
(Dollars
in thousands)
|
As
of June 30, 2009
|
||||||||||||||||||||||||||
Number
|
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||||
of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||||
securities
|
value
|
losses
|
value
|
losses
|
value
|
losses
|
|||||||||||||||||||||
U.
S. federal agency obligations
|
3
|
$ | 160 | $ | (1 | ) | - | - | $ | 160 | $ | (1 | ) | ||||||||||||||
Municipal
obligations
|
51
|
16,184 | (417 | ) | 3,073 | (214 | ) | 19,257 | (631 | ) | |||||||||||||||||
Mortgage-backed
securities
|
6
|
3,840 | (3 | ) | 69 | - | 3,909 | (3 | ) | ||||||||||||||||||
Pooled
trust preferred securities
|
3
|
- | - | 319 | (1,595 | ) | 319 | (1,595 | ) | ||||||||||||||||||
Common
stocks
|
5
|
75 | (17 | ) | - | - | 75 | (17 | ) | ||||||||||||||||||
Total
|
68
|
$ | 20,259 | $ | (438 | ) | $ | 3,461 | $ | (1,809 | ) | $ | 23,720 | $ | (2,247 | ) |
(Dollars
in thousands)
|
As
of December 31, 2008
|
||||||||||||||||||||||||||
Number
|
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||||
of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||||
securities
|
value
|
losses
|
value
|
losses
|
value
|
losses
|
|||||||||||||||||||||
U.
S. federal agency obligations
|
3
|
$ | 64 | $ | - | $ | 133 | $ | (2 | ) | $ | 197 | $ | (2 | ) | ||||||||||||
Municipal
obligations
|
56
|
13,282 | (466 | ) | 8,542 | (468 | ) | 21,824 | (934 | ) | |||||||||||||||||
Mortgage-backed
securities
|
80
|
12,219 | (78 | ) | 3,400 | (26 | ) | 15,619 | (104 | ) | |||||||||||||||||
Pooled
trust preferred securities
|
3
|
- | - | 740 | (1,748 | ) | 740 | (1,748 | ) | ||||||||||||||||||
Common
stocks
|
3
|
13 | (2 | ) | 18 | (6 | ) | 31 | (8 | ) | |||||||||||||||||
Total
|
145
|
$ | 25,578 | $ | (546 | ) | $ | 12,834 | $ | (2,250 | ) | $ | 38,412 | $ | (2,796 | ) |
Three months
ending
|
Six months
ending
|
|||||||
(Dollars in
thousands)
|
June 30,
2009
|
June 30,
2009
|
||||||
Beginning
balance
|
$ | 327 | $ | - | ||||
Additional credit
losses:
|
||||||||
Securities with no previous other
than temporary impairment
|
- | 576 | ||||||
Securities with previous other
than temporary impairments
|
249 | - | ||||||
Ending
balance
|
$ | 576 | $ | 576 |
(Dollars in
thousands)
|
Amortized
cost
|
Estimated
fair value
|
||||||
Due in less than one
year
|
$ | 27,749 | $ | 26,262 | ||||
Due after one year but within five
years
|
25,349 | 25,984 | ||||||
Due after five
years
|
52,837 | 53,115 | ||||||
Mortgage-backed securities and
common stock
|
63,208 | 64,700 | ||||||
Total
|
$ | 169,143 | $ | 170,062 |
4.
|
Loans
|
(Dollars in thousands)
|
June 30,
2009
|
Percent of
total
|
December 31,
2008
|
Percent of
total
|
||||||||||||
Real estate
loans:
|
||||||||||||||||
One-to-four family
residential
|
$ | 104,342 | 29.0 | % | $ | 112,815 | 30.5 | % | ||||||||
Commercial
|
127,824 | 35.6 | % | 126,977 | 34.4 | % | ||||||||||
Construction
|
12,709 | 3.5 | % | 19,618 | 5.3 | % | ||||||||||
Commercial
loans
|
107,140 | 29.8 | % | 101,976 | 27.6 | % | ||||||||||
Consumer
loans
|
7,545 | 2.1 | % | 7,937 | 2.2 | % | ||||||||||
Total
|
359,560 | 100.0 | % | 369,323 | 100.0 | % | ||||||||||
Less: Deferred loan
fees/costs and loans in process
|
(571 | ) | (320 | ) | ||||||||||||
Less: Allowance for
loan losses
|
4,827 | 3,871 | ||||||||||||||
Loans, net
|
$ | 355,306 | $ | 365,772 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
(Dollars in
thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Beginning
balance
|
$ | 4,307 | $ | 3,288 | $ | 3,871 | $ | 4,172 | ||||||||
Provision
for loan losses
|
800 | 300 | 1,100 | 900 | ||||||||||||
Charge-offs
|
(298 | ) | (277 | ) | (380 | ) | (1,780 | ) | ||||||||
Recoveries
|
18 | 15 | 236 | 34 | ||||||||||||
Ending
balance
|
$ | 4,827 | $ | 3,326 | $ | 4,827 | $ | 3,326 |
(Dollars in
thousands)
|
June 30,
2009
|
December 31,
2008
|
||||||
Real
estate loans:
|
||||||||
One-to-four
family residential
|
$ | 742 | $ | 1,358 | ||||
Commercial
|
1,867 | 2,041 | ||||||
Construction
|
5,254 | 759 | ||||||
Commercial
loans
|
5,679 | 1,537 | ||||||
Consumer
loans
|
26 | 53 | ||||||
Total
non-accrual loans
|
$ | 13,568 | $ | 5,748 |
(Dollars in
thousands)
|
June 30,
2009
|
December 31,
2008
|
||||||
Total
non-accrual loans
|
$ | 13,568 | $ | 5,748 | ||||
Accruing
loans over 90 days past due
|
- | - | ||||||
Other
real estate owned
|
1,916 | 1,934 | ||||||
Total
nonperforming assets
|
$ | 15,484 | $ | 7,682 | ||||
Total
nonperforming loans to total loans, net
|
3.8% | 1.6% | ||||||
Total
nonperforming assets to total assets
|
2.5% | 1.3% | ||||||
Allowance
for loan losses to gross loans outstanding
|
1.3% | 1.0% | ||||||
Allowance
for loan losses to total nonperforming loans
|
35.6% | 67.3% |
(Dollars in
thousands)
|
June 30,
2009
|
December 31,
2008
|
||||||
Impaired loans for which an
allowance has been provided
|
$ | 10,999 | $ | 1,867 | ||||
Impaired loans for which no
allowance has been provided
|
2,709 | 5,192 | ||||||
Total impaired
loans
|
13,708 | 7,059 | ||||||
Allowance related to impaired
loans
|
$ | 2,215 | $ | 705 |
5.
|
Fair
Value Measurements
|
•
Level 1:
|
Unadjusted
quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted assets or
liabilities.
|
• Level 2:
|
Quoted
prices for similar assets in active markets, quoted prices in markets that
are not active or quoted prices that contain observable inputs such as
yield curves, volatilities, prepayment speeds and other inputs derived
from market data.
|
• Level 3:
|
Quoted
prices or valuation techniques that require inputs that are both
significant to the fair value measurement and
unobservable.
|
As of June 30, 2009
|
||||||||||||||||
Fair value hierarchy
|
||||||||||||||||
(Dollars in
thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets:
|
||||||||||||||||
Available-for-sale
securities
|
$ | 170,062 | $ | 728 | $ | 169,015 | $ | 319 | ||||||||
Liabilities:
|
||||||||||||||||
Derivative
financial instruments
|
34 | - | - | 34 |
As of December 31, 2008
|
||||||||||||||||
Fair value hierarchy
|
||||||||||||||||
(Dollars in
thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets:
|
||||||||||||||||
Available-for-sale
securities
|
$ | 162,245 | $ | 1,014 | $ | 160,490 | $ | 740 | ||||||||
Derivative
financial instruments
|
18 | - | - | 18 |
Derivative
|
||||||||
Available-for
|
financial
|
|||||||
(Dollars in thousands)
|
sale-securities
|
instruments
|
||||||
Level
3 fair value at December 31, 2008
|
$ | 740 | $ | 18 | ||||
Transfers
into Level 3
|
- | |||||||
Total
gains (losses)
|
||||||||
Included
in earnings
|
(576 | ) | (52 | ) | ||||
Included
in other comprehensive income
|
(155 | ) | - | |||||
Level
3 asset (liability) fair value at June 30, 2009
|
$ | 319 | $ | (34 | ) |
(Dollars
in thousands)
|
Fair value hierarchy
|
Total
gains
|
||||||||||||||||||
Assets:
|
Total
|
Level 1
|
Level 2
|
Level 3
|
(losses)
|
|||||||||||||||
Other
investment securities
|
$ | 7,909 | $ | - | $ | - | $ | 7,909 | $ | - | ||||||||||
Impaired
loans
|
11,492 | - | - | 11,492 | (1,510 | ) | ||||||||||||||
Loans
held for sale
|
7,603 | - | 7,603 | - | - | |||||||||||||||
Other
real estate owned
|
1,916 | - | - | 1,916 | (100 | ) |
6.
|
Fair
Value of Financial
Instruments
|
As of June 30, 2009
|
As of December 31, 2008
|
|||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
amount
|
fair value
|
amount
|
fair value
|
|||||||||||||
Cash and cash
equivalents
|
$ | 18,853 |