x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended September 30, 2015
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from _____ to _____.
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Eagle Bancorp Montana, Inc. |
(Exact name of small business issuer as specified in its charter) |
Delaware
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27-1449820
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(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
1400 Prospect Avenue, Helena, MT 59601 |
(Address of principal executive offices) |
(406) 442-3080 |
(Issuer's telephone number) |
Large accelerated filer o | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company x | |
(Do not check if smaller reporting company) |
Common stock, par value $0.01 per share
|
3,776,916 shares outstanding
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PART I.
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FINANCIAL INFORMATION |
PAGE
|
||
Financial Statements (Unaudited) | ||||
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1 | |||
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3 | |||
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5 | |||
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6 | |||
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7 | |||
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Notes to the Unaudited Consolidated Financial Statements | 9 | ||
Management's Discussion and Analysis of Financial Condition and Results of Operations |
33
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Quantitative and Qualitative Disclosures About Market Risk |
46
|
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Controls and Procedures |
47
|
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PART II.
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OTHER INFORMATION | |||
Legal Proceedings |
48
|
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Risk Factors |
48
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Unregistered Sales of Equity Securities and Use of Proceeds |
48
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Defaults Upon Senior Securities |
49
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Mine Safety Disclosures |
49
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Other Information |
49
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Exhibits |
49
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50 | ||||
Exhibit 31.1
|
||||
Exhibit 31.2
|
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Exhibit 32.1
|
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101.INS XBRL Instance Document
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101.SCH XBRL Taxonomy Extension Schema Document
|
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101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB XBRL Taxonomy Extension Label Linkbase Document
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101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
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●
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statements of our goals, intentions and expectations;
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●
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statements regarding our business plans, prospects, growth and operating strategies;
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●
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statements regarding the asset quality of our loan and investment portfolios; and
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●
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estimates of our risks and future costs and benefits.
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●
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changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;
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general economic conditions, either nationally or in our market areas, that are worse than expected;
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competition among depository and other financial institutions;
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changes in the prices, values and sales volume of residential and commercial real estate in Montana;
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●
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inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;
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●
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changes or volatility in the securities markets;
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●
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our ability to enter new markets successfully and capitalize on growth opportunities;
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●
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our ability to successfully integrate acquired businesses;
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changes in consumer spending, borrowing and savings habits;
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our ability to continue to increase and manage our commercial and residential real estate, multi-family and commercial business loans;
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●
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possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises;
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●
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the level of future deposit premium assessments;
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●
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the impact of a recurring recession on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities;
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●
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the Company’s ability to develop and maintain secure and reliable information technology systems, effectively defend itself against cyberattacks or recover from breaches to its cybersecurity infrastructure;
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●
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the failure of assumptions underlying the establishment of allowance for possible loan losses and other estimates;
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●
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changes in the financial performance and/or condition of our borrowers and their ability to repay their loans when due; and
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●
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the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.
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September 30,
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December 31,
|
|||||||
2015
|
2014
|
|||||||
ASSETS:
|
||||||||
Cash and due from banks
|
$ | 6,529 | $ | 11,889 | ||||
Interest-bearing deposits in banks
|
717 | 613 | ||||||
Total cash and cash equivalents
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7,246 | 12,502 | ||||||
Securities available-for-sale
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147,460 | 161,787 | ||||||
Federal Home Loan Bank stock
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2,853 | 1,968 | ||||||
Federal Reserve Bank stock
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642 | 641 | ||||||
Investment in Eagle Bancorp Statutory Trust I
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155 | 155 | ||||||
Mortgage loans held-for-sale
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14,731 | 17,587 | ||||||
Loans receivable, net of deferred loan fees of $750 at September 30, 2015
|
||||||||
and $486 at December 31, 2014 and allowance for loan losses of $3,230 at | ||||||||
September 30, 2015 and $2,450 at December 31, 2014
|
388,244 | 316,270 | ||||||
Accrued interest and dividends receivable
|
2,332 | 2,318 | ||||||
Mortgage servicing rights, net
|
4,808 | 4,115 | ||||||
Premises and equipment, net
|
18,290 | 19,964 | ||||||
Cash surrender value of life insurance
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12,429 | 11,735 | ||||||
Real estate and other repossessed assets acquired in settlement of loans, net
|
619 | 637 | ||||||
Goodwill
|
7,034 | 7,034 | ||||||
Core deposit intangible, net
|
550 | 663 | ||||||
Deferred tax asset, net
|
1,694 | 1,467 | ||||||
Other assets
|
2,322 | 1,364 | ||||||
Total assets
|
$ | 611,409 | $ | 560,207 |
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
LIABILITIES:
|
||||||||
Deposit accounts:
|
||||||||
Noninterest bearing
|
$ | 82,842 | $ | 60,924 | ||||
Interest bearing
|
398,286 | 380,476 | ||||||
Total deposits
|
481,128 | 441,400 | ||||||
Accrued expenses and other liabilities
|
5,372 | 4,161 | ||||||
Federal Home Loan Bank advances and other borrowings
|
55,534 | 54,993 | ||||||
Subordinated debentures:
|
||||||||
Principal amount
|
15,155 | 5,155 | ||||||
Unamortized debt issuance costs
|
(204 | ) | - | |||||
Total subordinated debentures less unamortized debt issuance costs
|
14,951 | 5,155 | ||||||
Total liabilities
|
556,985 | 505,709 | ||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Preferred stock (no par value; 1,000,000 shares authorized; no shares
|
||||||||
issued or outstanding)
|
- | - | ||||||
Common stock (par value $0.01 per share; 8,000,000 shares authorized;
|
||||||||
4,083,127 shares issued; 3,776,916 and 3,878,781 shares outstanding
|
||||||||
at September 30, 2015 and December 31, 2014, respectively)
|
41 | 41 | ||||||
Additional paid-in capital
|
22,134 | 22,122 | ||||||
Unallocated common stock held by Employee Stock Ownership Plan
|
(1,016 | ) | (1,141 | ) | ||||
Treasury stock, at cost
|
(3,338 | ) | (2,194 | ) | ||||
Retained earnings
|
36,714 | 35,885 | ||||||
Net accumulated other comprehensive loss
|
(111 | ) | (215 | ) | ||||
Total shareholders' equity
|
54,424 | 54,498 | ||||||
Total liabilities and shareholders' equity
|
$ | 611,409 | $ | 560,207 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
INTEREST AND DIVIDEND INCOME:
|
||||||||||||||||
Interest and fees on loans
|
$ | 4,390 | $ | 3,658 | $ | 12,607 | $ | 10,291 | ||||||||
Securities available-for-sale
|
759 | 1,044 | 2,255 | 3,227 | ||||||||||||
Federal Home Loan Bank and Federal Reserve Bank dividends
|
5 | - | 25 | - | ||||||||||||
Interest on deposits in banks
|
- | 1 | 6 | 5 | ||||||||||||
Total interest and dividend income
|
5,154 | 4,703 | 14,893 | 13,523 | ||||||||||||
INTEREST EXPENSE:
|
||||||||||||||||
Deposits
|
400 | 338 | 1,093 | 999 | ||||||||||||
Federal Home Loan Bank advances and other borrowings
|
130 | 156 | 401 | 455 | ||||||||||||
Subordinated debentures
|
191 | 21 | 254 | 63 | ||||||||||||
Total interest expense
|
721 | 515 | 1,748 | 1,517 | ||||||||||||
NET INTEREST INCOME
|
4,433 | 4,188 | 13,145 | 12,006 | ||||||||||||
Loan loss provision
|
310 | 215 | 960 | 511 | ||||||||||||
NET INTEREST INCOME AFTER LOAN LOSS PROVISION
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4,123 | 3,973 | 12,185 | 11,495 | ||||||||||||
NONINTEREST INCOME:
|
||||||||||||||||
Service charges on deposit accounts
|
317 | 284 | 783 | 763 | ||||||||||||
Net gain on sale of loans (includes $462 and $461 for the three
|
||||||||||||||||
months ended September 30, 2015 and 2014, respectively, and
|
||||||||||||||||
$1,487 and $1,065 for the nine months ended September 30, 2015
|
||||||||||||||||
and 2014, respectively, related to accumulated other comprehensive
|
||||||||||||||||
earnings reclassification)
|
1,639 | 1,398 | 5,126 | 3,430 | ||||||||||||
Mortgage loan servicing fees
|
523 | 380 | 1,360 | 1,099 | ||||||||||||
Wealth management income
|
174 | 112 | 470 | 383 | ||||||||||||
Net gain on sale of available-for-sale securities (includes $0 and
|
||||||||||||||||
$194 for the three months ended September 30, 2015 and 2014,
|
||||||||||||||||
respectively, and $234 and $431 for the nine months ended
|
||||||||||||||||
September 30, 2015 and 2014, respectively, related to accumulated
|
||||||||||||||||
other comprehensive earnings reclassification)
|
- | 194 | 234 | 431 | ||||||||||||
Net loss on sale of real estate owned and other repossessed property
|
(2 | ) | (1 | ) | (4 | ) | (1 | ) | ||||||||
Net loss on fair value hedge
|
- | (47 | ) | (93 | ) | (181 | ) | |||||||||
Other noninterest income
|
261 | 337 | 1,193 | 1,207 | ||||||||||||
Total noninterest income
|
2,912 | 2,657 | 9,069 | 7,131 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
NONINTEREST EXPENSE:
|
||||||||||||||||
Salaries and employee benefits
|
3,660 | 3,131 | 10,678 | 9,523 | ||||||||||||
Occupancy and equipment expense
|
838 | 695 | 2,307 | 2,094 | ||||||||||||
Data processing
|
560 | 540 | 1,605 | 1,479 | ||||||||||||
Advertising
|
170 | 166 | 563 | 525 | ||||||||||||
Amortization of mortgage servicing rights
|
218 | 166 | 640 | 462 | ||||||||||||
Amortization of core deposit intangible and tax credits
|
116 | 105 | 317 | 315 | ||||||||||||
Federal insurance premiums
|
83 | 73 | 251 | 176 | ||||||||||||
Postage
|
63 | 44 | 152 | 127 | ||||||||||||
Legal, accounting and examination fees
|
126 | 262 | 415 | 548 | ||||||||||||
Consulting fees
|
72 | 176 | 523 | 558 | ||||||||||||
Write-down on real estate owned and other repossessed property
|
- | - | - | 10 | ||||||||||||
Other noninterest expense
|
586 | 507 | 1,874 | 1,490 | ||||||||||||
Total noninterest expense
|
6,492 | 5,865 | 19,325 | 17,307 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
543 | 765 | 1,929 | 1,319 | ||||||||||||
Income tax expense (benefit) (includes $671 and $688 for the
|
||||||||||||||||
three months ended September 30, 2015 and 2014, respectively,
|
||||||||||||||||
and $71 and $3,067 for the nine months ended September, 30,
|
||||||||||||||||
2015 and 2014, respectively related to income tax expense
|
||||||||||||||||
from reclassification items)
|
22 | 47 | 230 | (369 | ) | |||||||||||
NET INCOME
|
$ | 521 | $ | 718 | $ | 1,699 | $ | 1,688 | ||||||||
BASIC EARNINGS PER SHARE
|
$ | 0.14 | $ | 0.18 | $ | 0.44 | $ | 0.43 | ||||||||
DILUTED EARNINGS PER SHARE
|
$ | 0.14 | $ | 0.18 | $ | 0.44 | $ | 0.43 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
(BASIC EPS)
|
3,804,532 | 3,889,603 | 3,823,896 | 3,907,259 | ||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
(DILUTED EPS)
|
3,841,787 | 3,944,406 | 3,861,151 | 3,962,062 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
NET INCOME
|
$ | 521 | $ | 718 | $ | 1,699 | $ | 1,688 | ||||||||
OTHER ITEMS OF COMPREHENSIVE INCOME (LOSS):
|
||||||||||||||||
Change in fair value of investment securities
|
||||||||||||||||
available for sale, before income taxes
|
1,688 | 1,713 | 485 | 7,692 | ||||||||||||
Reclassification for realized gains and losses on investment
|
||||||||||||||||
securities included in income, before income tax
|
- | (194 | ) | (234 | ) | (431 | ) | |||||||||
Change in fair value of derivatives designated as cash flow
|
||||||||||||||||
hedges, before income taxes
|
420 | 630 | 1,411 | 1,329 | ||||||||||||
Reclassification for realized gains on derivatives designated
|
||||||||||||||||
as cash flow hedges, before income taxes
|
(462 | ) | (461 | ) | (1,487 | ) | (1,065 | ) | ||||||||
Total other items of comprehensive income
|
1,646 | 1,688 | 175 | 7,525 | ||||||||||||
Income tax (expense) benefit related to:
|
||||||||||||||||
Investment securities
|
(688 | ) | (619 | ) | (102 | ) | (2,959 | ) | ||||||||
Derivatives designated as cash flow hedges
|
17 | (69 | ) | 31 | (108 | ) | ||||||||||
(671 | ) | (688 | ) | (71 | ) | (3,067 | ) | |||||||||
COMPREHENSIVE INCOME
|
$ | 1,496 | $ | 1,718 | $ | 1,803 | $ | 6,146 |
ACCUMULATED
|
||||||||||||||||||||||||||||||||
UNALLOCATED
|
|
OTHER
|
||||||||||||||||||||||||||||||
PREFERRED
|
COMMON
|
PAID-IN
|
ESOP
|
TREASURY
|
RETAINED
|
COMPREHENSIVE
|
|
|||||||||||||||||||||||||
STOCK
|
STOCK
|
CAPITAL
|
SHARES
|
STOCK
|
EARNINGS
|
(LOSS) INCOME
|
TOTAL
|
|||||||||||||||||||||||||
Balance at December 31, 2013
|
$ | - | $ | 41 | $ | 22,118 | $ | (1,307 | ) | $ | (1,800 | ) | $ | 34,422 | $ | (5,717 | ) | $ | 47,757 | |||||||||||||
Net income
|
1,688 | 1,688 | ||||||||||||||||||||||||||||||
Other comprehensive income
|
4,458 | 4,458 | ||||||||||||||||||||||||||||||
Dividends paid
|
(858 | ) | (858 | ) | ||||||||||||||||||||||||||||
Employee Stock Ownership Plan shares allocated or committed to be released for allocation (12,462 shares)
|
8 | 125 | 133 | |||||||||||||||||||||||||||||
Treasury stock purchased (50,000 shares at $10.65 average cost per share)
|
(533 | ) | (533 | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2014
|
$ | - | $ | 41 | $ | 22,126 | $ | (1,182 | ) | $ | (2,333 | ) | $ | 35,252 | $ | (1,259 | ) | $ | 52,645 |
Balance at December 31, 2014
|
$ | - | $ | 41 | $ | 22,122 | $ | (1,141 | ) | $ | (2,194 | ) | $ | 35,885 | $ | (215 | ) | $ | 54,498 | |||||||||||||
Net income
|
1,699 | 1,699 | ||||||||||||||||||||||||||||||
Other comprehensive income
|
104 | 104 | ||||||||||||||||||||||||||||||
Dividends paid
|
(870 | ) | (870 | ) | ||||||||||||||||||||||||||||
Employee Stock Ownership Plan shares allocated or committed to be released for allocation (12,462 shares)
|
12 | 125 | 137 | |||||||||||||||||||||||||||||
Treasury stock purchased (101,865
shares at $11.23 average cost per share)
|
(1,144 | ) | (1,144 | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2015
|
$ | - | $ | 41 | $ | 22,134 | $ | (1,016 | ) | $ | (3,338 | ) | $ | 36,714 | $ | (111 | ) | $ | 54,424 |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2015
|
2014
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 1,699 | $ | 1,688 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Loan loss provision
|
960 | 511 | ||||||
Write-down on real estate owned and other repossessed assets
|
- | 10 | ||||||
Depreciation
|
924 | 864 | ||||||
Net amortization of investment securities premium and discounts
|
1,530 | 1,792 | ||||||
Amortization of mortgage servicing rights
|
640 | 462 | ||||||
Amortization of core deposit intangible and tax credits
|
317 | 315 | ||||||
Deferred income tax benefit
|
(207 | ) | (176 | ) | ||||
Net gain on sale of loans
|
(5,126 | ) | (3,430 | ) | ||||
Net gain on sale of available-for-sale securities
|
(234 | ) | (431 | ) | ||||
Net loss on sale of real estate owned and other repossessed assets
|
4 | 1 | ||||||
Net loss on fair value hedge
|
93 | 181 | ||||||
Net (gain) loss on sale/disposal of premises and equipment
|
(304 | ) | 11 | |||||
Net appreciation in cash surrender value of life insurance
|
(244 | ) | (232 | ) | ||||
Net change in:
|
||||||||
Accrued interest and dividends receivable
|
(14 | ) | 48 | |||||
Loans held-for-sale
|
7,906 | (3,252 | ) | |||||
Other assets
|
(1,311 | ) | (208 | ) | ||||
Accrued expenses and other liabilities
|
1,326 | 1,533 | ||||||
Net cash provided by (used in) operating activities
|
7,959 | (313 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Activity in available-for-sale securities:
|
||||||||
Sales
|
31,043 | 27,326 | ||||||
Maturities, principal payments and calls
|
8,851 | 11,913 | ||||||
Purchases
|
(26,612 | ) | (16,760 | ) | ||||
Federal Home Loan Bank stock (purchased) redeemed
|
(885 | ) | 18 | |||||
Federal Reserve Bank stock purchased
|
(1 | ) | - | |||||
Loan origination and principal collection, net
|
(74,276 | ) | (52,809 | ) | ||||
Proceeds from Bank owned life insurance
|
- | 109 | ||||||
Purchases of Bank owned life insurance
|
(450 | ) | (495 | ) | ||||
Proceeds from sale of real estate and other repossessed assets
|
||||||||
acquired in settlement of loans
|
23 | 5 | ||||||
Insurance proceeds related to premises and equipment
|
- | 3 | ||||||
Proceeds from sale of premises and equipment
|
1,437 | - | ||||||
Additions to premises and equipment
|
(396 | ) | (1,760 | ) | ||||
Net cash used in investing activities
|
(61,266 | ) | (32,450 | ) |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2015
|
2014
|
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net increase in deposits
|
$ | 39,728 | $ | 7,904 | ||||
Net short-term (payments) advances on Federal Home Loan Bank
|
||||||||
and other borrowings
|
(4,747 | ) | 23,255 | |||||
Long-term advances from Federal Home Loan Bank and other borrowings
|
13,000 | 5,000 | ||||||
Payments on long-term Federal Home Loan Bank and other borrowings
|
(7,712 | ) | (5,150 | ) | ||||
Proceeds from issuance of subordinated debentures
|
10,000 | - | ||||||
Payment for debt issuance costs
|
(204 | ) | - | |||||
Dividends paid
|
(870 | ) | (858 | ) | ||||
Purchase of treasury stock, at cost
|
(1,144 | ) | (533 | ) | ||||
Net cash provided by financing activities
|
48,051 | 29,618 | ||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(5,256 | ) | (3,145 | ) | ||||
CASH AND CASH EQUIVALENTS, beginning of period
|
12,502 | 7,055 | ||||||
CASH AND CASH EQUIVALENTS, end of period
|
$ | 7,246 | $ | 3,910 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for interest
|
$ | 1,742 | $ | 1,541 | ||||
Cash paid during the period for income taxes
|
$ | 142 | $ | 81 | ||||
NON-CASH INVESTING ACTIVITIES:
|
||||||||
Increase in market value of securities available-for-sale
|
$ | 251 | $ | 7,261 | ||||
Mortgage servicing rights recognized
|
$ | 1,333 | $ | 848 | ||||
Loans transferred to real estate and other assets acquired in foreclosure
|
$ | 9 | $ | 216 | ||||
Employee Stock Ownership Plan shares released
|
$ | 137 | $ | 133 |
September 30, 2015
|
December 31, 2014
|
|||||||||||||||||||||||||||||||
Gross
|
Gross
|
|||||||||||||||||||||||||||||||
Amortized
|
Unrealized
|
Fair
|
Amortized
|
Unrealized
|
Fair
|
|||||||||||||||||||||||||||
Cost
|
Gains
|
(Losses)
|
Value
|
Cost
|
Gains | (Losses) |
Value
|
|||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||
Available-for-Sale:
|
||||||||||||||||||||||||||||||||
U.S. government and
|
||||||||||||||||||||||||||||||||
agency obligations
|
$ | 11,886 | $ | 30 | $ | (117 | ) | $ | 11,799 | $ | 33,472 | $ | 42 | $ | (333 | ) | $ | 33,181 | ||||||||||||||
Municipal obligations
|
67,142 | 690 | (1,250 | ) | 66,582 | 71,844 | 1,243 | (1,202 | ) | 71,885 | ||||||||||||||||||||||
Corporate obligations
|
10,655 | 3 | (103 | ) | 10,555 | 5,990 | 27 | (12 | ) | 6,005 | ||||||||||||||||||||||
MBSs - government-backed
|
32,447 | 381 | (82 | ) | 32,746 | 22,097 | 56 | (189 | ) | 21,964 | ||||||||||||||||||||||
CMOs - government backed
|
25,938 | 39 | (199 | ) | 25,778 | 29,243 | 26 | (517 | ) | 28,752 | ||||||||||||||||||||||
Total
|
$ | 148,068 | $ | 1,143 | $ | (1,751 | ) | $ | 147,460 | $ | 162,646 | $ | 1,394 | $ | (2,253 | ) | $ | 161,787 |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
(In Thousands)
|
||||||||
Due in one year or less
|
$ | 999 | $ | 1,000 | ||||
Due from one to five years
|
8,370 | 8,351 | ||||||
Due from five to ten years
|
19,222 | 19,110 | ||||||
Due after ten years
|
61,092 | 60,475 | ||||||
89,683 | 88,936 | |||||||
MBSs - government-backed
|
32,447 | 32,746 | ||||||
CMOs - government-backed
|
25,938 | 25,778 | ||||||
Total
|
$ | 148,068 | $ | 147,460 |
September 30, 2015
|
||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S. government and agency
|
$ | 2,196 | $ | (8 | ) | $ | 7,140 | $ | (109 | ) | ||||||
Municipal obligations
|
21,203 | (316 | ) | 24,301 | (934 | ) | ||||||||||
Corporate obligations
|
5,356 | (47 | ) | 2,944 | (56 | ) | ||||||||||
MBSs and CMOs - government-backed
|
13,997 | (95 | ) | 15,912 | (186 | ) | ||||||||||
Total
|
$ | 42,752 | $ | (466 | ) | $ | 50,297 | $ | (1,285 | ) | ||||||
December 31, 2014
|
||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S. government and agency
|
$ | 1,611 | $ | (19 | ) | $ | 27,733 | $ | (314 | ) | ||||||
Municipal obligations
|
2,330 | (48 | ) | 44,386 | (1,154 | ) | ||||||||||
Corporate obligations
|
997 | (2 | ) | 1,990 | (10 | ) | ||||||||||
MBSs and CMOs - government-backed
|
9,091 | (68 | ) | 35,333 | (638 | ) | ||||||||||
Total | $ | 14,029 | $ | (137 | ) | $ | 109,442 | $ | (2,116 | ) |
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(In Thousands)
|
||||||||
First mortgage loans:
|
||||||||
Residential mortgage (1-4 family)
|
$ | 117,320 | $ | 103,420 | ||||
Commercial real estate
|
157,179 | 117,060 | ||||||
Real estate construction
|
22,656 | 9,526 | ||||||
Other loans:
|
||||||||
Home equity
|
46,632 | 40,123 | ||||||
Consumer
|
14,885 | 13,827 | ||||||
Commercial
|
33,552 | 35,250 | ||||||
Total
|
392,224 | 319,206 | ||||||
Allowance for loan losses
|
(3,230 | ) | (2,450 | ) | ||||
Deferred loan fees, net
|
(750 | ) | (486 | ) | ||||
Total loans, net
|
$ | 388,244 | $ | 316,270 |
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in Thousands)
|
||||||||
Non-accrual loans
|
$ | 556 | $ | 962 | ||||
Accruing loans delinquent 90 days or more
|
888 | - | ||||||
Restructured loans, net
|
47 | 48 | ||||||
Total nonperforming loans
|
1,491 | 1,010 | ||||||
Real estate owned and other repossessed assets, net
|
619 | 637 | ||||||
Total nonperforming assets
|
$ | 2,110 | $ | 1,647 | ||||
Total non-performing assets as a percentage of total assets
|
0.35 | % | 0.29 | % | ||||
Allowance for loan losses
|
$ | 3,230 | $ | 2,450 | ||||
Percent of allowance for loan losses to non-performing loans
|
216.63 | % | 242.57 | % | ||||
Percent of allowance for loan losses to non-performing assets
|
153.08 | % | 148.76 | % |
Residential
|
||||||||||||||||||||||||||||
Mortgage
|
Commercial
|
Real Estate
|
Home
|
|||||||||||||||||||||||||
(1-4 Family)
|
Real Estate
|
Construction
|
Equity
|
Consumer
|
Commercial
|
Total
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Beginning balance, July 1, 2015
|
$ | 685 | $ | 1,425 | $ | 45 | $ | 326 | $ | 52 | $ | 417 | $ | 2,950 | ||||||||||||||
Charge-offs
|
- | - | - | - | (14 | ) | (25 | ) | (39 | ) | ||||||||||||||||||
Recoveries
|
- | - | - | - | 8 | 1 | 9 | |||||||||||||||||||||
Provision
|
67 | 168 | 34 | 10 | 16 | 15 | 310 | |||||||||||||||||||||
Ending balance, September 30, 2015
|
$ | 752 | $ | 1,593 | $ | 79 | $ | 336 | $ | 62 | $ | 408 | $ | 3,230 | ||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Beginning balance, January 1, 2015
|
$ | 684 | $ | 1,098 | $ | 35 | $ | 270 | $ | 46 | $ | 317 | $ | 2,450 | ||||||||||||||
Charge-offs
|
(137 | ) | - | - | - | (29 | ) | (25 | ) | (191 | ) | |||||||||||||||||
Recoveries
|
- | - | - | - | 10 | 1 | 11 | |||||||||||||||||||||
Provision
|
205 | 495 | 44 | 66 | 35 | 115 | 960 | |||||||||||||||||||||
Ending balance, September 30, 2015
|
$ | 752 | $ | 1,593 | $ | 79 | $ | 336 | $ | 62 | $ | 408 | $ | 3,230 | ||||||||||||||
Ending balance, September 30, 2015 allocated to loans individually evaluated for impairment
|
$ | - | $ | - | $ | - | $ | - | $ | 15 | $ | - | $ | 15 | ||||||||||||||
Ending balance, September 30, 2015 allocated to loans collectively evaluated for impairment
|
$ | 752 | $ | 1,593 | $ | 79 | $ | 336 | $ | 47 | $ | 408 | $ | 3,215 | ||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||
Ending balance, September 30, 2015
|
$ | 117,320 | $ | 157,179 | $ | 22,656 | $ | 46,632 | $ | 14,885 | $ | 33,552 | $ | 392,224 | ||||||||||||||
Ending balance, September 30, 2015 of loans individually evaluated for impairment
|
$ | 1,207 | $ | 1,554 | $ | 177 | $ | 282 | $ | 61 | $ | 284 | $ | 3,565 | ||||||||||||||
Ending balance, September 30, 2015 of loans collectively evaluated for impairment
|
$ | 116,113 | $ | 155,625 | $ | 22,479 | $ | 46,350 | $ | 14,824 | $ | 33,268 | $ | 388,659 |
Residential
|
||||||||||||||||||||||||||||
Mortgage
|
Commercial
|
Real Estate
|
Home
|
|||||||||||||||||||||||||
(1-4 Family)
|
Real Estate
|
Construction
|
Equity
|
Consumer
|
Commercial
|
Total
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Beginning balance, July 1, 2014
|
$ | 485 | $ | 974 | $ | 30 | $ | 299 | $ | 49 | $ | 288 | $ | 2,125 | ||||||||||||||
Charge-offs
|
- | - | - | (31 | ) | (34 | ) | (15 | ) | (80 | ) | |||||||||||||||||
Recoveries
|
- | 31 | - | - | 9 | - | 40 | |||||||||||||||||||||
Provision
|
20 | 43 | 4 | 90 | 25 | 33 | 215 | |||||||||||||||||||||
Ending balance, September 30, 2014
|
$ | 505 | $ | 1,048 | $ | 34 | $ | 358 | $ | 49 | $ | 306 | $ | 2,300 | ||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Beginning balance, January 1, 2014
|
$ | 463 | $ | 914 | $ | 25 | $ | 324 | $ | 51 | $ | 343 | $ | 2,120 | ||||||||||||||
Charge-offs
|
- | (21 | ) | - | (99 | ) | (111 | ) | (159 | ) | (390 | ) | ||||||||||||||||
Recoveries
|
- | 48 | - | - | 11 | - | 59 | |||||||||||||||||||||
Provision
|
42 | 107 | 9 | 133 | 98 | 122 | 511 | |||||||||||||||||||||
Ending balance, September 30, 2014
|
$ | 505 | $ | 1,048 | $ | 34 | $ | 358 | $ | 49 | $ | 306 | $ | 2,300 | ||||||||||||||
Ending balance, September 30, 2014 allocated to loans individually evaluated for impairment
|
$ | - | $ | - | $ | - | $ | 128 | $ | 20 | $ | 9 | $ | 157 | ||||||||||||||
Ending balance, September 30, 2014 allocated to loans collectively evaluated for impairment
|
$ | 505 | $ | 1,048 | $ | 34 | $ | 230 | $ | 29 | $ | 297 | $ | 2,143 | ||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||
Ending balance, September 30, 2014
|
$ | 99,224 | $ | 101,153 | $ | 11,133 | $ | 39,408 | $ | 13,692 | $ | 36,759 | $ | 301,369 | ||||||||||||||
Ending balance, September 30, 2014 of loans individually evaluated for impairment
|
$ | 656 | $ | - | $ | 217 | $ | 438 | $ | 86 | $ | 636 | $ | 2,033 | ||||||||||||||
Ending balance, September 30, 2014 of loans collectively evaluated for impairment
|
$ | 98,568 | $ | 101,153 | $ | 10,916 | $ | 38,970 | $ | 13,606 | $ | 36,123 | $ | 299,336 |
September 30, 2015
|
||||||||||||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||
Mortgage
|
Commercial
|
Real Estate
|
Home
|
|||||||||||||||||||||||||
(1-4 Family)
|
Real Estate
|
Construction
|
Equity
|
Consumer
|
Commercial
|
Total
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 116,113 | $ | 155,625 | $ | 22,479 | $ | 46,350 | $ | 14,824 | $ | 33,268 | $ | 388,659 | ||||||||||||||
Special mention
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Substandard
|
1,207 | 1,554 | 177 | 201 | 41 | 284 | 3,464 | |||||||||||||||||||||
Doubtful
|
- | - | - | 81 | 5 | - | 86 | |||||||||||||||||||||
Loss
|
- | - | - | - | 15 | - | 15 | |||||||||||||||||||||
Total
|
$ | 117,320 | $ | 157,179 | $ | 22,656 | $ | 46,632 | $ | 14,885 | $ | 33,552 | $ | 392,224 | ||||||||||||||
Credit risk profile based on payment activity
|
|
|||||||||||||||||||||||||||
Performing
|
$ | 116,350 | $ | 156,847 | $ | 22,656 | $ | 46,525 | $ | 14,860 | $ | 33,495 | $ | 390,733 | ||||||||||||||
Restructured loans
|
- | - | - | 47 | - | - | 47 | |||||||||||||||||||||
Nonperforming
|
970 | 332 | - | 60 | 25 | 57 | 1,444 | |||||||||||||||||||||
Total
|
$ | 117,320 | $ | 157,179 | $ | 22,656 | $ | 46,632 | $ | 14,885 | $ | 33,552 | $ | 392,224 |
December 31, 2014
|
||||||||||||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||
Mortgage
|
Commercial
|
|
Home
|
|||||||||||||||||||||||||
(1-4 Family)
|
Real Estate
|
Construction
|
Equity
|
Consumer
|
Commercial
|
Total
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 101,949 | $ | 117,060 | $ | 9,526 | $ | 39,795 | $ | 13,772 | $ | 35,021 | $ | 317,123 | ||||||||||||||
Special mention
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Substandard
|
1,331 | - | - | 328 | 41 | 229 | 1,929 | |||||||||||||||||||||
Doubtful
|
- | - | - | - | 7 | - | 7 | |||||||||||||||||||||
Loss
|
140 | - | - | - | 7 | - | 147 | |||||||||||||||||||||
Total
|
$ | 103,420 | $ | 117,060 | $ | 9,526 | $ | 40,123 | $ | 13,827 | $ | 35,250 | $ | 319,206 | ||||||||||||||
Credit risk profile based on payment activity
|
||||||||||||||||||||||||||||
Performing
|
$ | 102,599 | $ | 117,060 | $ | 9,526 | $ | 40,027 | $ | 13,811 | $ | 35,173 | $ | 318,196 | ||||||||||||||
Restructured loans
|
- | - | - | 48 | - | - | 48 | |||||||||||||||||||||
Nonperforming
|
821 | - | - | 48 | 16 | 77 | 962 | |||||||||||||||||||||
Total
|
$ | 103,420 | $ | 117,060 | $ | 9,526 | $ | 40,123 | $ | 13,827 | $ | 35,250 | $ | 319,206 |
September 30, 2015
|
||||||||||||||||||||||||
Recorded
|
||||||||||||||||||||||||
90 Days
|
Investment
|
|||||||||||||||||||||||
30-89 Days
|
and
|
Total
|
Total
|
>90 Days and
|
||||||||||||||||||||
Past Due
|
Greater
|
Past Due
|
Current
|
Loans
|
Still Accruing
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Residential mortgage (1-4 family)
|
$ | 887 | $ | 970 | $ | 1,857 | $ | 115,463 | $ | 117,320 | $ | 817 | ||||||||||||
Commercial real estate
|
857 | 332 | 1,189 | 155,990 | 157,179 | - | ||||||||||||||||||
Real estate construction
|
177 | - | 177 | 22,479 | 22,656 | - | ||||||||||||||||||
Home equity
|
325 | 60 | 385 | 46,247 | 46,632 | - | ||||||||||||||||||
Consumer
|
366 | 25 | 391 | 14,494 | 14,885 | 14 | ||||||||||||||||||
Commercial
|
168 | 57 | 225 | 33,327 | 33,552 | 57 | ||||||||||||||||||
Total
|
$ | 2,780 | $ | 1,444 | $ | 4,224 | $ | 388,000 | $ | 392,224 | $ | 888 |
December 31, 2014
|
||||||||||||||||||||||||
Recorded
|
||||||||||||||||||||||||
90 Days
|
Investment
|
|||||||||||||||||||||||
30-89 Days
|
and
|
Total
|
Total
|
>90 Days and
|
||||||||||||||||||||
Past Due
|
Greater
|
Past Due
|
Current
|
Loans
|
Still Accruing
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Residential mortgage (1-4 family)
|
$ | 203 | $ | 821 | $ | 1,024 | $ | 102,396 | $ | 103,420 | $ | - | ||||||||||||
Commercial real estate
|
131 | - | 131 | 116,929 | 117,060 | - | ||||||||||||||||||
Real estate construction
|
- | - | - | 9,526 | 9,526 | - | ||||||||||||||||||
Home equity
|
303 | 48 | 351 | 39,772 | 40,123 | - | ||||||||||||||||||
Consumer
|
258 | 16 | 274 | 13,553 | 13,827 | - | ||||||||||||||||||
Commercial
|
331 | 77 | 408 | 34,842 | 35,250 | - | ||||||||||||||||||
Total
|
$ | 1,226 | $ | 962 | $ | 2,188 | $ | 317,018 | $ | 319,206 | $ | - |
September 30, 2015
|
||||||||||||||||||||
Unpaid
|
Interest
|
Average
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Income
|
Recorded
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Recognized
|
Investment
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
With no related allowance:
|
||||||||||||||||||||
Residential mortgage (1-4 family)
|
$ | 1,207 | $ | 1,207 | $ | - | $ | 23 | $ | 929 | ||||||||||
Commercial real estate
|
1,554 | 1,554 | - | 25 | 777 | |||||||||||||||
Construction
|
177 | 177 | - | 2 | 88 | |||||||||||||||
Home equity
|
282 | 282 | - | 7 | 305 | |||||||||||||||
Consumer
|
46 | 46 | - | 2 | 47 | |||||||||||||||
Commercial
|
284 | 284 | - | 7 | 256 | |||||||||||||||
With a related allowance:
|
||||||||||||||||||||
Residential mortgage (1-4 family)
|
- | - | - | - | 411 | |||||||||||||||
Commercial real estate
|
- | - | - | - | - | |||||||||||||||
Construction
|
- | - | - | - | - | |||||||||||||||
Home equity
|
- | - | - | - | - | |||||||||||||||
Consumer
|
15 | 15 | 15 | - | 11 | |||||||||||||||
Commercial
|
- | - | - | - | - | |||||||||||||||
Total:
|
||||||||||||||||||||
Residential mortgage (1-4 family)
|
1,207 | 1,207 | - | 23 | 1,340 | |||||||||||||||
Commercial real estate
|
1,554 | 1,554 | - | 25 | 777 | |||||||||||||||
Construction
|
177 | 177 | - | 2 | 88 | |||||||||||||||
Home equity
|
282 | 282 | - | 7 | 305 | |||||||||||||||
Consumer
|
61 | 61 | 15 | 2 | 58 | |||||||||||||||
Commercial
|
284 | 284 | - | 7 | 256 | |||||||||||||||
Total
|
$ | 3,565 | $ | 3,565 | $ | 15 | $ | 66 | $ | 2,824 |
December 31, 2014
|
||||||||||||||||||||
Unpaid
|
Interest
|
Average
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Income
|
Recorded
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Recognized
|
Investment
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
With no related allowance:
|
||||||||||||||||||||
Residential mortgage (1-4 family)
|
$ | 650 | $ | 650 | $ | - | $ | 14 | $ | 655 | ||||||||||
Commercial real estate
|
- | - | - | - | 140 | |||||||||||||||
Construction
|
- | - | - | 2 | - | |||||||||||||||
Home equity
|
328 | 392 | - | 6 | 293 | |||||||||||||||
Consumer
|
48 | 82 | - | 2 | 65 | |||||||||||||||
Commercial
|
229 | 259 | - | 9 | 265 | |||||||||||||||
With a related allowance:
|
||||||||||||||||||||
Residential mortgage (1-4 family)
|
821 | 821 | 140 | - | 411 | |||||||||||||||
Commercial real estate
|
- | - | - | - | - | |||||||||||||||
Construction
|
- | - | - | - | - | |||||||||||||||
Home equity
|
- | - | - | - | 16 | |||||||||||||||
Consumer
|
7 | 7 | 7 | - | 14 | |||||||||||||||
Commercial
|
- | - | - | - | 8 | |||||||||||||||
Total:
|
||||||||||||||||||||
Residential mortgage (1-4 family)
|
1,471 | 1,471 | 140 | 14 | 1,066 | |||||||||||||||
Commercial real estate
|
- | - | - | - | 140 | |||||||||||||||
Construction
|
- | - | - | 2 | - | |||||||||||||||
Home equity
|
328 | 392 | - | 6 | 309 | |||||||||||||||
Consumer
|
55 | 89 | 7 | 2 | 79 | |||||||||||||||
Commercial
|
229 | 259 | - | 9 | 273 | |||||||||||||||
Total
|
$ | 2,083 | $ | 2,211 | $ | 147 | $ | 33 | $ | 1,867 |
September 30, 2015
|
||||||||||||
Accrual
|
Non-Accrual
|
Total
|
||||||||||
Status
|
Status
|
Modification
|
||||||||||
(In Thousands)
|
||||||||||||
Residential mortgage (1-4 family)
|
$ | - | $ | - | $ | - | ||||||
Commercial real estate
|
- | - | - | |||||||||
Real estate construction
|
- | - | - | |||||||||
Home equity
|
47 | - | 47 | |||||||||
Consumer
|
- | - | - | |||||||||
Commercial
|
- | - | - | |||||||||
Total
|
$ | 47 | $ | - | $ | 47 | ||||||
December 31, 2014
|
||||||||||||
Accrual
|
Non-Accrual
|
Total
|
||||||||||
Status
|
Status
|
Modification
|
||||||||||
(In Thousands)
|
||||||||||||
Residential mortgage (1-4 family)
|
$ | - | $ | - | $ | - | ||||||
Commercial real estate
|
- | - | - | |||||||||
Real estate construction
|
- | - | - | |||||||||
Home equity
|
48 | - | 48 | |||||||||
Consumer
|
- | - | - | |||||||||
Commercial
|
- | - | - | |||||||||
Total
|
$ | 48 | $ | - | $ | 48 |
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(In Thousands)
|
||||||||
Noninterest checking
|
$ | 82,842 | $ | 60,924 | ||||
Interest-bearing checking
|
83,565 | 76,367 | ||||||
Savings
|
67,162 | 62,455 | ||||||
Money market
|
94,547 | 91,431 | ||||||
Time certificates of deposit
|
153,012 | 150,223 | ||||||
Total
|
$ | 481,128 | $ | 441,400 |
September 30, 2015
|
December 31, 2014
|
|||||||||||||||
Unamortized
|
Unamortized
|
|||||||||||||||
Debt
|
Debt
|
|||||||||||||||
Principal
|
Issuance
|
Principal
|
Issuance
|
|||||||||||||
Amount
|
Costs
|
Amount
|
Costs
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Subordinated debentures:
|
||||||||||||||||
Variable at 3-Month Libor plus 1.42%, due 2035
|
$ | 5,155 | $ | - | $ | 5,155 | $ | - | ||||||||
Fixed at 6.75%, due 2025
|
10,000 | (204 | ) | - | - | |||||||||||
Total
|
$ | 15,155 | $ | (204 | ) | $ | 5,155 | $ | - |
Unrealized
|
Unrealized
|
|||||||||||
Gains (Losses)
|
(Losses) Gains
|
|||||||||||
on Derivatives
|
on Investment
|
|||||||||||
Designated as
|
Securities
|
|||||||||||
Cash Flow Hedges
|
Available for Sale
|
Total
|
||||||||||
(In Thousands)
|
||||||||||||
Balance, January 1, 2015
|
$ | 294 | $ | (509 | ) | $ | (215 | ) | ||||
Other comprehensive income (loss),
|
||||||||||||
before reclassifications and income taxes
|
991 | (1,203 | ) | (212 | ) | |||||||
Amounts reclassified from accumulated other
|
||||||||||||
comprehensive income (loss), before income taxes
|
(1,025 | ) | (234 | ) | (1,259 | ) | ||||||
Income tax benefit
|
14 | 586 | 600 | |||||||||
Total other comprehensive loss
|
(20 | ) | (851 | ) | (871 | ) | ||||||
Balance, June 30, 2015
|
274 | (1,360 | ) | (1,086 | ) | |||||||
Other comprehensive income,
|
||||||||||||
before reclassifications and income taxes
|
420 | 1,688 | 2,108 | |||||||||
Amounts reclassified from accumulated other
|
||||||||||||
comprehensive income, before income taxes
|
(462 | ) | - | (462 | ) | |||||||
Income tax benefit (expense)
|
17 | (688 | ) | (671 | ) | |||||||
Total other comprehensive (loss) income
|
(25 | ) | 1,000 | 975 | ||||||||
Balance, September 30, 2015
|
$ | 249 | $ | (360 | ) | $ | (111 | ) | ||||
Balance, January 1, 2014
|
$ | 217 | $ | (5,934 | ) | $ | (5,717 | ) | ||||
Other comprehensive income,
|
||||||||||||
before reclassifications and income taxes
|
699 | 5,979 | 6,678 | |||||||||
Amounts reclassified from accumulated other
|
||||||||||||
comprehensive income, before income taxes
|
(604 | ) | (237 | ) | (841 | ) | ||||||
Income tax expense
|
(39 | ) | (2,340 | ) | (2,379 | ) | ||||||
Total other comprehensive income
|
56 | 3,402 | 3,458 | |||||||||
Balance, June 30, 2014
|
273 | (2,532 | ) | (2,259 | ) | |||||||
Other comprehensive income,
|
||||||||||||
before reclassifications and income taxes
|
630 | 1,713 | 2,343 | |||||||||
Amounts reclassified from accumulated other
|
||||||||||||
comprehensive income, before income taxes
|
(461 | ) | (194 | ) | (655 | ) | ||||||
Income tax expense
|
(69 | ) | (619 | ) | (688 | ) | ||||||
Total other comprehensive income
|
100 | 900 | 1,000 | |||||||||
Balance, September 30, 2014
|
$ | 373 | $ | (1,632 | ) | $ | (1,259 | ) |
Effect of Derivative Instruments on Statement of Financial Condition
|
||||||||||||||||||||||||||||
Fair Value of Derivative Instruments
|
||||||||||||||||||||||||||||
Asset Derivatives
|
Liabilities Derivatives
|
|||||||||||||||||||||||||||
September 30, 2015
|
December 31, 2014
|
September 30, 2015
|
December 31, 2014
|
|||||||||||||||||||||||||
Balance
|
Balance
|
Balance
|
Balance
|
|||||||||||||||||||||||||
Sheet
|
Fair
|
Sheet
|
Fair
|
Sheet
|
Fair
|
Sheet
|
Fair
|
|||||||||||||||||||||
Location
|
Value
|
Location
|
Value
|
Location
|
Value
|
Location
|
Value
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Derivatives designated
|
||||||||||||||||||||||||||||
as hedging instruments
|
||||||||||||||||||||||||||||
under ASC 815
|
Other
|
|||||||||||||||||||||||||||
Interest rate contracts
|
n/a | $ | - | n/a | $ | - | n/a | $ | - |
Liabilities
|
$ | 579 | ||||||||||||||||
Change in fair value of
|
||||||||||||||||||||||||||||
financial instrument being
|
||||||||||||||||||||||||||||
hedged under ASC 815
|
||||||||||||||||||||||||||||
Interest rate contracts
|
Loans
|
$ | 135 |
Loans
|
$ | 138 | n/a | $ | - | n/a | $ | - | ||||||||||||||||
Effect of Derivative Instruments on Statement of Income
|
||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2015 and 2014
|
||||||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Amount of
|
||||||||||||||||||||||||||||
Location of
|
Gain or (Loss)
|
|||||||||||||||||||||||||||
Derivatives Designated
|
Gain or (Loss)
|
Recognized in
|
||||||||||||||||||||||||||
as Hedging Instruments
|
Recognized in
|
Income on Derivative
|
||||||||||||||||||||||||||
Under ASC 815
|
Income on Derivative
|
2015 | 2014 | |||||||||||||||||||||||||
Interest rate contracts
|
Noninterest income
|
- | $ | (47 | ) | |||||||||||||||||||||||
Effect of Derivative Instruments on Statement of Income
|
||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2015 and 2014
|
||||||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Amount of
|
||||||||||||||||||||||||||||
Location of
|
Gain or (Loss)
|
|||||||||||||||||||||||||||
Derivatives Designated
|
Gain or (Loss)
|
Recognized in
|
||||||||||||||||||||||||||
as Hedging Instruments
|
Recognized in
|
Income on Derivative
|
||||||||||||||||||||||||||
Under ASC 815
|
Income on Derivative
|
2015 | 2014 | |||||||||||||||||||||||||
Interest rate contracts
|
Noninterest income
|
(93 | ) | $ | (181 | ) |
September 30, 2015
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total Fair
|
|||||||||||||
Inputs
|
Inputs
|
Inputs
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. government and agency
|
$ | - | $ | 11,799 | $ | - | $ | 11,799 | ||||||||
Municipal obligations
|
- | 66,582 | - | 66,582 | ||||||||||||
Corporate obligations
|
- | 10,555 | - | 10,555 | ||||||||||||
MBSs - government-backed
|
- | 32,746 | - | 32,746 | ||||||||||||
CMOs - government backed
|
- | 25,778 | - | 25,778 | ||||||||||||
Loans held-for-sale
|
- | 14,731 | - | 14,731 | ||||||||||||
December 31, 2014
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total Fair
|
|||||||||||||
Inputs
|
Inputs
|
Inputs
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. government and agency
|
$ | - | $ | 33,181 | $ | - | $ | 33,181 | ||||||||
Municipal obligations
|
- | 71,885 | - | 71,885 | ||||||||||||
Corporate obligations
|
- | 6,005 | - | 6,005 | ||||||||||||
MBSs - government-backed
|
- | 21,964 | - | 21,964 | ||||||||||||
CMOs - government backed
|
- | 28,752 | - | 28,752 | ||||||||||||
Loans held-for-sale
|
- | 17,587 | - | 17,587 | ||||||||||||
Financial Liability:
|
||||||||||||||||
Derivative financial instruments
|
- | 579 | - | 579 |
September 30, 2015
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total Fair
|
|||||||||||||
Inputs
|
Inputs
|
Inputs
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 3,550 | $ | 3,550 | ||||||||
Repossessed assets
|
- | - | 619 | 619 | ||||||||||||
December 31, 2014
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total Fair
|
|||||||||||||
Inputs
|
Inputs
|
Inputs
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 1,936 | $ | 1,936 | ||||||||
Repossessed assets
|
- | - | 637 | 637 |
Fair Value at
|
Principal
|
Significant
|
Range of
|
||||||||||||
September 30,
|
December 31,
|
Valuation
|
Unobservable
|
Signficant Input
|
|||||||||||
Instrument
|
2015
|
2014
|
Technique
|
Inputs
|
Values
|
||||||||||
(Dollars In Thousands)
|
|||||||||||||||
Appraisal of
|
Appraisal
|
||||||||||||||
Impaired loans
|
$ | 3,550 | $ | 1,936 |
collateral (1)
|
adjustments
|
10-30 | % | |||||||
Appraisal of
|
Liquidation
|
||||||||||||||
Repossessed Assets
|
$ | 619 | $ | 637 |
collateral (1)(3)
|
expenses (2)
|
10-30 | % |
(1) |
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less associated allowance.
|
(2) |
Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
|
(3) |
Includes qualitative adjustments by management and estimated liquidation expenses.
|
September 30, 2015
|
||||||||||||||||||||
Total
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Estimated
|
Carrying
|
||||||||||||||||
Inputs
|
Inputs
|
Inputs
|
Fair Value
|
Amount
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 7,246 | $ | - | $ | - | $ | 7,246 | $ | 7,246 | ||||||||||
Federal Home Loan Bank stock
|
2,853 | - | - | 2,853 | 2,853 | |||||||||||||||
Federal Reserve Bank stock
|
642 | - | - | 642 | 642 | |||||||||||||||
Loans receivable, net
|
- | - | 393,888 | 393,888 | 384,694 | |||||||||||||||
Accrued interest and dividends receivable
|
2,332 | - | - | 2,332 | 2,332 | |||||||||||||||
Mortgage servicing rights
|
- | - | 6,105 | 6,105 | 4,808 | |||||||||||||||
Cash surrender value of life insurance
|
12,429 | - | - | 12,429 | 12,429 | |||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Non-maturing interest bearing deposits
|
- | 245,274 | - | 245,274 | 245,274 | |||||||||||||||
Non-interest bearing deposits
|
82,842 | - | - | 82,842 | 82,842 | |||||||||||||||
Time certificates of deposit
|
- | - | 153,716 | 153,716 | 153,012 | |||||||||||||||
Accrued expenses and other liabilities
|
5,372 | - | - | 5,372 | 5,372 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings
|
- | - | 55,778 | 55,778 | 55,534 | |||||||||||||||
Subordinated debentures
|
- | - | 14,352 | 14,352 | 15,155 | |||||||||||||||
Off-balance-sheet instruments
|
||||||||||||||||||||
Forward loan sales commitments
|
- | - | - | - | - | |||||||||||||||
Commitments to extend credit
|
- | - | - | - | - | |||||||||||||||
Rate lock commitments
|
- | - | - | - | - |
December 31, 2014
|
||||||||||||||||||||
Total
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Estimated
|
Carrying
|
||||||||||||||||
Inputs
|
Inputs
|
Inputs
|
Fair Value
|
Amount
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 12,502 | $ | - | $ | - | $ | 12,502 | $ | 12,502 | ||||||||||
Federal Home Loan Bank stock
|
1,968 | - | - | 1,968 | 1,968 | |||||||||||||||
Federal Reserve Bank stock
|
641 | - | - | 641 | 641 | |||||||||||||||
Loans receivable, net
|
- | - | 321,312 | 321,312 | 314,334 | |||||||||||||||
Accrued interest and dividends receivable
|
2,318 | - | - | 2,318 | 2,318 | |||||||||||||||
Mortgage servicing rights
|
- | - | 5,168 | 5,168 | 4,115 | |||||||||||||||
Cash surrender value of life insurance
|
11,735 | - | - | 11,735 | 11,735 | |||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Non-maturing interest bearing deposits
|
- | 230,253 | - | 230,253 | 230,253 | |||||||||||||||
Non-interest bearing deposits
|
60,924 | - | - | 60,924 | 60,924 | |||||||||||||||
Time certificates of deposit
|
- | - | 151,004 | 151,004 | 150,223 | |||||||||||||||
Accrued expenses and other liabilities
|
4,161 | - | - | 4,161 | 4,161 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings
|
- | - | 55,273 | 55,273 | 54,993 | |||||||||||||||
Subordinated debentures
|
3,854 | 3,854 | 5,155 | |||||||||||||||||
Off-balance-sheet instruments
|
||||||||||||||||||||
Forward loan sales commitments
|
- | - | - | - | - | |||||||||||||||
Commitments to extend credit
|
- | - | - | - | - | |||||||||||||||
Rate lock commitments
|
- | - | - | - | - |
September 30,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
|||||||||||||||
Fair Value
|
Percentage
of Total
|
Fair Value
|
Percentage
of Total
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S. government and agency
|
$ | 11,799 | 7.78 | % | $ | 33,181 | 20.11 | % | ||||||||
Municipal obligations
|
66,582 | 43.90 | % | 71,885 | 43.57 | % | ||||||||||
Corporate obligations
|
10,555 | 6.96 | % | 6,005 | 3.64 | % | ||||||||||
MBSs - government-backed
|
32,746 | 21.59 | % | 21,964 | 13.31 | % | ||||||||||
CMOs - government-backed
|
25,778 | 17.00 | % | 28,752 | 17.42 | % | ||||||||||
Total securities available-for-sale
|
147,460 | 97.23 | % | 161,787 | 98.05 | % | ||||||||||
Interest-bearing deposits with banks
|
717 | 0.47 | % | 613 | 0.37 | % | ||||||||||
FHLB capital stock, at cost
|
2,853 | 1.88 | % | 1,968 | 1.19 | % | ||||||||||
FRB capital stock, at cost
|
642 | 0.42 | % | 641 | 0.39 | % | ||||||||||
Total
|
$ | 151,672 | 100.00 | % | $ | 165,009 | 100.00 | % |
September 30,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
|||||||||||||||
Amount
|
Percent of
Total
|
Amount
|
Percent of
Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||
Residential mortgage
|
||||||||||||||||
(1-4 family) (1)
|
$ | 117,320 | 29.91 | % | $ | 103,420 | 32.41 | % | ||||||||
Commercial real estate
|
157,179 | 40.07 | % | 117,060 | 36.67 | % | ||||||||||
Real estate construction
|
22,656 | 5.78 | % | 9,526 | 2.98 | % | ||||||||||
Total real estate loans
|
297,155 | 75.76 | % | 230,006 | 72.06 | % | ||||||||||
Other loans:
|
||||||||||||||||
Home equity
|
46,632 | 11.89 | % | 40,123 | 12.57 | % | ||||||||||
Consumer
|
14,885 | 3.80 | % | 13,827 | 4.33 | % | ||||||||||
Commercial
|
33,552 | 8.55 | % | 35,250 | 11.04 | % | ||||||||||
Total other loans
|
95,069 | 24.24 | % | 89,200 | 27.94 | % | ||||||||||
Total loans
|
392,224 | 100.00 | % | 319,206 | 100.00 | % | ||||||||||
Deferred loan fees, net
|
(750 | ) | (486 | ) | ||||||||||||
Allowance for loan losses
|
(3,230 | ) | (2,450 | ) | ||||||||||||
Total loans, net
|
$ | 388,244 | $ | 316,270 | ||||||||||||
(1) Excludes loans held for sale.
|
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in Thousands)
|
||||||||
Non-accrual loans
|
||||||||
Real estate loans:
|
||||||||
Residential mortgage (1-4 family)
|
$ | 153 | $ | 821 | ||||
Commercial real estate
|
332 | - | ||||||
Other loans:
|
||||||||
Home equity
|
60 | 48 | ||||||
Consumer
|
11 | 16 | ||||||
Commercial
|
- | 77 | ||||||
Accruing loans delinquent 90 days or more
|
888 | - | ||||||
Restructured loans:
|
||||||||
Home equity
|
47 | 48 | ||||||
Total nonperforming loans
|
1,491 | 1,010 | ||||||
Real estate owned and other repossed property, net
|
619 | 637 | ||||||
Total nonperforming assets
|
$ | 2,110 | $ | 1,647 | ||||
Total nonperforming loans to total loans
|
0.38 | % | 0.32 | % | ||||
Total nonperforming loans to total assets
|
0.24 | % | 0.18 | % | ||||
Total allowance for loan loss to nonperforming loans
|
216.63 | % | 242.57 | % | ||||
Total nonperforming assets to total assets
|
0.35 | % | 0.29 | % |
September 30,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
|||||||||||||||
Percent
|
Percent
|
|||||||||||||||
Amount
|
of Total
|
Amount
|
of Total
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Noninterest checking
|
$ | 82,842 | 17.22 | % | $ | 60,924 | 13.80 | % | ||||||||
Interest bearing checking
|
83,565 | 17.37 | % | 76,367 | 17.30 | % | ||||||||||
Savings
|
67,162 | 13.96 | % | 62,455 | 14.15 | % | ||||||||||
Money market accounts
|
94,547 | 19.65 | % | 91,431 | 20.71 | % | ||||||||||
Total
|
328,116 | 68.20 | % | 291,177 | 65.97 | % | ||||||||||
Certificates of deposit accounts:
|
||||||||||||||||
IRA certificates
|
34,477 | 7.17 | % | 34,216 | 7.75 | % | ||||||||||
Brokered certificates
|
7,071 | 1.47 | % | 4,195 | 0.95 | % | ||||||||||
Other certificates
|
111,464 | 23.16 | % | 111,812 | 25.33 | % | ||||||||||
Total certificates of deposit
|
153,012 | 31.80 | % | 150,223 | 34.03 | % | ||||||||||
Total deposits
|
$ | 481,128 | 100.00 | % | $ | 441,400 | 100.00 | % |
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||||
Daily
|
and
|
Yield/
|
Daily
|
and
|
Yield/
|
|||||||||||||||||||
Balance
|
Dividends
|
Cost(3)
|
Balance
|
Dividends
|
Cost(3)
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
FHLB and FRB stock
|
$ | 3,021 | $ | 5 | 0.66 | % | $ | 1,878 | $ | - | 0.00 | % | ||||||||||||
Loans receivable, net
|
384,275 | 4,390 | 4.57 | % | 304,791 | 3,658 | 4.80 | % | ||||||||||||||||
Investment securities
|
148,013 | 759 | 2.05 | % | 189,469 | 1,044 | 2.20 | % | ||||||||||||||||
Interest-bearing deposits with banks
|
4,913 | - | 0.00 | % | 4,347 | 1 | 0.09 | % | ||||||||||||||||
Total interest-earning assets
|
540,222 | 5,154 | 3.82 | % | 500,485 | 4,703 | 3.76 | % | ||||||||||||||||
Noninterest-earning assets
|
53,725 | 46,626 | ||||||||||||||||||||||
Total assets
|
$ | 593,947 | $ | 547,111 | ||||||||||||||||||||
Liabilities and equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposit accounts:
|
||||||||||||||||||||||||
Money market
|
$ | 96,076 | $ | 28 | 0.12 | % | $ | 90,248 | $ | 26 | 0.12 | % | ||||||||||||
Savings
|
65,680 | 9 | 0.05 | % | 60,139 | 7 | 0.05 | % | ||||||||||||||||
Checking
|
86,126 | 8 | 0.04 | % | 71,307 | 6 | 0.03 | % | ||||||||||||||||
Certificates of deposit
|
154,259 | 355 | 0.92 | % | 152,309 | 299 | 0.79 | % | ||||||||||||||||
Advances from FHLB and other borrowings
|
||||||||||||||||||||||||
including subordinated debt
|
60,623 | 321 | 2.12 | % | 55,750 | 177 | 1.27 | % | ||||||||||||||||
Total interest-bearing liabilities
|
462,764 | 721 | 0.62 | % | 429,753 | 515 | 0.48 | % | ||||||||||||||||
Non-interest checking
|
76,494 | 62,041 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
795 | 3,018 | ||||||||||||||||||||||
Total liabilities
|
540,053 | 494,812 | ||||||||||||||||||||||
Total equity
|
53,894 | 52,299 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 593,947 | $ | 547,111 | ||||||||||||||||||||
Net interest income/interest rate spread(1)
|
$ | 4,433 | 3.20 | % | $ | 4,188 | 3.28 | % | ||||||||||||||||
Net interest margin(2)
|
3.28 | % | 3.35 | % | ||||||||||||||||||||
Total interest-earning assets to interest-bearing liabilities
|
116.74 | % | 116.46 | % |
(1) | Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities. |
(2) | Net interest margin represents income before the provision for loan losses divided by average interest-earning assets. |
(3) | For purposes of this table, tax exempt income is not calculated on a tax equivalent basis. |
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||||
Daily
|
and
|
Yield/
|
Daily
|
and
|
Yield/
|
|||||||||||||||||||
Balance
|
Dividends
|
Cost(3)
|
Balance
|
Dividends
|
Cost(3)
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
FHLB and FRB stock
|
$ | 2,951 | $ | 25 | 1.13 | % | $ | 1,882 | $ | - | 0.00 | % | ||||||||||||
Loans receivable, net
|
361,355 | 12,607 | 4.65 | % | 282,976 | 10,291 | 4.85 | % | ||||||||||||||||
Investment securities
|
151,784 | 2,255 | 1.98 | % | 193,337 | 3,227 | 2.23 | % | ||||||||||||||||
Interest-bearing deposits with banks
|
4,835 | 6 | 0.17 | % | 4,137 | 5 | 0.16 | % | ||||||||||||||||
Total interest-earning assets
|
520,925 | 14,893 | 3.81 | % | 482,332 | 13,523 | 3.74 | % | ||||||||||||||||
Noninterest-earning assets
|
50,023 | 46,982 | ||||||||||||||||||||||
Total assets
|
$ | 570,948 | $ | 529,314 | ||||||||||||||||||||
Liabilities and equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposit accounts:
|
||||||||||||||||||||||||
Money market
|
$ | 94,245 | $ | 79 | 0.11 | % | $ | 90,638 | $ | 81 | 0.12 | % | ||||||||||||
Savings
|
65,566 | 22 | 0.05 | % | 60,480 | 23 | 0.05 | % | ||||||||||||||||
Checking
|
80,662 | 21 | 0.03 | % | 69,896 | 20 | 0.04 | % | ||||||||||||||||
Certificates of deposit
|
151,190 | 971 | 0.86 | % | 153,844 | 875 | 0.76 | % | ||||||||||||||||
Advances from FHLB and other borrowings
|
||||||||||||||||||||||||
including subordinated debt
|
54,178 | 655 | 1.61 | % | 43,200 | 518 | 1.60 | % | ||||||||||||||||
Total interest-bearing liabilities
|
445,841 | 1,748 | 0.52 | % | 418,058 | 1,517 | 0.48 | % | ||||||||||||||||
Non-interest checking
|
69,153 | 58,881 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
2,253 | 1,726 | ||||||||||||||||||||||
Total liabilities
|
517,247 | 478,665 | ||||||||||||||||||||||
Total equity
|
53,701 | 50,649 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 570,948 | $ | 529,314 | ||||||||||||||||||||
Net interest income/interest rate spread(1)
|
$ | 13,145 | 3.29 | % | $ | 12,006 | 3.26 | % | ||||||||||||||||
Net interest margin(2)
|
3.36 | % | 3.32 | % | ||||||||||||||||||||
Total interest-earning assets to interest-bearing liabilities
|
116.84 | % | 115.37 | % |
(1) | Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities. |
(2) | Net interest margin represents income before the provision for loan losses divided by average interest-earning assets. |
(3) | For purposes of this table, tax exempt income is not calculated on a tax equivalent basis. |
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Due to
|
Due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Loans receivable, net
|
$ | 954 | $ | (222 | ) | $ | 732 | $ | 769 | $ | (232 | ) | $ | 537 | ||||||||||
Investment securities
|
(229 | ) | (56 | ) | (285 | ) | (103 | ) | 128 | 25 | ||||||||||||||
Interest-bearing
|
||||||||||||||||||||||||
deposits with banks
|
- | (1 | ) | (1 | ) | 1 | (1 | ) | - | |||||||||||||||
Other earning assets
|
- | 5 | 5 | - | - | - | ||||||||||||||||||
Total interest earning assets
|
725 | (274 | ) | 451 | 667 | (105 | ) | 562 | ||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings, money market and
|
||||||||||||||||||||||||
checking accounts
|
4 | 2 | 6 | 3 | (4 | ) | (1 | ) | ||||||||||||||||
Certificates of deposit
|
4 | 52 | 56 | (7 | ) | 25 | 18 | |||||||||||||||||
Advances from FHLB and other borrowings
|
||||||||||||||||||||||||
including subordinated debentures
|
15 | 129 | 144 | 77 | (103 | ) | (26 | ) | ||||||||||||||||
Total interest-bearing liabilities
|
23 | 183 | 206 | 73 | (82 | ) | (9 | ) | ||||||||||||||||
Change in net interest income
|
$ | 702 | $ | (457 | ) | $ | 245 | $ | 594 | $ | (23 | ) | $ | 571 |
For the Nine Months Ended June 30,
|
||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Due to
|
Due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Loans receivable, net
|
$ | 2,850 | $ | (534 | ) | $ | 2,316 | $ | 1,816 | $ | (542 | ) | $ | 1,274 | ||||||||||
Investment securities
|
(694 | ) | (278 | ) | (972 | ) | (390 | ) | 434 | 44 | ||||||||||||||
Interest-bearing
|
||||||||||||||||||||||||
deposits with banks
|
1 | - | 1 | 4 | (11 | ) | (7 | ) | ||||||||||||||||
Other earning assets
|
- | 25 | 25 | - | - | - | ||||||||||||||||||
Total interest earning assets
|
2,157 | (787 | ) | 1,370 | 1,430 | (119 | ) | 1,311 | ||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings, money market and
|
||||||||||||||||||||||||
checking accounts
|
8 | (10 | ) | (2 | ) | 8 | (16 | ) | (8 | ) | ||||||||||||||
Certificates of deposit
|
(15 | ) | 111 | 96 | (15 | ) | 84 | 69 | ||||||||||||||||
Advances from FHLB and other borrowings
|
||||||||||||||||||||||||
including subordinated debentures
|
132 | 5 | 137 | 68 | (228 | ) | (160 | ) | ||||||||||||||||
Total interest-bearing liabilities
|
125 | 106 | 231 | 61 | (160 | ) | (99 | ) | ||||||||||||||||
Change in net interest income
|
$ | 2,032 | $ | (893 | ) | $ | 1,139 | $ | 1,369 | $ | 41 | $ | 1,410 |
At September 30, 2015
|
||||||||
(Unaudited)
|
||||||||
Dollar
|
% of
|
|||||||
Amount
|
Assets
|
|||||||
(Dollars in Thousands)
|
||||||||
Tangible capital:
|
||||||||
Capital level
|
$ | 56,914 | 9.74 | % | ||||
Requirement
|
8,763 | 1.50 | ||||||
Excess
|
$ | 48,151 | 8.24 | % | ||||
Core capital:
|
||||||||
Capital level
|
$ | 56,914 | 9.74 | % | ||||
Requirement
|
17,526 | 3.00 | ||||||
Excess
|
$ | 39,388 | 6.74 | % | ||||
Risk-based capital:
|
||||||||
Capital level
|
$ | 60,144 | 14.12 | % | ||||
Requirement
|
34,080 | 8.00 | ||||||
Excess
|
$ | 26,064 | 6.12 | % |
Legal Proceedings.
|
Risk Factors.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Total Number
|
Maximum
|
|||||||||||||||
of Shares
|
Number of
|
|||||||||||||||
Purchased
|
Shares that
|
|||||||||||||||
Total
|
as Part of
|
May Yet Be
|
||||||||||||||
Number of
|
Average
|
Publicly
|
Purchased
|
|||||||||||||
Shares
|
Price Paid
|
Announced Plans
|
Under the Plans
|
|||||||||||||
Purchased
|
Per Share
|
or Programs
|
or Programs
|
|||||||||||||
July 1, 2015 through July 31, 2015
|
- | $ | - | - | 100,000 | |||||||||||
August 1, 2015 through August 31, 2015
|
46,065 | 11.47 | 46,065 | 53,935 | ||||||||||||
September 1, 2015 through September 30, 2015
|
- | - | - | 53,935 | ||||||||||||
Total
|
46,065 | $ | 11.47 | 46,065 |
Defaults Upon Senior Securities.
|
Mine Safety Disclosures
|
Other Information.
|
Exhibits.
|
Exhibit
Number
|
Description
|
31.1
|
Certification by Peter J. Johnson, Chief Executive Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 (a) of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification by Laura F. Clark, Chief Financial Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 (a) of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification by Peter J. Johnson, Chief Executive Officer, and Laura F. Clark, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
EAGLE BANCORP MONTANA, INC.
|
||
|
|
|
Date: November 10, 2015
|
By:
|
/s/ Peter J. Johnson
|
Peter J. Johnson
|
||
President/CEO
|
||
|
|
|
Date: November 10, 2015
|
By:
|
/s/ Laura F. Clark
|
Laura F. Clark
|
||
Senior Vice President/CFO
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Eagle Bancorp Montana, Inc.;
|
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 Rules13a-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 quarter (the registrant's fourth 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)
|
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.
|
/s/ Peter J. Johnson | |
Peter J. Johnson | |
President and Chief Executive Officer | |
(Principal Executive Officer) |
1.
|
I have reviewed this quarterly report on Form 10-Q of Eagle Bancorp Montana, Inc.;
|
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 Rules13a-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 quarter (the registrant's fourth 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)
|
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.
|
/s/ Laura F. Clark | |
Laura F. Clark | |
Senior VP and Chief Financial Officer | |
(Principal Financial Officer)
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Peter J. Johnson
|
/s/ Laura F. Clark
|
|
Peter J. Johnson
|
Laura F. Clark
|
|
Chief Executive Officer
|
Chief Financial Officer and Principal Accounting Officer
|
|
(Principal Executive Officer) | (Principal Financial Officer) | |
November 10, 2015
|
November 10, 2015
|
Earnings Per Share (Narrative) (Detail) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding during the year on which basic earnings per share is calculated | 3,804,532 | 3,889,603 | 3,823,896 | 3,907,259 |
Average outstanding shares on which diluted earnings per share is calculated | 3,841,787 | 3,944,406 | 3,861,151 | 3,962,062 |
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