x
|
QUARTERLY REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION REPORT UNDER SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Maryland
|
32-0135202
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Large
accelerated filer o
|
Accelerated
filer o
|
|
Non-accelerated
filer o
|
Smaller
reporting company x
|
|
(Do
not check if a smaller reporting company)
|
Common
Stock, Par Value $0.01
|
Outstanding
at May 14, 2010
|
(Title
of Class)
|
2,884,249
shares
|
PAGE
|
||||
PART
I – FINANCIAL INFORMATION
|
||||
ITEM
1 -
|
UNAUDITED
FINANCIAL STATEMENTS
|
|||
Consolidated
Balance Sheet at
|
||||
March
31, 2010 and December 31, 2009
|
3
|
|||
Consolidated
Statements of Income for the Three Months
|
||||
Ended
March 31, 2010 and March 31, 2009
|
4
|
|||
Consolidated
Statement of Changes in Stockholders’ Equity
|
||||
for
the Three Months Ended March 31, 2010
|
5
|
|||
Consolidated
Statements of Cash Flows for the Three Months Ended
|
||||
March
31, 2010 and March 31, 2009
|
6
|
|||
Notes
to Unaudited Consolidated Financial Statements
|
7
|
|||
ITEM
2 -
|
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
16
|
||
ITEM
3 -
|
QUALITITATIVE
AND QUANITIATIVE DISCLOSURES ABOUT MARKET RISK
|
23
|
||
ITEM
4 -
|
CONTROLS
AND PROCEDURES
|
23
|
||
Part
II - OTHER INFORMATION
|
||||
ITEM
1 -
|
LEGAL
PROCEEDINGS
|
24
|
||
ITEM 1A -
|
RISK FACTORS | 24 | ||
ITEM
2 -
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
24
|
||
ITEM
3 -
|
DEFAULTS
UPON SENIOR SECURITIES
|
24
|
||
ITEM
4 -
|
OTHER
INFORMATION
|
24
|
||
ITEM
5 -
|
EXHIBITS
|
24
|
||
Section
302 Certifications
|
||||
Section
906 Certifications
|
PART
I - FINANCIAL INFORMATION
|
||||||||
ITEM
1 - FINANCIAL STATEMENTS
|
||||||||
First
Federal of Northern Michigan Bancorp, Inc. and
Subsidiaries
|
||||||||
Consolidated
Balance Sheet
|
||||||||
March 31, 2010
|
December 31, 2009
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and cash equivalents:
|
||||||||
Cash
on hand and due from banks
|
$ | 1,900,416 | $ | 2,583,131 | ||||
Overnight
deposits with FHLB
|
957,583 | 515,927 | ||||||
Total
cash and cash equivalents
|
2,857,999 | 3,099,058 | ||||||
Securities
AFS
|
33,036,832 | 33,712,724 | ||||||
Securities
HTM
|
3,925,900 | 3,928,167 | ||||||
Loans
held for sale
|
78,600 | 51,970 | ||||||
Loans
receivable, net of allowance for loan losses of $3,488,356
and
|
||||||||
$3,660,334
as of March 31, 2010 and December 31, 2009, respectively
|
168,447,089 | 171,219,105 | ||||||
Foreclosed
real estate and other repossessed assets
|
3,618,759 | 3,579,895 | ||||||
Federal
Home Loan Bank stock, at cost
|
4,196,900 | 4,196,900 | ||||||
Premises
and equipment
|
6,435,712 | 6,563,683 | ||||||
Accrued
interest receivable
|
1,230,488 | 1,230,287 | ||||||
Intangible
assets
|
846,644 | 919,757 | ||||||
Prepaid
FDIC Premiums
|
1,225,090 | 1,314,850 | ||||||
Deferred
Tax Asset
|
458,531 | 559,235 | ||||||
Other
assets
|
3,188,349 | 3,130,063 | ||||||
Total
assets
|
$ | 229,546,893 | $ | 233,505,694 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$ | 156,612,187 | $ | 158,099,809 | ||||
Advances
from borrowers for taxes and insurance
|
276,519 | 105,419 | ||||||
Federal
Home Loan Bank Advances
|
42,200,000 | 44,400,000 | ||||||
Note
Payable
|
- | 630,927 | ||||||
REPO
Sweep Accounts
|
5,596,791 | 5,407,791 | ||||||
Accrued
expenses and other liabilities
|
1,583,097 | 1,809,266 | ||||||
Total
liabilities
|
206,268,594 | 210,453,212 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock ($0.01 par value 20,000,000 shares authorized
|
||||||||
3,191,999
shares issued)
|
31,920 | 31,920 | ||||||
Additional
paid-in capital
|
23,744,409 | 23,722,767 | ||||||
Retained
earnings
|
2,202,566 | 2,000,264 | ||||||
Treasury
stock at cost (307,750 shares)
|
(2,963,918 | ) | (2,963,918 | ) | ||||
Unearned
compensation
|
(130,516 | ) | (161,678 | ) | ||||
Accumulated
other comprehensive income
|
393,838 | 423,127 | ||||||
Total
stockholders' equity
|
23,278,299 | 23,052,482 | ||||||
Total
liabilities and stockholders' equity
|
$ | 229,546,893 | $ | 233,505,694 | ||||
See
accompanying notes to consolidated financial statements.
|
First
Federal of Northern Michigan Bancorp, Inc. and
Subsidiaries
|
||||||||
Consolidated
Statement of Income
|
||||||||
For
the Three Months
|
||||||||
Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Interest
income:
|
||||||||
Interest
and fees on loans
|
$ | 2,540,413 | $ | 2,942,340 | ||||
Interest
and dividends on investments
|
||||||||
Taxable
|
132,563 | 143,802 | ||||||
Tax-exempt
|
52,812 | 53,596 | ||||||
Interest
on mortgage-backed securities
|
156,533 | 150,826 | ||||||
Total
interest income
|
2,882,321 | 3,290,564 | ||||||
Interest
expense:
|
||||||||
Interest
on deposits
|
637,824 | 1,060,286 | ||||||
Interest
on borrowings
|
318,582 | 428,559 | ||||||
Total
interest expense
|
956,406 | 1,488,845 | ||||||
Net
interest income
|
1,925,915 | 1,801,718 | ||||||
Provision
for loan losses
|
11,088 | 264,230 | ||||||
Net
interest income after provision for loan losses
|
1,914,827 | 1,537,488 | ||||||
Non-interest
income:
|
||||||||
Service
charges and other fees
|
204,174 | 214,872 | ||||||
Mortgage
banking activities
|
248,092 | 449,205 | ||||||
Gain
on sale of available-for-sale investments
|
49,430 | - | ||||||
Net
gain (loss) on sale of premises and equipment,
|
||||||||
real
estate owned and other repossessed assets
|
11,176 | 71,542 | ||||||
Other
|
65,613 | 62,617 | ||||||
Total
non-interest income
|
578,485 | 798,236 | ||||||
Non-interest
expense:
|
||||||||
Compensation
and employee benefits
|
1,170,942 | 1,147,802 | ||||||
FDIC
Insurance Premiums
|
94,200 | 79,564 | ||||||
Advertising
|
19,889 | 17,550 | ||||||
Occupancy
|
312,576 | 302,418 | ||||||
Amortization
of intangible assets
|
73,113 | 89,117 | ||||||
Service
bureau charges
|
79,582 | 91,959 | ||||||
Professional
services
|
103,111 | 102,904 | ||||||
Other
|
335,683 | 306,500 | ||||||
Total
non-interest expense
|
2,189,096 | 2,137,814 | ||||||
Income
from continuing operations before income tax expense
(benefit)
|
304,216 | 197,911 | ||||||
Income
tax expense from continuing operations
|
101,913 | 51,412 | ||||||
Net
income from continuing operations
|
202,303 | 146,499 | ||||||
Discontinued
Operations:
|
||||||||
Loss
from discontinued operations, net of income tax benefit
|
||||||||
of
$0 and $43,209
|
- | (83,875 | ) | |||||
Gain
on sale of discontinued operations, net of income tax
expense
|
||||||||
of
$0 and $19,585
|
- | 38,017 | ||||||
Loss
from discontinued operations
|
- | (45,858 | ) | |||||
Net
Income
|
$ | 202,303 | $ | 100,641 | ||||
Per
share data:
|
||||||||
Income
per share from continuing operations
|
||||||||
Basic
|
$ | 0.07 | $ | 0.05 | ||||
Diluted
|
$ | 0.07 | $ | 0.05 | ||||
Loss
per share from discontinued operations
|
||||||||
Basic
|
$ | - | $ | (0.02 | ) | |||
Diluted
|
$ | - | $ | (0.02 | ) | |||
Net
income per share
|
||||||||
Basic
|
$ | 0.07 | $ | 0.03 | ||||
Diluted
|
$ | 0.07 | $ | 0.03 | ||||
Weighted
average number of shares outstanding
|
||||||||
Basic
|
2,884,249 | 2,884,249 | ||||||
Including
dilutive stock options
|
2,884,249 | 2,884,249 | ||||||
Dividends
per common share
|
$ | - | $ | - | ||||
See
accompanying notes to consolidated financial statements.
|
First
Federal of Northern Michigan Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||||||||||
Consolidated
Statement of Changes in Stockholders' Equity (Unaudited)
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||||||
Common
|
Treasury
|
Paid-in
|
Unearned
|
Retained
|
Comprehensive
|
|||||||||||||||||||||||
Stock
|
Stock
|
Capital
|
Compensation
|
Earnings
|
Income
|
Total
|
||||||||||||||||||||||
Balance
at December 31, 2009
|
$ | 31,920 | $ | (2,963,918 | ) | $ | 23,722,767 | $ | (161,678 | ) | $ | 2,000,263 | $ | 423,127 | $ | 23,052,481 | ||||||||||||
Stock
Options/MRP shares expensed
|
- | - | 21,642 | 31,162 | - | - | 52,804 | |||||||||||||||||||||
Net
income for the period
|
- | - | - | - | 202,303 | - | 202,303 | |||||||||||||||||||||
Change
in unrealized gain:
|
||||||||||||||||||||||||||||
on
available-for-sale securities
|
||||||||||||||||||||||||||||
(net
of tax of $15,088)
|
- | - | - | - | - | (29,289 | ) | (29,289 | ) | |||||||||||||||||||
Total
comprehensive income
|
- | - | - | - | - | - | 173,014 | |||||||||||||||||||||
Balance
at March 31, 2010
|
$ | 31,920 | $ | (2,963,918 | ) | $ | 23,744,409 | $ | (130,516 | ) | $ | 2,202,566 | $ | 393,838 | $ | 23,278,299 | ||||||||||||
See
accompanying notes to the consolidated financial
statements.
|
First
Federal of Northern Michigan Bancorp, Inc. and
Subsidiaries
|
||||||||
Consolidated
Statement of Cash Flows
|
||||||||
For
Three Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Cash
Flows from Operating Activities:
|
||||||||
Net
income
|
$ | 202,303 | $ | 100,641 | ||||
Adjustments
to reconcile net income to net cash from operating
activities:
|
||||||||
Depreciation
and amortization
|
207,170 | 198,114 | ||||||
Provision
for loan loss
|
11,088 | 264,230 | ||||||
Amortization
and accretion on securities
|
31,596 | 12,471 | ||||||
Gain
on sale of investment securities
|
(49,430 | ) | - | |||||
ESOP
contribution
|
- | 3,294 | ||||||
Stock
awards/options
|
52,804 | 52,803 | ||||||
Gain
on sale of loans held for sale
|
(93,199 | ) | (195,778 | ) | ||||
Originations
of loans held for sale
|
(6,947,064 | ) | (17,351,274 | ) | ||||
Proceeds
from sale of loans held for sale
|
7,013,633 | 16,257,368 | ||||||
Gain
on sale of fixed assets
|
- | (43,807 | ) | |||||
Net
change in:
|
||||||||
Accrued
interest receivable
|
(201 | ) | (14,524 | ) | ||||
Other
assets
|
(82,065 | ) | (17,397 | ) | ||||
Prepaid
FDIC insurance premiums
|
89,760 | - | ||||||
Deferred
income tax benefit
|
100,704 | (657,470 | ) | |||||
Accrued
expenses and other liabilities
|
(226,169 | ) | 967,048 | |||||
Net
cash provided by (used in) operating activities
|
310,930 | (424,281 | ) | |||||
Cash
Flows from Investing Activities:
|
||||||||
Net
decrease in loans
|
2,760,929 | 319,016 | ||||||
Proceeds
from maturity and sale of available-for-sale securities
|
5,249,241 | 1,423,900 | ||||||
Proceeds
from sale of property and equipment
|
- | 306,772 | ||||||
Net
change in discontinued operations
|
- | 1,533,942 | ||||||
Purchase
of securities
|
(4,597,624 | ) | (5,172,882 | ) | ||||
Purchase
of premises and equipment
|
(6,086 | ) | (10,768 | ) | ||||
Net
cash provided by (used for) investing activities
|
3,406,460 | (1,600,020 | ) | |||||
Cash
Flows from Financing Activities:
|
||||||||
Net
decrease in deposits
|
(1,487,622 | ) | (1,381,391 | ) | ||||
Net
increase in Repo Sweep accounts
|
189,000 | (1,875,510 | ) | |||||
Net
increase in advances from borrowers
|
171,100 | 170,701 | ||||||
Additions
to advances from Federal Home Loan Bank and notes payable
|
10,025,000 | 8,600,000 | ||||||
Repayments
of Federal Home Loan Bank advances and notes payable
|
(12,855,927 | ) | (4,450,000 | ) | ||||
Net
cash provided by (used for) financing activities
|
(3,958,449 | ) | 1,063,800 | |||||
Net
increase (decrease) in cash and cash equivalents
|
(241,059 | ) | (960,501 | ) | ||||
Cash
and cash equivalents at beginning of period
|
3,099,058 | 3,470,311 | ||||||
Cash
and cash equivalents at end of period
|
$ | 2,857,999 | $ | 2,509,810 | ||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for income taxes
|
$ | - | $ | - | ||||
Cash
paid during the period for interest
|
$ | 1,006,607 | $ | 1,479,994 | ||||
See
accompanying notes to the consolidated financial
statements.
|
At
March 31,
|
At
December 31,
|
|||||||
2010
|
2009
|
|||||||
(in
thousands)
|
||||||||
Real
estate loans:
|
||||||||
Residential
mortgage
|
$ | 79,634 | $ | 81,620 | ||||
Commercial
loans:
|
||||||||
Secured
by real estate
|
62,528 | 62,376 | ||||||
Other
|
9,835 | 9,873 | ||||||
Total
commercial loans
|
72,363 | 72,249 | ||||||
Consumer
loans:
|
||||||||
Secured
by real estate
|
17,838 | 18,732 | ||||||
Other
|
2,358 | 2,553 | ||||||
Total
consumer loans
|
20,196 | 21,285 | ||||||
Total
gross loans
|
$ | 172,193 | $ | 175,154 | ||||
Less:
|
||||||||
Net
deferred loan fees
|
(258 | ) | (275 | ) | ||||
Allowance
for loan losses
|
(3,488 | ) | (3,660 | ) | ||||
Total
loans, net
|
$ | 168,447 | $ | 171,219 | ||||
As
of
|
As
of
|
|||||||
March
31
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Dollars
in thousands)
|
||||||||
Allowance
at beginning of period
|
$ | 3,660 | $ | 5,647 | ||||
Charge-offs:
|
||||||||
Real
Estate:
|
||||||||
Residential
Mortgages
|
104 | 362 | ||||||
Nonresidential
Real Estate:
|
||||||||
Commercial
Mortgages
|
15 | 4,903 | ||||||
Purchased
Out-of-State
|
- | 2,482 | ||||||
Non
Real Estate Loans:
|
||||||||
Commercial
|
- | 246 | ||||||
Consumer
and other
|
70 | 254 | ||||||
Total
charge offs
|
189 | 8,247 | ||||||
Recoveries:
|
||||||||
Non
Real Estate Loans:
|
||||||||
Consumer
and other
|
6 | 64 | ||||||
Total
recoveries
|
6 | 64 | ||||||
Net
(charge offs) recoveries
|
(183 | ) | (8,183 | ) | ||||
Provision
for loan losses
|
11 | 6,196 | ||||||
Balance
at end of year
|
$ | 3,488 | $ | 3,660 |
Weighted-Average
|
||||||||||||
Weighted-
|
Remaining
|
|||||||||||
Average
|
Contractual
Term
|
Aggregate
|
||||||||||
Options
|
Shares
|
Exercise
Price
|
(Years)
|
Intrinsic
Value
|
||||||||
Outstanding
at January 1, 2010
|
188,132 | $ | 9.47 | |||||||||
Granted
|
0 | N/A | ||||||||||
Exercised
|
0 | N/A | ||||||||||
Forfeited
or expired
|
(200 | ) | $ | 9.20 | ||||||||
Oustanding
at March 31, 2010
|
187,932 | $ | 9.47 |
6.01
|
$
|
0
|
||||||
Options
Exercisable at March 31, 2010
|
121,516 | $ | 9.43 |
5.92
|
$
|
0
|
Weighted-Average
|
||||||||
Grant-Date
|
||||||||
Nonvested
Shares
|
Shares
|
Fair
Value
|
||||||
Nonvested
at January 1, 2010
|
73,476 | $ | 2.11 | |||||
Granted
|
0 | N/A | ||||||
Vested
|
(6,860 | ) | $ | 1.94 | ||||
Forfeited
|
(200 | ) | $ | 1.94 | ||||
Nonvested
at March 31, 2010
|
66,416 | $ | 2.12 |
For
the Three Months Ended
|
||||||||||||||||
March
31, 2009
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Bank
|
ICA
|
Eliminations
|
Total
|
|||||||||||||
Interest
Income
|
$ | 3,290 | $ | 4 | $ | (4 | ) | $ | 3,290 | |||||||
Interest
Expense
|
1,489 | 4 | (4 | ) | 1,489 | |||||||||||
Net Interest Income -
Before provision for loan losses
|
1,801 | - | - | 1,801 | ||||||||||||
Provision
for Loan Losses
|
264 | - | - | 264 | ||||||||||||
Net Interest Income -
After provision for loan losses
|
1,537 | - | - | 1,537 | ||||||||||||
Other
Income
|
1,038 | 191 | - | 1,229 | ||||||||||||
Operating
Expenses
|
2,346 | 292 | - | 2,638 | ||||||||||||
Income (Loss) - Before
federal income tax
|
229 | (101 | ) | - | 128 | |||||||||||
Federal
Income Tax
|
61 | (34 | ) | - | 27 | |||||||||||
Net
Income (Loss)
|
$ | 168 | $ | (67 | ) | $ | - | $ | 101 | |||||||
Depreciation
and amortization
|
$ | 191 | $ | 42 | $ | - | $ | 233 | ||||||||
Assets
|
$ | 249,757 | $ | - | $ | - | $ | 249,757 | ||||||||
Expenditures
related to long-lived assets:
|
||||||||||||||||
Goodwill
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Intangible
assets
|
- | - | - | - | ||||||||||||
Property
and equipment
|
11 | - | - | 11 | ||||||||||||
Total
|
$ | 11 | $ | - | $ | - | $ | 11 |
Assets
and Liabilities Measured at Fair Value on a Recurring Basis at March 31,
2010
|
||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Quoted
Prices in Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Balance
at March 31, 2010
|
|||||||||||||
Assets
|
||||||||||||||||
Investment
securities- available-for-sale
|
$ | - | $ | 33,037 | $ | - | $ | 33,037 | ||||||||
Liabilities
|
||||||||||||||||
None
|
||||||||||||||||
Assets
and Liabilities Measured at Fair Value on a Recurring Basis at March 31,
2009
|
||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Quoted
Prices in Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Balance
at March 31, 2009
|
|||||||||||||
Assets
|
||||||||||||||||
Investment
securities- available-for-sale
|
$ | - | $ | 33,713 | $ | - | $ | 33,713 | ||||||||
Liabilities
|
||||||||||||||||
None
|
Assets
Measured at Fair Value on a Nonrecurring Basis at March 31,
2010
|
||||||||||||||||||||
Balance
at March 31, 2010
|
Quoted
Prices in Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Change
in fair value for the three-month period ended March 31,
2010
|
||||||||||||||||
Impaired
loans accounted for under FASB ASC 310-10
|
$ | 5,677 | $ | - | $ | - | $ | 5,677 | $ | - | ||||||||||
Other
real estate owned -residential mortgages
|
$ | 691 | $ | - | $ | - | $ | 691 | $ | 10 | ||||||||||
Other
Real estate owned - commercial
|
$ | 2,928 | $ | - | $ | - | $ | 2,928 | $ | - | ||||||||||
Total
change in fair value
|
$ | 10 | ||||||||||||||||||
Assets
Measured at Fair Value on a Nonrecurring Basis at March 31,
2009
|
||||||||||||||||||||
Balance
at March 31, 2009
|
Quoted
Prices in Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Change
in fair value for the three-month period ended March 31,
2009
|
||||||||||||||||
Impaired
loans accounted for under FASB ASC 310-10
|
$ | 10,077 | $ | - | $ | - | $ | 10,077 | $ | 26 | ||||||||||
Other
real estate owned -residential mortgages
|
$ | 606 | $ | - | $ | - | $ | 605 | $ | - | ||||||||||
Other
Real estate owned - commercial
|
$ | 818 | $ | - | $ | - | $ | 818 | $ | 47 | ||||||||||
Total
change in fair value
|
$ | 73 | ||||||||||||||||||
March 31, 2010
|
December 31, 2009
|
|||||||||||||||
Carrying
Amounts
|
Estimated
Fair Value
|
Carrying
Amounts
|
Estimated
Fair Value
|
|||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 2,858 | $ | 2,858 | $ | 3,099 | $ | 3,099 | ||||||||
Securities
available for sale
|
33,037 | $ | 33,037 | $ | 33,713 | $ | 33,713 | |||||||||
Securities
held to maturity
|
3,926 | 4,057 | 3,928 | 4,084 | ||||||||||||
Loans
and loans held for sale - Net
|
168,526 | 169,076 | 171,271 | 171,544 | ||||||||||||
Federal
Home Loan Bank stock
|
4,197 | 4,197 | 4,197 | 4,197 | ||||||||||||
Accrued
interest receivable
|
1,230 | 1,230 | 1,230 | 1,230 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Customer
deposits
|
156,612 | 157,641 | 158,100 | 159,081 | ||||||||||||
Federal
Home Loan Bank advances
|
42,200 | 43,221 | 44,400 | 45,552 | ||||||||||||
Note
payable
|
- | - | 631 | 634 | ||||||||||||
REPO
sweep accounts
|
5,597 | 5,428 | 5,210 | 5,210 | ||||||||||||
Accrued
interest payable
|
272 | 272 | 322 | 322 |
Quarter
ended March 31, 2010
|
||||||||||||
Compared
to
|
||||||||||||
Quarter
ended March 31, 2009
|
||||||||||||
Increase (Decrease) Due to:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(In
thousands)
|
||||||||||||
Interest-earning
assets:
|
||||||||||||
Loans
receivable
|
$ | (319 | ) | $ | (83 | ) | $ | (402 | ) | |||
Investment
securities
|
(5 | ) | 4 | $ | (1 | ) | ||||||
Other
investments
|
(2 | ) | (3 | ) | $ | (5 | ) | |||||
Total
interest-earning assets
|
(326 | ) | (82 | ) | (408 | ) | ||||||
Interest-bearing
liabilities:
|
- | |||||||||||
Savings
Deposits
|
- | (4 | ) | (4 | ) | |||||||
Money
Market/NOW accounts
|
12 | (42 | ) | (30 | ) | |||||||
Certificates
of Deposit
|
(150 | ) | (239 | ) | (389 | ) | ||||||
Deposits
|
(138 | ) | (285 | ) | (423 | ) | ||||||
Borrowed
funds
|
14 | (123 | ) | (109 | ) | |||||||
Total
interest-bearing liabilities
|
(124 | ) | (408 | ) | (532 | ) | ||||||
Change
in net interest income
|
$ | (202 | ) | $ | 326 | $ | 124 |
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Dollars in thousands)
|
||||||||
Total
non-accrual loans
|
$ | 8,375 | $ | 8,947 | ||||
Accrual
loans delinquent 90 days or more:
|
||||||||
One-
to four-family residential
|
225 | 89 | ||||||
Other
real estate loans
|
- | 2,696 | ||||||
Construction
|
- | - | ||||||
Purchased
Out-of-State
|
- | - | ||||||
Commerical
|
- | - | ||||||
Consumer
& other
|
3 | 54 | ||||||
Total
accrual loans delinquent 90 days or more
|
$ | 228 | $ | 2,839 | ||||
Total
nonperforming loans (1)
|
8,603 | 11,786 | ||||||
Total
real estate owned-residential mortgages (2)
|
688 | 584 | ||||||
Total
real estate owned-Commercial (2)
|
2,928 | 2,985 | ||||||
Total
real estate owned-Consumer & other repossessed assets (2)
|
3 | 11 | ||||||
Total
nonperforming assets
|
$ | 12,222 | $ | 15,366 | ||||
Total
nonperforming loans to loans receivable
|
5.00 | % | 6.73 | % | ||||
Total
nonperforming assets to total assets
|
5.32 | % | 6.58 | % | ||||
(1) All
of the Bank's loans delinquent more than 90 days are classified as
nonperforming.
|
||||||||
(2) Represents
the net book value of property acquired by the Bank through foreclosure or
deed in lieu of foreclosure. Upon
|
||||||||
acquisition,
this property is recorded at the lower of its fair market value or the
principal balance of the related loan.
|
D
elinquent
|
||||||||||||
Portfolio
|
Loans
|
Non-Accrual
|
||||||||||
Balance
|
Over
90 Days
|
Loans
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
At
March 31, 2010
|
||||||||||||
Real
estate loans:
|
||||||||||||
Construction
|
7,154 | - | 3,542 | |||||||||
One
- to four - family
|
79,270 | 225 | 2,532 | |||||||||
Commercial
Mortgages
|
55,738 | - | 2,051 | |||||||||
Home
equity lines of credit/ Junior liens
|
17,838 | - | 166 | |||||||||
Commercial
loans
|
9,835 | - | 84 | |||||||||
Consumer
loans
|
2,358 | 3 | - | |||||||||
Total
gross loans
|
$ | 172,193 | $ | 228 | $ | 8,375 | ||||||
Less:
|
||||||||||||
Net
deferred loan fees
|
(258 | ) | (1 | ) | (6 | ) | ||||||
Allowance
for loan losses
|
(3,488 | ) | (1 | ) | (707 | ) | ||||||
Total
loans, net
|
$ | 168,447 | $ | 226 | $ | 7,662 | ||||||
At
December 31, 2009
|
||||||||||||
Real
estate loans:
|
||||||||||||
Construction
|
9,019 | - | 3,546 | |||||||||
One
- to four - family
|
81,193 | 89 | 2,944 | |||||||||
Commercial
Mortgages
|
53,784 | 2,697 | 2,204 | |||||||||
Home
equity lines of credit/Junior liens
|
18,732 | 21 | 157 | |||||||||
Commercial
loans
|
9,873 | - | 96 | |||||||||
Consumer
loans
|
2,553 | 32 | - | |||||||||
Total
gross loans
|
$ | 175,154 | $ | 2,839 | $ | 8,947 | ||||||
Less:
|
||||||||||||
Net
deferred loan fees
|
(275 | ) | (1 | ) | (11 | ) | ||||||
Allowance
for loan losses
|
(3,660 | ) | (80 | ) | (954 | ) | ||||||
Total
loans, net
|
$ | 171,219 | $ | 2,758 | $ | 7,982 |
Regulatory
|
Minimum
to be
|
|||||||||||||||||||||||
Actual
|
Minimum
|
Well
Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Dollars
in Thousands
|
||||||||||||||||||||||||
Tier
1 (Core) capital ( to
|
||||||||||||||||||||||||
adjusted
assets)
|
$ | 20,537 | 9.03 | % | $ | 9,102 | 4.00 | % | $ | 11,378 | 5.00 | % | ||||||||||||
Total
risk-based capital ( to risk-
|
||||||||||||||||||||||||
weighted
assets)
|
$ | 22,550 | 14.07 | % |