Jacksonville Bancorp, Inc. 2014 Annual Report |
Thanks to a continued low interest rate environment, 2014 can be declared another good year for Jacksonville Bancorp, Inc. We once again achieved earnings results significantly better than the average of our peer group. Your company posted net income of nearly $3.0 million and achieved a return on assets just under 1.00% at 0.96%.
One of the financial highlights of 2014 was a $4 million growth in our loan portfolio, particularly considering the current environment of low loan demand in our markets. We are proud to have an experienced group of lenders, some of whom are now starting to serve the third generation of the same family. Research shows the millennial generation prefers to conduct business with individuals who serve as financial advisors not just providers of service. The level of expertise of our lenders bodes well for serving the important millennial market in the future.
Maximizing non-interest income and minimizing non-interest expense continue to be critical factors in attaining solid bottom line results. We fared well in both areas in 2014. Our trust and brokerage operations continued to grow and provide considerable non-interest income. Both departments are key components of our ability to provide customers the financial products they will need throughout their lifetimes.
We made strides in controlling non-interest expense in 2014. An in-depth internal marketing campaign was successful in encouraging customers to enroll in eStatements. eStatements give our customers access to their account information 24 hours a day every day of the year. They also benefit the environment and reduce expense for the bank.
As the use of debit cards continues to expand, effectively managing the bank’s electronic funds transfer program can have an impact on financial results. In 2014, we renegotiated our contracts to prepare for the implementation of EMV/chip cards in 2015 and began realizing an approximately $5,000 reduction in monthly expense. As a result of the renegotiated contracts, over the five year term the combined effect of reduced expense and increased income is estimated to be well over $500,000.
Technology is a significant expense for all financial companies and wisely spending technology dollars is always a challenge. In 2014, we completed a project to upgrade the bank’s network and data lines to improve line speed and provide backup connections with separate vendors. It was money well spent and has benefitted our customers by enabling our staff to serve them more expeditiously.
We are pleased to report several additional stock repurchases were made in 2014 under our previously announced 2013 buy-back program. We continue to believe the program is an effective use of capital. With it and all of our ongoing efforts to manage your company in the best way possible, we constantly strive to enhance shareholder value. Thank you for your continued support.
Sincerely,
Andrew F. Applebee Richard A. Foss
Chairman of the Board President and CEO
Table of Contents | ||
Page | ||
Business of the Company | 1 | |
Selected Consolidated Financial Information | 2 | |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 4 | |
Report of Independent Registered Public Accounting Firm | 20 | |
Consolidated Financial Statements | 21 | |
Notes to Consolidated Financial Statements | 29 | |
Common Stock Information | 83 | |
Directors and Executive Officers | 84 | |
Corporate Information | 85 | |
Annual Meeting | 85 |
1 |
At December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Selected Financial Condition Data: | ||||||||||||||||||||
Total assets | $ | 311,925 | $ | 318,419 | $ | 321,446 | $ | 307,289 | $ | 301,481 | ||||||||||
Cash and cash equivalents | 9,612 | 6,099 | 7,294 | 11,388 | 8,943 | |||||||||||||||
Investment securities | 55,265 | 60,639 | 63,431 | 62,258 | 52,872 | |||||||||||||||
Mortgage-backed securities | 41,420 | 48,346 | 51,956 | 40,364 | 41,995 | |||||||||||||||
Loans, net(1) | 184,954 | 180,902 | 174,465 | 171,312 | 176,722 | |||||||||||||||
Federal Home Loan Bank of Chicago stock, at cost | 1,114 | 1,114 | 1,114 | 1,114 | 1,114 | |||||||||||||||
Foreclosed assets, net | 177 | 282 | 137 | 435 | 460 | |||||||||||||||
Bank owned life insurance | 6,913 | 6,815 | 6,613 | 4,403 | 4,239 | |||||||||||||||
Deposits | 245,942 | 251,738 | 258,521 | 254,240 | 256,424 | |||||||||||||||
Federal Home Loan Bank of Chicago advances | 5,000 | 10,800 | 700 | — | — | |||||||||||||||
Short-term borrowings | 8,822 | 8,810 | 12,041 | 6,518 | 4,018 | |||||||||||||||
Stockholders’ equity | 45,016 | 41,139 | 44,120 | 41,165 | 35,678 |
For the Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Selected Operating Data: | ||||||||||||||||||||
Interest income | $ | 11,892 | $ | 12,078 | $ | 12,791 | $ | 13,867 | $ | 13,529 | ||||||||||
Interest expense | 1,451 | 1,782 | 2,303 | 2,879 | 3,953 | |||||||||||||||
Net interest income | 10,441 | 10,296 | 10,488 | 10,988 | 9,576 | |||||||||||||||
Provision for loan losses | 240 | 170 | 490 | 625 | 1,725 | |||||||||||||||
Net interest income after provision for loan losses | 10,201 | 10,126 | 9,998 | 10,363 | 7,851 | |||||||||||||||
Noninterest income | 3,919 | 4,443 | 4,882 | 3,996 | 4,197 | |||||||||||||||
Noninterest expense | 10,213 | 10,167 | 9,976 | 9,814 | 9,576 | |||||||||||||||
Income before income tax | 3,907 | 4,402 | 4,904 | 4,545 | 2,472 | |||||||||||||||
Provision for income taxes | 934 | 1,188 | 1,337 | 1,259 | 406 | |||||||||||||||
Net income | $ | 2,973 | $ | 3,214 | $ | 3,567 | $ | 3,286 | $ | 2,066 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 1.66 | $ | 1.73 | $ | 1.89 | $ | 1.74 | $ | 1.09 | ||||||||||
Diluted | $ | 1.65 | $ | 1.73 | $ | 1.89 | $ | 1.74 | $ | 1.08 | ||||||||||
Dividends per share | $ | 0.32 | $ | 0.31 | $ | 0.40 | $ | 0.30 | $ | 0.30 |
2 |
At or For the Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Selected Financial Ratios and Other Data: | ||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets (ratio of net income to average total assets) | 0.96 | % | 1.02 | % | 1.14 | % | 1.08 | % | 0.70 | % | ||||||||||
Return on average equity (ratio of net income to average equity) | 6.80 | % | 7.51 | % | 8.25 | % | 8.57 | % | 6.77 | % | ||||||||||
Interest rate spread(1) | 3.48 | % | 3.38 | % | 3.46 | % | 3.68 | % | 3.30 | % | ||||||||||
Net interest margin(2) | 3.61 | % | 3.51 | % | 3.62 | % | 3.87 | % | 3.51 | % | ||||||||||
Efficiency ratio(3) | 71.12 | % | 68.98 | % | 64.90 | % | 65.50 | % | 69.53 | % | ||||||||||
Dividend pay-out ratio | 19.20 | % | 17.60 | % | 21.00 | % | 17.14 | % | 20.37 | % | ||||||||||
Non-interest expense to average total assets | 3.29 | % | 3.23 | % | 3.20 | % | 3.23 | % | 3.25 | % | ||||||||||
Average interest-earning assets to average interest-bearing liabilities | 124.52 | % | 121.63 | % | 119.76 | % | 118.84 | % | 114.78 | % | ||||||||||
Average equity to average total assets | 14.08 | % | 13.58 | % | 13.86 | % | 12.60 | % | 10.37 | % | ||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Nonperforming assets to total assets | 0.78 | % | 0.65 | % | 0.73 | % | 0.92 | % | 1.19 | % | ||||||||||
Nonperforming loans to total loans | 1.21 | % | 0.97 | % | 1.25 | % | 1.38 | % | 1.75 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 130.57 | % | 191.14 | % | 150.85 | % | 137.33 | % | 94.56 | % | ||||||||||
Allowance for loan losses to gross loans(4) | 1.57 | % | 1.85 | % | 1.88 | % | 1.89 | % | 1.65 | % | ||||||||||
Capital Ratios (Bank): | ||||||||||||||||||||
Total capital (to risk-weighted assets) | 18.81 | % | 18.15 | % | 17.72 | % | 16.67 | % | 14.77 | % | ||||||||||
Tier I capital (to risk-weighted assets) | 17.56 | % | 16.89 | % | 16.46 | % | 15.42 | % | 13.52 | % | ||||||||||
Tier I capital (to total assets) | 12.25 | % | 11.51 | % | 10.89 | % | 10.35 | % | 9.25 | % | ||||||||||
Other Data: | ||||||||||||||||||||
Number of offices | 6 | 6 | 7 | 7 | 7 | |||||||||||||||
Full time equivalent employees | 96 | 98 | 104 | 104 | 104 |
(1) | The interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted- average cost of interest-bearing liabilities for the year. |
(2) | The net interest margin represents net interest income as a percent of average interest-earning assets for the year. |
(3) | The efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income. |
(4) | Gross loans include loans held for sale. |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
December 31, 2014 | December 31, 2013 | |||||||
(Dollars in thousands) | ||||||||
Non-accrual loans: | ||||||||
Real estate loans: | ||||||||
One- to four-family residential | $ | 995 | $ | 1,339 | ||||
Commercial | 932 | 208 | ||||||
Agricultural | 123 | — | ||||||
Home equity | 121 | 134 | ||||||
Commercial business loans | 22 | 38 | ||||||
Agricultural business loans | — | — | ||||||
Consumer loans | 71 | 63 | ||||||
Total non-accrual loans | 2,264 | 1,782 | ||||||
Loans delinquent 90 days or greater and still accruing: | ||||||||
Real estate loans: | ||||||||
One- to four-family residential | — | — | ||||||
Commercial | — | — | ||||||
Agricultural | — | — | ||||||
Home equity | — | — | ||||||
Commercial business loans | — | — | ||||||
Agricultural business loans | — | — | ||||||
Consumer loans | — | — | ||||||
Total loans delinquent 90 days or greater and still accruing | — | — | ||||||
Total nonperforming loans | 2,264 | 1,782 | ||||||
Other real estate owned and foreclosed assets: | ||||||||
Real estate loans: | ||||||||
One- to four-family residential | 40 | 133 | ||||||
Commercial | 137 | 149 | ||||||
Agricultural | — | — | ||||||
Home equity | — | — | ||||||
Commercial business loans | — | — | ||||||
Agricultural business loans | — | — | ||||||
Consumer loans | 2 | |||||||
Total other real estate owned and foreclosed assets | 177 | 284 | ||||||
Total nonperforming assets | $ | 2,441 | $ | 2,066 | ||||
Ratios: | ||||||||
Nonperforming loans to total loans | 1.21 | % | 0.97 | % | ||||
Nonperforming assets to total assets | 0.78 | 0.65 |
11 |
December 31, 2014 | December 31, 2013 | |||||||
(In thousands) | ||||||||
Special Mention loans | $ | 2,096 | $ | 1,057 | ||||
Substandard loans | 5,454 | 6,132 | ||||||
Total Special Mention and Substandard loans | $ | 7,550 | $ | 7,189 |
12 |
13 |
For the Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 180,936 | $ | 9,158 | 5.06 | % | $ | 174,685 | $ | 9,371 | 5.36 | % | ||||||||||||
Investment securities (2) | 58,883 | 1,751 | 2.97 | 60,389 | 1,793 | 2.97 | ||||||||||||||||||
Mortgage-backed securities | 46,939 | 981 | 2.09 | 50,762 | 877 | 1.73 | ||||||||||||||||||
Cash and cash equivalents | 2,792 | 2 | 0.06 | 7,499 | 37 | 0.49 | ||||||||||||||||||
Total interest-earning assets | 289,550 | 11,892 | 4.10 | % | 293,335 | 12,078 | 4.12 | % | ||||||||||||||||
Non-interest-earning assets | 21,029 | 21,649 | ||||||||||||||||||||||
Total assets | $ | 310,579 | $ | 314,984 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest bearing checking | $ | 38,080 | $ | 54 | 0.14 | % | $ | 37,595 | $ | 53 | 0.14 | % | ||||||||||||
Savings accounts | 37,323 | 80 | 0.21 | 34,860 | 76 | 0.22 | ||||||||||||||||||
Certificates of deposit | 102,890 | 1,180 | 1.15 | 116,036 | 1,512 | 1.30 | ||||||||||||||||||
Money market savings | 35,408 | 110 | 0.31 | 33,554 | 112 | 0.34 | ||||||||||||||||||
Money market deposits | 8,026 | 12 | 0.15 | 8,441 | 14 | 0.16 | ||||||||||||||||||
Total interest-bearing deposits | 221,727 | 1,436 | 0.65 | 230,486 | 1,767 | 0.77 | ||||||||||||||||||
Federal Home Loan Bank advances | 4,803 | 10 | 0.20 | 4,481 | 7 | 0.14 | ||||||||||||||||||
Short-term borrowings | 5,996 | 5 | 0.08 | 6,196 | 8 | 0.13 | ||||||||||||||||||
Total borrowings | 10,799 | 15 | 0.14 | 10,677 | 15 | 0.14 | ||||||||||||||||||
Total interest-bearing liabilities | 232,526 | 1,451 | 0.62 | % | 241,163 | 1,782 | 0.74 | % | ||||||||||||||||
Non-interest-bearing liabilities | 34,320 | 31,043 | ||||||||||||||||||||||
Total liabilities | 266,846 | 272,206 | ||||||||||||||||||||||
Stockholders’ equity | 43,733 | 42,778 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 310,579 | $ | 314,984 | ||||||||||||||||||||
Net interest income | $ | 10,441 | $ | 10,296 | ||||||||||||||||||||
Net interest rate spread (3) | 3.48 | % | 3.38 | % | ||||||||||||||||||||
Net interest-earning assets (4) | $ | 57,024 | $ | 52,172 | ||||||||||||||||||||
Net interest margin (5) | 3.61 | % | 3.51 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 124.52 | % | 121.63 | % |
(1) | Includes non-accrual loans and loans held for sale and fees of $92,000 for 2014 and $97,000 for 2013. | |
(2) | Includes Federal Home Loan Bank stock and U.S. Agency securities. | |
(3) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. | |
(4) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. | |
(5) | Net interest margin represents net interest income divided by average total interest-earning assets. |
14 |
Years Ended December 31, | ||||||||||||
2014 vs. 2013 | ||||||||||||
Increase (Decrease) Due to | Total Increase (Decrease) | |||||||||||
Rate | Volume | |||||||||||
(In thousands) | ||||||||||||
Interest-earning assets: | ||||||||||||
Loans | $ | (541 | ) | $ | 328 | $ | (213 | ) | ||||
Investment securities | 3 | (45 | ) | (42 | ) | |||||||
Mortgage-backed securities | 173 | (69 | ) | 104 | ||||||||
Cash and cash equivalents | (20 | ) | (15 | ) | (35 | ) | ||||||
Total interest-earning assets | $ | (385 | ) | $ | 199 | $ | (186 | ) | ||||
Interest-bearing liabilities: | ||||||||||||
Interest bearing checking | $ | — | $ | 1 | $ | 1 | ||||||
Savings accounts | (1 | ) | 5 | 4 | ||||||||
Certificates of deposit | (170 | ) | (161 | ) | (331 | ) | ||||||
Money market savings | (8 | ) | 6 | (2 | ) | |||||||
Money market deposits | (1 | ) | (1 | ) | (2 | ) | ||||||
Total interest-bearing deposits | (180 | ) | (150 | ) | (330 | ) | ||||||
Federal Home Loan Bank advances | 3 | — | 3 | |||||||||
Short-term borrowings | (3 | ) | — | (3 | ) | |||||||
Total interest-bearing liabilities | — | — | — | |||||||||
Change in net interest income | $ | (205 | ) | $ | 349 | $ | 144 |
15 |
Change in Net Interest Income | |||||||||||||||
December 31, 2014 | December 31, 2013 | ALCO Benchmark | |||||||||||||
Rate Shock | $ Change | % Change | $ Change | % Change | |||||||||||
(Dollars in thousands) | |||||||||||||||
+300 basis points | (167 | ) | (1.47 | )% | (148 | ) | (1.27 | )% | >(20.00 | )% | |||||
+200 basis points | (116 | ) | (1.02 | ) | (95 | ) | (0.82 | ) | >(20.00 | )% | |||||
+100 basis points | (46 | ) | (0.40 | ) | (32 | ) | (0.28 | ) | >(12.50 | )% | |||||
(100) basis points | (180 | ) | (1.59 | ) | (207 | ) | (1.78 | ) | >(12.50 | )% |
16 |
17 |
December 31, 2014 | December 31, 2013 | |||||||
(In thousands) | ||||||||
Commitments to fund loans | $ | 34,734 | $ | 41,694 | ||||
Standby letters of credit | 255 | 360 |
18 |
Well Capitalized | December 31, 2014 Actual | December 31, 2013 Actual | ||||||||||
Tier 1 Capital to Average Assets | 5.00 | % | 12.25 | % | 11.51 | % | ||||||
Tier 1 Capital to Risk-Weighted Assets | 6.00 | % | 17.56 | % | 16.89 | % | ||||||
Total Capital to Risk-Weighted Assets | 10.00 | % | 18.81 | % | 18.15 | % |
19 |
20 |
2014 | 2013 | |||||||
Cash and due from banks | $ | 6,427,536 | $ | 2,796,331 | ||||
Interest-earning demand deposits in banks | 3,184,102 | 3,302,539 | ||||||
Cash and cash equivalents | 9,611,638 | 6,098,870 | ||||||
Available-for-sale securities: | ||||||||
Investment securities | 55,264,976 | 60,638,942 | ||||||
Mortgage-backed securities | 41,419,921 | 48,345,655 | ||||||
Other investments | 73,766 | 81,918 | ||||||
Loans held for sale | 235,600 | 262,461 | ||||||
Loans, net of allowance for loan losses of $2,956,264 and $3,406,434 at December 31, 2014 and 2013 | 184,718,612 | 180,639,502 | ||||||
Premises and equipment, net of accumulated depreciation of $5,742,785 and $7,096,401 at December 31, 2014 and 2013 | 4,945,983 | 5,178,978 | ||||||
Federal Home Loan Bank stock | 1,113,800 | 1,113,800 | ||||||
Foreclosed assets held for sale, net | 176,671 | 281,918 | ||||||
Cash surrender value of life insurance | 6,912,917 | 6,815,059 | ||||||
Interest receivable | 1,713,243 | 1,817,415 | ||||||
Deferred income taxes | 1,486,206 | 2,703,110 | ||||||
Mortgage servicing rights, net of valuation allowance of $56,969 and $73,392 as of December 31, 2014 and 2013 | 632,634 | 673,576 | ||||||
Goodwill | 2,726,567 | 2,726,567 | ||||||
Other assets | 892,118 | 1,041,005 | ||||||
Total assets | $ | 311,924,652 | $ | 318,418,776 |
21 |
2014 | 2013 | |||||||
Liabilities | ||||||||
Deposits | ||||||||
Demand | $ | 30,976,025 | $ | 29,976,167 | ||||
Savings, NOW and money market | 120,365,974 | 113,610,655 | ||||||
Time | 94,599,563 | 108,151,569 | ||||||
Total deposits | 245,941,562 | 251,738,391 | ||||||
Short-term borrowings | 13,821,730 | 19,610,297 | ||||||
Deferred compensation | 4,252,720 | 3,999,371 | ||||||
Advances from borrowers for taxes and insurance | 962,762 | 857,814 | ||||||
Interest payable | 166,052 | 210,226 | ||||||
Income taxes payable | 200,781 | 34,621 | ||||||
Other liabilities | 1,562,947 | 829,260 | ||||||
Total liabilities | 266,908,554 | 277,279,980 | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, $.01 par value, authorized 10,000,000 shares; none issued and outstanding | — | — | ||||||
Common stock, $.01 par value; authorized 25,000,000 shares; issued 1,799,483 – December 31, 2014 and 1,832,860 – December 31, 2013 | 17,995 | 18,329 | ||||||
Additional paid-in capital | 13,900,743 | 14,561,085 | ||||||
Retained earnings | 30,635,787 | 28,233,876 | ||||||
Accumulated other comprehensive income (loss) | 711,483 | (1,386,964 | ) | |||||
Unallocated ESOP shares | (249,910 | ) | (287,530 | ) | ||||
Total stockholders’ equity | 45,016,098 | 41,138,796 | ||||||
Total liabilities and stockholders’ equity | $ | 311,924,652 | $ | 318,418,776 |
22 |
2014 | 2013 | |||||||
Interest and Fee Income | ||||||||
Loans, including fees | $ | 9,157,672 | $ | 9,370,899 | ||||
Debt securities | ||||||||
Taxable | 225,722 | 238,419 | ||||||
Tax-exempt | 1,525,723 | 1,554,595 | ||||||
Mortgage-backed securities | 981,032 | 877,300 | ||||||
Other | 1,759 | 36,552 | ||||||
Total interest income | 11,891,908 | 12,077,765 | ||||||
Interest Expense | ||||||||
Deposits | 1,436,803 | 1,766,740 | ||||||
Short-term borrowings | 5,085 | 8,175 | ||||||
Federal Home Loan Bank advances | 9,570 | 6,356 | ||||||
Total interest expense | 1,451,458 | 1,781,271 | ||||||
Net Interest Income | 10,440,450 | 10,296,494 | ||||||
Provision for Loan Losses | 240,000 | 170,000 | ||||||
Net Interest Income After Provision for Loan Losses | 10,200,450 | 10,126,494 | ||||||
Noninterest Income | ||||||||
Fiduciary activities | 290,681 | 252,831 | ||||||
Commission income | 1,201,869 | 1,056,380 | ||||||
Service charges on deposit accounts | 714,425 | 826,082 | ||||||
Mortgage banking operations, net | 124,564 | 238,974 | ||||||
Net realized gains on sales of available-for-sale securities | 408,753 | 897,901 | ||||||
Loan servicing fees | 361,586 | 372,219 | ||||||
Increase in cash surrender value of life insurance | 185,986 | 194,841 | ||||||
ATM and bank card interchange income | 494,360 | 430,639 | ||||||
Other | 136,875 | 173,003 | ||||||
Total noninterest income | 3,919,099 | 4,442,870 |
23 |
2014 | 2013 | |||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | $ | 6,480,468 | $ | 6,501,277 | ||||
Occupancy and equipment | 974,361 | 1,021,638 | ||||||
Data processing and telecommunications | 531,554 | 624,134 | ||||||
Professional | 532,096 | 283,447 | ||||||
Marketing | 112,713 | 133,421 | ||||||
Postage and office supplies | 235,090 | 266,128 | ||||||
Deposit insurance premium | 153,137 | 156,125 | ||||||
ATM and bank card expense | 282,574 | 245,448 | ||||||
Other | 910,756 | 935,802 | ||||||
Total noninterest expense | 10,212,749 | 10,167,420 | ||||||
Income Before Income Taxes | 3,906,800 | 4,401,944 | ||||||
Provision for Income Taxes | 934,046 | 1,188,299 | ||||||
Net Income | $ | 2,972,754 | $ | 3,213,645 | ||||
Basic Earnings Per Share | $ | 1.66 | $ | 1.73 | ||||
Diluted Earnings Per Share | $ | 1.65 | $ | 1.73 | ||||
Cash Dividends Per Share | $ | 0.32 | $ | 0.31 |
2014 | 2013 | |||||||
Net Income | $ | 2,972,754 | $ | 3,213,645 | ||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of $1,219,994 and $(1,901,395) for 2014 and 2013, respectively | 2,368,224 | (3,690,942 | ) | |||||
Less: reclassification adjustment for realized gains included in net income, net of taxes of $138,976 and $305,286 for 2014 and 2013, respectively | 269,777 | 592,615 | ||||||
2,098,447 | (4,283,557 | ) | ||||||
Comprehensive Income (Loss) | $ | 5,071,201 | $ | (1,069,912 | ) |
24 |
Additional | ||||||||||||||||
Issued Common Stock | Paid-in | Retained | ||||||||||||||
Shares | Amount | Capital | Earnings | |||||||||||||
Balance, January 1, 2013 | 1,908,556 | 19,086 | 15,943,273 | 25,585,757 | ||||||||||||
Net income | — | — | — | 3,213,645 | ||||||||||||
Other comprehensive income (loss) | — | — | — | — | ||||||||||||
Stock repurchases | (81,698 | ) | (817 | ) | (1,596,142 | ) | — | |||||||||
Exercise of stock options | 6,002 | 60 | 88,398 | — | ||||||||||||
Tax benefit of nonqualified options | — | — | 1,796 | — | ||||||||||||
Stock-based compensation expense | — | — | 90,162 | — | ||||||||||||
Common shares held by ESOP, committed to be released | — | — | 33,598 | — | ||||||||||||
Dividends on common stock, $.31 per share | — | — | — | (565,526 | ) | |||||||||||
Balance, December 31, 2013 | 1,832,860 | 18,329 | 14,561,085 | 28,233,876 | ||||||||||||
Net income | — | — | — | 2,972,754 | ||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||
Stock repurchases | (48,478 | ) | (485 | ) | (1,028,203 | ) | — | |||||||||
Exercise of stock options | 15,101 | 151 | 230,827 | — | ||||||||||||
Tax benefit of nonqualified options | — | — | 3,513 | — | ||||||||||||
Stock-based compensation expense | — | — | 90,163 | — | ||||||||||||
Common shares held by ESOP, committed to be released | — | — | 43,358 | — | ||||||||||||
Dividends on common stock, $.32 per share | — | — | — | (570,843 | ) | |||||||||||
Balance, December 31, 2014 | 1,799,483 | $ | 17,995 | $ | 13,900,743 | $ | 30,635,787 |
25 |
Accumulated | ||||||||||||
Other | ||||||||||||
Comprehensive | Unallocated | |||||||||||
Income (Loss) | ESOP | Total | ||||||||||
Balance, January 1, 2013 | 2,896,593 | (324,380 | ) | 44,120,329 | ||||||||
Net income | — | — | 3,213,645 | |||||||||
Other comprehensive income (loss) | (4,283,557 | ) | — | (4,283,557 | ) | |||||||
Stock repurchases | — | — | (1,596,959 | ) | ||||||||
Exercise of stock options | — | — | 88,458 | |||||||||
Tax benefit of nonqualified options | — | — | 1,796 | |||||||||
Stock-based compensation expense | — | — | 90,162 | |||||||||
Common shares held by ESOP, committed to be released | — | 36,850 | 70,448 | |||||||||
Dividends on common stock, $.31 per share | — | — | (565,526 | ) | ||||||||
Balance, December 31, 2013 | (1,386,964 | ) | (287,530 | ) | 41,138,796 | |||||||
Net income | — | — | 2,972,754 | |||||||||
Other comprehensive income | 2,098,447 | — | 2,098,447 | |||||||||
Stock repurchases | — | — | (1,028,688 | ) | ||||||||
Exercise of stock options | — | — | 230,978 | |||||||||
Tax benefit of nonqualified options | — | — | 3,513 | |||||||||
Stock-based compensation expense | — | — | 90,163 | |||||||||
Common shares held by ESOP, committed to be released | — | 37,620 | 80,978 | |||||||||
Dividends on common stock, $.32 per share | — | — | (570,843 | ) | ||||||||
Balance, December 31, 2014 | $ | 711,483 | $ | (249,910 | ) | $ | 45,016,098 |
26 |
2014 | 2013 | |||||||
Operating Activities | ||||||||
Net income | $ | 2,972,754 | $ | 3,213,645 | ||||
Items not requiring (providing) cash | ||||||||
Depreciation and amortization | 385,385 | 382,299 | ||||||
Provision for loan losses | 240,000 | 170,000 | ||||||
Amortization of premiums and discounts on securities and loans | 724,332 | 948,972 | ||||||
Deferred income taxes | 135,886 | (31,880 | ) | |||||
Net realized gains on available-for-sale securities | (408,753 | ) | (897,901 | ) | ||||
Loss from sale/disposal of premises and equipment | — | 75,360 | ||||||
Amortization of mortgage servicing rights | 127,647 | 170,523 | ||||||
Recovery of mortgage servicing rights asset | — | (33,649 | ) | |||||
Increase in cash surrender value of life insurance, net | (97,858 | ) | (202,417 | ) | ||||
Gains on sales of foreclosed assets | (9,122 | ) | — | |||||
Shares held by ESOP committed to be released | 80,978 | 70,448 | ||||||
Stock-based compensation expense | 90,163 | 90,162 | ||||||
Changes in | ||||||||
Interest receivable | 104,172 | 236,057 | ||||||
Other assets | (89,576 | ) | 339,036 | |||||
Interest payable | (44,174 | ) | (66,531 | ) | ||||
Other liabilities | 1,153,196 | (92,216 | ) | |||||
Origination of loans held for sale | (12,358,997 | ) | (23,747,987 | ) | ||||
Proceeds from sales of loans held for sale | 12,543,780 | 24,459,995 | ||||||
Net cash provided by operating activities | 5,549,813 | 5,083,916 | ||||||
Investing Activities | ||||||||
Net change in interest-earning time deposits | — | 2,972,000 | ||||||
Purchases of available-for-sale securities | (23,850,584 | ) | (43,336,382 | ) | ||||
Proceeds from maturities and payments of available-for-sale securities | 7,764,734 | 13,997,055 | ||||||
Proceeds from the sales of available-for-sale investments and other investments | 31,257,071 | 29,214,848 | ||||||
Net change in loans | (4,387,125 | ) | (7,185,004 | ) | ||||
Purchase of premises and equipment | (152,390 | ) | (268,232 | ) | ||||
Proceeds from sale of premises and equipment | — | 286,371 | ||||||
Proceeds from the sale of foreclosed assets | 176,737 | — | ||||||
Net cash provided by (used in) investing activities | 10,808,443 | (4,319,344 | ) |
27 |
2014 | 2013 | |||||||
Financing Activities | ||||||||
Net increase in demand deposits, money market, NOW and savings accounts | $ | 7,755,177 | $ | 7,930,755 | ||||
Net decrease in certificates of deposit | (13,552,006 | ) | (14,713,093 | ) | ||||
Net increase (decrease) in short-term borrowings | (5,788,567 | ) | 6,869,687 | |||||
Net increase in advances from borrowers for taxes and insurance | 104,948 | 25,469 | ||||||
Stock repurchase | (1,028,688 | ) | (1,596,959 | ) | ||||
Proceeds from stock options exercised | 234,491 | 90,254 | ||||||
Dividends paid | (570,843 | ) | (565,526 | ) | ||||
Net cash used in financing activities | (12,845,488 | ) | (1,959,413 | ) | ||||
Increase (Decrease) in Cash and Cash Equivalents | 3,512,768 | (1,194,841 | ) | |||||
Cash and Cash Equivalents, Beginning of Year | 6,098,870 | 7,293,711 | ||||||
Cash and Cash Equivalents, End of Year | $ | 9,611,638 | $ | 6,098,870 | ||||
Supplemental Cash Flows Information | ||||||||
Interest paid | $ | 1,495,632 | $ | 1,847,802 | ||||
Income taxes paid | $ | 632,000 | $ | 1,399,673 | ||||
Sale and financing of foreclosed assets | $ | 298,000 | $ | — | ||||
Real estate acquired in settlement of loans | $ | 374,116 | $ | 129,078 | ||||
Dividends declared not paid | $ | 143,959 | $ | 147,229 | ||||
Exercise and retirement of shares in stock option plan | $ | 101,130 | $ | 63,445 |
28 |
29 |
30 |
31 |
Buildings and improvements | 35-40 years |
Equipment | 3-5 years |
32 |
33 |
34 |
35 |
36 |
37 |
Note 2: Restriction on Cash and Due From Banks |
Note 3: Securities |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale Securities | ||||||||||||||||
December 31, 2014: | ||||||||||||||||
U.S. Government and federal agencies | $ | 10,031,683 | $ | 65,328 | $ | (138,738 | ) | $ | 9,958,273 | |||||||
Mortgage-backed securities (Government-sponsored enterprises - residential) | 41,196,695 | 433,757 | (210,531 | ) | 41,419,921 | |||||||||||
Municipal bonds | 44,378,515 | 1,457,977 | (529,789 | ) | 45,306,703 | |||||||||||
$ | 95,606,893 | $ | 1,957,062 | $ | (879,058 | ) | $ | 96,684,897 | ||||||||
December 31, 2013: | ||||||||||||||||
U.S. Government and federal agencies | $ | 10,710,675 | $ | 114,936 | $ | (405,535 | ) | $ | 10,420,076 | |||||||
Mortgage-backed securities (Government-sponsored enterprises - residential) | 49,486,337 | 219,222 | (1,359,904 | ) | 48,345,655 | |||||||||||
Municipal bonds | 50,889,046 | 1,053,134 | (1,723,314 | ) | 50,218,866 | |||||||||||
$ | 111,086,058 | $ | 1,387,292 | $ | (3,488,753 | ) | $ | 108,984,597 |
38 |
Available-for-sale | ||||||||
Amortized Cost | Fair Value | |||||||
Within one year | $ | 535,664 | $ | 544,411 | ||||
One to five years | 9,184,010 | 9,490,518 | ||||||
Five to ten years | 25,748,781 | 26,064,641 | ||||||
After ten years | 18,941,743 | 19,165,406 | ||||||
54,410,198 | 55,264,976 | |||||||
Mortgage-backed securities | 41,196,695 | 41,419,921 | ||||||
Totals | $ | 95,606,893 | $ | 96,684,897 |
39 |
December 31, 2014 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||||||||
U.S. Government agencies | $ | 2,955,829 | $ | (28,208 | ) | $ | 3,949,940 | $ | (110,530 | ) | $ | 6,905,769 | $ | (138,738 | ) | |||||||||
Mortgage-backed securities (Government-sponsored enterprises - residential) | 2,061,203 | (13,358 | ) | 13,725,099 | (197,173 | ) | 15,786,302 | (210,531 | ) | |||||||||||||||
Municipal bonds | 3,953,168 | (44,654 | ) | 13,942,169 | (485,135 | ) | 17,895,337 | (529,789 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 8,970,200 | $ | (86,220 | ) | $ | 31,617,208 | $ | (792,838 | ) | $ | 40,587,408 | $ | (879,058 | ) |
December 31, 2013 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||||||||
U.S. Government agencies | $ | 5,824,808 | $ | (367,005 | ) | $ | 470,324 | $ | (38,530 | ) | $ | 6,295,132 | $ | (405,535 | ) | |||||||||
Mortgage-backed securities (Government-sponsored enterprises - residential) | 33,521,545 | (1,065,542 | ) | 6,087,526 | (294,362 | ) | 39,609,071 | (1,359,904 | ) | |||||||||||||||
Municipal bonds | 22,534,325 | (1,462,733 | ) | 2,759,523 | (260,581 | ) | 25,293,848 | (1,723,314 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 61,880,678 | $ | (2,895,280 | ) | $ | 9,317,373 | $ | (593,473 | ) | $ | 71,198,051 | $ | (3,488,753 | ) |
40 |
Note 4: Loans and Allowance for Loan Losses |
2014 | 2013 | |||||||
Mortgage loans on real estate | ||||||||
Residential 1-4 family | $ | 44,561,089 | $ | 44,286,657 | ||||
Commercial | 40,474,855 | 38,920,692 | ||||||
Agricultural | 40,119,130 | 35,005,662 | ||||||
Home equity | 11,283,264 | 11,729,112 | ||||||
Total mortgage loans on real estate | 136,438,338 | 129,942,123 | ||||||
Commercial loans | 26,813,880 | 29,946,928 | ||||||
Agricultural | 11,844,973 | 10,559,593 | ||||||
Consumer | 12,587,101 | 13,605,897 | ||||||
187,684,292 | 184,054,541 | |||||||
Less | ||||||||
Net deferred loan fees | 9,416 | 8,605 | ||||||
Allowance for loan losses | 2,956,264 | 3,406,434 | ||||||
Net loans | $ | 184,718,612 | $ | 180,639,502 |
41 |
42 |
43 |
44 |
45 |
46 |
December 31, 2014 | ||||||||||||||||||||||||||||||||||||
1-4 Family | Commercial Real Estate | Agricultural Real Estate | Commercial | Agricultural | Home Equity | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 856,144 | $ | 745,760 | $ | 175,028 | $ | 1,034,189 | $ | 52,798 | $ | 201,993 | $ | 184,848 | $ | 155,674 | $ | 3,406,434 | ||||||||||||||||||
Provision charged to expense | 241,875 | 392,009 | 20,518 | (327,057 | ) | 5,136 | 5,887 | 3,950 | (102,318 | ) | 240,000 | |||||||||||||||||||||||||
Losses charged off | (100,319 | ) | (287,474 | ) | — | (285,411 | ) | — | (5,403 | ) | (25,781 | ) | — | (704,388 | ) | |||||||||||||||||||||
Recoveries | 1,560 | 5,168 | — | 88 | — | 3,100 | 4,302 | — | 14,218 | |||||||||||||||||||||||||||
Balance, end of year | $ | 999,260 | $ | 855,463 | $ | 195,546 | $ | 421,809 | $ | 57,934 | $ | 205,577 | $ | 167,319 | $ | 53,356 | $ | 2,956,264 | ||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 183,196 | $ | 348,240 | $ | — | $ | 154,089 | $ | — | $ | 9,982 | $ | — | $ | — | $ | 695,507 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 816,064 | $ | 507,223 | $ | 195,546 | $ | 267,720 | $ | 57,934 | $ | 195,595 | $ | 167,319 | $ | 53,356 | $ | 2,260,757 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 44,561,089 | $ | 40,474,855 | $ | 40,119,130 | $ | 26,813,880 | $ | 11,844,973 | $ | 11,283,264 | $ | 12,587,101 | $ | — | $ | 187,684,292 | ||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 713,962 | $ | 1,690,251 | $ | 1,009,889 | $ | 240,805 | $ | 258,140 | $ | 37,531 | $ | 8,469 | $ | — | $ | 3,959,047 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 43,847,127 | $ | 38,784,604 | $ | 39,109,241 | $ | 26,573,075 | $ | 11,586,833 | $ | 11,245,733 | $ | 12,578,632 | $ | — | $ | 183,725,245 |
December 31, 2013 | ||||||||||||||||||||||||||||||||||||
1-4 Family | Commercial Real Estate | Agricultural Real Estate | Commercial | Agricultural | Home Equity | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 741,029 | $ | 828,873 | $ | 149,568 | $ | 934,251 | $ | 43,930 | $ | 328,996 | $ | 151,474 | $ | 161,343 | $ | 3,339,464 | ||||||||||||||||||
Provision charged to expense | 261,492 | (218,949 | ) | 25,460 | 92,597 | 8,868 | (78,628 | ) | 84,829 | (5,669 | ) | 170,000 | ||||||||||||||||||||||||
Losses charged off | (162,448 | ) | — | — | — | — | (63,410 | ) | (66,467 | ) | — | (292,325 | ) | |||||||||||||||||||||||
Recoveries | 16,071 | 135,836 | — | 7,341 | — | 15,035 | 15,012 | — | 189,295 | |||||||||||||||||||||||||||
Balance, end of year | $ | 856,144 | $ | 745,760 | $ | 175,028 | $ | 1,034,189 | $ | 52,798 | $ | 201,993 | $ | 184,848 | $ | 155,674 | $ | 3,406,434 | ||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 248,857 | $ | — | $ | 622,730 | $ | — | $ | — | $ | 10,836 | $ | — | $ | 882,423 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 856,144 | $ | 496,903 | $ | 175,028 | $ | 411,459 | $ | 52,798 | $ | 201,993 | $ | 174,012 | $ | 155,674 | $ | 2,524,011 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 44,286,657 | $ | 38,920,692 | $ | 35,005,662 | $ | 29,946,928 | $ | 10,559,593 | $ | 11,729,112 | $ | 13,605,897 | $ | — | $ | 184,054,541 | ||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 563,524 | $ | 1,531,078 | $ | — | $ | 662,730 | $ | — | $ | 71,548 | $ | 101,089 | $ | — | $ | 2,929,969 | ||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 43,723,133 | $ | 37,389,614 | $ | 35,005,662 | $ | 29,284,198 | $ | 10,559,593 | $ | 11,657,564 | $ | 13,504,808 | $ | — | $ | 181,124,572 |
47 |
48 |
1-4 Family | Commercial Real Estate | Agricultural Real Estate | Commercial | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Pass | $ | 41,530,699 | $ | 41,061,498 | $ | 38,122,972 | $ | 36,489,660 | $ | 39,109,241 | $ | 35,005,662 | $ | 26,563,823 | $ | 29,231,227 | ||||||||||||||||
Special Mention | 655,049 | 775,545 | 53,750 | 57,488 | 887,048 | — | — | — | ||||||||||||||||||||||||
Substandard | 2,375,341 | 2,449,614 | 2,298,133 | 2,373,544 | 122,841 | — | 250,057 | 715,701 | ||||||||||||||||||||||||
Total | $ | 44,561,089 | $ | 44,286,657 | $ | 40,474,855 | $ | 38,920,692 | $ | 40,119,130 | $ | 35,005,662 | $ | 26,813,880 | $ | 29,946,928 |
Agricultural Business | Home Equity | Consumer | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Pass | $ | 11,586,833 | $ | 10,559,593 | $ | 10,833,853 | $ | 11,215,416 | $ | 12,386,412 | $ | 13,302,507 | ||||||||||||
Special Mention | 258,140 | — | 162,103 | 155,515 | 80,544 | 68,480 | ||||||||||||||||||
Substandard | — | — | 287,308 | 358,181 | 120,145 | 234,910 | ||||||||||||||||||
Total | $ | 11,844,973 | $ | 10,559,593 | $ | 11,283,264 | $ | 11,729,112 | $ | 12,587,101 | $ | 13,605,897 |
December 31, 2014 | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days | Total Past Due | Current | Total Loans Receivable | Total Loans > 90 Days & Accruing | ||||||||||||||||||||||
1-4 Family | $ | 420,086 | $ | 286,622 | $ | 613,534 | $ | 1,320,242 | $ | 43,240,847 | $ | 44,561,089 | $ | — | ||||||||||||||
Commercial real estate | — | 794,110 | 39,023 | 833,133 | 39,641,722 | 40,474,855 | — | |||||||||||||||||||||
Agricultural real estate | — | — | 122,841 | 122,841 | 39,996,289 | 40,119,130 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 26,813,880 | 26,813,880 | — | |||||||||||||||||||||
Agricultural business | — | — | — | — | 11,844,973 | 11,844,973 | — | |||||||||||||||||||||
Home equity | 96,971 | 11,561 | 58,360 | 166,892 | 11,116,372 | 11,283,264 | — | |||||||||||||||||||||
Consumer | 90,558 | 5,531 | 16,560 | 112,649 | 12,474,452 | 12,587,101 | — | |||||||||||||||||||||
Total | $ | 607,615 | $ | 1,097,824 | $ | 850,318 | $ | 2,555,757 | $ | 185,128,535 | $ | 187,684,292 | $ | — |
December 31, 2013 | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days | Total Past Due | Current | Total Loans Receivable | Total Loans > 90 Days & Accruing | ||||||||||||||||||||||
1-4 Family | $ | 350,539 | $ | 95,782 | $ | 806,877 | $ | 1,253,198 | $ | 43,033,459 | $ | 44,286,657 | $ | — | ||||||||||||||
Commercial real estate | — | 68,216 | 78,281 | 146,497 | 38,774,195 | 38,920,692 | — | |||||||||||||||||||||
Agricultural real estate | — | — | — | — | 35,005,662 | 35,005,662 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 29,946,928 | 29,946,928 | — | |||||||||||||||||||||
Agricultural business | — | — | — | — | 10,559,593 | 10,559,593 | — | |||||||||||||||||||||
Home equity | 156,331 | 47,585 | 55,288 | 259,204 | 11,469,908 | 11,729,112 | — | |||||||||||||||||||||
Consumer | 108,452 | 26,212 | 9,900 | 144,564 | 13,461,333 | 13,605,897 | — | |||||||||||||||||||||
Total | $ | 615,322 | $ | 237,795 | $ | 950,346 | $ | 1,803,463 | $ | 182,251,078 | $ | 184,054,541 | $ | — |
49 |
50 |
December 31, 2014 | ||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | Interest Income Recognized Cash Basis | |||||||||||||||||||
Loans without a specific valuation allowance | ||||||||||||||||||||||||
1-4 Family | $ | 129,272 | $ | 129,272 | $ | — | $ | 220,541 | $ | 12,818 | $ | 13,076 | ||||||||||||
Commercial real estate | 564,610 | 564,610 | — | 757,616 | 19,826 | 18,816 | ||||||||||||||||||
Agricultural real estate | 1,009,889 | 1,009,889 | — | 1,037,661 | 58,253 | 49,159 | ||||||||||||||||||
Agricultural business | 258,140 | 258,140 | — | 358,529 | 13,723 | 1,046 | ||||||||||||||||||
Home equity | 27,549 | 27,549 | — | 29,505 | 2,881 | 2,939 | ||||||||||||||||||
Consumer | 8,469 | 8,469 | — | 12,285 | 951 | 964 | ||||||||||||||||||
Loans with a specific valuation allowance | ||||||||||||||||||||||||
1-4 Family | 584,690 | 584,690 | 183,196 | 604,031 | 28,722 | 26,783 | ||||||||||||||||||
Commercial real estate | 1,125,641 | 1,125,641 | 348,240 | 1,134,401 | 66,864 | 60,012 | ||||||||||||||||||
Commercial | 240,805 | 240,805 | 154,089 | 319,812 | 14,425 | 16,554 | ||||||||||||||||||
Home equity | 9,982 | 9,982 | 9,982 | 9,993 | 247 | 187 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
1-4 family | 713,962 | 713,962 | 183,196 | 824,572 | 41,540 | 39,859 | ||||||||||||||||||
Commercial real estate | 1,690,251 | 1,690,251 | 348,240 | 1,892,017 | 86,690 | 78,828 | ||||||||||||||||||
Agricultural real estate | 1,009,889 | 1,009,889 | — | 1,037,661 | 58,253 | 49,159 | ||||||||||||||||||
Commercial | 240,805 | 240,805 | 154,089 | 319,812 | 14,425 | 16,554 | ||||||||||||||||||
Agricultural business | 258,140 | 258,140 | — | 358,529 | 13,723 | 1,046 | ||||||||||||||||||
Home equity | 37,531 | 37,531 | 9,982 | 39,498 | 3,128 | 3,126 | ||||||||||||||||||
Consumer | 8,469 | 8,469 | — | 12,285 | 951 | 964 | ||||||||||||||||||
Total | $ | 3,959,047 | $ | 3,959,047 | $ | 695,507 | $ | 4,484,374 | $ | 218,710 | $ | 189,536 |
51 |
December 31, 2013 | ||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | Interest Income Recognized Cash Basis | |||||||||||||||||||
Loans without a specific valuation allowance | ||||||||||||||||||||||||
1-4 Family | $ | 563,524 | $ | 563,524 | $ | — | $ | 652,373 | $ | 27,250 | $ | 25,347 | ||||||||||||
Commercial real estate | 63,293 | 63,293 | — | 96,019 | 5,282 | 5,327 | ||||||||||||||||||
Home equity | 71,548 | 71,548 | — | 66,388 | 3,017 | 2,980 | ||||||||||||||||||
Consumer | 4,528 | 4,528 | — | 6,419 | 453 | 442 | ||||||||||||||||||
Loans with a specific valuation allowance | ||||||||||||||||||||||||
Commercial real estate | 1,467,785 | 1,467,785 | 248,857 | 1,488,243 | 79,719 | 74,028 | ||||||||||||||||||
Commercial | 662,730 | 662,730 | 622,730 | 726,269 | 34,465 | 33,921 | ||||||||||||||||||
Consumer | 96,561 | 96,561 | 10,836 | 99,401 | 1,586 | 1,576 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
1-4 family | 563,524 | 563,524 | — | 652,373 | 27,250 | 25,347 | ||||||||||||||||||
Commercial real estate | 1,531,078 | 1,531,078 | 248,857 | 1,584,262 | 85,001 | 79,355 | ||||||||||||||||||
Commercial | 662,730 | 662,730 | 622,730 | 726,269 | 34,465 | 33,921 | ||||||||||||||||||
Home equity | 71,548 | 71,548 | — | 66,388 | 3,017 | 2,980 | ||||||||||||||||||
Consumer | 101,089 | 101,089 | 10,836 | 105,820 | 2,039 | 2,018 | ||||||||||||||||||
Total | $ | 2,929,969 | $ | 2,929,969 | $ | 882,423 | $ | 3,135,112 | $ | 151,772 | $ | 143,621 |
2014 | 2013 | |||||||
1-4 family | $ | 994,855 | $ | 1,339,487 | ||||
Commercial real estate | 932,578 | 208,297 | ||||||
Agricultural real estate | 122,841 | — | ||||||
Commercial | 22,438 | 37,939 | ||||||
Agricultural business | — | — | ||||||
Home equity | 120,698 | 133,823 | ||||||
Consumer | 70,643 | 62,617 | ||||||
Total | $ | 2,264,053 | $ | 1,782,163 |
52 |
2014 | 2013 | |||||||
1-4 family | $ | 747,470 | $ | 661,880 | ||||
Commercial real estate | 1,265,079 | 1,137,667 | ||||||
Agricultural real estate | — | — | ||||||
Commercial | 212,579 | 675,483 | ||||||
Agricultural business | — | — | ||||||
Home equity | 15,379 | 79,087 | ||||||
Consumer | 42,786 | 43,559 | ||||||
Total | $ | 2,283,293 | $ | 2,597,676 |
2014 | 2013 | |||||||
1-4 family | $ | 567,931 | $ | 591,000 | ||||
Commercial real estate | 470,969 | 1,074,194 | ||||||
Agricultural real estate | — | — | ||||||
Commercial | 212,579 | 675,483 | ||||||
Agricultural business | — | — | ||||||
Home equity | 12,074 | 13,015 | ||||||
Consumer | 42,786 | 42,059 | ||||||
Total | $ | 1,306,339 | $ | 2,395,751 |
53 |
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||
Number of Modifications | Recorded Investment | Number of Modifications | Recorded Investment | |||||||||||||
1-4 family | 3 | $ | 201,879 | 8 | $ | 522,819 | ||||||||||
Commercial real estate | 1 | 386,355 | 3 | 175,649 | ||||||||||||
Agricultural real estate | — | — | — | — | ||||||||||||
Commercial | — | — | 1 | 40,644 | ||||||||||||
Agricultural business | — | — | — | — | ||||||||||||
Home equity | — | — | — | — | ||||||||||||
Consumer | 1 | 15,953 | 1 | 27,593 | ||||||||||||
Total | 5 | $ | 604,187 | 13 | $ | 766,705 |
54 |
Note 5: Premises and Equipment |
2014 | 2013 | |||||||
Land | $ | 773,186 | $ | 773,186 | ||||
Buildings and improvements | 6,661,148 | 6,694,149 | ||||||
Equipment | 3,254,434 | 4,808,044 | ||||||
10,688,768 | 12,275,379 | |||||||
Less accumulated depreciation | (5,742,785 | ) | (7,096,401 | ) | ||||
Net premises and equipment | $ | 4,945,983 | $ | 5,178,978 |
55 |
Note 6: Loan Servicing |
2014 | 2013 | |||||||
Mortgage servicing rights | ||||||||
Balance, beginning of year | $ | 746,968 | $ | 793,715 | ||||
Additions | 53,859 | 101,538 | ||||||
Amortization | (111,224 | ) | (148,285 | ) | ||||
Balance at end of year | 689,603 | 746,968 | ||||||
Valuation allowances | ||||||||
Balance at beginning of year | 73,392 | 129,279 | ||||||
Additions due to decreases in market value | — | — | ||||||
Reduction due to increases in market value | — | (33,649 | ) | |||||
Reduction due to payoff of loans | (16,423 | ) | (22,238 | ) | ||||
Balances at end of year | 56,969 | 73,392 | ||||||
Mortgage servicing assets, net | $ | 632,634 | $ | 673,576 | ||||
Fair value disclosures | ||||||||
Fair value as of the beginning of the period | $ | 1,120,000 | $ | 765,029 | ||||
Fair value as of the end of the period | $ | 979,699 | $ | 1,120,000 |
56 |
Note 7: Interest-bearing Deposits |
December 31, | ||||||||
2014 | 2013 | |||||||
Savings, NOW and Money Market | $ | 257,214 | $ | 256,010 | ||||
Certificates of deposit | 1,179,589 | 1,510,730 | ||||||
Total deposit interest expense | $ | 1,436,803 | $ | 1,766,740 |
2015 | $ | 51,911,089 | ||
2016 | 20,213,799 | |||
2017 | 10,056,961 | |||
2018 | 5,760,161 | |||
2019 | 6,657,553 | |||
$ | 94,599,563 |
Note 8: Short-term Borrowings |
57 |
Note 9: Income Taxes |
2014 | 2013 | |||||||
Taxes currently payable | ||||||||
Federal | $ | 798,160 | $ | 813,409 | ||||
State | — | 406,770 | ||||||
Deferred income taxes | 135,886 | (31,880 | ) | |||||
Income tax expense | $ | 934,046 | $ | 1,188,299 |
2014 | 2013 | |||||||
Computed at the statutory rate (34%) | $ | 1,328,312 | $ | 1,496,661 | ||||
Increase (decrease) resulting from | ||||||||
Tax exempt interest | (503,089 | ) | (509,850 | ) | ||||
State income taxes, net | 173,879 | 264,287 | ||||||
Increase in cash surrender value | (63,235 | ) | (66,246 | ) | ||||
Other | (1,821 | ) | 3,447 | |||||
Actual tax expense | $ | 934,046 | $ | 1,188,299 | ||||
Tax expense as a percentage of pre-tax income | 23.91 | % | 26.99 | % |
58 |
2014 | 2013 | |||||||
Deferred tax assets | ||||||||
Allowance for loan losses | $ | 1,060,419 | $ | 1,241,702 | ||||
Deferred compensation | 1,712,570 | 1,610,547 | ||||||
State net operating loss carryforward | 4,749 | 186,497 | ||||||
Unrealized losses on available-for-sale securities | — | 714,497 | ||||||
Other | 40,270 | 840 | ||||||
2,818,008 | 3,754,083 | |||||||
Deferred tax liabilities | ||||||||
Unrealized gains on available-for-sale securities | (366,521 | ) | — | |||||
Depreciation | (478,427 | ) | (536,706 | ) | ||||
Federal Home Loan Bank stock dividends | (152,224 | ) | (152,224 | ) | ||||
Prepaid expenses | (79,868 | ) | (90,794 | ) | ||||
Mortgage servicing rights | (254,762 | ) | (271,249 | ) | ||||
(1,331,802 | ) | (1,050,973 | ) | |||||
Net deferred tax asset | $ | 1,486,206 | $ | 2,703,110 |
59 |
Note 10: Accumulated Other Comprehensive Income (Loss) |
2014 | 2013 | ||||||||
Net unrealized gain (loss) on securities available-for-sale | $ | 1,078,004 | $ | (2,101,461 | ) | ||||
Tax effect | (366,521 | ) | 714,497 | ||||||
Net-of-tax amount | $ | 711,483 | $ | (1,386,964 | ) |
Note 11: Changes in Accumulated Other Comprehensive Income (AOCI) by Component |
Amounts Reclassified from AOCI | Affected Line Item in the | ||||||||
2014 | 2013 | Statements of Income | |||||||
Unrealized gains on available-for-sale securities | $ | 408,753 | $ | 897,901 | Realized gain on sale of securities | ||||
Total reclassified amount before tax | |||||||||
(138,976 | ) | (305,286 | ) | Tax expense | |||||
$ | 269,777 | $ | 592,615 | Net reclassified amount |
Note 12: Regulatory Matters |
60 |
Actual | Minimum Capital Requirement | Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 40,252 | 18.81 | % | $ | 17,119 | 8.0 | % | $ | 21,399 | 10.0 | % | ||||||||||||
Tier I capital (to risk-weighted assets) | 37,574 | 17.56 | 8,560 | 4.0 | 12,839 | 6.0 | ||||||||||||||||||
Tier I capital (to average assets) | 37,574 | 12.25 | 12,269 | 4.0 | 15,336 | 5.0 | ||||||||||||||||||
Tangible capital (to adjusted tangible assets) | 37,574 | 12.25 | 4,601 | 1.5 | — | N/A | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 38,766 | 18.15 | % | $ | 17,089 | 8.0 | % | $ | 21,361 | 10.0 | % | ||||||||||||
Tier I capital (to risk-weighted assets) | 36,087 | 16.89 | 8,544 | 4.0 | 12,817 | 6.0 | ||||||||||||||||||
Tier I capital (to average assets) | 36,087 | 11.51 | 12,546 | 4.0 | 15,682 | 5.0 | ||||||||||||||||||
Tangible capital (to adjusted tangible assets) | 36,087 | 11.51 | 4,705 | 1.5 | — | N/A |
61 |
2014 | 2013 | ||||||||
Bank equity | $ | 41,012 | $ | 37,427 | |||||
Less net unrealized gain (loss) | 711 | (1,387 | ) | ||||||
Less disallowed goodwill | 2,727 | 2,727 | |||||||
Tier 1 capital | 37,574 | 36,087 | |||||||
Plus allowance for loan losses | 2,678 | 2,679 | |||||||
Total risked-based capital | $ | 40,252 | $ | 38,766 |
Note 13: Related Party Transactions |
2014 | 2013 | ||||||||
Balance beginning of year | $ | 3,852,658 | $ | 4,052,339 | |||||
Additions | 1,876,445 | 1,156,220 | |||||||
Repayments | (2,206,056 | ) | (1,355,901 | ) | |||||
Balance, end of year | $ | 3,523,047 | $ | 3,852,658 |
62 |
Note 14: Employee Benefits |
63 |
2014 | 2013 | ||||||||
Allocated shares | $ | 54,519 | $ | 55,515 | |||||
Shares committed for allocation | 3,767 | 3,680 | |||||||
Unearned shares | 24,991 | 28,758 | |||||||
Total ESOP shares | 83,277 | 87,953 | |||||||
Fair value of unearned shares at December 31 | $ | 574,793 | $ | 562,219 |
Note 15: Stock Option Plans |
64 |
2014 | ||||||||||||||||
Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
Outstanding, beginning of year | 101,336 | $ | 15.63 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (15,101 | ) | 15.53 | |||||||||||||
Forfeited or expired | (400 | ) | 15.65 | |||||||||||||
Outstanding, end of year | 85,835 | $ | 15.65 | 7.25 | $ | 630,887 | ||||||||||
Exercisable, end of year | 23,600 | $ | 15.65 | 7.25 | $ | 173,460 |
65 |
2013 | ||||||||||||||||
Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
Outstanding, beginning of year | 107,338 | $ | 15.60 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (6,002 | ) | 15.04 | |||||||||||||
Forfeited or expired | — | — | ||||||||||||||
Outstanding, end of year | 101,336 | $ | 15.63 | 8.17 | $ | 397,049 | ||||||||||
Exercisable, end of year | 18,151 | $ | 15.55 | 7.78 | $ | 72,628 |
December 31, 2014 | ||||||||
Shares | Weighted- Average Grant- Date Fair Value | |||||||
Nonvested, beginning of year | 83,185 | $ | 4.34 | |||||
Granted | — | — | ||||||
Vested | (20,550 | ) | 4.34 | |||||
Forfeited | (400 | ) | — | |||||
Nonvested, end of year | 62,235 | $ | 4.34 |
66 |
December 31, 2013 | ||||||||
Shares | Weighted- Average Grant- Date Fair Value | |||||||
Nonvested, beginning of year | 104,035 | $ | 4.34 | |||||
Granted | — | — | ||||||
Vested | (20,850 | ) | 4.34 | |||||
Forfeited | — | — | ||||||
Nonvested, end of year | 83,185 | $ | 4.34 |
Note 16: Earnings Per Share |
Year Ended December 31, 2014 | ||||||||||||
Income | Weighted- Average Shares | Per Share Amount | ||||||||||
Net income | $ | 2,972,754 | ||||||||||
Basic earnings per share | ||||||||||||
Income available to common stockholders | 1,791,888 | $ | 1.66 | |||||||||
Effect of dilutive securities | ||||||||||||
Stock options | 11,173 | |||||||||||
Diluted earnings per share | ||||||||||||
Income available to common stockholders | $ | 2,972,754 | 1,803,061 | $ | 1.65 |
67 |
Year Ended December 31, 2013 | ||||||||||||
Income | Weighted- Average Shares | Per Share Amount | ||||||||||
Net income | $ | 3,213,645 | ||||||||||
Basic earnings per share | ||||||||||||
Income available to common stockholders | 1,853,240 | $ | 1.73 | |||||||||
Effect of dilutive securities | ||||||||||||
Stock options | 296 | |||||||||||
Diluted earnings per share | ||||||||||||
Income available to common stockholders | $ | 3,213,645 | 1,853,536 | $ | 1.73 |
Note 17: Disclosures about Fair Value of Assets |
Level 1 | Quoted prices in active markets for identical assets |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets |
68 |
December 31, 2014 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
U.S. Government agencies | $ | 9,958,273 | $ | — | $ | 9,958,273 | $ | — | ||||||||
Mortgage-backed securities (Government-sponsored enterprises - residential) | 41,419,921 | — | 41,419,921 | — | ||||||||||||
Municipal bonds | 45,306,703 | — | 45,306,703 | — |
December 31, 2013 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
U.S. Government agencies | $ | 10,420,076 | $ | — | $ | 10,420,076 | $ | — | ||||||||
Mortgage-backed securities (Government-sponsored enterprises - residential) | 48,345,655 | — | 48,345,655 | — | ||||||||||||
Municipal bonds | 50,218,866 | — | 50,218,866 | — |
69 |
December 31, 2014 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Impaired loans (collateral dependent) | $ | 1,147,400 | $ | — | $ | — | $ | 1,147,400 |
70 |
December 31, 2013 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Impaired loans (collateral dependent) | $ | 1,219,185 | $ | — | $ | — | $ | 1,219,185 | ||||||||
Mortgage servicing rights | 673,576 | — | — | 673,576 |
71 |
Fair Value at December 31, 2014 | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||
Collateral-dependent impaired loans | $ | 1,147,400 | Market comparable properties | Marketability discount | 20% – 30% (25 | %) |
Fair Value at December 31, 2013 | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||
Collateral-dependent impaired loans | $ | 1,219,185 | Market comparable properties | Marketability discount | 20% – 30% (25 | %) | |||||
Mortgage servicing rights | $ | 673,576 | Discounted cash flow | Discount rate PSA standard prepayment model rate | 8% - 12.5% (10.24%) 144 – 342 (164 | ) |
72 |
December 31, 2014 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Financial assets | ||||||||||||||||
Cash and cash equivalents | $ | 9,611,638 | $ | 9,611,638 | $ | — | $ | — | ||||||||
Other investments | 73,766 | — | 73,766 | — | ||||||||||||
Loans held for sale | 235,600 | — | 235,600 | — | ||||||||||||
Loans, net of allowance for loan losses | 184,718,612 | — | — | 184,573,401 | ||||||||||||
Federal Home Loan Bank stock | 1,113,800 | — | 1,113,800 | — | ||||||||||||
Interest receivable | 1,713,243 | — | 1,713,243 | — | ||||||||||||
Financial liabilities | ||||||||||||||||
Deposits | 245,941,562 | — | 151,341,999 | 96,956,400 | ||||||||||||
Short-term borrowings | 13,821,730 | — | 8,821,730 | 4,996,109 | ||||||||||||
Advances from borrowers for taxes and insurance | 962,762 | — | 962,762 | — | ||||||||||||
Interest payable | 166,052 | — | 166,052 | — | ||||||||||||
Unrecognized financial instruments (net of contract amount) | ||||||||||||||||
Commitments to originate loans | — | — | — | — | ||||||||||||
Letters of credit | — | — | — | — | ||||||||||||
Lines of credit | — | — | — | — |
73 |
December 31, 2013 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Financial assets | ||||||||||||||||
Cash and cash equivalents | $ | 6,098,870 | $ | 6,098,870 | $ | — | $ | — | ||||||||
Other investments | 81,918 | — | 81,918 | — | ||||||||||||
Loans held for sale | 262,461 | — | 262,461 | — | ||||||||||||
Loans, net of allowance for loan losses | 180,639,502 | — | — | 178,866,833 | ||||||||||||
Federal Home Loan Bank stock | 1,113,800 | — | 1,113,800 | — | ||||||||||||
Interest receivable | 1,817,415 | — | 1,817,415 | — | ||||||||||||
Financial liabilities | ||||||||||||||||
Deposits | 251,738,391 | — | 143,586,822 | 111,116,837 | ||||||||||||
Short-term borrowings | 19,610,297 | — | 19,610,297 | — | ||||||||||||
Advances from borrowers for taxes and insurance | 857,814 | — | 857,814 | — | ||||||||||||
Interest payable | 210,226 | — | 210,226 | — | ||||||||||||
Unrecognized financial instruments (net of contract amount) | ||||||||||||||||
Commitments to originate loans | — | — | — | — | ||||||||||||
Letters of credit | — | — | — | — | ||||||||||||
Lines of credit | — | — | — | — |
74 |
75 |
Note 18: Significant Estimates and Concentrations |
Note 19: Commitments and Credit Risk |
76 |
77 |
Note 20: Quarterly Results of Operations (Unaudited) |
Year Ended December 31, 2014 | ||||||||||||||||
Three Months Ended | ||||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||||
Interest income | $ | 2,921,442 | $ | 2,946,212 | $ | 2,978,484 | $ | 3,045,770 | ||||||||
Interest expense | 337,222 | 353,542 | 371,036 | 389,658 | ||||||||||||
Net interest income | 2,584,220 | 2,592,670 | 2,607,448 | 2,656,112 | ||||||||||||
Provision for loan losses | 150,000 | 30,000 | 30,000 | 30,000 | ||||||||||||
Net interest income after provision for loan losses | 2,434,220 | 2,562,670 | 2,577,448 | 2,626,112 | ||||||||||||
Noninterest income | 949,801 | 1,024,088 | 947,678 | 997,532 | ||||||||||||
Noninterest expense | 2,548,408 | 2,470,123 | 2,723,872 | 2,470,346 | ||||||||||||
Income before income taxes | 835,613 | 1,116,635 | 801,254 | 1,153,298 | ||||||||||||
Income tax expense | 183,641 | 260,619 | 176,277 | 313,509 | ||||||||||||
Net income | $ | 651,972 | $ | 856,016 | $ | 624,977 | $ | 839,789 | ||||||||
Basic earnings per share | $ | 0.37 | $ | 0.48 | $ | 0.35 | $ | 0.47 | ||||||||
Diluted earnings per share | $ | 0.36 | $ | 0.47 | $ | 0.35 | $ | 0.47 |
78 |
Year Ended December 31, 2013 | ||||||||||||||||
Three Months Ended | ||||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||||
Interest income | $ | 3,139,867 | $ | 3,061,017 | $ | 2,924,714 | $ | 2,952,167 | ||||||||
Interest expense | 415,265 | 439,617 | 454,298 | 472,091 | ||||||||||||
Net interest income | 2,724,602 | 2,621,400 | 2,470,416 | 2,480,076 | ||||||||||||
Provision for loan losses | 130,000 | 10,000 | — | 30,000 | ||||||||||||
Net interest income after provision for loan losses | 2,594,602 | 2,611,400 | 2,470,416 | 2,450,076 | ||||||||||||
Noninterest income | 918,665 | 1,010,359 | 1,027,808 | 1,486,038 | ||||||||||||
Noninterest expense | 2,650,580 | 2,564,351 | 2,467,610 | 2,484,879 | ||||||||||||
Income before income taxes | 862,687 | 1,057,408 | 1,030,614 | 1,451,235 | ||||||||||||
Income tax expense | 207,234 | 271,739 | 270,539 | 438,787 | ||||||||||||
Net income | $ | 655,453 | $ | 785,669 | $ | 760,075 | $ | 1,012,448 | ||||||||
Basic earnings per share | $ | 0.36 | $ | 0.43 | $ | 0.41 | $ | 0.54 | ||||||||
Diluted earnings per share | $ | 0.36 | $ | 0.42 | $ | 0.41 | $ | 0.54 |
79 |
Note 21: Condensed Financial Information (Parent Company Only) |
December 31, | ||||||||
2014 | 2013 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 3,847,179 | $ | 3,479,895 | ||||
Investment in common stock of subsidiary | 41,012,112 | 37,426,345 | ||||||
Loan receivable from subsidiary | 254,385 | 291,037 | ||||||
Other assets | 96,993 | 130,137 | ||||||
Total assets | $ | 45,210,669 | $ | 41,327,414 | ||||
Liabilities | ||||||||
Other liabilities | $ | 194,571 | $ | 188,618 | ||||
Stockholders’ Equity | 45,016,098 | 41,138,796 | ||||||
Total liabilities and stockholders’ equity | $ | 45,210,669 | $ | 41,327,414 |
80 |
Year Ending December 31, | ||||||||
2014 | 2013 | |||||||
Income | ||||||||
Dividends from subsidiary | $ | 2,000,000 | $ | 1,500,000 | ||||
Other income | 12,245 | 14,177 | ||||||
Total income | 2,012,245 | 1,514,177 | ||||||
Expenses | ||||||||
Other expenses | 707,692 | 465,624 | ||||||
Income Before Income Tax and Equity in Undistributed Income of Subsidiary | 1,304,553 | 1,048,553 | ||||||
Income Tax Benefit | (271,357 | ) | (182,847 | ) | ||||
Income Before Equity in Undistributed Income of Subsidiary | 1,575,910 | 1,231,400 | ||||||
Equity in Undistributed Income of Subsidiary | 1,396,844 | 1,982,245 | ||||||
Net Income | $ | 2,972,754 | $ | 3,213,645 | ||||
Comprehensive Income (Loss) | $ | 5,071,201 | $ | (1,069,912 | ) |
81 |
Year Ending December 31, | ||||||||
2014 | 2013 | |||||||
Operating Activities | ||||||||
Net income | $ | 2,972,754 | $ | 3,213,645 | ||||
Items not providing cash, net | (1,396,844 | ) | (1,982,245 | ) | ||||
Stock-based compensation expense | 90,163 | 90,162 | ||||||
Change in other assets and liabilities, net | 29,599 | 112,013 | ||||||
Net cash provided by operating activities | 1,695,672 | 1,433,575 | ||||||
Investing Activity | ||||||||
Loan payment from subsidiary | 36,652 | 35,527 | ||||||
Net cash provided by investing activities | 36,652 | 35,527 | ||||||
Financing Activities | ||||||||
Dividends paid | (570,843 | ) | (565,526 | ) | ||||
Stock repurchase | (1,028,688 | ) | (1,596,959 | ) | ||||
Exercise of stock options | 234,491 | 90,254 | ||||||
Net cash used in financing activities | (1,365,040 | ) | (2,072,231 | ) | ||||
Net Change in Cash and Cash Equivalents | 367,284 | (603,129 | ) | |||||
Cash and Cash Equivalents at Beginning of Year | 3,479,895 | 4,083,024 | ||||||
Cash and Cash Equivalents at End of Year | $ | 3,847,179 | $ | 3,479,895 |
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Price Per Share | Cash | |||||||||||
High | Low | Dividend Declared | ||||||||||
2014 | ||||||||||||
Fourth quarter | $ | 24.00 | $ | 21.75 | $ | 0.080 | ||||||
Third quarter | 23.90 | 21.14 | 0.080 | |||||||||
Second quarter | 22.95 | 20.00 | 0.080 | |||||||||
First quarter | 21.90 | 19.40 | 0.080 | |||||||||
2013 | ||||||||||||
Fourth quarter | $ | 19.78 | $ | 19.28 | $ | 0.080 | ||||||
Third quarter | 19.99 | 19.00 | 0.075 | |||||||||
Second quarter | 19.80 | 18.75 | 0.075 | |||||||||
First quarter | 19.80 | 17.25 | 0.075 |
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Directors | Executive Officers |
Andrew F. Applebee Chairman of the Board | Andrew F. Applebee Chairman of the Board |
Richard A. Foss President and Chief Executive Officer | Richard A. Foss President and Chief Executive Officer |
John C. Williams Senior Vice President and Trust Officer | John C. Williams Senior Vice President and Trust Officer |
John M. Buchanan Certified Funeral Service Practitioner Buchanan & Cody Funeral Home and Crematory, Inc. | John D. Eilering Vice President – Operations / Corporate Secretary |
Peggy S. Davidsmeyer Administrator Knollwood Retirement Village | Laura A. Marks Senior Vice President – Retail Banking |
Harmon B. Deal, III Investment Advisor L.A. Burton & Associates | Chris A. Royal Senior Vice President and Chief Lending Officer |
John L. Eyth Certified Public Accountant Zumbahlen Eyth Surratt Foote & Flynn, Ltd. | Diana S. Tone Chief Financial Officer |
Dean H. Hess Self-employed farmer |
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Corporate Headquarters | Transfer Agent |
1211 West Morton | Hickory Point Bank & Trust, fsb |
Jacksonville, Illinois 62650 | P.O. Box 2557 |
(217) 245-4111 | Decatur, Illinois 62525-2557 |
Website: www.jacksonvillesavings.com | (217) 872-6373 |
E-mail: info@jacksonvillesavings.com | |
Special Counsel | Independent Registered Public Accounting Firm |
Luse Gorman, P.C. | BKD, LLP |
5335 Wisconsin Ave., N.W., Suite 780 | 225 North Water Street, Suite 400 |
Washington, D.C. 20015 | Decatur, Illinois 62525-1580 |
(202) 274-2000 | (217) 429-2411 |
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