x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Large accelerated filer
o
|
Accelerated filer
o
|
||
Non-accelerated filer
x
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
Page
|
||||
3
|
||||
25
|
||||
43
|
||||
44
|
||||
44
|
||||
44
|
||||
44
|
||||
45
|
||||
45
|
||||
45
|
||||
45
|
||||
49
|
Exhibit Index
|
50
|
|||
3.1
|
|
Articles of Incorporation, as amended
|
51
|
|
31.1
|
|
Certifications of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
64
|
|
31.2
|
|
Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
65
|
|
32.1
|
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
66
|
(dollars in thousands)
|
March 31,
|
December 31,
|
||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 33,678 | $ | 31,871 | ||||
Interest-bearing deposits in banks
|
2,248 | 2,248 | ||||||
Investment securities:
|
||||||||
Available-for-sale (amortized cost: 2011--$157,031; 2010--$151,667)
|
160,092 | 154,515 | ||||||
Held-to-maturity (fair value: 2011--$5,762; 2010--$6,472)
|
5,486 | 6,149 | ||||||
Loans and leases, less allowance for loan and lease losses of $7,362 at March 31, 2011 and $7,585 at December 31, 2010
|
325,647 | 338,533 | ||||||
Premises and equipment, net
|
2,057 | 2,026 | ||||||
Federal Home Loan Bank stock
|
3,348 | 3,486 | ||||||
Goodwill and other intangible assets
|
16,668 | 16,723 | ||||||
Other real estate owned
|
3,742 | 2,696 | ||||||
Accrued interest receivable and other assets
|
20,374 | 20,693 | ||||||
$ | 573,340 | $ | 578,940 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$ | 130,152 | $ | 126,636 | ||||
Interest-bearing
|
335,756 | 338,486 | ||||||
Total deposits
|
465,908 | 465,122 | ||||||
Short-term borrowings
|
7,000 | 7,000 | ||||||
Long-term borrowings
|
5,000 | 10,000 | ||||||
Accrued interest payable and other liabilities
|
5,482 | 7,274 | ||||||
Total liabilities
|
483,390 | 489,396 | ||||||
Commitments and contingencies
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock, no par value; 20,000,000 shares authorized; none outstanding
|
||||||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding – 9,874,867 shares at March 31,
2011 and December 31, 2010
|
71,886 | 71,814 | ||||||
Retained earnings
|
16,227 | 16,021 | ||||||
Accumulated other comprehensive income, net of taxes
|
1,837 | 1,709 | ||||||
Total shareholders’ equity
|
89,950 | 89,544 | ||||||
$ | 573,340 | $ | 578,940 |
(dollars in thousands, except per share data)
|
||||||||
For the three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Interest income:
|
||||||||
Interest and fees on loans
|
$ | 4,997 | $ | 5,837 | ||||
Interest on deposits in banks
|
6 | — | ||||||
Interest and dividends on investment securities:
|
||||||||
Taxable
|
801 | 708 | ||||||
Exempt from Federal income taxes
|
150 | 169 | ||||||
Total interest income
|
5,954 | 6,714 | ||||||
Interest expense:
|
||||||||
Interest on deposits
|
631 | 798 | ||||||
Interest on borrowings
|
94 | 144 | ||||||
Total interest expense
|
725 | 942 | ||||||
Net interest income
|
5,229 | 5,772 | ||||||
Provision for loan and lease losses
|
1,375 | 1,641 | ||||||
Net interest income after provision for loan and lease losses
|
3,854 | 4,131 | ||||||
Noninterest income:
|
||||||||
Service charges on deposit accounts
|
197 | 233 | ||||||
Gain on sale of securities
|
2 | 2 | ||||||
Other noninterest income
|
234 | 226 | ||||||
Total noninterest income
|
433 | 461 | ||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
2,080 | 1,994 | ||||||
Occupancy
|
278 | 331 | ||||||
Furniture and equipment
|
187 | 198 | ||||||
Federal Deposit Insurance Corporation assessments
|
298 | 319 | ||||||
Other expense
|
1,208 | 1,343 | ||||||
Total noninterest expense
|
4,051 | 4,185 | ||||||
Income before provision for income taxes
|
236 | 407 | ||||||
Provision for income taxes
|
30 | 101 | ||||||
Net income
|
$ | 206 | $ | 306 | ||||
Basic earnings per share
|
$ | 0.02 | $ | 0.03 | ||||
Diluted earnings per share
|
$ | 0.02 | $ | 0.03 | ||||
Cash dividends per share
|
$ | — | $ | — |
Accumulated
|
||||||||||||||||||
(dollars in thousands)
|
Common Stock
|
Other
|
Total
|
Total
|
||||||||||||||
Retained
|
Comprehensive
|
Shareholders’
|
Comprehensive
|
|||||||||||||||
Shares
|
Amount
|
Earnings
|
Income
|
Equity
|
Income
|
|||||||||||||
Balance, January 1, 2010
|
9,845,533 | $ | 71,578 | $ | 15,545 | $ | 222 | $ | 87,345 | |||||||||
Comprehensive income:
|
||||||||||||||||||
Net income
|
476 | 476 | $ | 476 | ||||||||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||||
Net change in unrealized gains on available-for-sale investment securities
|
1,487 | 1,487 | 1,487 | |||||||||||||||
Total comprehensive income
|
$ | 1,963 | ||||||||||||||||
Restricted stock awarded and related compensation expense
|
29,334 | 47 | 47 | |||||||||||||||
Stock option compensation expense
|
189 | 189 | ||||||||||||||||
Balance, December 31, 2010
|
9,874,867 | 71,814 | 16,021 | 1,709 | 89,544 | |||||||||||||
Comprehensive income:
|
||||||||||||||||||
Net income
|
206 | 206 | $ | 206 | ||||||||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||||
Net change in unrealized gains on available-for-sale investment securities
|
128 | 128 | 128 | |||||||||||||||
Total comprehensive income
|
$ | 334 | ||||||||||||||||
Restricted stock compensation expense
|
28 | 28 | ||||||||||||||||
Stock option compensation expense
|
44 | 44 | ||||||||||||||||
Balance, March 31, 2011
|
9,874,867 | $ | 71,886 | $ | 16,227 | $ | 1,837 | $ | 89,950 |
(dollars in thousands)
|
||||||||
For the three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 206 | $ | 306 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan and lease losses
|
1,375 | 1,641 | ||||||
Decrease in deferred loan origination fees, net
|
(23 | ) | (57 | ) | ||||
Depreciation and amortization
|
187 | 210 | ||||||
Gain on sale and call of investment securities
|
(2 | ) | (2 | ) | ||||
Amortization of investment security premiums and discounts, net
|
818 | 510 | ||||||
Credit to accounts receivable servicing receivable allowance for losses
|
— | (4 | ) | |||||
Increase in cash surrender values of life insurance policies
|
(68 | ) | (59 | ) | ||||
Stock based compensation expense
|
72 | 55 | ||||||
Loss on sale and write-down of other real estate owned
|
28 | 248 | ||||||
Decrease in accrued interest receivable and other assets
|
301 | 3,050 | ||||||
Decrease in accrued interest payable and other liabilities
|
(1,792 | ) | (1,494 | ) | ||||
Net cash provided by operating activities
|
1,102 | 4,404 | ||||||
Cash flows from investing activities:
|
||||||||
Proceeds from the sale of available-for-sale investment securities
|
— | 9 | ||||||
Proceeds from matured and called available-for-sale investment securities
|
602 | 1,370 | ||||||
Purchases of available-for-sale investment securities
|
(13,141 | ) | (22,329 | ) | ||||
Proceeds from principal repayments for available-for-sale investment securities
|
6,345 | 4,152 | ||||||
Proceeds from principal repayments for held-to-maturity investment securities
|
677 | 1,851 | ||||||
Net increase in interest-bearing deposits in banks
|
— | — | ||||||
Net decrease in loans
|
9,935 | 10,248 | ||||||
Proceeds from sale of other real estate
|
526 | 688 | ||||||
Net decrease in FHLB stock
|
138 | — | ||||||
Net decrease in accounts receivable servicing receivables
|
— | 40 | ||||||
Purchases of equipment
|
(163 | ) | (65 | ) | ||||
Net cash provided by (used in) investing activities
|
4,919 | (4,036 | ) |
(dollars in thousands)
|
||||||||
For the three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from financing activities:
|
||||||||
Net increase in demand, interest-bearing and savings deposits
|
$ | 7,980 | $ | 4,066 | ||||
Net decrease in time deposits
|
(7,194 | ) | (4,677 | ) | ||||
Net decrease in short-term borrowings
|
— | (5,000 | ) | |||||
Net decrease in long-term borrowings
|
(5,000 | ) | (5,000 | ) | ||||
Net cash used in financing activities
|
$ | (4,214 | ) | $ | (10,611 | ) | ||
Increase (decrease) in cash and cash equivalents
|
1,807 | (10,243 | ) | |||||
Cash and cash equivalents at beginning of year
|
31,871 | 58,493 | ||||||
Cash and cash equivalents at end of period
|
$ | 33,678 | $ | 48,250 |
Options
|
Shares
|
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term |
Aggregate
Intrinsic Value ($000) |
||||||||||||
Outstanding at January 1, 2011
|
379,571 | $ | 17.18 |
4.7 years
|
$ | — | ||||||||||
Granted
|
— | — | — | — | ||||||||||||
Exercised
|
— | — | — | — | ||||||||||||
Cancelled
|
— | — | — | — | ||||||||||||
Outstanding at March 31, 2011
|
379,571 | $ | 17.18 |
4.4 years
|
$ | — | ||||||||||
Exercisable at March 31, 2011
|
306,943 | $ | 18.10 |
4.8 years
|
$ | — |
Available-for-Sale
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
Gross
|
Gross
|
Estimated
|
|||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
Mortgage-backed securities
|
$ | 139,337 | $ | 3,327 | $ | (469 | ) | $ | 142,195 | |||||||
Obligations of states and political subdivisions
|
17,617 | 303 | (112 | ) | 17,808 | |||||||||||
Equity securities:
|
||||||||||||||||
Corporate stock
|
77 | 17 | (5 | ) | 89 | |||||||||||
$ | 157,031 | $ | 3,647 | $ | (586 | ) | $ | 160,092 |
December 31, 2010 | ||||||||||||||||
|
Gross
|
Gross
|
Estimated
|
|||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
Mortgage-backed securities
|
$ | 135,915 | $ | 3,156 | $ | (427 | ) | $ | 138,644 | |||||||
Obligations of states and political subdivisions
|
15,675 | 242 | (125 | ) | 15,792 | |||||||||||
Equity securities:
|
||||||||||||||||
Corporate stock
|
77 | 8 | (6 | ) | 79 | |||||||||||
$ | 151,667 | $ | 3,406 | $ | (558 | ) | $ | 154,515 |
Held-to-Maturity
|
||||||||||||||||
March 31, 2011
|
||||||||||||||||
|
Gross
|
Gross
|
Estimated
|
|||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
Mortgage-backed securities
|
$ | 5,486 | $ | 276 | $ | — | $ | 5,762 |
December 31, 2010
|
||||||||||||||||
|
Gross
|
Gross
|
Estimated
|
|||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Debt securities:
|
||||||||||||||||
Mortgage-backed securities
|
$ | 6,149 | $ | 323 | $ | — | $ | 6,472 |
2011
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Available-for-Sale
|
||||||||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$ | 22,534 | $ | (469 | ) | $ | 22,534 | $ | (469 | ) | ||||||||||||||
Obligations of states and political subdivisions
|
4,304 | (72 | ) | $ | 840 | $ | (40 | ) | 5,144 | (112 | ) | |||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Corporate stock
|
6 | (5 | ) | 6 | (5 | ) | ||||||||||||||||||
$ | 26,838 | $ | (541 | ) | $ | 846 | $ | (45 | ) | $ | 27,684 | $ | (586 | ) |
2010
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Available-for-Sale
|
||||||||||||||||||||||||
Debt securities:
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$ | 29,535 | $ | (427 | ) | $ | 29,535 | $ | (427 | ) | ||||||||||||||
Obligations of states and political subdivisions
|
5,169 | (125 | ) | 5,169 | (125 | ) | ||||||||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Corporate stock
|
5 | (2 | ) | $ | 5 | $ | (4 | ) | 10 | (6 | ) | |||||||||||||
$ | 34,709 | $ | (554 | ) | $ | 5 | $ | (4 | ) | $ | 34,714 | $ | (558 | ) |
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
|
Estimated
|
Estimated
|
||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Within one year
|
$ | 907 | $ | 915 | ||||||||||||
After one year through five years
|
5,079 | 5,190 | ||||||||||||||
After five years through ten years
|
6,093 | 6,193 | ||||||||||||||
After ten years
|
5,538 | 5,510 | ||||||||||||||
17,617 | 17,808 | |||||||||||||||
Investment securities not due at a single maturity date:
|
||||||||||||||||
Mortgage-backed securities
|
139,337 | 142,195 | $ | 5,486 | $ | 5,762 | ||||||||||
Corporate stock
|
77 | 89 | ||||||||||||||
$ | 157,031 | $ | 160,092 | $ | 5,486 | $ | 5,762 |
(in thousands)
|
March 31,
2011 |
December 31,
2010 |
||||||
Nonaccrual loans and leases that are current to terms
|
$ | 1,559 | $ | 3,004 | ||||
Nonaccrual loans and leases that are past due
|
20,036 | 19,567 | ||||||
Loans and leases past due 90 days and accruing interest
|
— | — | ||||||
Other real estate owned
|
3,742 | 2,696 | ||||||
Total nonperforming assets
|
$ | 25,337 | $ | 25,267 | ||||
Nonperforming loans and leases to total loans and leases
|
6.48 | % | 6.52 | % | ||||
Total nonperforming assets to total assets
|
4.42 | % | 4.36 | % |
March 31, 2011
|
|
Unpaid
|
|
Average |
Interest
|
|||||||||||||||
(dollars in thousands)
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial
|
$ | 5,460 | $ | 7,286 | — | $ | 5,243 | $ | 44 | |||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
7,301 | 9,186 | — | 8,183 | 55 | |||||||||||||||
Multi-family
|
2,589 | 2,682 | — | 1,985 | 9 | |||||||||||||||
Construction
|
4,586 | 6,620 | — | 4,641 | — | |||||||||||||||
Residential
|
1,478 | 1,776 | — | 1,571 | 8 | |||||||||||||||
Other:
|
||||||||||||||||||||
Agriculture
|
129 | 322 | — | 129 | — | |||||||||||||||
Consumer
|
156 | 156 | — | 182 | 4 | |||||||||||||||
$ | 21,699 | $ | 28,028 | $ | — | $ | 21,934 | $ | 120 | |||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial
|
$ | 1,209 | $ | 1,209 | $ | 30 | $ | 2,220 | $ | 16 | ||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
12,880 | 14,169 | 789 | 12,500 | 81 | |||||||||||||||
Multi-family
|
— | — | — | 607 | — | |||||||||||||||
Construction
|
441 | 580 | 9 | 221 | 6 | |||||||||||||||
Residential
|
1,832 | 1,874 | 197 | 1,422 | 21 | |||||||||||||||
Other:
|
||||||||||||||||||||
Agriculture
|
— | — | — | — | — | |||||||||||||||
Consumer
|
489 | 489 | 10 | 490 | 6 | |||||||||||||||
$ | 16,851 | $ | 18,321 | $ | 1,035 | $ | 17,460 | $ | 130 | |||||||||||
Total:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial
|
$ | 6,669 | $ | 8,495 | $ | 30 | $ | 7,463 | $ | 60 | ||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
20,181 | 23,355 | 789 | 20,684 | 136 | |||||||||||||||
Multi-family
|
2,589 | 2,682 | — | 2,592 | 9 | |||||||||||||||
Construction
|
5,027 | 7,200 | 9 | 4,861 | 6 | |||||||||||||||
Residential
|
3,310 | 3,650 | 197 | 2,993 | 29 | |||||||||||||||
Other:
|
||||||||||||||||||||
Agriculture
|
129 | 322 | — | 129 | — | |||||||||||||||
Consumer
|
645 | 645 | 10 | 672 | 10 | |||||||||||||||
$ | 38,550 | $ | 46,349 | $ | 1,035 | $ | 39,394 | $ | 250 |
December 31, 2010
|
|
Unpaid
|
|
Average
|
Interest
|
|||||||||||||||
(dollars in thousands)
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial
|
$ | 5,026 | $ | 5,418 | — | $ | 5,042 | $ | 137 | |||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
9,066 | 12,149 | — | 14,013 | 424 | |||||||||||||||
Multi-family
|
1,382 | 2,382 | — | 1,383 | 70 | |||||||||||||||
Construction
|
4,695 | 7,064 | — | 6,545 | 43 | |||||||||||||||
Residential
|
1,663 | 1,835 | — | 1,593 | 50 | |||||||||||||||
Other:
|
||||||||||||||||||||
Agriculture
|
129 | 322 | — | 206 | 4 | |||||||||||||||
Consumer
|
207 | 207 | — | 317 | 16 | |||||||||||||||
$ | 22,168 | $ | 29,377 | $ | — | $ | 29,099 | $ | 744 | |||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial
|
$ | 3,231 | $ | 3,231 | $ | 274 | $ | 3,452 | $ | 196 | ||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
12,120 | 12,584 | 1,160 | 9,369 | 456 | |||||||||||||||
Multi-family
|
1,214 | 1,214 | 22 | 1,321 | 44 | |||||||||||||||
Residential
|
1,013 | 1,013 | 152 | 861 | 51 | |||||||||||||||
Other:
|
||||||||||||||||||||
Consumer
|
491 | 491 | 11 | 492 | 24 | |||||||||||||||
$ | 18,069 | $ | 18,533 | $ | 1,619 | $ | 15,495 | $ | 771 | |||||||||||
Total:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial
|
$ | 8,257 | $ | 8,649 | $ | 274 | $ | 8,494 | $ | 333 | ||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
21,186 | 24,733 | 1,160 | 23,382 | 880 | |||||||||||||||
Multi-family
|
2,596 | 3,596 | 22 | 2,704 | 114 | |||||||||||||||
Construction
|
4,695 | 7,064 | — | 6,545 | 43 | |||||||||||||||
Residential
|
2,676 | 2,848 | 152 | 2,454 | 101 | |||||||||||||||
Other:
|
||||||||||||||||||||
Agriculture
|
129 | 322 | — | 206 | 4 | |||||||||||||||
Consumer
|
698 | 698 | 11 | 809 | 40 | |||||||||||||||
$ | 40,237 | $ | 47,910 | $ | 1,619 | $ | 44,594 | $ | 1,515 |
March 31, 2011
|
Credit Risk Profile by Internally Assigned Grade
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
|
|
Real Estate
|
||||||||||||||||||
Commercial
|
Commercial
|
Multi-Family
|
Construction
|
Residential
|
||||||||||||||||
Grade:
|
||||||||||||||||||||
Pass
|
$ | 34,636 | $ | 170,736 | $ | 6,018 | $ | 6,771 | $ | 17,761 | ||||||||||
Watch
|
3,146 | 11,839 | 1,206 | 1,908 | 55 | |||||||||||||||
Special mention
|
4,157 | 11,914 | — | 838 | 3,869 | |||||||||||||||
Substandard
|
9,403 | 16,679 | 1,382 | 4,898 | 3,181 | |||||||||||||||
Doubtful
|
479 | — | — | 129 | — | |||||||||||||||
Total
|
$ | 51,821 | $ | 211,168 | $ | 8,606 | $ | 14,544 | $ | 24,866 |
Other Credit Exposure
|
||||||||||||
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||
Leases
|
Agriculture
|
Consumer
|
||||||||||
Grade:
|
||||||||||||
Pass
|
$ | 2,359 | $ | 6,247 | $ | 11,563 | ||||||
Watch
|
— | 985 | 606 | |||||||||
Special mention
|
— | — | 270 | |||||||||
Substandard
|
25 | 129 | 224 | |||||||||
Doubtful
|
— | — | — | |||||||||
Total
|
$ | 2,384 | $ | 7,361 | $ | 12,663 |
December 31, 2010
|
Credit Risk Profile by Internally Assigned Grade
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
|
Real Estate | |||||||||||||||||||
Commercial
|
Commercial
|
Multi-Family
|
Construction
|
Residential
|
||||||||||||||||
Grade:
|
||||||||||||||||||||
Pass
|
$ | 39,335 | $ | 175,319 | $ | 4,371 | $ | 7,884 | $ | 21,928 | ||||||||||
Watch
|
3,515 | 11,021 | 1,214 | 1,632 | — | |||||||||||||||
Special mention
|
4,228 | 11,713 | — | 1,178 | 953 | |||||||||||||||
Substandard
|
11,012 | 18,023 | 1,383 | 5,277 | 3,218 | |||||||||||||||
Doubtful
|
171 | — | — | — | — | |||||||||||||||
Total
|
$ | 58,261 | $ | 216,076 | $ | 6,968 | $ | 15,971 | $ | 26,099 |
Other Credit Exposure
|
||||||||||||
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||
Leases
|
Agriculture
|
Consumer
|
||||||||||
Grade:
|
||||||||||||
Pass
|
$ | 2,740 | $ | 6,484 | $ | 12,277 | ||||||
Watch
|
— | 589 | 514 | |||||||||
Special mention
|
— | — | 178 | |||||||||
Substandard
|
26 | 129 | 217 | |||||||||
Doubtful
|
— | — | 16 | |||||||||
Total
|
$ | 2,766 | $ | 7,202 | $ | 13,202 |
March 31, 2011
|
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
|
Real Estate
|
Other | |||||||||||||||||||||||||||||||||||||
Com-
|
Com-
|
Multi-
|
Construc-
|
|
Agri-
|
|||||||||||||||||||||||||||||||||||
mercial
|
mercial
|
Family
|
tion
|
Residential
|
Leases
|
culture
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance allocated to portfolio segments
|
$ | 2,574 | $ | 2,715 | $ | 115 | $ | 1,090 | $ | 581 | $ | 7 | $ | 131 | $ | 221 | $ | 151 | $ | 7,585 | ||||||||||||||||||||
Charge-offs
|
(291 | ) | (1,123 | ) | — | (63 | ) | (262 | ) | — | — | (6 | ) | — | (1,745 | ) | ||||||||||||||||||||||||
Recoveries
|
133 | — | — | — | — | — | — | 14 | — | 147 | ||||||||||||||||||||||||||||||
Provision
|
(70 | ) | 1,187 | 12 | (416 | ) | 375 | 88 | 4 | (17 | ) | 212 | 1,375 | |||||||||||||||||||||||||||
Ending balance allocated to portfolio segments
|
$ | 2,346 | $ | 2,779 | $ | 127 | $ | 611 | $ | 694 | $ | 95 | $ | 135 | $ | 212 | $ | 363 | $ | 7,362 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 30 | $ | 789 | $ | — | $ | 9 | $ | 197 | $ | — | $ | — | $ | 10 | $ | — | $ | 1,035 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 2,316 | $ | 1,990 | $ | 127 | $ | 602 | $ | 497 | $ | 95 | $ | 135 | $ | 202 | $ | 363 | $ | 6,327 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance
|
$ | 51,821 | $ | 211,168 | $ | 8,606 | $ | 14,544 | $ | 24,866 | $ | 2,384 | $ | 7,361 | $ | 12,663 | $ | — | $ | 333,413 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 6,669 | $ | 20,181 | $ | 2,589 | $ | 5,027 | $ | 3,310 | $ | — | $ | 129 | $ | 645 | $ | — | $ | 38,550 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 45,152 | $ | 190,987 | $ | 6,017 | $ | 9,517 | $ | 21,556 | $ | 2,384 | $ | 7,232 | $ | 12,018 | $ | — | $ | 294,863 |
December 31, 2010
|
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
|
Real Estate
|
Other
|
|||||||||||||||||||||||||||||||||||||
Com-
|
Com-
|
Multi-
|
Construc-
|
|
Agri-
|
|||||||||||||||||||||||||||||||||||
mercial
|
mercial
|
Family
|
tion
|
Residential
|
Leases
|
culture
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses
|
||||||||||||||||||||||||||||||||||||||||
Ending balance allocated to portfolio segments
|
$ | 2,574 | $ | 2,715 | $ | 115 | $ | 1,090 | $ | 581 | $ | 7 | $ | 131 | $ | 221 | $ | 151 | $ | 7,585 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 274 | $ | 1,160 | $ | 22 | $ | — | $ | 152 | $ | — | $ | — | $ | 11 | $ | — | $ | 1,619 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 2,300 | $ | 1,555 | $ | 93 | $ | 1,090 | $ | 429 | $ | 7 | $ | 131 | $ | 210 | $ | 151 | $ | 5,966 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance
|
$ | 58,261 | $ | 216,076 | $ | 6,968 | $ | 15,971 | $ | 26,099 | $ | 2,766 | $ | 7,202 | $ | 13,202 | $ | — | $ | 346,545 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 8,257 | $ | 21,186 | $ | 2,596 | $ | 4,695 | $ | 2,676 | $ | — | $ | 129 | $ | 698 | $ | — | $ | 40,237 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 50,004 | $ | 194,890 | $ | 4,372 | $ | 11,276 | $ | 23,423 | $ | 2,766 | $ | 7,073 | $ | 12,504 | $ | — | $ | 306,308 |
March 31, 2011
|
|
Past Due
|
||||||||||||||||||||||||||||||
(dollars in thousands)
|
|
|
Past Due
|
Greater
|
||||||||||||||||||||||||||||
Greater | Than | |||||||||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
Than
|
Total Past
|
|
90 Days and
|
|||||||||||||||||||||||||||
Past Due
|
Past Due
|
90 Days
|
Due
|
Current
|
Total Loans
|
Accruing
|
Nonaccrual
|
|||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 139 | $ | 224 | $ | 3,026 | $ | 3,389 | $ | 48,432 | $ | 51,821 | — | $ | 3,258 | |||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Commercial
|
393 | 1,301 | 6,291 | 7,985 | 203,183 | 211,168 | — | 9,888 | ||||||||||||||||||||||||
Multi-family
|
20 | 1,383 | 1,403 | 7,203 | 8,606 | — | 1,383 | |||||||||||||||||||||||||
Construction
|
290 | — | 4,673 | 4,963 | 9,581 | 14,544 | — | 4,672 | ||||||||||||||||||||||||
Residential
|
184 | — | 1,208 | 1,392 | 23,474 | 24,866 | — | 1,707 | ||||||||||||||||||||||||
Other:
|
||||||||||||||||||||||||||||||||
Leases
|
— | — | 25 | 25 | 2,359 | 2,384 | — | 25 | ||||||||||||||||||||||||
Agriculture
|
— | — | 129 | 129 | 7,232 | 7,361 | — | 129 | ||||||||||||||||||||||||
Consumer
|
57 | 6 | 462 | 525 | 12,138 | 12,663 | — | 533 | ||||||||||||||||||||||||
Total
|
$ | 1,063 | $ | 1,551 | $ | 17,197 | $ | 19,811 | $ | 313,602 | $ | 333,413 | $ | — | $ | 21,595 |
December 31, 2010
|
|
Past Due
|
||||||||||||||||||||||||||||||
(dollars in thousands)
|
Past Due
|
Greater | ||||||||||||||||||||||||||||||
|
|
Greater |
|
Than
|
||||||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
Than
|
Total Past
|
|
90 Days and
|
|||||||||||||||||||||||||||
Past Due
|
Past Due
|
90 Days
|
Due
|
Current
|
Total Loans
|
Accruing
|
Nonaccrual
|
|||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 219 | $ | 19 | $ | 3,346 | $ | 3,584 | $ | 54,677 | $ | 58,261 | — | $ | 3,491 | |||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Commercial
|
1,207 | 3,140 | 10,101 | 14,448 | 201,628 | 216,076 | — | 10,975 | ||||||||||||||||||||||||
Multi-family
|
— | 1,383 | 1,383 | 5,585 | 6,968 | — | 1,383 | |||||||||||||||||||||||||
Construction
|
— | 1,835 | 2,859 | 4,694 | 11,277 | 15,971 | — | 4,694 | ||||||||||||||||||||||||
Residential
|
795 | 366 | 1,149 | 2,310 | 23,789 | 26,099 | — | 1,554 | ||||||||||||||||||||||||
Other:
|
||||||||||||||||||||||||||||||||
Leases
|
— | — | 28 | 28 | 2,738 | 2,766 | — | 28 | ||||||||||||||||||||||||
Agriculture
|
— | — | 129 | 129 | 7,073 | 7,202 | — | 129 | ||||||||||||||||||||||||
Consumer
|
123 | 8 | 221 | 352 | 12,850 | 13,202 | — | 317 | ||||||||||||||||||||||||
Total
|
$ | 2,344 | $ | 5,368 | $ | 19,216 | $ | 26,928 | $ | 319,617 | $ | 346,545 | $ | — | $ | 22,571 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
Estimated
|
Estimated
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 33,678 | $ | 33,678 | $ | 31,871 | $ | 31,871 | ||||||||
Interest-bearing deposits in banks
|
2,248 | 2,248 | 2,248 | 2,248 | ||||||||||||
Investment securities
|
165,578 | 165,854 | 160,664 | 160,987 | ||||||||||||
Loans and leases, net
|
325,647 | 319,884 | 338,533 | 332,964 | ||||||||||||
FHLB stock
|
3,348 | 3,348 | 3,486 | 3,486 | ||||||||||||
Accrued interest receivable
|
1,861 | 1,861 | 1,876 | 1,876 | ||||||||||||
Cash surrender values of life
insurance policies
|
11,087 | 11,087 | 11,019 | 11,019 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$ | 465,908 | $ | 466,767 | $ | 465,122 | $ | 465,985 | ||||||||
Short-term borrowings
|
7,000 | 7,000 | 7,000 | 7,000 | ||||||||||||
Long-term borrowings
|
5,000 | 5,174 | 10,000 | 10,523 | ||||||||||||
Accrued interest payable
|
184 | 184 | 268 | 268 |
Description
|
Fair Value
|
Fair Value Measurements Using
|
Total Gains
(Losses)
|
|||||||||||||||||
(dollars in thousands)
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Other Observable Inputs
(Level 2)
|
Significant Unobservable
Inputs
(Level 3)
|
|||||||||||||||||
March 31, 2011
|
||||||||||||||||||||
Assets and liabilities measured on a recurring basis:
|
||||||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||||||
Mortgage-backed securities
|
$ | 142,195 | $ | 142,195 | ||||||||||||||||
Obligations of states and political subdivisions
|
17,808 | 17,808 | ||||||||||||||||||
Corporate stock
|
89 | $ | 30 | 59 | ||||||||||||||||
Total recurring
|
$ | 160,092 | $ | 30 | $ | 160,062 | $ | — | $ | — | ||||||||||
Assets and liabilities measured on a nonrecurring basis:
|
||||||||||||||||||||
Impaired loans:
|
||||||||||||||||||||
Commercial
|
$ | 1,179 | $ | — | $ | — | $ | 1,179 | $ | 19 | ||||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
12,312 | — | 1,540 | 10,772 | (22 | ) | ||||||||||||||
Multi-family
|
— | — | — | — | — | |||||||||||||||
Construction
|
433 | — | 80 | 353 | (22 | ) | ||||||||||||||
Residential
|
1,634 | — | 359 | 1,275 | 295 | |||||||||||||||
Other:
|
||||||||||||||||||||
Leases
|
— | — | — | — | — | |||||||||||||||
Agriculture
|
— | — | — | — | — | |||||||||||||||
Consumer
|
479 | — | — | 479 | — | |||||||||||||||
Other real estate owned
|
3,742 | — | 3,742 | — | 172 | |||||||||||||||
Total nonrecurring
|
$ | 19,779 | $ | — | $ | 5,721 | $ | 14,058 | $ | 442 | ||||||||||
December 31, 2010
|
||||||||||||||||||||
Assets and liabilities measured on a recurring basis:
|
||||||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||||||
Mortgage-backed securities
|
$ | 138,644 | — | $ | 138,644 | — | — | |||||||||||||
Obligations of states and political subdivisions
|
15,792 | — | 15,792 | — | — | |||||||||||||||
Corporate stock
|
79 | $ | 75 | 4 | ||||||||||||||||
Total recurring
|
$ | 154,515 | $ | 75 | $ | 154,440 | $ | — | $ | — | ||||||||||
Assets and liabilities measured on a nonrecurring basis:
|
||||||||||||||||||||
Impaired loans:
|
||||||||||||||||||||
Commercial
|
$ | 4,197 | $ | — | $ | 3,870 | $ | 327 | $ | (275 | ) | |||||||||
Real estate:
|
||||||||||||||||||||
Commercial
|
18,504 | — | 6,388 | 12,116 | (381 | ) | ||||||||||||||
Multi-family
|
1,214 | — | — | 1,214 | (93 | ) | ||||||||||||||
Construction
|
2,298 | — | 2,298 | — | (952 | ) | ||||||||||||||
Residential
|
2,098 | — | 1,085 | 1,013 | (162 | ) | ||||||||||||||
Other:
|
||||||||||||||||||||
Leases
|
27 | — | — | 27 | — | |||||||||||||||
Agriculture
|
129 | — | 129 | — | — | |||||||||||||||
Consumer
|
490 | — | — | 490 | 109 | |||||||||||||||
Other real estate owned
|
2,696 | — | 2,696 | — | (908 | ) | ||||||||||||||
Total nonrecurring
|
$ | 31,653 | $ | — | $ | 16,466 | $ | 15,187 | $ | (2,662 | ) |
●
|
the duration of financial and economic volatility and decline and actions taken by the United States Congress and governmental agencies, including the United States Department of the Treasury, to deal with challenges to the U.S. financial system;
|
|
●
|
the risks presented by a continued economic recession, which could adversely affect credit quality, collateral values, including real estate collateral, investment values, liquidity and loan originations and loan portfolio delinquency rates;
|
|
●
|
variances in the actual versus projected growth in assets and return on assets;
|
|
●
|
potential continued or increasing loan and lease losses;
|
|
●
|
potential increasing levels of expenses associated with resolving nonperforming assets as well as regulatory changes;
|
|
●
|
changes in the interest rate environment including interest rates charged on loans, earned on securities investments and paid on deposits and other borrowed funds;
|
|
●
|
competitive effects;
|
|
●
|
potential declines in fee and other noninterest income earned associated with economic factors as well as regulatory changes;
|
|
●
|
general economic conditions nationally, regionally, and within our operating markets could be less favorable than expected or could have a more direct and pronounced effect on us than expected and adversely affect our ability to continue internal growth at historical rates and maintain the quality of our earning assets;
|
|
●
|
changes in the regulatory environment including government intervention in the U.S. financial system;
|
|
●
|
changes in business conditions and inflation;
|
|
●
|
changes in securities markets, public debt markets, and other capital markets;
|
|
●
|
potential data processing and other operational systems failures or fraud;
|
|
●
|
potential continued decline in real estate values in our operating markets;
|
|
●
|
the effects of uncontrollable events such as terrorism, the threat of terrorism or the impact of the current military conflicts in Afghanistan and Iraq and the conduct of the war on terrorism by the United States and its allies, worsening financial and economic conditions, natural disasters, and disruption of power supplies and communications;
|
|
●
|
changes in accounting standards, tax laws or regulations and interpretations of such standards, laws or regulations;
|
|
●
|
projected business increases following any future strategic expansion could be lower than expected;
|
|
●
|
the goodwill we have recorded in connection with acquisitions could become impaired, which may have an adverse impact on our earnings;
|
●
|
the reputation of the financial services industry could experience further deterioration, which could adversely affect our ability to access markets for funding and to acquire and retain customers; and
|
|
●
|
the efficiencies we may expect to receive from any investments in personnel and infrastructure may not be realized.
|
Table One: Components of Net Income | ||||||||
For the three months
|
||||||||
ended March 31
|
||||||||
(dollars in thousands)
|
2011
|
2010
|
||||||
Net interest income*
|
$ | 5,279 | $ | 5,829 | ||||
Provision for loan losses
|
(1,375 | ) | (1,641 | ) | ||||
Noninterest income
|
433 | 461 | ||||||
Noninterest expense
|
(4,051 | ) | (4,185 | ) | ||||
Provision for income taxes
|
(30 | ) | (101 | ) | ||||
Tax equivalent adjustment
|
(50 | ) | (57 | ) | ||||
Net income
|
$ | 206 | $ | 306 | ||||
Average total assets
|
$ | 576,622 | $ | 584,343 | ||||
Net income (annualized) as a percentage
of average total assets
|
0.14 | % | 0.21 | % | ||||
(1)
|
Loan interest includes loan fees of $2,000 and $21,000 during the three months ending March 31, 2011 and March 31, 2010, respectively. Average loan balances include non-performing loans.
|
(2)
|
Includes taxable-equivalent adjustments that primarily relate to income on certain securities that is exempt from federal income taxes. The effective federal statutory tax rate was 34% for 2011 and 2010.
|
(3)
|
Net interest margin is computed by dividing net interest income by total average earning assets.
|
(4)
|
Average yield is calculated based on actual days in quarter (90 days) and annualized to actual days in year (365 days).
|
(1)
|
The average balance of non-accruing loans and leases is immaterial as a percentage of total loans and leases and has been included in net loans and leases.
|
(2)
|
Loan fees of $2,000 and $21,000 during the three months ending March 31, 2011 and March 31, 2010, respectively, have been included in the interest income computation.
|
(3)
|
Includes taxable-equivalent adjustments that primarily relate to income on certain securities that is exempt from federal income taxes. The effective federal statutory tax rate was 34% for 2011 and 2010.
|
(4)
|
The rate/volume variance has been included in the rate variance.
|
Table Four: Components of Noninterest Income | ||||||||
Three Months Ended March 31, | ||||||||
2011
|
2010
|
|||||||
Service charges on deposit accounts
|
$ | 197 | $ | 233 | ||||
Gain on sale of securities
|
2 | 2 | ||||||
Merchant fee income
|
102 | 97 | ||||||
Bank owned life insurance
|
68 | 59 | ||||||
Other
|
64 | 70 | ||||||
Total noninterest income
|
$ | 433 | $ | 461 |
Table Five: Investment Securities Composition | ||||||||
(dollars in thousands) | ||||||||
Available-for-sale (at fair value) |
March 31,
2011
|
December 31,
2010 |
||||||
Debt securities:
|
||||||||
Mortgage-backed securities
|
$ | 142,195 | $ | 138,644 | ||||
Obligations of states and political subdivisions
|
17,808 | 15,792 | ||||||
Corporate stock | 89 | 79 | ||||||
Total available-for-sale investment securities
|
$ | 160,092 | $ | 154,515 | ||||
Held-to-maturity (at amortized cost) | ||||||||
Debt securities:
|
||||||||
Mortgage-backed securities
|
$ | 5,486 | $ | 6,149 | ||||
Total held-to-maturity investment securities
|
$ | 5,486 | $ | 6,149 |
Table Seven: Nonperforming Loans and Leases
|
||||||||
(dollars in thousands)
|
March 31,
|
December 31, | ||||||
2011 |
2010
|
|||||||
Past due 90 days or more and still accruing
|
||||||||
Commercial
|
$ | — | $ | — | ||||
Real estate
|
— | — | ||||||
Lease financing receivable
|
— | — | ||||||
Consumer and other
|
— | — | ||||||
Nonaccrual
|
||||||||
Commercial
|
3,387 | 3,491 | ||||||
Real estate
|
17,650 | 18,735 | ||||||
Lease financing receivable
|
25 | 28 | ||||||
Consumer and other
|
533 | 317 | ||||||
Total nonperforming loans
|
$ | 21,595 | $ | 22,571 |
Table Eight: Allowance for Loan and Lease Losses | ||||||||
(dollars in thousands)
|
Three Months
Ended March 31,
|
|||||||
2011
|
2010
|
|||||||
Average loans and leases outstanding
|
$ | 337,670 | $ | 378,317 | ||||
Allowance for loan and lease losses at beginning of period
|
$ | 7,585 | $ | 7,909 | ||||
Loans and leases charged off:
|
||||||||
Commercial
|
(291 | ) | (998 | ) | ||||
Real estate
|
(1,448 | ) | (152 | ) | ||||
Lease financing receivable
|
— | — | ||||||
Consumer
|
(6 | ) | (99 | ) | ||||
Total
|
(1,745 | ) | (1,249 | ) | ||||
Recoveries of loans and leases previously
charged off:
|
||||||||
Commercial
|
133 | 63 | ||||||
Real estate
|
— | 16 | ||||||
Lease financing receivable
|
— | — | ||||||
Consumer
|
14 | — | ||||||
Total
|
147 | 79 | ||||||
Net loans and leases charged off
|
(1,598 | ) | (1,170 | ) | ||||
Additions to allowance charged
to operating expenses
|
1,375 | 1,641 | ||||||
Allowance for loan and lease losses
at end of period
|
$ | 7,362 | $ | 8,380 | ||||
Ratio of net charge-offs to average loans and
leases outstanding (annualized)
|
1.92 | % | 1.25 | % | ||||
Provision for loan and lease losses to average
loans and leases outstanding (annualized)
|
1.65 | % | 1.76 | % | ||||
Allowance for loan and lease losses to loans and leases net of deferred fees at end of period
|
2.21 | % | 2.26 | % |
Table Nine: Other Borrowed Funds
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||
Short-term borrowings:
|
||||||||||||||||
FHLB advances
|
$ | 7,000 | 2.57 | % | $ | 7,000 | 2.40 | % | ||||||||
Long-term borrowings:
|
||||||||||||||||
FHLB advances
|
$ | 5,000 | 2.73 | % | $ | 10,000 | 2.41 | % |
Short-term | Long-term | |||||||
Amount
|
$ | 7,000 | $ | 5,000 | ||||
Maturity
|
2011 to 2012
|
2012 to 2014
|
||||||
Average rates
|
2.57 | % | 2.73 | % |
Table Ten: Capital Ratios
|
|||||||||
Capital to Risk-Adjusted Assets
|
At March 31, 2011
|
At December 31, 2010
|
Minimum Regulatory
Capital Requirements |
||||||
Leverage ratio
|
12.8 | % | 12.6 | % | 4.00 | % | |||
Tier 1 Risk-Based Capital
|
19.8 | % | 19.1 | % | 4.00 | % | |||
Total Risk-Based Capital
|
21.0 | % | 20.3 | % | 8.00 | % |
(dollars in thousands)
|
$ Change in NII
from Current
12 Month Horizon
March 31, 2011
|
$ Change in NII
from Current
12 Month Horizon
December 31, 2010
|
||||||||
Variation from a constant rate scenario
|
||||||||||
+200bp | $ | 37 | $ | 289 | ||||||
- 200bp | $ | (1,380 | ) | $ | (1,739 | ) |
Period
|
(a)
|
(b)
|
(c)
|
(d)
|
Total Number
of Shares (or Units) Purchased |
Average Price
Paid Per Share
(or Unit)
|
Total Number of Shares
(or Units) Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number (or
Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under
the Plans or Programs
|
|
Month #1
January 1 through
January 31, 2011
|
None
|
N/A
|
None
|
None
|
Month #2
February 1 through
February 28, 2011
|
None
|
N/A
|
None
|
None
|
Month #3
March 1 through
March 31, 2011
|
None
|
N/A
|
None
|
None
|
Total
|
None
|
N/A
|
None
|
Exhibit
|
|||
Number
|
Document Description
|
||
(2.1)
|
Agreement and Plan of Reorganization and Merger by and among the Registrant, ARH Interim National Bank and North Coast Bank, N.A., dated as of March 1, 2000 (included as Annex A). **
|
||
(2.2)
|
Agreement and Plan of Reorganization and Merger by and among the Registrant, American River Bank and Bank of Amador, dated as of July 8, 2004 (included as Annex A). ***
|
||
(3.1)
|
Articles of Incorporation, as amended.
|
||
(3.2)
|
Bylaws, as amended, incorporated by reference from Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2008, filed with the Commission on August 8, 2008.
|
||
(4.1)
|
Specimen of the Registrant’s common stock certificate, incorporated by reference from Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2004, filed with the Commission on August 11, 2004.
|
||
(10.1)
|
Lease agreement between American River Bank and Spieker Properties, L.P., a California limited partnership, dated April 1, 2000, related to 1545 River Park Drive, Suite 107, Sacramento, California (**) and the Second Amendment thereto dated August 27, 2010, with HINES VAF II SACRAMENTO PROPERTIES, L.P., a Delaware limited partnership, the successor to Spieker Properties, L.P., incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on August 30, 2010.
|
||
(10.2)
|
Lease agreement between American River Bank and Bradshaw Plaza, Associates, Inc. dated November 27, 2006, related to 9750 Business Park Drive, Sacramento, California incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on November 28, 2006.
|
||
(10.3)
|
Lease agreement between American River Bank and Marjorie Wood Taylor, Trustee of the Marjorie Wood-Taylor Trust, dated April 5, 1984, and addendum thereto dated July 16, 1997, related to 10123 Fair Oaks Boulevard, Fair Oaks, California (**) and Amendment No. 2 thereto dated May 14, 2009, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on May 15, 2009.
|
||
(10.4)
|
Lease agreement between American River Bank and LUM YIP KEE, Limited (formerly Sandalwood Land Company) dated August 28, 1996, related to 2240 Douglas Boulevard, Suite 100, Roseville, California (**) and Amendment No. 1 thereto dated July 28, 2006, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on July 31, 2006.
|
(10.18)
|
Lease agreement between Registrant and One Capital Center, a California limited partnership, dated May 17, 2005, related to 3100 Zinfandel Drive, Rancho Cordova, California, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on May 18, 2005 and the First Amendment thereto dated April 23, 2010, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on April 23, 2010.
|
||
(10.19)
|
Managed Services Agreement between American River Bankshares and ProNet Solutions, Inc., dated June 16, 2009, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on June 18, 2009.
|
||
*(10.20)
|
American River Bankshares 2005 Executive Incentive Plan, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on October 27, 2005; the First Amendment thereto, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on March 17, 2006; the Second Amendment thereto, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on March 23, 2007; the Third Amendment thereto, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on February 22, 2008, the Fourth Amendment thereto, incorporated by reference from the Registrant’s Current Report on Form 8-K, filed with the Commission on March 20, 2009, and the Fifth Amendment thereto, incorporated by reference from the Registrant’s Current Report on Form 8-K, filed with the Commission on March 18, 2010.
|
||
*(10.21)
|
American River Bankshares Director Emeritus Program, incorporated by reference from Exhibit 10.33 to the Registrant’s Quarterly Report on Form 10-Q for the period ended June 30, 2006, filed with the Commission on August 8, 2006.
|
||
*(10.22)
|
Employment Agreement dated September 20, 2006, between American River Bankshares and Mitchell A. Derenzo, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on September 20, 2006.
|
||
*(10.23)
|
Employment Agreement dated September 20, 2006, between American River Bankshares and Douglas E. Tow, incorporated by reference from Exhibit 99.2 to the Registrant’s Current Report on Form 8-K, filed with the Commission on September 20, 2006.
|
||
*(10.24)
|
Employment Agreement dated September 20, 2006, between American River Bankshares and Kevin B. Bender, incorporated by reference from Exhibit 99.3 to the Registrant’s Current Report on Form 8-K, filed with the Commission on September 20, 2006.
|
||
*(10.25)
|
Employment Agreement dated September 20, 2006, between American River Bank and Raymond F. Byrne, incorporated by reference from Exhibit 99.5 to the Registrant’s Current Report on Form 8-K, filed with the Commission on September 20, 2006.
|
||
*(10.26)
|
Salary Continuation Agreement, as amended on February 21, 2008, between American River Bank and Kevin B. Bender, incorporated by reference from Exhibit 99.6 to the Registrant’s Current Report on Form 8-K, filed with the Commission on February 22, 2008.
|
||
*(10.27)
|
Salary Continuation Agreement, as amended on February 21, 2008, between American River Bank and Raymond F. Byrne, incorporated by reference from Exhibit 99.7 to the Registrant’s Current Report on Form 8-K, filed with the Commission on
February 22, 2008.
|
||
(10.28)
|
Lease agreement dated May 23, 2007 between Bank of Amador, a division of American River Bank, and Joseph Bellamy, Trustee of the Joseph T. Bellamy 2005 Trust, related to 26395 Buckhorn Ridge Road, Pioneer, California, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on May 24, 2007 and the First Amendment thereto, dated October 15, 2007, incorporated by reference from Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Commission on October 16, 2007.
|
AMERICAN RIVER BANKSHARES | ||
May 10, 2011
|
By:
|
/s/ DAVID T. TABER
|
David T. Taber | ||
President and | ||
Chief Executive Officer | ||
AMERICAN RIVER BANKSHARES | ||
May 10, 2011
|
By:
|
/s/ MITCHELL A. DERENZO
|
Mitchell A. Derenzo | ||
Executive Vice President and | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
Exhibit Number
|
Description
|
Page
|
||
3.1
|
Articles of Incorporation, as amended.
|
51
|
||
31.1
|
Certifications of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
64
|
||
31.2
|
Certifications of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
65
|
||
32.1
|
Certification of American River Bankshares by its Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
66
|
/s/ David T. Taber
|
|
David T. Taber
|
|
President and Chief Executive Officer
|
|
/s/ Mitchell A. Derenzo
|
|
Mitchell A. Derenzo
|
|
Executive Vice President and Chief Financial Officer
|
Dated:
May 27, 2009
|
/s/ David T. Taber
|
|
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Executive Vice President and Chief Financial Officer
|
/s/ Stephen H. Waks
|
||
Stephen H. Waks
|
||
Corporate Secretary
|
/s/ David T. Taber
|
||
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
Dated: May 22, 2008
|
/s/ David T. Taber
|
|
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
/s/ Stephen H. Waks
|
||
Stephen H. Waks
|
||
Corporate Secretary
|
/s/ David T. Taber
|
||
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
Dated: May 20, 2004
|
/s/ David T. Taber
|
|
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
/s/ David T. Taber
|
||
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
Dated: September 14, 2003
|
/s/ David T. Taber
|
|
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
“Seven: Classified Board of Directors. | ||
(a)
|
The number of directors which shall constitute the whole board of directors of this corporation shall be specified in the bylaws of the corporation.
|
|
(b)
|
In the event that the authorized number of directors shall be fixed at nine (9) or more, the board of directors shall be divided into three classes: Class I, Class II, and Class III, each consisting of a number of directors equal as nearly as practicable to one-third the total number of directors. Directors in Class I shall initially serve for a term expiring at the 2001 annual meeting of shareholders, directors in Class II shall initially serve for a term expiring at the 2002 annual meeting of shareholders, and directors in Class III shall initially serve for a term expiring at the 2003 annual meeting of shareholders. Thereafter, each director shall serve for a term ending at the third annual shareholders meeting following the annual meeting at which such director was elected. In the event that the authorized number of directors shall be fixed with at least six (6) but less than nine (9), the board of directors shall be divided into two classes, designated Class I and II, each consisting of one-half of the directors or as close as an approximation as possible. At each annual meeting, each of the successors to the directors of the class whose term shall have expired at such annual meeting shall be elected for a term running until the second annual meeting next succeeding his or her election and until his or her successor shall have been duly elected and qualified. The foregoing notwithstanding, each director shall serve until his or her successor shall have been duly elected and qualified, unless he or she shall resign, die, become disqualified or disabled, or shall otherwise be removed.
|
(c)
|
At each annual election, the directors chosen to succeed those whose terms then expire shall be identified as being of the same class as the directors they succeed unless, by reason of any intervening changes in the authorized number of directors, the board of directors shall designate one or more directorships whose term then expires as directorships of another class in order more nearly to achieve equality in the number of directors among the classes. When the board of directors fills a vacancy resulting from the resignation, death, disqualification or removal of a director, the director chosen to fill that vacancy shall be of the same class as the director he or she succeeds, unless, by reason of any previous changes in the authorized number of directors, the board of directors shall designate the vacant directorship as a directorship of another class in order more nearly to achieve equality in the number of directors among the classes.
|
|
(d)
|
Notwithstanding the rule that the classes shall be as nearly equal in number of directors as possible, in the event of any change in the authorized number of directors, each director then continuing to serve as such will nevertheless continue as a director of the class of which he or she is a member, until the expiration of his current term or his or her earlier resignation, death, disqualification or removal. If any newly created directorship or vacancy on the board of directors, consistent with the rule that the three classes shall be as nearly equal in number of directors as possible, may be allocated to one or two or more classes, the board of directors shall allocate it to that of the available class whose term of office is due to expire at the earliest date following such allocation.”
|
|
“Eight: Cumulative Voting. |
Dated: December 1, 2000
|
/s/ David T. Taber
|
|
David T. Taber
|
||
President and Chief Executive Officer
|
||
/s/ Mitchell A. Derenzo
|
||
Mitchell A. Derenzo
|
||
Chief Financial Officer
|
1.
|
They are the president and the assistant corporate secretary, respectively, of American River Holdings, a California corporation. | |
2.
|
Article 3 (three) of the Articles of Incorporation of this corporation is amended to read as follows: | |
The corporation is authorized to issue only one class of shares of stock, “Common Stock,” and the total number of shares which the corporation is authorized to issue is 20,000,000. Upon the amendment of this article, each outstanding share of Common Stock is split into 1.50 shares.
|
||
3.
|
The foregoing amendment of the Articles of Incorporation has been duly approved by the Board of Directors at their regular meeting held April 21, 1999. | |
4.
|
The corporation has only one class of shares outstanding and the amendment affects only a stock split. |
/s/ David T. Taber
|
/s/ Patricia Thaxter
|
||
David T. Taber
|
Patricia Thaxter
|
||
President
|
Assistant Corporate Secretary
|
||
Chief Executive Officer
|
|||
Dated: May 7, 1999
|
/s/ David T. Taber
|
/s/ Patricia Thaxter
|
||
David T. Taber
|
Patricia Thaxter
|
||
Dated May 7, 1999
|
/s/ Gary Steven Findley
|
||
Gary Steven Findley
|
/s/ Gary Steven Findley
|
||
Gary Steven Findley
|
1.
|
I have reviewed this quarterly report on Form 10-Q of American River Bankshares;
|
|
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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) 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 has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
||
5.
|
The registrant’s other certifying officer(s) 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.
|
Date: May 10, 2011
|
||
By: /s/DAVID T. TABER
|
||
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of American River Bankshares;
|
|
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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) 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 has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
||
5.
|
The registrant’s other certifying officer(s) 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.
|
Date: May 10, 2011
|
||
By: /s/MITCHELL A. DERENZO
|
||
Executive Vice President and Chief Financial Officer
|
1.
|
The Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
2.
|
Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: May 10, 2011
|
By:
|
/s/ DAVID T. TABER
|
||
David T. Taber | ||||
President and Chief Executive Officer | ||||
Dated: May 10, 2011
|
By:
|
/s/ MITCHELL A. DERENZO
|
||
Mitchell A. Derenzo | ||||
Executive Vice President and | ||||
Chief Financial Officer |