10-Q 1 d424832d10q.htm FORM 10-Q Form 10-Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

FORM 10-Q

 

 

 

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2012.

 

¨ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                     to                    

Commission File Number 0-24948

 

 

PVF Capital Corp.

(Exact name of registrant as specified in its charter)

 

 

 

Ohio   34-1659805
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)
30000 Aurora Road, Solon, Ohio   44139
(Address of principal executive offices)   (Zip Code)

(440) 248-7171

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report.)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   ¨  (Do not check if a smaller reporting company)    Smaller Reporting Company   x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Common Stock, $0.01 Par Value

    

26,392,195

(Class)

     (Outstanding at November 14, 2012)

 

 

 


PVF CAPITAL CORP.

INDEX

 

          Page  
PART I FINANCIAL INFORMATION   
Item 1.   

Financial Statements

  
  

Consolidated Statements of Financial Condition, September 30, 2012 (unaudited) and June 30, 2012

     1   
  

Consolidated Statements of Operations for the three months ended September 30, 2012 and 2011 (unaudited)

     2   
  

Consolidated Statements of Comprehensive Income for the three months ended September 30, 2012 and 2011 (unaudited)

     3   
  

Consolidated Statements of Cash Flows for the three months ended September 30, 2012 and 2011 (unaudited)

     4   
  

Notes to Consolidated Financial Statements (unaudited)

     5   
Item 2.   

Management’s Discussion and Analysis of Financial Condition and Results of Operations

     37   
Item 3.   

Quantitative and Qualitative Disclosures About Market Risk

     48   
Item 4.   

Controls and Procedures

     49   
PART II OTHER INFORMATION   
Item 1.   

Legal Proceedings

     49   
Item 1A.   

Risk Factors

     49   
Item 2.   

Unregistered Sale of Equity Securities and Use of Proceeds

     49   
Item 3.   

Defaults Upon Senior Securities

     49   
Item 4.   

Mine Safety Disclosures

     50   
Item 5.   

Other Information

     50   
Item 6.   

Exhibits

     50   
SIGNATURES   


Part I — FINANCIAL INFORMATION

PVF CAPITAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

 

     September 30,     June 30,  
     2012     2012  

ASSETS

    

Cash and amounts due from financial institutions

   $ 16,903,187      $ 5,840,608   

Interest-bearing deposits

     97,672,255        114,269,532   
  

 

 

   

 

 

 

Total cash and cash equivalents

     114,575,442        120,110,140   

Securities available for sale

     38,280,551        38,658,044   

Loans receivable held for sale, net

     19,765,946        25,062,786   

Loans receivable, net of allowance of $16,135,640 and $16,052,865

     543,186,276        541,627,515   

Office properties and equipment, net

     7,286,062        7,237,165   

Real estate owned, net

     7,232,119        7,733,578   

Federal Home Loan Bank stock

     12,811,100        12,811,100   

Bank-owned life insurance

     23,696,129        23,648,663   

Prepaid expenses and other assets

     12,289,670        14,560,882   
  

 

 

   

 

 

 

Total assets

   $ 779,123,295      $ 791,449,873   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Liabilities

    

Non-interest bearing deposits

   $ 57,769,225      $ 51,786,588   

Interest bearing deposits

     588,381,234        604,192,552   
  

 

 

   

 

 

 

Total deposits

     646,150,459        655,979,140   

Note payable

     1,019,445        1,046,111   

Long-term advances from the Federal Home Loan Bank

     35,000,000        35,000,000   

Advances from borrowers for taxes and insurance

     6,955,246        4,469,292   

Accrued expenses and other liabilities

     17,167,776        24,224,709   
  

 

 

   

 

 

 

Total liabilities

     706,292,926        720,719,252   
  

 

 

   

 

 

 

Stockholders’ equity

    

Serial preferred stock, $.01 par value, 1,000,000 shares authorized; none issued

     —          —     

Common stock, $.01 par value, 65,000,000 shares authorized; 26,392,195 and 26,217,796 shares issued, respectively

     263,922        262,178   

Additional paid-in capital

     101,297,166        100,897,561   

Retained earnings (accumulated deficit)

     (24,568,768     (26,119,855

Accumulated other comprehensive income (loss)

     (324,804     (472,116

Treasury stock at cost, 472,725 shares

     (3,837,147     (3,837,147
  

 

 

   

 

 

 

Total stockholders’ equity

     72,830,369        70,730,621   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 779,123,295      $ 791,449,873   
  

 

 

   

 

 

 

See Notes to the Consolidated Financial Statements

 

1


Part I — FINANCIAL INFORMATION

 

PVF CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Three months ended  
     September 30,  
     2012     2011  

Interest and dividends income

    

Loans

   $ 6,986,437      $ 7,104,267   

Mortgage-backed securities

     80,231        49,721   

Federal Home Loan Bank stock dividends

     135,374        127,760   

Securities

     141,238        24,217   

Federal funds sold and interest-bearing deposits

     68,295        92,498   
  

 

 

   

 

 

 

Total interest and dividends income

     7,411,575        7,398,463   
  

 

 

   

 

 

 

Interest expense

    

Deposits

     1,325,728        1,949,047   

Long-term borrowings

     270,706        272,440   
  

 

 

   

 

 

 

Total interest expense

     1,596,434        2,221,487   
  

 

 

   

 

 

 

Net interest income

     5,815,141        5,176,976   

Provision for loan losses

     1,050,000        1,500,000   
  

 

 

   

 

 

 

Net interest income after provision for loan losses

     4,765,141        3,676,976   
  

 

 

   

 

 

 

Non-interest income

    

Service charges and other fees

     180,392        178,818   

Mortgage banking activities, net

     3,126,247        1,010,165   

Gain (loss) on sale of SBA loans

     (3,686     221,218   

Increase in cash surrender value of bank-owned life insurance

     47,466        62,699   

Gain (loss) on real estate owned

     (17,881     140,112   

Provision for real estate owned losses

     (233,719     (69,400

Other, net

     192,200        127,507   
  

 

 

   

 

 

 

Total non-interest income

     3,291,019        1,671,119   
  

 

 

   

 

 

 

Non-interest expense

    

Compensation and benefits

     3,109,759        2,894,698   

Office occupancy and equipment

     569,589        598,910   

FDIC insurance

     432,239        428,699   

Professional and legal

     120,000        115,000   

Outside services

     774,845        495,667   

Franchise tax

     196,707        225,428   

Real estate owned and collection expense

     385,504        613,859   

Other

     916,430        821,609   
  

 

 

   

 

 

 

Total non-interest expense

     6,505,073        6,193,870   
  

 

 

   

 

 

 

Income (loss) before federal income taxes

     1,551,087        (845,775

Federal income tax provision (benefit)

     —          (25,178
  

 

 

   

 

 

 

Net income (loss)

   $ 1,551,087      $ (820,597
  

 

 

   

 

 

 

Basic earnings (loss) per share

   $ 0.06      $ (0.03
  

 

 

   

 

 

 

Diluted earnings (loss) per share

   $ 0.06      $ (0.03
  

 

 

   

 

 

 

Dividend declared per common share

   $ —        $ —     
  

 

 

   

 

 

 

See Notes to the Consolidated Financial Statements

 

2


Part I — FINANCIAL INFORMATION

 

PVF CAPITAL CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

     Three months ended  
     September 30,  
     2012      2011  

Net income (loss)

   $ 1,551,087       $ (820,597

Other comprehensive income (loss), net of tax

     

Unrealized holding gains (loss) on available for sale securities

     147,312         48,874   

Reclassification adjustment for (gains) included in net income

     —           —     

Tax effect

     —           —     
  

 

 

    

 

 

 

Total other comprehensive income (loss)

     147,312         48,874   
  

 

 

    

 

 

 

Total comprehensive income (loss)

   $ 1,698,399       $ (771,723
  

 

 

    

 

 

 

See Notes to the Consolidated Financial Statements

 

3


Part I — FINANCIAL INFORMATION

 

PVF CAPITAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Three months ended  
     September 30,  
     2012     2011  

Operating activities:

    

Net income (loss)

   $ 1,551,087      $ (820,597

Adjustments to reconcile net income to net cash flow from operating activities

    

Accretion of discount on available for sale securities

     (6,180     (8,940

Depreciation and amortization

     176,153        177,621   

Provision for loan losses

     1,050,000        1,500,000   

Gain on the sale of loans receivable held for sale

     (3,550,824     (847,607

(Gain) loss on the sale of SBA loans

     3,686        (221,218

Provision for real estate owned losses

     233,719        69,400   

Accretion (defferral) of loan origination fees, net

     (95,144     633,032   

(Gain) loss on disposal of real estate owned, net

     17,881        (140,112

Market adjustment for loans held for sale

     87,634        (231,052

Change in fair value of mortgage banking derivatives

     (567,931     (748,776

Stock compensation

     399,606        61,005   

Proceeds from loans receivable held for sale

     112,540,431        44,937,267   

Origination of loans receivable held for sale, net

     (105,332,333     (47,622,223

Increase in cash surrender value of bank-owned life insurance

     (47,466     (62,700

Net change in other assets and other liabilities

     (2,745,430     2,482,067   
  

 

 

   

 

 

 

Net cash from (used in) operating activities

     3,714,889        (842,833
  

 

 

   

 

 

 

Investing activities:

    

Loan repayments and originations, net

     (3,323,245     2,899,216   

Principal repayments on securities available for sale

     1,881,562        246,328   

Calls of securities available for sale

     5,750,000        8,950,000   

Purchase of securities available for sale

     (7,024,690     (3,000,000

Additions to office properties and equipment, net

     (225,050     (146,920

Proceeds from sale of real estate owned

     1,059,485        657,264   
  

 

 

   

 

 

 

Net cash from (used in) investing activities

     (1,881,938     9,605,888   
  

 

 

   

 

 

 

Financing activities:

    

Net increase in demand deposits, NOW and passbook savings

     12,928,106        (1,518,884

Net decrease in time deposits

     (22,756,787     (2,530,726

Repayment of note payable

     (26,666     (26,667

Net increase (decrease) in advances from borrowers for taxes and insurance

     2,485,954        (3,705,833

Proceeds from the issuance of common shares

     1,744        —     
  

 

 

   

 

 

 

Net cash from (used in) financing activities

     (7,367,649     (7,782,110
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (5,534,698     980,945   

Cash and cash equivalents at beginning of year

     120,110,140        149,291,405   
  

 

 

   

 

 

 

Cash and cash equivalents at end of year

   $ 114,575,442      $ 150,272,350   
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information:

    

Cash payments of interest

   $ 1,589,416      $ 2,221,594   

Cash payments of income taxes

   $ —        $ —     

Supplemental noncash investing activity:

    

Transfer of loans to real estate owned

   $ 809,626      $ 538,978   

See Notes to the Consolidated Financial Statements

 

4


Part I — FINANCIAL INFORMATION

 

PVF CAPITAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Ended

September 30, 2012 and 2011

(Unaudited)

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS

The accounting and reporting policies of PVF Capital Corp. (the “Company”) conform to U.S. generally accepted accounting principles (“U.S. GAAP”) and general industry practice. The Company’s principal subsidiary, Park View Federal Savings Bank (the “Bank”) is primarily engaged in the business of offering deposits through the issuance of savings accounts, money market accounts, and certificates of deposit and lending funds primarily for the purchase, construction, and improvement of real estate in Cuyahoga, Summit, Geauga, Lake, Medina, Lorain and Portage Counties, Ohio. The deposit accounts of the Bank are insured up to applicable limits by the Federal Deposit Insurance Corporation (the “FDIC”). The following is a description of the significant policies which the Company follows in preparing and presenting its consolidated financial statements.

Basis of Presentation: The accompanying Unaudited Consolidated Financial Statements of PVF Capital Corp. have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not contain all of the information and footnotes required by U.S. GAAP for annual financial statements and should be read in conjunction with PVF Capital Corp.’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012. These consolidated financial statements are prepared without audit and reflect all adjustments that, in the opinion of management, are necessary to present fairly the financial position of the Company at September 30, 2012, and its results of operations and cash flows for the periods presented. All such adjustments are normal and recurring in nature. The accounting principles used to prepare the consolidated financial statements are in compliance with U.S. GAAP. However, the financial statements were prepared in accordance with the instructions of Form 10-Q and, therefore, do not purport to contain all necessary financial and note disclosures required by U.S. GAAP.

Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the Bank, PVF Service Corporation (“PVFSC”), Mid Pines Land Company, PVF Holdings, Inc., PVF Mortgage Corp. and PVF Community Development Corp. PVFSC owns certain premises and leases them to the Bank. Mid Pines Land Company, PVF Holdings, Inc., PVF Mortgage Corp. and PVF Community Development Corp. did not have any significant assets or activity as of or for the periods presented. All significant intercompany transactions and balances are eliminated in consolidation. In the period ended September 30, 2012, the Company reclassified certain loans between the loan portfolio segments and reclassified certain deposits between interest bearing and non-interest bearing as presented previously in the Company’s Annual Report on Form 10-K to conform to the current period presentation.

PVFSC and the Bank have entered into various nonconsolidated joint ventures that own real estate, including properties leased to the Bank. The Bank has created various limited liability companies that have taken title to property acquired through or in lieu of foreclosure.

Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets

 

5


Part I — FINANCIAL INFORMATION

 

and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The allowance for loan losses, valuation of mortgage servicing rights, fair value of mortgage banking derivatives, valuation of loans held for sale, fair value of securities, valuation of other real estate owned, and the realizability of deferred tax assets are particularly susceptible to change.

NOTE 2 — SECURITIES

As of September 30, 2012 and June 30, 2012, respectively, the amortized cost and fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

 

     September 30, 2012  
            Gross      Gross        
     Amortized      Unrealized      Unrealized     Fair  
     Cost      Gains      Losses     Value  

FNMA structured notes

   $ 2,000,000       $ 3,600       $ 0      $ 2,003,600   

Trust preferred and corporate securities

     18,210,212         460,346         (13,562     18,656,997   

Mortgage-backed GSE securities

     17,247,156         387,506         (14,708     17,619,954   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 37,457,369       $ 851,452       $ (28,270   $ 38,280,551   
  

 

 

    

 

 

    

 

 

   

 

 

 
     June 30, 2012  
            Gross      Gross        
     Amortized      Unrealized      Unrealized     Fair  
     Cost      Gains      Losses     Value  

FNMA structured notes

   $ 2,000,000       $ 9,320       $ 0      $ 2,009,320   

Trust preferred and corporate securities

     20,964,197         344,230         (46,665     21,261,762   

Mortgage-backed GSE securities

     15,093,864         293,098           15,386,962   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 38,058,061       $ 646,648       $ (46,665   $ 38,658,044   
  

 

 

    

 

 

    

 

 

   

 

 

 

Management performs a quarterly evaluation of investment securities for other-than-temporary impairment. At September 30, 2012 and June 30, 2012, respectively, the gross unrealized losses were in a loss position for less than 12 months. Management does not believe that any of these losses at September 30, 2012 or June 30, 2012 represent an other-than-temporary impairment. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized within net income in the period the other-then-temporary impairment is identified.

The amortized cost and fair value of securities available-for-sale, by contractual maturity, are shown below:

 

6


Part I — FINANCIAL INFORMATION

 

     September 30, 2012  
     Amortized         
     Cost      Fair Value  

One to five years

   $ 2,000,000       $ 2,003,600   

Five to ten years

     5,037,865         5,102,220   

Greater than 10 years

     13,172,347         13,554,827   

Mortgage-backed GSE securities

     17,225,615         17,619,954   
  

 

 

    

 

 

 

Total

   $ 37,435,828       $ 38,280,551   
  

 

 

    

 

 

 

The Fannie Mae (“FNMA”) structured note held at September 30, 2012 is callable on November 9, 2012 and quarterly thereafter, has multiple coupon resets and matures on November 9, 2016. These mortgage-backed securities are backed by residential mortgage loans and do not mature on a single maturity date.

Securities pledged as collateral for contingent funding at the Federal Home Loan Bank of Cincinnati were approximately $14.6 million.

 

7


Part I — FINANCIAL INFORMATION

 

NOTE 3 — LOANS RECEIVABLE

Loans receivable at September 30, 2012, and June 30, 2012 consisted of the following:

 

     September 30,     June 30,  
     2012     2012  

One-to-Four Family Loans:

    

1-4 Family Owner Occupied

   $ 59,297,788      $ 58,743,933   

1-4 Family Non-Owner Occupied

     34,303,456        34,368,320   

1-4 Family Second Mortgage

     28,729,779        29,202,145   

Home Equity Lines of Credit

     64,933,215        65,908,899   

Home Equity Investment Lines of Credit

     5,267,763        5,645,851   

One-to-Four Family Construction Loans:

    

1-4 Family Construction

     1,341,302        514,052   

1-4 Family Construction Models/Speculative

     621,042        1,608,137   

Multi-Family Loans:

    

Multi-Family

     62,638,057        53,959,459   

Multi-Family Second Mortgage

     144,754        145,642   

Multi-Family Construction

     108,428        5,375,000   

Commercial Real Estate Loans:

    

Commercial

     198,023,597        198,287,457   

Commercial Second Mortgage

     4,799,704        5,750,283   

Commercial Lines of Credit

     22,656,803        22,335,619   

Commercial Construction

     9,126,892        7,732,736   

Commercial and Industrial Loans

     37,556,592        35,443,184   

Land Loans:

    

Lot Loans

     9,346,567        12,091,093   

Acquisition and Development Loans

     18,968,781        19,093,006   

Consumer Loans

     2,101,434        2,112,708   
  

 

 

   

 

 

 

Total loans receivable

     559,965,954        558,317,524   

Net deferred loan origination fees

     (644,038     (637,144

Allowance for loan losses

     (16,135,640     (16,052,865
  

 

 

   

 

 

 

Total loans receivable, net

   $ 543,186,276      $ 541,627,515   
  

 

 

   

 

 

 

 

8


Part I — FINANCIAL INFORMATION

 

The following table presents activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2012:

 

           One-to-Four           Commercial     Commercial                    
     One-to-Four     Family     Multi-     Real     and                    
     Family     Construction     Family     Estate     Industrial     Land     Consumer     Total  

Beginning balance at June 30, 2012

   $ 5,765,276      $ 305,312      $ 1,903,138      $ 5,084,179      $ 928,043      $ 2,057,301      $ 9,616      $ 16,052,865   

Provision for loan losses

     623,779        43,601        (766,960     943,294        312,966        (120,627     13,947        1,050,000   

Charge-offs

     (741,685     (45,959     —          (248,493     (12,500     (20,078     (13,000     (1,081,715

Recoveries

     42,569        10,000        —          17,614        1,585        42,480        242        114,490   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance at September 30, 2012

   $ 5,689,939      $ 312,954      $ 1,136,178      $ 5,796,594      $ 1,230,094      $ 1,959,076      $ 10,805      $ 16,135,640   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2011:

 

           One-to-Four           Commercial     Commercial                     
     One-to-Four     Family     Multi-     Real     and                     
     Family     Construction     Family     Estate     Industrial     Land     Consumer      Total  

Beginning balance at June 30, 2011

   $ 8,841,454      $ 1,266,740      $ 1,767,335      $ 8,458,943      $ 1,663,894      $ 7,891,305      $ 107,222       $ 29,996,893   

Provision for loan losses

     (511,394     39,566        (360,444     949,896        493,657        728,029        160,690         1,500,000   

Charge-offs

     (476,158     (109,322     (236,663     (1,089,347     (29,609     (28,421     —           (1,969,520

Recoveries

     4,765        —          —          19,271        1,755        —          —           25,791   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Ending balance at September 30, 2011

   $ 7,858,667      $ 1,196,984      $ 1,170,228      $ 8,338,763      $ 2,129,697      $ 8,590,913      $ 267,912       $ 29,553,164   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

9


Part I — FINANCIAL INFORMATION

 

The following table presents the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2012. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees, but excludes accrued interest receivable which is not considered to be material.

 

          One-to-Four           Commercial     Commercial                    
    One-to-Four     Family     Multi-     Real     and                    
    Family     Construction     Family     Estate     Industrial     Land     Consumer     Total  

Allowance for loan losses

               

Ending allowance balance attributable to loans

               

Individually evaluated for impairment

  $ 699,204      $ 101,716      $ —        $ 98,725      $ 300,860      $ 252,000      $ —        $ 1,452,505   

Collectively evaluated for impairment

    4,990,735        211,238        1,136,178        5,697,869        929,234        1,707,076        10,805        14,683,135   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending allowance balance

  $ 5,689,939      $ 312,954      $ 1,136,178      $ 5,796,594      $ 1,230,094      $ 1,959,076      $ 10,805      $ 16,135,640   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans

               

Loans individually evaluated for impairment

  $ 12,208,532      $ 833,904      $ 300,254      $ 11,851,912      $ 540,441      $ 6,763,662      $ —        $ 32,498,705   

Loans collectively evaluated for impairment

    180,102,030        1,126,183        62,518,652        222,485,254        36,972,956        21,519,119        2,099,017        526,823,211   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending loans balance

  $ 192,310,562      $ 1,960,087      $ 62,818,906      $ 234,337,166      $ 37,513,397      $ 28,282,781      $ 2,099,017      $ 559,321,916   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

10


Part I — FINANCIAL INFORMATION

 

The following table presents the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of June 30, 2012. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees, but excludes accrued interest receivable which is not considered to be material.

 

          One-to-Four           Commercial     Commercial                    
    One-to-Four     Family     Multi-     Real     and                    
    Family     Construction     Family     Estate     Industrial     Land     Consumer     Total  

Allowance for loan losses

               

Ending allowance balance attributable to loans

               

Individually evaluated for impairment

  $ 665,033      $ 101,716      $ —        $ 98,725      $ 300,860      $ 252,000      $ —        $ 1,418,334   

Collectively evaluated for impairment

    5,100,243        203,596        1,903,138        4,985,454        627,183        1,805,301        9,616        14,634,531   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending allowance balance

  $ 5,765,276      $ 305,312      $ 1,903,138      $ 5,084,179      $ 928,043      $ 2,057,301      $ 9,616      $ 16,052,865   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans

               

Loans individually evaluated for impairment

  $ 13,243,350      $ 880,749      $ 622,228      $ 11,902,730      $ 740,297      $ 7,189,109      $ —        $ 34,578,463   

Loans collectively evaluated for impairment

    180,404,558        1,239,018        58,789,996        221,936,205        34,662,439        23,959,404        2,110,297        523,101,917   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending loans balance

  $ 193,647,908      $ 2,119,767      $ 59,412,224      $ 233,838,935      $ 35,402,736      $ 31,148,513      $ 2,110,297      $ 557,680,380   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

11


Part I — FINANCIAL INFORMATION

 

The following table presents loans individually evaluated for impairment by class of loan as of September 30, 2012 and the average recorded investment and interest income recognized by class for the three months ended September 30, 2012:

 

     September 30, 2012  
     Unpaid             Allowance for      Average      Interest      Cash Basis  
     Principal      Recorded      Loan Losses      Recorded      Income      Interest  
     Balance (1)      Investment      Allocated      Investment      Recognized      Recognized  

With no related allowance recorded

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 5,878,741       $ 5,075,565       $ 0       $ 5,373,322       $ 0       $ 0   

1-4 Family Non-Owner Occupied

     3,487,465         2,130,102         0         2,291,842         164         164   

1-4 Family Second Mortgage

     1,405,390         1,142,585         0         1,186,435         0         0   

Home Equity Lines of Credit

     1,751,282         1,749,268         0         1,790,931         0         0   

Home Equity Investment Lines of Credit

     157,122         156,941         0         156,942         0         0   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     0         0         0            0         0   

1-4 Family Construction Models/Speculative

     678,779         308,146         0         331,566         0         0   

Multi-Family Loans:

                 

Multi-Family

     312,714         300,254         0         461,241         0         0   

Multi-Family Second Mortgage

     0         0         0         0         0         0   

Multi-Family Construction

     0         0         0         0         0         0   

Commercial Real Estate Loans:

                 

Commercial

     10,366,525         9,239,212         0         9,262,945         43,972         43,972   

Commercial Second Mortgage

     0         0         0            0         0   

Commercial Lines of Credit

     613,910         613,204         0         614,870         0         0   

Commercial Construction

     828,491         643,855         0         643,859         0         0   

Commercial and Industrial Loans

     484,799         239,927         0         339,854         0         0   

Land Loans:

                 

Lot Loans

     5,379,609         4,254,141         0         3,966,345         11,569         11,569   

Acquisition and Development Loans

     4,990,178         2,374,790         0         2,874,945         0         0   

Consumer Loans

     0         0         0         0         0         0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total with no related allowance recorded

   $ 36,335,005       $ 28,227,990       $ 0       $ 29,295,097       $ 55,705       $ 55,705   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

With an allowance recorded

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 231,051       $ 230,786       $ 39,982       $ 231,635       $ 0       $ 0   

1-4 Family Non-Owner Occupied

     116,463         116,329         8,286         116,778         0         0   

1-4 Family Second Mortgage

     246,621         246,337         14,685         246,674         592         592   

Home Equity Lines of Credit

     963,762         962,653         338,080         928,753         0         0   

Home Equity Investment Lines of Credit

     398,424         397,966         298,171         402,629         0         0   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     0         0         0         0         0         0   

1-4 Family Construction Models/Speculative

     526,363         525,758         101,716         525,760         7,062         7,062   

Multi-Family Loans:

                 

Multi-Family

     0         0         0         0         0         0   

Multi-Family Second Mortgage

     0         0         0         0         0         0   

Multi-Family Construction

     0         0         0         0         0         0   

Commercial Real Estate Loans:

                 

Commercial

     1,357,202         1,355,641         98,725         1,355,647         0         0   

Commercial Second Mortgage

     0         0         0         0         0         0   

Commercial Lines of Credit

     0         0         0            0         0   

Commercial Construction

     0         0         0         0         0         0   

Commercial and Industrial Loans

     300,860         300,514         300,860         300,515         0         0   

Land Loans:

                 

Lot Loans

     134,886         134,731         252,000         135,095         2,031         2,031   

Acquisition and Development Loans

     0         0         0         0         0         0   

Consumer Loans

     0         0         0         0         0         0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total with an allowance recorded

   $ 4,275,632       $ 4,270,715       $ 1,452,505       $ 4,243,486       $ 9,685       $ 9,685   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans evaluated for impairment

   $ 40,610,637       $ 32,498,705       $ 1,452,505       $ 33,538,583       $ 65,390       $ 65,390   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) There are $14.5 million of loans individually identified for impairment accruing interest.

 

12


Part I — FINANCIAL INFORMATION

 

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2012:

 

     June 30, 2012  
     Unpaid             Allowance for      Average      Interest      Cash Basis  
     Principal      Recorded      Loan Losses      Recorded      Income      Interest  
     Balance (1)      Investment      Allocated      Investment      Recognized      Recognized  

With no related allowance recorded

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 6,380,803       $ 5,671,079       $ 0       $ 5,437,834       $ 30,882       $ 30,882   

1-4 Family Non-Owner Occupied

     4,597,708         2,453,581         0         3,503,049         48,828         48,828   

1-4 Family Second Mortgage

     1,455,914         1,230,284         0         1,374,161         3,958         3,958   

Home Equity Lines of Credit

     1,834,685         1,832,595         0         1,344,562         0         0   

Home Equity Investment Lines of Credit

     157,120         156,943         0         204,703         0         0   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     0         0         0         52,573         4,821         4,821   

1-4 Family Construction Models/Speculative

     678,779         354,986         0         475,027         0         0   

Multi-Family Loans:

                 

Multi-Family

     635,053         622,228         0         550,760         4,081         4,081   

Multi-Family Second Mortgage

     0         0         0         0         0         0   

Multi-Family Construction

     0         0         0         0         0         0   

Commercial Real Estate Loans:

                 

Commercial

     10,902,253         9,286,679         0         8,005,131         147,148         147,148   

Commercial Second Mortgage

     0         0         0         192,399         1,660         1,660   

Commercial Lines of Credit

     617,240         616,536         0         2,413,942         0         0   

Commercial Construction

     828,490         643,863         0         575,159         0         0   

Commercial and Industrial Loans

     801,075         439,781         0         2,335,961         662         662   

Land Loans:

                 

Lot Loans

     5,235,050         3,678,550         0         2,955,360         5,519         5,519   

Acquisition and Development Loans

     5,986,575         3,375,100         0         2,258,295         19,132         19,132   

Consumer Loans

     0         0         0         0         0         0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total with no related allowance recorded

   $ 40,110,745       $ 30,362,205       $ 0       $ 31,678,916       $ 266,691       $ 266,691   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

With an allowance recorded

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 232,751       $ 232,485       $ 39,981       $ 526,956       $ 0       $ 0   

1-4 Family Non-Owner Occupied

     117,360         117,226         8,286         1,243,154         10,112         10,112   

1-4 Family Second Mortgage

     247,293         247,011         14,685         175,881         0         0   

Home Equity Lines of Credit

     895,875         894,852         299,759         1,629,256         0         0   

Home Equity Investment Lines of Credit

     407,757         407,293         302,322         470,382         0         0   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     0         0         0         0         

1-4 Family Construction Models/Speculative

     526,363         525,762         101,716         1,064,520         14,047         14,047   

Multi-Family Loans:

                 

Multi-Family

     0         0         0         92,056         0         0   

Multi-Family Second Mortgage

     0         0         0         0         0         0   

Multi-Family Construction

     0         0         0         0         0         0   

Commercial Real Estate Loans:

                 

Commercial

     1,357,202         1,355,653         98,725         3,796,149         37,340         37,340   

Commercial Second Mortgage

     0         0         0         34,220         0         0   

Commercial Lines of Credit

     0         0         0         48,854         0         0   

Commercial Construction

     0         0         0         711,804         0         0   

Commercial and Industrial Loans

     300,860         300,517         300,860         1,404,807         0         0   

Land Loans:

                 

Lot Loans

     135,614         135,459         252,000         962,537         0         0   

Acquisition and Development Loans

     0         0         0         2,397,176         0         0   

Consumer Loans

     0         0         0         0         0         0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total with an allowance recorded

   $ 4,221,075       $ 4,216,258       $ 1,418,334       $ 14,557,752       $ 61,499       $ 61,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans evaluated for impairment

   $ 44,331,820       $ 34,578,463       $ 1,418,334       $ 46,236,668       $ 328,190       $ 328,190   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) There are $13.9 million of loans individually identified for impairment accruing interest.

 

13


Part I — FINANCIAL INFORMATION

 

The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2011:

 

     September 30, 2011  
     Unpaid             Allowance for      Average      Interest      Cash Basis  
     Principal      Recorded      Loan Losses      Recorded      Income      Interest  
     Balance (1)      Investment      Allocated      Investment      Recognized      Recognized  

With no related allowance recorded

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 6,101,095       $ 6,091,111       $ —         $ 6,605,736       $ 47,473       $ 47,473   

1-4 Family Non-Owner Occupied

     2,845,537         2,840,881         —           1,998,029         7,295         7,295   

1-4 Family Second Mortgage

     1,517,563         1,515,080         —           1,279,294         107         107   

Home Equity Lines of Credit

     796,506         795,203         —           867,519         582         582   

Home Equity Investment Lines of Credit

     310,121         309,614         —           221,646         317         317   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     —           —           —           —           —           —     

1-4 Family Construction Models/Speculative

     176,887         176,598         —           176,753         1,322         1,322   

Multi-Family Loans:

                 

Multi-Family

     305,904         305,404         —           1,224,791         —           —     

Multi-Family Second Mortgage

     —           —           —           —           —           —     

Multi-Family Construction

     —           —           —           —           —           —     

Commercial Real Estate Loans:

                 

Commercial

     7,266,866         7,254,974         —           6,842,586         25,577         25,577   

Commercial Second Mortgage

     571,473         570,538         —           570,519         —           —     

Commercial Lines of Credit

     2,623,140         2,618,848         —           2,758,567         2,186         2,186   

Commercial Construction

     370,000         369,395         —           369,382         —           —     

Commercial and Industrial Loans

     2,559,945         2,555,755         —           2,057,142         —           —     

Land Loans:

                 

Lot Loans

     1,344,192         1,341,993         —           1,153,055         807         807   

Acquisition and Development Loans

     109,818         109,638         —           274,431         —           —     

Consumer Loans

     —           —           —              —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total with no related allowance recorded

   $ 26,899,047       $ 26,855,032       $ —         $ 26,399,450       $ 85,666       $ 85,666   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

With an allowance recorded

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 1,631,018       $ 1,628,349       $ 405,552       $ 1,158,082       $ 719       $ 719   

1-4 Family Non-Owner Occupied

     4,625,921         4,618,352         1,924,308         4,747,990         3,565         3,565   

1-4 Family Second Mortgage

     457,261         456,513         224,653         361,465         —           —     

Home Equity Lines of Credit

     2,329,197         2,325,385         987,669         2,298,073         —           —     

Home Equity Investment Lines of Credit

     345,735         345,170         102,008         345,158         1,286         1,286   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     —           —           —           —           —           —     

1-4 Family Construction Models/Speculative

     2,685,405         2,681,011         862,554         2,838,155         —           —     

Multi-Family Loans:

                 

Multi-Family

     368,828         368,224         226,067         368,212         —           —     

Multi-Family Second Mortgage

     —           —           —           —           1,660         1,660   

Multi-Family Construction

     —           —           —           —           —           —     

Commercial Real Estate Loans:

                 

Commercial

     6,378,282         6,367,846         929,808         7,485,402         6,936         6,936   

Commercial Second Mortgage

     137,105         136,881         3,553         68,440         —           —     

Commercial Lines of Credit

     —           —           —           —           —           —     

Commercial Construction

     2,851,883         2,847,217         751,178         3,146,613         —           —     

Commercial and Industrial Loans

     3,279,788         3,274,422         1,041,066         2,456,243         2,920         2,920   

Land Loans:

                 

Lot Loans

     3,202,019         3,196,779         1,291,302         3,084,307         6,742         6,742   

Acquisition and Development Loans

     9,604,420         9,588,705         4,810,417         9,826,391         24,176         24,176   

Consumer Loans

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total with an allowance recorded

   $ 37,896,862       $ 37,834,854       $ 13,560,135       $ 38,184,531       $ 48,004       $ 48,004   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans evaluated for impairment

   $ 64,795,909       $ 64,689,886       $ 13,560,135       $ 64,583,981       $ 133,670       $ 133,670   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) There are $17.0 million of loans individually identified for impairment accruing interest.

 

14


Part I — FINANCIAL INFORMATION

 

Past Due and Non-Accrual Loans

The following table presents the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loan as of September 30, 2012 and June 30, 2012. Non-accrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

 

     September 30, 2012      June 30, 2012  
            Loans Past Due             Loans Past Due  
            Over 90 Days             Over 90 Days  
     Nonaccrual(1)      Still Accruing(2)      Nonaccrual(1)      Still Accruing(2)  

One-to-Four Family Loans:

           

1-4 Family Owner Occupied

   $ 2,293,702       $ —         $ 2,871,746       $ —     

1-4 Family Non-Owner Occupied

     2,084,520         0         2,461,281         0   

1-4 Family Second Mortgage

     481,843         0         566,444         0   

Home Equity Lines of Credit

     2,715,044         0         2,727,447         0   

Home Equity Investment Lines of Credit

     555,545         0         564,235         0   

One-to-Four Family Construction Loans:

           

1-4 Family Construction

     —           0         0         0   

1-4 Family Construction Models/Speculative

     308,927         0         355,355         0   

Multi-Family Loans:

           

Multi-Family

     5,720         0         324,602         0   

Multi-Family Second Mortgage

     —           0         0         0   

Multi-Family Construction

     —           0         0         0   

Commercial Real Estate Loans:

           

Commercial

     3,146,513         0         3,310,170         0   

Commercial Second Mortgage

     —           0         0         0   

Commercial Lines of Credit

     613,910         0         616,537         0   

Commercial Construction

     644,808         0         644,072         0   

Commercial and Industrial Loans

     238,229         0         437,729         0   

Land Loans:

           

Lot Loans

     3,578,542         0         3,815,778         0   

Acquisition and Development Loans

     1,197,045         0         1,380,199         0   

Consumer Loans

     —           0         0         0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 17,864,348       $ —         $ 20,075,595       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Non-accrual status denotes loans on which, in the opinion of management, the collection of additional interest is unlikely, or loans that meet the non-accrual criteria established by regulatory authorities. Payments received on a non-accrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on an assessment of the collectibility of the principal balance of the loan.
(2) At September 30, 2012 and June 30, 2012, the Company had balances of approximately $6.1 million and $6.3 million, respectively, in loans that have matured and continue to make current payments. These loans are not considered past due as a result of their payment status being current.

 

15


Part I — FINANCIAL INFORMATION

 

The following table presents the aging of the recorded investment in past due loans as of September 30, 2012 by class of loan. Performing loans are accruing loans less than 90 days past due. Nonperforming loans are all loans not accruing or greater than 90 days past due and accruing. At September 30, 2012, the Company had a balance of approximately $6.1 million in loans that were contractually past maturity but were not considered past due as a result of the payment status being current.

 

                   Greater
Than
                      
     30-59 Days      60-89 Days      90 Days      Total      Loans Not         
     Past Due      Past Due      Past Due      Past Due      Past Due      Total  

Performing Loans

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 2,050,531       $ 247,273       $ —         $ 2,297,804       $ 54,638,081       $ 56,935,885   

1-4 Family Non-Owner Occupied

     16,284         —           —           16,284         32,163,198         32,179,482   

1-4 Family Second Mortgage

     273,583         —           —           273,583         27,941,310         28,214,893   

Home Equity Lines of Credit

     777,134         19,991         —           797,125         61,346,364         62,143,489   

Home Equity Investment Lines of Credit

     235,512         —           —           235,512         4,470,647         4,706,159   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     —           —           —           —           1,339,759         1,339,759   

1-4 Family Construction Models/Speculative

     —           —           —           —           311,401         311,401   

Multi-Family Loans:

                 

Multi-Family

     235,540         —           —           235,540         62,324,755         62,560,295   

Multi-Family Second Mortgage

     —           —           —           —           144,588         144,588   

Multi-Family Construction

     —           —           —           —           108,303         108,303   

Commercial Real Estate Loans:

                 

Commercial

     405,037         616,238         —           1,021,275         193,628,054         194,649,329   

Commercial Second Mortgage

     —           —           —           —           4,794,184         4,794,184   

Commercial Lines of Credit

     587,524         1,183,484         —           1,771,008         20,245,827         22,016,835   

Commercial Construction

     —           —           —           —           8,471,587         8,471,587   

Commercial and Industrial Loans

                 37,275,168         37,275,168   

Land Loans:

                 

Lot Loans

     14,622         95,903         —           110,525         5,646,750         5,757,275   

Acquisition and Development Loans

     —           —           —           —           17,749,919         17,749,919   

Consumer Loans

     —           —           —           —           2,099,017         2,099,017   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Performing Loans

   $ 4,595,767       $ 2,162,889       $ —         $ 6,758,656       $ 534,698,912       $ 541,457,568   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Nonperforming Loans

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ —         $ —         $ 2,036,669       $ 2,036,669       $ 257,033       $ 2,293,702   

1-4 Family Non-Owner Occupied

     57,235         58,470         1,870,021         1,985,726         98,794         2,084,520   

1-4 Family Second Mortgage

     —           41,014         393,349         434,363         47,480         481,843   

Home Equity Lines of Credit

     119,966         —           2,249,808         2,369,774         345,270         2,715,044   

Home Equity Investment Lines of Credit

     84,536         —           471,009         555,545         —           555,545   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     —           —           —           —           —           —     

1-4 Family Construction Models/Speculative

     —           —           190,256         190,256         118,671         308,927   

Multi-Family Loans:

                 

Multi-Family

     —           —           5,720         5,720         —           5,720   

Multi-Family Second Mortgage

     —           —           —           —           —           —     

Multi-Family Construction

     —           —           —           —           —           —     

Commercial Real Estate Loans:

                 

Commercial

     —           —           3,013,679         3,013,679         132,834         3,146,513   

Commercial Second Mortgage

     —           —           —           —           —           —     

Commercial Lines of Credit

     —           —           494,972         494,972         118,938         613,910   

Commercial Construction

     —           —           644,808         644,808         —           644,808   

Commercial and Industrial Loans

     —           —           38,229         38,229         200,000         238,229   

Land Loans:

                 

Lot Loans

     —           —           3,096,352         3,096,352         482,190         3,578,542   

Acquisition and Development Loans

     —           —           1,197,045         1,197,045         —           1,197,045   

Consumer Loans

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Nonperforming Loans

   $ 261,737       $ 99,484       $ 15,701,917       $ 16,063,138       $ 1,801,210       $ 17,864,348   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Loans

   $ 4,857,504       $ 2,262,373       $ 15,701,917       $ 22,821,794       $ 536,500,122       $ 559,321,916   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

16


Part I — FINANCIAL INFORMATION

 

The following table presents the aging of the recorded investment in past due loans as of June 30, 2012 by class of loan. Performing loans are accruing loans less than 90 days past due. Nonperforming loans are all loans not accruing. At June 30, 2012, the Company had a balance of approximately $6.3 million in loans that were contractually past maturity but were not considered past due as a result of the payment status being current.

 

                   Greater
Than
                      
     30-59 Days      60-89 Days      90 Days      Total      Loans Not         
     Past Due      Past Due      Past Due      Past Due      Past Due      Total  

Performing Loans

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 584,430       $ —         $ —         $ 584,430       $ 55,220,719       $ 55,805,149   

1-4 Family Non-Owner Occupied

     375,660         303,667         —           679,327         31,188,492         31,867,819   

1-4 Family Second Mortgage

     14,221         —           —           14,221         28,588,155         28,602,376   

Home Equity Lines of Credit

     114,558         23,230         —           137,788         62,968,449         63,106,237   

Home Equity Investment Lines of Credit

     200,657         —           —           200,657         4,874,516         5,075,173   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     —           145,771         —           145,771         367,695         513,466   

1-4 Family Construction Models/Speculative

     —           —           —           —           1,250,946         1,250,946   

Multi-Family Loans:

                 

Multi-Family

     —           —           —           —           53,573,280         53,573,280   

Multi-Family Second Mortgage

     —           —           —           —           145,476         145,476   

Multi-Family Construction

     —           —           —           —           5,368,866         5,368,866   

Commercial Real Estate Loans:

                 

Commercial

     744,536         —           —           744,536         194,006,468         194,751,004   

Commercial Second Mortgage

     —           —           —           —           5,743,721         5,743,721   

Commercial Lines of Credit

     —           —           —           —           21,693,593         21,693,593   

Commercial Construction

     —           —           —           —           7,079,839         7,079,839   

Commercial and Industrial Loans

     —           —           —           —           34,965,008         34,965,007   

Land Loans:

                 

Lot Loans

     —           —           —           —           8,261,518         8,261,518   

Acquisition and Development Loans

     —           —           —           —           17,691,018         17,691,018   

Consumer Loans

     —           58,394         —           58,394         2,051,903         2,110,297   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Performing Loans

   $ 2,034,062       $ 531,062       $ —         $ 2,565,124       $ 535,039,662       $ 537,604,785   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Nonperforming Loans

                 

One-to-Four Family Loans:

                 

1-4 Family Owner Occupied

   $ 105,333       $ —         $ 2,124,062       $ 2,229,395       $ 642,351       $ 2,871,746   

1-4 Family Non-Owner Occupied

     —           —           2,405,774         2,405,774         55,507         2,461,281   

1-4 Family Second Mortgage

     —           —           499,154         499,154         67,290         566,444   

Home Equity Lines of Credit

     14,607         —           2,371,962         2,386,569         340,878         2,727,447   

Home Equity Investment Lines of Credit

     —           134,195         430,041         564,236         —           564,236   

One-to-Four Family Construction Loans:

                 

1-4 Family Construction

     —           —           —           —           —           —     

1-4 Family Construction Models/Speculative

     —           —           235,945         235,945         119,410         355,355   

Multi-Family Loans:

                 

Multi-Family

     —           —           324,602         324,602         —           324,602   

Multi-Family Second Mortgage

     —           —           —           —           —           —     

Multi-Family Construction

     —           —           —           —           —           —     

Commercial Real Estate Loans:

                 

Commercial

     —           —           3,166,992         3,166,992         143,178         3,310,170   

Commercial Second Mortgage

     —           —           —           —           —           —     

Commercial Lines of Credit

     —           122,129         494,407         616,536         —           616,536   

Commercial Construction

     —           —           644,072         644,072         —           644,072   

Commercial and Industrial Loans

     —           —           237,957         237,957         199,772         437,729   

Land Loans:

                 

Lot Loans

     —           —           3,144,721         3,144,721         671,057         3,815,778   

Acquisition and Development Loans

     —           —           1,380,199         1,380,199         —           1,380,199   

Consumer Loans

     —           —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Nonperforming Loans

   $ 119,940       $ 256,324       $ 17,459,888       $ 17,836,152       $ 2,239,443       $ 20,075,595   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Loans

   $ 2,154,002       $ 787,386       $ 17,459,888       $ 20,401,276       $ 537,279,105       $ 557,680,380   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

17


Part I — FINANCIAL INFORMATION

 

Troubled Debt Restructurings:

Included in loans individually impaired are loans with recorded investment of $15,345,654 and $15,590,705 for which the Company has allocated $153,391 of specific reserves to customers whose terms have been modified in troubled debt restructurings as of both September 30, 2012 and June 30, 2012, respectively. Included in troubled debt restructurings are $1,608,276 and $1,805,855 of restructured loans on non-accrual at September 30, 2012 and June 30, 2012, respectively. Of the restructured loans, both performing and non-accrual, one loan totaling $111,944 was not performing in accordance with its modified terms. There are no commitments to lend additional amounts at September 30, 2012 and June 30, 2012.

The following table presents the aggregate balance of loans by loan class whose terms have been modified in troubled debt restructurings as of September 30, 2012 and June 30, 2012:

 

            Outstanding             Outstanding  
            Recorded             Recorded  
     Number      Investment      Number      Investment  
     of Loans      9/30/2012      of Loans      6/30/2012  

Troubled Debt Restructurings:

           

One-to-Four Family Loans:

           

1-4 Family Owner Occupied

     20       $ 3,756,859         20       $ 3,775,715   

1-4 Family Non-Owner Occupied

     1         49,594         1         53,993   

1-4 Family Second Mortgage

     5         908,979         5         912,147   

Home Equity Lines of Credit

     1         63,782         1         63,782   

Home Equity Investment Lines of Credit

     0         —           0         0   

One-to-Four Family Construction Loans:

           

1-4 Family Construction

     0         —           0         0   

1-4 Family Construction Models/Speculative

     0         —           0         0   

Multi-Family Loans:

           

Multi-Family

     1         294,893         1         297,979   

Multi-Family Second Mortgage

     0         —           0         0   

Multi-Family Construction

     0         —           0         0   

Commercial Real Estate Loans:

           

Commercial

     12         8,230,906         12         8,264,020   

Commercial Second Mortgage

     0         —           0         0   

Commercial Lines of Credit

     0         —           0         0   

Commercial Construction

     0         —           0         0   

Commercial and Industrial Loans

     2         40,485         2         40,696   

Land Loans:

           

Lot Loans

     0         —           0         0   

Acquisition and Development Loans

     2         2,000,156         2         2,182,373   

Consumer Loans

     0         —           0         0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     44       $ 15,345,654         44       $ 15,590,705   
  

 

 

    

 

 

    

 

 

    

 

 

 

The summary of activity for troubled debt restructured loans for the three months ending September 30, 2012 was as follows:

 

     Three months ended  
     September 30, 2012  

Troubled Debt Restructurings:

  

Beginning Balance

   $ 15,590,705   

Additions

     —     

Charge-offs

     (3,688

Payoffs or pay downs

     (241,363
  

 

 

 

Ending Balance

   $ 15,345,654   
  

 

 

 

 

18


Part I — FINANCIAL INFORMATION

 

During the periods ended September 30, 2012 and September 30, 2011, the terms of certain loans to borrowers experiencing financial difficulty were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

The following table presents loans, by classes, which were modified during the three months ended September 30, 2012. All modifications during the three months ended September 30, 2012 were limited to loans which were already classified as troubled debt restructurings and involved an extension of the maturity dates and were for periods ranging from 12 months to 24 months.

 

     September 30, 2012  
            Pre-Modification      Post-Modification  
     Number      Outstanding
Recorded
     Outstanding
Recorded
 
     of Loans      Investment      Investment  

Troubled Debt Restructurings:

        

1-4 Family Owner Occupied

     0         0         0   

1-4 Family Non-Owner Occupied

     0         0         0   

Commercial Real Estate

     1       $ 1,283,869       $ 1,283,869   

Commercial Second Mortgage

     0         0         0   

Acquisition and Development

     1         816,672         816,672   
  

 

 

    

 

 

    

 

 

 

Total

     2       $ 2,100,541       $ 2,100,541   
  

 

 

    

 

 

    

 

 

 

The troubled debt restructurings described above did not result in an increase in the allowance for loan losses for the three months ended September 30, 2012, and did not result in charge offs during the three months ended September 30, 2012.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three-month period ended September 30, 2011:

 

     September 30, 2011  
            Pre-Modification      Post-Modification  
     Number      Outstanding
Recorded
     Outstanding
Recorded
 
     of Loans      Investment      Investment  

Troubled Debt Restructurings:

        

Commercial Real Estate

     1       $ 295,362       $ 295,362   

Commercial and Industrial

     1         44,149         44,149   
  

 

 

    

 

 

    

 

 

 

Total

     2       $ 339,511       $ 339,511   
  

 

 

    

 

 

    

 

 

 

The troubled debt restructurings described above increased the allowance for loan losses by $36,395 and did not result in charge offs during the period ended September 30, 2011.

 

 

19


Part I — FINANCIAL INFORMATION

 

During the three months ended September 30, 2012, one loan modified as a troubled debt restructure had a payment default within twelve months following the modification.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the period ended September 30, 2011:

 

            Pre-Modification      Post-Modification  
     Number      Outstanding
Recorded
     Outstanding
Recorded
 
     of Loans      Investment      Investment  

Troubled Debt Restructurings:

        

1-4 Family Non-Owner Occupied

     13       $ 1,050,206       $ 1,050,206   

Home Equity Lines of Credit

     1         63,782