Vermont
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03-0284070
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(State of Incorporation)
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(IRS Employer Identification Number)
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4811 US Route 5, Derby, Vermont
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05829
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(Address of Principal Executive Offices)
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(zip code)
|
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | þ |
(Do not check if a smaller reporting company) |
Index
|
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Page
|
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PART I
|
FINANCIAL INFORMATION
|
|
Item 1
|
Financial Statements
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3
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Item 2
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
28
|
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
46
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Item 4
|
Controls and Procedures
|
46
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PART II
|
OTHER INFORMATION
|
|
Item 1
|
Legal Proceedings
|
47
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Item 2
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Unregistered Sales of Equity Securities and Use of Proceeds
|
47
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Item 6
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Exhibits
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48
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Signatures
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49
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June 30,
|
December 31,
|
June 30,
|
||||||||||
2014
|
2013
|
2013
|
||||||||||
(Unaudited)
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(Unaudited)
|
|||||||||||
Assets
|
||||||||||||
Cash and due from banks
|
$ | 16,321,342 | $ | 11,841,161 | $ | 15,253,825 | ||||||
Federal funds sold and overnight deposits
|
21,474 | 6,488,828 | 28,489 | |||||||||
Total cash and cash equivalents
|
16,342,816 | 18,329,989 | 15,282,314 | |||||||||
Securities held-to-maturity (fair value $23,373,000 at 06/30/14
|
||||||||||||
$38,370,000 at 12/31/13 and $24,468,000 at 06/30/13)
|
22,966,558 | 37,936,911 | 24,105,937 | |||||||||
Securities available-for-sale
|
31,198,958 | 35,188,602 | 44,599,702 | |||||||||
Restricted equity securities, at cost
|
3,332,450 | 3,632,850 | 3,632,850 | |||||||||
Loans held-for-sale
|
670,255 | 209,500 | 1,019,119 | |||||||||
Loans
|
450,593,304 | 439,908,926 | 424,793,211 | |||||||||
Allowance for loan losses
|
(4,876,816 | ) | (4,854,915 | ) | (4,522,179 | ) | ||||||
Deferred net loan costs
|
288,237 | 300,429 | 247,624 | |||||||||
Net loans
|
446,004,725 | 435,354,440 | 420,518,656 | |||||||||
Bank premises and equipment, net
|
11,516,750 | 11,723,468 | 12,102,176 | |||||||||
Accrued interest receivable
|
1,444,775 | 1,778,305 | 1,748,237 | |||||||||
Bank owned life insurance
|
4,358,117 | 4,303,307 | 4,244,849 | |||||||||
Core deposit intangible
|
954,431 | 1,090,781 | 1,227,126 | |||||||||
Goodwill
|
11,574,269 | 11,574,269 | 11,574,269 | |||||||||
Other real estate owned (OREO)
|
916,820 | 1,105,525 | 2,171,621 | |||||||||
Other assets
|
10,960,831 | 11,439,457 | 12,417,586 | |||||||||
Total assets
|
$ | 562,241,755 | $ | 573,667,404 | $ | 554,644,442 | ||||||
Liabilities and Shareholders' Equity
|
||||||||||||
Liabilities
|
||||||||||||
Deposits:
|
||||||||||||
Demand, non-interest bearing
|
$ | 81,327,974 | $ | 82,156,154 | $ | 69,212,564 | ||||||
Interest-bearing transaction accounts
|
104,820,943 | 126,578,052 | 106,791,838 | |||||||||
Money market funds
|
67,525,017 | 81,960,677 | 72,280,640 | |||||||||
Savings
|
75,556,376 | 69,906,147 | 69,841,359 | |||||||||
Time deposits, $100,000 and over
|
54,293,241 | 46,928,443 | 49,979,702 | |||||||||
Other time deposits
|
71,541,368 | 74,023,096 | 76,353,001 | |||||||||
Total deposits
|
455,064,919 | 481,552,569 | 444,459,104 | |||||||||
Federal funds purchased and other borrowed funds
|
19,915,000 | 0 | 22,055,000 | |||||||||
Repurchase agreements
|
23,583,153 | 29,644,615 | 27,397,370 | |||||||||
Capital lease obligations
|
677,251 | 711,042 | 743,508 | |||||||||
Junior subordinated debentures
|
12,887,000 | 12,887,000 | 12,887,000 | |||||||||
Accrued interest and other liabilities
|
2,723,488 | 2,736,201 | 2,724,749 | |||||||||
Total liabilities
|
514,850,811 | 527,531,427 | 510,266,731 | |||||||||
Shareholders' Equity
|
||||||||||||
Preferred stock, 1,000,000 shares authorized, 25 shares issued
|
||||||||||||
and outstanding ($100,000 liquidation value)
|
2,500,000 | 2,500,000 | 2,500,000 | |||||||||
Common stock - $2.50 par value; 15,000,000 shares authorized,
|
||||||||||||
5,110,096 shares issued at 06/30/14, 5,078,707 shares issued
|
||||||||||||
at 12/31/13, and 5,051,780 shares issued at 06/30/13
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12,775,241 | 12,696,768 | 12,629,450 | |||||||||
Additional paid-in capital
|
28,975,974 | 28,612,308 | 28,320,657 | |||||||||
Retained earnings
|
5,752,161 | 4,997,144 | 3,588,526 | |||||||||
Accumulated other comprehensive income (loss)
|
10,345 | (47,466 | ) | (38,145 | ) | |||||||
Less: treasury stock, at cost; 210,101 shares at 06/30/14,
|
||||||||||||
12/31/13 and 06/30/13
|
(2,622,777 | ) | (2,622,777 | ) | (2,622,777 | ) | ||||||
Total shareholders' equity
|
47,390,944 | 46,135,977 | 44,377,711 | |||||||||
Total liabilities and shareholders' equity
|
$ | 562,241,755 | $ | 573,667,404 | $ | 554,644,442 |
For The Quarters Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Interest income
|
||||||||
Interest and fees on loans
|
$ | 5,373,903 | $ | 5,444,092 | ||||
Interest on debt securities
|
||||||||
Taxable
|
73,040 | 85,301 | ||||||
Tax-exempt
|
241,342 | 258,637 | ||||||
Dividends
|
23,026 | 15,282 | ||||||
Interest on federal funds sold and overnight deposits
|
2,836 | 1,537 | ||||||
Total interest income
|
5,714,147 | 5,804,849 | ||||||
Interest expense
|
||||||||
Interest on deposits
|
642,719 | 733,372 | ||||||
Interest on federal funds purchased and other borrowed funds
|
20,450 | 20,671 | ||||||
Interest on repurchase agreements
|
14,385 | 33,034 | ||||||
Interest on junior subordinated debentures
|
100,442 | 105,326 | ||||||
Total interest expense
|
777,996 | 892,403 | ||||||
Net interest income
|
4,936,151 | 4,912,446 | ||||||
Provision for loan losses
|
135,000 | 120,000 | ||||||
Net interest income after provision for loan losses
|
4,801,151 | 4,792,446 | ||||||
Non-interest income
|
||||||||
Service fees
|
658,972 | 627,981 | ||||||
Income from sold loans
|
260,330 | 451,934 | ||||||
Other income from loans
|
122,066 | 190,376 | ||||||
Net realized gain on sale of securities available-for-sale
|
21,828 | 0 | ||||||
Other income
|
274,026 | 250,567 | ||||||
Total non-interest income
|
1,337,222 | 1,520,858 | ||||||
Non-interest expense
|
||||||||
Salaries and wages
|
1,650,000 | 1,609,601 | ||||||
Employee benefits
|
573,501 | 622,454 | ||||||
Occupancy expenses, net
|
623,843 | 613,483 | ||||||
Other expenses
|
1,641,062 | 1,972,725 | ||||||
Total non-interest expense
|
4,488,406 | 4,818,263 | ||||||
Income before income taxes
|
1,649,967 | 1,495,041 | ||||||
Income tax expense
|
365,581 | 256,697 | ||||||
Net income
|
$ | 1,284,386 | $ | 1,238,344 | ||||
Earnings per common share
|
$ | 0.26 | $ | 0.25 | ||||
Weighted average number of common shares
|
||||||||
used in computing earnings per share
|
4,889,257 | 4,831,307 | ||||||
Dividends declared per common share
|
$ | 0.16 | $ | 0.14 | ||||
Book value per common share outstanding at June 30,
|
$ | 9.16 | $ | 8.65 |
For The Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Interest income
|
||||||||
Interest and fees on loans
|
$ | 10,644,679 | $ | 10,651,981 | ||||
Interest on debt securities
|
||||||||
Taxable
|
139,384 | 162,503 | ||||||
Tax-exempt
|
497,970 | 514,183 | ||||||
Dividends
|
46,310 | 30,361 | ||||||
Interest on federal funds sold and overnight deposits
|
4,080 | 7,869 | ||||||
Total interest income
|
11,332,423 | 11,366,897 | ||||||
Interest expense
|
||||||||
Interest on deposits
|
1,299,974 | 1,507,142 | ||||||
Interest on federal funds purchased and other borrowed funds
|
39,136 | 43,936 | ||||||
Interest on repurchase agreements
|
30,983 | 69,053 | ||||||
Interest on junior subordinated debentures
|
201,193 | 207,069 | ||||||
Total interest expense
|
1,571,286 | 1,827,200 | ||||||
Net interest income
|
9,761,137 | 9,539,697 | ||||||
Provision for loan losses
|
270,000 | 326,250 | ||||||
Net interest income after provision for loan losses
|
9,491,137 | 9,213,447 | ||||||
Non-interest income
|
||||||||
Service fees
|
1,305,785 | 1,186,932 | ||||||
Income from sold loans
|
509,460 | 839,525 | ||||||
Other income from loans
|
266,466 | 333,689 | ||||||
Net realized gain on sale of securities available-for-sale
|
21,828 | 0 | ||||||
Other income
|
547,184 | 528,904 | ||||||
Total non-interest income
|
2,650,723 | 2,889,050 | ||||||
Non-interest expense
|
||||||||
Salaries and wages
|
3,300,000 | 3,266,786 | ||||||
Employee benefits
|
1,204,698 | 1,231,744 | ||||||
Occupancy expenses, net
|
1,308,041 | 1,311,298 | ||||||
Other expenses
|
3,387,863 | 3,597,724 | ||||||
Total non-interest expense
|
9,200,602 | 9,407,552 | ||||||
Income before income taxes
|
2,941,258 | 2,694,945 | ||||||
Income tax expense
|
585,307 | 414,823 | ||||||
Net income
|
$ | 2,355,951 | $ | 2,280,122 | ||||
Earnings per common share
|
$ | 0.47 | $ | 0.46 | ||||
Weighted average number of common shares
|
||||||||
used in computing earnings per share
|
4,880,969 | 4,823,988 | ||||||
Dividends declared per common share
|
$ | 0.32 | $ | 0.28 | ||||
Book value per common share outstanding at June 30,
|
$ | 9.16 | $ | 8.65 |
For The Quarters Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Net income
|
$ | 1,284,386 | $ | 1,238,344 | ||||
Other comprehensive income (loss), net of tax:
|
||||||||
Unrealized holding gain (loss) on available-for-sale securities
|
||||||||
arising during the period
|
47,464 | (294,335 | ) | |||||
Reclassification adjustment for gain realized in income
|
(21,828 | ) | 0 | |||||
Net change in unrealized gain (loss)
|
25,636 | (294,335 | ) | |||||
Tax effect
|
(8,716 | ) | 100,074 | |||||
Other comprehensive income (loss), net of tax
|
16,920 | (194,261 | ) | |||||
Total comprehensive income
|
$ | 1,301,306 | $ | 1,044,083 |
For The Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Net income
|
$ | 2,355,951 | $ | 2,280,122 | ||||
Other comprehensive income (loss), net of tax:
|
||||||||
Unrealized holding gain (loss) on available-for-sale securities
|
||||||||
arising during the period
|
109,420 | (318,035 | ) | |||||
Reclassification adjustment for gain realized in income
|
(21,828 | ) | 0 | |||||
Net change in unrealized gain (loss)
|
87,592 | (318,035 | ) | |||||
Tax effect
|
(29,781 | ) | 108,132 | |||||
Other comprehensive income (loss), net of tax
|
57,811 | (209,903 | ) | |||||
Total comprehensive income
|
$ | 2,413,762 | $ | 2,070,219 |
For The Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$ | 2,355,951 | $ | 2,280,122 | ||||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities:
|
||||||||
Depreciation and amortization, bank premises and equipment
|
488,888 | 515,185 | ||||||
Provision for loan losses
|
270,000 | 326,250 | ||||||
Deferred income tax
|
(75,275 | ) | (180,802 | ) | ||||
Gain on sale of securities available-for-sale
|
(21,828 | ) | 0 | |||||
Gain on sale of loans
|
(251,370 | ) | (452,096 | ) | ||||
Loss (gain) on sale of OREO
|
1,840 | (9,728 | ) | |||||
Gain on Trust LLC
|
(163,260 | ) | (138,402 | ) | ||||
Amortization of bond premium, net
|
283,156 | 236,566 | ||||||
Proceeds from sales of loans held for sale
|
10,147,291 | 16,843,986 | ||||||
Originations of loans held for sale
|
(10,356,676 | ) | (15,909,303 | ) | ||||
Increase in taxes payable
|
542,007 | 544,931 | ||||||
Decrease in interest receivable
|
333,530 | 2,848 | ||||||
Amortization of FDIC insurance assessment
|
0 | 775,595 | ||||||
Decrease (increase) in mortgage servicing rights
|
4,366 | (126,968 | ) | |||||
Increase in other assets
|
(154,554 | ) | (318,581 | ) | ||||
Increase in cash surrender value of bank owned life insurance
|
(54,810 | ) | (57,205 | ) | ||||
Amortization of core deposit intangible
|
136,350 | 136,350 | ||||||
Amortization of limited partnerships
|
295,560 | 289,140 | ||||||
Decrease (increase) in unamortized loan costs
|
12,192 | (78,123 | ) | |||||
Decrease in interest payable
|
(4,937 | ) | (17,871 | ) | ||||
(Decrease) increase in accrued expenses
|
(59,879 | ) | 158,099 | |||||
(Decrease) increase in other liabilities
|
(7,032 | ) | 10,182 | |||||
Net cash provided by operating activities
|
3,721,510 | 4,830,175 | ||||||
Cash Flows from Investing Activities:
|
||||||||
Investments - held-to-maturity
|
||||||||
Maturities and pay downs
|
23,035,127 | 26,801,004 | ||||||
Purchases
|
(8,064,774 | ) | (9,041,386 | ) | ||||
Investments - available-for-sale
|
||||||||
Maturities, calls, pay downs and sales
|
16,527,429 | 3,000,000 | ||||||
Purchases
|
(12,711,520 | ) | (7,268,244 | ) | ||||
Proceeds from redemption of restricted equity securities
|
300,400 | 388,500 | ||||||
Decrease in limited partnership contributions payable
|
0 | (527,000 | ) | |||||
Increase in loans, net
|
(11,019,180 | ) | (9,865,963 | ) | ||||
Capital expenditures, net of proceeds from sales of bank premises and equipment
|
(282,170 | ) | (374,041 | ) | ||||
Proceeds from sales of OREO
|
237,865 | 204,728 | ||||||
Recoveries of loans charged off
|
35,703 | 40,133 | ||||||
Net cash provided by investing activities
|
8,058,880 | 3,357,731 |
2014
|
2013
|
|||||||
Cash Flows from Financing Activities:
|
||||||||
Net decrease in demand and interest-bearing transaction accounts
|
(22,585,289 | ) | (25,775,860 | ) | ||||
Net decrease in money market and savings accounts
|
(8,785,431 | ) | (10,068,534 | ) | ||||
Net increase in time deposits
|
4,883,070 | 4,806,639 | ||||||
Net decrease in repurchase agreements
|
(6,061,462 | ) | (6,752,238 | ) | ||||
Net increase in short-term borrowings
|
13,915,000 | 22,055,000 | ||||||
Proceeds from long-term borrowings
|
6,000,000 | 0 | ||||||
Repayments on long-term borrowings
|
0 | (6,000,000 | ) | |||||
Decrease in capital lease obligations
|
(33,791 | ) | (31,193 | ) | ||||
Dividends paid on preferred stock
|
(40,625 | ) | (40,625 | ) | ||||
Dividends paid on common stock
|
(1,059,035 | ) | (980,621 | ) | ||||
Net cash used in financing activities
|
(13,767,563 | ) | (22,787,432 | ) | ||||
Net decrease in cash and cash equivalents
|
(1,987,173 | ) | (14,599,526 | ) | ||||
Cash and cash equivalents:
|
||||||||
Beginning
|
18,329,989 | 29,881,840 | ||||||
Ending
|
$ | 16,342,816 | $ | 15,282,314 | ||||
Supplemental Schedule of Cash Paid During the Period
|
||||||||
Interest
|
$ | 1,576,223 | $ | 1,845,071 | ||||
Income taxes
|
$ | 44,931 | $ | 0 | ||||
Supplemental Schedule of Noncash Investing and Financing Activities:
|
||||||||
Change in unrealized gain (loss) on securities available-for-sale
|
$ | 87,592 | $ | (318,035 | ) | |||
Loans transferred to OREO
|
$ | 51,000 | $ | 1,291,916 | ||||
Common Shares Dividends Paid
|
||||||||
Dividends declared
|
$ | 1,560,309 | $ | 1,349,171 | ||||
Increase in dividends payable attributable to dividends declared
|
(59,135 | ) | (23,837 | ) | ||||
Dividends reinvested
|
(442,139 | ) | (344,713 | ) | ||||
$ | 1,059,035 | $ | 980,621 |
For The Quarters Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Net income, as reported
|
$ | 1,284,386 | $ | 1,238,344 | ||||
Less: dividends to preferred shareholders
|
20,312 | 20,312 | ||||||
Net income available to common shareholders
|
$ | 1,264,074 | $ | 1,218,032 | ||||
Weighted average number of common shares
|
||||||||
used in calculating earnings per share
|
4,889,257 | 4,831,307 | ||||||
Earnings per common share
|
$ | 0.26 | $ | 0.25 |
For The Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Net income, as reported
|
$ | 2,355,951 | $ | 2,280,122 | ||||
Less: dividends to preferred shareholders
|
40,625 | 40,625 | ||||||
Net income available to common shareholders
|
$ | 2,315,326 | $ | 2,239,497 | ||||
Weighted average number of common shares
|
||||||||
used in calculating earnings per share
|
4,880,969 | 4,823,988 | ||||||
Earnings per common share
|
$ | 0.47 | $ | 0.46 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Securities AFS
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
June 30, 2014
|
||||||||||||||||
U.S. Government sponsored enterprise (GSE) debt securities
|
$ | 15,950,885 | $ | 80,833 | $ | 73,657 | $ | 15,958,061 | ||||||||
U.S. Government securities
|
5,518,770 | 14,716 | 480 | 5,533,006 | ||||||||||||
Agency mortgage-backed securities (Agency MBS)
|
9,713,629 | 3,847 | 9,585 | 9,707,891 | ||||||||||||
$ | 31,183,284 | $ | 99,396 | $ | 83,722 | $ | 31,198,958 | |||||||||
December 31, 2013
|
||||||||||||||||
U.S. GSE debt securities
|
$ | 29,220,333 | $ | 114,102 | $ | 195,521 | $ | 29,138,914 | ||||||||
U.S. Government securities
|
6,040,188 | 10,955 | 1,455 | 6,049,688 | ||||||||||||
$ | 35,260,521 | $ | 125,057 | $ | 196,976 | $ | 35,188,602 | |||||||||
June 30, 2013
|
||||||||||||||||
U.S. GSE debt securities
|
$ | 37,599,138 | $ | 134,273 | $ | 194,686 | $ | 37,538,725 | ||||||||
U.S. Government securities
|
7,058,360 | 9,107 | 6,490 | 7,060,977 | ||||||||||||
$ | 44,657,498 | $ | 143,380 | $ | 201,176 | $ | 44,599,702 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Securities HTM
|
Cost
|
Gains
|
Losses
|
Value*
|
||||||||||||
June 30, 2014
|
||||||||||||||||
States and political subdivisions
|
$ | 22,966,558 | $ | 406,442 | $ | 0 | $ | 23,373,000 | ||||||||
December 31, 2013
|
||||||||||||||||
States and political subdivisions
|
$ | 37,936,911 | $ | 433,089 | $ | 0 | $ | 38,370,000 | ||||||||
June 30, 2013
|
||||||||||||||||
States and political subdivisions
|
$ | 24,105,937 | $ | 362,063 | $ | 0 | $ | 24,468,000 |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
June 30, 2014
|
||||||||
Due in one year or less
|
$ | 2,025,196 | $ | 2,030,578 | ||||
Due from one to five years
|
19,444,459 | 19,460,489 | ||||||
Agency MBS*
|
9,713,629 | 9,707,891 | ||||||
$ | 31,183,284 | $ | 31,198,958 | |||||
December 31, 2013
|
||||||||
Due in one year or less
|
$ | 4,508,181 | $ | 4,510,923 | ||||
Due from one to five years
|
30,752,340 | 30,677,679 | ||||||
$ | 35,260,521 | $ | 35,188,602 | |||||
June 30, 2013
|
||||||||
Due in one year or less
|
$ | 9,667,950 | $ | 9,683,707 | ||||
Due from one to five years
|
32,739,548 | 32,737,439 | ||||||
Due from five to ten years
|
2,250,000 | 2,178,556 | ||||||
$ | 44,657,498 | $ | 44,599,702 |
Amortized
|
Fair
|
|||||||
Cost
|
Value*
|
|||||||
June 30, 2014
|
||||||||
Due in one year or less
|
$ | 12,616,400 | $ | 12,616,000 | ||||
Due from one to five years
|
4,239,436 | 4,341,000 | ||||||
Due from five to ten years
|
2,381,853 | 2,484,000 | ||||||
Due after ten years
|
3,728,869 | 3,932,000 | ||||||
$ | 22,966,558 | $ | 23,373,000 | |||||
December 31, 2013
|
||||||||
Due in one year or less
|
$ | 27,615,731 | $ | 27,616,000 | ||||
Due from one to five years
|
3,939,950 | 4,048,000 | ||||||
Due from five to ten years
|
2,592,045 | 2,700,000 | ||||||
Due after ten years
|
3,789,185 | 4,006,000 | ||||||
$ | 37,936,911 | $ | 38,370,000 | |||||
June 30, 2013
|
||||||||
Due in one year or less
|
$ | 14,946,438 | $ | 14,946,000 | ||||
Due from one to five years
|
3,855,882 | 3,947,000 | ||||||
Due from five to ten years
|
2,008,416 | 2,099,000 | ||||||
Due after ten years
|
3,295,201 | 3,476,000 | ||||||
$ | 24,105,937 | $ | 24,468,000 |
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
|||||||||||||||||||
June 30, 2014
|
||||||||||||||||||||||||
U.S. GSE debt securities
|
$ | 0 | $ | 0 | $ | 5,176,343 | $ | 73,657 | $ | 5,176,343 | $ | 73,657 | ||||||||||||
U.S. Government securities
|
1,490,193 | 480 | 0 | 0 | 1,490,193 | 480 | ||||||||||||||||||
Agency MBS
|
4,937,780 | 9,585 | 0 | 0 | 4,937,780 | 9,585 | ||||||||||||||||||
$ | 6,427,973 | $ | 10,065 | $ | 5,176,343 | $ | 73,657 | $ | 11,604,316 | $ | 83,722 | |||||||||||||
December 31, 2013
|
||||||||||||||||||||||||
U.S. GSE debt securities
|
$ | 11,094,830 | $ | 194,188 | $ | 1,004,235 | $ | 1,333 | $ | 12,099,065 | $ | 195,521 | ||||||||||||
U.S. Government securities
|
1,034,336 | 1,455 | 0 | 0 | 1,034,336 | 1,455 | ||||||||||||||||||
$ | 12,129,166 | $ | 195,643 | $ | 1,004,235 | $ | 1,333 | $ | 13,133,401 | $ | 196,976 | |||||||||||||
June 30, 2013
|
||||||||||||||||||||||||
U.S. GSE debt securities
|
$ | 14,208,511 | $ | 194,686 | $ | 0 | $ | 0 | $ | 14,208,511 | $ | 194,686 | ||||||||||||
U.S. Government securities
|
2,040,234 | 6,490 | 0 | 0 | 2,040,234 | 6,490 | ||||||||||||||||||
$ | 16,248,745 | $ | 201,176 | $ | 0 | $ | 0 | $ | 16,248,745 | $ | 201,176 |
June 30,
|
December 31,
|
June 30,
|
||||||||||
2014
|
2013
|
2013
|
||||||||||
Commercial & industrial
|
$ | 64,475,384 | $ | 55,619,285 | $ | 57,608,840 | ||||||
Commercial real estate
|
164,302,843 | 156,935,803 | 138,664,212 | |||||||||
Residential real estate - 1st lien
|
169,367,709 | 172,847,074 | 173,883,158 | |||||||||
Residential real estate - Jr lien
|
44,564,026 | 45,687,405 | 45,145,675 | |||||||||
Consumer
|
7,883,342 | 8,819,359 | 9,491,326 | |||||||||
450,593,304 | 439,908,926 | 424,793,211 | ||||||||||
Deduct (add):
|
||||||||||||
Allowance for loan losses
|
4,876,816 | 4,854,915 | 4,522,179 | |||||||||
Deferred net loan costs
|
(288,237 | ) | (300,429 | ) | (247,624 | ) | ||||||
4,588,579 | 4,554,486 | 4,274,555 | ||||||||||
Net Loans
|
$ | 446,004,725 | $ | 435,354,440 | $ | 420,518,656 |
90 Days or
|
||||||||||||||||||||||||||||
90 Days
|
Total
|
Non-Accrual
|
More
|
|||||||||||||||||||||||||
June 30, 2014
|
30-89 Days
|
or More
|
Past Due
|
Current
|
Total Loans
|
Loans
|
and Accruing
|
|||||||||||||||||||||
Commercial & industrial
|
$ | 373,363 | $ | 605,406 | $ | 978,769 | $ | 63,496,615 | $ | 64,475,384 | $ | 1,347,748 | $ | 102,961 | ||||||||||||||
Commercial real estate
|
1,378,654 | 94,609 | 1,473,263 | 162,829,580 | 164,302,843 | 1,661,324 | 5,313 | |||||||||||||||||||||
Residential real estate - 1st lien
|
2,542,507 | 991,146 | 3,533,653 | 165,834,056 | 169,367,709 | 1,943,475 | 231,085 | |||||||||||||||||||||
Residential real estate - Jr lien
|
228,014 | 110,451 | 338,465 | 44,225,561 | 44,564,026 | 453,304 | 57,241 | |||||||||||||||||||||
Consumer
|
54,479 | 17,927 | 72,406 | 7,810,936 | 7,883,342 | 0 | 17,927 | |||||||||||||||||||||
Total
|
$ | 4,577,017 | $ | 1,819,539 | $ | 6,396,556 | $ | 444,196,748 | $ | 450,593,304 | $ | 5,405,851 | $ | 414,527 |
90 Days or
|
||||||||||||||||||||||||||||
90 Days
|
Total
|
Non-Accrual
|
More
|
|||||||||||||||||||||||||
December 31, 2013
|
30-89 Days
|
or More
|
Past Due
|
Current
|
Total Loans
|
Loans
|
and Accruing
|
|||||||||||||||||||||
Commercial & industrial
|
$ | 1,060,971 | $ | 310,669 | $ | 1,371,640 | $ | 54,247,645 | $ | 55,619,285 | $ | 527,105 | $ | 21,902 | ||||||||||||||
Commercial real estate
|
713,160 | 215,507 | 928,667 | 156,007,136 | 156,935,803 | 1,403,541 | 5,313 | |||||||||||||||||||||
Residential real estate - 1st lien
|
5,184,457 | 1,655,950 | 6,840,407 | 166,006,667 | 172,847,074 | 2,203,106 | 817,109 | |||||||||||||||||||||
Residential real estate - Jr lien
|
533,134 | 289,169 | 822,303 | 44,865,102 | 45,687,405 | 593,125 | 56,040 | |||||||||||||||||||||
Consumer
|
136,922 | 7,784 | 144,706 | 8,674,653 | 8,819,359 | 0 | 7,784 | |||||||||||||||||||||
Total
|
$ | 7,628,644 | $ | 2,479,079 | $ | 10,107,723 | $ | 429,801,203 | $ | 439,908,926 | $ | 4,726,877 | $ | 908,148 |
90 Days or
|
||||||||||||||||||||||||||||
90 Days
|
Total
|
Non-Accrual
|
More
|
|||||||||||||||||||||||||
June 30, 2013
|
30-89 Days
|
or More
|
Past Due
|
Current
|
Total Loans
|
Loans
|
and Accruing
|
|||||||||||||||||||||
Commercial & industrial
|
$ | 572,834 | $ | 29,329 | $ | 602,163 | $ | 57,006,677 | $ | 57,608,840 | $ | 497,287 | $ | 0 | ||||||||||||||
Commercial real estate
|
1,251,943 | 213,084 | 1,465,027 | 137,199,185 | 138,664,212 | 1,165,336 | 45,653 | |||||||||||||||||||||
Residential real estate - 1st lien
|
1,933,003 | 1,143,585 | 3,076,588 | 170,806,570 | 173,883,158 | 1,660,626 | 596,814 | |||||||||||||||||||||
Residential real estate - Jr lien
|
292,954 | 41,068 | 334,022 | 44,811,653 | 45,145,675 | 348,815 | 5,951 | |||||||||||||||||||||
Consumer
|
75,781 | 0 | 75,781 | 9,415,545 | 9,491,326 | 0 | 0 | |||||||||||||||||||||
Total
|
$ | 4,126,515 | $ | 1,427,066 | $ | 5,553,581 | $ | 419,239,630 | $ | 424,793,211 | $ | 3,672,064 | $ | 648,418 |
Residential
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||||||
& Industrial
|
Real Estate
|
1st Lien
|
Jr Lien
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||
Beginning balance
|
$ | 556,223 | $ | 2,172,678 | $ | 1,396,934 | $ | 348,738 | $ | 100,386 | $ | 262,619 | $ | 4,837,578 | ||||||||||||||
Charge-offs
|
(70,534 | ) | (30,819 | ) | 0 | 0 | (14,241 | ) | 0 | (115,594 | ) | |||||||||||||||||
Recoveries
|
2,124 | 0 | 1,725 | 60 | 15,923 | 0 | 19,832 | |||||||||||||||||||||
Provision (credit)
|
199,603 | 13,879 | (61,648 | ) | (54,184 | ) | (17,953 | ) | 55,303 | 135,000 | ||||||||||||||||||
Ending balance
|
$ | 687,416 | $ | 2,155,738 | $ | 1,337,011 | $ | 294,614 | $ | 84,115 | $ | 317,922 | $ | 4,876,816 |
Residential
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||||||
& Industrial
|
Real Estate
|
1st Lien
|
Jr Lien
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||
Beginning balance
|
$ | 516,382 | $ | 2,143,398 | $ | 1,452,184 | $ | 366,471 | $ | 105,279 | $ | 271,201 | $ | 4,854,915 | ||||||||||||||
Charge-offs
|
(87,214 | ) | (130,819 | ) | 0 | 0 | (65,769 | ) | 0 | (283,802 | ) | |||||||||||||||||
Recoveries
|
2,236 | 0 | 11,098 | 120 | 22,249 | 0 | 35,703 | |||||||||||||||||||||
Provision (credit)
|
256,012 | 143,159 | (126,271 | ) | (71,977 | ) | 22,356 | 46,721 | 270,000 | |||||||||||||||||||
Ending balance
|
$ | 687,416 | $ | 2,155,738 | $ | 1,337,011 | $ | 294,614 | $ | 84,115 | $ | 317,922 | $ | 4,876,816 | ||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||
Evaluated for impairment
|
||||||||||||||||||||||||||||
Individually
|
$ | 99,300 | $ | 18,900 | $ | 100,600 | $ | 13,100 | $ | 0 | $ | 0 | $ | 231,900 | ||||||||||||||
Collectively
|
588,116 | 2,136,838 | 1,236,411 | 281,514 | 84,115 | 317,922 | 4,644,916 | |||||||||||||||||||||
Total
|
$ | 687,416 | $ | 2,155,738 | $ | 1,337,011 | $ | 294,614 | $ | 84,115 | $ | 317,922 | $ | 4,876,816 | ||||||||||||||
Loans evaluated for impairment | ||||||||||||||||||||||||||||
Individually
|
$ | 1,233,885 | $ | 1,558,186 | $ | 1,374,851 | $ | 370,775 | $ | 0 | $ | 4,537,697 | ||||||||||||||||
Collectively
|
63,241,499 | 162,744,657 | 167,992,858 | 44,193,251 | 7,883,342 | 446,055,607 | ||||||||||||||||||||||
Total
|
$ | 64,475,384 | $ | 164,302,843 | $ | 169,367,709 | $ | 44,564,026 | $ | 7,883,342 | $ | 450,593,304 |
Residential
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||||||
& Industrial
|
Real Estate
|
1
st
Lien
|
Jr Lien
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||
Beginning balance
|
$ | 428,381 | $ | 1,536,440 | $ | 1,563,576 | $ | 332,556 | $ | 138,699 | $ | 312,428 | $ | 4,312,080 | ||||||||||||||
Charge-offs
|
(83,344 | ) | (124,849 | ) | (56,430 | ) | (56,797 | ) | (67,009 | ) | 0 | (388,429 | ) | |||||||||||||||
Recoveries
|
2,953 | 185,791 | 15,819 | 21,277 | 35,424 | 0 | 261,264 | |||||||||||||||||||||
Provision (credit)
|
168,392 | 546,016 | (70,781 | ) | 69,435 | (1,835 | ) | (41,227 | ) | 670,000 | ||||||||||||||||||
Ending balance
|
$ | 516,382 | $ | 2,143,398 | $ | 1,452,184 | $ | 366,471 | $ | 105,279 | $ | 271,201 | $ | 4,854,915 | ||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||
Evaluated for impairment
|
||||||||||||||||||||||||||||
Individually
|
$ | 27,500 | $ | 147,700 | $ | 99,700 | $ | 76,500 | $ | 0 | $ | 0 | $ | 351,400 | ||||||||||||||
Collectively
|
488,882 | 1,995,698 | 1,352,484 | 289,971 | 105,279 | 271,201 | 4,503,515 | |||||||||||||||||||||
Total
|
$ | 516,382 | $ | 2,143,398 | $ | 1,452,184 | $ | 366,471 | $ | 105,279 | $ | 271,201 | $ | 4,854,915 | ||||||||||||||
Loans evaluated for impairment
|
||||||||||||||||||||||||||||
Individually
|
$ | 373,696 | $ | 1,386,477 | $ | 1,788,793 | $ | 559,250 | $ | 0 | $ | 4,108,216 | ||||||||||||||||
Collectively
|
55,245,589 | 155,549,326 | 171,058,281 | 45,128,155 | 8,819,359 | 435,800,710 | ||||||||||||||||||||||
Total
|
$ | 55,619,285 | $ | 156,935,803 | $ | 172,847,074 | $ | 45,687,405 | $ | 8,819,359 | $ | 439,908,926 |
Residential
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||||||
& Industrial
|
Real Estate
|
1st Lien
|
Jr Lien
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||
Beginning balance
|
$ | 436,389 | $ | 1,763,037 | $ | 1,511,139 | $ | 386,070 | $ | 119,032 | $ | 277,717 | $ | 4,493,384 | ||||||||||||||
Charge-offs
|
(1,352 | ) | (107,936 | ) | (3,052 | ) | 0 | (8,783 | ) | 0 | (121,123 | ) | ||||||||||||||||
Recoveries
|
792 | 0 | 3,010 | 60 | 26,056 | 0 | 29,918 | |||||||||||||||||||||
Provision (credit)
|
79,415 | 42,939 | 16,865 | 28,031 | (20,057 | ) | (27,193 | ) | 120,000 | |||||||||||||||||||
Ending balance
|
$ | 515,244 | $ | 1,698,040 | $ | 1,527,962 | $ | 414,161 | $ | 116,248 | $ | 250,524 | $ | 4,522,179 |
Residential
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||||||
& Industrial
|
Real Estate
|
1st Lien
|
Jr Lien
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||
Beginning balance
|
$ | 428,381 | $ | 1,536,440 | $ | 1,563,576 | $ | 332,556 | $ | 138,699 | $ | 312,428 | $ | 4,312,080 | ||||||||||||||
Charge-offs
|
(19,287 | ) | (107,936 | ) | (3,052 | ) | 0 | (26,009 | ) | 0 | (156,284 | ) | ||||||||||||||||
Recoveries
|
992 | 0 | 8,636 | 120 | 30,385 | 0 | 40,133 | |||||||||||||||||||||
Provision (credit)
|
105,158 | 269,536 | (41,198 | ) | 81,485 | (26,827 | ) | (61,904 | ) | 326,250 | ||||||||||||||||||
Ending balance
|
$ | 515,244 | $ | 1,698,040 | $ | 1,527,962 | $ | 414,161 | $ | 116,248 | $ | 250,524 | $ | 4,522,179 | ||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||
Evaluated for impairment
|
||||||||||||||||||||||||||||
Individually
|
$ | 0 | $ | 29,000 | $ | 121,700 | $ | 91,100 | $ | 0 | $ | 0 | $ | 241,800 | ||||||||||||||
Collectively
|
515,244 | 1,669,040 | 1,406,262 | 323,061 | 116,248 | 250,524 | 4,280,379 | |||||||||||||||||||||
Total
|
$ | 515,244 | $ | 1,698,040 | $ | 1,527,962 | $ | 414,161 | $ | 116,248 | $ | 250,524 | $ | 4,522,179 | ||||||||||||||
Loans evaluated for impairment | ||||||||||||||||||||||||||||
Individually
|
$ | 305,425 | $ | 1,068,160 | $ | 1,366,685 | $ | 348,815 | $ | 0 | $ | 3,089,085 | ||||||||||||||||
Collectively
|
57,303,415 | 137,596,052 | 172,516,473 | 44,796,860 | 9,491,326 | 421,704,126 | ||||||||||||||||||||||
Total
|
$ | 57,608,840 | $ | 138,664,212 | $ | 173,883,158 | $ | 45,145,675 | $ | 9,491,326 | $ | 424,793,211 |
As of June 30, 2014
|
||||||||||||||||||||
Unpaid
|
Average
|
Average
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Recorded
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment(1)
|
Investment(2)
|
||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||
Commercial & industrial
|
$ | 819,016 | $ | 884,377 | $ | 0 | $ | 552,178 | $ | 472,955 | ||||||||||
Commercial real estate
|
1,337,570 | 1,431,199 | 0 | 1,248,510 | 1,147,288 | |||||||||||||||
Residential real estate - 1st lien
|
832,008 | 905,092 | 0 | 1,042,268 | 1,146,323 | |||||||||||||||
Residential real estate - Jr lien
|
269,912 | 316,506 | 0 | 183,089 | 176,772 | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Commercial & industrial
|
414,869 | 415,759 | 99,300 | 238,953 | 179,031 | |||||||||||||||
Commercial real estate
|
220,616 | 231,221 | 18,900 | 165,405 | 257,481 | |||||||||||||||
Residential real estate - 1st lien
|
542,843 | 579,363 | 100,600 | 394,924 | 408,070 | |||||||||||||||
Residential real estate - Jr lien
|
100,863 | 109,217 | 13,100 | 176,875 | 249,621 | |||||||||||||||
Total
|
||||||||||||||||||||
Commercial & industrial
|
$ | 1,233,885 | $ | 1,300,136 | $ | 99,300 | $ | 791,131 | $ | 651,986 | ||||||||||
Commercial real estate
|
$ | 1,558,186 | $ | 1,662,420 | $ | 18,900 | $ | 1,413,915 | $ | 1,404,769 | ||||||||||
Residential real estate - 1st lien
|
$ | 1,374,851 | $ | 1,484,455 | $ | 100,600 | $ | 1,437,192 | $ | 1,554,393 | ||||||||||
Residential real estate - Jr lien
|
$ | 370,775 | $ | 425,723 | $ | 13,100 | $ | 359,964 | $ | 426,393 | ||||||||||
Total
|
$ | 4,537,697 | $ | 4,872,734 | $ | 231,900 | $ | 4,002,202 | $ | 4,037,541 |
As of December 31, 2013
|
2013
|
|||||||||||||||
Unpaid
|
Average
|
|||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
|||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
|||||||||||||
With no related allowance recorded
|
||||||||||||||||
Commercial & industrial
|
$ | 314,510 | $ | 363,618 | $ | 0 | $ | 339,519 | ||||||||
Commercial real estate
|
944,845 | 1,021,143 | 0 | 1,325,504 | ||||||||||||
Residential real estate - 1
st
lien
|
1,354,432 | 1,654,023 | 0 | 1,088,631 | ||||||||||||
Residential real estate - Jr lien
|
164,137 | 228,134 | 0 | 64,606 | ||||||||||||
With an allowance recorded
|
||||||||||||||||
Commercial & industrial
|
59,186 | 59,186 | 27,500 | 11,837 | ||||||||||||
Commercial real estate
|
441,632 | 446,963 | 147,700 | 272,174 | ||||||||||||
Residential real estate - 1
st
lien
|
434,361 | 474,496 | 99,700 | 515,685 | ||||||||||||
Residential real estate - Jr lien
|
395,113 | 429,167 | 76,500 | 380,855 | ||||||||||||
Total
|
||||||||||||||||
Commercial & industrial
|
$ | 373,696 | $ | 422,804 | $ | 27,500 | $ | 351,356 | ||||||||
Commercial real estate
|
$ | 1,386,477 | $ | 1,468,106 | $ | 147,700 | $ | 1,597,678 | ||||||||
Residential real estate - 1
st
lien
|
$ | 1,788,793 | $ | 2,128,519 | $ | 99,700 | $ | 1,604,316 | ||||||||
Residential real estate - Jr lien
|
$ | 559,250 | $ | 657,301 | $ | 76,500 | $ | 445,461 | ||||||||
Total
|
$ | 4,108,216 | $ | 4,676,730 | $ | 351,400 | $ | 3,998,811 |
As of June 30, 2013
|
||||||||||||||||||||
Unpaid
|
Average
|
Average
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Recorded
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment (1)
|
Investment (2)
|
||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||
Commercial & Industrial
|
$ | 305,425 | $ | 348,569 | $ | 0 | $ | 314,456 | $ | 354,692 | ||||||||||
Commercial real estate
|
971,245 | 1,030,645 | 0 | 1,360,330 | 1,494,425 | |||||||||||||||
Residential real estate – 1
st
lien
|
897,190 | 1,122,551 | 0 | 953,984 | 977,522 | |||||||||||||||
Residential real estate - Jr lien
|
24,591 | 32,254 | 0 | 20,143 | 18,660 | |||||||||||||||
With an allowance recorded
|
||||||||||||||||||||
Commercial & Industrial
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Commercial real estate
|
96,915 | 96,915 | 29,000 | 200,883 | 133,922 | |||||||||||||||
Residential real estate – 1
st
lien
|
469,495 | 539,218 | 121,700 | 474,361 | 522,028 | |||||||||||||||
Residential real estate - Jr lien
|
324,224 | 349,871 | 91,100 | 324,436 | 314,261 | |||||||||||||||
Total
|
||||||||||||||||||||
Commercial & Industrial
|
$ | 305,425 | $ | 348,569 | $ | 0 | $ | 314,456 | $ | 354,692 | ||||||||||
Commercial real estate
|
$ | 1,068,160 | $ | 1,127,560 | $ | 29,000 | $ | 1,561,213 | $ | 1,628,347 | ||||||||||
Residential real estate – 1
st
lien
|
$ | 1,366,685 | $ | 1,661,769 | $ | 121,700 | $ | 1,428,345 | $ | 1,499,550 | ||||||||||
Residential real estate - Jr lien
|
$ | 348,815 | $ | 382,125 | $ | 91,100 | $ | 344,579 | $ | 332,921 | ||||||||||
Total
|
$ | 3,089,085 | $ | 3,520,023 | $ | 241,800 | $ | 3,648,593 | $ | 3,815,510 |
Residential
|
Residential
|
|||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||
& Industrial
|
Real Estate
|
1st Lien
|
Jr Lien
|
Consumer
|
Total
|
|||||||||||||||||||
Group A
|
$ | 60,373,539 | $ | 155,124,213 | $ | 166,345,054 | $ | 43,883,107 | $ | 7,865,415 | $ | 433,591,328 | ||||||||||||
Group B
|
2,730,275 | 3,586,566 | 598,381 | 147,531 | 0 | 7,062,753 | ||||||||||||||||||
Group C
|
1,371,570 | 5,592,064 | 2,424,274 | 533,388 | 17,927 | 9,939,223 | ||||||||||||||||||
Total
|
$ | 64,475,384 | $ | 164,302,843 | $ | 169,367,709 | $ | 44,564,026 | $ | 7,883,342 | $ | 450,593,304 |
Residential
|
Residential
|
|||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||
& Industrial
|
Real Estate
|
1
st
Lien
|
Jr Lien
|
Consumer
|
Total
|
|||||||||||||||||||
Group A
|
$ | 51,740,744 | $ | 148,516,895 | $ | 169,771,357 | $ | 44,739,736 | $ | 8,800,365 | $ | 423,569,097 | ||||||||||||
Group B
|
2,824,169 | 3,292,200 | 160,468 | 460,844 | 0 | 6,737,681 | ||||||||||||||||||
Group C
|
1,054,372 | 5,126,708 | 2,915,249 | 486,825 | 18,994 | 9,602,148 | ||||||||||||||||||
Total
|
$ | 55,619,285 | $ | 156,935,803 | $ | 172,847,074 | $ | 45,687,405 | $ | 8,819,359 | $ | 439,908,926 |
Residential
|
Residential
|
|||||||||||||||||||||||
Commercial
|
Commercial
|
Real Estate
|
Real Estate
|
|||||||||||||||||||||
& Industrial
|
Real Estate
|
1
st
Lien
|
Jr Lien
|
Consumer
|
Total
|
|||||||||||||||||||
Group A
|
$ | 55,985,055 | $ | 131,939,691 | $ | 171,245,755 | $ | 44,215,183 | $ | 9,489,361 | $ | 412,875,045 | ||||||||||||
Group B
|
567,569 | 2,321,844 | 178,847 | 461,445 | 0 | 3,529,705 | ||||||||||||||||||
Group C
|
1,056,216 | 4,402,677 | 2,458,556 | 469,047 | 1,965 | 8,388,461 | ||||||||||||||||||
Total
|
$ | 57,608,840 | $ | 138,664,212 | $ | 173,883,158 | $ | 45,145,675 | $ | 9,491,326 | $ | 424,793,211 |
●
|
Reduced accrued interest;
|
●
|
Reduced the original contractual interest rate to a rate that is below the current market rate for the borrower;
|
●
|
Converted a variable-rate loan to a fixed-rate loan;
|
●
|
Extended the term of the loan beyond an insignificant delay;
|
●
|
Deferred or forgiven principal in an amount greater than three months of payments; or
|
●
|
Performed a refinancing and deferred or forgiven principal on the original loan.
|
For the quarter ended June 30, 2014
|
For the 6 months ended June 30, 2014
|
|||||||||||||||||||||
Number of
Contracts
|
Pre-
Modification
|
Post-
Modification
|
Number of
Contracts
|
Pre-
Modification
|
Post-
Modification
|
|||||||||||||||||
Residential real estate - 1st lien | 3 | $ | 218,330 | $ | 237,090 | 6 | $ | 480,899 | $ | 510,737 |
For the year ended December 31, 2013
|
|||||||||||
Pre-
|
Post-
|
||||||||||
Modification
|
Modification
|
||||||||||
Outstanding
|
Outstanding
|
||||||||||
Number of
|
Recorded
|
Recorded
|
|||||||||
Contracts
|
Investment
|
Investment
|
|||||||||
Residential real estate - 1
st
lien
|
4 | $ | 321,406 | $ | 330,266 | ||||||
Residential real estate - Jr lien
|
1 | 23,425 | 23,425 | ||||||||
Total
|
5 | $ | 344,831 | $ | 353,691 |
For the quarter and the six months ended June 30, 2013
|
|||||||||||
Pre-
|
Post-
|
||||||||||
Modification
|
Modification
|
||||||||||
Outstanding
|
Outstanding
|
||||||||||
Number of
|
Recorded
|
Recorded
|
|||||||||
Contracts
|
Investment
|
Investment
|
|||||||||
Residential real estate - Jr lien
|
1 | $ |
23,425
|
$ |
23,425
|
Number of
|
Recorded
|
||||||
Contracts
|
Investment
|
||||||
Residential real estate - 1
st
lien
|
5 | $ | 441,679 |
2014
|
$ | 136,345 | ||
2015
|
272,695 | |||
2016
|
272,695 | |||
2017
|
272,696 | |||
Total remaining core deposit intangible
|
$ | 954,431 |
Level 1
|
Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasury, other U.S. Government debt securities that are highly liquid and are actively traded in over-the-counter markets.
|
Level 2
|
Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes mortgage servicing rights, impaired loans and OREO.
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
|
June 30, 2014
|
Level 1
|
Level 2
|
Total
|
|||||||||
Assets: (market approach)
|
||||||||||||
U.S. GSE debt securities
|
$ | 0 | $ | 15,958,061 | $ | 15,958,061 | ||||||
U.S. Government securities
|
5,533,006 | 0 | 5,533,006 | |||||||||
Agency MBS
|
0 | 9,707,891 | 9,707,891 | |||||||||
December 31, 2013
|
||||||||||||
Assets: (market approach)
|
||||||||||||
U.S. GSE debt securities
|
$ | 0 | $ | 29,138,914 | $ | 29,138,914 | ||||||
U.S. Government securities
|
6,049,688 | 0 | 6,049,688 | |||||||||
June 30, 2013
|
||||||||||||
Assets: (market approach)
|
||||||||||||
U.S. GSE debt securities
|
$ | 0 | $ | 37,538,725 | $ | 37,538,725 | ||||||
U.S. Government securities
|
7,060,977 | 0 | 7,060,977 |
June 30, 2014
|
Level 2
|
|||
Assets: (market approach)
|
||||
Residential mortgage servicing rights
|
$ | 1,324,713 | ||
Impaired loans, net of related allowance
|
1,047,291 | |||
OREO
|
916,820 | |||
December 31, 2013
|
||||
Assets: (market approach)
|
||||
Residential mortgage servicing rights
|
$ | 1,329,079 | ||
Impaired loans, net of related allowance
|
978,892 | |||
OREO
|
1,105,525 | |||
June 30, 2013
|
||||
Assets: (market approach)
|
||||
Residential mortgage servicing rights
|
$ | 1,136,592 | ||
Impaired loans, net of related allowance
|
648,834 | |||
OREO
|
2,171,621 |
Fair
|
Fair
|
Fair
|
Fair
|
|||||||||||||||||
Carrying
|
Value
|
Value
|
Value
|
Value
|
||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 16,343 | $ | 16,343 | $ | 0 | $ | 0 | $ | 16,343 | ||||||||||
Securities held-to-maturity
|
22,967 | 0 | 23,373 | 0 | 23,373 | |||||||||||||||
Securities available-for-sale
|
31,199 | 5,533 | 25,666 | 0 | 31,199 | |||||||||||||||
Restricted equity securities
|
3,332 | 0 | 3,332 | 0 | 3,332 | |||||||||||||||
Loans and loans held-for-sale
|
||||||||||||||||||||
Commercial & industrial
|
63,742 | 0 | 1,135 | 64,023 | 65,158 | |||||||||||||||
Commercial real estate
|
162,031 | 0 | 1,539 | 165,635 | 167,174 | |||||||||||||||
Residential real estate - 1st lien
|
168,582 | 0 | 1,274 | 172,278 | 173,552 | |||||||||||||||
Residential real estate - Jr lien
|
44,238 | 0 | 358 | 44,839 | 45,197 | |||||||||||||||
Consumer
|
7,793 | 0 | 0 | 8,167 | 8,167 | |||||||||||||||
Mortgage servicing rights
|
1,325 | 0 | 1,523 | 0 | 1,523 | |||||||||||||||
Accrued interest receivable
|
1,445 | 0 | 1,445 | 0 | 1,445 | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Other deposits
|
428,186 | 0 | 428,924 | 0 | 428,924 | |||||||||||||||
Brokered deposits
|
26,879 | 0 | 26,884 | 0 | 26,884 | |||||||||||||||
Federal funds purchased and short-term borrowings
|
7,915 | 0 | 7,915 | 0 | 7,915 | |||||||||||||||
Long-term borrowings
|
6,000 | 0 | 6,000 | 0 | 6,000 | |||||||||||||||
Repurchase agreements
|
23,583 | 0 | 23,583 | 0 | 23,583 | |||||||||||||||
Capital lease obligations
|
677 | 0 | 677 | 0 | 677 | |||||||||||||||
Subordinated debentures
|
12,887 | 0 | 12,869 | 0 | 12,869 | |||||||||||||||
Accrued interest payable
|
70 | 0 | 70 | 0 | 70 |
Fair
|
Fair
|
Fair
|
Fair
|
|||||||||||||||||
Carrying
|
Value
|
Value
|
Value
|
Value
|
||||||||||||||||
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 18,330 | $ | 18,330 | $ | 0 | $ | 0 | $ | 18,330 | ||||||||||
Securities held-to-maturity
|
37,937 | 0 | 38,370 | 0 | 38,370 | |||||||||||||||
Securities available-for-sale
|
35,189 | 6,050 | 29,139 | 0 | 35,189 | |||||||||||||||
Restricted equity securities
|
3,633 | 0 | 3,633 | 0 | 3,633 | |||||||||||||||
Loans and loans held-for-sale
|
||||||||||||||||||||
Commercial & industrial
|
55,069 | 0 | 346 | 56,035 | 56,381 | |||||||||||||||
Commercial real estate
|
154,696 | 0 | 1,239 | 157,843 | 159,082 | |||||||||||||||
Residential real estate - 1
st
lien
|
171,498 | 0 | 1,689 | 174,776 | 176,465 | |||||||||||||||
Residential real estate - Jr lien
|
45,292 | 0 | 483 | 45,785 | 46,268 | |||||||||||||||
Consumer
|
8,708 | 0 | 0 | 9,130 | 9,130 | |||||||||||||||
Mortgage servicing rights
|
1,329 | 0 | 1,608 | 0 | 1,608 | |||||||||||||||
Accrued interest receivable
|
1,778 | 0 | 1,778 | 0 | 1,778 | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Other deposits
|
463,160 | 0 | 464,220 | 0 | 464,220 | |||||||||||||||
Brokered deposits
|
18,393 | 0 | 18,401 | 0 | 18,401 | |||||||||||||||
Repurchase agreements
|
29,645 | 0 | 29,645 | 0 | 29,645 | |||||||||||||||
Capital lease obligations
|
711 | 0 | 711 | 0 | 711 | |||||||||||||||
Subordinated debentures
|
12,887 | 0 | 12,880 | 0 | 12,880 | |||||||||||||||
Accrued interest payable
|
75 | 0 | 75 | 0 | 75 |
Fair
|
Fair
|
Fair
|
Fair
|
|||||||||||||||||
Carrying
|
Value
|
Value
|
Value
|
Value
|
||||||||||||||||
Amount |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 15,282 | $ | 15,282 | $ | 0 | $ | 0 | $ | 15,282 | ||||||||||
Securities held-to-maturity
|
24,106 | 0 | 24,468 | 0 | 24,468 | |||||||||||||||
Securities available-for-sale
|
44,600 | 7,061 | 37,539 | 0 | 44,600 | |||||||||||||||
Restricted equity securities
|
3,633 | 0 | 3,633 | 0 | 3,633 | |||||||||||||||
Loans and loans held-for-sale
|
||||||||||||||||||||
Commercial & industrial
|
57,060 | 0 | 305 | 57,740 | 58,045 | |||||||||||||||
Commercial real estate
|
136,884 | 0 | 1,039 | 137,558 | 138,597 | |||||||||||||||
Residential real estate -1
st
lien
|
173,272 | 0 | 1,245 | 177,208 | 178,453 | |||||||||||||||
Residential real estate - Jr lien
|
44,705 | 0 | 258 | 45,370 | 45,628 | |||||||||||||||
Consumer
|
9,369 | 0 | 0 | 9,851 | 9,851 | |||||||||||||||
Mortgage servicing rights
|
1,137 | 0 | 1,137 | 0 | 1,137 | |||||||||||||||
Accrued interest receivable
|
1,748 | 0 | 1,748 | 0 | 1,748 | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Other deposits
|
423,076 | 0 | 424,397 | 0 | 424,397 | |||||||||||||||
Brokered deposits
|
21,383 | 0 | 21,392 | 0 | 21,392 | |||||||||||||||
Federal funds purchased and short-term borrowings
|
22,055 | 0 | 22,055 | 0 | 22,055 | |||||||||||||||
Repurchase agreements
|
27,397 | 0 | 27,397 | 0 | 27,397 | |||||||||||||||
Capital lease obligations
|
744 | 0 | 744 | 0 | 744 | |||||||||||||||
Subordinated debentures
|
12,887 | 0 | 12,874 | 0 | 12,874 | |||||||||||||||
Accrued interest payable
|
75 | 0 | 75 | 0 | 75 |
June 30,
|
December 31,
|
June 30,
|
||||||||||
2014
|
2013
|
2013
|
||||||||||
Balance at beginning of year
|
$ | 1,329,079 | $ | 1,009,623 | $ | 1,009,623 | ||||||
Mortgage servicing rights capitalized
|
112,601 | 274,253 | 153,106 | |||||||||
Mortgage servicing rights amortized
|
(122,727 | ) | (317,865 | ) | (186,145 | ) | ||||||
Change in valuation allowance
|
5,760 | 363,068 | 160,008 | |||||||||
Balance at end of period
|
$ | 1,324,713 | $ | 1,329,079 | $ | 1,136,592 |
● | the allowance for loan losses; | |
● | other real estate owned (OREO); | |
● | valuation of residential mortgage servicing rights (MSRs); | |
● | other than temporary impairment of investment securities; and | |
● | the carrying value of goodwill. |
For The Quarters Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Return on Average Assets
|
0.90 | % | 0.88 | % | ||||
Return on Average Equity
|
10.91 | % | 11.23 | % |
For The Six Months Ended June 30,
|
||||||||
2014 | 2013 | |||||||
Return on Average Assets
|
0.83 | % | 0.81 | % | ||||
Return on Average Equity
|
10.15 | % | 10.48 | % |
June 30,
|
December 31,
|
June 30,
|
||||||||||
2014
|
2013
|
2013
|
||||||||||
Net loans
|
$ | 446,004,725 | $ | 435,354,440 | $ | 420,518,656 | ||||||
Total assets
|
562,241,755 | 573,667,404 | 554,644,442 | |||||||||
Total deposits
|
455,064,919 | 481,552,569 | 444,459,104 | |||||||||
Borrowed funds
|
19,915,000 | 0 | 22,055,000 | |||||||||
Total liabilities
|
514,850,811 | 527,531,427 | 510,266,731 | |||||||||
Total shareholders' equity
|
47,390,944 | 46,135,977 | 44,377,711 | |||||||||
Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Operating Data
|
||||||||
Total interest income
|
$ | 11,332,423 | $ | 11,366,897 | ||||
Total interest expense
|
1,571,286 | 1,827,200 | ||||||
Net interest income
|
9,761,137 | 9,539,697 | ||||||
Provision for loan losses
|
270,000 | 326,250 | ||||||
Net interest income after provision for loan losses
|
9,491,137 | 9,213,447 | ||||||
Non-interest income
|
2,650,723 | 2,889,050 | ||||||
Non-interest expense
|
9,200,602 | 9,407,552 | ||||||
Income before income taxes
|
2,941,258 | 2,694,945 | ||||||
Applicable income tax expense(1)
|
585,307 | 414,823 | ||||||
Net Income
|
$ | 2,355,951 | $ | 2,280,122 | ||||
Per Common Share Data
|
||||||||
Earnings per common share (2)
|
$ | 0.47 | $ | 0.46 | ||||
Dividends declared per common share
|
$ | 0.32 | $ | 0.28 | ||||
Book value per common share outstanding, period end
|
$ | 9.16 | $ | 8.65 | ||||
Weighted average number of common shares outstanding
|
4,880,969 | 4,823,988 | ||||||
Number of common shares outstanding, period end
|
4,899,995 | 4,841,679 |
For the Quarter Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Net interest income as presented
|
$ | 4,936,151 | $ | 4,912,446 | ||||
Effect of tax-exempt income
|
124,328 | 133,237 | ||||||
Net interest income, tax equivalent
|
$ | 5,060,479 | $ | 5,045,683 |
For the Quarter Ended June 30,
|
||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Average
|
Income/
|
Rate/
|
Average
|
Income/
|
Rate/
|
|||||||||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
Interest-Earning Assets
|
||||||||||||||||||||||||
Loans (1)
|
$ | 450,294,322 | $ | 5,373,903 | 4.79 | % | $ | 423,291,799 | $ | 5,444,092 | 5.16 | % | ||||||||||||
Taxable investment securities
|
30,894,207 | 73,040 | 0.95 | % | 45,233,154 | 85,301 | 0.76 | % | ||||||||||||||||
Tax-exempt investment securities
|
39,420,328 | 365,670 | 3.72 | % | 42,433,110 | 391,874 | 3.70 | % | ||||||||||||||||
Sweep and interest earning accounts
|
4,215,122 | 2,836 | 0.27 | % | 1,607,223 | 1,537 | 0.38 | % | ||||||||||||||||
Other investments (2)
|
3,821,784 | 23,026 | 2.42 | % | 4,019,850 | 15,282 | 1.52 | % | ||||||||||||||||
Total
|
$ | 528,645,763 | $ | 5,838,475 | 4.43 | % | $ | 516,585,136 | $ | 5,938,086 | 4.61 | % | ||||||||||||
Interest-Bearing Liabilities
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$ | 110,063,106 | $ | 57,926 | 0.21 | % | $ | 111,441,921 | $ | 69,798 | 0.25 | % | ||||||||||||
Money market accounts
|
82,360,369 | 209,803 | 1.02 | % | 92,272,194 | 244,489 | 1.06 | % | ||||||||||||||||
Savings deposits
|
75,552,538 | 23,674 | 0.13 | % | 68,861,949 | 25,538 | 0.15 | % | ||||||||||||||||
Time deposits
|
129,584,072 | 351,315 | 1.09 | % | 127,230,089 | 393,547 | 1.24 | % | ||||||||||||||||
Federal funds purchased and
|
||||||||||||||||||||||||
other borrowed funds
|
12,350,604 | 6,576 | 0.21 | % | 7,666,538 | 5,484 | 0.29 | % | ||||||||||||||||
Repurchase agreements
|
23,917,037 | 14,385 | 0.24 | % | 29,128,056 | 33,034 | 0.45 | % | ||||||||||||||||
Capital lease obligations
|
683,027 | 13,875 | 8.13 | % | 748,956 | 15,187 | 8.11 | % | ||||||||||||||||
Junior subordinated debentures
|
12,887,000 | 100,442 | 3.13 | % | 12,887,000 | 105,326 | 3.28 | % | ||||||||||||||||
Total
|
$ | 447,397,753 | $ | 777,996 | 0.70 | % | $ | 450,236,703 | $ | 892,403 | 0.80 | % | ||||||||||||
Net interest income
|
$ | 5,060,479 | $ | 5,045,683 | ||||||||||||||||||||
Net interest spread (3)
|
3.73 | % | 3.81 | % | ||||||||||||||||||||
Net interest margin (4)
|
3.84 | % | 3.92 | % |
(1) | Included in gross loans are non-accrual loans with average balances of $5,228,954 and $3,834,563 for the quarters ended June 30, 2014 and 2013, respectively. Loans are stated before deduction of unearned discount and allowance for loans losses. |
(2) | Included in other investments is the Company’s FHLBB Stock with average balances of $2,846,634 and $3,044,700 for the quarters ended June 30, 2014 and 2013, respectively, and dividend payout rates of approximately 1.49% and 0.40%, respectively, per quarter. |
(3) | Net interest spread is the difference between the average yield on average interest-earning assets and the average rate paid on average interest-bearing liabilities. |
(4) | Net interest margin is net interest income divided by average earning assets. |
For the Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Net interest income as presented
|
$ | 9,761,137 | $ | 9,539,697 | ||||
Effect of tax-exempt income
|
256,530 | 264,882 | ||||||
Net interest income, tax equivalent
|
$ | 10,017,667 | $ | 9,804,579 |
For the Six Months Ended June 30,
|
||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Average
|
Income/
|
Rate/
|
Average
|
Income/
|
Rate/
|
|||||||||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
Interest-Earning Assets
|
||||||||||||||||||||||||
Loans (1)
|
$ | 448,006,236 | $ | 10,644,679 | 4.79 | % | $ | 419,786,238 | $ | 10,651,981 | 5.12 | % | ||||||||||||
Taxable investment securities
|
31,600,140 | 139,384 | 0.89 | % | 43,873,434 | 162,503 | 0.75 | % | ||||||||||||||||
Tax-exempt investment securities
|
39,086,004 | 754,500 | 3.89 | % | 42,461,107 | 779,065 | 3.70 | % | ||||||||||||||||
Sweep and interest earning accounts
|
3,077,958 | 4,080 | 0.27 | % | 5,213,117 | 7,869 | 0.30 | % | ||||||||||||||||
Other investments (2)
|
3,920,270 | 46,310 | 2.38 | % | 4,167,952 | 30,361 | 1.47 | % | ||||||||||||||||
Total
|
$ | 525,690,608 | $ | 11,588,953 | 4.45 | % | $ | 515,501,848 | $ | 11,631,779 | 4.55 | % | ||||||||||||
Interest-Bearing Liabilities
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$ | 113,564,182 | $ | 121,358 | 0.22 | % | $ | 115,871,187 | $ | 155,767 | 0.27 | % | ||||||||||||
Money market accounts
|
82,929,078 | 421,232 | 1.02 | % | 92,909,765 | 503,272 | 1.09 | % | ||||||||||||||||
Savings deposits
|
73,915,242 | 46,307 | 0.13 | % | 67,847,270 | 51,416 | 0.15 | % | ||||||||||||||||
Time deposits
|
125,852,809 | 711,077 | 1.14 | % | 124,751,920 | 796,686 | 1.29 | % | ||||||||||||||||
Federal funds purchased and
|
||||||||||||||||||||||||
other borrowed funds
|
10,059,033 | 11,049 | 0.22 | % | 4,929,105 | 13,252 | 0.54 | % | ||||||||||||||||
Repurchase agreements
|
25,674,294 | 30,983 | 0.24 | % | 30,110,438 | 69,053 | 0.46 | % | ||||||||||||||||
Capital lease obligations
|
691,579 | 28,087 | 8.12 | % | 756,678 | 30,685 | 8.11 | % | ||||||||||||||||
Junior subordinated debentures
|
12,887,000 | 201,193 | 3.15 | % | 12,887,000 | 207,069 | 3.24 | % | ||||||||||||||||
Total
|
$ | 445,573,217 | $ | 1,571,286 | 0.71 | % | $ | 450,063,363 | $ | 1,827,200 | 0.82 | % | ||||||||||||
Net interest income
|
$ | 10,017,667 | $ | 9,804,579 | ||||||||||||||||||||
Net interest spread (3)
|
3.74 | % | 3.73 | % | ||||||||||||||||||||
Net interest margin (4)
|
3.84 | % | 3.84 | % |
(1) |
Included in gross loans are non-accrual loans with average balances of $4,865,916 and $4,368,172 for the six
months ended June 30, 2014 and 2013, respectively. Loans are stated before deduction of unearned discount
and allowance for loans losses.
|
(2) |
Included in other investments is the Company’s FHLBB Stock with average balances of $2,945,120 and $3,192,802,
respectively, for the first six months of 2014 and 2013, and dividend payout rates of approximately 1.49% and 0.40%,
respectively, per quarter.
|
(3) |
Net interest spread is the difference between the average yield on average interest-earning assets and the average rate
paid on average interest-bearing liabilities.
|
(4) |
Net interest margin is net interest income divided by average earning assets.
|
For the quarter ended June 30
|
For the six months ended June 30
|
|||||||||||||||||||||||
Variance
|
Variance
|
Variance
|
Variance
|
|||||||||||||||||||||
Due to
|
Due to
|
Total
|
Due to
|
Due to
|
Total
|
|||||||||||||||||||
Rate (1)
|
Volume (1)
|
Variance
|
Rate (1)
|
Volume (1)
|
Variance
|
|||||||||||||||||||
Average Interest-Earning Assets
|
||||||||||||||||||||||||
Loans
|
$ | (417,567 | ) | $ | 347,378 | $ | (70,189 | ) | $ | (723,796 | ) | $ | 716,494 | $ | (7,302 | ) | ||||||||
Taxable investment securities
|
21,701 | (33,962 | ) | (12,261 | ) | 31,048 | (54,167 | ) | (23,119 | ) | ||||||||||||||
Tax-exempt investment securities
|
1,738 | (27,942 | ) | (26,204 | ) | 40,541 | (65,106 | ) | (24,565 | ) | ||||||||||||||
Sweep and interest earning accounts
|
(1,172 | ) | 2,471 | 1,299 | (930 | ) | (2,859 | ) | (3,789 | ) | ||||||||||||||
Other investments
|
8,939 | (1,195 | ) | 7,744 | 18,872 | (2,923 | ) | 15,949 | ||||||||||||||||
Total
|
$ | (386,361 | ) | $ | 286,750 | $ | (99,611 | ) | $ | (634,265 | ) | $ | 591,439 | $ | (42,826 | ) | ||||||||
Average Interest-Bearing Liabilities
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$ | (11,150 | ) | $ | (722 | ) | $ | (11,872 | ) | $ | (31,892 | ) | $ | (2,517 | ) | $ | (34,409 | ) | ||||||
Money market accounts
|
(9,480 | ) | (25,206 | ) | (34,686 | ) | (31,557 | ) | (50,483 | ) | (82,040 | ) | ||||||||||||
Savings deposits
|
(4,366 | ) | 2,502 | (1,864 | ) | (9,623 | ) | 4,514 | (5,109 | ) | ||||||||||||||
Time deposits
|
(49,509 | ) | 7,277 | (42,232 | ) | (92,651 | ) | 7,042 | (85,609 | ) | ||||||||||||||
Federal funds purchased and
|
||||||||||||||||||||||||
other borrowed funds
|
(2,295 | ) | 3,387 | 1,092 | (15,940 | ) | 13,737 | (2,203 | ) | |||||||||||||||
Repurchase agreements
|
(15,531 | ) | (3,118 | ) | (18,649 | ) | (32,790 | ) | (5,280 | ) | (38,070 | ) | ||||||||||||
Capital lease obligations
|
24 | (1,336 | ) | (1,312 | ) | 23 | (2,621 | ) | (2,598 | ) | ||||||||||||||
Junior subordinated debentures
|
(4,884 | ) | 0 | (4,884 | ) | (5,876 | ) | 0 | (5,876 | ) | ||||||||||||||
Total
|
$ | (97,191 | ) | $ | (17,216 | ) | $ | (114,407 | ) | $ | (220,306 | ) | $ | (35,608 | ) | $ | (255,914 | ) | ||||||
Changes in net interest income
|
$ | (289,170 | ) | $ | 303,966 | $ | 14,796 | $ | (413,959 | ) | $ | 627,047 | $ | 213,088 |
(1) | Items which have shown a year-to-year increase in volume have variances allocated as follows: |
Variance due to rate = Change in rate x new volume | |
Variance due to volume = Change in volume x old rate | |
Items which have shown a year-to-year decrease in volume have variances allocated as follows: | |
Variance due to rate = Change in rate x old volume | |
Variances due to volume = Change in volume x new rate |
Quarter Ended
|
Six Months Ended
|
|||||||||||||||||||||||||||||||
June 30,
|
Change
|
June 30,
|
Change
|
|||||||||||||||||||||||||||||
2014
|
2013
|
$ | % | 2014 | 2013 | $ | % | |||||||||||||||||||||||||
Service fees
|
$ | 658,972 | $ | 627,981 | $ | 30,991 | 4.94 | % | $ | 1,305,785 | $ | 1,186,932 | $ | 118,853 | 10.01 | % | ||||||||||||||||
Income from sold loans
|
260,330 | 451,934 | (191,604 | ) | -42.40 | % | 509,460 | 839,525 | (330,065 | ) | -39.32 | % | ||||||||||||||||||||
Other income from loans
|
122,066 | 190,376 | (68,310 | ) | -35.88 | % | 266,466 | 333,689 | (67,223 | ) | -20.15 | % | ||||||||||||||||||||
Net realized gain on sale of
|
||||||||||||||||||||||||||||||||
securities available-for-sale
|
21,828 | 0 | 21,828 | 100.00 | % | 21,828 | 0 | 21,828 | 100.00 | % | ||||||||||||||||||||||
Income from CFSG Partners
|
83,449 | 74,807 | 8,642 | 11.55 | % | 163,260 | 138,402 | 24,858 | 17.96 | % | ||||||||||||||||||||||
Exchange income
|
36,500 | 26,000 | 10,500 | 40.38 | % | 65,000 | 49,000 | 16,000 | 32.65 | % | ||||||||||||||||||||||
SERP fair value adjustment
|
28,689 | 10,118 | 18,571 | 183.54 | % | 44,738 | 62,679 | (17,942 | ) | -28.62 | % | |||||||||||||||||||||
Other income
|
125,388 | 139,642 | (14,254 | ) | -10.21 | % | 274,186 | 278,823 | (4,636 | ) | -1.66 | % | ||||||||||||||||||||
Total non-interest income
|
$ | 1,337,222 | $ | 1,520,858 | $ | (183,636 | ) | -12.07 | % | $ | 2,650,723 | $ | 2,889,050 | $ | (238,327 | ) | -8.25 | % |
●
|
Service fees increased $30,991 for the quarter and $118,853 year over year as a result of a change in the structure of various demand deposit accounts. The implementation of a paper statement fee late in the first half of 2013 accounted for $24,324 of the quarterly increase and $99,457 of the year to date increase.
|
●
|
Income from sold loans decreased $191,604 for the quarter and $330,065 year over year which is attributable to a decrease in secondary market sales, as the pace of refinancing continued to slow. Proceeds from sale of loans held-for-sale amounted to $16,843,986 for the first six months of 2013 compared to $10,147,291 for the first six months of 2014.
|
●
|
Other income from loans decreased $68,310 for the quarter and $67,223 year over year due primarily to a decrease in residential loan documentation fees. Residential mortgage loan activity has been very slow during the first six months of 2014, generating less income from the document fee process and resulting in a decrease of $43,049 or 62.3% quarter over quarter and $77,839 or 58.7% year over year. Commercial loan documentation fee income increased $15,943 or 13.0% year over year, offsetting a small portion of the decrease in the residential fee income.
|
●
|
Income from the Company’s trust and investment management affiliate, Community Financial Services Group (CFSG Partners) increased $8,642 for the quarter and $24,858 year to date due in part to an increase in the client base and assets under management, as well as an increase in the market value for various investments. CFSG Partners is compensated chiefly through fees based on the assets under management from its clients.
|
●
|
The Supplemental Employee Retirement Program (SERP) fair value adjustment increased $18,571 for the quarter but decreased $17,942 year over year. A decrease in the market value of the Company’s SERP investment account was recognized during the first quarter of 2014; however an increase during the second quarter helped boost income during that period and offset the decrease from the first quarter.
|
Quarter Ended
|
Six Months Ended
|
|||||||||||||||||||||||||||||||
June 30,
|
Change
|
June 30,
|
Change
|
|||||||||||||||||||||||||||||
2014
|
2013
|
$ | % | 2014 | 2013 | $ | % | |||||||||||||||||||||||||
Salaries and wages
|
$ | 1,650,000 | $ | 1,609,601 | $ | 40,399 | 2.51 | % | $ | 3,300,000 | $ | 3,266,786 | $ | 33,214 | 1.02 | % | ||||||||||||||||
Employee benefits
|
573,501 | 622,454 | (48,953 | ) | -7.86 | % | 1,204,698 | 1,231,744 | (27,046 | ) | -2.20 | % | ||||||||||||||||||||
Occupancy expenses, net
|
623,843 | 613,483 | 10,360 | 1.69 | % | 1,308,041 | 1,311,298 | (3,257 | ) | -0.25 | % | |||||||||||||||||||||
Other expenses
|
||||||||||||||||||||||||||||||||
Computer outsourcing
|
105,533 | 24,381 | 81,153 | 332.86 | % | 209,588 | 24,381 | 185,208 | 759.65 | % | ||||||||||||||||||||||
Service contracts - administrative
|
116,614 | 155,062 | (38,448 | ) | -24.80 | % | 225,728 | 313,246 | (87,517 | ) | -27.94 | % | ||||||||||||||||||||
Telephone expense
|
82,479 | 79,536 | 2,943 | 3.70 | % | 163,718 | 194,920 | (31,201 | ) | -16.01 | % | |||||||||||||||||||||
Loss on limited partnerships
|
110,958 | 119,223 | (8,265 | ) | -6.93 | % | 221,916 | 238,446 | (16,530 | ) | -6.93 | % | ||||||||||||||||||||
Collections & non-accruing
|
||||||||||||||||||||||||||||||||
loan expense
|
(26,469 | ) | 66,950 | (93,419 | ) | -139.54 | % | (4,826 | ) | 56,499 | (61,325 | ) | -108.54 | % | ||||||||||||||||||
OREO expense
|
7,563 | 52,526 | (44,963 | ) | -85.60 | % | 48,563 | 82,052 | (33,489 | ) | -40.81 | % | ||||||||||||||||||||
Debit Cards/ATM Cards Losses
|
10,759 | 33,057 | (22,298 | ) | -67.45 | % | 16,628 | 66,660 | (50,033 | ) | -75.06 | % | ||||||||||||||||||||
ATM Fees
|
92,334 | 100,211 | (7,877 | ) | -7.86 | % | 186,069 | 208,113 | (22,043 | ) | -10.59 | % | ||||||||||||||||||||
State Deposit Tax
|
135,794 | 198,165 | (62,371 | ) | -31.47 | % | 271,063 | 329,381 | (58,317 | ) | -17.71 | % | ||||||||||||||||||||
Other miscellaneous expenses
|
1,005,497 | 1,143,615 | (138,118 | ) | -12.08 | % | 2,049,416 | 2,084,027 | (34,612 | ) | -1.66 | % | ||||||||||||||||||||
Total non-interest expense
|
$ | 4,488,406 | $ | 4,818,263 | $ | (329,857 | ) | -6.85 | % | $ | 9,200,602 | $ | 9,407,552 | $ | (206,950 | ) | -2.20 | % |
●
|
Computer outsourcing increased $81,153 for the quarter and $185,208 year over year. The Company began outsourcing its data processing operations at the end of the fourth quarter of 2012, but due to incentive credits received for various functions, the Company did not incur data processing expenses until late in the second quarter of 2013. Outsourcing of the core processing function has provided the opportunity for the existing information technology staff to take on additional duties and roles in response to regulatory and industry changes.
|
●
|
Service contracts – administrative decreased $38,448 or 24.8% for the quarter and $87,517 or 27.9% year over year. Our service contract with our core processor decreased upon implementation of the computer outsourcing accounting for the decreases in both comparison periods.
|
●
|
Telephone expense increased $2,943 for the quarter but decreased $31,201 year over year as the result of entering into a contract with a new vendor during the first quarter of 2014.
|
●
|
Collections & non-accruing loan expense decreased $93,419 for the quarter and $61,325 year over year. The Company was reimbursed for some expenses during the first and second quarter of 2014 accounting for the decrease in both comparison periods.
|
June 30, 2014
|
December 31, 2013
|
June 30, 2013
|
||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Loans
|
$ | 450,593,304 | 80.14 | % | $ | 439,908,926 | 76.68 | % | $ | 424,793,211 | 76.59 | % | ||||||||||||
Securities available-for-sale
|
31,198,958 | 5.55 | % | 35,188,602 | 6.13 | % | 44,599,702 | 8.04 | % | |||||||||||||||
Securities held-to-maturity
|
22,966,558 | 4.08 | % | 37,936,911 | 6.61 | % | 24,105,937 | 4.35 | % | |||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Time deposits
|
$ | 125,834,609 | 22.38 | % | $ | 120,951,539 | 21.08 | % | $ | 126,332,703 | 22.78 | % | ||||||||||||
Savings deposits
|
75,556,376 | 13.44 | % | 69,906,147 | 12.19 | % | 69,841,359 | 12.59 | % | |||||||||||||||
Demand deposits
|
81,327,974 | 14.46 | % | 82,156,154 | 14.32 | % | 69,212,564 | 12.48 | % | |||||||||||||||
Interest-bearing transaction accounts
|
104,820,943 | 18.64 | % | 126,578,052 | 22.06 | % | 106,791,838 | 19.25 | % | |||||||||||||||
Money market accounts
|
67,525,017 | 12.01 | % | 81,960,677 | 14.29 | % | 72,280,640 | 13.03 | % | |||||||||||||||
Federal funds purchased
|
2,915,000 | 0.52 | % | 0 | 0.00 | % | 22,055,000 | 3.98 | % | |||||||||||||||
Short-term advances
|
11,000,000 | 1.96 | % | 0 | 0.00 | % | 0 | 0.00 | % | |||||||||||||||
Long-term advances
|
6,000,000 | 1.07 | % | 0 | 0.00 | % | 0 | 0.00 | % |
Rate Change
|
Percent Change in NII
|
|
Down 100 basis points
|
-.60%
|
|
Up 200 basis points
|
4.67%
|
June 30, 2014
|
December 31, 2013
|
June 30, 2013
|
||||||||||||||||||||||
Commercial & industrial
|
$ | 64,475,384 | 14.31 | % | $ | 55,619,285 | 12.64 | % | $ | 57,608,840 | 13.56 | % | ||||||||||||
Commercial real estate
|
164,302,843 | 36.46 | % | 156,935,803 | 35.67 | % | 138,664,212 | 32.64 | % | |||||||||||||||
1 - 4 family residential - 1st lien
|
169,367,709 | 37.59 | % | 172,847,074 | 39.30 | % | 173,883,158 | 40.93 | % | |||||||||||||||
1 - 4 family residential - Jr lien
|
44,564,026 | 9.89 | % | 45,687,405 | 10.39 | % | 45,145,675 | 10.63 | % | |||||||||||||||
Consumer
|
7,883,342 | 1.75 | % | 8,819,359 | 2.00 | % | 9,491,326 | 2.24 | % | |||||||||||||||
Total loans
|
450,593,304 | 100.00 | % | 439,908,926 | 100.00 | % | 424,793,211 | 100.00 | % | |||||||||||||||
Deduct (add):
|
||||||||||||||||||||||||
Allowance for loan losses
|
4,876,816 | 4,854,915 | 4,522,179 | |||||||||||||||||||||
Unearned loan fees
|
(288,237 | ) | (300,429 | ) | (247,624 | ) | ||||||||||||||||||
4,588,579 | 4,554,486 | 4,274,555 | ||||||||||||||||||||||
Net loans
|
$ | 446,004,725 | $ | 435,354,440 | $ | 420,518,656 |
June 30, 2014
|
December 31, 2013
|
June 30, 2013
|
||||||||||||||||||||||
Loans past due 90 days or
|
||||||||||||||||||||||||
more and still accruing
|
||||||||||||||||||||||||
Commercial & industrial
|
$ | 102,961 | 1.53 | % | $ | 21,902 | 0.32 | % | $ | 0 | 0.00 | % | ||||||||||||
Commercial real estate
|
5,313 | 0.08 | % | 5,313 | 0.08 | % | 45,653 | 0.71 | % | |||||||||||||||
Residential real estate - 1st lien
|
231,085 | 3.43 | % | 817,109 | 12.12 | % | 596,814 | 9.19 | % | |||||||||||||||
Residential real estate - Jr lien
|
57,241 | 0.85 | % | 56,040 | 0.83 | % | 5,951 | 0.09 | % | |||||||||||||||
Consumer
|
17,927 | 0.27 | % | 7,784 | 0.12 | % | 0 | 0.00 | % | |||||||||||||||
Total
|
414,527 | 6.16 | % | 908,148 | 13.47 | % | 648,418 | 9.99 | % | |||||||||||||||
Non-accrual loans (1)
|
||||||||||||||||||||||||
Commercial & industrial
|
1,347,748 | 20.00 | % | 527,105 | 7.82 | % | 497,287 | 7.66 | % | |||||||||||||||
Commercial real estate
|
1,661,324 | 24.66 | % | 1,403,541 | 20.82 | % | 1,165,336 | 17.95 | % | |||||||||||||||
Residential real estate - 1st lien
|
1,943,475 | 28.84 | % | 2,203,106 | 32.69 | % | 1,660,626 | 25.58 | % | |||||||||||||||
Residential real estate - Jr lien
|
453,304 | 6.73 | % | 593,125 | 8.80 | % | 348,815 | 5.37 | % | |||||||||||||||
Total
|
5,405,851 | 80.23 | % | 4,726,877 | 70.13 | % | 3,672,064 | 56.56 | % | |||||||||||||||
Other real estate owned
|
916,820 | 13.61 | % | 1,105,525 | 16.40 | % | 2,171,621 | 33.45 | % | |||||||||||||||
Total
|
$ | 6,737,198 | 100.00 | % | $ | 6,740,550 | 100.00 | % | $ | 6,492,103 | 100.00 | % |
For The Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Loans outstanding, end of period
|
$ | 450,593,304 | $ | 424,793,211 | ||||
Average loans outstanding during period
|
$ | 448,006,236 | $ | 419,786,238 | ||||
Non-accruing loans, end of period
|
$ | 5,405,851 | $ | 3,672,064 | ||||
Non-accruing loans, net of government guarantees
|
$ | 4,449,212 | $ | 3,261,221 | ||||
Allowance, beginning of period
|
$ | 4,854,915 | $ | 4,312,080 | ||||
Loans charged off:
|
||||||||
Commercial & industrial
|
(87,214 | ) | (19,287 | ) | ||||
Commercial real estate
|
(130,819 | ) | (107,936 | ) | ||||
Residential real estate - 1st lien
|
0 | (3,052 | ) | |||||
Consumer loans
|
(65,769 | ) | (26,009 | ) | ||||
Total loans charged off(1)
|
(283,802 | ) | (156,284 | ) | ||||
Recoveries:
|
||||||||
Commercial & industrial
|
2,236 | 992 | ||||||
Residential real estate - 1st lien
|
11,098 | 8,636 | ||||||
Residential real estate - Jr lien
|
120 | 120 | ||||||
Consumer loans
|
22,249 | 30,385 | ||||||
Total recoveries(1)
|
35,703 | 40,133 | ||||||
Net loans charged off
|
(248,099 | ) | (116,151 | ) | ||||
Provision charged to income
|
270,000 | 326,250 | ||||||
Allowance, end of period
|
$ | 4,876,816 | $ | 4,522,179 | ||||
Net charge offs to average loans outstanding | 0.055 | % | 0.028 | % | ||||
Provision charged to income as a percent of average loans | 0.060 | % | 0.078 | % | ||||
Allowance to average loans outstanding | 1.089 | % | 1.077 | % | ||||
Allowance to non-accruing loans | 90.214 | % | 123.151 | % | ||||
Allowance to non-accruing loans net of government guarantees | 109.611 | % | 138.665 | % |
Contract or Notional Amount
|
||||||||
June 30,
2014
|
December 31,
2013
|
|||||||
Unused portions of home equity lines of credit
|
$ | 22,844,534 | $ | 21,961,527 | ||||
Other commitments to extend credit
|
43,252,097 | 41,230,202 | ||||||
Residential construction lines of credit
|
848,815 | 2,010,417 | ||||||
Commercial real estate and other construction lines of credit
|
5,740,616 | 15,592,702 | ||||||
Standby letters of credit and commercial letters of credit
|
1,217,545 | 1,655,469 | ||||||
Recourse on sale of credit card portfolio
|
276,650 | 276,650 | ||||||
MPF credit enhancement obligation, net of liability recorded
|
1,544,335 | 1,543,211 |
June 30,
|
December 31,
|
June 30,
|
||||||||||
2014
|
2013
|
2013
|
||||||||||
Long-Term Advances
|
||||||||||||
FHLBB term borrowing, 0.23% fixed rate, due August 29, 2014
|
$ | 6,000,000 | $ | 0 | $ | 0 | ||||||
Short-Term Advances
|
||||||||||||
FHLBB term advance, 0.19% fixed rate, due July 7, 2014
|
6,000,000 | 0 | 0 | |||||||||
FHLBB term advance, 0.23% fixed rate, due September 26, 2014
|
5,000,000 | 0 | 0 | |||||||||
11,000,000 | 0 | 0 | ||||||||||
Overnight Borrowings
|
||||||||||||
Federal funds purchased (FHLBB), 0.3125% and 0.35%
|
2,915,000 | 0 | 22,055,000 | |||||||||
Total Advances and Overnight Borrowings
|
$ | 19,915,000 | $ | 0 | $ | 22,055,000 |
Balance at December 31, 2013 (book value $8.96 per common share)
|
$ | 46,135,977 | ||
Net income
|
2,355,951 | |||
Issuance of stock through the Dividend Reinvestment Plan
|
442,139 | |||
Dividends declared on common stock
|
(1,560,309 | ) | ||
Dividends declared on preferred stock
|
(40,625 | ) | ||
Change in unrealized gain on available-for-sale securities, net of tax
|
57,811 | |||
Balance at June 30, 2014 (book value $9.16 per common share)
|
$ | 47,390,944 |
For the period:
|
Total Number
of Shares
Purchased(1)(2)
|
Average
Price Paid
Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plan
|
Maximum Number of
Shares That May Yet
Be Purchased Under
the Plan at the End
of the Period
|
||||||||||||
April 1 - April 30
|
0 | $ | 0.00 | N/A | N/A | |||||||||||
May 1 - May 31
|
1,605 | 14.25 | N/A | N/A | ||||||||||||
June 1 - June 30
|
7,854 | 14.44 | N/A | N/A | ||||||||||||
Total
|
9,459 | $ | 14.40 | N/A | N/A |
Exhibit No. | Description | |
3.1 | Amended and Restated Articles of Association of the Company, as restated on July 8, 2014 | |
31.1 | Certification from the Chief Executive Officer of the Company pursuant to section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification from the Chief Financial Officer of the Company pursuant to section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | Certification from the Chief Executive Officer of the Company pursuant to 18 U.S.C., Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002* | |
32.2 | Certification from the Chief Financial Officer of the Company pursuant to 18 U.S.C., Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002* | |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 formatted in eXtensible Business Reporting Language (XBRL): (i) the unaudited consolidated balance sheets, (ii) the unaudited consolidated statements of income for the interim periods ended June 30, 2014 and 2013, (iii) the unaudited consolidated statements of comprehensive income, (iv) the unaudited consolidated statements of cash flows and (v) related notes. |
COMMUNITY BANCORP.
|
|||
DATED: August 12, 2014
|
By:
|
/s/ Stephen P. Marsh | |
Stephen P. Marsh, Chairman, President
|
|||
& Chief Executive Officer
|
|||
DATED: August 12, 2014
|
By:
|
/s/ Louise M. Bonvechio | |
Louise M. Bonvechio, Treasurer
|
|||
(Principal Financial Officer)
|
|||
(a)
|
To act as a holding company for one or more financial institutions;
|
(b)
|
To transact any and all lawful business for which corporations may be incorporated under the Vermont Business Corporation Act as permitted to financial institution holding companies under applicable federal law;
|
(c)
|
To do each and everything necessary, suitable, or proper for the accomplishment of any of the purposes or for the attainment of any one or more of the objects herein enumerated or which at any time appear conducive to or expedient for the protection or benefit of the Corporation;
|
(d)
|
To exercise all powers granted to corporations under the Vermont Business Corporation Act.
|
/s/ Arthur S. Judd, Jr.
|
Incorporator
|
P.O. Box 398
|
Derby, Vermont 05829
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Community Bancorp.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Community Bancorp.
|
|
August 12, 2014
|
By:
/s/ Stephen P. Marsh
|
Name: Stephen P. Marsh,
|
|
Title: Chairman, President & Chief Executive
|
|
Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Community Bancorp.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Community Bancorp.
|
|
August 12, 2014
|
By:
/s/ Louise M. Bonvechio
|
Name: Louise M. Bonvechio
|
|
Title: Treasurer (Principal Financial Officer)
|
Community Bancorp.
|
|
August 12, 2014
|
By:
/s/ Stephen P. Marsh
|
Name: Stephen P. Marsh,
|
|
Title: Chairman, President & Chief Executive
|
|
Officer
|
Community Bancorp.
|
|
August 12, 2014
|
By:
/s/ Louise M. Bonvechio
|
Name: Louise M. Bonvechio
|
|
Title: Treasurer (Principal Financial Officer)
|