x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2012
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or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from __________ to __________
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IOWA
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42-1230603
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(State of Incorporation)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
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o
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Accelerated filer
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x
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Non-accelerated filer
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o
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Smaller reporting company
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o
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Page
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PART I.
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 1.
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Item 1A.
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Item 6.
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West Bancorporation, Inc. and Subsidiary
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|
||||
Consolidated Balance Sheets
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||||
(unaudited)
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||||
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||||
(in thousands)
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March 31, 2012
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December 31, 2011
|
||||
ASSETS
|
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|
||||
Cash and due from banks
|
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$
|
32,803
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$
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35,772
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Federal funds sold
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75,703
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51,332
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Cash and cash equivalents
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108,506
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87,104
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Securities available for sale
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306,188
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283,145
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Federal Home Loan Bank stock, at cost
|
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11,475
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11,352
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Loans held for sale
|
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901
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4,089
|
|
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Loans
|
|
849,041
|
|
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838,959
|
|
||
Allowance for loan losses
|
|
(16,651
|
)
|
|
(16,778
|
)
|
||
Loans, net
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832,390
|
|
|
822,181
|
|
||
Premises and equipment, net
|
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5,871
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|
5,396
|
|
||
Accrued interest receivable
|
|
4,735
|
|
|
4,183
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|
||
Bank-owned life insurance
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25,923
|
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25,724
|
|
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Other real estate owned
|
|
9,963
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|
10,967
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Deferred tax assets
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7,849
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|
8,409
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|
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Other assets
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7,403
|
|
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6,974
|
|
||
Total assets
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$
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1,321,204
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$
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1,269,524
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
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|
||||
LIABILITIES
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|
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Deposits:
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|
||||
Noninterest-bearing demand
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$
|
272,018
|
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$
|
268,887
|
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Interest-bearing demand
|
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163,553
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158,141
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|
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Savings
|
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374,530
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343,312
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Time of $100,000 or more
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73,756
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98,743
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Other time
|
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85,173
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88,290
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|
||
Total deposits
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969,030
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957,373
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
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93,496
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|
55,841
|
|
||
Subordinated notes
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20,619
|
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|
20,619
|
|
||
Federal Home Loan Bank advances
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105,000
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|
105,000
|
|
||
Accrued expenses and other liabilities
|
|
6,790
|
|
|
7,240
|
|
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Total liabilities
|
|
1,194,935
|
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|
1,146,073
|
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STOCKHOLDERS' EQUITY
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|
||||
Preferred stock, $0.01 par value; authorized 50,000,000 shares; no shares issued
|
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|
||||
and outstanding at March 31, 2012, and December 31, 2011
|
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—
|
|
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—
|
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||
Common stock, no par value; authorized 50,000,000 shares; 17,403,882
|
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|
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|
||||
shares issued and outstanding at March 31, 2012, and December 31, 2011
|
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3,000
|
|
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3,000
|
|
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Additional paid-in capital
|
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33,687
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33,687
|
|
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Retained earnings
|
|
88,696
|
|
|
86,110
|
|
||
Accumulated other comprehensive income
|
|
886
|
|
|
654
|
|
||
Total stockholders' equity
|
|
126,269
|
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|
123,451
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
1,321,204
|
|
|
$
|
1,269,524
|
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West Bancorporation, Inc. and Subsidiary
|
|
|
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|
||||
Consolidated Income Statements
|
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|
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|
||||
(unaudited)
|
|
|
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|
||||
|
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Three Months Ended March 31,
|
||||||
(in thousands, except per share data)
|
|
2012
|
|
2011
|
||||
Interest income:
|
|
|
|
|
||||
Loans, including fees
|
|
$
|
11,190
|
|
|
$
|
11,793
|
|
Securities:
|
|
|
|
|
||||
Taxable securities
|
|
971
|
|
|
1,114
|
|
||
Tax-exempt securities
|
|
503
|
|
|
604
|
|
||
Federal funds sold and other short-term investments
|
|
42
|
|
|
61
|
|
||
Total interest income
|
|
12,706
|
|
|
13,572
|
|
||
Interest expense:
|
|
|
|
|
||||
Demand deposits
|
|
294
|
|
|
420
|
|
||
Savings deposits
|
|
266
|
|
|
284
|
|
||
Time deposits
|
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719
|
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|
1,161
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
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37
|
|
|
46
|
|
||
Subordinated notes
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193
|
|
|
176
|
|
||
Long-term borrowings
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1,019
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|
|
1,008
|
|
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Total interest expense
|
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2,528
|
|
|
3,095
|
|
||
Net interest income
|
|
10,178
|
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10,477
|
|
||
Provision for loan losses
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—
|
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|
500
|
|
||
Net interest income after provision for loan losses
|
|
10,178
|
|
|
9,977
|
|
||
Noninterest income:
|
|
|
|
|
||||
Service charges on deposit accounts
|
|
730
|
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|
750
|
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||
Debit card usage fees
|
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378
|
|
|
347
|
|
||
Trust services
|
|
204
|
|
|
219
|
|
||
Gains and fees on sales of residential mortgages
|
|
747
|
|
|
184
|
|
||
Increase in cash value of bank-owned life insurance
|
|
199
|
|
|
221
|
|
||
Gain from bank-owned life insurance
|
|
—
|
|
|
637
|
|
||
Net impairment losses
|
|
(46
|
)
|
|
—
|
|
||
Realized securities (losses), net
|
|
(33
|
)
|
|
—
|
|
||
Other income
|
|
222
|
|
|
313
|
|
||
Total noninterest income
|
|
2,401
|
|
|
2,671
|
|
||
Noninterest expense:
|
|
|
|
|
||||
Salaries and employee benefits
|
|
3,636
|
|
|
3,055
|
|
||
Occupancy
|
|
857
|
|
|
816
|
|
||
Data processing
|
|
501
|
|
|
451
|
|
||
FDIC insurance expense
|
|
166
|
|
|
549
|
|
||
Other real estate owned expense
|
|
82
|
|
|
187
|
|
||
Professional fees
|
|
292
|
|
|
222
|
|
||
Other expenses
|
|
1,331
|
|
|
1,196
|
|
||
Total noninterest expense
|
|
6,865
|
|
|
6,476
|
|
||
Income before income taxes
|
|
5,714
|
|
|
6,172
|
|
||
Income taxes
|
|
1,737
|
|
|
1,642
|
|
||
Net income
|
|
3,977
|
|
|
4,530
|
|
||
Preferred stock dividends and accretion of discount
|
|
—
|
|
|
(571
|
)
|
||
Net income available to common stockholders
|
|
$
|
3,977
|
|
|
$
|
3,959
|
|
|
|
|
|
|
||||
Basic and diluted earnings per common share
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
Cash dividends per common share
|
|
$
|
0.08
|
|
|
$
|
—
|
|
West Bancorporation, Inc. and Subsidiary
|
|
|
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|
||||
Consolidated Statements of Comprehensive Income
|
|
|
|
|
||||
(unaudited)
|
|
|
|
|
||||
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
|
2012
|
|
2011
|
||||
Net income
|
|
$
|
3,977
|
|
|
$
|
4,530
|
|
Other comprehensive income, before tax:
|
|
|
|
|
||||
Unrealized gains (losses) on securities for which a portion of an other than
|
|
|
|
|
||||
temporary impairment has been recorded in earnings before tax:
|
|
|
|
|
||||
Unrealized holding gains (losses) arising during the period
|
|
(56
|
)
|
|
88
|
|
||
Less: reclassification adjustment for impairment losses realized in net income
|
|
46
|
|
|
—
|
|
||
Net unrealized gains (losses) on securities with other than temporary
|
|
|
|
|
||||
impairment before tax expense
|
|
(10
|
)
|
|
88
|
|
||
Unrealized gains on securities without other than temporary impairment
|
|
|
|
|
||||
before tax:
|
|
|
|
|
||||
Unrealized holding gains arising during the period
|
|
352
|
|
|
1,289
|
|
||
Plus: reclassification adjustment for net losses realized in net income
|
|
33
|
|
|
—
|
|
||
Net unrealized gains on other securities before tax expense
|
|
385
|
|
|
1,289
|
|
||
Other comprehensive income before tax
|
|
375
|
|
|
1,377
|
|
||
Tax expense related to other comprehensive income
|
|
(143
|
)
|
|
(524
|
)
|
||
Other comprehensive income, net of tax:
|
|
232
|
|
|
853
|
|
||
Comprehensive income
|
|
$
|
4,209
|
|
|
$
|
5,383
|
|
West Bancorporation, Inc. and Subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated Statements of Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(in thousands, except per share data)
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||||||
Balance, December 31, 2010
|
|
$
|
34,508
|
|
|
$
|
3,000
|
|
|
$
|
34,387
|
|
|
$
|
76,188
|
|
|
$
|
(2,647
|
)
|
|
$
|
145,436
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,530
|
|
|
—
|
|
|
4,530
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
853
|
|
|
853
|
|
||||||
Preferred stock discount accretion
|
|
121
|
|
|
—
|
|
|
—
|
|
|
(121
|
)
|
|
—
|
|
|
—
|
|
||||||
Preferred stock dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(450
|
)
|
|
—
|
|
|
(450
|
)
|
||||||
Balance, March 31, 2011
|
|
$
|
34,629
|
|
|
$
|
3,000
|
|
|
$
|
34,387
|
|
|
$
|
80,147
|
|
|
$
|
(1,794
|
)
|
|
$
|
150,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2011
|
|
$
|
—
|
|
|
$
|
3,000
|
|
|
$
|
33,687
|
|
|
$
|
86,110
|
|
|
$
|
654
|
|
|
$
|
123,451
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,977
|
|
|
—
|
|
|
3,977
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|
232
|
|
||||||
Cash dividends declared, $0.08 per common share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,391
|
)
|
|
—
|
|
|
(1,391
|
)
|
||||||
Balance, March 31, 2012
|
|
$
|
—
|
|
|
$
|
3,000
|
|
|
$
|
33,687
|
|
|
$
|
88,696
|
|
|
$
|
886
|
|
|
$
|
126,269
|
|
West Bancorporation, Inc. and Subsidiary
Consolidated Statements of Cash Flows
(unaudited)
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
|
2012
|
|
2011
|
||||
Cash Flows from Operating Activities:
|
|
|
|
|
||||
Net income
|
|
$
|
3,977
|
|
|
$
|
4,530
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Provision for loan losses
|
|
—
|
|
|
500
|
|
||
Net amortization and accretion
|
|
1,160
|
|
|
733
|
|
||
(Gain) loss on disposition of premises and equipment
|
|
4
|
|
|
(9
|
)
|
||
Securities losses, net
|
|
33
|
|
|
—
|
|
||
Investment securities impairment losses
|
|
46
|
|
|
—
|
|
||
Gain on sale of loans
|
|
(635
|
)
|
|
(158
|
)
|
||
Proceeds from sales of loans held for sale
|
|
27,292
|
|
|
12,703
|
|
||
Originations of loans held for sale
|
|
(23,469
|
)
|
|
(9,090
|
)
|
||
Gain on sale of other real estate owned
|
|
(86
|
)
|
|
(245
|
)
|
||
Write-down of other real estate owned
|
|
123
|
|
|
352
|
|
||
Gain from bank-owned life insurance
|
|
—
|
|
|
(637
|
)
|
||
Increase in value of bank-owned life insurance
|
|
(199
|
)
|
|
(221
|
)
|
||
Depreciation
|
|
166
|
|
|
143
|
|
||
Deferred income taxes
|
|
417
|
|
|
759
|
|
||
Change in assets and liabilities:
|
|
|
|
|
||||
(Increase) decrease in accrued interest receivable
|
|
(552
|
)
|
|
248
|
|
||
(Increase) decrease in other assets
|
|
(433
|
)
|
|
1,076
|
|
||
Decrease in accrued expenses and other liabilities
|
|
(450
|
)
|
|
(276
|
)
|
||
Net cash provided by operating activities
|
|
7,394
|
|
|
10,408
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
||
Proceeds from sales, calls, and maturities of securities available for sale
|
|
22,021
|
|
|
13,265
|
|
||
Purchases of securities available for sale
|
|
(45,925
|
)
|
|
(17,208
|
)
|
||
Purchases of Federal Home Loan Bank stock
|
|
(586
|
)
|
|
(209
|
)
|
||
Proceeds from redemption of Federal Home Loan Bank stock
|
|
463
|
|
|
78
|
|
||
Net change in loans
|
|
(9,497
|
)
|
|
55,287
|
|
||
Net proceeds from sales of other real estate owned
|
|
256
|
|
|
3,599
|
|
||
Proceeds from sales of premises and equipment
|
|
—
|
|
|
36
|
|
||
Purchases of premises and equipment
|
|
(645
|
)
|
|
(97
|
)
|
||
Net cash provided by (used in) investing activities
|
|
(33,913
|
)
|
|
54,751
|
|
||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
||
Net increase (decrease) in deposits
|
|
11,657
|
|
|
(21,998
|
)
|
||
Net increase in federal funds purchased and securities sold under
|
|
|
|
|
||||
agreements to repurchase
|
|
37,655
|
|
|
4,640
|
|
||
Net decrease in other short-term borrowings
|
|
—
|
|
|
(1,175
|
)
|
||
Common stock dividends paid
|
|
(1,391
|
)
|
|
—
|
|
||
Preferred stock dividends paid
|
|
—
|
|
|
(450
|
)
|
||
Net cash provided by (used in) financing activities
|
|
47,921
|
|
|
(18,983
|
)
|
||
Net increase in cash and cash equivalents
|
|
21,402
|
|
|
46,176
|
|
||
Cash and Cash Equivalents:
|
|
|
|
|
||||
Beginning
|
|
87,104
|
|
|
87,954
|
|
||
Ending
|
|
$
|
108,506
|
|
|
$
|
134,130
|
|
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
|
||||
Cash payments for:
|
|
|
|
|
||||
Interest
|
|
$
|
2,625
|
|
|
$
|
3,508
|
|
Income taxes
|
|
286
|
|
|
451
|
|
||
|
|
|
|
|
||||
Supplemental Disclosure of Noncash Investing and Financing Activities:
|
|
|
|
|
||||
Transfer of loans to other real estate owned
|
|
$
|
114
|
|
|
$
|
780
|
|
Sale of OREO financed by issuance of a loan
|
|
800
|
|
|
—
|
|
|
March 31, 2012
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
U.S. government agencies and corporations
|
$
|
17,629
|
|
|
$
|
304
|
|
|
$
|
(118
|
)
|
|
$
|
17,815
|
|
State and political subdivisions
|
51,808
|
|
|
2,270
|
|
|
(223
|
)
|
|
53,855
|
|
||||
Collateralized mortgage obligations
(1)
|
189,880
|
|
|
3,028
|
|
|
(458
|
)
|
|
192,450
|
|
||||
Mortgage-backed securities
(1)
|
38,645
|
|
|
773
|
|
|
(31
|
)
|
|
39,387
|
|
||||
Trust preferred securities
|
6,061
|
|
|
—
|
|
|
(4,115
|
)
|
|
1,946
|
|
||||
Corporate notes and other investments
|
735
|
|
|
—
|
|
|
—
|
|
|
735
|
|
||||
|
$
|
304,758
|
|
|
$
|
6,375
|
|
|
$
|
(4,945
|
)
|
|
$
|
306,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
December 31, 2011
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
U.S. government agencies and corporations
|
$
|
12,644
|
|
|
$
|
371
|
|
|
$
|
(12
|
)
|
|
$
|
13,003
|
|
State and political subdivisions
|
50,172
|
|
|
2,398
|
|
|
(53
|
)
|
|
52,517
|
|
||||
Collateralized mortgage obligations
(1)
|
173,438
|
|
|
2,301
|
|
|
(241
|
)
|
|
175,498
|
|
||||
Mortgage-backed securities
(1)
|
34,967
|
|
|
706
|
|
|
(37
|
)
|
|
35,636
|
|
||||
Trust preferred securities
|
6,105
|
|
|
—
|
|
|
(4,094
|
)
|
|
2,011
|
|
||||
Corporate notes and other investments
|
4,764
|
|
|
—
|
|
|
(284
|
)
|
|
4,480
|
|
||||
|
$
|
282,090
|
|
|
$
|
5,776
|
|
|
$
|
(4,721
|
)
|
|
$
|
283,145
|
|
(1)
|
All collateralized mortgage obligations and mortgage-backed securities consist of residential mortgage pass-through securities guaranteed by GNMA or issued by FNMA, and real estate mortgage investment conduits guaranteed by FHLMC or GNMA.
|
|
March 31, 2012
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
1,154
|
|
|
$
|
1,162
|
|
Due after one year through five years
|
22,213
|
|
|
22,213
|
|
||
Due after five years through ten years
|
21,186
|
|
|
22,275
|
|
||
Due after ten years
|
31,680
|
|
|
28,701
|
|
||
|
76,233
|
|
|
74,351
|
|
||
Collateralized mortgage obligations and mortgage-backed securities
|
228,525
|
|
|
231,837
|
|
||
|
$
|
304,758
|
|
|
$
|
306,188
|
|
|
Three Months Ended March 31,
|
||||||
|
2012
|
|
2011
|
||||
Proceeds from sales
|
$
|
3,960
|
|
|
$
|
—
|
|
Gross gains on sales
|
—
|
|
|
—
|
|
||
Gross losses on sales
|
33
|
|
|
—
|
|
|
March 31, 2012
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
|
Gross
Unrealized
(Losses)
|
||||||||||||
U.S. government agencies
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and corporations
|
$
|
14,867
|
|
|
$
|
(118
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,867
|
|
|
$
|
(118
|
)
|
State and political subdivisions
|
4,051
|
|
|
(185
|
)
|
|
3,105
|
|
|
(38
|
)
|
|
7,156
|
|
|
(223
|
)
|
||||||
Collateralized mortgage obligations
|
41,707
|
|
|
(458
|
)
|
|
—
|
|
|
—
|
|
|
41,707
|
|
|
(458
|
)
|
||||||
Mortgage-backed securities
|
5,193
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
5,193
|
|
|
(31
|
)
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
1,946
|
|
|
(4,115
|
)
|
|
1,946
|
|
|
(4,115
|
)
|
||||||
|
$
|
65,818
|
|
|
$
|
(792
|
)
|
|
$
|
5,051
|
|
|
$
|
(4,153
|
)
|
|
$
|
70,869
|
|
|
$
|
(4,945
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
December 31, 2011
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
|
Gross
Unrealized
(Losses)
|
||||||||||||
U.S. government agencies
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and corporations
|
$
|
4,988
|
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,988
|
|
|
$
|
(12
|
)
|
State and political subdivisions
|
—
|
|
|
—
|
|
|
3,090
|
|
|
(53
|
)
|
|
3,090
|
|
|
(53
|
)
|
||||||
Collateralized mortgage obligations
|
38,175
|
|
|
(241
|
)
|
|
—
|
|
|
—
|
|
|
38,175
|
|
|
(241
|
)
|
||||||
Mortgage-backed securities
|
17,898
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
17,898
|
|
|
(37
|
)
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
2,011
|
|
|
(4,094
|
)
|
|
2,011
|
|
|
(4,094
|
)
|
||||||
Corporate notes and other investments
|
—
|
|
|
—
|
|
|
3,708
|
|
|
(284
|
)
|
|
3,708
|
|
|
(284
|
)
|
||||||
|
$
|
61,061
|
|
|
$
|
(290
|
)
|
|
$
|
8,809
|
|
|
$
|
(4,431
|
)
|
|
$
|
69,870
|
|
|
$
|
(4,721
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2012
|
|
2011
|
||||
Balance at beginning of period
|
$
|
526
|
|
|
$
|
427
|
|
Current period credit loss recognized in earnings
|
46
|
|
|
—
|
|
||
Reductions for securities sold during the period
|
—
|
|
|
—
|
|
||
Reductions for securities where there is an intent to sell or requirement to sell
|
—
|
|
|
—
|
|
||
Reductions for increases in cash flows expected to be collected
|
—
|
|
|
—
|
|
||
Balance at end of period
|
$
|
572
|
|
|
$
|
427
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||
Commercial
|
$
|
256,854
|
|
|
$
|
255,702
|
|
Real estate:
|
|
|
|
||||
Construction, land, and land development
|
104,006
|
|
|
101,607
|
|
||
1-4 family residential first mortgages
|
62,703
|
|
|
63,218
|
|
||
Home equity
|
23,080
|
|
|
26,423
|
|
||
Commercial
|
397,047
|
|
|
386,137
|
|
||
Consumer and other loans
|
5,516
|
|
|
6,155
|
|
||
|
849,206
|
|
|
839,242
|
|
||
Net unamortized fees and costs
|
165
|
|
|
283
|
|
||
|
$
|
849,041
|
|
|
$
|
838,959
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||
Nonaccrual loans:
|
|
|
|
||||
Commercial
|
$
|
800
|
|
|
$
|
800
|
|
Real estate:
|
|
|
|
||||
Construction, land, and land development
|
4,220
|
|
|
4,220
|
|
||
1-4 family residential first mortgages
|
907
|
|
|
923
|
|
||
Home equity
|
—
|
|
|
—
|
|
||
Commercial
|
2,629
|
|
|
2,629
|
|
||
Consumer and other loans
|
—
|
|
|
—
|
|
||
Total nonaccrual loans
|
8,556
|
|
|
8,572
|
|
||
Loans past due 90 days and still accruing interest:
|
|
|
|
||||
Commercial
|
—
|
|
|
—
|
|
||
Real estate:
|
|
|
|
||||
Construction, land, and land development
|
—
|
|
|
—
|
|
||
1-4 family residential first mortgages
|
—
|
|
|
—
|
|
||
Home equity
|
—
|
|
|
—
|
|
||
Commercial
|
—
|
|
|
—
|
|
||
Consumer and other loans
|
—
|
|
|
—
|
|
||
Total loans past due 90 days and still accruing interest
|
—
|
|
|
—
|
|
||
Troubled debt restructured loans
(1)
:
|
|
|
|
||||
Commercial
|
28
|
|
|
—
|
|
||
Real estate:
|
|
|
|
||||
Construction, land, and land development
|
1,089
|
|
|
1,094
|
|
||
1-4 family residential first mortgages
|
170
|
|
|
171
|
|
||
Home equity
|
—
|
|
|
—
|
|
||
Commercial
|
848
|
|
|
856
|
|
||
Consumer and other loans
|
—
|
|
|
—
|
|
||
Total troubled debt restructured loans
|
2,135
|
|
|
2,121
|
|
||
Total nonperforming loans
|
$
|
10,691
|
|
|
$
|
10,693
|
|
(1)
|
While TDR loans are commonly reported by the industry as nonperforming, those not classified in the nonaccrual category are accruing interest due to payment performance. TDR loans on nonaccrual status would be included in the nonaccrual category if there were any, however, there were none at these dates.
|
|
Three Months Ended March 31, 2012
|
|||||||||
|
|
|
Pre-Modification
|
|
Post-Modification
|
|||||
|
Number
|
|
Outstanding
|
|
Outstanding
|
|||||
|
of Loans
|
|
Recorded Investment
|
|
Recorded Investment
|
|||||
Lengthened amortization:
|
|
|
|
|
|
|||||
Commercial
|
1
|
|
|
$
|
28
|
|
|
$
|
28
|
|
Real estate:
|
|
|
|
|
|
|||||
Construction, land, and land development
|
—
|
|
|
—
|
|
|
—
|
|
||
1-4 family residential first mortgages
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
||
Consumer and other loans
|
—
|
|
|
—
|
|
|
—
|
|
||
|
1
|
|
|
$
|
28
|
|
|
$
|
28
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||||||||||||||
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
827
|
|
|
$
|
827
|
|
|
N/A
|
|
|
$
|
800
|
|
|
$
|
800
|
|
|
N/A
|
|
||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land, and land development
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
||||||
1-4 family residential
|
1,077
|
|
|
1,092
|
|
|
N/A
|
|
|
1,094
|
|
|
1,094
|
|
|
N/A
|
|
||||||
Home equity
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
||||||
Commercial
|
3,478
|
|
|
4,671
|
|
|
N/A
|
|
|
3,484
|
|
|
4,678
|
|
|
N/A
|
|
||||||
Consumer and other
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
||||||
|
5,382
|
|
|
6,590
|
|
|
N/A
|
|
|
5,378
|
|
|
6,572
|
|
|
N/A
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
7
|
|
|
7
|
|
|
$
|
—
|
|
|
4,577
|
|
|
4,577
|
|
|
$
|
100
|
|
||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land, and land development
|
16,466
|
|
|
16,466
|
|
|
2,630
|
|
|
17,359
|
|
|
17,359
|
|
|
2,630
|
|
||||||
1-4 family residential
|
743
|
|
|
743
|
|
|
113
|
|
|
283
|
|
|
283
|
|
|
84
|
|
||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|
156
|
|
|
156
|
|
||||||
Commercial
|
1,269
|
|
|
1,269
|
|
|
200
|
|
|
1,278
|
|
|
1,278
|
|
|
200
|
|
||||||
Consumer and other
|
32
|
|
|
32
|
|
|
11
|
|
|
42
|
|
|
42
|
|
|
12
|
|
||||||
|
18,517
|
|
|
18,517
|
|
|
2,954
|
|
|
23,695
|
|
|
23,695
|
|
|
3,182
|
|
||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
834
|
|
|
834
|
|
|
—
|
|
|
5,377
|
|
|
5,377
|
|
|
100
|
|
||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land, and land development
|
16,466
|
|
|
16,466
|
|
|
2,630
|
|
|
17,359
|
|
|
17,359
|
|
|
2,630
|
|
||||||
1-4 family residential
|
1,820
|
|
|
1,835
|
|
|
113
|
|
|
1,377
|
|
|
1,377
|
|
|
84
|
|
||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|
156
|
|
|
156
|
|
||||||
Commercial
|
4,747
|
|
|
5,940
|
|
|
200
|
|
|
4,762
|
|
|
5,956
|
|
|
200
|
|
||||||
Consumer and other
|
32
|
|
|
32
|
|
|
11
|
|
|
42
|
|
|
42
|
|
|
12
|
|
||||||
|
$
|
23,899
|
|
|
$
|
25,107
|
|
|
$
|
2,954
|
|
|
$
|
29,073
|
|
|
$
|
30,267
|
|
|
$
|
3,182
|
|
|
Three months ended
|
|
Three months ended
|
||||||||||||
|
March 31, 2012
|
|
March 31, 2011
|
||||||||||||
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
807
|
|
|
$
|
—
|
|
|
$
|
2,261
|
|
|
$
|
—
|
|
Real Estate:
|
|
|
|
|
|
|
|
||||||||
Construction, land, and land development
|
2,110
|
|
|
—
|
|
|
138
|
|
|
2
|
|
||||
1-4 family residential
|
1,089
|
|
|
1
|
|
|
989
|
|
|
1
|
|
||||
Home equity
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
||||
Commercial
|
3,510
|
|
|
20
|
|
|
5,688
|
|
|
40
|
|
||||
Consumer and other
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||
|
7,516
|
|
|
21
|
|
|
9,113
|
|
|
43
|
|
||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
2,290
|
|
|
24
|
|
|
6,997
|
|
|
65
|
|
||||
Real Estate:
|
|
|
|
|
|
|
|
||||||||
Construction, land, and land development
|
15,023
|
|
|
161
|
|
|
14,004
|
|
|
173
|
|
||||
1-4 family residential
|
390
|
|
|
7
|
|
|
124
|
|
|
—
|
|
||||
Home equity
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial
|
1,273
|
|
|
24
|
|
|
—
|
|
|
—
|
|
||||
Consumer and other
|
37
|
|
|
1
|
|
|
44
|
|
|
1
|
|
||||
|
19,091
|
|
|
217
|
|
|
21,169
|
|
|
239
|
|
||||
Total:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
3,097
|
|
|
24
|
|
|
9,258
|
|
|
65
|
|
||||
Real Estate:
|
|
|
|
|
|
|
|
||||||||
Construction, land, and land development
|
17,133
|
|
|
161
|
|
|
14,142
|
|
|
175
|
|
||||
1-4 family residential
|
1,479
|
|
|
8
|
|
|
1,113
|
|
|
1
|
|
||||
Home equity
|
78
|
|
|
—
|
|
|
24
|
|
|
—
|
|
||||
Commercial
|
4,783
|
|
|
44
|
|
|
5,688
|
|
|
40
|
|
||||
Consumer and other
|
37
|
|
|
1
|
|
|
57
|
|
|
1
|
|
||||
|
$
|
26,607
|
|
|
$
|
238
|
|
|
$
|
30,282
|
|
|
$
|
282
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||
Nonaccrual loans
|
$
|
8,556
|
|
|
$
|
8,572
|
|
Troubled debt restructured loans
|
2,135
|
|
|
2,121
|
|
||
Other impaired loans still accruing interest
|
13,208
|
|
|
18,380
|
|
||
Total impaired loans
|
$
|
23,899
|
|
|
$
|
29,073
|
|
|
March 31, 2012
|
||||||||||||||||||||||||||
|
30-59
Days Past
Due
|
|
60-89 Days
Past Due
|
|
Greater
Than 90
Days
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total
Loans
|
|
90 Days
and Still
Accruing
|
||||||||||||||
Commercial
|
$
|
291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
291
|
|
|
$
|
256,563
|
|
|
$
|
256,854
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction, land, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
land development
|
—
|
|
|
—
|
|
|
4,220
|
|
|
4,220
|
|
|
99,786
|
|
|
104,006
|
|
|
—
|
|
|||||||
1-4 family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
first mortgages
|
924
|
|
|
—
|
|
|
809
|
|
|
1,733
|
|
|
60,970
|
|
|
62,703
|
|
|
—
|
|
|||||||
Home equity
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
23,075
|
|
|
23,080
|
|
|
—
|
|
|||||||
Commercial
|
246
|
|
|
—
|
|
|
2,519
|
|
|
2,765
|
|
|
394,282
|
|
|
397,047
|
|
|
—
|
|
|||||||
Consumer and other
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5,511
|
|
|
5,516
|
|
|
—
|
|
|||||||
Total
|
$
|
1,471
|
|
|
$
|
—
|
|
|
$
|
7,548
|
|
|
$
|
9,019
|
|
|
$
|
840,187
|
|
|
$
|
849,206
|
|
|
$
|
—
|
|
Nonaccrual loans included
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
above
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,548
|
|
|
$
|
7,548
|
|
|
$
|
1,008
|
|
|
$
|
8,556
|
|
|
N/A
|
|
|
December 31, 2011
|
||||||||||||||||||||||||||
|
30-59
Days Past
Due
|
|
60-89 Days
Past Due
|
|
Greater
Than 90
Days
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total
Loans
|
|
90 Days
and Still
Accruing
|
||||||||||||||
Commercial
|
$
|
179
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
180
|
|
|
$
|
255,522
|
|
|
$
|
255,702
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction, land, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
land development
|
4,220
|
|
|
—
|
|
|
—
|
|
|
4,220
|
|
|
97,387
|
|
|
101,607
|
|
|
—
|
|
|||||||
1-4 family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
first mortgages
|
703
|
|
|
6
|
|
|
809
|
|
|
1,518
|
|
|
61,700
|
|
|
63,218
|
|
|
—
|
|
|||||||
Home equity
|
47
|
|
|
75
|
|
|
—
|
|
|
122
|
|
|
26,301
|
|
|
26,423
|
|
|
—
|
|
|||||||
Commercial
|
—
|
|
|
60
|
|
|
2,434
|
|
|
2,494
|
|
|
383,643
|
|
|
386,137
|
|
|
—
|
|
|||||||
Consumer and other
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
6,154
|
|
|
6,155
|
|
|
—
|
|
|||||||
Total
|
$
|
5,150
|
|
|
$
|
142
|
|
|
$
|
3,243
|
|
|
$
|
8,535
|
|
|
$
|
830,707
|
|
|
$
|
839,242
|
|
|
$
|
—
|
|
Nonaccrual loans included
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
above
|
$
|
4,235
|
|
|
$
|
60
|
|
|
$
|
3,243
|
|
|
$
|
7,538
|
|
|
$
|
1,034
|
|
|
$
|
8,572
|
|
|
N/A
|
|
|
March 31, 2012
|
||||||||||||||||||
|
Pass
|
|
Watch
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial
|
$
|
233,311
|
|
|
$
|
5,777
|
|
|
$
|
17,766
|
|
|
$
|
—
|
|
|
$
|
256,854
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, land, and land development
|
83,326
|
|
|
454
|
|
|
20,226
|
|
|
—
|
|
|
104,006
|
|
|||||
1-4 family residential first mortgages
|
59,883
|
|
|
724
|
|
|
2,096
|
|
|
—
|
|
|
62,703
|
|
|||||
Home equity
|
22,644
|
|
|
348
|
|
|
88
|
|
|
—
|
|
|
23,080
|
|
|||||
Commercial
|
377,738
|
|
|
6,167
|
|
|
13,142
|
|
|
—
|
|
|
397,047
|
|
|||||
Consumer and other
|
5,427
|
|
|
57
|
|
|
32
|
|
|
—
|
|
|
5,516
|
|
|||||
Total
|
$
|
782,329
|
|
|
$
|
13,527
|
|
|
$
|
53,350
|
|
|
$
|
—
|
|
|
$
|
849,206
|
|
|
December 31, 2011
|
||||||||||||||||||
|
Pass
|
|
Watch
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial
|
$
|
227,088
|
|
|
$
|
10,458
|
|
|
$
|
18,156
|
|
|
$
|
—
|
|
|
$
|
255,702
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, land, and land development
|
78,402
|
|
|
2,087
|
|
|
21,118
|
|
|
—
|
|
|
101,607
|
|
|||||
1-4 family residential first mortgages
|
60,474
|
|
|
664
|
|
|
2,080
|
|
|
—
|
|
|
63,218
|
|
|||||
Home equity
|
25,987
|
|
|
280
|
|
|
156
|
|
|
—
|
|
|
26,423
|
|
|||||
Commercial
|
367,094
|
|
|
6,209
|
|
|
12,834
|
|
|
—
|
|
|
386,137
|
|
|||||
Consumer and other
|
6,029
|
|
|
72
|
|
|
54
|
|
|
—
|
|
|
6,155
|
|
|||||
Total
|
$
|
765,074
|
|
|
$
|
19,770
|
|
|
$
|
54,398
|
|
|
$
|
—
|
|
|
$
|
839,242
|
|
|
Three Months Ended March 31, 2012
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Beginning balance
|
$
|
4,409
|
|
|
$
|
3,572
|
|
|
$
|
1,215
|
|
|
$
|
832
|
|
|
$
|
6,667
|
|
|
$
|
83
|
|
|
$
|
16,778
|
|
Charge-offs
|
—
|
|
|
(42
|
)
|
|
(39
|
)
|
|
(95
|
)
|
|
—
|
|
|
(12
|
)
|
|
(188
|
)
|
|||||||
Recoveries
|
47
|
|
|
—
|
|
|
7
|
|
|
5
|
|
|
—
|
|
|
2
|
|
|
61
|
|
|||||||
Provision
(1)
|
(540
|
)
|
|
604
|
|
|
51
|
|
|
(141
|
)
|
|
30
|
|
|
(4
|
)
|
|
—
|
|
|||||||
Ending balance
|
$
|
3,916
|
|
|
$
|
4,134
|
|
|
$
|
1,234
|
|
|
$
|
601
|
|
|
$
|
6,697
|
|
|
$
|
69
|
|
|
$
|
16,651
|
|
|
Three Months Ended March 31, 2011
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Beginning balance
|
$
|
7,940
|
|
|
$
|
3,787
|
|
|
$
|
647
|
|
|
$
|
658
|
|
|
$
|
5,823
|
|
|
$
|
232
|
|
|
$
|
19,087
|
|
Charge-offs
|
(1,479
|
)
|
|
—
|
|
|
(526
|
)
|
|
—
|
|
|
(248
|
)
|
|
—
|
|
|
(2,253
|
)
|
|||||||
Recoveries
|
153
|
|
|
—
|
|
|
16
|
|
|
5
|
|
|
—
|
|
|
2
|
|
|
176
|
|
|||||||
Provision
(1)
|
(512
|
)
|
|
103
|
|
|
492
|
|
|
54
|
|
|
441
|
|
|
(78
|
)
|
|
500
|
|
|||||||
Ending balance
|
$
|
6,102
|
|
|
$
|
3,890
|
|
|
$
|
629
|
|
|
$
|
717
|
|
|
$
|
6,016
|
|
|
$
|
156
|
|
|
$
|
17,510
|
|
(1)
|
The negative provisions for the various segments are either related to the decline in each of those portfolio segments during the time periods disclosed or improvement in the credit quality factors related to those portfolio segments.
|
|
March 31, 2012
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
2,630
|
|
|
$
|
113
|
|
|
$
|
—
|
|
|
$
|
200
|
|
|
$
|
11
|
|
|
$
|
2,954
|
|
Collectively evaluated for impairment
|
3,916
|
|
|
1,504
|
|
|
1,121
|
|
|
601
|
|
|
6,497
|
|
|
58
|
|
|
13,697
|
|
|||||||
Total
|
$
|
3,916
|
|
|
$
|
4,134
|
|
|
$
|
1,234
|
|
|
$
|
601
|
|
|
$
|
6,697
|
|
|
$
|
69
|
|
|
$
|
16,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 31, 2011
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
100
|
|
|
$
|
2,630
|
|
|
$
|
84
|
|
|
$
|
156
|
|
|
$
|
200
|
|
|
$
|
12
|
|
|
$
|
3,182
|
|
Collectively evaluated for impairment
|
4,309
|
|
|
942
|
|
|
1,131
|
|
|
676
|
|
|
6,467
|
|
|
71
|
|
|
13,596
|
|
|||||||
Total
|
$
|
4,409
|
|
|
$
|
3,572
|
|
|
$
|
1,215
|
|
|
$
|
832
|
|
|
$
|
6,667
|
|
|
$
|
83
|
|
|
$
|
16,778
|
|
|
March 31, 2012
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
834
|
|
|
$
|
16,466
|
|
|
$
|
1,821
|
|
|
$
|
—
|
|
|
$
|
4,746
|
|
|
$
|
32
|
|
|
$
|
23,899
|
|
Collectively evaluated for impairment
|
256,020
|
|
|
87,540
|
|
|
60,882
|
|
|
23,080
|
|
|
392,301
|
|
|
5,484
|
|
|
825,307
|
|
|||||||
Total
|
$
|
256,854
|
|
|
$
|
104,006
|
|
|
$
|
62,703
|
|
|
$
|
23,080
|
|
|
$
|
397,047
|
|
|
$
|
5,516
|
|
|
$
|
849,206
|
|
|
December 31, 2011
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
5,377
|
|
|
$
|
17,359
|
|
|
$
|
1,377
|
|
|
$
|
156
|
|
|
$
|
4,762
|
|
|
$
|
42
|
|
|
$
|
29,073
|
|
Collectively evaluated for impairment
|
250,325
|
|
|
84,248
|
|
|
61,841
|
|
|
26,267
|
|
|
381,375
|
|
|
6,113
|
|
|
810,169
|
|
|||||||
Total
|
$
|
255,702
|
|
|
$
|
101,607
|
|
|
$
|
63,218
|
|
|
$
|
26,423
|
|
|
$
|
386,137
|
|
|
$
|
6,155
|
|
|
$
|
839,242
|
|
|
|
March 31, 2012
|
||||||||||||||
Description
|
|
Total
|
|
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies and corporations
|
|
$
|
17,815
|
|
|
$
|
—
|
|
|
$
|
17,815
|
|
|
$
|
—
|
|
State and political subdivisions
|
|
53,855
|
|
|
—
|
|
|
53,855
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
|
192,450
|
|
|
—
|
|
|
192,450
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
39,387
|
|
|
—
|
|
|
39,387
|
|
|
—
|
|
||||
Trust preferred securities
|
|
1,946
|
|
|
—
|
|
|
757
|
|
|
1,189
|
|
||||
Corporate notes and other investments
|
|
735
|
|
|
—
|
|
|
735
|
|
|
—
|
|
||||
Total
|
|
$
|
306,188
|
|
|
$
|
—
|
|
|
$
|
304,999
|
|
|
$
|
1,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31, 2011
|
||||||||||||||
Description
|
|
Total
|
|
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government agencies and corporations
|
|
$
|
13,003
|
|
|
$
|
—
|
|
|
$
|
13,003
|
|
|
$
|
—
|
|
State and political subdivisions
|
|
52,517
|
|
|
—
|
|
|
52,517
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
|
175,498
|
|
|
—
|
|
|
175,498
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
35,636
|
|
|
—
|
|
|
35,636
|
|
|
—
|
|
||||
Trust preferred securities
|
|
2,011
|
|
|
—
|
|
|
766
|
|
|
1,245
|
|
||||
Corporate notes and other investments
|
|
4,480
|
|
|
3,708
|
|
|
772
|
|
|
—
|
|
||||
Total
|
|
$
|
283,145
|
|
|
$
|
3,708
|
|
|
$
|
278,192
|
|
|
$
|
1,245
|
|
|
Three Months Ended March 31,
|
||||||
|
2012
|
|
2011
|
||||
Beginning balance
|
$
|
1,245
|
|
|
$
|
1,339
|
|
Transfer into level 3
|
—
|
|
|
—
|
|
||
Total gains or (losses):
|
|
|
|
||||
Included in earnings
|
(46
|
)
|
|
—
|
|
||
Included in other comprehensive income
|
(10
|
)
|
|
88
|
|
||
Sale of security
|
—
|
|
|
—
|
|
||
Principal payments
|
—
|
|
|
—
|
|
||
Ending balance
|
$
|
1,189
|
|
|
$
|
1,427
|
|
|
|
March 31, 2012
|
||||||||||||||
Description
|
|
Total
|
|
Quoted Prices
in Active
Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
15,563
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,563
|
|
Other real estate owned
|
|
9,963
|
|
|
—
|
|
|
—
|
|
|
9,963
|
|
||||
Total
|
|
$
|
25,526
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31, 2011
|
||||||||||||||
Description
|
|
Total
|
|
Quoted Prices
in Active
Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans
|
|
$
|
20,513
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,513
|
|
Other real estate owned
|
|
10,967
|
|
|
—
|
|
|
—
|
|
|
10,967
|
|
||||
Total
|
|
$
|
31,480
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,480
|
|
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||||||
|
Fair Value Hierarchy Level
|
|
Carrying Amount
|
|
Approximate Fair Value
|
|
Carrying Amount
|
|
Approximate Fair Value
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
Level 1
|
|
$
|
32,803
|
|
|
$
|
32,803
|
|
|
$
|
35,772
|
|
|
$
|
35,772
|
|
Federal funds sold
|
Level 1
|
|
75,703
|
|
|
75,703
|
|
|
51,332
|
|
|
51,332
|
|
||||
Securities available for sale
|
See previous table
|
|
306,188
|
|
|
306,188
|
|
|
283,145
|
|
|
283,145
|
|
||||
Federal Home Loan Bank stock
|
Level 1
|
|
11,475
|
|
|
11,475
|
|
|
11,352
|
|
|
11,352
|
|
||||
Loans held for sale
|
Level 2
|
|
901
|
|
|
907
|
|
|
4,089
|
|
|
4,139
|
|
||||
Loans, net
|
Level 2
|
|
832,390
|
|
|
842,963
|
|
|
822,181
|
|
|
829,675
|
|
||||
Accrued interest receivable
|
Level 1
|
|
5,871
|
|
|
5,871
|
|
|
4,183
|
|
|
4,183
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
Level 2
|
|
969,030
|
|
|
971,550
|
|
|
957,373
|
|
|
960,607
|
|
||||
Federal funds purchased and securities
|
|
|
|
|
|
|
|
|
|
||||||||
sold under agreements to repurchase
|
Level 1
|
|
93,496
|
|
|
93,496
|
|
|
55,841
|
|
|
55,841
|
|
||||
Accrued interest payable
|
Level 1
|
|
637
|
|
|
637
|
|
|
734
|
|
|
734
|
|
||||
Subordinated notes
|
Level 3
|
|
20,619
|
|
|
11,470
|
|
|
20,619
|
|
|
11,029
|
|
||||
Federal Home Loan Bank advances
|
Level 2
|
|
105,000
|
|
|
115,748
|
|
|
105,000
|
|
|
116,006
|
|
||||
Off-balance-sheet financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commitments to extend credit
|
Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Standby letters of credit
|
Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Three Months Ended March 31,
|
||||||
|
2012
|
|
2011
|
||||
Net income
|
$
|
3,977
|
|
|
$
|
4,530
|
|
Preferred stock dividends
|
—
|
|
|
(450
|
)
|
||
Preferred stock discount accretion
|
—
|
|
|
(121
|
)
|
||
Net income available to common stockholders
|
$
|
3,977
|
|
|
$
|
3,959
|
|
|
|
|
|
||||
Weighted average common shares outstanding
|
17,404
|
|
|
17,404
|
|
||
Common stock warrant*
|
—
|
|
|
—
|
|
||
Diluted weighted average common shares outstanding
|
17,404
|
|
|
17,404
|
|
||
|
|
|
|
|
|
||
Basic earnings per common share
|
$
|
0.23
|
|
|
$
|
0.23
|
|
Diluted earnings per common share
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
Noncredit-related
|
|
|
|
|
||||||
|
Unrealized
|
|
Unrealized
|
|
Accumulated
|
||||||
|
(Losses)
|
|
Gains (Losses)
|
|
Other
|
||||||
|
on Securities
|
|
on Securities
|
|
Comprehensive
|
||||||
|
with OTTI
|
|
without OTTI
|
|
Income (Loss)
|
||||||
Balance, December 31, 2011
|
$
|
(1,940
|
)
|
|
$
|
2,594
|
|
|
$
|
654
|
|
Current period other comprehensive income (loss)
|
(6
|
)
|
|
238
|
|
|
232
|
|
|||
Balance, March 31, 2012
|
$
|
(1,946
|
)
|
|
$
|
2,832
|
|
|
$
|
886
|
|
|
|
|
|
|
|
||||||
Balance, December 31, 2010
|
$
|
(1,943
|
)
|
|
$
|
(704
|
)
|
|
$
|
(2,647
|
)
|
Current period other comprehensive income
|
54
|
|
|
799
|
|
|
853
|
|
|||
Balance, March 31, 2011
|
$
|
(1,889
|
)
|
|
$
|
95
|
|
|
$
|
(1,794
|
)
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
March 31, 2012
|
|
March 31, 2011
|
||||||||||||||||||||
|
Before Tax
|
|
Tax Expense
|
|
Net of Tax
|
|
Before Tax
|
|
Tax Expense
|
|
Net of Tax
|
||||||||||||
|
Amount
|
|
(Benefit)
|
|
Amount
|
|
Amount
|
|
(Benefit)
|
|
Amount
|
||||||||||||
Unrealized noncredit-related gains
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(losses) on securities with OTTI:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized holding gains (losses)
|
$
|
(56
|
)
|
|
$
|
21
|
|
|
$
|
(35
|
)
|
|
$
|
88
|
|
|
$
|
(34
|
)
|
|
$
|
54
|
|
arising during period
|
|
|
|
|
|
||||||||||||||||||
Less: reclassification adjustment
|
46
|
|
|
(17
|
)
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
for net losses realized in net income
|
|
|
|
|
|
||||||||||||||||||
Net unrealized holding gains
|
(10
|
)
|
|
4
|
|
|
(6
|
)
|
|
88
|
|
|
(34
|
)
|
|
54
|
|
||||||
(losses) for securities with other
|
|
|
|
|
|
||||||||||||||||||
than temporary impairment
|
|
|
|
|
|
||||||||||||||||||
Unrealized gains on securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
without OTTI:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized holding gains
|
352
|
|
|
(134
|
)
|
|
218
|
|
|
1,289
|
|
|
(490
|
)
|
|
799
|
|
||||||
arising during the period
|
|
|
|
|
|
||||||||||||||||||
Plus: reclassification adjustment
|
33
|
|
|
(13
|
)
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
for net losses realized in
|
|
|
|
|
|
||||||||||||||||||
net income
|
|
|
|
|
|
||||||||||||||||||
Net unrealized gains on securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
without OTTI
|
385
|
|
|
(147
|
)
|
|
238
|
|
|
1,289
|
|
|
(490
|
)
|
|
799
|
|
||||||
Other comprehensive income
|
$
|
375
|
|
|
$
|
(143
|
)
|
|
$
|
232
|
|
|
$
|
1,377
|
|
|
$
|
(524
|
)
|
|
$
|
853
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||
Allowance for loan losses
|
$
|
6,327
|
|
|
$
|
6,376
|
|
Intangibles
|
1,927
|
|
|
2,004
|
|
||
Investment security impairment
|
51
|
|
|
35
|
|
||
Other real estate owned
|
1,146
|
|
|
1,472
|
|
||
Accrued expenses
|
578
|
|
|
526
|
|
||
State net operating loss carryforward
|
466
|
|
|
442
|
|
||
Capital loss carryforward
|
4,125
|
|
|
4,125
|
|
||
Net deferred loan fees and costs
|
(260
|
)
|
|
(252
|
)
|
||
Net unrealized gains on securities available for sale
|
(544
|
)
|
|
(401
|
)
|
||
Premises and equipment
|
(571
|
)
|
|
(590
|
)
|
||
Loans
|
(758
|
)
|
|
(718
|
)
|
||
Other
|
4
|
|
|
(8
|
)
|
||
Net deferred tax assets before valuation allowance
|
12,491
|
|
|
13,011
|
|
||
Valuation allowance
|
(4,642
|
)
|
|
(4,602
|
)
|
||
Net deferred tax assets
|
$
|
7,849
|
|
|
$
|
8,409
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||
Commitments to extend credit
|
$
|
281,539
|
|
|
$
|
255,167
|
|
Standby letters of credit
|
9,337
|
|
|
9,923
|
|
||
|
$
|
290,876
|
|
|
$
|
265,090
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2012
|
|
2011
|
|
Change
|
|
Change %
|
|||||||
Net income
|
$
|
3,977
|
|
|
$
|
4,530
|
|
|
$
|
(553
|
)
|
|
(12.2
|
)%
|
Net income available to common shareholders
|
3,977
|
|
|
3,959
|
|
|
18
|
|
|
0.5
|
%
|
|||
Average assets
|
1,296,711
|
|
|
1,321,616
|
|
|
(24,905
|
)
|
|
(1.9
|
)%
|
|||
Average stockholders' equity
|
124,800
|
|
|
147,252
|
|
|
(22,452
|
)
|
|
(15.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Return on average assets
|
1.23
|
%
|
|
1.39
|
%
|
|
(0.16
|
)%
|
|
|
||||
Return on average equity
|
12.82
|
%
|
|
12.48
|
%
|
|
0.34
|
%
|
|
|
||||
Texas ratio
|
15.28
|
%
|
|
19.09
|
%
|
|
(3.81
|
)%
|
|
|
||||
Efficiency ratio
|
51.82
|
%
|
|
46.13
|
%
|
|
5.69
|
%
|
|
|
||||
Dividend payout ratio
|
34.98
|
%
|
|
NA
|
|
|
NA
|
|
|
|
||||
Average equity to average assets ratio
|
9.62
|
%
|
|
11.14
|
%
|
|
(1.52
|
)%
|
|
|
||||
Equity to assets ratio - end of period
|
9.56
|
%
|
|
11.64
|
%
|
|
(2.08
|
)%
|
|
|
||||
Tangible common equity ratio - end of period
|
9.56
|
%
|
|
8.95
|
%
|
|
0.61
|
%
|
|
|
•
|
Return on average assets - annualized net income divided by average assets.
|
•
|
Return on average equity - annualized net income divided by average stockholders' equity.
|
•
|
Texas ratio - total nonperforming assets divided by tangible common equity plus the allowance for loan losses.
|
•
|
Efficiency ratio - noninterest expense (excluding other real estate owned expense) divided by noninterest income (excluding net securities gains and net impairment losses) plus tax-equivalent net interest income.
|
•
|
Dividend payout ratio - dividends paid to common stockholders divided by net income available to common stockholders.
|
•
|
Equity to assets ratio - equity divided by assets.
|
•
|
Tangible common equity ratio - common equity less intangible assets divided by tangible assets.
|
•
|
NA - not applicable.
|
Data for the three months ended March 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Average Balance
|
|
Interest Income/Expense
|
|
Yield/Rate
|
|||||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
|
Change
|
|
Change-
%
|
|
2012
|
|
2011
|
|
Change
|
|
Change-
%
|
|
2012
|
|
2011
|
|
Change
|
|||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial
|
$
|
258,216
|
|
|
$
|
286,142
|
|
|
$
|
(27,926
|
)
|
|
(9.76
|
)%
|
|
$
|
3,247
|
|
|
$
|
3,571
|
|
|
$
|
(324
|
)
|
|
(9.07
|
)%
|
|
5.06
|
%
|
|
5.06
|
%
|
|
—
|
%
|
Real estate
|
583,615
|
|
|
566,580
|
|
|
17,035
|
|
|
3.01
|
%
|
|
8,050
|
|
|
8,305
|
|
|
(255
|
)
|
|
(3.07
|
)%
|
|
5.55
|
%
|
|
5.94
|
%
|
|
(0.39
|
)%
|
||||||
Consumer and other
|
5,995
|
|
|
8,389
|
|
|
(2,394
|
)
|
|
(28.54
|
)%
|
|
71
|
|
|
103
|
|
|
(32
|
)
|
|
(31.07
|
)%
|
|
4.76
|
%
|
|
4.98
|
%
|
|
(0.22
|
)%
|
||||||
Total loans
|
847,826
|
|
|
861,111
|
|
|
(13,285
|
)
|
|
(1.54
|
)%
|
|
11,368
|
|
|
11,979
|
|
|
(611
|
)
|
|
(5.10
|
)%
|
|
5.39
|
%
|
|
5.64
|
%
|
|
(0.25
|
)%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Taxable
|
250,658
|
|
|
214,913
|
|
|
35,745
|
|
|
16.63
|
%
|
|
970
|
|
|
1,114
|
|
|
(144
|
)
|
|
(12.93
|
)%
|
|
1.55
|
%
|
|
2.07
|
%
|
|
(0.52
|
)%
|
||||||
Tax-exempt
|
51,987
|
|
|
56,764
|
|
|
(4,777
|
)
|
|
(8.42
|
)%
|
|
760
|
|
|
904
|
|
|
(144
|
)
|
|
(15.93
|
)%
|
|
5.85
|
%
|
|
6.37
|
%
|
|
(0.52
|
)%
|
||||||
Total investment securities
|
302,645
|
|
|
271,677
|
|
|
30,968
|
|
|
11.40
|
%
|
|
1,730
|
|
|
2,018
|
|
|
(288
|
)
|
|
(14.27
|
)%
|
|
2.29
|
%
|
|
2.97
|
%
|
|
(0.68
|
)%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Federal funds sold and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
short-term investments
|
68,966
|
|
|
96,902
|
|
|
(27,936
|
)
|
|
(28.83
|
)%
|
|
42
|
|
|
61
|
|
|
(19
|
)
|
|
(31.15
|
)%
|
|
0.25
|
%
|
|
0.26
|
%
|
|
(0.01
|
)%
|
||||||
Total interest-earning assets
|
$
|
1,219,437
|
|
|
$
|
1,229,690
|
|
|
$
|
(10,253
|
)
|
|
(0.83
|
)%
|
|
13,140
|
|
|
14,058
|
|
|
(918
|
)
|
|
(6.53
|
)%
|
|
4.33
|
%
|
|
4.64
|
%
|
|
(0.31
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest-bearing demand,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
savings and money
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
markets
|
$
|
519,806
|
|
|
$
|
462,049
|
|
|
$
|
57,757
|
|
|
12.50
|
%
|
|
561
|
|
|
704
|
|
|
(143
|
)
|
|
(20.31
|
)%
|
|
0.43
|
%
|
|
0.62
|
%
|
|
(0.19
|
)%
|
|||
Time deposits
|
169,667
|
|
|
269,128
|
|
|
(99,461
|
)
|
|
(36.96
|
)%
|
|
719
|
|
|
1,161
|
|
|
(442
|
)
|
|
(38.07
|
)%
|
|
1.70
|
%
|
|
1.75
|
%
|
|
(0.05
|
)%
|
||||||
Total deposits
|
689,473
|
|
|
731,177
|
|
|
(41,704
|
)
|
|
(5.70
|
)%
|
|
1,280
|
|
|
1,865
|
|
|
(585
|
)
|
|
(31.37
|
)%
|
|
0.75
|
%
|
|
1.03
|
%
|
|
(0.28
|
)%
|
||||||
Other borrowed funds
|
209,066
|
|
|
193,306
|
|
|
15,760
|
|
|
8.15
|
%
|
|
1,248
|
|
|
1,230
|
|
|
18
|
|
|
1.46
|
%
|
|
2.40
|
%
|
|
2.58
|
%
|
|
(0.18
|
)%
|
||||||
Total interest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
liabilities
|
$
|
898,539
|
|
|
$
|
924,483
|
|
|
$
|
(25,944
|
)
|
|
(2.81
|
)%
|
|
2,528
|
|
|
3,095
|
|
|
(567
|
)
|
|
(18.32
|
)%
|
|
1.13
|
%
|
|
1.36
|
%
|
|
(0.23
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Tax-equivalent net interest income
|
|
|
|
|
|
|
|
$
|
10,612
|
|
|
$
|
10,963
|
|
|
$
|
(351
|
)
|
|
(3.20
|
)%
|
|
|
|
|
|
|
|||||||||||
Net interest spread
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.20
|
%
|
|
3.28
|
%
|
|
(0.08
|
)%
|
||||||||||||||
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.50
|
%
|
|
3.62
|
%
|
|
(0.12
|
)%
|
|
Analysis of the Allowance for Loan Losses for the
|
||||||||||
|
Three Months Ended March 31,
|
||||||||||
|
2012
|
|
2011
|
|
Change
|
||||||
Balance at beginning of period
|
$
|
16,778
|
|
|
$
|
19,087
|
|
|
$
|
(2,309
|
)
|
Charge-offs
|
(188
|
)
|
|
(2,253
|
)
|
|
2,065
|
|
|||
Recoveries
|
61
|
|
|
176
|
|
|
(115
|
)
|
|||
Net charge-offs
|
(127
|
)
|
|
(2,077
|
)
|
|
1,950
|
|
|||
Provision for loan losses charged to
|
|
|
|
|
|
||||||
operations
|
—
|
|
|
500
|
|
|
(500
|
)
|
|||
Balance at end of period
|
$
|
16,651
|
|
|
$
|
17,510
|
|
|
$
|
(859
|
)
|
|
|
|
|
|
|
||||||
Average loans outstanding, excluding loans held for sale
|
$
|
846,110
|
|
|
$
|
859,158
|
|
|
|
||
|
|
|
|
|
|
||||||
Ratio of net charge-offs during the period to
|
|
|
|
|
|
||||||
average loans outstanding
|
0.06
|
%
|
|
0.97
|
%
|
|
|
||||
|
|
|
|
|
|
||||||
Ratio of allowance for loan losses to
|
|
|
|
|
|
||||||
average loans outstanding
|
1.97
|
%
|
|
2.04
|
%
|
|
|
|
Three Months Ended March 31,
|
|||||||||||||
Noninterest income:
|
2012
|
|
2011
|
|
Change
|
|
Change %
|
|||||||
Service charges on deposit accounts
|
$
|
730
|
|
|
$
|
750
|
|
|
$
|
(20
|
)
|
|
(2.67
|
)%
|
Debit card usage fees
|
378
|
|
|
347
|
|
|
31
|
|
|
8.93
|
%
|
|||
Trust services
|
204
|
|
|
219
|
|
|
(15
|
)
|
|
(6.85
|
)%
|
|||
Gains and fees on sales of residential mortgages
|
747
|
|
|
184
|
|
|
563
|
|
|
305.98
|
%
|
|||
Increase in cash value of bank-owned life insurance
|
199
|
|
|
221
|
|
|
(22
|
)
|
|
(9.95
|
)%
|
|||
Gain from bank-owned life insurance
|
—
|
|
|
637
|
|
|
(637
|
)
|
|
(100.00
|
)%
|
|||
Net impairment losses
|
(46
|
)
|
|
—
|
|
|
(46
|
)
|
|
N/A
|
|
|||
Realized securities (losses), net
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|
N/A
|
|
|||
Other:
|
|
|
|
|
|
|
|
|||||||
Letter of credit fees
|
13
|
|
|
22
|
|
|
(9
|
)
|
|
(40.91
|
)%
|
|||
Wire transfer fees
|
34
|
|
|
46
|
|
|
(12
|
)
|
|
(26.09
|
)%
|
|||
Gain from sales of other assets
|
—
|
|
|
57
|
|
|
(57
|
)
|
|
(100.00
|
)%
|
|||
All other
|
175
|
|
|
188
|
|
|
(13
|
)
|
|
(6.91
|
)%
|
|||
Total other
|
222
|
|
|
313
|
|
|
(91
|
)
|
|
(29.07
|
)%
|
|||
Total noninterest income
|
$
|
2,401
|
|
|
$
|
2,671
|
|
|
$
|
(270
|
)
|
|
(10.11
|
)%
|
|
Three Months Ended March 31,
|
|||||||||||||
Noninterest expense:
|
2012
|
|
2011
|
|
Change
|
|
Change %
|
|||||||
Salaries and employee benefits
|
$
|
3,636
|
|
|
$
|
3,055
|
|
|
$
|
581
|
|
|
19.02
|
%
|
Occupancy
|
857
|
|
|
816
|
|
|
41
|
|
|
5.02
|
%
|
|||
Data processing
|
501
|
|
|
451
|
|
|
50
|
|
|
11.09
|
%
|
|||
FDIC insurance expense
|
166
|
|
|
549
|
|
|
(383
|
)
|
|
(69.76
|
)%
|
|||
Other real estate owned expense
|
82
|
|
|
187
|
|
|
(105
|
)
|
|
(56.15
|
)%
|
|||
Professional fees
|
292
|
|
|
222
|
|
|
70
|
|
|
31.53
|
%
|
|||
Other:
|
|
|
|
|
|
|
|
|||||||
Marketing
|
56
|
|
|
60
|
|
|
(4
|
)
|
|
(6.67
|
)%
|
|||
Business development
|
118
|
|
|
63
|
|
|
55
|
|
|
87.30
|
%
|
|||
Consulting fees
|
186
|
|
|
41
|
|
|
145
|
|
|
353.66
|
%
|
|||
Director fees
|
103
|
|
|
90
|
|
|
13
|
|
|
14.44
|
%
|
|||
Insurance expense
|
83
|
|
|
92
|
|
|
(9
|
)
|
|
(9.78
|
)%
|
|||
Bank service charges and fees
|
128
|
|
|
129
|
|
|
(1
|
)
|
|
(0.78
|
)%
|
|||
Deposit operations expense
|
19
|
|
|
54
|
|
|
(35
|
)
|
|
(64.81
|
)%
|
|||
Loan related expense
|
53
|
|
|
68
|
|
|
(15
|
)
|
|
(22.06
|
)%
|
|||
Contributions
|
45
|
|
|
38
|
|
|
7
|
|
|
18.42
|
%
|
|||
All other
|
540
|
|
|
561
|
|
|
(21
|
)
|
|
(3.74
|
)%
|
|||
Total other
|
1,331
|
|
|
1,196
|
|
|
135
|
|
|
11.29
|
%
|
|||
Total noninterest expense
|
$
|
6,865
|
|
|
$
|
6,476
|
|
|
$
|
389
|
|
|
6.01
|
%
|
|
March 31, 2012
|
|
December 31, 2011
|
|
Change
|
||||||
Nonaccrual loans
|
$
|
8,556
|
|
|
$
|
8,572
|
|
|
$
|
(16
|
)
|
Loans past due 90 days and still accruing interest
|
—
|
|
|
—
|
|
|
—
|
|
|||
Troubled debt restructured loans
(1)
|
2,135
|
|
|
2,121
|
|
|
14
|
|
|||
Total nonperforming loans
|
10,691
|
|
|
10,693
|
|
|
(2
|
)
|
|||
Other real estate owned
|
9,963
|
|
|
10,967
|
|
|
(1,004
|
)
|
|||
Nonaccrual investment securities
|
1,189
|
|
|
1,245
|
|
|
(56
|
)
|
|||
Total nonperforming assets
|
$
|
21,843
|
|
|
$
|
22,905
|
|
|
$
|
(1,062
|
)
|
|
|
|
|
|
|
|
|
|
|||
Nonperforming loans to total loans
|
1.26
|
%
|
|
1.27
|
%
|
|
(0.01
|
)%
|
|||
Nonperforming assets to total assets
|
1.65
|
%
|
|
1.80
|
%
|
|
(0.15
|
)%
|
(1)
|
While TDR loans are commonly reported by the industry as nonperforming, those not classified in the nonaccrual category are accruing interest due to payment performance. TDR loans on nonaccrual status would be included in the nonaccrual category if there were any, however, there were none at these dates.
|
|
Three months ended March 31, 2012
|
||||||||||||||||||||||||||
|
Nonaccrual
|
|
Loans Past Due 90 Days and Still Accruing Interest
|
|
Troubled Debt Restructured
|
|
Total Nonperforming Loans
|
|
Other Real Estate Owned
|
|
Nonaccrual Investment Securities
|
|
Total Nonperforming Assets
|
||||||||||||||
Balance at beginning
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
of period
|
$
|
8,572
|
|
|
$
|
—
|
|
|
$
|
2,121
|
|
|
$
|
10,693
|
|
|
$
|
10,967
|
|
|
$
|
1,245
|
|
|
$
|
22,905
|
|
Decrease in fair market value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
|||||||
Additions
|
86
|
|
|
—
|
|
|
28
|
|
|
114
|
|
|
114
|
|
|
—
|
|
|
228
|
|
|||||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(970
|
)
|
|
—
|
|
|
(970
|
)
|
|||||||
Subsequent write-downs/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
impairment
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(148
|
)
|
|
(46
|
)
|
|
(209
|
)
|
|||||||
Payments
|
(87
|
)
|
|
—
|
|
|
(14
|
)
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
|||||||
Balance at end of period
|
$
|
8,556
|
|
|
$
|
—
|
|
|
$
|
2,135
|
|
|
$
|
10,691
|
|
|
$
|
9,963
|
|
|
$
|
1,189
|
|
|
$
|
21,843
|
|
|
Three months ended March 31, 2011
|
||||||||||||||||||||||||||
|
Nonaccrual
|
|
Loans Past Due 90 Days and Still Accruing Interest
|
|
Troubled Debt Restructured
|
|
Total Nonperforming Loans
|
|
Other Real Estate Owned
|
|
Nonaccrual Investment Securities
|
|
Total Nonperforming Assets
|
||||||||||||||
Balance at beginning
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
of period
|
$
|
7,945
|
|
|
$
|
198
|
|
|
$
|
4,787
|
|
|
$
|
12,930
|
|
|
$
|
19,193
|
|
|
$
|
1,339
|
|
|
$
|
33,462
|
|
Increase in fair market value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
88
|
|
|||||||
Additions
|
1,505
|
|
|
266
|
|
|
225
|
|
|
1,996
|
|
|
713
|
|
|
—
|
|
|
2,709
|
|
|||||||
Transfers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Nonaccrual to OREO
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
(67
|
)
|
|
67
|
|
|
—
|
|
|
—
|
|
|||||||
Upgrade in classification
|
—
|
|
|
(314
|
)
|
|
(3,444
|
)
|
|
(3,758
|
)
|
|
—
|
|
|
—
|
|
|
(3,758
|
)
|
|||||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,354
|
)
|
|
—
|
|
|
(3,354
|
)
|
|||||||
Subsequent write-downs/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
impairment
|
(1,724
|
)
|
|
—
|
|
|
—
|
|
|
(1,724
|
)
|
|
(470
|
)
|
|
—
|
|
|
(2,194
|
)
|
|||||||
Payments
|
(1,335
|
)
|
|
(150
|
)
|
|
(25
|
)
|
|
(1,510
|
)
|
|
—
|
|
|
—
|
|
|
(1,510
|
)
|
|||||||
Balance at end of period
|
$
|
6,324
|
|
|
$
|
—
|
|
|
$
|
1,543
|
|
|
$
|
7,867
|
|
|
$
|
16,149
|
|
|
$
|
1,427
|
|
|
$
|
25,443
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||
Construction, land development, and other land
|
$
|
9,549
|
|
|
$
|
9,602
|
|
1-4 family residential properties
|
—
|
|
|
145
|
|
||
Multifamily
|
200
|
|
|
270
|
|
||
Commercial properties
|
214
|
|
|
950
|
|
||
|
$
|
9,963
|
|
|
$
|
10,967
|
|
|
Actual
|
|
For Capital
Adequacy Purposes
|
|
To Be Well-
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
As of March 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
157,395
|
|
|
16.44
|
%
|
|
$
|
76,607
|
|
|
8.0
|
%
|
|
n/a
|
|
|
n/a
|
|
|
West Bank
|
141,215
|
|
|
15.26
|
|
|
74,025
|
|
|
8.0
|
|
|
$
|
92,531
|
|
|
10.0
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier I Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
145,367
|
|
|
15.18
|
|
|
38,304
|
|
|
4.0
|
|
|
n/a
|
|
|
n/a
|
|
|||
West Bank
|
129,586
|
|
|
14.00
|
|
|
37,013
|
|
|
4.0
|
|
|
55,519
|
|
|
6.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier I Capital (to Average Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
145,367
|
|
|
11.22
|
|
|
51,810
|
|
|
4.0
|
|
|
n/a
|
|
|
n/a
|
|
|||
West Bank
|
129,586
|
|
|
10.13
|
|
|
51,169
|
|
|
4.0
|
|
|
63,962
|
|
|
5.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
As of December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
154,728
|
|
|
16.27
|
%
|
|
$
|
76,075
|
|
|
8.0
|
%
|
|
n/a
|
|
|
n/a
|
|
|
West Bank
|
138,508
|
|
|
15.09
|
|
|
73,433
|
|
|
8.0
|
|
|
$
|
91,791
|
|
|
10.0
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier I Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
142,781
|
|
|
15.01
|
|
|
38,037
|
|
|
4.0
|
|
|
n/a
|
|
|
n/a
|
|
|||
West Bank
|
126,969
|
|
|
13.83
|
|
|
36,716
|
|
|
4.0
|
|
|
55,075
|
|
|
6.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier I Capital (to Average Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
142,781
|
|
|
11.05
|
|
|
51,695
|
|
|
4.0
|
|
|
n/a
|
|
|
n/a
|
|
|||
West Bank
|
126,969
|
|
|
9.95
|
|
|
51,046
|
|
|
4.0
|
|
|
63,808
|
|
|
5.0
|
|
Exhibits
|
Description
|
10.1
|
Form of Restricted Stock Unit Award Agreement
|
31.1
|
Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document
(1)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
(1)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
(1)
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
(1)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
(1)
|
101.DED
|
XBRL Taxonomy Extension Definitions Linkbase Document
(1)
|
(1)
|
These interactive data files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.
|
West Bancorporation, Inc.
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
April 26, 2012
|
By:
|
/s/ David D. Nelson
|
|
Date
|
|
David D. Nelson
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Chief Executive Officer and President
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April 26, 2012
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By:
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/s/ Douglas R. Gulling
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Date
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Douglas R. Gulling
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Executive Vice President and Chief Financial Officer
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(Principal Accounting Officer)
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(1)
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These interactive data files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.
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Installment
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Restricted Period will end on:
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__% of RSUs
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__% of RSUs
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1.
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I have reviewed this quarterly report on Form 10-Q of West Bancorporation, Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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 that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a.
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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
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b.
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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.
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1.
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I have reviewed this quarterly report on Form 10-Q of West Bancorporation, Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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 that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a.
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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
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b.
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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.
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