|
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Maryland
|
75-3199276
|
(State or Other Jurisdiction
of Incorporation)
|
(I.R.S. Employer
Identification No.)
|
|
|
15W060 North Frontage Road, Burr Ridge, Illinois 60527
|
|
(Address of Principal Executive Offices)
|
|
Title of Each Class:
|
Name of Each Exchange on Which Registered:
|
Common Stock, par value $0.01 per share
|
NASDAQ Global Select Stock Market
|
Large accelerated filer
|
|
¨
|
|
Accelerated filer
|
|
x
|
Non-accelerated filer
|
|
¨
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Smaller reporting company
|
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¨
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Page
Number
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Item 1.
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||
Item 1A.
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Item 1B.
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||
Item 2.
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Item 3.
|
||
Item 4.
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Item 5.
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Item 6.
|
||
Item 7.
|
||
Item 7A.
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||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
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||
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Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
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||
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Item 15.
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||
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ITEM 1.
|
BUSINESS
|
•
|
For residential mortgage exposures, changing the current 50% risk weight for high-quality seasoned mortgages and 100% risk-weight for all other mortgages to risk weights between 35% and 200% depending upon the LTV ratio and other factors (but VA and FHA guaranteed loans would have 0% risk weight).
|
•
|
Applying a 150% risk weight instead of a 100% risk weight for certain high volatility commercial real estate acquisition, development and construction loans.
|
•
|
Assigning a 150% risk weight to exposures (other than residential mortgage exposures) that are 90 days past due.
|
•
|
Providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (currently set at 0%).
|
•
|
Certain increased capital requirements for counterparty credit risk relating to over-the-counter derivatives, repos and securities financing transactions.
|
•
|
the total capital distributions for the applicable calendar year exceed the sum of the institution’s net income for that year to date plus the federal savings bank’s retained net income for the preceding two years;
|
•
|
the institution would not be at least adequately capitalized following the distribution;
|
•
|
the distribution would violate any applicable statute, regulation, agreement or OCC-imposed condition; or
|
•
|
the institution is not eligible for expedited treatment of its filings.
|
•
|
the federal savings bank would be undercapitalized following the distribution;
|
•
|
the proposed capital distribution raises safety and soundness concerns; or
|
•
|
the capital distribution would violate a prohibition contained in any statute, regulation or agreement.
|
•
|
well-capitalized (at least 5% leverage capital, 6% tier 1 risk-based capital and 10% total risk-based capital);
|
•
|
adequately capitalized (at least 4% leverage capital, 4% tier 1 risk-based capital and 8% total risk-based capital);
|
•
|
undercapitalized (less than 3% leverage capital, 4% tier 1 risk-based capital or 8% total risk-based capital);
|
•
|
significantly undercapitalized (less than 3% leverage capital, 3% tier 1 risk-based capital or 6% total risk-based capital); and
|
•
|
critically undercapitalized (less than 2% tangible capital).
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
2011 and 2012 Quarterly Periods
|
|
High
|
|
Low
|
|
Close
|
|
Cash
Dividends
Paid
|
||||||||
Quarter ended December 31, 2012
|
|
$
|
8.85
|
|
|
$
|
6.62
|
|
|
$
|
7.42
|
|
|
$
|
—
|
|
Quarter ended September 30, 2012
|
|
9.24
|
|
|
7.31
|
|
|
8.79
|
|
|
0.01
|
|
||||
Quarter ended June 30, 2012
|
|
7.56
|
|
|
5.66
|
|
|
7.53
|
|
|
0.01
|
|
||||
Quarter ended March 31, 2012
|
|
7.05
|
|
|
5.25
|
|
|
6.62
|
|
|
0.01
|
|
||||
Quarter ended December 31, 2011
|
|
$
|
8.89
|
|
|
$
|
5.26
|
|
|
$
|
5.52
|
|
|
$
|
0.01
|
|
Quarter ended September 30, 2011
|
|
8.62
|
|
|
6.51
|
|
|
6.64
|
|
|
0.07
|
|
||||
Quarter ended June 30, 2011
|
|
9.55
|
|
|
8.10
|
|
|
8.47
|
|
|
0.07
|
|
||||
Quarter ended March 31, 2011
|
|
10.10
|
|
|
8.42
|
|
|
9.19
|
|
|
0.07
|
|
|
12/31/2007
|
|
12/31/2008
|
|
12/31/2009
|
|
12/31/2010
|
|
12/31/2011
|
|
12/31/2012
|
||||||
BankFinancial Corporation
|
100.00
|
|
|
65.68
|
|
|
65.57
|
|
|
66.37
|
|
|
38.47
|
|
|
51.91
|
|
Russell 2000 Index
|
100.00
|
|
|
66.21
|
|
|
84.20
|
|
|
106.82
|
|
|
102.36
|
|
|
119.09
|
|
NASDAQ Bank Index
|
100.00
|
|
|
76.08
|
|
|
62.00
|
|
|
69.37
|
|
|
60.75
|
|
|
70.34
|
|
America’s Community Bankers NASDAQ Index
|
100.00
|
|
|
80.43
|
|
|
63.24
|
|
|
69.08
|
|
|
63.21
|
|
|
72.90
|
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
At and For the Years Ended December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
Selected Financial Condition Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
1,481,192
|
|
|
$
|
1,563,575
|
|
|
$
|
1,530,655
|
|
|
$
|
1,566,963
|
|
|
$
|
1,554,855
|
|
Loans, net
|
1,030,465
|
|
|
1,227,391
|
|
|
1,050,766
|
|
|
1,218,540
|
|
|
1,268,122
|
|
|||||
Loans held-for-sale
|
2,166
|
|
|
1,918
|
|
|
2,716
|
|
|
—
|
|
|
872
|
|
|||||
Securities, at fair value
|
77,832
|
|
|
92,832
|
|
|
120,747
|
|
|
102,126
|
|
|
124,919
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
22,566
|
|
|
22,566
|
|
|
22,566
|
|
|||||
Core deposit intangible
|
3,038
|
|
|
3,671
|
|
|
2,700
|
|
|
4,295
|
|
|
5,985
|
|
|||||
Deposits
|
1,282,351
|
|
|
1,332,552
|
|
|
1,235,377
|
|
|
1,233,395
|
|
|
1,069,855
|
|
|||||
Borrowings
|
5,567
|
|
|
9,322
|
|
|
23,749
|
|
|
50,784
|
|
|
200,350
|
|
|||||
Equity
|
172,890
|
|
|
199,857
|
|
|
253,285
|
|
|
263,603
|
|
|
266,791
|
|
|||||
|
|
||||||||||||||||||
Selected Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
$
|
60,727
|
|
|
$
|
69,708
|
|
|
$
|
64,936
|
|
|
$
|
74,109
|
|
|
$
|
77,960
|
|
Interest expense
|
4,447
|
|
|
6,915
|
|
|
13,186
|
|
|
20,557
|
|
|
25,667
|
|
|||||
Net interest income
|
56,280
|
|
|
62,793
|
|
|
51,750
|
|
|
53,552
|
|
|
52,293
|
|
|||||
Provision for loan losses
|
31,522
|
|
|
22,723
|
|
|
12,083
|
|
|
8,811
|
|
|
5,092
|
|
|||||
Net interest income after provision for loan losses
|
24,758
|
|
|
40,070
|
|
|
39,667
|
|
|
44,741
|
|
|
47,201
|
|
|||||
Noninterest income
|
6,852
|
|
|
7,317
|
|
|
7,128
|
|
|
7,239
|
|
|
10,418
|
|
|||||
Noninterest expense (1)
|
58,719
|
|
|
83,708
|
|
|
53,849
|
|
|
52,731
|
|
|
89,056
|
|
|||||
Loss before income tax expense
|
(27,109
|
)
|
|
(36,321
|
)
|
|
(7,054
|
)
|
|
(751
|
)
|
|
(31,437
|
)
|
|||||
Income tax expense (benefit) (2)
|
—
|
|
|
12,375
|
|
|
(2,747
|
)
|
|
(13
|
)
|
|
(12,048
|
)
|
|||||
Net loss
|
$
|
(27,109
|
)
|
|
$
|
(48,696
|
)
|
|
$
|
(4,307
|
)
|
|
$
|
(738
|
)
|
|
$
|
(19,389
|
)
|
Basic loss per common share
|
$
|
(1.36
|
)
|
|
$
|
(2.46
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.98
|
)
|
Diluted loss per common share
|
$
|
(1.36
|
)
|
|
$
|
(2.46
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.98
|
)
|
|
At and For the Years Ended December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Selected Financial Ratios and Other Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on assets (ratio of net loss to average total assets)
|
(1.78
|
)%
|
|
(3.00
|
)%
|
|
(0.28
|
)%
|
|
(0.05
|
)%
|
|
(1.33
|
)%
|
|||||
Return on equity (ratio of net loss to average equity)
|
(13.36
|
)
|
|
(19.47
|
)
|
|
(1.64
|
)
|
|
(0.28
|
)
|
|
(6.84
|
)
|
|||||
Net interest rate spread
(3)
|
3.86
|
|
|
4.09
|
|
|
3.36
|
|
|
3.36
|
|
|
3.35
|
|
|||||
Net interest margin
(4)
|
3.93
|
|
|
4.20
|
|
|
3.57
|
|
|
3.69
|
|
|
3.88
|
|
|||||
Efficiency ratio
(5)
|
93.01
|
|
|
85.36
|
|
|
91.46
|
|
|
86.74
|
|
|
142.01
|
|
|||||
Noninterest expense to average total assets
(6)
|
3.87
|
|
|
3.69
|
|
|
3.45
|
|
|
3.36
|
|
|
6.09
|
|
|||||
Average interest-earning assets to average interest-bearing liabilities
|
123.17
|
|
|
122.68
|
|
|
122.56
|
|
|
123.43
|
|
|
127.85
|
|
|||||
Dividends declared per share
|
$
|
0.03
|
|
|
$
|
0.22
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
Dividend payout ratio
|
N.M.
|
|
|
N.M.
|
|
|
N.M.
|
|
|
N.M.
|
|
|
N.M.
|
|
|||||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets to total assets
(7)
|
2.59
|
%
|
|
6.31
|
%
|
|
3.94
|
%
|
|
3.42
|
%
|
|
0.94
|
%
|
|||||
Nonperforming loans to total loans
|
2.67
|
|
|
6.05
|
|
|
4.26
|
|
|
4.01
|
|
|
1.07
|
|
|||||
Allowance for loan losses to nonperforming loans
|
64.39
|
|
|
41.66
|
|
|
48.54
|
|
|
37.63
|
|
|
107.97
|
|
|||||
Allowance for loan losses to total loans
|
1.72
|
|
|
2.52
|
|
|
2.07
|
|
|
1.51
|
|
|
1.15
|
|
|||||
Net charge-offs to average loans outstanding
|
3.91
|
|
|
1.04
|
|
|
0.75
|
|
|
0.39
|
|
|
0.11
|
|
|||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity to total assets at end of period
|
11.67
|
%
|
|
12.78
|
%
|
|
16.55
|
%
|
|
16.82
|
%
|
|
17.16
|
%
|
|||||
Average equity to average assets
|
13.36
|
|
|
15.42
|
|
|
16.77
|
|
|
17.02
|
|
|
19.39
|
|
|||||
Tier 1 leverage ratio (Bank only)
|
9.60
|
|
|
10.48
|
|
|
12.48
|
|
|
12.44
|
|
|
12.08
|
|
|||||
Other Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of full-service offices
|
20
|
|
|
20
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|||||
Employees (full-time equivalents)
|
352
|
|
|
357
|
|
|
328
|
|
|
372
|
|
|
393
|
|
(1)
|
Noninterest expense for the year ended December 31, 2011 includes a full goodwill impairment of $23.9 million. Noninterest expense for the years ended December 31, 2009 and 2008 includes $401,000 and $35.9 million, respectively, of impairment loss on securities.
|
(2)
|
Income tax expense for the year ended December 31, 2011 includes a full valuation of the deferred tax asset of $22.6 million.
|
(3)
|
The net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities for the period.
|
(4)
|
The net interest margin represents net interest income divided by average total interest-earning assets for the period.
|
(5)
|
The efficiency ratio represents noninterest expense, less goodwill impairment, divided by the sum of net interest income and noninterest income.
|
(6)
|
The noninterest expense to average total assets ratio represents noninterest expense less goodwill impairment, divided by average total assets.
|
(7)
|
Nonperforming assets include nonperforming loans and other real estate owned.
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Years Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||||
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/Rate
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Interest-earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans
|
$
|
1,155,820
|
|
|
$
|
58,716
|
|
|
5.08
|
%
|
|
$
|
1,261,704
|
|
|
$
|
66,706
|
|
|
5.29
|
%
|
|
$
|
1,140,865
|
|
|
$
|
60,926
|
|
|
5.34
|
%
|
Securities
|
80,030
|
|
|
1,485
|
|
|
1.86
|
|
|
106,060
|
|
|
2,665
|
|
|
2.51
|
|
|
86,032
|
|
|
3,488
|
|
|
4.05
|
|
||||||
Stock in FHLBC
|
10,729
|
|
|
29
|
|
|
0.27
|
|
|
16,243
|
|
|
16
|
|
|
0.10
|
|
|
15,598
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
185,963
|
|
|
497
|
|
|
0.27
|
|
|
112,063
|
|
|
321
|
|
|
0.29
|
|
|
208,742
|
|
|
522
|
|
|
0.25
|
|
||||||
Total interest-earning assets
|
1,432,542
|
|
|
60,727
|
|
|
4.24
|
|
|
1,496,070
|
|
|
69,708
|
|
|
4.66
|
|
|
1,451,237
|
|
|
64,936
|
|
|
4.47
|
|
||||||
Noninterest-earning assets
|
86,191
|
|
|
|
|
|
|
125,937
|
|
|
|
|
|
|
111,314
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
1,518,733
|
|
|
|
|
|
|
$
|
1,622,007
|
|
|
|
|
|
|
$
|
1,562,551
|
|
|
|
|
|
|||||||||
Interest-bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings deposits
|
$
|
144,684
|
|
|
148
|
|
|
0.10
|
|
|
$
|
135,127
|
|
|
211
|
|
|
0.16
|
|
|
$
|
98,338
|
|
|
421
|
|
|
0.43
|
|
|||
Money market accounts
|
346,118
|
|
|
1,262
|
|
|
0.36
|
|
|
350,228
|
|
|
1,593
|
|
|
0.45
|
|
|
347,250
|
|
|
3,252
|
|
|
0.94
|
|
||||||
NOW accounts
|
335,552
|
|
|
416
|
|
|
0.12
|
|
|
323,295
|
|
|
500
|
|
|
0.15
|
|
|
295,720
|
|
|
1,441
|
|
|
0.49
|
|
||||||
Certificates of deposit
|
328,529
|
|
|
2,517
|
|
|
0.77
|
|
|
398,059
|
|
|
4,389
|
|
|
1.10
|
|
|
405,188
|
|
|
7,219
|
|
|
1.78
|
|
||||||
Total deposits
|
1,154,883
|
|
|
4,343
|
|
|
0.38
|
|
|
1,206,709
|
|
|
6,693
|
|
|
0.55
|
|
|
1,146,496
|
|
|
12,333
|
|
|
1.08
|
|
||||||
Borrowings
|
8,162
|
|
|
104
|
|
|
1.27
|
|
|
12,758
|
|
|
222
|
|
|
1.74
|
|
|
37,653
|
|
|
853
|
|
|
2.27
|
|
||||||
Total interest-bearing liabilities
|
1,163,045
|
|
|
4,447
|
|
|
0.38
|
|
|
1,219,467
|
|
|
6,915
|
|
|
0.57
|
|
|
1,184,149
|
|
|
13,186
|
|
|
1.11
|
|
||||||
Noninterest-bearing deposits
|
134,807
|
|
|
|
|
|
|
131,695
|
|
|
|
|
|
|
102,294
|
|
|
|
|
|
||||||||||||
Noninterest-bearing liabilities
|
18,036
|
|
|
|
|
|
|
20,695
|
|
|
|
|
|
|
14,003
|
|
|
|
|
|
||||||||||||
Total liabilities
|
1,315,888
|
|
|
|
|
|
|
1,371,857
|
|
|
|
|
|
|
1,300,446
|
|
|
|
|
|
||||||||||||
Equity
|
202,845
|
|
|
|
|
|
|
250,150
|
|
|
|
|
|
|
262,105
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
1,518,733
|
|
|
|
|
|
|
$
|
1,622,007
|
|
|
|
|
|
|
$
|
1,562,551
|
|
|
|
|
|
|||||||||
Net interest income
|
|
|
$
|
56,280
|
|
|
|
|
|
|
$
|
62,793
|
|
|
|
|
|
|
$
|
51,750
|
|
|
|
|||||||||
Net interest rate spread
(1)
|
|
|
|
|
3.86
|
%
|
|
|
|
|
|
4.09
|
%
|
|
|
|
|
|
3.36
|
%
|
||||||||||||
Net interest-earning assets
(2)
|
$
|
269,497
|
|
|
|
|
|
|
$
|
276,603
|
|
|
|
|
|
|
$
|
267,088
|
|
|
|
|
|
|||||||||
Net interest margin
(3)
|
|
|
|
|
3.93
|
%
|
|
|
|
|
|
4.20
|
%
|
|
|
|
|
|
3.57
|
%
|
||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
123.17
|
%
|
|
|
|
|
|
122.68
|
%
|
|
|
|
|
|
122.56
|
%
|
|
|
|
|
(1)
|
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(2)
|
Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
|
(3)
|
Net interest margin represents net interest income divided by average total interest-earning assets.
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2012 vs. 2011
|
|
2011 vs. 2010
|
||||||||||||||||||||
|
Increase (Decrease) Due to
|
|
|
|
Increase (Decrease) Due to
|
|
|
||||||||||||||||
|
Volume
|
|
Rate
|
|
Total
Increase
(Decrease)
|
|
Volume
|
|
Rate
|
|
Total
Increase
(Decrease)
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
$
|
(5,424
|
)
|
|
$
|
(2,566
|
)
|
|
$
|
(7,990
|
)
|
|
$
|
6,359
|
|
|
$
|
(579
|
)
|
|
$
|
5,780
|
|
Securities
|
(574
|
)
|
|
(606
|
)
|
|
(1,180
|
)
|
|
694
|
|
|
(1,517
|
)
|
|
(823
|
)
|
||||||
Stock in FHLBC
|
(7
|
)
|
|
20
|
|
|
13
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||
Other
|
200
|
|
|
(24
|
)
|
|
176
|
|
|
(274
|
)
|
|
73
|
|
|
(201
|
)
|
||||||
Total interest-earning assets
|
(5,805
|
)
|
|
(3,176
|
)
|
|
(8,981
|
)
|
|
6,779
|
|
|
(2,007
|
)
|
|
4,772
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings deposits
|
16
|
|
|
(79
|
)
|
|
(63
|
)
|
|
120
|
|
|
(330
|
)
|
|
(210
|
)
|
||||||
Money market accounts
|
(18
|
)
|
|
(313
|
)
|
|
(331
|
)
|
|
28
|
|
|
(1,687
|
)
|
|
(1,659
|
)
|
||||||
NOW accounts
|
18
|
|
|
(102
|
)
|
|
(84
|
)
|
|
127
|
|
|
(1,068
|
)
|
|
(941
|
)
|
||||||
Certificates of deposit
|
(689
|
)
|
|
(1,183
|
)
|
|
(1,872
|
)
|
|
(125
|
)
|
|
(2,705
|
)
|
|
(2,830
|
)
|
||||||
Borrowings
|
(67
|
)
|
|
(51
|
)
|
|
(118
|
)
|
|
(466
|
)
|
|
(165
|
)
|
|
(631
|
)
|
||||||
Total interest-bearing liabilities
|
(740
|
)
|
|
(1,728
|
)
|
|
(2,468
|
)
|
|
(316
|
)
|
|
(5,955
|
)
|
|
(6,271
|
)
|
||||||
Change in net interest income
|
$
|
(5,065
|
)
|
|
$
|
(1,448
|
)
|
|
$
|
(6,513
|
)
|
|
$
|
7,095
|
|
|
$
|
3,948
|
|
|
$
|
11,043
|
|
|
Years Ended December 31,
|
|
Change
|
||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012/2011
|
|
2011/2010
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Deposit service charges and fees
|
$
|
2,176
|
|
|
$
|
2,667
|
|
|
$
|
3,020
|
|
|
$
|
(491
|
)
|
|
$
|
(353
|
)
|
Other fee income
|
1,522
|
|
|
1,598
|
|
|
1,868
|
|
|
(76
|
)
|
|
(270
|
)
|
|||||
Insurance commissions and annuities income
|
510
|
|
|
659
|
|
|
775
|
|
|
(149
|
)
|
|
(116
|
)
|
|||||
Gain on sale of loans, net
|
841
|
|
|
340
|
|
|
501
|
|
|
501
|
|
|
(161
|
)
|
|||||
Gain on sales of securities
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
(31
|
)
|
|||||
Loss on disposition of premises and equipment
|
(156
|
)
|
|
(19
|
)
|
|
(19
|
)
|
|
(137
|
)
|
|
—
|
|
|||||
Loan servicing fees
|
486
|
|
|
538
|
|
|
604
|
|
|
(52
|
)
|
|
(66
|
)
|
|||||
Amortization of servicing assets
|
(265
|
)
|
|
(252
|
)
|
|
(549
|
)
|
|
(13
|
)
|
|
297
|
|
|||||
Recovery (impairment) of servicing assets
|
(55
|
)
|
|
(15
|
)
|
|
74
|
|
|
(40
|
)
|
|
(89
|
)
|
|||||
Earnings on bank owned life insurance
|
438
|
|
|
626
|
|
|
430
|
|
|
(188
|
)
|
|
196
|
|
|||||
Trust income
|
733
|
|
|
676
|
|
|
44
|
|
|
57
|
|
|
632
|
|
|||||
Other
|
622
|
|
|
499
|
|
|
349
|
|
|
123
|
|
|
150
|
|
|||||
Total noninterest income
|
$
|
6,852
|
|
|
$
|
7,317
|
|
|
$
|
7,128
|
|
|
$
|
(465
|
)
|
|
$
|
189
|
|
|
Years Ended December 31,
|
|
Change
|
||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012/2011
|
|
2011/2010
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Compensation and benefits
|
$
|
25,751
|
|
|
$
|
26,027
|
|
|
$
|
26,339
|
|
|
$
|
(276
|
)
|
|
$
|
(312
|
)
|
Office occupancy and equipment
|
6,840
|
|
|
7,319
|
|
|
6,380
|
|
|
(479
|
)
|
|
939
|
|
|||||
Advertising and public relations
|
689
|
|
|
890
|
|
|
1,277
|
|
|
(201
|
)
|
|
(387
|
)
|
|||||
Information technology
|
4,638
|
|
|
4,182
|
|
|
3,733
|
|
|
456
|
|
|
449
|
|
|||||
Supplies, telephone and postage
|
1,687
|
|
|
1,698
|
|
|
1,596
|
|
|
(11
|
)
|
|
102
|
|
|||||
Amortization of intangibles
|
633
|
|
|
1,689
|
|
|
1,595
|
|
|
(1,056
|
)
|
|
94
|
|
|||||
Nonperforming asset management
|
5,211
|
|
|
4,431
|
|
|
3,342
|
|
|
780
|
|
|
1,089
|
|
|||||
Loss on sale other real estate owned
|
253
|
|
|
15
|
|
|
415
|
|
|
238
|
|
|
(400
|
)
|
|||||
Valuation adjustments of other real estate owned
|
5,560
|
|
|
3,970
|
|
|
2,392
|
|
|
1,590
|
|
|
1,578
|
|
|||||
Operations of other real estate owned
|
1,678
|
|
|
2,350
|
|
|
1,165
|
|
|
(672
|
)
|
|
1,185
|
|
|||||
FDIC insurance premiums
|
1,779
|
|
|
1,441
|
|
|
2,126
|
|
|
338
|
|
|
(685
|
)
|
|||||
Acquisition costs
|
—
|
|
|
1,761
|
|
|
81
|
|
|
(1,761
|
)
|
|
1,680
|
|
|||||
Goodwill impairment
|
—
|
|
|
23,862
|
|
|
—
|
|
|
(23,862
|
)
|
|
23,862
|
|
|||||
Other
|
4,000
|
|
|
4,073
|
|
|
3,408
|
|
|
(73
|
)
|
|
665
|
|
|||||
Total noninterest expense
|
$
|
58,719
|
|
|
$
|
83,708
|
|
|
$
|
53,849
|
|
|
$
|
(24,989
|
)
|
|
$
|
29,859
|
|
|
At December 31,
|
||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Certificates of deposits
|
$
|
33,456
|
|
|
$
|
33,456
|
|
|
$
|
30,448
|
|
|
$
|
30,448
|
|
|
$
|
27,766
|
|
|
$
|
27,766
|
|
Municipal securities
|
350
|
|
|
369
|
|
|
515
|
|
|
551
|
|
|
675
|
|
|
709
|
|
||||||
Equity mutual fund
|
500
|
|
|
528
|
|
|
500
|
|
|
524
|
|
|
—
|
|
|
—
|
|
||||||
SBA - guaranteed loan participation certificates
|
42
|
|
|
42
|
|
|
47
|
|
|
47
|
|
|
103
|
|
|
105
|
|
||||||
Total
|
34,348
|
|
|
34,395
|
|
|
31,510
|
|
|
31,570
|
|
|
28,544
|
|
|
28,580
|
|
||||||
Mortgage-backed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities - residential
|
32,572
|
|
|
34,233
|
|
|
34,691
|
|
|
36,076
|
|
|
41,034
|
|
|
42,435
|
|
||||||
CMOs and REMICs - residential
|
9,111
|
|
|
9,204
|
|
|
24,837
|
|
|
25,186
|
|
|
48,262
|
|
|
49,732
|
|
||||||
Total mortgage-backed securities
|
41,683
|
|
|
43,437
|
|
|
59,528
|
|
|
61,262
|
|
|
89,296
|
|
|
92,167
|
|
||||||
Total
|
$
|
76,031
|
|
|
$
|
77,832
|
|
|
$
|
91,038
|
|
|
$
|
92,832
|
|
|
$
|
117,840
|
|
|
$
|
120,747
|
|
|
One Year or Less
|
|
More than One Year
through Five Years
|
|
More than Five Years
through Ten Years
|
|
More than Ten Years
|
||||||||||||||||||||
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Certificates of deposit
|
$
|
33,456
|
|
|
0.50
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Municipal securities
|
170
|
|
|
4.45
|
|
|
180
|
|
|
4.60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Equity mutual fund
|
500
|
|
|
1.98
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
SBA guaranteed loan participation certificates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
1.75
|
|
|
—
|
|
|
—
|
|
||||
Total
|
34,126
|
|
|
0.55
|
|
|
180
|
|
|
4.60
|
|
|
42
|
|
|
1.75
|
|
|
—
|
|
|
—
|
|
||||
Mortgage-backed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass-through securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fannie Mae
|
20
|
|
|
4.50
|
|
|
915
|
|
|
5.68
|
|
|
16
|
|
|
2.23
|
|
|
13,757
|
|
|
2.93
|
|
||||
Freddie Mac
|
—
|
|
|
—
|
|
|
46
|
|
|
1.93
|
|
|
308
|
|
|
1.92
|
|
|
2,124
|
|
|
3.54
|
|
||||
Ginnie Mae
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121
|
|
|
1.75
|
|
|
15,266
|
|
|
2.54
|
|
||||
CMOs and REMICs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,111
|
|
|
2.23
|
|
||||
Total
|
20
|
|
|
4.50
|
|
|
961
|
|
|
5.41
|
|
|
445
|
|
|
1.89
|
|
|
40,258
|
|
|
2.66
|
|
||||
Total securities
|
$
|
34,146
|
|
|
0.55
|
%
|
|
$
|
1,141
|
|
|
5.36
|
%
|
|
$
|
487
|
|
|
1.87
|
%
|
|
$
|
40,258
|
|
|
2.66
|
%
|
|
At December 31,
|
|||||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|||||||||||||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
One-to-four family residential
|
$
|
218,596
|
|
|
20.86
|
%
|
|
$
|
272,032
|
|
|
21.62
|
%
|
|
$
|
256,300
|
|
|
23.92
|
%
|
|
$
|
289,623
|
|
|
23.44
|
%
|
|
$
|
312,390
|
|
|
24.39
|
%
|
Multi-family mortgage
|
352,019
|
|
|
33.60
|
|
|
423,615
|
|
|
33.67
|
|
|
296,916
|
|
|
27.71
|
|
|
329,227
|
|
|
26.65
|
|
|
305,318
|
|
|
23.84
|
|
|||||
Nonresidential real estate
|
264,672
|
|
|
25.26
|
|
|
311,641
|
|
|
24.77
|
|
|
281,987
|
|
|
26.31
|
|
|
316,607
|
|
|
25.62
|
|
|
342,583
|
|
|
26.74
|
|
|||||
Construction and land
|
8,552
|
|
|
0.82
|
|
|
19,852
|
|
|
1.58
|
|
|
18,398
|
|
|
1.72
|
|
|
32,577
|
|
|
2.64
|
|
|
50,687
|
|
|
3.96
|
|
|||||
Commercial loans
|
61,388
|
|
|
5.86
|
|
|
93,932
|
|
|
7.46
|
|
|
64,679
|
|
|
6.04
|
|
|
88,067
|
|
|
7.13
|
|
|
92,679
|
|
|
7.23
|
|
|||||
Commercial leases
|
139,783
|
|
|
13.34
|
|
|
134,990
|
|
|
10.73
|
|
|
151,107
|
|
|
14.10
|
|
|
176,821
|
|
|
14.31
|
|
|
174,644
|
|
|
13.63
|
|
|||||
Consumer
|
2,745
|
|
|
0.26
|
|
|
2,147
|
|
|
0.17
|
|
|
2,182
|
|
|
0.20
|
|
|
2,539
|
|
|
0.21
|
|
|
2,655
|
|
|
0.21
|
|
|||||
Total loans
|
1,047,755
|
|
|
100.00
|
%
|
|
1,258,209
|
|
|
100.00
|
%
|
|
1,071,569
|
|
|
100.00
|
%
|
|
1,235,461
|
|
|
100.00
|
%
|
|
1,280,956
|
|
|
100.00
|
%
|
|||||
Net deferred loan origination costs
|
745
|
|
|
|
|
908
|
|
|
|
|
1,377
|
|
|
|
|
1,701
|
|
|
|
|
1,912
|
|
|
|
||||||||||
Allowance for loan losses
|
(18,035
|
)
|
|
|
|
(31,726
|
)
|
|
|
|
(22,180
|
)
|
|
|
|
(18,622
|
)
|
|
|
|
(14,746
|
)
|
|
|
||||||||||
Total loans, net
|
$
|
1,030,465
|
|
|
|
|
$
|
1,227,391
|
|
|
|
|
$
|
1,050,766
|
|
|
|
|
$
|
1,218,540
|
|
|
|
|
$
|
1,268,122
|
|
|
|
|
Within
One Year
|
|
One Year
Through
Five Years
|
|
Beyond
Five Years
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Scheduled Repayments of Loans:
|
|
|
|
|
|
|
|
||||||||
One-to-four family residential
|
$
|
31,802
|
|
|
$
|
73,418
|
|
|
$
|
113,376
|
|
|
$
|
218,596
|
|
Multi-family mortgage
|
45,436
|
|
|
137,227
|
|
|
169,356
|
|
|
352,019
|
|
||||
Nonresidential real estate
|
135,476
|
|
|
117,380
|
|
|
11,816
|
|
|
264,672
|
|
||||
Construction and land
|
7,784
|
|
|
768
|
|
|
—
|
|
|
8,552
|
|
||||
Commercial loans and leases
|
119,551
|
|
|
81,262
|
|
|
358
|
|
|
201,171
|
|
||||
Consumer
|
969
|
|
|
1,244
|
|
|
532
|
|
|
2,745
|
|
||||
Total loans
|
$
|
341,018
|
|
|
$
|
411,299
|
|
|
$
|
295,438
|
|
|
$
|
1,047,755
|
|
|
|
|
|
|
|
|
Total
|
||||||||
Loans Maturing After One Year:
|
|
|
|
|
|
|
|
||||||||
Predetermined (fixed) interest rates
|
|
|
|
|
|
|
$
|
452,125
|
|
||||||
Adjustable interest rates
|
|
|
|
|
|
|
254,612
|
|
|||||||
Total loans
|
|
|
|
|
|
|
$
|
706,737
|
|
|
At December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
One-to-four family residential
|
$
|
7,299
|
|
|
$
|
10,622
|
|
|
$
|
10,059
|
|
|
$
|
11,453
|
|
|
$
|
2,205
|
|
Multi-family mortgage
|
3,517
|
|
|
14,807
|
|
|
13,228
|
|
|
13,961
|
|
|
2,101
|
|
|||||
Nonresidential real estate
|
8,985
|
|
|
29,927
|
|
|
12,428
|
|
|
11,074
|
|
|
2,961
|
|
|||||
Construction and land
|
2,210
|
|
|
3,246
|
|
|
6,139
|
|
|
8,841
|
|
|
5,145
|
|
|||||
Commercial
|
256
|
|
|
2,920
|
|
|
3,766
|
|
|
4,160
|
|
|
1,141
|
|
|||||
Commercial leases
|
—
|
|
|
22
|
|
|
72
|
|
|
—
|
|
|
105
|
|
|||||
Consumer
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
|
22,267
|
|
|
61,547
|
|
|
45,695
|
|
|
49,489
|
|
|
13,658
|
|
|||||
Loans held-for-sale
|
1,752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other real estate owned:
|
|
|
|
|
|
|
|
|
|
||||||||||
One-to-four family residential
|
1,760
|
|
|
5,328
|
|
|
3,015
|
|
|
601
|
|
|
588
|
|
|||||
Multi-family mortgage
|
720
|
|
|
3,655
|
|
|
2,486
|
|
|
976
|
|
|
133
|
|
|||||
Nonresidential real estate
|
3,504
|
|
|
4,905
|
|
|
7,376
|
|
|
1,416
|
|
|
—
|
|
|||||
Land
|
1,323
|
|
|
2,237
|
|
|
1,745
|
|
|
1,091
|
|
|
234
|
|
|||||
|
7,307
|
|
|
16,125
|
|
|
14,622
|
|
|
4,084
|
|
|
955
|
|
|||||
Nonperforming assets (excluding purchased impaired loans and purchased other real estate owned)
|
31,326
|
|
|
77,672
|
|
|
60,317
|
|
|
53,573
|
|
|
14,613
|
|
|||||
Purchased impaired loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
One-to-four family residential
|
380
|
|
|
3,941
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Multi-family mortgage
|
—
|
|
|
1,418
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Nonresidential real estate
|
2,568
|
|
|
3,375
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction and land
|
1,021
|
|
|
4,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
20
|
|
|
1,078
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
3,989
|
|
|
14,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchased other real estate owned:
|
|
|
|
|
|
|
|
|
|
||||||||||
One-to-four family residential
|
320
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Nonresidential real estate
|
462
|
|
|
2,546
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Land
|
2,269
|
|
|
3,482
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
3,051
|
|
|
6,355
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchased impaired loans and other real estate owned
|
7,040
|
|
|
20,955
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets
|
$
|
38,366
|
|
|
$
|
98,627
|
|
|
$
|
60,317
|
|
|
$
|
53,573
|
|
|
$
|
14,613
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans to total loans
|
2.67
|
%
|
|
6.05
|
%
|
|
4.26
|
%
|
|
4.01
|
%
|
|
1.07
|
%
|
|||||
Nonperforming loans to total loans
(1)
|
2.29
|
|
|
4.89
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Nonperforming assets to total assets
|
2.59
|
|
|
6.31
|
|
|
3.94
|
|
|
3.42
|
|
|
0.94
|
|
|||||
Nonperforming assets to total assets
(1)
|
2.11
|
|
|
4.97
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
These asset quality ratios exclude purchased impaired loans and purchased other real estate owned resulting from the Downers Grove National Bank acquisition.
|
•
|
We completed two bulk sales of certain nonperforming assets with a total carrying value of $22.7 million, consisting of $22.0 million of nonperforming loans and $710,000 of OREO. We recorded a pre-tax charges of approximately $11.5 million on the completion of these sales in the fourth quarter 2012.
|
•
|
We designated certain owner-occupied and investor-owned one-to-four family residential loans with a carrying value of $7.5 million as “held for sale” in preparation for a bulk sale. The loans generally involved properties that exhibited significant declines in collateral valuations and/or presented limited resolution options. The designation resulted in a
$5.9 million
pre-tax charge to provision for loan losses in the Consolidated Statement of Operations. On February 28, 2013, we completed the sale of these loans. The completion of this sale is expected to result in pre-tax gain on sale of loans of approximately
$1.3 million
.
|
•
|
We engaged in split-note restructurings with four separate borrowers pursuant to applicable published regulatory and accounting guidance. The loans had an aggregate carrying value of $7.1 million prior to the completion of the restructurings. At the conclusion of the restructurings, $5.2 million remained on accrual status due to these actions and are expected to be eligible for favorable risk-rating classification in 2013 after a period of sustained performance. The remaining $1.9 million was charged against the provision for loan losses for the quarter ended December 31, 2012.
|
•
|
In 2012, we closed
$13.4 million
in OREO sales, or 59.6% of total OREO at December 31, 2011. We also changed our disposition strategy on certain income-producing OREO assets from an ordinary-liquidation pricing model to an aggressive pricing model designed to stimulate market demand, and recorded related valuation adjustments. Our evaluation methodology involved an assessment of the disposition strategy that was likely to provide the highest cash proceeds within a defined period of time.
|
|
|
At and For the Years Ended December 31,
|
||||||
|
|
2012
|
|
2011
|
||||
|
|
(Dollars in thousands)
|
||||||
Beginning balance
|
|
$
|
22,480
|
|
|
$
|
14,622
|
|
New foreclosed properties
|
|
7,035
|
|
|
14,132
|
|
||
Acquired other real estate owned
|
|
—
|
|
|
6,965
|
|
||
Valuation adjustments
|
|
(5,750
|
)
|
|
(4,150
|
)
|
||
Sales
|
|
(13,407
|
)
|
|
(9,089
|
)
|
||
Ending balance
|
|
$
|
10,358
|
|
|
$
|
22,480
|
|
|
December 31, 2012
|
|
December 31, 2011
|
||||||||||||||||||||
|
Balance
|
|
Valuation Allowance
|
|
Net OREO Balance
|
|
Balance
|
|
Valuation Allowance
|
|
Net OREO Balance
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
One–to–four family residential
|
$
|
1,827
|
|
|
$
|
(67
|
)
|
|
$
|
1,760
|
|
|
$
|
5,328
|
|
|
$
|
—
|
|
|
$
|
5,328
|
|
Multi-family mortgage
|
720
|
|
|
—
|
|
|
720
|
|
|
3,655
|
|
|
—
|
|
|
3,655
|
|
||||||
Nonresidential real estate
|
3,883
|
|
|
(379
|
)
|
|
3,504
|
|
|
4,905
|
|
|
—
|
|
|
4,905
|
|
||||||
Land
|
1,557
|
|
|
(234
|
)
|
|
1,323
|
|
|
2,237
|
|
|
—
|
|
|
2,237
|
|
||||||
|
7,987
|
|
|
(680
|
)
|
|
7,307
|
|
|
16,125
|
|
|
—
|
|
|
16,125
|
|
||||||
Acquired other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One–to–four family residential
|
320
|
|
|
—
|
|
|
320
|
|
|
327
|
|
|
—
|
|
|
327
|
|
||||||
Nonresidential real estate
|
565
|
|
|
(103
|
)
|
|
462
|
|
|
2,546
|
|
|
—
|
|
|
2,546
|
|
||||||
Land
|
2,666
|
|
|
(397
|
)
|
|
2,269
|
|
|
3,482
|
|
|
—
|
|
|
3,482
|
|
||||||
|
3,551
|
|
|
(500
|
)
|
|
3,051
|
|
|
6,355
|
|
|
—
|
|
|
6,355
|
|
||||||
Total other real estate owned
|
$
|
11,538
|
|
|
$
|
(1,180
|
)
|
|
$
|
10,358
|
|
|
$
|
22,480
|
|
|
$
|
—
|
|
|
$
|
22,480
|
|
|
|
At and For the Years Ended December 31, 2012
|
||
Beginning of year
|
|
$
|
—
|
|
Additions charged to expense
|
|
1,180
|
|
|
Recoveries credited to expense
|
|
—
|
|
|
Reductions from sales of other real estate owned
|
|
—
|
|
|
Direct write downs
|
|
—
|
|
|
End of year
|
|
$
|
1,180
|
|
|
At December 31,
|
||||||
|
2012
|
|
2011
|
||||
|
(Dollars in thousands)
|
||||||
One-to-four family residential real estate
|
$
|
2,802
|
|
|
$
|
5,619
|
|
Multi-family mortgage
|
1,201
|
|
|
5,783
|
|
||
Nonresidential real estate
|
5,189
|
|
|
2,220
|
|
||
Commercial loans – secured
|
—
|
|
|
238
|
|
||
Troubled debt restructured loans – accrual loans
|
9,192
|
|
|
13,860
|
|
||
One-to-four family residential real estate
|
767
|
|
|
556
|
|
||
Multi-family mortgage
|
938
|
|
|
717
|
|
||
Nonresidential real estate
|
270
|
|
|
2,960
|
|
||
Commercial loans – secured
|
—
|
|
|
—
|
|
||
Consumer loans
|
—
|
|
|
3
|
|
||
Troubled debt restructured loans – nonaccrual loans
|
1,975
|
|
|
4,236
|
|
||
Total troubled debt restructured loans
|
$
|
11,167
|
|
|
$
|
18,096
|
|
•
|
specific allowances established for any impaired residential non-owner occupied mortgage, multi-family mortgage, nonresidential real estate, construction and land, commercial, and commercial lease loans for which the recorded investment in the loan exceeds the measured value of the loan; and
|
•
|
general allowances for loan losses for each loan class based on historical loan loss experience; and adjustments to historical loss experience (general allowances), maintained to cover uncertainties that affect our estimate of probable incurred credit losses for each loan class.
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Balance at beginning of year
|
$
|
31,726
|
|
|
$
|
22,180
|
|
|
$
|
18,622
|
|
|
$
|
14,746
|
|
|
$
|
11,051
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
One-to-four family residential
|
(12,366
|
)
|
|
(5,316
|
)
|
|
(2,292
|
)
|
|
(461
|
)
|
|
(248
|
)
|
|||||
Multi-family mortgage
|
(7,203
|
)
|
|
(3,514
|
)
|
|
(2,385
|
)
|
|
(297
|
)
|
|
(169
|
)
|
|||||
Nonresidential real estate
|
(18,167
|
)
|
|
(698
|
)
|
|
(2,897
|
)
|
|
(1,518
|
)
|
|
(605
|
)
|
|||||
Construction and land
|
(4,311
|
)
|
|
(2,519
|
)
|
|
(525
|
)
|
|
(2,262
|
)
|
|
(115
|
)
|
|||||
Commercial loans
|
(4,960
|
)
|
|
(1,394
|
)
|
|
(1,174
|
)
|
|
(463
|
)
|
|
(130
|
)
|
|||||
Commercial leases
|
(121
|
)
|
|
(72
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|||||
Consumer
|
(103
|
)
|
|
(93
|
)
|
|
(16
|
)
|
|
(42
|
)
|
|
(146
|
)
|
|||||
Total charge-offs
|
(47,231
|
)
|
|
(13,606
|
)
|
|
(9,289
|
)
|
|
(5,065
|
)
|
|
(1,413
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
One-to-four family residential
|
233
|
|
|
51
|
|
|
69
|
|
|
82
|
|
|
1
|
|
|||||
Multi-family mortgage
|
539
|
|
|
125
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Nonresidential real estate
|
328
|
|
|
73
|
|
|
633
|
|
|
36
|
|
|
4
|
|
|||||
Construction and land
|
250
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|||||
Commercial loans
|
626
|
|
|
173
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|||||
Commercial leases
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Consumer
|
42
|
|
|
7
|
|
|
—
|
|
|
3
|
|
|
10
|
|
|||||
Total recoveries
|
2,018
|
|
|
429
|
|
|
764
|
|
|
130
|
|
|
16
|
|
|||||
Net charge-offs
|
(45,213
|
)
|
|
(13,177
|
)
|
|
(8,525
|
)
|
|
(4,935
|
)
|
|
(1,397
|
)
|
|||||
Provision for loan losses
|
31,522
|
|
|
22,723
|
|
|
12,083
|
|
|
8,811
|
|
|
5,092
|
|
|||||
Balance at end of year
|
$
|
18,035
|
|
|
$
|
31,726
|
|
|
$
|
22,180
|
|
|
$
|
18,622
|
|
|
$
|
14,746
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs to average loans outstanding
|
3.91
|
%
|
|
1.04
|
%
|
|
0.75
|
%
|
|
0.39
|
%
|
|
0.11
|
%
|
|||||
Allowance for loan losses to nonaccrual loans
|
64.39
|
|
|
41.66
|
|
|
48.54
|
|
|
37.63
|
|
|
107.97
|
|
|||||
Allowance for loan losses to total loans
|
1.72
|
|
|
2.52
|
|
|
2.07
|
|
|
1.51
|
|
|
1.15
|
|
|
At December 31,
|
|||||||||||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||||
|
Allowance
for Loan
Losses
|
|
Loan
Balances by
Category
|
|
Percent
of Loans
in Each
Category
to Total
Loans
|
|
Allowance
for Loan
Losses
|
|
Loan
Balances by
Category
|
|
Percent
of Loans
in Each
Category
to Total
Loans
|
|
Allowance
for Loan
Losses
|
|
Loan
Balances by
Category
|
|
Percent
of Loans
in Each
Category
to Total
Loans
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
One-to-four family residential
|
$
|
4,726
|
|
|
$
|
218,596
|
|
|
20.86
|
%
|
|
$
|
6,103
|
|
|
$
|
272,032
|
|
|
21.62
|
%
|
|
$
|
3,556
|
|
|
$
|
256,300
|
|
|
23.92
|
%
|
Multi-family mortgage
|
4,580
|
|
|
352,019
|
|
|
33.60
|
|
|
6,082
|
|
|
423,615
|
|
|
33.67
|
|
|
7,032
|
|
|
296,916
|
|
|
27.71
|
|
||||||
Nonresidential real estate
|
5,545
|
|
|
264,672
|
|
|
25.26
|
|
|
13,756
|
|
|
311,641
|
|
|
24.77
|
|
|
5,714
|
|
|
281,987
|
|
|
26.31
|
|
||||||
Construction and land
|
1,031
|
|
|
8,552
|
|
|
0.82
|
|
|
1,684
|
|
|
19,852
|
|
|
1.58
|
|
|
2,461
|
|
|
18,398
|
|
|
1.72
|
|
||||||
Commercial loans
|
1,324
|
|
|
61,388
|
|
|
5.85
|
|
|
3,539
|
|
|
93,932
|
|
|
7.46
|
|
|
2,879
|
|
|
64,679
|
|
|
6.04
|
|
||||||
Commercial leases
|
666
|
|
|
139,783
|
|
|
13.34
|
|
|
504
|
|
|
134,990
|
|
|
10.73
|
|
|
518
|
|
|
151,107
|
|
|
14.10
|
|
||||||
Consumer
|
163
|
|
|
2,745
|
|
|
0.26
|
|
|
58
|
|
|
2,147
|
|
|
0.17
|
|
|
20
|
|
|
2,182
|
|
|
0.20
|
|
||||||
Total
|
$
|
18,035
|
|
|
$
|
1,047,755
|
|
|
100.00
|
%
|
|
$
|
31,726
|
|
|
$
|
1,258,209
|
|
|
100.00
|
%
|
|
$
|
22,180
|
|
|
$
|
1,071,569
|
|
|
100.00
|
%
|
|
At December 31,
|
||||||||||||||||||||
|
2009
|
|
2008
|
||||||||||||||||||
|
Allowance for
Loan Losses
|
|
Loan Balances
by Category
|
|
Percent of
Loans in Each
Category to
Total Loans
|
|
Allowance for
Loan Losses
|
|
Loan Balances
by Category
|
|
Percent of
Loans in Each
Category to
Total Loans
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
One-to-four family residential
|
$
|
3,333
|
|
|
$
|
289,623
|
|
|
23.44
|
%
|
|
$
|
2,040
|
|
|
$
|
312,390
|
|
|
24.39
|
%
|
Multi-family mortgage
|
3,597
|
|
|
329,227
|
|
|
26.65
|
|
|
2,370
|
|
|
305,318
|
|
|
23.84
|
|
||||
Nonresidential real estate
|
5,696
|
|
|
316,607
|
|
|
25.62
|
|
|
4,659
|
|
|
342,583
|
|
|
26.74
|
|
||||
Construction and land
|
1,861
|
|
|
32,577
|
|
|
2.64
|
|
|
1,899
|
|
|
50,687
|
|
|
39.60
|
|
||||
Commercial loans
|
2,520
|
|
|
88,067
|
|
|
7.13
|
|
|
2,058
|
|
|
92,679
|
|
|
72.30
|
|
||||
Commercial leases
|
1,591
|
|
|
176,821
|
|
|
14.31
|
|
|
1,668
|
|
|
174,644
|
|
|
13.63
|
|
||||
Consumer
|
24
|
|
|
2,539
|
|
|
0.21
|
|
|
52
|
|
|
2,655
|
|
|
0.21
|
|
||||
Total
|
$
|
18,622
|
|
|
$
|
1,235,461
|
|
|
100.00
|
%
|
|
$
|
14,746
|
|
|
$
|
1,280,956
|
|
|
100.00
|
%
|
|
Years Ended December 31,
|
||||||||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||||||||||||||||||||
|
Average
Balance
|
|
Percent
|
|
Weighted
Average
Rate
|
|
Average
Balance
|
|
Percent
|
|
Weighted
Average
Rate
|
|
Average
Balance
|
|
Percent
|
|
Weighted
Average
Rate
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Noninterest-bearing demand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Retail
|
$
|
39,171
|
|
|
3.04
|
%
|
|
—
|
%
|
|
$
|
39,319
|
|
|
2.94
|
%
|
|
—
|
%
|
|
$
|
26,308
|
|
|
2.11
|
%
|
|
—
|
%
|
Commercial
|
95,636
|
|
|
7.41
|
|
|
—
|
|
|
92,376
|
|
|
6.90
|
|
|
—
|
|
|
75,986
|
|
|
6.08
|
|
|
—
|
|
|||
Total noninterest-bearing demand
|
134,807
|
|
|
10.45
|
|
|
—
|
|
|
131,695
|
|
|
9.84
|
|
|
—
|
|
|
102,294
|
|
|
8.19
|
|
|
—
|
|
|||
Savings deposits
|
144,684
|
|
|
11.22
|
|
|
0.10
|
|
|
135,127
|
|
|
10.10
|
|
|
0.16
|
|
|
98,338
|
|
|
7.87
|
|
|
0.43
|
|
|||
Money market accounts
|
346,118
|
|
|
26.84
|
|
|
0.36
|
|
|
350,228
|
|
|
26.17
|
|
|
0.45
|
|
|
347,250
|
|
|
27.81
|
|
|
0.94
|
|
|||
Interest-bearing NOW accounts
|
335,552
|
|
|
26.02
|
|
|
0.12
|
|
|
323,295
|
|
|
24.15
|
|
|
0.15
|
|
|
295,720
|
|
|
23.68
|
|
|
0.49
|
|
|||
Certificates of deposit
|
328,529
|
|
|
25.47
|
|
|
0.77
|
|
|
398,059
|
|
|
29.74
|
|
|
1.10
|
|
|
405,188
|
|
|
32.45
|
|
|
1.78
|
|
|||
Total deposits
|
$
|
1,289,690
|
|
|
100.00
|
%
|
|
|
|
$
|
1,338,404
|
|
|
100.00
|
%
|
|
|
|
$
|
1,248,790
|
|
|
100.00
|
%
|
|
|
|
Maturity
|
|
|
||||||||||||||||
|
3 Months or
Less
|
|
Over 3 to 6
Months
|
|
Over 6 to 12
Months
|
|
Over 12
Months
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Certificates of deposit less than $100,000
|
$
|
48,563
|
|
|
$
|
43,366
|
|
|
$
|
56,368
|
|
|
$
|
60,001
|
|
|
$
|
208,298
|
|
Certificates of deposit of $100,000 or more
|
21,555
|
|
|
12,262
|
|
|
30,775
|
|
|
32,363
|
|
|
96,955
|
|
|||||
Total certificates of deposit
|
$
|
70,118
|
|
|
$
|
55,628
|
|
|
$
|
87,143
|
|
|
$
|
92,364
|
|
|
$
|
305,253
|
|
|
At or For the Years Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
|
(Dollars in thousands)
|
||||||||||
Balance at end of year
|
$
|
5,567
|
|
|
$
|
9,322
|
|
|
$
|
23,749
|
|
Average balance during year
|
8,162
|
|
|
12,758
|
|
|
37,653
|
|
|||
Maximum outstanding at any month end
|
10,081
|
|
|
15,550
|
|
|
50,384
|
|
|||
Weighted average interest rate at end of year
|
1.73
|
%
|
|
1.13
|
%
|
|
2.00
|
%
|
|||
Average interest rate during year
|
1.27
|
%
|
|
1.74
|
%
|
|
2.27
|
%
|
|
Estimated Increase in NPV
|
|
Increase in Estimated
Net Interest Income
|
||||||||||
Change in Interest Rates (basis points)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
(dollars in thousands)
|
||||||||||||
+400
|
$
|
10,636
|
|
|
6.93
|
%
|
|
$
|
2,772
|
|
|
6.10
|
%
|
+300
|
7,854
|
|
|
5.12
|
|
|
2,260
|
|
|
4.97
|
|
||
+200
|
5,146
|
|
|
3.36
|
|
|
1,547
|
|
|
3.40
|
|
||
+100
|
2,640
|
|
|
1.72
|
|
|
748
|
|
|
1.65
|
|
||
0
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Actual Ratio
|
|
Minimum required to be Well Capitalized Under Prompt Corrective Action Provisions
|
|
Minimum Capital Ratios Established under Capital Plans
|
|||
December 31, 2012
|
|
|
|
|
|
|||
Total capital (to risk-weighted assets)
|
15.32
|
%
|
|
8.00
|
%
|
|
12.00
|
%
|
Tier 1 (core) capital (to risk-weighted assets)
|
14.07
|
|
|
4.00
|
|
|
8.00
|
|
Tier 1 (core) capital (to adjusted total assets)
|
9.60
|
|
|
4.00
|
|
|
8.00
|
|
December 31, 2011
|
|
|
|
|
|
|||
Total capital (to risk-weighted assets)
|
14.72
|
%
|
|
8.00
|
%
|
|
12.00
|
%
|
Tier 1 (core) capital (to risk-weighted assets)
|
13.45
|
|
|
4.00
|
|
|
8.00
|
|
Tier 1 (core) capital (to adjusted total assets)
|
10.48
|
|
|
4.00
|
|
|
8.00
|
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
|
Less than
One Year
|
|
One to
Three
Years
|
|
Three to
Five Years
|
|
More than
Five Years
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Certificates of deposit
|
$
|
212,889
|
|
|
$
|
79,500
|
|
|
$
|
12,864
|
|
|
$
|
—
|
|
|
$
|
305,253
|
|
Borrowings
|
3,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,000
|
|
|||||
Standby letters of credit
|
1,227
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
1,237
|
|
|||||
Operating leases
|
492
|
|
|
896
|
|
|
914
|
|
|
6,117
|
|
|
8,419
|
|
|||||
Total
|
$
|
217,608
|
|
|
$
|
80,401
|
|
|
$
|
13,783
|
|
|
$
|
6,117
|
|
|
$
|
317,909
|
|
Commitments to extend credit
|
$
|
136,704
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
136,704
|
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
/s/ F. Morgan Gasior
|
|
/s/ Paul A. Cloutier
|
F. Morgan Gasior
|
|
Paul A. Cloutier
|
Chairman of the Board, Chief Executive Officer and President
|
|
Executive Vice President and Chief Financial Officer
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Assets
|
|
|
|
||||
Cash and due from other financial institutions
|
$
|
20,361
|
|
|
$
|
24,247
|
|
Interest-bearing deposits in other financial institutions
|
255,403
|
|
|
96,457
|
|
||
Cash and cash equivalents
|
275,764
|
|
|
120,704
|
|
||
Securities, at fair value
|
77,832
|
|
|
92,832
|
|
||
Loans held-for-sale
|
2,166
|
|
|
1,918
|
|
||
Loans receivable, net of allowance for loan losses:
December 31, 2012, $18,035 and December 31, 2011, $31,726 |
1,030,465
|
|
|
1,227,391
|
|
||
Other real estate owned, net
|
10,358
|
|
|
22,480
|
|
||
Stock in Federal Home Loan Bank, at cost
|
8,412
|
|
|
16,346
|
|
||
Premises and equipment, net
|
38,251
|
|
|
39,155
|
|
||
Accrued interest receivable
|
4,146
|
|
|
5,573
|
|
||
Core deposit intangible
|
3,038
|
|
|
3,671
|
|
||
Bank owned life insurance
|
21,645
|
|
|
21,207
|
|
||
FDIC prepaid expense
|
2,658
|
|
|
4,351
|
|
||
Income tax receivable
|
461
|
|
|
1,809
|
|
||
Other assets
|
5,996
|
|
|
6,138
|
|
||
Total assets
|
$
|
1,481,192
|
|
|
$
|
1,563,575
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Deposits
|
|
|
|
||||
Noninterest-bearing
|
$
|
134,597
|
|
|
$
|
142,084
|
|
Interest-bearing
|
1,147,754
|
|
|
1,190,468
|
|
||
Total deposits
|
1,282,351
|
|
|
1,332,552
|
|
||
Borrowings
|
5,567
|
|
|
9,322
|
|
||
Advance payments by borrowers taxes and insurance
|
10,705
|
|
|
10,976
|
|
||
Accrued interest payable and other liabilities
|
9,679
|
|
|
10,868
|
|
||
Total liabilities
|
1,308,302
|
|
|
1,363,718
|
|
||
Commitments and contingent liabilities
|
|
|
|
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred Stock, $0.01 par value, 25,000,000 shares authorized, none issued or outstanding
|
—
|
|
|
—
|
|
||
Common Stock, $0.01 par value, 100,000,000 shares authorized;
21,072,966 shares issued at December 31, 2012 and 2011 |
211
|
|
|
211
|
|
||
Additional paid-in capital
|
193,590
|
|
|
193,801
|
|
||
Retained earnings (deficit)
|
(9,796
|
)
|
|
17,946
|
|
||
Unearned Employee Stock Ownership Plan shares
|
(12,233
|
)
|
|
(13,212
|
)
|
||
Accumulated other comprehensive income
|
1,118
|
|
|
1,111
|
|
||
Total stockholders’ equity
|
172,890
|
|
|
199,857
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,481,192
|
|
|
$
|
1,563,575
|
|
|
For the years ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Interest and dividend income
|
|
|
|
|
|
||||||
Loans, including fees
|
$
|
58,716
|
|
|
$
|
66,706
|
|
|
$
|
60,926
|
|
Securities
|
1,485
|
|
|
2,665
|
|
|
3,488
|
|
|||
Other
|
526
|
|
|
337
|
|
|
522
|
|
|||
Total interest income
|
60,727
|
|
|
69,708
|
|
|
64,936
|
|
|||
Interest expense
|
|
|
|
|
|
||||||
Deposits
|
4,343
|
|
|
6,693
|
|
|
12,333
|
|
|||
Borrowings
|
104
|
|
|
222
|
|
|
853
|
|
|||
Total interest expense
|
4,447
|
|
|
6,915
|
|
|
13,186
|
|
|||
Net interest income
|
56,280
|
|
|
62,793
|
|
|
51,750
|
|
|||
Provision for loan losses
|
31,522
|
|
|
22,723
|
|
|
12,083
|
|
|||
Net interest income after provision for loan losses
|
24,758
|
|
|
40,070
|
|
|
39,667
|
|
|||
Noninterest income
|
|
|
|
|
|
||||||
Deposit service charges and fees
|
2,176
|
|
|
2,667
|
|
|
3,020
|
|
|||
Other fee income
|
1,522
|
|
|
1,598
|
|
|
1,868
|
|
|||
Insurance commissions and annuities income
|
510
|
|
|
659
|
|
|
775
|
|
|||
Gain on sale of loans, net
|
841
|
|
|
340
|
|
|
501
|
|
|||
Gain on sale of securities
|
—
|
|
|
—
|
|
|
31
|
|
|||
Loss on disposition of premises and equipment, net
|
(156
|
)
|
|
(19
|
)
|
|
(19
|
)
|
|||
Loan servicing fees
|
486
|
|
|
538
|
|
|
604
|
|
|||
Amortization and impairment of servicing assets
|
(320
|
)
|
|
(267
|
)
|
|
(475
|
)
|
|||
Earnings on bank owned life insurance
|
438
|
|
|
626
|
|
|
430
|
|
|||
Trust
|
733
|
|
|
676
|
|
|
44
|
|
|||
Other
|
622
|
|
|
499
|
|
|
349
|
|
|||
Total noninterest income
|
6,852
|
|
|
7,317
|
|
|
7,128
|
|
|||
Noninterest expense
|
|
|
|
|
|
||||||
Compensation and benefits
|
25,751
|
|
|
26,027
|
|
|
26,339
|
|
|||
Office occupancy and equipment
|
6,840
|
|
|
7,319
|
|
|
6,380
|
|
|||
Advertising and public relations
|
689
|
|
|
890
|
|
|
1,277
|
|
|||
Information technology
|
4,638
|
|
|
4,182
|
|
|
3,733
|
|
|||
Supplies, telephone, and postage
|
1,687
|
|
|
1,698
|
|
|
1,596
|
|
|||
Amortization of intangibles
|
633
|
|
|
1,689
|
|
|
1,595
|
|
|||
Nonperforming asset management
|
5,211
|
|
|
4,431
|
|
|
3,342
|
|
|||
Operations of other real estate owned
|
7,491
|
|
|
6,335
|
|
|
3,972
|
|
|||
FDIC insurance premiums
|
1,779
|
|
|
1,441
|
|
|
2,126
|
|
|||
Acquisition costs
|
—
|
|
|
1,761
|
|
|
81
|
|
|||
Goodwill impairment
|
—
|
|
|
23,862
|
|
|
—
|
|
|||
Other
|
4,000
|
|
|
4,073
|
|
|
3,408
|
|
|||
Total noninterest expense
|
58,719
|
|
|
83,708
|
|
|
53,849
|
|
|||
Loss before income taxes
|
(27,109
|
)
|
|
(36,321
|
)
|
|
(7,054
|
)
|
|||
Income tax expense (benefit)
|
—
|
|
|
12,375
|
|
|
(2,747
|
)
|
|||
Net loss
|
$
|
(27,109
|
)
|
|
$
|
(48,696
|
)
|
|
$
|
(4,307
|
)
|
Basic loss per common share
|
$
|
(1.36
|
)
|
|
$
|
(2.46
|
)
|
|
$
|
(0.22
|
)
|
Diluted loss per common share
|
$
|
(1.36
|
)
|
|
$
|
(2.46
|
)
|
|
$
|
(0.22
|
)
|
Weighted average common shares outstanding
|
19,888,517
|
|
|
19,770,023
|
|
|
19,664,109
|
|
|||
Diluted weighted average common shares outstanding
|
19,888,517
|
|
|
19,770,023
|
|
|
19,664,109
|
|
|
For the years ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net loss
|
$
|
(27,109
|
)
|
|
$
|
(48,696
|
)
|
|
$
|
(4,307
|
)
|
Unrealized holding gain (loss) arising during the period
|
7
|
|
|
(1,113
|
)
|
|
(50
|
)
|
|||
Tax effect
|
—
|
|
|
424
|
|
|
19
|
|
|||
Recognized gain from sales during the period
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||
Tax effect
|
—
|
|
|
—
|
|
|
12
|
|
|||
Other comprehensive loss, net of tax effect
|
7
|
|
|
(689
|
)
|
|
(50
|
)
|
|||
|
|
|
|
|
|
||||||
Comprehensive loss
|
$
|
(27,102
|
)
|
|
$
|
(49,385
|
)
|
|
$
|
(4,357
|
)
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Unearned
Employee
Stock
Ownership
Plan
Shares
|
|
Accumulated
Other
Comprehen-sive
Income (Loss)
|
|
Total
|
||||||||||||
Balance at January 1, 2010
|
$
|
214
|
|
|
$
|
195,177
|
|
|
$
|
81,531
|
|
|
$
|
(15,169
|
)
|
|
$
|
1,850
|
|
|
$
|
263,603
|
|
Net loss
|
—
|
|
|
—
|
|
|
(4,307
|
)
|
|
—
|
|
|
—
|
|
|
(4,307
|
)
|
||||||
Other comprehensive income, net of tax effects
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
(50
|
)
|
||||||
Purchase and retirement of common stock (356,411 shares)
|
(3
|
)
|
|
(3,121
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,124
|
)
|
||||||
Nonvested stock awards-stock-based compensation expense
|
—
|
|
|
2,155
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,155
|
|
||||||
Cash dividends declared on common stock ($0.28 per share)
|
—
|
|
|
—
|
|
|
(5,946
|
)
|
|
—
|
|
|
—
|
|
|
(5,946
|
)
|
||||||
ESOP shares earned
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
979
|
|
|
—
|
|
|
954
|
|
||||||
Balance at December 31, 2010
|
$
|
211
|
|
|
$
|
194,186
|
|
|
$
|
71,278
|
|
|
$
|
(14,190
|
)
|
|
$
|
1,800
|
|
|
$
|
253,285
|
|
Net loss
|
—
|
|
|
—
|
|
|
(48,696
|
)
|
|
—
|
|
|
—
|
|
|
(48,696
|
)
|
||||||
Other comprehensive income, net of tax effects
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(689
|
)
|
|
(689
|
)
|
||||||
Nonvested stock awards-stock-based compensation expense
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||
Cash dividends declared on common stock ($0.22 per share)
|
—
|
|
|
—
|
|
|
(4,636
|
)
|
|
—
|
|
|
—
|
|
|
(4,636
|
)
|
||||||
ESOP shares earned
|
—
|
|
|
(438
|
)
|
|
—
|
|
|
978
|
|
|
—
|
|
|
540
|
|
||||||
Balance at December 31, 2011
|
$
|
211
|
|
|
$
|
193,801
|
|
|
$
|
17,946
|
|
|
$
|
(13,212
|
)
|
|
$
|
1,111
|
|
|
$
|
199,857
|
|
Net loss
|
—
|
|
|
—
|
|
|
(27,109
|
)
|
|
—
|
|
|
—
|
|
|
(27,109
|
)
|
||||||
Other comprehensive income, net of tax effects
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
||||||
Nonvested stock awards-stock-based compensation expense
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||||
Cash dividends declared on common stock ($0.03 per share)
|
—
|
|
|
—
|
|
|
(633
|
)
|
|
—
|
|
|
—
|
|
|
(633
|
)
|
||||||
ESOP shares earned
|
—
|
|
|
(252
|
)
|
|
—
|
|
|
979
|
|
|
—
|
|
|
727
|
|
||||||
Balance at December 31, 2012
|
$
|
211
|
|
|
$
|
193,590
|
|
|
$
|
(9,796
|
)
|
|
$
|
(12,233
|
)
|
|
$
|
1,118
|
|
|
$
|
172,890
|
|
|
For the years ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net loss
|
$
|
(27,109
|
)
|
|
$
|
(48,696
|
)
|
|
$
|
(4,307
|
)
|
Adjustments to reconcile to net loss to net cash from operating activities
|
|
|
|
|
|
||||||
Provision for loan losses
|
31,522
|
|
|
22,723
|
|
|
12,083
|
|
|||
Goodwill impairment
|
—
|
|
|
23,862
|
|
|
—
|
|
|||
ESOP shares earned
|
727
|
|
|
540
|
|
|
954
|
|
|||
Stock–based compensation expense
|
41
|
|
|
53
|
|
|
2,155
|
|
|||
Depreciation and amortization
|
4,546
|
|
|
4,559
|
|
|
4,449
|
|
|||
Amortization of premiums and discounts on securities and loans
|
(2,502
|
)
|
|
(1,290
|
)
|
|
(21
|
)
|
|||
Amortization of core deposit and other intangible assets
|
633
|
|
|
1,689
|
|
|
1,588
|
|
|||
Amortization and impairment of servicing assets
|
320
|
|
|
267
|
|
|
475
|
|
|||
Net change in net deferred loan origination costs
|
163
|
|
|
469
|
|
|
324
|
|
|||
Net loss on sale of other real estate owned
|
253
|
|
|
15
|
|
|
415
|
|
|||
Net gain on sale of loans
|
(841
|
)
|
|
(340
|
)
|
|
(501
|
)
|
|||
Net gain on sale of securities
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||
Net loss disposition of premises and equipment
|
156
|
|
|
19
|
|
|
19
|
|
|||
Loans originated for sale
|
(18,639
|
)
|
|
(16,466
|
)
|
|
(19,666
|
)
|
|||
Proceeds from sale of loans
|
20,984
|
|
|
17,604
|
|
|
17,451
|
|
|||
REO valuation adjustments
|
5,559
|
|
|
3,970
|
|
|
2,392
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Deferred income tax
|
—
|
|
|
12,419
|
|
|
(2,742
|
)
|
|||
Accrued interest receivable
|
1,427
|
|
|
172
|
|
|
721
|
|
|||
Earnings on bank owned life insurance
|
(438
|
)
|
|
(626
|
)
|
|
(430
|
)
|
|||
Other assets
|
1,400
|
|
|
(70
|
)
|
|
9,759
|
|
|||
Accrued interest payable and other liabilities
|
(1,189
|
)
|
|
(894
|
)
|
|
(210
|
)
|
|||
Net cash from operating activities
|
17,013
|
|
|
19,979
|
|
|
24,877
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Securities
|
|
|
|
|
|
||||||
Proceeds from maturities
|
30,590
|
|
|
34,101
|
|
|
1,730
|
|
|||
Proceeds from principal repayments
|
19,668
|
|
|
30,692
|
|
|
30,075
|
|
|||
Proceeds from sales of securities
|
—
|
|
|
9,677
|
|
|
31
|
|
|||
Purchases of securities
|
(35,360
|
)
|
|
(37,557
|
)
|
|
(50,489
|
)
|
|||
Loans receivable
|
|
|
|
|
|
||||||
Principal payments on loans receivable
|
518,330
|
|
|
632,918
|
|
|
817,376
|
|
|||
Purchases of loans
|
(5,641
|
)
|
|
(154,174
|
)
|
|
(2,738
|
)
|
|||
Originated for investment
|
(364,596
|
)
|
|
(573,185
|
)
|
|
(676,424
|
)
|
|||
Proceeds from sale of loans
|
10,988
|
|
|
—
|
|
|
—
|
|
|||
Proceeds of redemption of Federal Reserve Bank stock
|
—
|
|
|
155
|
|
|
—
|
|
|||
Proceeds of redemption of Federal Home Loan Bank of Chicago stock
|
7,934
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of other real estate owned
|
13,154
|
|
|
9,074
|
|
|
4,091
|
|
|||
Purchase of premises and equipment, net
|
(2,335
|
)
|
|
(2,370
|
)
|
|
(1,067
|
)
|
|||
Cash acquired in acquisition
|
—
|
|
|
61,619
|
|
|
—
|
|
|||
Net cash from investing activities
|
192,732
|
|
|
10,950
|
|
|
122,585
|
|
|
For the years ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Net change in deposits
|
$
|
(50,026
|
)
|
|
$
|
(115,589
|
)
|
|
$
|
1,982
|
|
Net change in borrowings
|
(3,755
|
)
|
|
(14,427
|
)
|
|
(27,035
|
)
|
|||
Net change in advance payments by borrowers for taxes and insurance
|
(271
|
)
|
|
3,617
|
|
|
(727
|
)
|
|||
Repurchase and retirement of common stock
|
—
|
|
|
—
|
|
|
(3,124
|
)
|
|||
Cash dividends paid on common stock
|
(633
|
)
|
|
(4,636
|
)
|
|
(5,946
|
)
|
|||
Net cash from financing activities
|
(54,685
|
)
|
|
(131,035
|
)
|
|
(34,850
|
)
|
|||
Net change in cash and cash equivalents
|
155,060
|
|
|
(100,106
|
)
|
|
112,612
|
|
|||
Beginning cash and cash equivalents
|
120,704
|
|
|
220,810
|
|
|
108,198
|
|
|||
Ending cash and cash equivalents
|
$
|
275,764
|
|
|
$
|
120,704
|
|
|
$
|
220,810
|
|
|
|
|
|
|
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
4,502
|
|
|
$
|
6,849
|
|
|
$
|
13,575
|
|
Income taxes paid
|
—
|
|
|
3
|
|
|
1,300
|
|
|||
Income taxes refunded
|
1,423
|
|
|
761
|
|
|
11,291
|
|
|||
Loans transferred to other real estate owned
|
7,035
|
|
|
14,132
|
|
|
17,437
|
|
|||
Loans transferred to held for sale
|
12,740
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Supplemental disclosures of noncash investing activities – Acquisition:
|
|
|
|
|
|
||||||
Noncash assets acquired:
|
|
|
|
|
|
||||||
Securities
|
$
|
—
|
|
|
$
|
10,177
|
|
|
$
|
—
|
|
Loans receivable
|
—
|
|
|
118,147
|
|
|
—
|
|
|||
Other real estate owned
|
—
|
|
|
6,965
|
|
|
—
|
|
|||
Stock in Federal Home Loan Bank and Federal Reserve Bank
|
—
|
|
|
903
|
|
|
—
|
|
|||
Goodwill
|
—
|
|
|
1,296
|
|
|
—
|
|
|||
Premises and equipment, net
|
—
|
|
|
7,442
|
|
|
—
|
|
|||
Accrued interest receivable
|
—
|
|
|
355
|
|
|
—
|
|
|||
Core deposit intangible
|
—
|
|
|
2,660
|
|
|
—
|
|
|||
FDIC prepaid expense
|
—
|
|
|
774
|
|
|
—
|
|
|||
Income tax receivable
|
—
|
|
|
774
|
|
|
—
|
|
|||
Deferred taxes, net
|
—
|
|
|
2,662
|
|
|
—
|
|
|||
Other assets
|
—
|
|
|
42
|
|
|
—
|
|
|||
Total noncash items acquired
|
—
|
|
|
152,197
|
|
|
—
|
|
|||
Liabilities assumed:
|
|
|
|
|
|
||||||
Deposits
|
—
|
|
|
212,939
|
|
|
—
|
|
|||
Advance payments by borrowers taxes and insurance
|
—
|
|
|
34
|
|
|
—
|
|
|||
Accrued interest payable and other liabilities
|
—
|
|
|
843
|
|
|
—
|
|
|||
Total liabilities assumed
|
—
|
|
|
213,816
|
|
|
—
|
|
|||
Cash and cash equivalents acquired
|
$
|
—
|
|
|
$
|
61,619
|
|
|
$
|
—
|
|
•
|
specific allowances established for any impaired residential non-owner occupied mortgage, multi-family mortgage, nonresidential real estate, construction and land, commercial, and commercial lease loans for which the recorded investment in the loan exceeds the measured value of the loan; and
|
•
|
general allowances for loan losses for each loan class based on historical loan loss experience; and adjustments to historical loss experience (general allowances), maintained to cover uncertainties that affect our estimate of probable incurred credit losses for each loan class. If the remaining unamortized discount related to a specific pool of purchased performing loans exceeds the estimated credit losses associated with these loans, no general valuation allowance is recorded against the loans.
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net loss available to common stockholders
|
$
|
(27,109
|
)
|
|
$
|
(48,696
|
)
|
|
$
|
(4,307
|
)
|
Average common shares outstanding
|
21,072,966
|
|
|
21,072,966
|
|
|
21,208,600
|
|
|||
Less:
|
|
|
|
|
|
||||||
Unearned ESOP shares
|
(1,182,495
|
)
|
|
(1,294,478
|
)
|
|
(1,441,668
|
)
|
|||
Unvested restricted stock shares
|
(1,954
|
)
|
|
(8,465
|
)
|
|
(102,823
|
)
|
|||
Weighted average common shares outstanding
|
19,888,517
|
|
|
19,770,023
|
|
|
19,664,109
|
|
|||
Add - Net effect of dilutive stock options and unvested restricted stock
|
—
|
|
|
—
|
|
|
—
|
|
|||
Weighted average dilutive common shares outstanding
|
19,888,517
|
|
|
19,770,023
|
|
|
19,664,109
|
|
|||
Basic loss per common share
|
$
|
(1.36
|
)
|
|
$
|
(2.46
|
)
|
|
$
|
(0.22
|
)
|
Diluted loss per common share
|
$
|
(1.36
|
)
|
|
$
|
(2.46
|
)
|
|
$
|
(0.22
|
)
|
Number of antidilutive stock options excluded from the diluted earnings per share calculation
|
—
|
|
|
2,075,553
|
|
|
2,287,553
|
|
|||
Weighted average exercise price of anti-dilutive option shares
|
$
|
—
|
|
|
$
|
16.54
|
|
|
$
|
16.52
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
December 31, 2012
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
33,456
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,456
|
|
Municipal securities
|
350
|
|
|
19
|
|
|
—
|
|
|
369
|
|
||||
Equity mutual fund
|
500
|
|
|
28
|
|
|
—
|
|
|
528
|
|
||||
Mortgage-backed securities - residential
|
32,572
|
|
|
1,661
|
|
|
—
|
|
|
34,233
|
|
||||
Collateralized mortgage obligations - residential
|
9,111
|
|
|
95
|
|
|
(2
|
)
|
|
9,204
|
|
||||
SBA-guaranteed loan participation certificates
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
||||
|
$
|
76,031
|
|
|
$
|
1,803
|
|
|
$
|
(2
|
)
|
|
$
|
77,832
|
|
December 31, 2011
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
30,448
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,448
|
|
Municipal securities
|
515
|
|
|
36
|
|
|
—
|
|
|
551
|
|
||||
Equity mutual fund
|
500
|
|
|
24
|
|
|
—
|
|
|
524
|
|
||||
Mortgage-backed securities - residential
|
34,691
|
|
|
1,385
|
|
|
—
|
|
|
36,076
|
|
||||
Collateralized mortgage obligations - residential
|
24,837
|
|
|
372
|
|
|
(23
|
)
|
|
25,186
|
|
||||
SBA-guaranteed loan participation certificates
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
|
$
|
91,038
|
|
|
$
|
1,817
|
|
|
$
|
(23
|
)
|
|
$
|
92,832
|
|
|
|
|
|
|
|
|
|
|
2012
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
Due in one year or less
|
$
|
33,626
|
|
|
$
|
33,632
|
|
Due after one year through five years
|
180
|
|
|
193
|
|
||
|
33,806
|
|
|
33,825
|
|
||
Equity mutual fund
|
500
|
|
|
528
|
|
||
Mortgage-backed securities - residential
|
32,572
|
|
|
34,233
|
|
||
Collateralized mortgage obligations - residential
|
9,111
|
|
|
9,204
|
|
||
SBA-guaranteed loan participation certificates
|
42
|
|
|
42
|
|
||
Total
|
$
|
76,031
|
|
|
$
|
77,832
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Proceeds
|
$
|
—
|
|
|
$
|
9,677
|
|
|
$
|
31
|
|
Gross gains
|
—
|
|
|
—
|
|
|
31
|
|
|||
Gross losses
|
—
|
|
|
—
|
|
|
—
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations - residential
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,956
|
|
|
$
|
2
|
|
|
$
|
1,956
|
|
|
$
|
2
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations - residential
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,134
|
|
|
$
|
23
|
|
|
$
|
2,134
|
|
|
$
|
23
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
One-to-four family residential real estate loans
|
$
|
218,596
|
|
|
$
|
272,032
|
|
Multi-family mortgage loans
|
352,019
|
|
|
423,615
|
|
||
Nonresidential real estate loans
|
264,672
|
|
|
311,641
|
|
||
Construction and land loans
|
8,552
|
|
|
19,852
|
|
||
Commercial loans
|
61,388
|
|
|
93,932
|
|
||
Commercial leases
|
139,783
|
|
|
134,990
|
|
||
Consumer loans
|
2,745
|
|
|
2,147
|
|
||
Total loans
|
1,047,755
|
|
|
1,258,209
|
|
||
Net deferred loan origination costs
|
745
|
|
|
908
|
|
||
Allowance for loan losses
|
(18,035
|
)
|
|
(31,726
|
)
|
||
Loans, net
|
$
|
1,030,465
|
|
|
$
|
1,227,391
|
|
|
Allowance for loan losses
|
|
Loan Balances
|
||||||||||||||||||||||||||||
|
Individually
evaluated for
impairment
|
|
Purchased impaired loans
|
|
Collectively
evaluated for
impairment
|
|
Total
|
|
Individually
evaluated for
impairment
|
|
Purchased
impaired
loans
|
|
Collectively
evaluated for
impairment
|
|
Total
|
||||||||||||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
One-to-four family residential real estate loans
|
$
|
137
|
|
|
$
|
5
|
|
|
$
|
4,584
|
|
|
$
|
4,726
|
|
|
$
|
5,256
|
|
|
$
|
380
|
|
|
$
|
212,960
|
|
|
$
|
218,596
|
|
Multi-family mortgage loans
|
729
|
|
|
—
|
|
|
3,851
|
|
|
4,580
|
|
|
4,801
|
|
|
—
|
|
|
347,218
|
|
|
352,019
|
|
||||||||
Nonresidential real estate loans
|
401
|
|
|
8
|
|
|
5,136
|
|
|
5,545
|
|
|
11,918
|
|
|
2,568
|
|
|
250,186
|
|
|
264,672
|
|
||||||||
Construction and land loans
|
294
|
|
|
96
|
|
|
641
|
|
|
1,031
|
|
|
2,210
|
|
|
1,021
|
|
|
5,321
|
|
|
8,552
|
|
||||||||
Commercial loans
|
23
|
|
|
1
|
|
|
1,300
|
|
|
1,324
|
|
|
256
|
|
|
20
|
|
|
61,112
|
|
|
61,388
|
|
||||||||
Commercial leases
|
—
|
|
|
—
|
|
|
666
|
|
|
666
|
|
|
—
|
|
|
—
|
|
|
139,783
|
|
|
139,783
|
|
||||||||
Consumer loans
|
—
|
|
|
—
|
|
|
163
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
2,745
|
|
|
2,745
|
|
||||||||
Total
|
$
|
1,584
|
|
|
$
|
110
|
|
|
$
|
16,341
|
|
|
$
|
18,035
|
|
|
$
|
24,441
|
|
|
$
|
3,989
|
|
|
$
|
1,019,325
|
|
|
1,047,755
|
|
|
Net deferred loan origination costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
745
|
|
|||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18,035
|
)
|
|||||||||||||||
Loans, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,030,465
|
|
|
Allowance for loan losses
|
|
Loan Balances
|
||||||||||||||||||||||||
|
Individually
evaluated
for
impairment
|
|
Collectively
evaluated
for
impairment
|
|
Total
|
|
Individually
evaluated
for
impairment
|
|
Purchase impaired loans
|
|
Collectively
evaluated
for
impairment
|
|
Total
|
||||||||||||||
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
One-to-four family residential real estate loans
|
$
|
1,883
|
|
|
$
|
4,220
|
|
|
$
|
6,103
|
|
|
$
|
14,181
|
|
|
$
|
3,941
|
|
|
$
|
253,910
|
|
|
$
|
272,032
|
|
Multi-family mortgage loans
|
1,881
|
|
|
4,201
|
|
|
6,082
|
|
|
20,380
|
|
|
1,418
|
|
|
401,817
|
|
|
423,615
|
|
|||||||
Nonresidential real estate loans
|
8,126
|
|
|
5,630
|
|
|
13,756
|
|
|
32,669
|
|
|
3,375
|
|
|
275,597
|
|
|
311,641
|
|
|||||||
Construction and land loans
|
959
|
|
|
725
|
|
|
1,684
|
|
|
3,263
|
|
|
4,788
|
|
|
11,801
|
|
|
19,852
|
|
|||||||
Commercial loans
|
2,079
|
|
|
1,460
|
|
|
3,539
|
|
|
3,160
|
|
|
1,078
|
|
|
89,694
|
|
|
93,932
|
|
|||||||
Commercial leases
|
22
|
|
|
482
|
|
|
504
|
|
|
22
|
|
|
—
|
|
|
134,968
|
|
|
134,990
|
|
|||||||
Consumer loans
|
3
|
|
|
55
|
|
|
58
|
|
|
3
|
|
|
—
|
|
|
2,144
|
|
|
2,147
|
|
|||||||
Total
|
$
|
14,953
|
|
|
$
|
16,773
|
|
|
$
|
31,726
|
|
|
$
|
73,678
|
|
|
$
|
14,600
|
|
|
$
|
1,169,931
|
|
|
1,258,209
|
|
|
Net deferred loan origination costs
|
|
|
|
|
|
|
|
|
|
|
|
|
908
|
|
|||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
(31,726
|
)
|
|||||||||||||
Loans, net
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,227,391
|
|
|
For the Years ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Beginning balance
|
$
|
31,726
|
|
|
$
|
22,180
|
|
|
$
|
18,622
|
|
Loans charged offs:
|
|
|
|
|
|
||||||
One-to-four family residential real estate loans
|
(12,366
|
)
|
|
(5,316
|
)
|
|
(2,292
|
)
|
|||
Multi-family mortgage loans
|
(7,203
|
)
|
|
(3,514
|
)
|
|
(2,385
|
)
|
|||
Nonresidential real estate loans
|
(18,167
|
)
|
|
(698
|
)
|
|
(2,897
|
)
|
|||
Construction and land loans
|
(4,311
|
)
|
|
(2,519
|
)
|
|
(525
|
)
|
|||
Commercial loans
|
(4,960
|
)
|
|
(1,394
|
)
|
|
(1,174
|
)
|
|||
Commercial leases
|
(121
|
)
|
|
(72
|
)
|
|
—
|
|
|||
Consumer loans
|
(103
|
)
|
|
(93
|
)
|
|
(16
|
)
|
|||
|
(47,231
|
)
|
|
(13,606
|
)
|
|
(9,289
|
)
|
|||
Recoveries:
|
|
|
|
|
|
||||||
One-to-four family residential real estate loans
|
233
|
|
|
51
|
|
|
69
|
|
|||
Multi-family mortgage loans
|
539
|
|
|
125
|
|
|
3
|
|
|||
Nonresidential real estate loans
|
328
|
|
|
73
|
|
|
633
|
|
|||
Construction and land loans
|
250
|
|
|
—
|
|
|
58
|
|
|||
Commercial loans
|
626
|
|
|
173
|
|
|
1
|
|
|||
Commercial leases
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer loans
|
42
|
|
|
7
|
|
|
—
|
|
|||
|
2,018
|
|
|
429
|
|
|
764
|
|
|||
Net charge-off
|
(45,213
|
)
|
|
(13,177
|
)
|
|
(8,525
|
)
|
|||
Provision for loan losses
|
31,522
|
|
|
22,723
|
|
|
12,083
|
|
|||
Ending balance
|
$
|
18,035
|
|
|
$
|
31,726
|
|
|
$
|
22,180
|
|
|
Loan
Balance
|
|
Recorded
Investment
|
|
Partial Charge-off
|
|
Allowance
for Loan
Losses
Allocated
|
|
Average
Investment
in Impaired
Loans
|
|
Interest
Income
Recognized
|
||||||||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-to-four family residential real estate loans
|
$
|
5,250
|
|
|
$
|
4,216
|
|
|
$
|
1,027
|
|
|
$
|
—
|
|
|
$
|
2,814
|
|
|
$
|
149
|
|
One-to-four family residential real estate loans - non-owner occupied
|
567
|
|
|
534
|
|
|
34
|
|
|
—
|
|
|
4,322
|
|
|
90
|
|
||||||
Multi-family mortgage loans
|
2,959
|
|
|
2,106
|
|
|
819
|
|
|
—
|
|
|
9,303
|
|
|
189
|
|
||||||
Wholesale commercial lending
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Nonresidential real estate loans
|
11,850
|
|
|
9,220
|
|
|
2,490
|
|
|
—
|
|
|
6,218
|
|
|
347
|
|
||||||
Land loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
409
|
|
|
—
|
|
||||||
Commercial loans - secured
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|
—
|
|
||||||
Commercial loans - unsecured
|
529
|
|
|
52
|
|
|
477
|
|
|
—
|
|
|
25
|
|
|
21
|
|
||||||
Commercial loans - other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
3
|
|
||||||
|
21,155
|
|
|
16,128
|
|
|
4,847
|
|
|
—
|
|
|
23,251
|
|
|
799
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-to-four family residential real estate loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,500
|
|
|
—
|
|
||||||
One-to-four family residential real estate loans - non-owner occupied
|
626
|
|
|
499
|
|
|
128
|
|
|
137
|
|
|
1,996
|
|
|
13
|
|
||||||
Multi-family mortgage loans
|
3,182
|
|
|
2,645
|
|
|
521
|
|
|
729
|
|
|
6,562
|
|
|
20
|
|
||||||
Nonresidential real estate loans
|
2,825
|
|
|
2,549
|
|
|
266
|
|
|
401
|
|
|
21,077
|
|
|
20
|
|
||||||
Land loans
|
3,812
|
|
|
2,210
|
|
|
1,602
|
|
|
294
|
|
|
2,933
|
|
|
113
|
|
||||||
Commercial loans - secured
|
386
|
|
|
204
|
|
|
182
|
|
|
23
|
|
|
1,849
|
|
|
—
|
|
||||||
Commercial loans - unsecured
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
267
|
|
|
—
|
|
||||||
Non-rated commercial leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||||
Consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||
|
10,831
|
|
|
8,107
|
|
|
2,699
|
|
|
1,584
|
|
|
37,222
|
|
|
166
|
|
||||||
Total
|
$
|
31,986
|
|
|
$
|
24,235
|
|
|
$
|
7,546
|
|
|
$
|
1,584
|
|
|
$
|
60,473
|
|
|
$
|
965
|
|
|
Loan
Balance
|
|
Recorded
Investment
|
|
Partial Charge-off
|
|
Allowance
for Loan
Losses
Allocated
|
|
Average
Investment
in Impaired
Loans
|
|
Interest
Income
Recognized
|
||||||||||||
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-to-four family residential real estate loans
|
$
|
2,329
|
|
|
$
|
2,171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
623
|
|
|
$
|
24
|
|
One-to-four family residential real estate loans - non-owner occupied
|
5,945
|
|
|
5,816
|
|
|
|
|
|
|
2,499
|
|
|
266
|
|
||||||||
Multi-family mortgage loans
|
8,910
|
|
|
8,885
|
|
|
—
|
|
|
—
|
|
|
5,567
|
|
|
378
|
|
||||||
Wholesale commercial lending
|
3,304
|
|
|
3,300
|
|
|
—
|
|
|
—
|
|
|
338
|
|
|
35
|
|
||||||
Nonresidential real estate loans
|
7,304
|
|
|
7,240
|
|
|
—
|
|
|
—
|
|
|
5,977
|
|
|
275
|
|
||||||
Construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
—
|
|
||||||
Land loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
||||||
Commercial loans - secured
|
237
|
|
|
238
|
|
|
—
|
|
|
—
|
|
|
448
|
|
|
45
|
|
||||||
Commercial loans - other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||||
Non-rated commercial leases
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
15
|
|
|||||||
|
28,029
|
|
|
27,650
|
|
|
—
|
|
|
—
|
|
|
15,643
|
|
|
1,079
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-to-four family residential real estate loans
|
3,970
|
|
|
3,962
|
|
|
—
|
|
|
1,055
|
|
|
1,406
|
|
|
2
|
|
||||||
One-to-four family residential real estate loans - non-owner occupied
|
1,937
|
|
|
1,931
|
|
|
—
|
|
|
828
|
|
|
2,962
|
|
|
—
|
|
||||||
Multi-family mortgage loans
|
8,166
|
|
|
8,135
|
|
|
—
|
|
|
1,881
|
|
|
4,307
|
|
|
5
|
|
||||||
Wholesale commercial lending
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,066
|
|
|
—
|
|
||||||
Nonresidential real estate loans
|
25,365
|
|
|
25,210
|
|
|
—
|
|
|
8,126
|
|
|
12,134
|
|
|
75
|
|
||||||
Construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,392
|
|
|
—
|
|
||||||
Land loans
|
3,263
|
|
|
3,251
|
|
|
—
|
|
|
959
|
|
|
2,128
|
|
|
82
|
|
||||||
Commercial loans - secured
|
2,869
|
|
|
2,867
|
|
|
—
|
|
|
2,048
|
|
|
3,253
|
|
|
—
|
|
||||||
Commercial loans - unsecured
|
54
|
|
|
54
|
|
|
—
|
|
|
31
|
|
|
150
|
|
|
—
|
|
||||||
Commercial loans - other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||||
Non-rated commercial leases
|
22
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
98
|
|
|
—
|
|
||||||
Consumer loans
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
|
45,649
|
|
|
45,435
|
|
|
—
|
|
|
14,953
|
|
|
31,918
|
|
|
164
|
|
||||||
Total
|
$
|
73,678
|
|
|
$
|
73,085
|
|
|
$
|
—
|
|
|
$
|
14,953
|
|
|
$
|
47,561
|
|
|
$
|
1,243
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
One–to–four family residential real estate loans
|
$
|
380
|
|
|
$
|
3,941
|
|
Multi-family mortgage loans
|
—
|
|
|
1,418
|
|
||
Nonresidential real estate loans
|
2,568
|
|
|
3,375
|
|
||
Construction loans
|
—
|
|
|
813
|
|
||
Land loans
|
1,021
|
|
|
3,975
|
|
||
Commercial loans
|
20
|
|
|
1,078
|
|
||
Outstanding balance
|
$
|
3,989
|
|
|
$
|
14,600
|
|
Carrying amount, net of allowance
($110 at December 31, 2012, none at December 31, 2011)
|
$
|
3,879
|
|
|
$
|
14,600
|
|
|
For the Years ended December 31,
|
||||||
|
2012
|
|
2011
|
||||
Beginning balance
|
$
|
2,270
|
|
|
$
|
—
|
|
New loans purchased
|
—
|
|
|
3,410
|
|
||
Disposals
|
745
|
|
|
—
|
|
||
Accretion of income
|
1,329
|
|
|
1,140
|
|
||
Ending balance
|
$
|
196
|
|
|
$
|
2,270
|
|
|
Loan Balance
|
|
Recorded
Investment
|
|
Loans Past
Due Over 90
Days, still
accruing
|
||||||
December 31, 2012
|
|
|
|
|
|
||||||
One-to-four family residential real estate loans
|
$
|
7,286
|
|
|
$
|
6,154
|
|
|
$
|
70
|
|
One-to-four family residential real estate loans – non owner occupied
|
1,420
|
|
|
1,145
|
|
|
—
|
|
|||
Multi-family mortgage loans
|
5,246
|
|
|
3,517
|
|
|
242
|
|
|||
Nonresidential real estate loans
|
12,249
|
|
|
8,985
|
|
|
—
|
|
|||
Land loans
|
3,817
|
|
|
2,210
|
|
|
—
|
|
|||
Commercial loans – secured
|
386
|
|
|
204
|
|
|
—
|
|
|||
Commercial loans – unsecured
|
552
|
|
|
52
|
|
|
20
|
|
|||
Non-rated commercial leases
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
$
|
30,956
|
|
|
$
|
22,267
|
|
|
$
|
332
|
|
December 31, 2011
|
|
|
|
|
|
||||||
One-to-four family residential real estate loans
|
$
|
6,199
|
|
|
$
|
6,191
|
|
|
$
|
40
|
|
One-to-four family residential real estate loans – non owner occupied
|
4,510
|
|
|
4,431
|
|
|
—
|
|
|||
Multi-family mortgage loans
|
14,983
|
|
|
14,807
|
|
|
—
|
|
|||
Nonresidential real estate loans
|
30,396
|
|
|
29,927
|
|
|
125
|
|
|||
Land loans
|
3,263
|
|
|
3,246
|
|
|
185
|
|
|||
Commercial loans – secured
|
2,885
|
|
|
2,867
|
|
|
—
|
|
|||
Commercial loans – unsecured
|
55
|
|
|
53
|
|
|
—
|
|
|||
Non-rated commercial leases
|
22
|
|
|
22
|
|
|
—
|
|
|||
Consumer loans
|
3
|
|
|
3
|
|
|
—
|
|
|||
|
$
|
62,316
|
|
|
$
|
61,547
|
|
|
$
|
350
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
Greater
Past Due
|
|
Total Past
Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
One-to-four family residential real estate loans
|
$
|
1,584
|
|
|
$
|
778
|
|
|
$
|
4,463
|
|
|
$
|
6,825
|
|
|
$
|
153,279
|
|
|
$
|
160,104
|
|
One-to-four family residential real estate loans - non-owner occupied
|
855
|
|
|
579
|
|
|
249
|
|
|
1,683
|
|
|
55,906
|
|
|
57,589
|
|
||||||
Multi-family mortgage loans
|
5,393
|
|
|
3,049
|
|
|
3,218
|
|
|
11,660
|
|
|
291,103
|
|
|
302,763
|
|
||||||
Wholesale commercial lending
|
1,481
|
|
|
—
|
|
|
—
|
|
|
1,481
|
|
|
44,342
|
|
|
45,823
|
|
||||||
Nonresidential real estate loans
|
863
|
|
|
398
|
|
|
5,508
|
|
|
6,769
|
|
|
252,368
|
|
|
259,137
|
|
||||||
Land loans
|
702
|
|
|
1,220
|
|
|
630
|
|
|
2,552
|
|
|
4,956
|
|
|
7,508
|
|
||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Secured
|
659
|
|
|
3
|
|
|
204
|
|
|
866
|
|
|
22,336
|
|
|
23,202
|
|
||||||
Unsecured
|
81
|
|
|
78
|
|
|
16
|
|
|
175
|
|
|
5,774
|
|
|
5,949
|
|
||||||
Municipal loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,752
|
|
|
4,752
|
|
||||||
Warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,989
|
|
|
2,989
|
|
||||||
Health care
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,601
|
|
|
17,601
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,977
|
|
|
6,977
|
|
||||||
Commercial leases:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment rated commercial leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,724
|
|
|
102,724
|
|
||||||
Below investment grade
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,294
|
|
|
9,294
|
|
||||||
Non-rated
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,657
|
|
|
25,657
|
|
||||||
Lease pools
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,028
|
|
|
3,028
|
|
||||||
Consumer loans
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
2,741
|
|
|
2,756
|
|
||||||
Total
|
$
|
11,633
|
|
(1)
|
$
|
6,105
|
|
(1)
|
$
|
14,288
|
|
|
$
|
32,026
|
|
|
$
|
1,005,827
|
|
|
$
|
1,037,853
|
|
(1)
|
38%
of the combined 30–89 days past due loans have matured and are in the process of analysis and renewal.
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
Greater
Past Due
|
|
Total Past
Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
Purchased impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-to-four family residential real estate loans - non-owner occupied
|
$
|
327
|
|
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
380
|
|
|
$
|
—
|
|
|
$
|
380
|
|
Multi-family mortgage loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Nonresidential real estate loans
|
—
|
|
|
—
|
|
|
1,125
|
|
|
1,125
|
|
|
1,443
|
|
|
2,568
|
|
||||||
Construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Land loans
|
—
|
|
|
—
|
|
|
1,021
|
|
|
1,021
|
|
|
—
|
|
|
1,021
|
|
||||||
Commercial loans – secured
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|
—
|
|
|
20
|
|
||||||
Commercial loans – unsecured
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
327
|
|
|
$
|
—
|
|
|
$
|
2,219
|
|
|
$
|
2,546
|
|
|
$
|
1,443
|
|
|
$
|
3,989
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than
90 Days Past
Due
|
|
Total Past
Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
One-to-four family residential real estate loans
|
$
|
2,259
|
|
|
$
|
599
|
|
|
$
|
5,640
|
|
|
$
|
8,498
|
|
|
$
|
182,895
|
|
|
$
|
191,393
|
|
One-to-four family residential real estate loans - non-owner occupied
|
2,307
|
|
|
119
|
|
|
2,830
|
|
|
5,256
|
|
|
71,107
|
|
|
76,363
|
|
||||||
Multi-family mortgage loans
|
6,002
|
|
|
4,158
|
|
|
12,575
|
|
|
22,735
|
|
|
328,154
|
|
|
350,889
|
|
||||||
Wholesale commercial lending
|
785
|
|
|
—
|
|
|
—
|
|
|
785
|
|
|
67,051
|
|
|
67,836
|
|
||||||
Nonresidential real estate loans
|
3,381
|
|
|
6,183
|
|
|
17,019
|
|
|
26,583
|
|
|
279,415
|
|
|
305,998
|
|
||||||
Construction loans
|
—
|
|
|
520
|
|
|
—
|
|
|
520
|
|
|
1,336
|
|
|
1,856
|
|
||||||
Land loans
|
5,409
|
|
|
1,152
|
|
|
434
|
|
|
6,995
|
|
|
6,273
|
|
|
13,268
|
|
||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Secured
|
17
|
|
|
—
|
|
|
2,867
|
|
|
2,884
|
|
|
26,193
|
|
|
29,077
|
|
||||||
Unsecured
|
435
|
|
|
3
|
|
|
54
|
|
|
492
|
|
|
9,387
|
|
|
9,879
|
|
||||||
Municipal loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,471
|
|
|
6,471
|
|
||||||
Warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,862
|
|
|
9,862
|
|
||||||
Health care
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,510
|
|
|
29,510
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,425
|
|
|
8,425
|
|
||||||
Commercial leases:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment rated commercial leases
|
294
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|
84,378
|
|
|
84,672
|
|
||||||
Below investment grade
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,263
|
|
|
6,263
|
|
||||||
Non-rated
|
290
|
|
|
—
|
|
|
22
|
|
|
312
|
|
|
37,053
|
|
|
37,365
|
|
||||||
Lease pools
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,823
|
|
|
7,823
|
|
||||||
Consumer loans
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
2,152
|
|
|
2,160
|
|
||||||
Total
|
$
|
21,187
|
|
(1)
|
$
|
12,734
|
|
(1)
|
$
|
41,441
|
|
|
$
|
75,362
|
|
|
$
|
1,163,748
|
|
|
$
|
1,239,110
|
|
(1)
|
46%
of the combined 30–89 days past due loans have matured and are in the process of analysis and renewal.
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
Greater
Past Due
|
|
Total Past
Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
Purchased impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-to-four family residential real estate loans - non-owner occupied
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,835
|
|
|
$
|
2,835
|
|
|
$
|
1,087
|
|
|
$
|
3,922
|
|
Multi-family mortgage loans
|
—
|
|
|
—
|
|
|
1,418
|
|
|
1,418
|
|
|
—
|
|
|
1,418
|
|
||||||
Nonresidential real estate loans
|
996
|
|
|
—
|
|
|
1,681
|
|
|
2,677
|
|
|
688
|
|
|
3,365
|
|
||||||
Construction loans
|
—
|
|
|
—
|
|
|
813
|
|
|
813
|
|
|
—
|
|
|
813
|
|
||||||
Land loans
|
—
|
|
|
—
|
|
|
3,578
|
|
|
3,578
|
|
|
369
|
|
|
3,947
|
|
||||||
Commercial loans – secured
|
—
|
|
|
—
|
|
|
807
|
|
|
807
|
|
|
162
|
|
|
969
|
|
||||||
Commercial loans – unsecured
|
—
|
|
|
—
|
|
|
34
|
|
|
34
|
|
|
—
|
|
|
34
|
|
||||||
Total
|
$
|
996
|
|
|
$
|
—
|
|
|
$
|
11,166
|
|
|
$
|
12,162
|
|
|
$
|
2,306
|
|
|
$
|
14,468
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
One-to-four family residential real estate
|
$
|
2,802
|
|
|
$
|
5,619
|
|
Multi-family mortgage
|
1,201
|
|
|
5,783
|
|
||
Nonresidential real estate
|
5,189
|
|
|
2,220
|
|
||
Commercial loans – secured
|
—
|
|
|
238
|
|
||
Troubled debt restructured loans – accrual loans
|
9,192
|
|
|
13,860
|
|
||
One-to-four family residential real estate
|
767
|
|
|
556
|
|
||
Multi-family mortgage
|
938
|
|
|
717
|
|
||
Nonresidential real estate
|
270
|
|
|
2,960
|
|
||
Consumer loans
|
—
|
|
|
3
|
|
||
Troubled debt restructured loans – nonaccrual loans
|
1,975
|
|
|
4,236
|
|
||
Total troubled debt restructured loans
|
$
|
11,167
|
|
|
$
|
18,096
|
|
|
For the years ended December 31,
|
||||||||||||||||||||
|
2012
|
|
2011
|
||||||||||||||||||
|
Number
of loans
|
|
Pre-
Modification
outstanding
recorded
investment
|
|
Post-
Modification
outstanding
recorded
investment
|
|
Number
of loans
|
|
Pre-
Modification
outstanding
recorded
investment
|
|
Post-
Modification
outstanding
recorded
investment
|
||||||||||
One-to-four family residential real estate
|
24
|
|
|
$
|
2,091
|
|
|
$
|
2,091
|
|
|
28
|
|
|
$
|
2,863
|
|
|
$
|
2,535
|
|
One-to-four family residential real estate - non-owner occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
9,178
|
|
|
7,550
|
|
||||
Multi-family mortgage
|
1
|
|
|
700
|
|
|
503
|
|
|
4
|
|
|
2,091
|
|
|
2,070
|
|
||||
Wholesale commercial lending
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2,762
|
|
|
2,762
|
|
||||
Nonresidential real estate
|
7
|
|
|
7,147
|
|
|
5,062
|
|
|
3
|
|
|
1,283
|
|
|
1,033
|
|
||||
Commercial loans - secured
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
277
|
|
|
238
|
|
||||
Consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Total
|
32
|
|
|
$
|
9,938
|
|
|
$
|
7,656
|
|
|
43
|
|
|
$
|
18,457
|
|
|
$
|
16,191
|
|
|
Due to
reduction in
interest rate
|
|
Due to
extension of
maturity date
|
|
Due to
permanent
reduction in
recorded
investment
|
|
Total
|
||||||||
For the year ended December 31, 2012
|
|
|
|
|
|
|
|
||||||||
One-to-four family residential real estate
|
$
|
508
|
|
|
$
|
1,583
|
|
|
$
|
—
|
|
|
$
|
2,091
|
|
Multi-family mortgage
|
—
|
|
|
—
|
|
|
503
|
|
|
503
|
|
||||
Nonresidential real estate
|
—
|
|
|
—
|
|
|
5,062
|
|
|
5,062
|
|
||||
Total
|
$
|
508
|
|
|
$
|
1,583
|
|
|
$
|
5,565
|
|
|
$
|
7,656
|
|
For the year ended December 31, 2011
|
|
|
|
|
|
|
|
||||||||
One-to-four family residential real estate
|
$
|
110
|
|
|
$
|
2,394
|
|
|
$
|
30
|
|
|
$
|
2,534
|
|
One-to-four family residential real estate - non-owner occupied
|
—
|
|
|
1,556
|
|
|
5,994
|
|
|
7,550
|
|
||||
Multi-family mortgage
|
2,070
|
|
|
—
|
|
|
—
|
|
|
2,070
|
|
||||
Wholesale commercial lending
|
—
|
|
|
—
|
|
|
2,763
|
|
|
2,763
|
|
||||
Nonresidential real estate
|
—
|
|
|
—
|
|
|
1,033
|
|
|
1,033
|
|
||||
Commercial loans - secured
|
—
|
|
|
238
|
|
|
—
|
|
|
238
|
|
||||
Consumer loans
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Total
|
$
|
2,180
|
|
|
$
|
4,188
|
|
|
$
|
9,823
|
|
|
$
|
16,191
|
|
|
2012
|
|
2011
|
||||||||||
|
Number
of loans
|
|
Recorded
investment
|
|
Number
of loans
|
|
Recorded
investment
|
||||||
One-to-four family residential real estate
|
5
|
|
|
$
|
864
|
|
|
2
|
|
|
$
|
4,004
|
|
Nonresidential real estate
|
4
|
|
|
3,308
|
|
|
2
|
|
|
1,635
|
|
||
Total
|
9
|
|
|
$
|
4,172
|
|
|
4
|
|
|
$
|
5,639
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Nonaccrual
|
|
Total
|
||||||||||
One-to-four family residential real estate loans
|
$
|
152,711
|
|
|
$
|
—
|
|
|
$
|
1,428
|
|
|
$
|
6,158
|
|
|
$
|
160,297
|
|
One-to-four family residential real estate loans non-owner occupied
|
51,849
|
|
|
1,486
|
|
|
3,440
|
|
|
1,524
|
|
|
58,299
|
|
|||||
Multi-family mortgage loans
|
275,338
|
|
|
6,139
|
|
|
21,128
|
|
|
3,559
|
|
|
306,164
|
|
|||||
Wholesale commercial lending
|
44,074
|
|
|
—
|
|
|
1,781
|
|
|
—
|
|
|
45,855
|
|
|||||
Nonresidential real estate loans
|
199,802
|
|
|
30,898
|
|
|
22,345
|
|
|
11,627
|
|
|
264,672
|
|
|||||
Construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Land loans
|
2,769
|
|
|
158
|
|
|
2,394
|
|
|
3,231
|
|
|
8,552
|
|
|||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Secured
|
19,579
|
|
|
2,418
|
|
|
988
|
|
|
225
|
|
|
23,210
|
|
|||||
Unsecured
|
4,061
|
|
|
323
|
|
|
1,497
|
|
|
52
|
|
|
5,933
|
|
|||||
Municipal loans
|
4,751
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,751
|
|
|||||
Warehouse lines
|
2,971
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,971
|
|
|||||
Health care
|
17,566
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,566
|
|
|||||
Other
|
6,957
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,957
|
|
|||||
Commercial leases:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment rated commercial leases
|
102,101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,101
|
|
|||||
Below investment grade
|
9,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,205
|
|
|||||
Non-rated
|
25,466
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,466
|
|
|||||
Lease pools
|
3,011
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,011
|
|
|||||
Consumer loans
|
2,742
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
2,745
|
|
|||||
Total
|
$
|
924,953
|
|
|
$
|
41,422
|
|
|
$
|
55,004
|
|
|
$
|
26,376
|
|
|
$
|
1,047,755
|
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Nonaccrual
|
|
Total
|
||||||||||
One-to-four family residential real estate loans
|
|
$
|
184,268
|
|
|
$
|
51
|
|
|
$
|
906
|
|
|
$
|
6,202
|
|
|
$
|
191,427
|
|
One-to-four family residential real estate loans non-owner occupied
|
|
68,513
|
|
|
—
|
|
|
3,845
|
|
|
8,247
|
|
|
80,605
|
|
|||||
Multi-family mortgage loans
|
|
326,292
|
|
|
6,021
|
|
|
7,473
|
|
|
16,030
|
|
|
355,816
|
|
|||||
Wholesale commercial lending
|
|
65,037
|
|
|
—
|
|
|
2,762
|
|
|
—
|
|
|
67,799
|
|
|||||
Nonresidential real estate loans
|
|
239,254
|
|
|
18,659
|
|
|
20,219
|
|
|
33,509
|
|
|
311,641
|
|
|||||
Construction loans
|
|
969
|
|
|
363
|
|
|
511
|
|
|
813
|
|
|
2,656
|
|
|||||
Land loans
|
|
7,662
|
|
|
—
|
|
|
2,320
|
|
|
7,214
|
|
|
17,196
|
|
|||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||
Secured
|
|
25,089
|
|
|
415
|
|
|
443
|
|
|
4,070
|
|
|
30,017
|
|
|||||
Unsecured
|
|
6,779
|
|
|
38
|
|
|
2,968
|
|
|
88
|
|
|
9,873
|
|
|||||
Municipal loans
|
|
6,381
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,381
|
|
|||||
Warehouse lines
|
|
9,830
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,830
|
|
|||||
Health care
|
|
28,060
|
|
|
1,376
|
|
|
—
|
|
|
—
|
|
|
29,436
|
|
|||||
Other
|
|
8,395
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,395
|
|
|||||
Commercial leases:
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||
Investment rated commercial leases
|
|
83,947
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83,947
|
|
|||||
Below investment grade
|
|
6,209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,209
|
|
|||||
Non-rated
|
|
37,026
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
37,048
|
|
|||||
Lease pools
|
|
7,786
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,786
|
|
|||||
Consumer loans
|
|
2,144
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2,147
|
|
|||||
Total
|
|
$
|
1,113,641
|
|
|
$
|
26,923
|
|
|
$
|
41,447
|
|
|
$
|
76,198
|
|
|
$
|
1,258,209
|
|
|
2012
|
|
2011
|
||||
Servicing rights
|
|
|
|
||||
Beginning of year
|
$
|
1,219
|
|
|
$
|
1,349
|
|
Additions
|
136
|
|
|
122
|
|
||
Amortized to expense
|
(265
|
)
|
|
(252
|
)
|
||
End of year
|
$
|
1,090
|
|
|
$
|
1,219
|
|
Valuation allowance
|
|
|
|
||||
Beginning of year
|
$
|
15
|
|
|
$
|
—
|
|
Additions expensed
|
61
|
|
|
32
|
|
||
Reductions credited to expense
|
(6
|
)
|
|
(17
|
)
|
||
End of year
|
$
|
70
|
|
|
$
|
15
|
|
Carrying value of mortgage servicing rights
|
$
|
1,020
|
|
|
$
|
1,204
|
|
Fair value of mortgage servicing rights
|
$
|
1,340
|
|
|
$
|
1,481
|
|
|
2012
|
|
2011
|
||
Prepayment speed
|
15.86
|
%
|
|
17.45
|
%
|
Discount rate
|
12.00
|
%
|
|
12.00
|
%
|
Average servicing cost per loan
|
$72.00
|
|
$62.00
|
||
Escrow float rate
|
0.86
|
%
|
|
0.90
|
%
|
Fair value of mortgage servicing rights
|
$
|
1,340
|
|
Weighted average annual prepayment speed
|
15.86
|
%
|
|
Decrease in fair value from 10% adverse change
|
(244
|
)
|
|
Decrease in fair value from 20% adverse change
|
(270
|
)
|
|
Weighted-average annual discount rate
|
12.00
|
%
|
|
Decrease in fair value from 10% adverse change
|
(50
|
)
|
|
Decrease in fair value from 20% adverse change
|
(98
|
)
|
2013
|
$
|
169
|
|
2014
|
164
|
|
|
2015
|
143
|
|
|
2016
|
110
|
|
|
2017
|
97
|
|
|
2012
|
|
2011
|
||||
Land and land improvements
|
$
|
13,605
|
|
|
$
|
13,517
|
|
Buildings and improvements
|
37,777
|
|
|
37,178
|
|
||
Furniture and equipment
|
10,173
|
|
|
10,516
|
|
||
Computer equipment
|
6,396
|
|
|
8,211
|
|
||
|
67,951
|
|
|
69,422
|
|
||
Accumulated depreciation
|
(29,700
|
)
|
|
(30,267
|
)
|
||
|
$
|
38,251
|
|
|
$
|
39,155
|
|
2013
|
$
|
492
|
|
2014
|
456
|
|
|
2015
|
440
|
|
|
2016
|
445
|
|
|
2017
|
469
|
|
|
Thereafter
|
6,117
|
|
|
Total
|
$
|
8,419
|
|
2013
|
$
|
54
|
|
2014
|
30
|
|
|
2015
|
8
|
|
|
Total
|
$
|
92
|
|
|
|
As of and for the year ended
December 31,
|
||
|
|
2011
|
||
Balance at the beginning of the year
|
|
$
|
22,566
|
|
Additions
|
|
1,296
|
|
|
|
|
23,862
|
|
|
Impairment charge
|
|
(23,862
|
)
|
|
Net Carrying Value
|
|
$
|
—
|
|
|
2012
|
|
2011
|
||||
Balance at the beginning of the year
|
$
|
3,671
|
|
|
$
|
2,700
|
|
Amortization
|
(633
|
)
|
|
(1,689
|
)
|
||
Additions
|
—
|
|
|
2,660
|
|
||
Net Carrying Value
|
$
|
3,038
|
|
|
$
|
3,671
|
|
Gross carrying amount
|
$
|
5,932
|
|
|
$
|
5,933
|
|
Accumulated amortization
|
2,894
|
|
|
2,262
|
|
||
Net Carrying Value
|
$
|
3,038
|
|
|
$
|
3,671
|
|
|
2012
|
|
2011
|
||||
Noninterest-bearing demand deposits
|
$
|
134,597
|
|
|
$
|
142,084
|
|
Savings deposits
|
144,726
|
|
|
144,515
|
|
||
Money market accounts
|
349,092
|
|
|
345,011
|
|
||
Interest-bearing NOW accounts
|
348,683
|
|
|
336,531
|
|
||
Certificates of deposit
|
305,253
|
|
|
364,411
|
|
||
|
$
|
1,282,351
|
|
|
$
|
1,332,552
|
|
2013
|
$
|
212,889
|
|
2014
|
64,613
|
|
|
2015
|
14,887
|
|
|
2016
|
8,360
|
|
|
2017
|
4,504
|
|
|
2012
|
|
2011
|
||||||||||
|
Contractual
Rate
|
|
Amount
|
|
Contractual
Rate
|
|
Amount
|
||||||
Fixed-rate advance from
|
|
|
|
|
|
|
|
||||||
FHLBC due:
|
|
|
|
|
|
|
|
||||||
Within 1 year
|
2.99
|
%
|
|
$
|
3,000
|
|
|
—
|
%
|
|
$
|
—
|
|
1 to 2 years
|
—
|
|
|
—
|
|
|
2.99
|
|
|
3,000
|
|
||
Total FHLBC funds
|
2.99
|
|
|
3,000
|
|
|
2.99
|
|
|
3,000
|
|
||
Securities sold under agreements to repurchase
|
0.25
|
|
|
2,567
|
|
|
0.25
|
|
|
6,322
|
|
||
Total borrowings
|
1.73
|
%
|
|
$
|
5,567
|
|
|
1.13
|
%
|
|
$
|
9,322
|
|
|
For the years ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Current benefit
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
(5
|
)
|
Deferred benefit
|
(11,206
|
)
|
|
(10,220
|
)
|
|
(2,742
|
)
|
|||
Deferred tax valuation allowance
|
11,206
|
|
|
22,601
|
|
|
—
|
|
|||
Total income tax expense (benefit)
|
$
|
—
|
|
|
$
|
12,375
|
|
|
$
|
(2,747
|
)
|
|
For the years ended December 31,
|
|||||||||||
|
2012
|
|
2011
|
|
2010
|
|||||||
Benefit computed at the statutory federal tax rate
|
$
|
(9,217
|
)
|
|
$
|
(12,349
|
)
|
|
$
|
(2,398
|
)
|
|
State taxes and other, net
|
(1,757
|
)
|
|
(1,395
|
)
|
|
(491
|
)
|
||||
Bank owned life insurance
|
(149
|
)
|
|
(213
|
)
|
|
(146
|
)
|
||||
ESOP/Share based compensation
|
(83
|
)
|
|
(144
|
)
|
|
288
|
|
||||
Goodwill impairment
|
—
|
|
|
4,271
|
|
|
—
|
|
||||
Purchase price accounting adjustments
|
—
|
|
|
(396
|
)
|
|
—
|
|
||||
Deferred tax valuation allowance
|
11,206
|
|
|
22,601
|
|
|
—
|
|
||||
|
$
|
—
|
|
|
$
|
12,375
|
|
|
$
|
(2,747
|
)
|
|
Effective income tax rate
|
—
|
%
|
|
N.M.
|
|
(1
|
)
|
38.94
|
%
|
(1)
|
The effective tax rate for the year ended
December 31, 2011
is not meaningful due to the size of our operating loss relative to the income expense resulting from the deferred tax valuation allowance.
|
|
2012
|
|
2011
|
||||
Gross Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
7,037
|
|
|
$
|
12,378
|
|
Alternative minimum tax, general business credit and net operating loss carryforward
|
25,040
|
|
|
10,495
|
|
||
Tax deductible goodwill
|
2,425
|
|
|
2,719
|
|
||
Non-qualified stock options
|
—
|
|
|
834
|
|
||
OREO write-downs and carrying costs
|
2,989
|
|
|
1,914
|
|
||
Other
|
1,208
|
|
|
606
|
|
||
|
38,699
|
|
|
28,946
|
|
||
Gross Deferred tax liabilities:
|
|
|
|
||||
Net deferred loan origination costs
|
(1,164
|
)
|
|
(1,265
|
)
|
||
FHLBC stock dividends
|
—
|
|
|
(1,840
|
)
|
||
Purchase accounting adjustments
|
(1,423
|
)
|
|
(488
|
)
|
||
Accumulated depreciation
|
(465
|
)
|
|
(858
|
)
|
||
Mortgage servicing rights
|
(398
|
)
|
|
(470
|
)
|
||
Other
|
(739
|
)
|
|
(740
|
)
|
||
Unrealized gain on securities
|
(703
|
)
|
|
(684
|
)
|
||
|
(4,892
|
)
|
|
(6,345
|
)
|
||
Valuation allowance
|
(33,807
|
)
|
|
(22,601
|
)
|
||
Net deferred tax asset
|
$
|
—
|
|
|
$
|
—
|
|
|
2012
|
|
2011
|
||||
Beginning of year
|
$
|
223
|
|
|
$
|
176
|
|
Additions based on tax positions related to the current year
|
—
|
|
|
51
|
|
||
Additions for tax positions of prior years
|
18
|
|
|
22
|
|
||
Reductions due to the statute of limitations
|
(116
|
)
|
|
(26
|
)
|
||
End of year
|
$
|
125
|
|
|
$
|
223
|
|
|
Actual
|
|
Minimum required To Be Well
Capitalized Under Prompt
Corrective Action Provisions
|
|
Minimum Capital Ratios Established under Capital Plans
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk-weighted assets)
|
$
|
154,296
|
|
|
15.32
|
%
|
|
$
|
80,553
|
|
|
8.00
|
%
|
|
$
|
120,830
|
|
|
12.00
|
%
|
Tier 1 (core) capital (to risk-weighted assets)
|
141,629
|
|
|
14.07
|
|
|
40,277
|
|
|
4.00
|
|
|
80,553
|
|
|
8.00
|
|
|||
Tier 1 (core) capital (to adjusted average total assets)
|
141,629
|
|
|
9.60
|
|
|
59,029
|
|
|
4.00
|
|
|
118,058
|
|
|
8.00
|
|
|||
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk-weighted assets)
|
$
|
182,074
|
|
|
14.72
|
%
|
|
$
|
98,975
|
|
|
8.00
|
%
|
|
$
|
148,462
|
|
|
12.00
|
%
|
Tier 1 (core) capital (to risk-weighted assets)
|
166,406
|
|
|
13.45
|
|
|
49,487
|
|
|
4.00
|
|
|
98,975
|
|
|
8.00
|
|
|||
Tier 1 (core) capital (to adjusted average total assets)
|
166,406
|
|
|
10.48
|
|
|
63,502
|
|
|
4.00
|
|
|
127,003
|
|
|
8.00
|
|
|
2012
|
|
2011
|
||||
GAAP equity
|
$
|
145,785
|
|
|
$
|
171,188
|
|
Disallowed goodwill and other intangible assets
|
(3,038
|
)
|
|
(3,671
|
)
|
||
Accumulated gain on securities
|
(1,118
|
)
|
|
(1,111
|
)
|
||
Tier 1 capital
|
141,629
|
|
|
166,406
|
|
||
General regulatory loan loss reserves allowed
|
12,654
|
|
|
15,668
|
|
||
Unrealized gains on securities available for sale allowed
|
13
|
|
|
—
|
|
||
Total regulatory capital
|
$
|
154,296
|
|
|
$
|
182,074
|
|
|
2012
|
|
2011
|
||||
Allocated to participants
|
654,690
|
|
|
636,123
|
|
||
Distributed to participants
|
(26,774
|
)
|
|
(79,298
|
)
|
||
Unearned
|
1,223,312
|
|
|
1,321,177
|
|
||
Total ESOP shares
|
1,851,228
|
|
|
1,878,002
|
|
||
Fair value of unearned shares
|
$
|
13,736
|
|
|
$
|
7,293
|
|
Stock Options
|
Number of
Shares
|
|
Weighted Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Term
(in years)
|
|
Aggregate
Intrinsic
Value
(1)
|
|||||
Stock options outstanding at December 31, 2010
|
2,283,553
|
|
|
$
|
16.52
|
|
|
0.8
|
|
$
|
—
|
|
Stock options granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Stock options exercised
|
—
|
|
|
—
|
|
|
|
|
|
|||
Stock options expired
|
(208,000
|
)
|
|
(16.33
|
)
|
|
|
|
|
|||
Stock options forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Stock options outstanding at December 31, 2011
|
2,075,553
|
|
|
$
|
16.54
|
|
|
0.7
|
|
$
|
—
|
|
Stock options granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Stock options exercised
|
—
|
|
|
—
|
|
|
|
|
|
|||
Stock options expired
|
(2,064,553
|
)
|
|
(16.54
|
)
|
|
|
|
|
|||
Stock options forfeited
|
(11,000
|
)
|
|
—
|
|
|
|
|
|
|||
Stock options outstanding at December 31, 2012
|
—
|
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
Stock options exercisable at December 31, 2012
|
—
|
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
Fully vested and expected to vest
|
—
|
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
(1)
|
Stock option aggregate intrinsic value represents the number of shares subject to options multiplied by the difference (if positive) in the closing market price of the common stock underlying the options on the date shown and the weighted average exercise price.
|
Restricted Stock
|
Number of
Shares
(1)
|
|
Weighted
Average Fair
Value at Grant
Date
|
|
Weighted
Average
Term to Vest
(in years)
|
|
Aggregate
Intrinsic
Value
(2)
|
|||||
Shares outstanding at December 31, 2010
|
8,667
|
|
|
$
|
9.54
|
|
|
1.5
|
|
$
|
85
|
|
Shares granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Shares vested
|
(4,333
|
)
|
|
(9.54
|
)
|
|
|
|
|
|||
Shares forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Shares outstanding at December 31, 2011
|
4,334
|
|
|
$
|
9.54
|
|
|
0.5
|
|
$
|
24
|
|
Shares granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Shares vested
|
(4,334
|
)
|
|
(9.54
|
)
|
|
|
|
|
|||
Shares forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Shares outstanding at December 31, 2012
|
—
|
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
(1)
|
The end of period balances consist only of unvested shares.
|
(2)
|
Restricted stock aggregate intrinsic value represents the number of shares of restricted stock multiplied by the market price of the common stock underlying the outstanding shares on the date shown.
|
|
2012
|
|
2011
|
||||
Financial instruments wherein contractual amounts represent credit risk
|
|
|
|
||||
Commitments to extend credit
|
$
|
15,971
|
|
|
$
|
15,832
|
|
Standby letters of credit
|
1,237
|
|
|
1,815
|
|
||
Unused lines of credit
|
120,733
|
|
|
116,460
|
|
||
Commitments to sell mortgages
|
1,268
|
|
|
4,103
|
|
•
|
Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
•
|
Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
December 31, 2012
|
|
|
|
|
|
|
|
||||||||
Securities:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
—
|
|
|
$
|
33,456
|
|
|
$
|
—
|
|
|
$
|
33,456
|
|
Municipal securities
|
—
|
|
|
369
|
|
|
—
|
|
|
369
|
|
||||
Equity mutual fund
|
528
|
|
|
—
|
|
|
—
|
|
|
528
|
|
||||
Mortgage-backed securities – residential
|
—
|
|
|
34,233
|
|
|
—
|
|
|
34,233
|
|
||||
Collateralized mortgage obligations – residential
|
—
|
|
|
9,204
|
|
|
—
|
|
|
9,204
|
|
||||
SBA-guaranteed loan participation certificates
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
||||
|
$
|
528
|
|
|
$
|
77,304
|
|
|
$
|
—
|
|
|
$
|
77,832
|
|
December 31, 2011
|
|
|
|
|
|
|
|
||||||||
Securities:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
—
|
|
|
$
|
30,448
|
|
|
$
|
—
|
|
|
$
|
30,448
|
|
Municipal securities
|
—
|
|
|
551
|
|
|
—
|
|
|
551
|
|
||||
Equity mutual fund
|
524
|
|
|
—
|
|
|
—
|
|
|
524
|
|
||||
Mortgage-backed securities - residential
|
—
|
|
|
36,076
|
|
|
—
|
|
|
36,076
|
|
||||
Collateralized mortgage obligations – residential
|
—
|
|
|
25,186
|
|
|
—
|
|
|
25,186
|
|
||||
SBA-guaranteed loan participation certificates
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
||||
|
$
|
524
|
|
|
$
|
92,308
|
|
|
$
|
—
|
|
|
$
|
92,832
|
|
|
Fair Value Measurement Using
|
|
|
||||||||||||
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair
Value
|
||||||||
December 31, 2012
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
||||||||
One–to–four family residential real estate loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
410
|
|
|
$
|
410
|
|
Multi-family mortgage loans
|
—
|
|
|
—
|
|
|
1,932
|
|
|
1,932
|
|
||||
Nonresidential real estate loans
|
—
|
|
|
—
|
|
|
3,110
|
|
|
3,110
|
|
||||
Construction and land loans
|
—
|
|
|
—
|
|
|
2,840
|
|
|
2,840
|
|
||||
Commercial loans
|
—
|
|
|
—
|
|
|
181
|
|
|
181
|
|
||||
Impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,473
|
|
|
$
|
8,473
|
|
Other real estate owned:
|
|
|
|
|
|
|
|
||||||||
One–to–four family residential real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,080
|
|
|
$
|
2,080
|
|
Multi-family mortgage
|
—
|
|
|
—
|
|
|
720
|
|
|
720
|
|
||||
Nonresidential real estate
|
—
|
|
|
—
|
|
|
3,966
|
|
|
3,966
|
|
||||
Land
|
—
|
|
|
—
|
|
|
3,592
|
|
|
3,592
|
|
||||
Other real estate owned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,358
|
|
|
$
|
10,358
|
|
Mortgage servicing rights
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
208
|
|
|
$
|
208
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2011
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
||||||||
One–to–four family residential real estate loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,024
|
|
|
$
|
4,024
|
|
Multi-family mortgage loans
|
—
|
|
|
—
|
|
|
6,285
|
|
|
6,285
|
|
||||
Nonresidential real estate loans
|
—
|
|
|
—
|
|
|
17,239
|
|
|
17,239
|
|
||||
Construction and land loans
|
—
|
|
|
—
|
|
|
2,304
|
|
|
2,304
|
|
||||
Commercial loans
|
—
|
|
|
—
|
|
|
844
|
|
|
844
|
|
||||
Impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,696
|
|
|
$
|
30,696
|
|
Other real estate owned:
|
|
|
|
|
|
|
|
||||||||
One–to–four family residential real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,655
|
|
|
$
|
5,655
|
|
Multi-family mortgage
|
—
|
|
|
—
|
|
|
3,655
|
|
|
3,655
|
|
||||
Nonresidential real estate
|
—
|
|
|
—
|
|
|
7,451
|
|
|
7,451
|
|
||||
Land
|
—
|
|
|
—
|
|
|
5,719
|
|
|
5,719
|
|
||||
Other real estate owned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,480
|
|
|
$
|
22,480
|
|
Mortgage servicing rights
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
344
|
|
|
$
|
344
|
|
|
Fair Value
|
|
Valuation
Technique(s)
|
|
Unobservable
Input(s)
|
|
Range
(Weighted
Average)
|
||
Impaired loans:
|
|
|
|
|
|
|
|
||
One-to-four family residential real estate loans
|
$
|
410
|
|
|
Sales comparison
|
|
Discount applied to valuation
|
|
6%-90%
(58%) |
Multi-family mortgage loans
|
1,932
|
|
|
Sales comparison
|
|
Comparison between sales and income approaches
|
|
2%-95%
(42%) |
|
|
|
|
Income approach
|
|
Cap Rate
|
|
8.3% to 9.5%
(8.95%) |
||
Nonresidential real estate loans
|
3,110
|
|
|
Sales comparison
|
|
Comparison between sales and income approaches
|
|
6%-99%
(61%) |
|
|
|
|
Income approach
|
|
Cap Rate
|
|
8%-10.5%
(8.61%) |
||
Construction and land loans
|
2,840
|
|
|
Sales comparison
|
|
Discount applied to valuation
|
|
-3%-53%
(22%) |
|
Commercial loans
|
181
|
|
|
Sales comparison
|
|
Discount applied to valuation
|
|
0%-11%
(43%) |
|
Impaired loans
|
$
|
8,473
|
|
|
|
|
|
|
|
Other real estate owned:
|
|
|
|
|
|
|
|
||
One-to-four family residential real estate
|
$
|
2,080
|
|
|
Sales comparison
|
|
Discount applied to valuation
|
|
7%-78%
(17%) |
Multi-family mortgage
|
720
|
|
|
Sales comparison
|
|
Comparison between sales and income approaches
|
|
13%-62%
(42%) |
|
Nonresidential real estate
|
3,966
|
|
|
Sales comparison
|
|
Comparison between sales and income approaches
|
|
7%-37%
(27%) |
|
Land
|
3,592
|
|
|
Sales comparison
|
|
Discount applied to valuation
|
|
7%-21%
(10%) |
|
Other real estate owned
|
$
|
10,358
|
|
|
|
|
|
|
|
Mortgage servicing rights
|
$
|
208
|
|
|
Third party
valuation |
|
Present value of future servicing income based on prepayment speeds
|
|
12.7 % - 28.6%
(18.62%) |
|
|
|
Third party
valuation |
|
Present value of future servicing income based on default rates
|
|
12%
|
|
|
|
Fair Value Measurements at
December 31, 2012 Using:
|
|
|
||||||||||||||
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
275,764
|
|
|
$
|
20,361
|
|
|
$
|
255,403
|
|
|
$
|
—
|
|
|
$
|
275,764
|
|
Securities
|
77,832
|
|
|
528
|
|
|
77,304
|
|
|
—
|
|
|
77,832
|
|
|||||
Loans held-for-sale
|
2,166
|
|
|
—
|
|
|
2,166
|
|
|
—
|
|
|
2,166
|
|
|||||
Loans receivable, net of allowance for loan losses
|
1,030,465
|
|
|
—
|
|
|
999,578
|
|
|
8,473
|
|
|
1,008,051
|
|
|||||
FHLBC stock
|
8,412
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
4,146
|
|
|
—
|
|
|
4,146
|
|
|
—
|
|
|
4,146
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand deposits
|
$
|
(134,597
|
)
|
|
$
|
—
|
|
|
$
|
(134,597
|
)
|
|
$
|
—
|
|
|
$
|
(134,597
|
)
|
Savings deposits
|
(144,726
|
)
|
|
—
|
|
|
(144,726
|
)
|
|
—
|
|
|
(144,726
|
)
|
|||||
NOW and money market accounts
|
(697,775
|
)
|
|
—
|
|
|
(697,775
|
)
|
|
—
|
|
|
(697,775
|
)
|
|||||
Certificates of deposit
|
(305,253
|
)
|
|
—
|
|
|
(306,859
|
)
|
|
—
|
|
|
(306,859
|
)
|
|||||
Borrowings
|
(5,567
|
)
|
|
—
|
|
|
(5,608
|
)
|
|
—
|
|
|
(5,608
|
)
|
|||||
Accrued interest payable
|
(157
|
)
|
|
—
|
|
|
(157
|
)
|
|
—
|
|
|
(157
|
)
|
|
December 31, 2011
|
||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||
Financial assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
120,704
|
|
|
$
|
120,704
|
|
Securities
|
92,832
|
|
|
92,832
|
|
||
Loans held-for-sale
|
1,918
|
|
|
1,918
|
|
||
Loans receivable, net of allowance for loan losses
|
1,227,391
|
|
|
1,217,377
|
|
||
FHLBC stock
|
16,346
|
|
|
N/A
|
|
||
Accrued interest receivable
|
5,573
|
|
|
5,573
|
|
||
Financial liabilities
|
|
|
|
||||
Noninterest-bearing demand deposits
|
$
|
(142,084
|
)
|
|
$
|
(142,084
|
)
|
Savings deposits
|
(144,515
|
)
|
|
(144,515
|
)
|
||
NOW and money market accounts
|
(681,542
|
)
|
|
(681,542
|
)
|
||
Certificates of deposit
|
(364,411
|
)
|
|
(365,952
|
)
|
||
Borrowings
|
(9,322
|
)
|
|
(9,412
|
)
|
||
Accrued interest payable
|
(212
|
)
|
|
(212
|
)
|
|
2012
|
|
2011
|
||||
Assets
|
|
|
|
||||
Cash in subsidiary
|
$
|
11,848
|
|
|
$
|
11,948
|
|
Loan receivable from ESOP
|
14,654
|
|
|
15,527
|
|
||
Investment in subsidiary
|
145,785
|
|
|
171,416
|
|
||
Income tax receivable
|
461
|
|
|
1,696
|
|
||
Other assets
|
163
|
|
|
71
|
|
||
Total assets
|
$
|
172,911
|
|
|
$
|
200,658
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Accrued expenses and other liabilities
|
21
|
|
|
801
|
|
||
Total stockholders’ equity
|
172,890
|
|
|
199,857
|
|
||
Total liabilities and stockholders’ equity
|
$
|
172,911
|
|
|
$
|
200,658
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Interest income
|
$
|
662
|
|
|
$
|
696
|
|
|
$
|
730
|
|
Other income
|
57
|
|
|
—
|
|
|
—
|
|
|||
Other expense
|
1,422
|
|
|
1,381
|
|
|
1,343
|
|
|||
Loss before income tax and undistributed subsidiary income
|
(703
|
)
|
|
(685
|
)
|
|
(613
|
)
|
|||
Income tax expense (benefit)
|
—
|
|
|
254
|
|
|
(232
|
)
|
|||
Loss before equity in undistributed subsidiary income
|
(703
|
)
|
|
(939
|
)
|
|
(381
|
)
|
|||
Equity in undistributed subsidiary excess distributions
|
(26,406
|
)
|
|
(47,757
|
)
|
|
(3,926
|
)
|
|||
Net loss
|
$
|
(27,109
|
)
|
|
$
|
(48,696
|
)
|
|
$
|
(4,307
|
)
|
|
2012
|
|
2011
|
|
2010
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net loss
|
$
|
(27,109
|
)
|
|
$
|
(48,696
|
)
|
|
$
|
(4,307
|
)
|
Adjustments:
|
|
|
|
|
|
||||||
Equity in undistributed subsidiary excess distributions
|
26,406
|
|
|
47,757
|
|
|
3,926
|
|
|||
Change in other assets
|
1,143
|
|
|
350
|
|
|
9,752
|
|
|||
Change in accrued expenses and other liabilities
|
(780
|
)
|
|
(89
|
)
|
|
(10,439
|
)
|
|||
Net cash from operating activities
|
(340
|
)
|
|
(678
|
)
|
|
(1,068
|
)
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Principal payments received on ESOP loan
|
873
|
|
|
840
|
|
|
805
|
|
|||
Net cash from investing activities
|
873
|
|
|
840
|
|
|
805
|
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Repurchase and retirement of common stock
|
—
|
|
|
—
|
|
|
(3,124
|
)
|
|||
Cash dividends paid on common stock
|
(633
|
)
|
|
(4,636
|
)
|
|
(5,946
|
)
|
|||
Net cash from financing activities
|
(633
|
)
|
|
(4,636
|
)
|
|
(9,070
|
)
|
|||
Net change in cash in subsidiary
|
(100
|
)
|
|
(4,474
|
)
|
|
(9,333
|
)
|
|||
Beginning cash in subsidiary
|
11,948
|
|
|
16,422
|
|
|
25,755
|
|
|||
Ending cash in subsidiary
|
$
|
11,848
|
|
|
$
|
11,948
|
|
|
$
|
16,422
|
|
|
Year Ended December 31, 2012
|
||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Interest income
|
$
|
16,634
|
|
|
$
|
15,824
|
|
|
$
|
14,468
|
|
|
$
|
13,801
|
|
Interest expense
|
1,240
|
|
|
1,112
|
|
|
1,036
|
|
|
1,059
|
|
||||
Net interest income
|
15,394
|
|
|
14,712
|
|
|
13,432
|
|
|
12,742
|
|
||||
Provision for loan losses
|
996
|
|
|
1,745
|
|
|
4,453
|
|
|
24,328
|
|
||||
Net interest income
|
14,398
|
|
|
12,967
|
|
|
8,979
|
|
|
(11,586
|
)
|
||||
Noninterest income
|
1,832
|
|
|
1,418
|
|
|
1,831
|
|
|
1,771
|
|
||||
Noninterest expense
|
13,436
|
|
|
14,044
|
|
|
16,032
|
|
|
15,207
|
|
||||
Income (loss) before income taxes
|
2,794
|
|
|
341
|
|
|
(5,222
|
)
|
|
(25,022
|
)
|
||||
Income tax expense (benefit)
|
457
|
|
|
(457
|
)
|
|
—
|
|
|
—
|
|
||||
Net income (loss)
|
$
|
2,337
|
|
|
$
|
798
|
|
|
$
|
(5,222
|
)
|
|
$
|
(25,022
|
)
|
Basic earnings (loss) per common share
|
$
|
0.12
|
|
|
$
|
0.04
|
|
|
$
|
(0.26
|
)
|
|
$
|
(1.25
|
)
|
Diluted earnings (loss) per common share
|
$
|
0.12
|
|
|
$
|
0.04
|
|
|
$
|
(0.26
|
)
|
|
$
|
(1.25
|
)
|
|
Year Ended December 31, 2011
|
||||||||||||||
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
||||||||
Interest income
|
$
|
15,348
|
|
|
$
|
19,000
|
|
|
$
|
17,990
|
|
|
$
|
17,370
|
|
Interest expense
|
1,996
|
|
|
1,910
|
|
|
1,629
|
|
|
1,380
|
|
||||
Net interest income
|
13,352
|
|
|
17,090
|
|
|
16,361
|
|
|
15,990
|
|
||||
Provision for loan losses
|
2,424
|
|
|
3,175
|
|
|
7,384
|
|
|
9,740
|
|
||||
Net interest income
|
10,928
|
|
|
13,915
|
|
|
8,977
|
|
|
6,250
|
|
||||
Noninterest income
|
1,571
|
|
|
1,879
|
|
|
1,863
|
|
|
2,004
|
|
||||
Noninterest expense
|
14,255
|
|
|
14,623
|
|
|
14,637
|
|
|
40,193
|
|
||||
Income (loss) before income taxes
|
(1,756
|
)
|
|
1,171
|
|
|
(3,797
|
)
|
|
(31,939
|
)
|
||||
Income tax expense (benefit)
|
(979
|
)
|
|
145
|
|
|
(1,901
|
)
|
|
15,110
|
|
||||
Net income (loss)
|
$
|
(777
|
)
|
|
$
|
1,026
|
|
|
$
|
(1,896
|
)
|
|
$
|
(47,049
|
)
|
Basic earnings (loss) per common share
|
$
|
(0.04
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.10
|
)
|
|
$
|
(2.38
|
)
|
Diluted earnings (loss) per common share
|
$
|
(0.04
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.10
|
)
|
|
$
|
(2.38
|
)
|
|
March 18, 2011
|
||
Assets acquired and liabilities assumed:
|
|
||
Cash and due from other financial institutions
|
$
|
1,353
|
|
Interest–bearing deposits in other financial institutions
|
60,266
|
|
|
Cash and cash equivalents
|
61,619
|
|
|
Securities
|
10,177
|
|
|
Loans receivable
|
118,147
|
|
|
Other real estate owned
|
6,965
|
|
|
Stock in Federal Home Loan Bank and Federal Reserve Bank
|
903
|
|
|
Premises and equipment, net
|
7,442
|
|
|
Accrued interest receivable
|
355
|
|
|
Goodwill
|
1,296
|
|
|
Core deposit intangible
|
2,660
|
|
|
FDIC prepaid expense
|
774
|
|
|
Income tax receivable
|
774
|
|
|
Deferred taxes, net
|
2,662
|
|
|
Other assets
|
42
|
|
|
Total assets acquired
|
$
|
213,816
|
|
Deposits
|
$
|
212,939
|
|
Advance payments by borrowers taxes and insurance
|
34
|
|
|
Accrued interest payable and other liabilities
|
843
|
|
|
Total liabilities assumed
|
$
|
213,816
|
|
|
Year Ended December 31,
|
||||||
|
2011
|
|
2010
|
||||
Net interest income
(1)
|
$
|
64,146
|
|
|
$
|
59,389
|
|
Net loss
|
(50,261
|
)
|
|
(16,376
|
)
|
||
Basic loss per common share
|
$
|
(2.54
|
)
|
|
$
|
(0.83
|
)
|
Diluted loss per common share
|
(2.54
|
)
|
|
(0.83
|
)
|
(1)
|
Results for DG Bancorp, Inc. include net income or loss from operations for the respective periods.
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(A)
|
Report of Independent Registered Accounting Firm
|
(B)
|
Consolidated Statements of Financial Condition - at
December 31, 2012
and
2011
|
(C)
|
Consolidated Statements of Operations for the years ended
December 31, 2012
,
2011
and
2010
|
(D)
|
Consolidated Statements of Changes in Stockholders’ Equity for the years ended
December 31, 2012
,
2011
and
2010
|
(E)
|
Consolidated Statements of Cash Flows for the years ended
December 31, 2012
,
2011
and 2010
|
(F)
|
Notes to Consolidated Financial Statements
|
|
|
Exhibit
|
|
Location
|
3.1
|
|
Articles of Incorporation of BankFinancial Corporation
|
|
Exhibit 3.1 to the Registration Statement on Form S-1 of the Company, originally filed with the Securities and Exchange Commission on September 23, 2004
|
3.2
|
|
Bylaws of BankFinancial Corporation
|
|
Exhibit 3.2 to the Registration Statement on Form S-1 of the Company, originally filed with the Securities and Exchange Commission on September 23, 2004
|
3.3
|
|
Articles of Amendment to Charter of BankFinancial Corporation
|
|
Exhibit 3.3 to the Registration Statement on Form S-1 of the Company, originally filed with the Securities and Exchange Commission on September 23, 2004
|
3.4
|
|
Restated Bylaws of BankFinancial Corporation
|
|
Exhibit 3.4 to the Annual Report on Form 10-K of the Company, originally filed with the Securities and Exchange Commission on March 15, 2007
|
4
|
|
Form of Common Stock Certificate of BankFinancial Corporation
|
|
Exhibit 4 to the Registration Statement on Form S-1 of the Company, originally filed with the Securities and Exchange Commission on September 23, 2004
|
10.1
|
|
Employee Stock Ownership Plan
|
|
Exhib
it 10.1 to the Registration Statement on Form S-1 of the
Company, originally filed with the Securities and Exchange Commission on September 23, 2004
|
10.2
|
|
Deferred Compensation Plan
|
|
Exhibit 10.2 to the Registration Statement on Form S-1 of the Company, originally filed with the Securities and Exchange Commission on September 23, 2004
|
10.3
|
|
BankFinancial FSB Employment Agreement with F. Morgan Gasior
|
|
Exhibit 10.1 to the Current Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on May 5, 2008
|
10.4
|
|
BankFinancial FSB Employment Agreement with James J. Brennan
|
|
Exhibit 10.3 to the Current Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on May 5, 2008.
|
10.5
|
|
BankFinancial FSB Employment Agreement with Paul A. Cloutier
|
|
Exhibit 10.2 to the Current Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on May 5, 2008
|
10.6
|
|
BankFinancial FSB Employment Agreement with Christa N Calabrese
|
|
Exhibit 10.5 to the Current Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on May 5, 2008
|
10.12
|
|
Form of Incentive Stock Option Award Terms
|
|
Exhibit 10.1 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
10.13
|
|
2006 BankFinancial Corporation Equity Incentive Plan
|
|
Appendix C to the Definitive Form 14A, originally filed with the Securities and Exchange Commission on May 25, 2006 (File No. 000-51331)
|
10.14
|
|
Form of Performance Based Incentive Stock Option Award Terms
|
|
Exhibit 10.2 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
10.15
|
|
Form of Non-Qualified Stock Option Award Terms
|
|
Exhibit 10.3 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
10.16
|
|
Form of Performance Based Non-Qualified Stock Option Award Terms
|
|
Exhibit 10.4 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
|
|
Exhibit
|
|
Location
|
10.17
|
|
Form of Restricted Stock Unit Award Agreement
|
|
Exhibit 10.5 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
10.18
|
|
Form of Performance Based Restricted Stock Award Agreement
|
|
Exhibit 10.6 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
10.19
|
|
Form of Restricted Stock Award Agreement
|
|
Exhibit 10.7 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
10.20
|
|
Form of Stock Appreciation Rights Agreement
|
|
Exhibit 10.8 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on September 5, 2006
|
10.25
|
|
BankFinancial Corporation Employment Agreement with F. Morgan Gasior
|
|
Exhibit 10.1 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on October 20, 2008
|
10.26
|
|
BankFinancial Corporation Employment Agreement with Paul A. Cloutier
|
|
Exhibit 10.2 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on October 20, 2008
|
10.27
|
|
BankFinancial Corporation Employment Agreement with James J. Brennan
|
|
Exhibit 10.3 to the Report on Form 8-K of the Company, originally filed with the Securities and Exchange Commission on October 20, 2008.
|
10.28
|
|
BankFinancial Corporation Employment Agreement with Elizabeth A. Doolan
|
|
Exhibit 10.28 to the Annual Report on Form 10-K of the Company, originally filed with the Securities and Exchange Commission on February 23, 2009.
|
10.29
|
|
BankFinancial FSB Employment Agreement with Elizabeth A. Doolan
|
|
Exhibit 10.29 to the Annual Report on Form 10-K of the Company, originally filed with the Securities and Exchange Commission on February 23, 2009.
|
10.30
|
|
BankFinancial FSB Employment Agreement with Gregg T. Adams
|
|
Exhibit 10.30 to the Annual Report on Form 10-K/A of the Company originally filed with the Securities and Exchange Commission on April 30, 2010.
|
10.31
|
|
BankFinancial FSB Employment Agreement with John G. Manos
|
|
Exhibit 10.31 to the Annual Report on Form 10-K/A of the Company originally filed with the Securities and Exchange Commission on April 30, 2010.
|
10.32
|
|
BankFinancial FSB Employment Agreement with William J. Deutsch, Jr.
|
|
Exhibit 10.32 to the Annual Report on Form 10-K/A of the Company originally filed with the Securities and Exchange Commission on May 2, 2011.
|
10.33
|
|
Form of Amendment No. 1 to BankFinancial FSB Employment Agreement
|
|
Filed herewith
|
10.34
|
|
Form of Amendment No. 1 to BankFinancial FSB Employment Agreement
|
|
Filed herewith
|
10.35
|
|
Form of Amendment No. 1 to BankFinancial Corporation Employment Agreement
|
|
Filed herewith
|
14
|
|
Code of Ethics for Senior Financial Officers
|
|
Exhibit 14 to the Annual Report on Form 10-K of the Company, originally filed with the Securities and Exchange Commission on March 27, 2006
|
21
|
|
Subsidiaries of Registrant
|
|
Exhibit 21 to the Registration Statement on Form S-1 of the Company, originally filed with the Securities and Exchange Commission on September 23, 2004
|
23
|
|
Consent of Crowe Horwath LLP
|
|
Filed herewith
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
32
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
Furnished herewith
|
|
|
Exhibit
|
|
Location
|
101
|
|
The following financial statements from the BankFinancial Corporation Quarterly Report on Form 10-K for the year ended December 31, 2012, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated statement of conditions, (ii) consolidated statements of operations, (iii) consolidated statements of cash flows and (iv) the notes to consolidated financial statements.
|
|
Furnished herewith
|
•
|
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
|
|
|
BANKFINANCIAL CORPORATION
|
|
Date:
|
March 11, 2013
|
By:
|
/s/ F. Morgan Gasior
|
|
|
|
F. Morgan Gasior
|
|
|
|
Chairman of the Board, Chief Executive Officer and President
|
|
|
|
(Duly Authorized Representative)
|
Signatures
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ F. Morgan Gasior
|
|
Chairman of the Board, Chief Executive Officer and President
|
|
March 11, 2013
|
F. Morgan Gasior
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Paul A. Cloutier
|
|
Executive Vice President and Chief Financial Officer
|
|
March 11, 2013
|
Paul A. Cloutier
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Elizabeth A. Doolan
|
|
Senior Vice President and Controller
|
|
March 11, 2013
|
Elizabeth A. Doolan
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Cassandra J. Francis
|
|
Director
|
|
March 11, 2013
|
Cassandra J. Francis
|
|
|
|
|
|
|
|
|
|
/s/ John M. Hausmann
|
|
Director
|
|
March 11, 2013
|
John M. Hausmann
|
|
|
|
|
|
|
|
|
|
/s/ Thomas F. O'Neill
|
|
Director
|
|
March 11, 2013
|
Thomas F. O'Neill
|
|
|
|
|
|
|
|
|
|
/s/ Joseph A. Schudt
|
|
Director
|
|
March 11, 2013
|
Joseph A. Schudt
|
|
|
|
|
|
|
|
|
|
/s/ Terry R. Wells
|
|
Director
|
|
March 11, 2013
|
Terry R. Wells
|
|
|
|
|
|
|
|
|
|
/s/ Glen R. Wherfel
|
|
Director
|
|
March 11, 2013
|
Glen R. Wherfel
|
|
|
|
|
1.
|
The last two sentences of Section 6(b) are replaced with the following: “Amounts payable under Subsection (ii) and (iv) of this Section 6(b) shall be paid as provided in Section (j) and as may be required to be deferred pursuant to Section 24.”
|
2.
|
The last two sentences of Section 6(c) are replaced with the following: “Amounts payable under Subsection (ii) and (iv) of this Section 6(c) shall be paid as provided in Section (j) and as may be required to be deferred pursuant to Section 24.”
|
3.
|
The last two sentences of Section 6(e) are replaced with the following: “Amounts payable under this Section 6(e) shall be paid as provided in Section (j) and as may be required to be deferred pursuant to Section 24.”
|
4.
|
The last sentence of Section 6(f) is replaced with the following: “Amounts payable under this Section 6(f) shall be paid as provided in Section (j).”
|
BANKFINANCIAL, F.S.B.
|
EXECUTIVE
|
By:
Its:
Date: December ____, 2012
|
Date: December ____, 2012
|
1.
|
The last sentence of Section 6(b) is replaced with the following: “Amounts payable under Subsections (ii) and (iv) of this Section 6(b) shall be paid as provided in Section 6(i).”
|
2.
|
The last sentence of Section 6(c) is replaced with the following: “Amounts payable under Subsections (ii) and (iv) of this Section 6(c) shall be paid as provided in Section 6(i).”
|
3.
|
The last sentence of Section 6(e) is replaced with the following: “Amounts payable under this Section 6(e) shall be paid as provided in Section 6(i).”
|
4.
|
The last sentence of Section 6(f) is replaced with the following: “Subject to the delivery (and non-revocation) of the executed general release as provided for in Section (i), amounts payable under this Section 6(f) shall be paid in a single lump sum on the Bank's regular payroll date sixty (60) days after the date of Executive's death.”
|
5.
|
Section 6(i) is replaced with the following:
|
BANKFINANCIAL, F.S.B.
|
EXECUTIVE
|
By:
Its:
Date: December _____, 2012
|
Date: December _____, 2012
|
1.
|
The last two sentences of Section 6(b) are replaced with the following:
|
2.
|
The last two sentences of Section 6(c) are replaced with the following:
|
3.
|
The last two sentences of Section 6(e) are replaced with the following:
|
4.
|
The last sentence of Section 6(f) is replaced with the following:
|
5.
|
Section 6(h) is amended to read as follows:
|
BANKFINANCIAL CORPORATION
|
EXECUTIVE
|
By:
Its:
Date: December ____, 2012
|
Date: December ____, 2012
|
1.
|
I have reviewed this Annual Report on Form 10-K of BankFinancial Corporation, a Maryland corporation;
|
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 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;
|
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 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)
|
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):
|
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.
|
c)
|
|
Date:
|
March 11, 2013
|
|
|
|
/s/ F. Morgan Gasior
|
||
|
|
|
|
|
F. Morgan Gasior
|
||
|
|
|
|
|
Chairman of the Board,
Chief Executive Officer and President
|
1.
|
I have reviewed this Annual Report on Form 10-K of BankFinancial Corporation, a Maryland corporation;
|
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 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;
|
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 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)
|
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):
|
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:
|
March 11, 2013
|
|
|
|
/s/ Paul A. Cloutier
|
||
|
|
|
|
|
Paul A. Cloutier
|
||
|
|
|
|
|
Executive Vice President and
Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
March 11, 2013
|
|
|
|
/s/ F. Morgan Gasior
|
||
|
|
|
|
|
F. Morgan Gasior
|
||
|
|
|
|
|
Chairman of the Board, Chief Executive Officer
and President
|
Date:
|
March 11, 2013
|
|
|
|
/s/ Paul A. Cloutier
|
||
|
|
|
|
|
Paul A. Cloutier
Executive Vice President and Chief Financial
Officer
|