x
|
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Ohio | 34 - 1585111 | |
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.) |
Page
Number |
||||
PART I - FINANCIAL INFORMATION
|
||||
Item 1. Financial Statements
|
||||
Consolidated Balance Sheet (Unaudited) as of September 30, 2012 and December 31, 2011
|
3 | |||
Consolidated Statement of Income (Unaudited) for the Three and Nine Months ended September 30, 2012 and 2011
|
4 | |||
Consolidated Statement of Comprehensive Income (Unaudited) for the Three and Nine Months ended September 30, 2012
|
5 | |||
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) for the Nine Months ended September 30, 2012
|
6 | |||
Consolidated Statement of Cash Flows (Unaudited) for the Nine Months ended September 30, 2012 and 2011
|
7 | |||
Notes to Unaudited Consolidated Financial Statements
|
8 | |||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
31 | |||
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
44 | |||
Item 4. Controls and Procedures
|
46 | |||
PART II - OTHER INFORMATION
|
||||
Item 1. Legal Proceedings
|
47 | |||
Item 1A. Risk Factors
|
47 | |||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
47 | |||
Item 3. Default Upon Senior Securities
|
47 | |||
Item 4. Mine Safety Disclosures
|
47 | |||
Item 5. Other Information
|
47 | |||
Item 6. Exhibits and Reports on Form 8 - K
|
47 | |||
SIGNATURES
|
55 | |||
Exhibit 31.1
|
||||
Exhibit 31.2
|
||||
Exhibit 32
|
September 30,
2012 |
December 31,
2011 |
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 32,735 | $ | 15,730 | ||||
Federal funds sold
|
19,871 | 18,660 | ||||||
Cash and cash equivalents
|
52,606 | 34,390 | ||||||
Investment securities available for sale
|
179,140 | 193,977 | ||||||
Loans
|
409,175 | 401,880 | ||||||
Less allowance for loan losses
|
7,173 | 6,819 | ||||||
Net loans
|
402,002 | 395,061 | ||||||
Premises and equipment
|
8,701 | 8,264 | ||||||
Goodwill
|
4,559 | 4,559 | ||||||
Bank-owned life insurance
|
8,465 | 8,257 | ||||||
Accrued interest and other assets
|
8,708 | 10,043 | ||||||
TOTAL ASSETS
|
$ | 664,181 | $ | 654,551 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing demand
|
$ | 70,505 | $ | 63,348 | ||||
Interest-bearing demand
|
65,164 | 55,853 | ||||||
Money market
|
72,831 | 75,621 | ||||||
Savings
|
174,273 | 167,207 | ||||||
Time
|
201,965 | 218,933 | ||||||
Total deposits
|
584,738 | 580,962 | ||||||
Short-term borrowings
|
6,518 | 7,392 | ||||||
Other borrowings
|
15,836 | 16,831 | ||||||
Accrued interest and other liabilities
|
2,003 | 2,113 | ||||||
TOTAL LIABILITIES
|
609,095 | 607,298 | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Common stock, no par value; 10,000,000 shares authorized, 2,172,934 and 1,951,868 shares issued
|
34,082 | 31,240 | ||||||
Retained earnings
|
21,736 | 18,206 | ||||||
Accumulated other comprehensive income
|
6,002 | 4,541 | ||||||
Treasury stock, at cost; 189,530 shares
|
(6,734 | ) | (6,734 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY
|
55,086 | 47,253 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 664,181 | $ | 654,551 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
INTEREST INCOME
|
||||||||||||||||
Interest and fees on loans
|
$ | 5,810 | $ | 5,555 | $ | 16,988 | $ | 16,255 | ||||||||
Interest-bearing deposits in other institutions
|
7 | 4 | 19 | 8 | ||||||||||||
Federal funds sold
|
6 | - | 13 | 13 | ||||||||||||
Investment securities:
|
||||||||||||||||
Taxable interest
|
749 | 1,220 | 2,455 | 3,832 | ||||||||||||
Tax-exempt interest
|
749 | 724 | 2,249 | 2,124 | ||||||||||||
Dividends on stock
|
21 | 25 | 73 | 76 | ||||||||||||
Total interest income
|
7,342 | 7,528 | 21,797 | 22,308 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Deposits
|
1,418 | 1,836 | 4,349 | 5,877 | ||||||||||||
Short term borrowings
|
61 | 59 | 219 | 177 | ||||||||||||
Other borrowings
|
78 | 100 | 244 | 313 | ||||||||||||
Trust preferred securities
|
45 | 139 | 122 | 412 | ||||||||||||
Total interest expense
|
1,602 | 2,134 | 4,934 | 6,779 | ||||||||||||
NET INTEREST INCOME
|
5,740 | 5,394 | 16,863 | 15,529 | ||||||||||||
Provision for loan losses
|
143 | 920 | 1,193 | 2,485 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
5,597 | 4,474 | 15,670 | 13,044 | ||||||||||||
NONINTEREST INCOME
|
||||||||||||||||
Service charges on deposit accounts
|
481 | 455 | 1,383 | 1,299 | ||||||||||||
Investment securities gains (losses), net
|
152 | 6 | 448 | (16 | ) | |||||||||||
Earnings on bank-owned life insurance
|
71 | 70 | 208 | 209 | ||||||||||||
Other income
|
164 | 155 | 640 | 487 | ||||||||||||
Total noninterest income
|
868 | 686 | 2,679 | 1,979 | ||||||||||||
NONINTEREST EXPENSE
|
||||||||||||||||
Salaries and employee benefits
|
1,705 | 1,754 | 5,255 | 5,388 | ||||||||||||
Occupancy expense
|
233 | 242 | 703 | 737 | ||||||||||||
Equipment expense
|
186 | 175 | 557 | 488 | ||||||||||||
Data processing costs
|
184 | 162 | 574 | 515 | ||||||||||||
Ohio state franchise tax
|
160 | 126 | 417 | 351 | ||||||||||||
Federal deposit insurance expense
|
250 | 176 | 751 | 673 | ||||||||||||
Professional fees
|
270 | 181 | 670 | 577 | ||||||||||||
Losses on other real estate owned
|
188 | 195 | 238 | 498 | ||||||||||||
Other expense
|
946 | 895 | 2,780 | 2,676 | ||||||||||||
Total noninterest expense
|
4,122 | 3,906 | 11,945 | 11,903 | ||||||||||||
Income before income taxes
|
2,343 | 1,254 | 6,404 | 3,120 | ||||||||||||
Income taxes
|
494 | 175 | 1,392 | 319 | ||||||||||||
NET INCOME
|
$ | 1,849 | $ | 1,079 | $ | 5,012 | $ | 2,801 | ||||||||
EARNINGS PER SHARE
|
||||||||||||||||
Basic
|
$ | 0.93 | $ | 0.63 | $ | 2.66 | $ | 1.69 | ||||||||
Diluted
|
0.93 | 0.63 | 2.65 | 1.69 | ||||||||||||
DIVIDENDS DECLARED PER SHARE
|
$ | 0.26 | $ | 0.26 | $ | 0.78 | $ | 0.78 |
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income
|
$ | 1,849 | $ | 1,079 | $ | 5,012 | $ | 2,801 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Net unrealized holding gain on available for sale securities
|
838 | 3,238 | 2,662 | 6,746 | ||||||||||||
Tax effect
|
(285 | ) | (1,124 | ) | (905 | ) | (2,294 | ) | ||||||||
Reclassification adjustment for (gains) losses included in net income
|
(152 | ) | (6 | ) | (448 | ) | 16 | |||||||||
Tax effect
|
52 | 2 | 152 | (5 | ) | |||||||||||
Total other comprehensive income
|
453 | 2,110 | 1,461 | 4,463 | ||||||||||||
Comprehensive income
|
$ | 2,302 | $ | 3,189 | $ | 6,473 | $ | 7,264 |
Common
Stock |
Retained
Earnings |
Accumulated
Other |
Treasury
Stock |
Total
Stockholders' |
||||||||||||||||
Balance, December 31, 2011
|
$ | 31,240 | $ | 18,206 | $ | 4,541 | $ | (6,734 | ) | $ | 47,253 | |||||||||
Net income
|
5,012 | 5,012 | ||||||||||||||||||
Comprehensive income
|
1,461 | 1,461 | ||||||||||||||||||
Stock-based compensation expense (1,722 shares)
|
32 | 32 | ||||||||||||||||||
Common stock issuance (196,635 shares), net of issuance costs of $816
|
2,329 | 2,329 | ||||||||||||||||||
Dividend reinvestment and purchase plan (22,708 shares)
|
481 | 481 | ||||||||||||||||||
Cash dividends ($0.78 per share)
|
(1,482 | ) | (1,482 | ) | ||||||||||||||||
Balance, September 30, 2012
|
$ | 34,082 | $ | 21,736 | $ | 6,002 | $ | (6,734 | ) | $ | 55,086 |
Nine Months Ended
September 30, |
||||||||
2012
|
2011
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 5,012 | $ | 2,801 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses
|
1,193 | 2,485 | ||||||
Investment securities (gains) losses, net
|
(448 | ) | 16 | |||||
Depreciation and amortization
|
663 | 639 | ||||||
Amortization of premium and discount on investment securities
|
674 | 247 | ||||||
Amortization of deferred loan fees, net
|
(139 | ) | (120 | ) | ||||
Earnings on bank-owned life insurance
|
(208 | ) | (209 | ) | ||||
Deferred income taxes
|
220 | (173 | ) | |||||
Stock-based compensation expense
|
32 | 59 | ||||||
Losses on other real estate owned
|
238 | 498 | ||||||
Increase in accrued interest receivable
|
(364 | ) | (384 | ) | ||||
Decrease in accrued interest payable
|
(88 | ) | (73 | ) | ||||
Decrease in prepaid federal deposit insurance
|
633 | 642 | ||||||
Other, net
|
(95 | ) | (746 | ) | ||||
Net cash provided by operating activities
|
7,323 | 5,682 | ||||||
INVESTING ACTIVITIES
|
||||||||
Investment securities available for sale:
|
||||||||
Proceeds from repayments and maturities
|
40,227 | 56,940 | ||||||
Proceeds from sale of securities
|
27,426 | 24,305 | ||||||
Purchases
|
(50,828 | ) | (77,429 | ) | ||||
Increase in loans, net
|
(8,826 | ) | (18,217 | ) | ||||
Proceeds from the sale of other real estate owned
|
542 | 777 | ||||||
Purchase of premises and equipment
|
(883 | ) | (321 | ) | ||||
Net cash provided by (used for) investing activities
|
7,658 | (13,945 | ) | |||||
FINANCING ACTIVITIES
|
||||||||
Net increase in deposits
|
3,776 | 21,987 | ||||||
Decrease in short-term borrowings, net
|
(874 | ) | (724 | ) | ||||
Repayment of other borrowings
|
(995 | ) | (1,366 | ) | ||||
Common stock issuance
|
2,329 | 2,210 | ||||||
Proceeds from dividend reinvestment & purchase plan
|
481 | 414 | ||||||
Cash dividends
|
(1,482 | ) | (1,306 | ) | ||||
Net cash provided by financing activities
|
3,235 | 21,215 | ||||||
Increase in cash and cash equivalents
|
18,216 | 12,952 | ||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
34,390 | 30,635 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | 52,606 | $ | 43,587 | ||||
SUPPLEMENTAL INFORMATION
|
||||||||
Cash paid during the year for:
|
||||||||
Interest on deposits and borrowings
|
$ | 5,022 | $ | 6,852 | ||||
Income taxes
|
1,250 | 515 | ||||||
Non-cash investing transactions:
|
||||||||
Transfers from loans to other real estate owned
|
$ | 916 | $ | 1,146 |
2012
|
Weighted-
average |
2011
|
Weighted-
average |
|||||||||||||
Outstanding, January 1
|
88,774 | $ | 26.81 | 89,077 | $ | 27.87 | ||||||||||
Granted
|
- | - | 9,000 | 17.55 | ||||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Forfeited
|
(420 | ) | 36.86 | (7,549 | ) | 29.22 | ||||||||||
Outstanding, September 30
|
88,354 | $ | 26.76 | 90,528 | $ | 26.73 | ||||||||||
Exercisable, September 30
|
88,354 | $ | 26.76 | 81,528 | $ | 27.75 |
For the Three
Months Ended |
For the Nine
Months Ended |
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Weighted average common shares outstanding
|
2,167,711 | 1,894,207 | 2,077,027 | 1,847,945 | ||||||||||||
Average treasury stock shares
|
(189,530 | ) | (189,530 | ) | (189,530 | ) | (189,530 | ) | ||||||||
Weighted average common shares and common stock equivalents used to calculate basic earnings per share
|
1,978,181 | 1,704,677 | 1,887,497 | 1,658,415 | ||||||||||||
Additional common stock equivalents (stock options) used to calculate diluted earnings per share
|
5,682 | - | 4,236 | - | ||||||||||||
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share
|
1,983,863 | 1,704,677 | 1,891,733 | 1,658,415 |
September 30, 2012
|
||||||||||||||||
(Dollar amounts in thousands)
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Assets Measured on a Recurring Basis:
|
||||||||||||||||
U.S. government agency securities
|
$ | - | $ | 17,268 | $ | - | $ | 17,268 | ||||||||
Obligations of states and political subdivisions
|
- | 92,668 | - | 92,668 | ||||||||||||
Mortgage-backed securities in government-sponsored entities
|
62,467 | 62,467 | ||||||||||||||
Private-label mortgage-backed securities
|
- | 5,986 | - | 5,986 | ||||||||||||
Total debt securities
|
- | 178,389 | - | 178,389 | ||||||||||||
Equity securities in financial institutions
|
5 | 746 | - | 751 | ||||||||||||
Total
|
$ | 5 | $ | 179,135 | $ | - | $ | 179,140 |
December 31, 2011
|
||||||||||||||||
Level I
|
Level II
|
Level III
|
Total
|
|||||||||||||
Assets Measured on a Recurring Basis:
|
||||||||||||||||
U.S. government agency securities
|
$ | - | $ | 31,933 | $ | - | $ | 31,933 | ||||||||
Obligations of states and political subdivisions
|
- | 88,400 | - | 88,400 | ||||||||||||
Mortgage-backed securities in government-sponsored entities
|
65,573 | 65,573 | ||||||||||||||
Private-label mortgage-backed securities
|
- | 7,321 | - | 7,321 | ||||||||||||
Total debt securities
|
- | 193,227 | - | 193,227 | ||||||||||||
Equity securities in financial institutions
|
5 | 745 | - | 750 | ||||||||||||
Total
|
$ | 5 | $ | 193,972 | $ | - | $ | 193,977 |
September 30, 2012
|
||||||||||||||||
(Dollar amounts in thousands)
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Assets Measured on a non-recurring Basis:
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 14,258 | $ | 14,258 | ||||||||
Other real estate owned
|
- | - | 2,332 | 2,332 |
December 31, 2011
|
||||||||||||||||
Level I
|
Level II
|
Level III
|
Total
|
|||||||||||||
Assets Measured on a non-recurring Basis:
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 16,535 | $ | 16,535 | ||||||||
Other real estate owned
|
- | - | 2,196 | 2,196 |
Quantitative Information about Level III Fair Value Measurements
|
||||||||||
(unaudited, in thousands)
|
Estimate
|
Valuation Techniquest |
Unobservable Input
|
Range (Weighted Average)
|
||||||
September 30, 2012
|
||||||||||
Impaired loans
|
$ | 14,258 |
Appraisal of collateral (1)
|
Appraisal adjustments (2)
|
0%
|
to | -75.0% | (-31.9%) | ||
Liquidation expenses (2)
|
0%
|
to | -45.8% | (-1.5%) | ||||||
Other real estate owned
|
$ | 2,332 |
Appraisal of collateral (1), (3)
|
September 30, 2012
|
||||||||||||||||||||
Carrying
Value |
Level I
|
Level II
|
Level III
|
Total
Fair Value |
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 52,606 | $ | 52,606 | $ | - | $ | - | $ | 52,606 | ||||||||||
Investment securities
|
||||||||||||||||||||
Available for sale
|
179,140 | 5 | 179,135 | - | 179,140 | |||||||||||||||
Net loans
|
402,002 | - | - | 394,070 | 394,070 | |||||||||||||||
Bank-owned life insurance
|
8,465 | 8,465 | - | 8,465 | ||||||||||||||||
Federal Home Loan Bank stock
|
1,887 | 1,887 | - | 1,887 | ||||||||||||||||
Accrued interest receivable
|
2,598 | 2,598 | - | - | 2,598 | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$ | 584,738 | $ | 382,773 | $ | - | $ | 207,336 | $ | 590,109 | ||||||||||
Short-term borrowings
|
6,518 | 6,518 | - | - | 6,518 | |||||||||||||||
Other borrowings
|
15,836 | - | - | 16,240 | 16,240 | |||||||||||||||
Accrued interest payable
|
557 | 557 | - | - | 557 |
September 30, 2012
|
December 31, 2011
|
|||||||||||||||
Carrying
Value |
Fair
Value |
Carrying
Value |
Fair
Value |
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 52,606 | $ | 52,606 | $ | 34,390 | $ | 34,390 | ||||||||
Investment securities
|
||||||||||||||||
Available for sale
|
179,140 | 179,140 | 193,977 | 193,977 | ||||||||||||
Net loans
|
402,002 | 394,070 | 395,061 | 382,542 | ||||||||||||
Bank-owned life insurance
|
8,465 | 8,465 | 8,257 | 8,257 | ||||||||||||
Federal Home Loan Bank stock
|
1,887 | 1,887 | 1,887 | 1,887 | ||||||||||||
Accrued interest receivable
|
2,598 | 2,598 | 2,234 | 2,234 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$ | 584,738 | $ | 590,109 | $ | 580,962 | $ | 587,178 | ||||||||
Short-term borrowings
|
6,518 | 6,518 | 7,392 | 7,392 | ||||||||||||
Other borrowings
|
15,836 | 16,240 | 16,831 | 17,327 | ||||||||||||
Accrued interest payable
|
557 | 557 | 645 | 645 |
September 30, 2012
|
||||||||||||||||
(Dollar amounts in thousands)
|
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair
Value |
||||||||||||
U.S. government agency securities
|
$ | 16,733 | $ | 537 | $ | (2 | ) | $ | 17,268 | |||||||
Obligations of states and political subdivisions:
|
||||||||||||||||
Taxable
|
8,198 | 864 | - | 9,062 | ||||||||||||
Tax-exempt
|
78,808 | 4,827 | (29 | ) | 83,606 | |||||||||||
Mortgage-backed securities in government-sponsored entities
|
60,139 | 2,328 | - | 62,467 | ||||||||||||
Private-label mortgage-backed securities
|
5,418 | 570 | (2 | ) | 5,986 | |||||||||||
Total debt securities
|
169,296 | 9,126 | (33 | ) | 178,389 | |||||||||||
Equity securities in financial institutions
|
750 | 1 | - | 751 | ||||||||||||
Total
|
$ | 170,046 | $ | 9,127 | $ | (33 | ) | $ | 179,140 |
December 31, 2011
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair
Value |
|||||||||||||
U.S. government agency securities
|
$ | 31,520 | $ | 427 | $ | (14 | ) | $ | 31,933 | |||||||
Obligations of states and political subdivisions:
|
||||||||||||||||
Taxable
|
8,207 | 766 | - | 8,973 | ||||||||||||
Tax-exempt
|
75,807 | 3,681 | (61 | ) | 79,427 | |||||||||||
Mortgage-backed securities in government-sponsored entities
|
63,808 | 1,819 | (54 | ) | 65,573 | |||||||||||
Private-label mortgage-backed securities
|
7,005 | 411 | (95 | ) | 7,321 | |||||||||||
Total debt securities
|
186,347 | 7,104 | (224 | ) | 193,227 | |||||||||||
Equity securities in financial institutions
|
750 | - | - | 750 | ||||||||||||
Total
|
$ | 187,097 | $ | 7,104 | $ | (224 | ) | $ | 193,977 |
(Dollar amounts in thousands)
|
Amortized
Cost |
Fair
Value |
||||||
Due in one year or less
|
$ | 3,003 | $ | 3,038 | ||||
Due after one year through five years
|
4,834 | 5,093 | ||||||
Due after five years through ten years
|
14,682 | 15,545 | ||||||
Due after ten years
|
146,777 | 154,713 | ||||||
Total
|
$ | 169,296 | $ | 178,389 |
For the Three Months Ended
September 30,
|
For the Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Proceeds from sales
|
$ | 5,622 | $ | 14,233 | $ | 27,426 | $ | 24,305 | ||||||||
Gross realized gains
|
154 | 6 | 462 | 21 | ||||||||||||
Gross realized losses
|
(2 | ) | - | (14 | ) | (37 | ) |
September 30, 2012
|
||||||||||||||||||||||||
Less than Twelve Months
|
Twelve Months or Greater
|
Total
|
||||||||||||||||||||||
(Dollar amounts in thousands)
|
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
||||||||||||||||||
U.S. government agency securities
|
$ | 1,998 | $ | (2 | ) | $ | - | $ | - | $ | 1,998 | $ | (2 | ) | ||||||||||
Obligations of states and political subdivisions
|
1,671 | (29 | ) | - | - | 1,671 | (29 | ) | ||||||||||||||||
Private-label mortgage-backed securities
|
- | - | 370 | (2 | ) | 370 | (2 | ) | ||||||||||||||||
Total
|
$ | 3,669 | $ | (31 | ) | $ | 370 | $ | (2 | ) | $ | 4,039 | $ | (33 | ) |
December 31, 2011
|
||||||||||||||||||||||||
Less than Twelve Months
|
Twelve Months or Greater
|
Total
|
||||||||||||||||||||||
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
|||||||||||||||||||
U.S. government agency securities
|
$ | 1,986 | $ | (14 | ) | $ | - | $ | - | $ | 1,986 | $ | (14 | ) | ||||||||||
Obligations of states and political subdivisions
|
2,707 | (40 | ) | 919 | (21 | ) | 3,626 | (61 | ) | |||||||||||||||
Mortgage-backed securities in government sponsored entities
|
8,992 | (54 | ) | - | - | 8,992 | (54 | ) | ||||||||||||||||
Private-label mortgage-backed securities
|
1,628 | (42 | ) | 398 | (53 | ) | 2,026 | (95 | ) | |||||||||||||||
Equity securities in financial institutions
|
- | - | ||||||||||||||||||||||
Total
|
$ | 15,313 | $ | (150 | ) | $ | 1,317 | $ | (74 | ) | $ | 16,630 | $ | (224 | ) |
•
|
The length of time and the extent to which the fair value has been less than the amortized cost basis.
|
||
•
|
Changes in the near term prospects of the underlying collateral of a security such as changes in default rates, loss severity given default and significant changes in prepayment assumptions;
|
||
•
|
The level of cash flows generated from the underlying collateral supporting the principal and interest payments of the debt securities; and
|
||
•
|
Any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information available about the overall financial condition of the issuer, credit ratings, recent legislation and government actions affecting the issuer’s industry and actions taken by the issuer to deal with the present economic climate.
|
September 30,
2012 |
December 31,
2011 |
|||||||
Commercial and industrial
|
$ | 65,323 | $ | 59,185 | ||||
Real estate - construction
|
21,322 | 21,545 | ||||||
Real estate - mortgage:
|
||||||||
Residential
|
205,433 | 208,139 | ||||||
Commercial
|
112,867 | 108,502 | ||||||
Consumer installment
|
4,230 | 4,509 | ||||||
409,175 | 401,880 | |||||||
Less allowance for loan losses
|
(7,173 | ) | (6,819 | ) | ||||
Net loans
|
$ | 402,002 | $ | 395,061 |
Real Estate- Mortgage
|
||||||||||||||||||||||||
September 30, 2012
|
Commercial and industrial
|
Real estate- construction
|
Residential
|
Commercial
|
Consumer installment
|
Total
|
||||||||||||||||||
Individually evaluated for impairment
|
$ | 4,414 | $ | 4,383 | $ | 3,734 | $ | 7,021 | $ | - | $ | 19,553 | ||||||||||||
Collectively evaluated for impairment
|
60,909 | 16,939 | 201,699 | 105,846 | 4,230 | 389,622 | ||||||||||||||||||
Total loans
|
$ | 65,323 | $ | 21,322 | $ | 205,433 | $ | 112,867 | $ | 4,230 | $ | 409,175 |
Real estate- Mortgage
|
||||||||||||||||||||||||
December 31, 2011
|
Commercial and industrial
|
Real estate- construction
|
Residential
|
Commercial
|
Consumer installment
|
Total
|
||||||||||||||||||
Individually evaluated for impairment
|
$ | 4,492 | $ | 867 | $ | 4,882 | $ | 6,491 | $ | - | $ | 16,732 | ||||||||||||
Collectively evaluated for impairment
|
54,693 | 20,678 | 203,257 | 102,011 | 4,509 | 385,148 | ||||||||||||||||||
Total loans
|
$ | 59,185 | $ | 21,545 | $ | 208,139 | $ | 108,502 | $ | 4,509 | $ | 401,880 |
Real Estate- Mortgage
|
||||||||||||||||||||||||
September 30, 2012
|
Commercial and industrial
|
Real estate- construction
|
Residential
|
Commercial
|
Consumer installment
|
Total
|
||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,096 | $ | 442 | $ | 482 | $ | 955 | $ | - | $ | 2,975 | ||||||||||||
Collectively evaluated for impairment
|
608 | 3 | 2,471 | 1,100 | 16 | 4,198 | ||||||||||||||||||
Total ending allowance balance
|
$ | 1,704 | $ | 445 | $ | 2,953 | $ | 2,055 | $ | 16 | $ | 7,173 |
Real Estate- Mortgage
|
||||||||||||||||||||||||
December 31, 2011
|
Commercial and industrial
|
Real estate- construction
|
Residential
|
Commercial
|
Consumer installment
|
Total
|
||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 595 | $ | 237 | $ | 685 | $ | 185 | $ | - | $ | 1,702 | ||||||||||||
Collectively evaluated for impairment
|
701 | 201 | 3,046 | 1,121 | 48 | 5,117 | ||||||||||||||||||
Total ending allowance balance
|
$ | 1,296 | $ | 438 | $ | 3,731 | $ | 1,306 | $ | 48 | $ | 6,819 |
September 30, 2012
|
||||||||||||
Impaired Loans
|
||||||||||||
Recorded
Investment |
Unpaid Principal Balance
|
Related
Allowance |
||||||||||
With no related allowance recorded:
|
||||||||||||
Commercial and industrial
|
$ | 978 | $ | 978 | $ | - | ||||||
Real estate - construction
|
203 | 203 | - | |||||||||
Real estate - mortgage:
|
||||||||||||
Residential
|
1,859 | 1,863 | - | |||||||||
Commercial
|
1,306 | 1,311 | - | |||||||||
Consumer installment
|
30 | 30 | - | |||||||||
Total
|
$ | 4,376 | $ | 4,385 | $ | - | ||||||
With an allowance recorded:
|
||||||||||||
Commercial and industrial
|
$ | 2,896 | $ | 2,899 | $ | 840 | ||||||
Real estate - construction
|
3,986 | 3,986 | 442 | |||||||||
Real estate - mortgage:
|
||||||||||||
Residential
|
2,451 | 2,458 | 556 | |||||||||
Commercial
|
3,524 | 3,533 | 1,137 | |||||||||
Total
|
$ | 12,857 | $ | 12,876 | $ | 2,975 | ||||||
Total:
|
||||||||||||
Commercial and industrial
|
$ | 3,874 | $ | 3,877 | $ | 840 | ||||||
Real estate - construction
|
4,189 | 4,189 | 442 | |||||||||
Real estate - mortgage:
|
||||||||||||
Residential
|
4,310 | 4,321 | 556 | |||||||||
Commercial
|
4,830 | 4,844 | 1,137 | |||||||||
Consumer installment
|
30 | 30 | - | |||||||||
Total
|
$ | 17,233 | $ | 17,261 | $ | 2,975 |
December 31, 2011
|
||||||||||||
Impaired Loans
|
||||||||||||
Recorded
Investment |
Unpaid Principal Balance
|
Related
Allowance |
||||||||||
With no related allowance recorded:
|
||||||||||||
Commercial and industrial
|
$ | 1,172 | $ | 1,172 | $ | - | ||||||
Real estate - construction
|
4,250 | 4,250 | - | |||||||||
Real estate - mortgage:
|
||||||||||||
Residential
|
3,188 | 3,193 | - | |||||||||
Commercial
|
2,528 | 2,536 | - | |||||||||
Consumer installment
|
24 | 24 | - | |||||||||
Total
|
$ | 11,162 | $ | 11,175 | $ | - | ||||||
With an allowance recorded:
|
||||||||||||
Commercial and industrial
|
$ | 658 | $ | 658 | $ | 203 | ||||||
Real estate - construction
|
271 | 271 | 125 | |||||||||
Real estate - mortgage:
|
||||||||||||
Residential
|
1,813 | 1,817 | 547 | |||||||||
Commercial
|
4,332 | 4,344 | 827 | |||||||||
Total
|
$ | 7,074 | $ | 7,090 | $ | 1,702 | ||||||
Total:
|
||||||||||||
Commercial and industrial
|
$ | 1,830 | $ | 1,831 | $ | 203 | ||||||
Real estate - construction
|
4,521 | 4,521 | 125 | |||||||||
Real estate - mortgage:
|
||||||||||||
Residential
|
5,001 | 5,010 | 547 | |||||||||
Commercial
|
6,861 | 6,880 | 827 | |||||||||
Consumer installment
|
24 | 24 | - | |||||||||
Total
|
$ | 18,237 | $ | 18,266 | $ | 1,702 |
For the Three Months Ended September 30, 2012
|
For the Three Months Ended September 30, 2011
|
|||||||||||||||
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$ | 2,535 | $ | 139 | $ | 3,295 | $ | 11 | ||||||||
Real estate - construction
|
2,305 | - | 630 | 15 | ||||||||||||
Real estate - mortgage:
|
||||||||||||||||
Residential
|
3,622 | 85 | 997 | 23 | ||||||||||||
Commercial
|
3,597 | 200 | 4,899 | 86 | ||||||||||||
Consumer installment
|
13 | 1 | 25 | - |
For the Nine Months Ended September 30, 2012
|
For the Nine Months Ended September 30, 2011
|
|||||||||||||||
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||
Total:
|
||||||||||||||||
Commercial and industrial
|
$ | 2,170 | $ | 170 | $ | 3,266 | $ | 93 | ||||||||
Real estate - construction
|
2,400 | 113 | 624 | 15 | ||||||||||||
Real estate - mortgage:
|
||||||||||||||||
Residential
|
3,764 | 169 | 793 | 68 | ||||||||||||
Commercial
|
3,985 | 324 | 4,081 | 188 | ||||||||||||
Consumer installment
|
27 | 2 | 13 | 4 |
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
Total
Loans |
||||||||||||||||
September 30, 2012
|
||||||||||||||||||||
Commercial and industrial
|
$ | 60,439 | $ | 407 | $ | 4,477 | $ | - | $ | 65,323 | ||||||||||
Real estate - construction
|
16,913 | - | 4,409 | - | 21,322 | |||||||||||||||
Real estate - mortgage:
|
||||||||||||||||||||
Residential
|
191,710 | 868 | 12,855 | - | 205,433 | |||||||||||||||
Commercial
|
104,030 | 2,176 | 6,661 | - | 112,867 | |||||||||||||||
Consumer installment
|
4,208 | 2 | 20 | - | 4,230 | |||||||||||||||
Total
|
$ | 377,300 | $ | 3,453 | $ | 28,422 | $ | - | $ | 409,175 |
December 31, 2011
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
Loans
|
|||||||||||||||
Commercial and industrial
|
$ | 53,645 | $ | 1,104 | $ | 4,363 | $ | 73 | $ | 59,185 | ||||||||||
Real estate - construction
|
20,883 | - | 662 | - | 21,545 | |||||||||||||||
Real estate - mortgage:
|
||||||||||||||||||||
Residential
|
192,534 | 1,100 | 14,505 | - | 208,139 | |||||||||||||||
Commercial
|
100,536 | 443 | 7,523 | - | 108,502 | |||||||||||||||
Consumer installment
|
4,495 | 6 | 8 | - | 4,509 | |||||||||||||||
Total
|
$ | 372,093 | $ | 2,653 | $ | 27,061 | $ | 73 | $ | 401,880 |
Still Accruing
|
||||||||||||||||||||||||||||
Current
|
30-59 Days
Past Due |
60-89 Days
Past Due |
90 Days+
Past Due |
Total
Past Due |
Non-
Accrual |
Total
Loans |
||||||||||||||||||||||
September 30, 2012
|
||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 62,529 | $ | 1,221 | $ | 372 | $ | 10 | $ | 1,603 | $ | 1,191 | $ | 65,323 | ||||||||||||||
Real estate - construction
|
20,647 | - | - | - | - | 675 | 21,322 | |||||||||||||||||||||
Real estate - mortgage:
|
||||||||||||||||||||||||||||
Residential
|
195,547 | 885 | 363 | - | 1,248 | 8,638 | 205,433 | |||||||||||||||||||||
Commercial
|
109,932 | 140 | 97 | 79 | 316 | 2,619 | 112,867 | |||||||||||||||||||||
Consumer installment
|
4,148 | 69 | 1 | - | 70 | 12 | 4,230 | |||||||||||||||||||||
Total
|
$ | 392,803 | $ | 2,315 | $ | 833 | $ | 89 | $ | 3,237 | $ | 13,135 | $ | 409,175 |
Still Accruing
|
||||||||||||||||||||||||||||
Current
|
30-59 Days
Past Due |
60-89 Days
Past Due |
90 Days+
Past Due |
Total
Past Due |
Non-
Accrual |
Total
Loans |
||||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 57,291 | $ | 258 | $ | 16 | $ | 44 | $ | 318 | $ | 1,576 | $ | 59,185 | ||||||||||||||
Real estate - construction
|
20,862 | 20 | - | - | 20 | 663 | 21,545 | |||||||||||||||||||||
Real estate - mortgage:
|
||||||||||||||||||||||||||||
Residential
|
193,732 | 2,624 | 863 | 275 | 3,762 | 10,645 | 208,139 | |||||||||||||||||||||
Commercial
|
104,086 | 83 | 412 | - | 495 | 3,921 | 108,502 | |||||||||||||||||||||
Consumer installment
|
4,408 | 60 | 41 | - | 101 | - | 4,509 | |||||||||||||||||||||
Total
|
$ | 380,379 | $ | 3,045 | $ | 1,332 | $ | 319 | $ | 4,696 | $ | 16,805 | $ | 401,880 |
Commercial and industrial
|
Real estate- construction
|
Real estate- residential mortgage
|
Real estate- commercial mortgage
|
Consumer installment
|
Total
|
|||||||||||||||||||
ALL balance at December 31, 2011
|
$ | 1,296 | $ | 438 | $ | 3,731 | $ | 1,306 | $ | 48 | $ | 6,819 | ||||||||||||
Charge-offs
|
(88 | ) | - | (668 | ) | (123 | ) | (62 | ) | (941 | ) | |||||||||||||
Recoveries
|
70 | - | 15 | - | 17 | 102 | ||||||||||||||||||
Provision
|
426 | 7 | (125 | ) | 872 | 13 | 1,193 | |||||||||||||||||
ALL balance at September 30, 2012
|
$ | 1,704 | $ | 445 | $ | 2,953 | $ | 2,055 | $ | 16 | $ | 7,173 |
Commercial and industrial
|
Real estate- construction
|
Real estate- residential mortgage
|
Real estate- commercial mortgage
|
Consumer installment
|
Total
|
|||||||||||||||||||
ALL balance at December 31, 2010
|
$ | 962 | $ | 188 | $ | 3,434 | $ | 1,543 | $ | 94 | $ | 6,221 | ||||||||||||
Charge-offs
|
(503 | ) | (6 | ) | (461 | ) | (266 | ) | (11 | ) | (1,247 | ) | ||||||||||||
Recoveries
|
75 | - | 18 | - | 22 | 115 | ||||||||||||||||||
Provision
|
384 | 75 | 1,372 | 616 | 38 | 2,485 | ||||||||||||||||||
ALL balance at September 30, 2011
|
$ | 918 | $ | 257 | $ | 4,363 | $ | 1,893 | $ | 143 | $ | 7,574 |
Commercial and industrial
|
Real estate- construction
|
Real estate- residential mortgage
|
Real estate- commercial mortgage
|
Consumer installment
|
Total
|
|||||||||||||||||||
ALL balance at June 30, 2012
|
$ | 1,626 | $ | 504 | $ | 4,109 | $ | 1,492 | $ | 21 | $ | 7,752 | ||||||||||||
Charge-offs
|
(60 | ) | - | (570 | ) | (70 | ) | (40 | ) | (740 | ) | |||||||||||||
Recoveries
|
1 | - | 12 | - | 5 | 18 | ||||||||||||||||||
Provision
|
137 | (59 | ) | (598 | ) | 633 | 30 | 143 | ||||||||||||||||
ALL balance at September 30, 2012
|
$ | 1,704 | $ | 445 | $ | 2,953 | $ | 2,055 | $ | 16 | $ | 7,173 |
Commercial and industrial
|
Real estate- construction
|
Real estate- residential mortgage
|
Real estate- commercial mortgage
|
Consumer installment
|
Total
|
|||||||||||||||||||
ALL balance at June 30, 2011
|
$ | 957 | $ | 229 | $ | 3,791 | $ | 1,921 | $ | 129 | $ | 7,027 | ||||||||||||
Charge-offs
|
(232 | ) | (121 | ) | (86 | ) | (439 | ) | ||||||||||||||||
Recoveries
|
49 | 15 | 2 | 66 | ||||||||||||||||||||
Provision
|
144 | 28 | 678 | 58 | 12 | 920 | ||||||||||||||||||
ALL balance at September 30, 2011
|
$ | 918 | $ | 257 | $ | 4,363 | $ | 1,893 | $ | 143 | $ | 7,574 |
Number of Contracts
|
Pre-Modification
Outstanding
|
|||||||||||||||
Troubled Debt Restructurings
|
Rate
Forgiveness
|
Other
|
Total
|
Recorded
Investment
|
||||||||||||
Commercial and industrial
|
- | 2 | 2 | $ | 13 | |||||||||||
Real estate- mortgage:
|
||||||||||||||||
Residential
|
1 | 6 | 7 | 619 | ||||||||||||
Consumer Installment
|
- | 1 | 1 | 6 |
Troubled Debt Restructurings
subsequently defaulted
|
Number of
Contracts
|
Recorded Investment
|
||||||
Commercial and industrial
|
1 | $ | 30 | |||||
Real estate- mortgage:
|
||||||||
Residential
|
1 | 20 |
Number of Contracts
|
||||||||||||||||
Troubled Debt Restructurings
|
Rate Forgiveness |
Other
|
Total
|
Pre-Modification Outstanding Recorded Investment
|
||||||||||||
Commercial and industrial | 1 | 8 | 9 | $ | 243 | |||||||||||
Real estate- mortgage: | ||||||||||||||||
Residential | 2 | 8 | 10 | 946 | ||||||||||||
Consumer Installment | - | 2 | 2 | 11 |
Troubled Debt Restructurings
subsequently defaulted |
Number of Contracts
|
Recorded Investment
|
||||||
Commercial and industrial | 2 | $ | 60 | |||||
Real estate- mortgage: | ||||||||
Residential | 1 | 20 |
(Dollar amounts in thousands)
|
9/30/2012
|
6/30/2012
|
3/31/2012
|
12/31/2011
|
9/30/2011
|
|||||||||||||||
Nonperforming loans
|
$ | 15,404 | $ | 17,177 | $ | 17,677 | $ | 24,546 | $ | 22,725 | ||||||||||
Real estate owned
|
2,332 | 1,986 | 2,125 | 2,196 | 2,173 | |||||||||||||||
Nonperforming assets
|
17,736 | 19,163 | 19,802 | 26,742 | 24,898 | |||||||||||||||
Allowance for loan losses
|
7,173 | 7,752 | 7,267 | 6,819 | 7,574 | |||||||||||||||
Ratios
|
||||||||||||||||||||
Nonperforming loans to total loans
|
3.76 | % | 4.18 | % | 4.37 | % | 6.11 | % | 5.85 | % | ||||||||||
Nonperforming assets to total assets
|
2.67 | % | 2.95 | % | 3.01 | % | 4.09 | % | 3.77 | % | ||||||||||
Allowance for loan losses to total loans
|
1.75 | % | 1.89 | % | 1.80 | % | 1.70 | % | 1.95 | % | ||||||||||
Allowance for loan losses to nonperforming loans
|
46.57 | % | 45.13 | % | 41.11 | % | 27.78 | % | 33.33 | % |
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
|
Average
Yield/Cost |
Average
Balance |
Interest
|
Average
Yield/Cost |
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$ | 411,053 | $ | 5,810 | 5.62 | % | $ | 386,788 | $ | 5,555 | 5.70 | % | ||||||||||||
Investment securities (3)
|
172,637 | 1,498 | 4.34 | % | 197,654 | 1,944 | 4.65 | % | ||||||||||||||||
Interest-bearing deposits with other banks
|
23,126 | 34 | 0.58 | % | 25,284 | 29 | 0.46 | % | ||||||||||||||||
Total interest-earning assets
|
606,816 | 7,342 | 5.07 | % | 609,726 | 7,528 | 5.14 | % | ||||||||||||||||
Noninterest-earning assets
|
50,256 | 36,781 | ||||||||||||||||||||||
Total assets
|
$ | 657,072 | $ | 646,507 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest - bearing demand deposits
|
$ | 64,785 | 67 | 0.41 | % | $ | 60,197 | 90 | 0.59 | % | ||||||||||||||
Money market deposits
|
68,499 | 72 | 0.42 | % | 75,734 | 151 | 0.79 | % | ||||||||||||||||
Savings deposits
|
171,746 | 165 | 0.38 | % | 163,178 | 298 | 0.72 | % | ||||||||||||||||
Certificates of deposit
|
203,482 | 1,115 | 2.18 | % | 219,262 | 1,298 | 2.35 | % | ||||||||||||||||
Borrowings
|
22,997 | 183 | 3.17 | % | 25,379 | 297 | 4.64 | % | ||||||||||||||||
Total interest-bearing liabilities
|
531,509 | 1,602 | 1.20 | % | 543,750 | 2,134 | 1.56 | % | ||||||||||||||||
Noninterest-bearing liabilities
|
||||||||||||||||||||||||
Other liabilities
|
75,147 | 61,066 | ||||||||||||||||||||||
Stockholders' equity
|
50,416 | 41,691 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 657,072 | $ | 646,507 | ||||||||||||||||||||
Net interest income
|
$ | 5,740 | $ | 5,394 | ||||||||||||||||||||
Interest rate spread (1)
|
3.87 | % | 3.58 | % | ||||||||||||||||||||
Net yield on interest-earning assets (2)
|
4.02 | % | 3.75 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities
|
114.17 | % | 112.13 | % |
(1)
|
Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities
|
(2)
|
Net interest margin represents net interest income as a percentage of average interest-earning assets.
|
(3)
|
Tax equivalent adjustments to interest income for tax-exempt securities were $385 and $373 for 2012 and 2011, respectively.
|
2012 versus 2011
|
||||||||||||
Increase (decrease) due to
|
||||||||||||
(Dollars in thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Interest-earning assets:
|
||||||||||||
Loans receivable
|
$ | 348 | $ | (93 | ) | $ | 255 | |||||
Investment securities
|
(292 | ) | (154 | ) | (446 | ) | ||||||
Interest-bearing deposits with other banks
|
(2 | ) | 7 | 5 | ||||||||
Total interest-earning assets
|
54 | (240 | ) | (186 | ) | |||||||
Interest-bearing liabilities:
|
||||||||||||
Interest - bearing demand deposits
|
7 | (30 | ) | (23 | ) | |||||||
Money market deposits
|
(14 | ) | (65 | ) | (79 | ) | ||||||
Savings deposits
|
16 | (149 | ) | (133 | ) | |||||||
Certificates of deposit
|
(93 | ) | (90 | ) | (183 | ) | ||||||
Borrowings
|
(28 | ) | (86 | ) | (114 | ) | ||||||
Total interest-bearing liabilities
|
(112 | ) | (420 | ) | (532 | ) | ||||||
Net interest income
|
$ | 166 | $ | 180 | $ | 346 |
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$ | 406,919 | $ | 16,988 | 5.58 | % | $ | 380,668 | $ | 16,255 | 5.71 | % | ||||||||||||
Investment securities (3)
|
181,062 | 4,704 | 4.33 | % | 194,250 | 5,956 | 4.85 | % | ||||||||||||||||
Interest-bearing deposits with other banks
|
22,221 | 105 | 0.63 | % | 27,122 | 97 | 0.48 | % | ||||||||||||||||
Total interest-earning assets
|
610,202 | 21,797 | 5.03 | % | 602,040 | 22,308 | 5.20 | % | ||||||||||||||||
Noninterest-earning assets
|
45,323 | 33,524 | ||||||||||||||||||||||
Total assets
|
$ | 655,525 | $ | 635,564 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest - bearing demand deposits
|
$ | 61,718 | 190 | 0.41 | % | $ | 55,314 | 265 | 0.64 | % | ||||||||||||||
Money market deposits
|
70,108 | 216 | 0.41 | % | 73,963 | 515 | 0.93 | % | ||||||||||||||||
Savings deposits
|
170,423 | 495 | 0.39 | % | 157,538 | 995 | 0.84 | % | ||||||||||||||||
Certificates of deposit
|
209,504 | 3,448 | 2.20 | % | 227,613 | 4,103 | 2.41 | % | ||||||||||||||||
Borrowings
|
23,551 | 585 | 3.32 | % | 25,953 | 901 | 4.64 | % | ||||||||||||||||
Total interest-bearing liabilities
|
535,304 | 4,934 | 1.23 | % | 540,381 | 6,779 | 1.68 | % | ||||||||||||||||
Noninterest-bearing liabilities
|
||||||||||||||||||||||||
Other liabilities
|
70,846 | 55,672 | ||||||||||||||||||||||
Stockholders' equity
|
49,375 | 39,511 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 655,525 | $ | 635,564 | ||||||||||||||||||||
Net interest income
|
$ | 16,863 | $ | 15,529 | ||||||||||||||||||||
Interest rate spread (1)
|
3.79 | % | 3.52 | % | ||||||||||||||||||||
Net interest margin (2)
|
3.95 | % | 3.69 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities
|
113.99 | % | 111.41 | % |
(1)
|
Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost ofinterest-bearing liabilities
|
(2)
|
Net interest margin represents net interest income as a percentage of average interest-earning assets.
|
(3)
|
Tax equivalent adjustments to interest income for tax-exempt securities was $1,159 and $1,094 for 2012 and 2011, respectively.
|
2012 versus 2011
|
||||||||||||
Increase (decrease) due to
|
||||||||||||
(Dollars in thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Interest-earning assets:
|
||||||||||||
Loans receivable
|
$ | 1,122 | $ | (389 | ) | $ | 733 | |||||
Investment securities
|
(479 | ) | (773 | ) | (1,252 | ) | ||||||
Interest-bearing deposits with other banks
|
(18 | ) | 26 | 8 | ||||||||
Total interest-earning assets
|
625 | (1,136 | ) | (511 | ) | |||||||
Interest-bearing liabilities:
|
||||||||||||
Interest - bearing demand deposits
|
31 | (106 | ) | (75 | ) | |||||||
Money market deposits
|
(27 | ) | (272 | ) | (299 | ) | ||||||
Savings deposits
|
81 | (581 | ) | (500 | ) | |||||||
Certificates of deposit
|
(327 | ) | (328 | ) | (655 | ) | ||||||
Borrowings
|
(83 | ) | (233 | ) | (316 | ) | ||||||
Total interest-bearing liabilities
|
(325 | ) | (1,520 | ) | (1,845 | ) | ||||||
Net interest income
|
$ | 950 | $ | 384 | $ | 1,334 |
Capital Ratio
|
Adequately Capitalized
|
Well
Capitalized
|
September 30,
2012
|
December 31,
2011
|
||||||||||||||
Tier I Leverage Capital
|
4.00 | % | 5.00 | % | (1 | ) | 10.17 | % | 9.92 | % | ||||||||
Risk-Based Capital:
|
||||||||||||||||||
Tier I
|
4.00 | 6.00 | 13.10 | 12.57 | ||||||||||||||
Total
|
8.00 | 10.00 | 14.35 | 13.82 |
Middlefield Banc Corp.
September 30, |
The Middlefield Banking Co.
September 30, |
Emerald Bank
September 30, |
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Total Capital
(to Risk-weighted Assets)
|
||||||||||||||||||||||||
Actual
|
$ | 56,832 | 13.40 | % | $ | 47,031 | 12.85 | % | $ | 8,351 | 14.35 | % | ||||||||||||
For Capital Adequacy Purposes
|
33,939 | 8.00 | 29,280 | 8.00 | 4,656 | 8.00 | ||||||||||||||||||
To Be Well Capitalized
|
42,424 | 10.00 | 36,601 | 10.00 | 5,820 | 10.00 | ||||||||||||||||||
Tier I Capital
(to Risk-weighted Assets)
|
||||||||||||||||||||||||
Actual
|
$ | 51,506 | 12.14 | % | $ | 42,456 | 11.60 | % | $ | 7,623 | 13.10 | % | ||||||||||||
For Capital Adequacy Purposes
|
16,969 | 4.00 | 14,640 | 4.00 | 2,328 | 4.00 | ||||||||||||||||||
To Be Well Capitalized
|
25,454 | 6.00 | 21,960 | 5.00 | 3,492 | 6.00 | ||||||||||||||||||
Tier I Capital
(to Average Assets)
|
||||||||||||||||||||||||
Actual
|
$ | 51,506 | 7.92 | % | $ | 42,456 | 7.42 | % | $ | 7,623 | 10.17 | % | ||||||||||||
For Capital Adequacy Purposes
|
25,998 | 4.00 | 22,882 | 4.00 | 2,999 | 4.00 | ||||||||||||||||||
To Be Well Capitalized
|
32,497 | 5.00 | 28,602 | 5.00 | 3,749 | 5.00 |
Increase
200 Basis Points |
Decrease
200 Basis Points |
|||||||
Net interest income - increase (decrease)
|
1.90 | % | 0.22 | % | ||||
Portfolio equity - increase (decrease)
|
(17.73 | ) % | (7.80 | ) % |
exhibit
number
|
description
|
location
|
||
3.1
|
Second Amended and Restated Articles of Incorporation of Middlefield Banc Corp., as amended
|
Incorporated by reference to Exhibit 3.1 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2005, filed on March 29, 2006
|
||
3.2
|
Regulations of Middlefield Banc Corp.
|
Incorporated by reference to Exhibit 3.2 of Middlefield Banc Corp.’s registration statement on Form 10 filed on April 17, 2001
|
||
4.0
|
Specimen stock certificate
|
Incorporated by reference to Exhibit 4 of Middlefield Banc Corp.’s registration statement on Form 10 filed on April 17, 2001
|
||
4.1
|
Amended and Restated Trust Agreement, dated as of December 21, 2006, between Middlefield Banc Corp., as Depositor, Wilmington Trust Company, as Property trustee, Wilmington Trust Company, as Delaware Trustee, and Administrative Trustees
|
Incorporated by reference to Exhibit 4.1 of Middlefield Banc Corp.’s Form 8-K Current Report filed on December 27, 2006
|
||
4.2
|
Junior Subordinated Indenture, dated as of December 21, 2006, between Middlefield Banc Corp. and Wilmington Trust Company
|
Incorporated by reference to Exhibit 4.2 of Middlefield Banc Corp.’s Form 8-K Current Report filed on December 27, 2006
|
||
4.3
|
Guarantee Agreement, dated as of December 21, 2006, between Middlefield Banc Corp. and Wilmington Trust Company
|
Incorporated by reference to Exhibit 4.3 of Middlefield Banc Corp.’s Form 8-K Current Report filed on December 27, 2006
|
exhibit
number
|
description
|
location
|
10.1.0*
|
1999 Stock Option Plan of Middlefield Banc Corp.
|
Incorporated by reference to Exhibit 10.1 of Middlefield Banc Corp.’s registration statement on Form 10 filed on April 17, 2001
|
||
10.1.1*
|
2007 Omnibus Equity Plan
|
Incorporated by reference to Middlefield Banc Corp.’s definitive proxy statement for the 2008 Annual Meeting of Shareholders, Appendix A, filed on April 7, 2008
|
||
10.2*
|
Severance Agreement between Middlefield Banc Corp. and Thomas G. Caldwell, dated January 7, 2008
|
Incorporated by reference to Exhibit 10.2 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.3*
|
Severance Agreement between Middlefield Banc Corp. and James R. Heslop, II, dated January 7, 2008
|
Incorporated by reference to Exhibit 10.3 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.4.0*
|
Severance Agreement between Middlefield Banc Corp. and Jay P. Giles, dated January 7, 2008
|
Incorporated by reference to Exhibit 10.4 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.4.1*
|
Severance Agreement between Middlefield Banc Corp. and Teresa M. Hetrick, dated January 7, 2008
|
Incorporated by reference to Exhibit 10.4.1 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.4.2*
|
[reserved]
|
exhibit
number
|
description
|
location
|
10.4.3*
|
Severance Agreement between Middlefield Banc Corp. and Donald L. Stacy, dated January 7, 2008
|
Incorporated by reference to Exhibit 10.4.3 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.4.4*
|
Severance Agreement between Middlefield Banc Corp. and Alfred F. Thompson Jr., dated January 7, 2008
|
Incorporated by reference to Exhibit 10.4.4 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.5
|
Federal Home Loan Bank of Cincinnati Agreement for Advances and Security Agreement dated September 14, 2000
|
Incorporated by reference to Exhibit 10.4 of Middlefield Banc Corp.’s registration statement on Form 10 filed on April 17, 2001
|
||
10.6*
|
Amended Director Retirement Agreement with Richard T. Coyne
|
Incorporated by reference to Exhibit 10.6 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.7*
|
Amended Director Retirement Agreement with Frances H. Frank
|
Incorporated by reference to Exhibit 10.7 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.8*
|
Amended Director Retirement Agreement with Thomas C. Halstead
|
Incorporated by reference to Exhibit 10.8 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.9*
|
Director Retirement Agreement with George F. Hasman
|
Incorporated by reference to Exhibit 10.9 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2001, filed on March 28, 2002
|
exhibit
number
|
description
|
location
|
10.10*
|
Director Retirement Agreement with Donald D. Hunter
|
Incorporated by reference to Exhibit 10.10 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2001, filed on March 28, 2002
|
||
10.11*
|
Director Retirement Agreement with Martin S. Paul
|
Incorporated by reference to Exhibit 10.11 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2001, filed on March 28, 2002
|
||
10.12*
|
Amended Director Retirement Agreement with Donald E. Villers
|
Incorporated by reference to Exhibit 10.12 of Middlefield Banc Corp.’s Form 8-K Current Report filed on January 9, 2008
|
||
10.13*
|
Executive Survivor Income Agreement (aka DBO agreement [death benefit only]) with Donald L. Stacy
|
Incorporated by reference to Exhibit 10.14 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 30, 2004
|
||
10.14*
|
DBO Agreement with Jay P. Giles
|
Incorporated by reference to Exhibit 10.15 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 30, 2004
|
||
10.15*
|
DBO Agreement with Alfred F. Thompson Jr.
|
Incorporated by reference to Exhibit 10.16 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 30, 2004
|
exhibit
number
|
description
|
location
|
10.16*
|
Reserved
|
|||
10.17*
|
DBO Agreement with Theresa M. Hetrick
|
Incorporated by reference to Exhibit 10.18 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 30, 2004
|
||
10.18*
|
Executive Deferred Compensation Agreement with Jay P. Giles
|
Incorporated by reference to Exhibit 10.18 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year ended December 31, 2011, filed on March 20, 2012
|
||
10.19*
|
DBO Agreement with James R. Heslop, II
|
Incorporated by reference to Exhibit 10.19 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 30, 2004
|
||
10.20*
|
DBO Agreement with Thomas G. Caldwell
|
Incorporated by reference to Exhibit 10.20 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 30, 2004
|
||
10.21*
|
Form of Indemnification Agreement with directors and executive officers
|
Incorporated by reference to Exhibit 99.1 of Middlefield Banc Corp.’s registration statement on Form 10, Amendment No. 1, filed on September 14, 2001
|
||
10.22*
|
Annual Incentive Plan
|
Incorporated by reference to Exhibit 10.22 of Middlefield Banc Corp.’s Form 8-K Current Report filed on September 12, 2012
|
exhibit
number
|
description
|
location
|
10.22.1
|
Annual Incentive Plan 2012 Award Summary for named executive officers
|
Incorporated by reference to Exhibit 10.22.1 of Middlefield Banc Corp.’s Form 8-K Current Report filed on September 12, 2012
|
||
10.23*
|
Amended Executive Deferred Compensation Agreement with Thomas G. Caldwell
|
Incorporated by reference to Exhibit 10.23 of Middlefield Banc Corp.’s Form 8-K Current Report filed on May 9, 2008
|
||
10.24*
|
Amended Executive Deferred Compensation Agreement with James R. Heslop, II
|
Incorporated by reference to Exhibit 10.24 of Middlefield Banc Corp.’s Form 8-K Current Report filed on May 9, 2008
|
||
10.25*
|
Amended Executive Deferred Compensation Agreement with Donald L. Stacy
|
Incorporated by reference to Exhibit 10.25 of Middlefield Banc Corp.’s Form 8-K Current Report filed on May 9, 2008
|
||
10.26
|
Stock Purchase Agreement dated August 15, 2011 between Bank Opportunity Fund LLC and Middlefield Banc Corp.
|
Incorporated by reference to Exhibit 10.26 of Middlefield Banc Corp.’s Form 8-K Current Report filed on August 18, 2011
|
||
10.26.1
|
Amendment 1 of the Stock Purchase Agreement with Bank Opportunity Fund LLC (amendment dated September 29, 2011)
|
Incorporated by reference to Exhibit 10.26.1 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year ended December 31, 2011, filed on March 20, 2012
|
||
10.26.2
|
Amendment 2 of the Stock Purchase Agreement with Bank Opportunity Fund LLC (amendment dated October 20, 2011)
|
Incorporated by reference to Exhibit 10.26.2 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year ended December 31, 2011, filed on March 20, 2012
|
||
10.26.3
|
Amendment 3 of the Stock Purchase Agreement with Bank Opportunity Fund LLC (amendment dated November 28, 2011)
|
Incorporated by reference to Exhibit 10.26.3 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year ended December 31, 2011, filed on March 20, 2012
|
exhibit
number
|
description
|
location
|
10.26.4
|
Amendment 4 of the Stock Purchase Agreement with Bank Opportunity Fund LLC (amendment dated December 21, 2011)
|
Incorporated by reference to Exhibit 10.26.4 of Middlefield Banc Corp.’s Annual Report on Form 10-K for the Year ended December 31, 2011, filed on March 20, 2012
|
||
10.26.5
|
March 21, 2012 letter agreement between Bank Opportunity Fund LLC and Middlefield Banc Corp
|
Incorporated by reference to Exhibit 10.26.5 of Middlefield Banc Corp.’s Form 8-K Current Report filed on March 27, 2012
|
||
10.26.6
|
Amendment 5 of the Stock Purchase Agreement with Bank Opportunity Fund LLC (amendment dated April 17, 2012)
|
Incorporated by reference to Exhibit 10.26.6 of Middlefield Banc Corp.’s Form 8-K Current Report filed on April 23, 2012
|
||
10.26.7
|
Amendment 6 of the Stock Purchase Agreement with Bank Opportunity Fund LLC (amendment dated August 23, 2012)
|
Incorporated by reference to Exhibit 10.26.7 of Middlefield Banc Corp.’s Form 8-K Current Report filed on August 24, 2012
|
||
10.27
|
[reserved]
|
|||
10.28
|
Amended and Restated Purchaser’s Rights and Voting Agreement, dated April 17, 2012, among Bank Opportunity Fund LLC, Middlefield Banc Corp., and directors and officers of Middlefield Banc Corp.
|
Incorporated by reference to Exhibit 10.28 of Middlefield Banc Corp.’s Form 8-K Current Report filed on April 23, 2012
|
||
10.28.1
|
Amendment of the Amended and Restated Purchaser’s Rights and Voting Agreement (amendment dated August 23, 2012)
|
Incorporated by reference to Exhibit 10.28.1 of Middlefield Banc Corp.’s Form 8-K Current Report filed on August 24, 2012
|
||
31.1
|
Rule 13a-14(a) certification of Chief Executive Officer
|
filed herewith
|
||
31.2
|
Rule 13a-14(a) certification of Chief Financial Officer
|
filed herewith
|
||
32
|
Rule 13a-14(b) certification
|
filed herewith
|
||
101.INS**
|
XBRL Instance
|
furnished herewith
|
||
101.SCH**
|
XBRL Taxonomy Extension Schema
|
furnished herewith
|
||
101.CAL**
|
XBRL Taxonomy Extension Calculation
|
furnished herewith
|
||
101.DEF**
|
XBRL Taxonomy Extension Definition
|
furnished herewith
|
||
101.LAB**
|
XBRL Taxonomy Extension Labels
|
furnished herewith
|
||
101.PRE**
|
XBRL Taxonomy Extension Presentation
|
furnished herewith
|
||
* management contract or compensatory plan or arrangement | ||||
** XBRLinformation is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
MIDDLEFIELD BANC CORP. |
Date: November 8, 2012
|
By:
|
/s/ Thomas G. Caldwell | |
Thomas G. Caldwell
|
|||
President and Chief Executive Officer
|
Date: November 8, 2012
|
By:
|
/s/ Donald L. Stacy | |
Donald L. Stacy
|
|||
Principal Financial and Accounting Officer
|
By:
|
/s/Thomas G. Caldwell | ||
Thomas G. Caldwell | |||
President and Chief Executive Officer |
Date: November 8, 2012
|
By: /s/Donald L. Stacy | |||
Donald L. Stacy | ||||
Principal Financial and Accounting Officer |
By: /s/Thomas G. Caldwell
|
By: /s/Donald L. Stacy
|
|||
Thomas G. Caldwell
|
Donald L. Stacy
|
|||
President and Chief Executive Officer
|
Principal Financial and Accounting Officer
|
Note 6 - Loans And Related Allowance For Loan Losses (Detail) - Additional Information on Impaired Loans (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Commercial and Industrial [Member]
|
||||
Total: | ||||
Average Recorded Investment | $ 2,535 | $ 3,295 | $ 2,170 | $ 3,266 |
Interest Income Recognized | 139 | 11 | 170 | 93 |
Real Estate Construction [Member]
|
||||
Total: | ||||
Average Recorded Investment | 2,305 | 630 | 2,400 | 624 |
Interest Income Recognized | 15 | 113 | 15 | |
Residential Real Estate Mortgage [Member]
|
||||
Total: | ||||
Average Recorded Investment | 3,622 | 997 | 3,764 | 793 |
Interest Income Recognized | 85 | 23 | 169 | 68 |
Commercial Real Estate Mortgage [Member]
|
||||
Total: | ||||
Average Recorded Investment | 3,597 | 4,899 | 3,985 | 4,081 |
Interest Income Recognized | 200 | 86 | 324 | 188 |
Consumer Installment [Member]
|
||||
Total: | ||||
Average Recorded Investment | 13 | 25 | 27 | 13 |
Interest Income Recognized | $ 1 | $ 2 | $ 4 |
Note 5 - Investment Securities Available For Sale (Detail) - Sales of Securities Available-for-sale (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Proceeds from sales | $ 5,622 | $ 14,233 | $ 27,426 | $ 24,305 |
Gross realized gains | 154 | 6 | 462 | 21 |
Gross realized losses | $ (2) | $ (14) | $ (37) |
Note 3 - Earnings Per Share (Detail) - Shares Used in Calculation of Earnings Per Share
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Weighted average common shares outstanding | 2,167,711 | 1,894,207 | 2,077,027 | 1,847,945 |
Average treasury stock shares | (189,530) | (189,530) | (189,530) | (189,530) |
Weighted average common shares and common stock equivalents used to calculate basic earnings per share | 1,978,181 | 1,704,677 | 1,887,497 | 1,658,415 |
Additional common stock equivalents (stock options) used to calculate diluted earnings per share | 5,682 | 4,236 | ||
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share | 1,983,863 | 1,704,677 | 1,891,733 | 1,658,415 |
Note 6 - Loans And Related Allowance For Loan Losses (Detail) - Allowance for Loan Losses (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
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Sep. 30, 2012
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Dec. 31, 2011
|
Sep. 30, 2012
Commercial and Industrial [Member]
|
Sep. 30, 2011
Commercial and Industrial [Member]
|
Sep. 30, 2012
Commercial and Industrial [Member]
|
Sep. 30, 2011
Commercial and Industrial [Member]
|
Sep. 30, 2012
Real Estate Construction [Member]
|
Sep. 30, 2011
Real Estate Construction [Member]
|
Sep. 30, 2012
Real Estate Construction [Member]
|
Sep. 30, 2011
Real Estate Construction [Member]
|
Sep. 30, 2012
Residential Real Estate Mortgage [Member]
|
Sep. 30, 2011
Residential Real Estate Mortgage [Member]
|
Sep. 30, 2012
Residential Real Estate Mortgage [Member]
|
Sep. 30, 2011
Residential Real Estate Mortgage [Member]
|
Sep. 30, 2012
Commercial Real Estate Mortgage [Member]
|
Sep. 30, 2011
Commercial Real Estate Mortgage [Member]
|
Sep. 30, 2012
Commercial Real Estate Mortgage [Member]
|
Sep. 30, 2011
Commercial Real Estate Mortgage [Member]
|
Sep. 30, 2012
Consumer Installment [Member]
|
Sep. 30, 2011
Consumer Installment [Member]
|
Sep. 30, 2012
Consumer Installment [Member]
|
Sep. 30, 2011
Consumer Installment [Member]
|
Sep. 30, 2012
Total [Member]
|
Sep. 30, 2011
Total [Member]
|
Sep. 30, 2012
Total [Member]
|
Sep. 30, 2011
Total [Member]
|
|
ALL balance at end of period | $ 7,173 | $ 6,819 | $ 1,626 | $ 957 | $ 1,296 | $ 962 | $ 504 | $ 229 | $ 438 | $ 188 | $ 4,109 | $ 3,791 | $ 3,731 | $ 3,434 | $ 1,492 | $ 1,921 | $ 1,306 | $ 1,543 | $ 21 | $ 129 | $ 48 | $ 94 | $ 7,752 | $ 7,027 | $ 6,819 | $ 6,221 |
ALL balance at end of period | 7,173 | 6,819 | 1,704 | 918 | 1,704 | 918 | 445 | 257 | 445 | 257 | 2,953 | 4,363 | 2,953 | 4,363 | 2,055 | 1,893 | 2,055 | 1,893 | 16 | 143 | 16 | 143 | 7,173 | 7,574 | 7,173 | 7,574 |
Charge-offs | (60) | (232) | (88) | (503) | (6) | (570) | (121) | (668) | (461) | (70) | (86) | (123) | (266) | (40) | (62) | (11) | (740) | (439) | (941) | (1,247) | ||||||
Recoveries | 1 | 49 | 70 | 75 | 12 | 15 | 15 | 18 | 5 | 2 | 17 | 22 | 18 | 66 | 102 | 115 | ||||||||||
Provision | $ 137 | $ 144 | $ 426 | $ 384 | $ (59) | $ 28 | $ 7 | $ 75 | $ (598) | $ 678 | $ (125) | $ 1,372 | $ 633 | $ 58 | $ 872 | $ 616 | $ 30 | $ 12 | $ 13 | $ 38 | $ 143 | $ 920 | $ 1,193 | $ 2,485 |
Note 1 - Basis of Presentation
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9 Months Ended |
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Sep. 30, 2012
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Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 - BASIS OF PRESENTATION
The
consolidated financial statements of Middlefield Banc Corp.
("Company") include its two bank subsidiaries, The
Middlefield Banking Company (“MB”) and Emerald
Bank (“EB”), and a non-bank asset resolution
subsidiary EMORECO, Inc. All significant inter-company
items have been eliminated.
The
accompanying financial statements have been prepared in
accordance with U.S. generally accepted accounting
principles and the instructions for Form 10-Q and Article
10 of Regulation S-X. In management’s
opinion, the financial statements include all adjustments,
consisting of normal recurring adjustments, that the
Company considers necessary to fairly state the
Company’s financial position and the results of
operations and cash flows. The consolidated
balance sheet at December 31, 2011, has been derived from
the audited financial statements at that date but does not
include all of the necessary informational disclosures and
footnotes as required by U. S. generally accepted
accounting principles. The accompanying
consolidated financial statements should be read in
conjunction with the consolidated financial statements and
notes thereto included with Middlefield’s Form 10-K
for the year ended December 31, 2011 (File No. 000-32561).
The results of Middlefield’s operations for any
interim period are not necessarily indicative of the
results of Middlefield’s operations for any other
interim period or for a full fiscal year.
Recent
Accounting Pronouncements
In
September 2011, the FASB issued ASU 2011-08, Intangibles
– Goodwill and Other Topics (Topic 350), Testing
Goodwill for Impairment. The objective of
this Update is to simplify how entities, both public and
nonpublic, test goodwill for impairment. The
amendments in the Update permit an entity to first assess
qualitative factors to determine whether it is more likely
than not that the fair value of a reporting unit is less
than its carrying amount as a basis for determining whether
it is necessary to perform the two-step goodwill impairment
test described in Topic 350. The
more-likely-than-not threshold is defined as having a
likelihood of more than 50 percent. Under the
amendments in this Update, an entity is not required to
calculate the fair value of a reporting unit unless the
entity determines that it is more likely than not that its
fair value is less than its carrying amount. The
amendments in this Update apply to all entities, both
public and nonpublic, that have goodwill reported in their
financial statements and are effective for interim and
annual goodwill impairment tests performed for fiscal years
beginning after December 15, 2011. Early
adoption is permitted, including for annual and interim
goodwill impairment tests performed as of a date before
September 15, 2011, if an entity’s financial
statements for the most recent annual or interim period
have not yet been issued or, for nonpublic entities, have
not yet been made available for issuance. This
ASU did not have a significant impact on the
Company’s financial statements.
In
December 2011, the FASB issued ASU 2011-11, Balance Sheet
(Topic 210): Disclosures about Offsetting Assets
and Liabilities. The amendments in this
Update affect all entities that have financial instruments
and derivative instruments that are either (1) offset in
accordance with either Section
210-20-45 or Section
815-10-45 or (2) subject to an enforceable master netting
arrangement or similar agreement. The
requirements amend the disclosure requirements on
offsetting in Section
210-20-50. This information will enable users of
an entity's financial statements to evaluate the effect or
potential effect of netting arrangements on an entity's
financial position, including the effect or potential
effect of rights of setoff associated with certain
financial instruments and derivative instruments in the
scope of this Update. An entity is required to
apply the amendments for annual reporting periods beginning
on or after January 1, 2013, and interim periods within
those annual periods. An entity should provide
the disclosures required by those amendments
retrospectively for all comparative periods
presented. This ASU is not expected to have a
significant impact on the Company’s financial
statements.
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