x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended: June 30, 2013 | |
or | |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from ______ to ______ |
MALVERN BANCORP, INC. |
(Exact name of Registrant as specified in its charter) |
Pennsylvania | 45-5307782 | |
(State or Other Jurisdiction of | (I.R.S. Employer | |
Incorporation or Organization) | Identification Number) | |
42 E. Lancaster Avenue, Paoli, Pennsylvania | 19301 | |
(Address of Principal Executive Offices) | (Zip Code) |
(610) 644-9400 | ||
(Registrant’s Telephone Number, Including Area Code) |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | x |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES o NO x |
Page | ||||||
PART I—FINANCIAL INFORMATION | ||||||
Item 1. | Financial Statements | |||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
46 | ||||||
60 | ||||||
60 | ||||||
60 | ||||||
60 | ||||||
60 | ||||||
60 | ||||||
60 | ||||||
61 | ||||||
61 | ||||||
62 |
Malvern Bancorp, Inc. and Subsidiaries |
June 30, 2013 | September 30, 2012 | |||||||
(Dollars in thousands, except per share data) | ||||||||
Assets | ||||||||
Cash and due from depository institutions | $ | 1,275 | $ | 1,413 | ||||
Interest bearing deposits in depository institutions | 66,108 | 130,497 | ||||||
Cash and Cash Equivalents | 67,383 | 131,910 | ||||||
Investment securities available for sale, at fair value | 125,451 | 80,508 | ||||||
Restricted stock, at cost | 3,718 | 4,147 | ||||||
Loans receivable, net of allowance for loan losses of $6,060 and $7,581, respectively | 423,943 | 457,001 | ||||||
Other real estate owned | 5,134 | 4,594 | ||||||
Accrued interest receivable | 1,501 | 1,521 | ||||||
Property and equipment, net | 7,380 | 7,675 | ||||||
Deferred income taxes, net | 8,791 | 6,775 | ||||||
Bank-owned life insurance | 21,196 | 15,286 | ||||||
Other assets | 1,410 | 2,395 | ||||||
Total Assets | $ | 665,907 | $ | 711,812 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Deposits-noninterest-bearing | $ | 21,895 | $ | 23,062 | ||||
Deposits-interest-bearing | 495,243 | 517,926 | ||||||
Total Deposits | 517,138 | 540,988 | ||||||
FHLB advances | 48,000 | 48,085 | ||||||
Advances from borrowers for taxes and insurance | 3,571 | 1,006 | ||||||
Accrued interest payable | 269 | 266 | ||||||
Stock subscription escrow | - | 56,677 | ||||||
Other liabilities | 2,380 | 2,154 | ||||||
Total Liabilities | 571,358 | 649,176 | ||||||
Commitments and Contingencies | - | - | ||||||
Shareholders’ Equity | ||||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued | - | - | ||||||
Common stock, $0.01 par value, 40,000,000 shares authorized, issued and outstanding: 6,558,473 and 6,102,500, respectively | 66 | 62 | ||||||
Additional paid-in capital | 60,296 | 25,846 | ||||||
Retained earnings | 38,563 | 38,596 | ||||||
Treasury stock—at cost, 2013, 0 shares; 2012, 50,000 shares | - | (477 | ) | |||||
Unearned Employee Stock Ownership Plan (ESOP) shares | (2,103 | ) | (2,032 | ) | ||||
Accumulated other comprehensive (loss) income | (2,273 | ) | 641 | |||||
Total Shareholders’ Equity | 94,549 | 62,636 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 665,907 | $ | 711,812 |
Malvern Bancorp, Inc. and Subsidiaries |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
Interest and Dividend Income | ||||||||||||||||
Loans, including fees | $ | 4,931 | $ | 5,894 | $ | 15,465 | $ | 18,352 | ||||||||
Investment securities, taxable | 504 | 387 | 1,199 | 1,246 | ||||||||||||
Investment securities, tax-exempt | 57 | 23 | 166 | 33 | ||||||||||||
Dividends, restricted stock | 2 | 1 | 10 | 2 | ||||||||||||
Interest-bearing cash accounts | 34 | 16 | 101 | 34 | ||||||||||||
Total Interest and Dividend Income | 5,528 | 6,321 | 16,941 | 19,667 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 1,200 | 1,589 | 4,134 | 5,131 | ||||||||||||
Long-term borrowings | 426 | 427 | 1,277 | 1,289 | ||||||||||||
Total Interest Expense | 1,626 | 2,016 | 5,411 | 6,420 | ||||||||||||
Net Interest Income | 3,902 | 4,305 | 11,530 | 13,247 | ||||||||||||
(Recovery) Provision for Loan Losses | (190 | ) | 335 | 1,255 | 360 | |||||||||||
Net Interest Income after (Recovery) Provision for Loan Losses | 4,092 | 3,970 | 10,275 | 12,887 | ||||||||||||
Other Income | ||||||||||||||||
Service charges and other fees | 244 | 218 | 783 | 686 | ||||||||||||
Rental income – other | 62 | 59 | 188 | 192 | ||||||||||||
Gain on sale of investments, net | 293 | 40 | 503 | 663 | ||||||||||||
Loss on disposal of fixed assets | (1 | ) | - | (1 | ) | - | ||||||||||
Loss on sale of loans, net | (314 | ) | - | (128 | ) | - | ||||||||||
Earnings on bank-owned life insurance | 160 | 134 | 1,030 | 400 | ||||||||||||
Total Other Income | 444 | 451 | 2,375 | 1,941 | ||||||||||||
Other Expense | ||||||||||||||||
Salaries and employee benefits | 1,900 | 1,689 | 5,695 | 5,001 | ||||||||||||
Occupancy expense | 516 | 520 | 1,527 | 1,568 | ||||||||||||
Federal deposit insurance premium | 211 | 204 | 648 | 657 | ||||||||||||
Advertising | 158 | 159 | 620 | 581 | ||||||||||||
Data processing | 321 | 319 | 953 | 939 | ||||||||||||
Professional fees | 456 | 279 | 1,271 | 1,193 | ||||||||||||
Other real estate owned expense, net | 364 | 495 | 1,009 | 1,130 | ||||||||||||
Other operating expenses | 510 | 452 | 1,598 | 1,397 | ||||||||||||
Total Other Expenses | 4,436 | 4,117 | 13,321 | 12,466 | ||||||||||||
Income (Loss) before income tax expense (benefit) | 100 | 304 | (671 | ) | 2,362 | |||||||||||
Income tax (benefit) expense | (41 | ) | 32 | (638 | ) | 620 | ||||||||||
Net Income (Loss) | $ | 141 | $ | 272 | $ | (33 | ) | $ | 1,742 | |||||||
Basic Earnings (Loss) Per Share* | $ | 0.02 | $ | 0.04 | $ | (0.01 | ) | $ | 0.27 | |||||||
Dividends Declared Per Share | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 |
See notes to unaudited consolidated financial statements. |
3 |
Malvern Bancorp, Inc. and Subsidiaries |
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Net Income (Loss) | $ | 141 | $ | 272 | $ | (33 | ) | $ | 1,742 | |||||||
Other Comprehensive (Loss) Income: | ||||||||||||||||
Changes in unrealized net-gains and losses on securities available for sale | (3,598 | ) | 43 | (3,912 | ) | 823 | ||||||||||
Gains realized in net income(loss)(1) | (293 | ) | (40 | ) | (503 | ) | (663 | ) | ||||||||
(3,891 | ) | 3 | (4,415 | ) | 160 | |||||||||||
Deferred income tax effect | 1,323 | (1 | ) | 1,501 | (54 | ) | ||||||||||
Total other comprehensive (loss) income | (2,568 | ) | 2 | (2,914 | ) | 106 | ||||||||||
Total comprehensive (loss) income | $ | (2,427 | ) | $ | 274 | $ | (2,947 | ) | $ | 1,848 |
See notes to unaudited consolidated financial statements. |
4 |
Malvern Bancorp, Inc. and Subsidiaries |
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Unearned ESOP Shares | Accumulated Other Comprehensive (Loss) Income | Total Shareholders’ Equity | ||||||||||||||||||||||
(Dollars in thousands, except share and per share data) | ||||||||||||||||||||||||||||
Balance, October 1, 2011 | $ | 62 | $ | 25,889 | $ | 36,637 | $ | (477 | ) | $ | (2,178 | ) | $ | 351 | $ | 60,284 | ||||||||||||
Net Income | - | - | 1,742 | - | - | - | 1,742 | |||||||||||||||||||||
Other comprehensive income | - | - | - | - | - | 106 | 106 | |||||||||||||||||||||
Committed to be released ESOP shares (10,053 shares) | - | (37 | ) | - | - | 109 | - | 72 | ||||||||||||||||||||
Balance, June 30, 2012 | $ | 62 | $ | 25,852 | $ | 38,379 | $ | (477 | ) | $ | (2,069 | ) | $ | 457 | $ | 62,204 | ||||||||||||
Balance, October 1, 2012 | $ | 62 | $ | 25,846 | $ | 38,596 | $ | (477 | ) | $ | (2,032 | ) | $ | 641 | $ | 62,636 | ||||||||||||
Net Loss | - | - | (33 | ) | - | - | - | (33 | ) | |||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (2,914 | ) | (2,914 | ) | |||||||||||||||||||
Cancellation of common stock | (62 | ) | 62 | - | - | - | - | - | ||||||||||||||||||||
Cancellation of treasury stock | - | (477 | ) | - | 477 | - | - | - | ||||||||||||||||||||
Additional ESOP shares converted at exchange rate of 1.0748 (18,040 shares at $10/share) | - | 180 | - | - | (180 | ) | - | - | ||||||||||||||||||||
Dissolution of mutual holding company | - | 100 | - | - | - | - | 100 | |||||||||||||||||||||
Proceeds from issuance of common stock, net of offering expenses of $1.6 million | 66 | 34,567 | - | - | - | - | 34,633 | |||||||||||||||||||||
Committed to be released ESOP shares (10,771 shares) | - | 18 | - | - | 109 | - | 127 | |||||||||||||||||||||
Balance, June 30, 2013 | $ | 66 | $ | 60,296 | $ | 38,563 | $ | - | $ | (2,103 | ) | $ | (2,273 | ) | $ | 94,549 |
See notes to unaudited consolidated financial statements. |
5 |
Malvern Bancorp, Inc. and Subsidiaries |
Consolidated Statements of Cash Flows (Unaudited) |
Nine Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
Cash Flows from Operating Activities | ||||||||
Net (loss) income | $ | (33 | ) | $ | 1,742 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation expense | 523 | 547 | ||||||
Provision for loan losses | 1,255 | 360 | ||||||
Deferred income taxes (benefit) expense | (515 | ) | 596 | |||||
ESOP expense | 127 | 72 | ||||||
Accretion of premiums and discounts on investment securities, net | (257 | ) | (162 | ) | ||||
(Accretion) amortization of mortgage servicing rights | (7 | ) | 61 | |||||
Net gain on sale of investment securities available for sale | (503 | ) | (499 | ) | ||||
Net gain on sale of investment securities held to maturity | - | (164 | ) | |||||
Net loss on disposal of fixed assets | 1 | - | ||||||
Net loss on sale of loans | 128 | - | ||||||
Proceeds on sale of secondary market loans | 23,277 | - | ||||||
(Gain) loss on sale of other real estate owned | (110 | ) | 70 | |||||
Write down of other real estate owned | 966 | 812 | ||||||
Amortization of loan origination fees and costs | (534 | ) | (848 | ) | ||||
Decrease in accrued interest receivable | 20 | 349 | ||||||
Increase in accrued interest payable | 3 | 11 | ||||||
(Decrease) increase in other liabilities | (981 | ) | 70 | |||||
Earnings on bank-owned life insurance | (1,030 | ) | (400 | ) | ||||
Decrease (increase) in other assets | 735 | (357 | ) | |||||
Decrease in prepaid FDIC assessment | 391 | 626 | ||||||
Net Cash Provided by Operating Activities | 23,456 | 2,886 | ||||||
Cash Flows from Investing Activities | ||||||||
Proceeds from maturities and principal collections: | ||||||||
Investment securities held to maturity | - | 292 | ||||||
Investment securities available for sale | 22,344 | 22,890 | ||||||
Proceeds from sales of investment securities held to maturity | - | 2,996 | ||||||
Proceeds from sales of investment securities available for sale | 16,031 | 22,854 | ||||||
Purchases of investment securities available for sale | (76,871 | ) | (44,664 | ) | ||||
Proceeds from sale of loans | 1,667 | - | ||||||
Loan purchases | (23,315 | ) | (23,061 | ) | ||||
Loan originations and principal collections, net | 17,290 | 52,128 | ||||||
Proceeds from sale of other real estate owned | 1,792 | 4,374 | ||||||
Additions to mortgage servicing rights | (129 | ) | (53 | ) | ||||
Purchases of bank-owned life insurance | (6,000 | ) | - | |||||
Proceeds from death benefit of bank-owned life insurance | 1,121 | - | ||||||
Net decrease in restricted stock | 428 | 763 | ||||||
Proceeds from sale of property and equipment | 2 | - | ||||||
Purchases of property and equipment | (232 | ) | (147 | ) | ||||
Net Cash (Used in) Provided by Investing Activities | (45,872 | ) | 38,372 | |||||
Cash Flows from Financing Activities | ||||||||
Net decrease in deposits | (23,850 | ) | (16,210 | ) | ||||
Repayment of long-term borrowings | (85 | ) | (758 | ) | ||||
Increase in advances from borrowers for taxes and insurance | 2,565 | 2,450 | ||||||
Return of excess stock subscription funds | (20,841 | ) | - | |||||
Cash from mutual holding company reorganization | 100 | - | ||||||
Net Cash Used in Financing Activities | (42,111 | ) | (14,518 | ) | ||||
Net (Decrease) Increase in Cash and Cash Equivalents | (64,527 | ) | 26,740 | |||||
Cash and Cash Equivalents - Beginning | 131,910 | 33,496 | ||||||
Cash and Cash Equivalents – Ending | $ | 67,383 | $ | 60,236 | ||||
Supplementary Cash Flows Information | ||||||||
Interest paid | $ | 5,408 | $ | 6,409 | ||||
Income taxes paid | $ | 12 | $ | - | ||||
Non-cash transfer of loans to other real estate owned | $ | 3,188 | $ | 1,151 | ||||
Non-cash transfer of loans to investment securities available for sale | $ | - | $ | 10,671 | ||||
Transfer of mortgage-backed securities held to maturity to investment and mortgage-backed securities available for sale | $ | 10,102 | $ | 746 | ||||
Subscription funds transferred to equity | $ | 34,633 | $ | - |
See notes to unaudited consolidated financial statements. |
6 |
7 |
8 |
9 |
10 |
1. | Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. | |
2. | National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. | |
3. | The nature and volume of the loan portfolio and terms of loans. | |
4. | The experience, ability, and depth of lending management and staff. | |
5. | The volume and severity of past due, classified and nonaccrual loans as well as loan modifications. | |
6. | The quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. | |
7. | The existence and effect of any concentrations of credit and changes in the level of such concentrations. | |
8. | Value of underlying collateral. |
11 |
12 |
13 |
14 |
15 |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This amendment addresses the financial statement presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.
16 |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net Income (Loss) | $ | 141 | $ | 272 | $ | (33 | ) | $ | 1,742 | |||||||
Average common shares outstanding | 6,558,473 | 6,102,500 | 6,540,100 | 6,102,500 | ||||||||||||
Exchange rate from offering | - | 1.0748 | - | 1.0748 | ||||||||||||
Adjusted weighted average shares outstanding | 6,558,473 | 6,558,967 | 6,540,100 | 6,558,967 | ||||||||||||
Average unearned ESOP shares | (192,147 | ) | (202,175 | ) | (195,056 | ) | (205,798 | ) | ||||||||
Weighted average shares outstanding – basic | 6,366,326 | 6,356,792 | 6,345,044 | 6,353,169 | ||||||||||||
Earnings (Loss) per share – basic | $ | 0.02 | $ | 0.04 | $ | (0.01 | ) | $ | 0.27 |
Note 4 – Employee Stock Ownership Plan |
17 |
Note 5 - Investment Securities |
June 30, 2013 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
U.S. government agencies | $ | 19,787 | $ | 2 | $ | (672 | ) | $ | 19,117 | |||||||
State and municipal obligations | 12,392 | 20 | (470 | ) | 11,942 | |||||||||||
Single issuer trust preferred security | 1,000 | - | (189 | ) | 811 | |||||||||||
Corporate debt securities | 1,756 | 22 | (8 | ) | 1,770 | |||||||||||
34,935 | 44 | (1,339 | ) | 33,640 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
FNMA: | ||||||||||||||||
Adjustable-rate | 1,051 | 58 | - | 1,109 | ||||||||||||
Fixed-rate | 19,344 | 7 | (789 | ) | 18,562 | |||||||||||
FHLMC: | ||||||||||||||||
Adjustable-rate | 209 | 10 | - | 219 | ||||||||||||
Fixed-rate | 13,668 | - | (576 | ) | 13,092 | |||||||||||
CMO, fixed-rate | 59,687 | 207 | (1,065 | ) | 58,829 | |||||||||||
93,959 | 282 | (2,430 | ) | 91,811 | ||||||||||||
$ | 128,894 | $ | 326 | $ | (3,769 | ) | $ | 125,451 |
18 |
Note 5 - Investment Securities (Continued) |
September 30, 2012 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
U.S. government agencies | $ | 23,674 | $ | 247 | $ | - | $ | 23,921 | ||||||||
FHLB notes | 695 | 1 | - | 696 | ||||||||||||
State and municipal obligations | 9,217 | 186 | (16 | ) | 9,387 | |||||||||||
Single issuer trust preferred security | 1,000 | - | (236 | ) | 764 | |||||||||||
Corporate debt securities | 2,006 | 51 | - | 2,057 | ||||||||||||
36,592 | 485 | (252 | ) | 36,825 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
FNMA: | ||||||||||||||||
Adjustable-rate | 1,144 | 71 | - | 1,215 | ||||||||||||
Fixed-rate | 647 | 63 | - | 710 | ||||||||||||
FHLMC, adjustable-rate | 248 | 13 | - | 261 | ||||||||||||
GNMA, fixed-rate | 1 | - | - | 1 | ||||||||||||
CMO, fixed-rate | 40,904 | 600 | (8 | ) | 41,496 | |||||||||||
42,944 | 747 | (8 | ) | 43,683 | ||||||||||||
$ | 79,536 | $ | 1,232 | $ | (260 | ) | $ | 80,508 |
19 |
Note 5 - Investment Securities (Continued) |
June 30, 2013 | ||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Investment Securities Available for Sale: | ||||||||||||||||||||||||
U.S. government obligations and agencies | $ | 18,115 | $ | (672 | ) | $ | - | $ | - | $ | 18,115 | $ | (672 | ) | ||||||||||
State and municipal obligations | 10,751 | (470 | ) | - | - | 10,751 | (470 | ) | ||||||||||||||||
Single issuer trust preferred security | - | - | 811 | (189 | ) | 811 | (189 | ) | ||||||||||||||||
Corporate securities | 996 | (8 | ) | - | - | 996 | (8 | ) | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
FNMA, fixed-rate | 18,451 | (789 | ) | - | - | 18,451 | (789 | ) | ||||||||||||||||
FHLMC, fixed-rate | 13,092 | (576 | ) | - | - | 13,092 | (576 | ) | ||||||||||||||||
CMO, fixed rate | 40,675 | (1,065 | ) | - | - | 40,675 | (1,065 | ) | ||||||||||||||||
$ | 102,080 | $ | (3,580 | ) | $ | 811 | $ | (189 | ) | $ | 102,891 | $ | (3,769 | ) |
September 30, 2012 | ||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Investment Securities Available for Sale: | ||||||||||||||||||||||||
State and municipal obligations | $ | - | $ | - | $ | 18 | $ | (16 | ) | $ | 18 | $ | (16 | ) | ||||||||||
Single issuer trust preferred security | - | - | 764 | (236 | ) | 764 | (236 | ) | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
CMO, fixed-rate | 2,527 | (8 | ) | - | - | 2,527 | (8 | ) | ||||||||||||||||
$ | 2,527 | $ | (8 | ) | $ | 782 | $ | (252 | ) | $ | 3,309 | $ | (260 | ) |
20 |
Note 5 - Investment Securities (Continued) |
Available for Sale | ||||||||
Amortized Cost | Fair Value | |||||||
(In thousands) | ||||||||
Within 1 year | $ | 2,652 | $ | 2,471 | ||||
Over 1 year through 5 years | 3,775 | 3,774 | ||||||
After 5 years through 10 years | 27,039 | 25,986 | ||||||
Over 10 years | 1,469 | 1,409 | ||||||
34,935 | 33,640 | |||||||
Mortgage-backed securities | 93,959 | 91,811 | ||||||
$ | 128,894 | $ | 125,451 |
21 |
June 30, 2013 | September 30, 2012 | |||||||
(In thousands) | ||||||||
Residential mortgage | $ | 237,670 | $ | 231,803 | ||||
Construction and Development: | ||||||||
Residential and commercial | 15,620 | 20,500 | ||||||
Land | 2,990 | 632 | ||||||
Total Construction and Development | 18,610 | 21,132 | ||||||
Commercial: | ||||||||
Commercial real estate | 84,327 | 112,199 | ||||||
Multi-family | 2,111 | 2,087 | ||||||
Other | 6,380 | 7,517 | ||||||
Total Commercial | 92,818 | 121,803 | ||||||
Consumer: | ||||||||
Home equity lines of credit | 20,320 | 20,959 | ||||||
Second mortgages | 56,515 | 65,703 | ||||||
Other | 1,761 | 762 | ||||||
Total Consumer | 78,596 | 87,424 | ||||||
Total loans | 427,694 | 462,162 | ||||||
Deferred loan costs, net | 2,309 | 2,420 | ||||||
Allowance for loan losses | (6,060 | ) | (7,581 | ) | ||||
Total loans receivable, net | $ | 423,943 | $ | 457,001 |
22 |
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Construction and Development | Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage | Residential and Commercial | Land | Commercial Real Estate | Multi-family | Other | Home Equity Lines of Credit | Second Mortgages | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,431 | $ | 723 | $ | 9 | $ | 2,404 | $ | 111 | $ | 79 | $ | 136 | $ | 1,361 | $ | 7 | $ | 41 | $ | 6,302 | ||||||||||||||||||||||
Charge-offs | (35 | ) | (87 | ) | - | (216 | ) | - | - | - | (40 | ) | (2 | ) | - | (380 | ) | |||||||||||||||||||||||||||
Recoveries | 175 | - | - | 113 | - | 1 | 1 | 36 | 2 | - | 328 | |||||||||||||||||||||||||||||||||
Provision (credit) | (134 | ) | 89 | - | (207 | ) | (2 | ) | (5 | ) | (1 | ) | 74 | 10 | (14 | ) | (190 | ) | ||||||||||||||||||||||||||
Ending balance | $ | 1,437 | $ | 725 | $ | 9 | $ | 2,094 | $ | 109 | $ | 75 | $ | 136 | $ | 1,431 | $ | 17 | $ | 27 | $ | 6,060 |
23 |
Nine Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Construction and Development | Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage | Residential and Commercial | Land | Commercial Real Estate | Multi-family | Other | Home Equity Lines of Credit | Second Mortgages | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,487 | $ | 724 | $ | 11 | $ | 3,493 | $ | 10 | $ | 226 | $ | 160 | $ | 1,389 | $ | 16 | $ | 65 | $ | 7,581 | ||||||||||||||||||||||
Charge-offs | (331 | ) | (1,622 | ) | - | (771 | ) | - | - | - | (552 | ) | (7 | ) | - | (3,283 | ) | |||||||||||||||||||||||||||
Recoveries | 187 | - | - | 114 | - | 22 | 3 | 178 | 3 | - | 507 | |||||||||||||||||||||||||||||||||
Provision (credit) | 94 | 1,623 | (2 | ) | (742 | ) | 99 | (173 | ) | (27 | ) | 416 | 5 | (38 | ) | 1,255 | ||||||||||||||||||||||||||||
Ending balance | $ | 1,437 | $ | 725 | $ | 9 | $ | 2,094 | $ | 109 | $ | 75 | $ | 136 | $ | 1,431 | $ | 17 | $ | 27 | $ | 6,060 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | - | $ | - | $ | 66 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 66 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,437 | $ | 725 | $ | 9 | $ | 2,028 | $ | 109 | $ | 75 | $ | 136 | $ | 1,431 | $ | 17 | $ | 27 | $ | 5,994 | ||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 237,670 | $ | 15,620 | $ | 2,990 | $ | 84,327 | $ | 2,111 | $ | 6,380 | $ | 20,320 | $ | 56,515 | $ | 1,761 | $ | 427,694 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 2,394 | $ | 8,395 | $ | - | $ | 5,296 | $ | - | $ | 335 | $ | 20 | $ | 538 | $ | - | $ | 16,978 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 235,276 | $ | 7,225 | $ | 2,990 | $ | 79,031 | $ | 2,111 | $ | 6,045 | $ | 20,300 | $ | 55,977 | $ | 1,761 | $ | 410,716 |
24 |
Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Construction and Development | Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage | Residential and Commercial | Land | Commercial Real Estate | Multi-family | Other | Home Equity Lines of Credit | Second Mortgages | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,310 | $ | 819 | $ | 11 | $ | 3,809 | $ | 37 | $ | 218 | $ | 177 | $ | 1,569 | $ | 17 | $ | 109 | $ | 8,076 | ||||||||||||||||||||||
Charge-offs | (140 | ) | (199 | ) | - | - | - | - | (21 | ) | (110 | ) | - | - | (470 | ) | ||||||||||||||||||||||||||||
Recoveries | - | - | - | - | - | - | 1 | 39 | 2 | - | 42 | |||||||||||||||||||||||||||||||||
Provision | 341 | 7 | - | 18 | - | (4 | ) | 8 | (29 | ) | (4 | ) | (2 | ) | 335 | |||||||||||||||||||||||||||||
Ending Balance | $ | 1,511 | $ | 627 | $ | 11 | $ | 3,827 | $ | 37 | $ | 214 | $ | 165 | $ | 1,469 | $ | 15 | $ | 107 | $ | 7,983 |
25 |
Nine Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Construction and Development | Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage | Residential and Commercial | Land | Commercial Real Estate | Multi-family | Other | Home Equity Lines of Credit | Second Mortgages | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,458 | $ | 1,627 | $ | 49 | $ | 4,176 | $ | 49 | $ | 317 | $ | 220 | $ | 2,154 | $ | 16 | $ | 35 | $ | 10,101 | ||||||||||||||||||||||
Charge-offs | (1,115 | ) | (611 | ) | - | (855 | ) | - | (88 | ) | (72 | ) | (975 | ) | (22 | ) | - | (3,738 | ) | |||||||||||||||||||||||||
Recoveries | - | 1,139 | - | - | - | 2 | 1 | 114 | 4 | - | 1,260 | |||||||||||||||||||||||||||||||||
Provision | 1,168 | (1,528 | ) | (38 | ) | 506 | (12 | ) | (17 | ) | 16 | 176 | 17 | 72 | 360 | |||||||||||||||||||||||||||||
Ending Balance | $ | 1,511 | $ | 627 | $ | 11 | $ | 3,827 | $ | 37 | $ | 214 | $ | 165 | $ | 1,469 | $ | 15 | $ | 107 | $ | 7,983 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 73 | $ | 41 | $ | - | $ | 429 | $ | - | $ | - | $ | - | $ | 55 | $ | - | $ | - | $ | 598 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,438 | $ | 586 | $ | 11 | $ | 3,398 | $ | 37 | $ | 214 | $ | 165 | $ | 1,414 | $ | 15 | $ | 107 | $ | 7,385 | ||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 225,213 | $ | 20,571 | $ | 632 | $ | 119,687 | $ | 5,374 | $ | 8,471 | $ | 21,497 | $ | 68,914 | $ | 757 | $ | 471,116 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 4,553 | $ | 3,777 | $ | - | $ | 6,237 | $ | - | $ | 176 | $ | 23 | $ | 813 | $ | - | $ | 15,579 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 220,660 | $ | 16,794 | $ | 632 | $ | 113,450 | $ | 5,374 | $ | 8,295 | $ | 21,474 | $ | 68,101 | $ | 757 | $ | 455,537 |
26 |
Year Ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Construction and Development | Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage | Residential and Commercial | Land | Commercial Real Estate | Multi-family | Other | Home Equity Lines of Credit | Second Mortgages | Other | Unallocated | Total | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,458 | $ | 1,627 | $ | 49 | $ | 4,176 | $ | 49 | $ | 317 | $ | 220 | $ | 2,154 | $ | 16 | $ | 35 | $ | 10,101 | ||||||||||||||||||||||
Charge-offs | (1,367 | ) | (826 | ) | - | (951 | ) | (113 | ) | (88 | ) | (72 | ) | (1,184 | ) | (22 | ) | - | (4,623 | ) | ||||||||||||||||||||||||
Recoveries | - | 1,139 | - | 5 | - | 2 | 2 | 141 | 4 | - | 1,293 | |||||||||||||||||||||||||||||||||
Provision | 1,396 | (1,216 | ) | (38 | ) | 263 | 74 | (5 | ) | 10 | 278 | 18 | 30 | 810 | ||||||||||||||||||||||||||||||
Ending Balance | $ | 1,487 | $ | 724 | $ | 11 | $ | 3,493 | $ | 10 | $ | 226 | $ | 160 | $ | 1,389 | $ | 16 | $ | 65 | $ | 7,581 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | - | $ | - | $ | 351 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 351 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,487 | $ | 724 | $ | 11 | $ | 3,142 | $ | 10 | $ | 226 | $ | 160 | $ | 1,389 | $ | 16 | $ | 65 | $ | 7,230 | ||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 231,803 | $ | 20,500 | $ | 632 | $ | 112,199 | $ | 2,087 | $ | 7,517 | $ | 20,959 | $ | 65,703 | $ | 762 | $ | 462,162 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 3,971 | $ | 3,788 | $ | - | $ | 4,837 | $ | - | $ | 175 | $ | 23 | $ | 447 | $ | - | $ | 13,241 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 227,832 | $ | 16,712 | $ | 632 | $ | 107,362 | $ | 2,087 | $ | 7,342 | $ | 20,936 | $ | 65,256 | $ | 762 | $ | 448,921 |
27 |
Note 6 - Loans Receivable and Related Allowance for Loan Losses (Continued) |
Impaired Loans With Specific Allowance | Impaired Loans With No Specific Allowance | Total Impaired Loans | ||||||||||||||||||
Recorded Investment | Related Allowance | Recorded Investment | Recorded Investment | Unpaid Principal Balance | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
June 30, 2013: | ||||||||||||||||||||
Residential mortgage | $ | - | $ | - | $ | 2,394 | $ | 2,394 | $ | 2,767 | ||||||||||
Construction and Development: | ||||||||||||||||||||
Residential and commercial | - | - | 8,395 | 8,395 | 10,314 | |||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | 1,074 | 66 | 4,222 | 5,296 | 6,465 | |||||||||||||||
Other | - | - | 335 | 335 | 349 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | - | - | 20 | 20 | 36 | |||||||||||||||
Second mortgages | - | - | 538 | 538 | 780 | |||||||||||||||
Total impaired loans | $ | 1,074 | $ | 66 | $ | 15,904 | $ | 16,978 | $ | 20,711 | ||||||||||
September 30, 2012: | ||||||||||||||||||||
Residential mortgage | $ | - | $ | - | $ | 3,971 | $ | 3,971 | $ | 5,344 | ||||||||||
Construction and Development: | ||||||||||||||||||||
Residential and commercial | - | - | 3,788 | 3,788 | 5,615 | |||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | 2,306 | 351 | 2,531 | 4,837 | 5,300 | |||||||||||||||
Other | - | - | 175 | 175 | 175 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | - | - | 23 | 23 | 37 | |||||||||||||||
Second mortgages | - | - | 447 | 447 | 743 | |||||||||||||||
Total impaired loans | $ | 2,306 | $ | 351 | $ | 10,935 | $ | 13,241 | $ | 17,214 |
28 |
Note 6 - Loans Receivable and Related Allowance for Loan Losses (Continued) |
Three Months Ended June 30, 2013 | Nine Months Ended June 30, 2013 | |||||||||||||||||||||||
Average Impaired Loans | Interest Income Recognized on Impaired Loans | Cash Basis Collection on Impaired Loans | Average Impaired Loans | Interest Income Recognized on Impaired Loans | Cash Basis Collection on Impaired Loans | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential mortgage | $ | 3,131 | $ | 5 | $ | 12 | $ | 3,836 | $ | 34 | $ | 59 | ||||||||||||
Construction and Development: | 59 | |||||||||||||||||||||||
Residential and commercial | 9,295 | 59 | 254 | 5,563 | 551 | |||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | 4,797 | 67 | 404 | 4,842 | 185 | 571 | ||||||||||||||||||
Other | 201 | 2 | 11 | 184 | 6 | 15 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines of credit | 21 | 1 | 1 | 22 | 2 | 3 | ||||||||||||||||||
Second mortgages | 574 | 1 | 1 | 592 | 2 | 5 | ||||||||||||||||||
Total | $ | 18,019 | $ | 135 | $ | 683 | $ | 15,039 | $ | 288 | $ | 1,204 |
Three Months Ended June 30, 2012 | Nine Months Ended June 30, 2012 | |||||||||||||||||||||||
Average Impaired Loans | Interest Income Recognized on Impaired Loans | Cash Basis Collection on Impaired Loans | Average Impaired Loans | Interest Income Recognized on Impaired Loans | Cash Basis Collection on Impaired Loans | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential mortgage | $ | 4,087 | $ | 22 | $ | 46 | $ | 2,530 | $ | 82 | $ | 143 | ||||||||||||
Construction and Development: | ||||||||||||||||||||||||
Residential and commercial | 3,304 | 13 | 568 | 3,299 | 49 | 820 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | 6,156 | 69 | 97 | 6,662 | 222 | 281 | ||||||||||||||||||
Other | 176 | 2 | 2 | 181 | 5 | 5 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines of credit | 23 | - | - | 27 | - | - | ||||||||||||||||||
Second mortgages | 767 | 1 | 3 | 637 | 10 | 16 | ||||||||||||||||||
Other | - | - | - | 2 | - | - | ||||||||||||||||||
Total | $ | 14,513 | $ | 107 | $ | 716 | $ | 13,338 | $ | 368 | $ | 1,265 |
29 |
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
June 30, 2013: | ||||||||||||||||||||
Residential mortgage | $ | 234,853 | $ | 145 | $ | 2,672 | $ | - | $ | 237,670 | ||||||||||
Construction and Development: | ||||||||||||||||||||
Residential and commercial | 5,024 | 760 | 9,836 | - | 15,620 | |||||||||||||||
Land | 2,653 | 337 | - | - | 2,990 | |||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | 70,063 | 3,778 | 10,420 | 66 | 84,327 | |||||||||||||||
Multi-family | 2,111 | - | - | - | 2,111 | |||||||||||||||
Other | 4,826 | 1,214 | 340 | - | 6,380 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 20,300 | - | 20 | - | 20,320 | |||||||||||||||
Second mortgages | 55,583 | 125 | 807 | - | 56,515 | |||||||||||||||
Other | 1,737 | 23 | 1 | - | 1,761 | |||||||||||||||
Total | $ | 397,150 | $ | 6,382 | $ | 24,096 | $ | 66 | $ | 427,694 | ||||||||||
September 30, 2012: | ||||||||||||||||||||
Residential mortgage | $ | 227,651 | $ | 149 | $ | 4,003 | $ | - | $ | 231,803 | ||||||||||
Construction and Development: | ||||||||||||||||||||
Residential and commercial | 6,920 | 1,497 | 12,083 | - | 20,500 | |||||||||||||||
Land | - | 632 | - | - | 632 | |||||||||||||||
Commercial: | ||||||||||||||||||||
Commercial real estate | 89,646 | 4,441 | 17,761 | 351 | 112,199 | |||||||||||||||
Multi-family | 2,087 | - | - | - | 2,087 | |||||||||||||||
Other | 5,849 | 900 | 768 | - | 7,517 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 20,936 | - | 23 | - | 20,959 | |||||||||||||||
Second mortgages | 64,672 | 38 | 993 | - | 65,703 | |||||||||||||||
Other | 761 | - | 1 | - | 762 | |||||||||||||||
Total | $ | 418,522 | $ | 7,657 | $ | 35,632 | $ | 351 | $ | 462,162 |
30 |
June 30, 2013 | September 30, 2012 | |||||||
(In thousands) | ||||||||
Non-accrual loans: | ||||||||
Residential mortgage | $ | 2,360 | $ | 3,540 | ||||
Construction and Development: | ||||||||
Residential and commercial | 8,395 | 3,788 | ||||||
Commercial: | ||||||||
Commercial real estate | 2,907 | 1,458 | ||||||
Other | 163 | 201 | ||||||
Consumer: | ||||||||
Home equity lines of credit | 20 | 23 | ||||||
Second mortgages | 713 | 739 | ||||||
Total non-accrual loans | $ | 14,558 | $ | 9,749 |
31 |
Current | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days Past Due | Total Past Due | Total Loans Receivable | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
June 30, 2013: | ||||||||||||||||||||||||
Residential mortgage | $ | 233,466 | $ | 1,670 | $ | 174 | $ | 2,360 | $ | 4,204 | $ | 237,670 | ||||||||||||
Construction and Development: | ||||||||||||||||||||||||
Residential and commercial | 7,225 | - | - | 8,395 | 8,395 | 15,620 | ||||||||||||||||||
Land | 2,990 | - | - | - | - | 2,990 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | 80,022 | 1,398 | - | 2,907 | 4,305 | 84,327 | ||||||||||||||||||
Multi-family | 2,111 | - | - | - | - | 2,111 | ||||||||||||||||||
Other | 6,217 | - | - | 163 | 163 | 6,380 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines of credit | 20,228 | 58 | 14 | 20 | 92 | 20,320 | ||||||||||||||||||
Second mortgages | 55,013 | 555 | 234 | 713 | 1,502 | 56,515 | ||||||||||||||||||
Other | 1,752 | 2 | 7 | - | 9 | 1,761 | ||||||||||||||||||
Total | $ | 409,024 | $ | 3,683 | $ | 429 | $ | 14,558 | $ | 18,670 | $ | 427,694 | ||||||||||||
September 30, 2012: | ||||||||||||||||||||||||
Residential mortgage | $ | 226,861 | $ | 1,020 | $ | 382 | $ | 3,540 | $ | 4,942 | $ | 231,803 | ||||||||||||
Construction and Development: | ||||||||||||||||||||||||
Residential and commercial | 16,712 | - | - | 3,788 | 3,788 | 20,500 | ||||||||||||||||||
Land | 632 | - | - | - | - | 632 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial real estate | 108,963 | - | 1,778 | 1,458 | 3,236 | 112,199 | ||||||||||||||||||
Multi-family | 2,087 | - | - | - | - | 2,087 | ||||||||||||||||||
Other | 7,316 | - | - | 201 | 201 | 7,517 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines of credit | 20,716 | - | 220 | 23 | 243 | 20,959 | ||||||||||||||||||
Second mortgages | 63,824 | 854 | 286 | 739 | 1,879 | 65,703 | ||||||||||||||||||
Other | 758 | - | 4 | - | 4 | 762 | ||||||||||||||||||
Total | $ | 447,869 | $ | 1,874 | $ | 2,670 | $ | 9,749 | $ | 14,293 | $ | 462,162 |
32 |
33 |
Total Troubled Debt Restructurings | Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months | |||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At June 30, 2013: | ||||||||||||||||
Residential mortgage | 4 | $ | 540 | - | $ | - | ||||||||||
Construction & Development: | ||||||||||||||||
Residential and commercial | 6 | 8,395 | 6 | 8,395 | ||||||||||||
Commercial: | ||||||||||||||||
Commercial real estate | 5 | 4,721 | 2 | 1,966 | ||||||||||||
Other | 1 | 173 | - | - | ||||||||||||
Total | 16 | $ | 13,829 | 8 | $ | 10,361 | ||||||||||
At September 30, 2012: | ||||||||||||||||
Residential mortgage | 4 | $ | 864 | - | $ | - | ||||||||||
Construction & Development: | ||||||||||||||||
Residential and commercial | 2 | 1,426 | 2 | 1,426 | ||||||||||||
Land Loan | 2 | 1,148 | - | - | ||||||||||||
Commercial: | ||||||||||||||||
Commercial real estate | 6 | 6,000 | - | - | ||||||||||||
Other | 1 | 175 | - | - | ||||||||||||
Total | 15 | $ | 9,613 | 2 | $ | 1,426 |
June 30, 2013 | September 30, 2012 | |||||||||||||||
Performing | Non-Performing | Performing | Non-Performing | |||||||||||||
(In thousands) | ||||||||||||||||
Residential mortgage | $ | 540 | $ | - | $ | 864 | $ | - | ||||||||
Construction and Development: | ||||||||||||||||
Residential and commercial | - | 8,395 | - | 1,426 | ||||||||||||
Land loan | - | - | 1,148 | - | ||||||||||||
Commercial: | ||||||||||||||||
Commercial real estate | 2,755 | 1,966 | 6,000 | - | ||||||||||||
Other | 173 | - | 175 | - | ||||||||||||
Total | $ | 3,468 | $ | 10,361 | $ | 8,187 | $ | 1,426 |
34 |
For the Three Months Ended June 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Restructured During Period | ||||||||||||||||||||||||
Number of Loans | Pre- Modifications Outstanding Recorded Investments | Post- Modifications Outstanding Recorded Investments | Number of Loans | Pre- Modifications Outstanding Recorded Investments | Post- Modifications Outstanding Recorded Investments | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Construction and Development: | ||||||||||||||||||||||||
Residential and commercial | 1 | $ | 1,074 | $ | 1,074 | - | $ | - | $ | - | ||||||||||||||
Total troubled debt restructurings | 1 | $ | 1,074 | $ | 1,074 | - | $ | - | $ | - |
For the Nine Months Ended June 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Restructured During Period | ||||||||||||||||||||||||
Number of Loans | Pre- Modifications Outstanding Recorded Investments | Post- Modifications Outstanding Recorded Investments | Number of Loans | Pre- Modifications Outstanding Recorded Investments | Post- Modifications Outstanding Recorded Investments | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||||||
Construction and Development: | ||||||||||||||||||||||||
Residential and commercial | 5 | $ | 9,408 | $ | 9,408 | 2 | $ | 1,810 | $ | 1,810 | ||||||||||||||
Total troubled debt restructurings | 5 | $ | 9,408 | $ | 9,408 | 2 | $ | 1,810 | $ | 1,810 |
35 |
Actual | For Minimum Regulatory Capital Requirement Purposes | To be Well Capitalized under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
As of June 30, 2013: | ||||||||||||||||||||||||
Tangible Capital (to tangible assets) | $ | 78,001 | 11.99 | % | $ | ≥ 9,759 | 1.50 | % | N/A | |||||||||||||||
Core Capital (to adjusted tangible assets) | 78,001 | 11.99 | ≥26,025 | 4.00 | $ | ≥32,531 | 5.00 | % | ||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 78,001 | 20.27 | ≥15,392 | 4.00 | ≥23,088 | 6.00 | ||||||||||||||||||
Total risk-based Capital (to risk-weighted assets) | 82,828 | 21.52 | ≥30,784 | 8.00 | ≥38,480 | 10.00 | ||||||||||||||||||
As of September 30, 2012: | ||||||||||||||||||||||||
Tangible Capital (to tangible assets) | $ | 54,436 | 7.70 | % | $ | ≥10,601 | 1.50 | % | N/A | |||||||||||||||
Core Capital (to adjusted tangible assets) | 54,436 | 7.70 | ≥28,269 | 4.00 | $ | ≥35,336 | 5.00 | % | ||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 54,436 | 12.96 | ≥16,801 | 4.00 | ≥25,202 | 6.00 | ||||||||||||||||||
Total risk-based Capital (to risk-weighted assets) | 59,715 | 14.22 | ≥33,602 | 8.00 | ≥42,003 | 10.00 |
36 |
Note 8 - Fair Value Measurements |
Level 1— | Valuation is based upon quoted prices for identical instruments traded in active markets. |
Level 2— | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
Level 3— | Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset. |
37 |
June 30, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
Debt securities: | ||||||||||||||||
U.S. government agencies | $ | 19,117 | $ | - | $ | 19,117 | $ | - | ||||||||
State and municipal obligations | 11,942 | - | 11,942 | - | ||||||||||||
Single issuer trust preferred security | 811 | - | 811 | - | ||||||||||||
Corporate debt securities | 1,770 | - | 1,770 | - | ||||||||||||
Total investment securities available for sale | 33,640 | - | 33,640 | - | ||||||||||||
Mortgage-backed securities available for sale: | ||||||||||||||||
FNMA: | ||||||||||||||||
Adjustable-rate | 1,109 | - | 1,109 | - | ||||||||||||
Fixed-rate | 18,562 | - | 18,562 | - | ||||||||||||
FHLMC: | ||||||||||||||||
Adjustable-rate | 219 | 219 | ||||||||||||||
Fixed-rate | 13,092 | - | 13,092 | - | ||||||||||||
CMO, fixed-rate | 58,829 | - | 58,829 | - | ||||||||||||
Total mortgage-backed securities available for sale | 91,811 | - | 91,811 | - | ||||||||||||
Total | $ | 125,451 | $ | - | $ | 125,451 | $ | - |
September 30, 2012 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
Debt securities: | ||||||||||||||||
U.S. government agencies | $ | 23,921 | $ | - | $ | 23,921 | $ | - | ||||||||
FHLB notes | 696 | - | 696 | - | ||||||||||||
State and municipal obligations | 9,387 | - | 9,387 | - | ||||||||||||
Single issuer trust preferred security | 764 | - | 764 | - | ||||||||||||
Corporate debt securities | 2,057 | - | 2,057 | - | ||||||||||||
Total investment securities available for sale | $ | 36,825 | - | $ | 36,825 | - | ||||||||||
Mortgage-backed securities available for sale: | ||||||||||||||||
FNMA: | ||||||||||||||||
Adjustable-rate | 1,215 | - | 1,215 | - | ||||||||||||
Fixed-rate | 710 | - | 710 | - | ||||||||||||
FHLMC, adjustable-rate | 261 | - | 261 | - | ||||||||||||
GNMA, adjustable-rate | 1 | - | 1 | - | ||||||||||||
CMO, fixed-rate | 41,496 | - | 41,496 | - | ||||||||||||
Total mortgage-backed securities available for sale | 43,683 | - | 43,683 | - | ||||||||||||
Total | $ | 80,508 | $ | - | $ | 80,508 | $ | - |
38 |
June 30, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Other real estate owned | $ | 4,754 | $ | - | $ | - | $ | 4,754 | ||||||||
Impaired loans | 4,120 | - | - | 4,120 | ||||||||||||
Total | $ | 8,874 | $ | - | $ | - | $ | 8,874 |
June 30, 2013 | ||||||||||||||
Fair Value at June 30, 2013 | Valuation Technique | Unobservable Input | Range | |||||||||||
(Dollars in thousands) | ||||||||||||||
Other real estate owned | $ | 4,754 | Appraisal of collateral(1) | Collateral discounts(2) | 7-72 | % | ||||||||
Impaired loans(3) | 4,120 | Appraisal of collateral(1) | Collateral discounts(2) | 1-33 | % | |||||||||
Total | $ | 8,874 |
(1) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. |
(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
(3) Includes assets directly charged-down to fair value during the year-to-date period. |
September 30, 2012 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Other real estate owned | $ | 2,991 | $ | - | $ | - | $ | 2,991 | ||||||||
Impaired loans | 5,925 | - | - | 5,925 | ||||||||||||
Total | $ | 8,916 | $ | - | $ | - | $ | 8,916 |
September 30, 2012 | ||||||||||||||
Fair Value at September 30, 2012 | Valuation Technique | Unobservable Input | Range | |||||||||||
(Dollars in thousands) | ||||||||||||||
Other real estate owned | $ | 2,991 | Appraisal of collateral(1) | Collateral discounts(2) | 20-63 | % | ||||||||
Impaired loans(3) | 5,925 | Appraisal of collateral(1) | Collateral discounts(2) | 0-16 | % | |||||||||
Total | $ | 8,916 |
(1) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. |
(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
(3) Includes assets directly charged-down to fair value during the year-to-date period. |
39 |
Fair Value at June 30, 2013 | Valuation Technique | Observable Input | Method or Value as of June 30, 2013 | ||||||||||||
(In thousands) | |||||||||||||||
Servicing rights | $ | 243 | Discounted cash flow | Discount rate | 11.19% | Rate used through modeling period | |||||||||
Loan prepayment speeds | 16.82% | Weighted-average CPR | |||||||||||||
Servicing fees | 0.25% | Of loan balance | |||||||||||||
Servicing costs | 6.67% | Monthly servicing cost per account | |||||||||||||
25.00% | Additional monthly servicing cost per loan on loans more than 30 days delinquent | ||||||||||||||
0.00% | Of loans more than 30 days delinquent |
Fair Value at September 30, 2012 | Valuation Technique | Observable Input | Method or Value as of September 30, 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Servicing rights | $ | 107 | Discounted cash flow | Discount rate | 11.00% | Rate used through modeling period | |||||||||
Loan prepayment speeds | 28.04% | Weighted-average CPR | |||||||||||||
Servicing fees | 0.25% | Of loan balance | |||||||||||||
Servicing costs | 6.25% | Monthly servicing cost per account | |||||||||||||
25.00% | Additional monthly servicing cost per loan on loans more than 30 days delinquent | ||||||||||||||
0.00% | Of loans more than 30 days delinquent |
40 |
41 |
42 |
June 30, 2013 | ||||||||||||||||||||
Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 67,383 | $ | 67,383 | $ | 67,383 | $ | - | $ | - | ||||||||||
Investment securities available for sale | 125,451 | 125,451 | - | 125,451 | - | |||||||||||||||
Loans receivable, net | 423,943 | 427,743 | - | - | 427,743 | |||||||||||||||
Accrued interest receivable | 1,501 | 1,501 | - | 1,501 | - | |||||||||||||||
Restricted stock | 3,718 | 3,718 | - | 3,718 | - | |||||||||||||||
Mortgage servicing rights | 243 | 243 | - | 243 | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Savings accounts | 44,348 | 44,348 | - | 44,348 | - | |||||||||||||||
Checking and NOW accounts | 114,470 | 114,470 | - | 114,470 | - | |||||||||||||||
Money market accounts | 69,437 | 69,437 | - | 69,437 | - | |||||||||||||||
Certificates of deposit | 288,883 | 295,991 | - | 295,991 | - | |||||||||||||||
FHLB advances | 48,000 | 52,783 | - | 52,783 | - | |||||||||||||||
Accrued interest payable | 269 | 269 | - | 269 | - |
43 |
September 30, 2012 | ||||||||||||||||||||
Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 131,910 | $ | 131,910 | $ | 131,910 | $ | - | $ | - | ||||||||||
Investment securities available for sale | 80,508 | 80,508 | - | 80,508 | - | |||||||||||||||
Loans receivable, net | 457,001 | 479,613 | - | - | 479,613 | |||||||||||||||
Accrued interest receivable | 1,521 | 1,521 | - | 1,521 | - | |||||||||||||||
Restricted stock | 4,147 | 4,147 | - | 4,147 | - | |||||||||||||||
Mortgage servicing rights | 107 | 107 | - | 107 | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Savings accounts | 41,712 | 41,712 | - | 41,712 | - | |||||||||||||||
Checking and NOW accounts | 110,178 | 110,178 | - | 110,178 | - | |||||||||||||||
Money market accounts | 70,955 | 70,955 | - | 70,955 | - | |||||||||||||||
Certificates of deposit | 318,143 | 326,974 | - | 326,974 | - | |||||||||||||||
FHLB advances | 48,085 | 56,102 | - | 56,102 | - | |||||||||||||||
Accrued interest payable | 266 | 266 | - | 266 | - |
Nine Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
At federal statutory rate | $ | (228 | ) | $ | 803 | |||
Adjustments resulting from: | ||||||||
Tax-exempt interest | (57 | ) | (11 | ) | ||||
Low-income housing credit | - | (33 | ) | |||||
Earnings on bank-owned life insurance | (350 | ) | (136 | ) | ||||
Other | (3 | ) | (3 | ) | ||||
$ | (638 | ) | $ | 620 | ||||
Effective tax rate | 95.10 | % | 26.24 | % |
44 |
June 30, 2013 | September 30, 2012 | |||||||
(In thousands) | ||||||||
Deferred Tax Assets: | ||||||||
Unrealized loss on investments available for sale | $ | 1,172 | $ | - | ||||
Allowance for loan losses | 3,637 | 3,362 | ||||||
Nonaccrual interest | 460 | 374 | ||||||
Write-down of real estate owned | 288 | 222 | ||||||
Alternative minimum tax (AMT) credit carryover | 68 | 64 | ||||||
Low-income housing tax credit carryover | 337 | 337 | ||||||
Supplement Employer Retirement Plan | 422 | 384 | ||||||
Charitable contributions | 201 | 198 | ||||||
Depreciation | 136 | 33 | ||||||
State net operating loss | 886 | 800 | ||||||
Federal net operating loss | 2,252 | 2,166 | ||||||
Other | 102 | 74 | ||||||
Total Deferred Tax Assets | 9,961 | 8,014 | ||||||
Valuation allowance for state net operating loss | (886 | ) | (800 | ) | ||||
Valuation allowance for charitable contributions | (201 | ) | (74 | ) | ||||
Total Deferred Tax Assets, Net of Valuation Allowance | $ | 8,874 | $ | 7,140 | ||||
Deferred Tax Liabilities: | ||||||||
Unrealized gain on investments available for sale | - | (329 | ) | |||||
Mortgage servicing rights | (83 | ) | (36 | ) | ||||
Total Deferred Tax Liabilities | (83 | ) | (365 | ) | ||||
Deferred Tax Assets, Net | $ | 8,791 | $ | 6,775 |
45 |
46 |
47 |
48 |
● | Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. |
● | Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
● | Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset. |
49 |
June 30, 2013 | March 31, 2013 | September 30, 2012 | ||||||||||
(In thousands) | ||||||||||||
Loans 31-89 days delinquent: | ||||||||||||
Residential mortgage | $ | 1,844 | $ | 1,266 | $ | 1,402 | ||||||
Commercial: | ||||||||||||
Commercial real estate | 1,398 | 2,631 | 1,778 | |||||||||
Consumer: | ||||||||||||
Home equity lines of credit | 72 | 203 | 220 | |||||||||
Second mortgages | 789 | 763 | 1,140 | |||||||||
Other | 9 | 1 | 4 | |||||||||
Total | $ | 4,112 | $ | 4,864 | $ | 4,544 |
50 |
June 30, 2013 | March 31, 2013 | September 30, 2012 | ||||||||||
(In thousands) | ||||||||||||
Classified assets: | ||||||||||||
Substandard(1) | $ | 29,230 | $ | 39,438 | $ | 40,226 | ||||||
Doubtful | 66 | 79 | 351 | |||||||||
Loss | - | - | - | |||||||||
Total classified assets | 29,296 | 39,517 | 40,577 | |||||||||
Special mention assets | 6,382 | 6,857 | 7,657 | |||||||||
Total classified and special mention assets | $ | 35,678 | $ | 46,374 | $ | 48,234 |
(1) Includes other real estate owned of $5.1 million, $4.3 million and $4.6 million, at June 30, 2013, March 31, 2013 and September 30, 2012, respectively. |
51 |
June 30, 2013 | March 31, 2013 | September 30, 2012 | ||||||||||
(Dollars in thousands) | ||||||||||||
Non-accruing loans: | ||||||||||||
Residential mortgage | $ | 2,360 | $ | 3,585 | $ | 3,540 | ||||||
Construction or development: | ||||||||||||
Residential and commercial(1) | 8,395 | 9,496 | 3,788 | |||||||||
Commercial: | ||||||||||||
Commercial real estate(2) | 2,907 | 3,200 | 1,458 | |||||||||
Other | 163 | 182 | 201 | |||||||||
Consumer: | ||||||||||||
Home equity lines of credit | 20 | 22 | 23 | |||||||||
Second mortgages | 713 | 767 | 739 | |||||||||
Total non-accruing loans | 14,558 | 17,252 | 9,749 | |||||||||
Other real estate owned and other foreclosed assets: | ||||||||||||
Residential mortgage | 2,025 | 1,238 | 1,262 | |||||||||
Construction or development: | ||||||||||||
Residential and commercial | 801 | - | - | |||||||||
Commercial: | ||||||||||||
Commercial real estate | 1,721 | 2,280 | 2,405 | |||||||||
Multi-family | 171 | 405 | 486 | |||||||||
Consumer: | ||||||||||||
Second mortgages | 416 | 416 | 441 | |||||||||
Total | 5,134 | 4,339 | 4,594 | |||||||||
Total non-performing assets | 19,692 | 21,591 | 14,343 | |||||||||
Performing troubled debt restructurings: | ||||||||||||
Residential mortgage | 540 | 547 | 864 | |||||||||
Construction or development: | ||||||||||||
Land | - | 1,142 | 1,148 | |||||||||
Commercial: | ||||||||||||
Commercial real estate | 2,755 | 4,529 | 6,000 | |||||||||
Other | 173 | 175 | 175 | |||||||||
Total | 3,468 | 6,393 | 8,187 | |||||||||
Total non-performing assets and performing troubled debt restructurings | $ | 23,160 | $ | 27,984 | $ | 22,530 | ||||||
Ratios: | ||||||||||||
Total non-accrual loans as a percent of gross loans | 3.40 | % | 3.83 | % | 2.11 | % | ||||||
Total non-performing assets as a percent of total assets | 2.96 | % | 3.16 | % | 2.01 | % | ||||||
Total non-performing assets and performing troubled debt restructurings as a percent of total assets | 3.48 | % | 4.09 | % | 3.17 | % |
(1) | Includes six loans classified as TDRs in the aggregate amount of $8.4 million at June 30, 2013 and $8.6 million at March 31, 2013 and two loans classified as TDRs in the aggregate amount of $1.4 million at September 30, 2012. |
(2) | Includes two loans classified as TDRs in the aggregate amount of $2.0 million at June 30, 2013 and one loan classified as a TDR in the amount of $1.4 million at March 31, 2013. |
52 |
53 |
Three Months Ended June 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||
Loans receivable (1) | $ | 440,757 | $ | 4,931 | 4.48 | % | $ | 472,086 | $ | 5,894 | 4.99 | % | ||||||||||||
Investment securities | 120,792 | 561 | 1.86 | 88,214 | 410 | 1.86 | ||||||||||||||||||
Deposits in other banks | 64,694 | 34 | 0.21 | 50,695 | 16 | 0.13 | ||||||||||||||||||
FHLB stock | 3,703 | 2 | 0.22 | 4,662 | 1 | 0.09 | ||||||||||||||||||
Total interest-earning assets | 629,946 | 5,528 | 3.51 | 615,657 | 6,321 | 4.11 | ||||||||||||||||||
Non-interest-earning assets | 43,807 | 34,022 | ||||||||||||||||||||||
Total assets | $ | 673,753 | $ | 649,679 | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Demand and NOW accounts | $ | 92,136 | 24 | 0.10 | $ | 93,715 | 60 | 0.26 | ||||||||||||||||
Money market accounts | 68,675 | 48 | 0.28 | 76,138 | 85 | 0.45 | ||||||||||||||||||
Savings accounts | 44,567 | 5 | 0.04 | 47,791 | 12 | 0.10 | ||||||||||||||||||
Time deposits | 293,838 | 1,123 | 1.53 | 294,654 | 1,432 | 1.94 | ||||||||||||||||||
Total deposits | 499,216 | 1,200 | 0.96 | 512,298 | 1,589 | 1.24 | ||||||||||||||||||
FHLB borrowings | 48,000 | 426 | 3.55 | 48,468 | 427 | 3.52 | ||||||||||||||||||
Total interest-bearing liabilities | 547,216 | 1,626 | 1.19 | 560,766 | 2,016 | 1.44 | ||||||||||||||||||
Non-interest-bearing liabilities | 29,647 | 26,364 | ||||||||||||||||||||||
Total liabilities | 576,863 | 587,130 | ||||||||||||||||||||||
Shareholders’ Equity | 96,890 | 62,549 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 673,753 | $ | 649,679 | ||||||||||||||||||||
Net interest-earning assets | ||||||||||||||||||||||||
$ | 82,730 | $ | 54,891 | |||||||||||||||||||||
Net interest income; average interest rate spread | $ | 3,902 | 2.32 | % | $ | 4,305 | 2.67 | % | ||||||||||||||||
Net interest margin | 2.48 | % | 2.80 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 115.12 | % | 109.79 | % |
(1) Includes non-accrual loans during the respective periods. Calculated net of deferred loan fees, loan discounts, loans in process and loss reserves. |
54 |
Nine Months Ended June 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||
Loans receivable (1) | $ | 447,512 | $ | 15,465 | 4.61 | % | $ | 483,023 | $ | 18,352 | 5.07 | % | ||||||||||||
Investment securities | 100,437 | 1,365 | 1.81 | 85,690 | 1,279 | 1.99 | ||||||||||||||||||
Deposits in other banks | 87,884 | 101 | 0.15 | 48,025 | 34 | 0.09 | ||||||||||||||||||
FHLB stock | 3,724 | 10 | 0.36 | 4,934 | 2 | 0.05 | ||||||||||||||||||
Total interest-earning assets | 639,557 | 16,941 | 3.53 | 621,672 | 19,667 | 4.21 | ||||||||||||||||||
Non-interest-earning assets | 23,869 | 35,782 | ||||||||||||||||||||||
Total assets | $ | 663,426 | $ | 657,454 | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Demand and NOW accounts | $ | 89,934 | 97 | 0.14 | $ | 91,315 | 209 | 0.31 | ||||||||||||||||
Money market accounts | 68,885 | 180 | 0.35 | 82,326 | 370 | 0.60 | ||||||||||||||||||
Savings accounts | 43,446 | 17 | 0.05 | 46,015 | 36 | 0.11 | ||||||||||||||||||
Time deposits | 304,422 | 3,840 | 1.68 | 301,273 | 4,516 | 2.00 | ||||||||||||||||||
Total deposits | 506,687 | 4,134 | 1.09 | 520,929 | 5,131 | 1.31 | ||||||||||||||||||
FHLB borrowings | 48,005 | 1,277 | 3.55 | 48,721 | 1,289 | 3.53 | ||||||||||||||||||
Total interest-bearing liabilities | 554,692 | 5,411 | 1.30 | 569,650 | 6,420 | 1.51 | ||||||||||||||||||
Non-interest-bearing liabilities | 25,606 | 25,852 | ||||||||||||||||||||||
Total liabilities | 580,298 | 595,502 | ||||||||||||||||||||||
Shareholders’ Equity | 83,128 | 61,952 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 663,426 | $ | 657,454 | ||||||||||||||||||||
Net interest-earning assets | $ | 84,865 | $ | 52,022 | ||||||||||||||||||||
Net interest income; average interest rate spread | $ | 11,530 | 2.23 | % | $ | 13,247 | 2.70 | % | ||||||||||||||||
Net interest margin | 2.40 | % | 2.84 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 115.30 | % | 109.13 | % |
(1) Includes non-accrual loans during the respective periods. Calculated net of deferred loan fees, loan discounts, loans in process and loss reserves. |
55 |
56 |
For the Nine Months Ended June 30, | For the Year Ended September 30, | |||||||||||
2013 | 2012 | 2012 | ||||||||||
(Dollars in thousands) | ||||||||||||
Balance at beginning of period | $ | 7,581 | $ | 10,101 | $ | 10,101 | ||||||
Provision for loan losses | 1,255 | 360 | 810 | |||||||||
Charge-offs: | ||||||||||||
Residential mortgage | 331 | 1,115 | 1,367 | |||||||||
Construction and Development | ||||||||||||
Residential and commercial | 1,622 | 611 | 826 | |||||||||
Commercial: | ||||||||||||
Commercial real estate | 771 | 855 | 951 | |||||||||
Multi-family | - | - | 113 | |||||||||
Other | - | 88 | 88 | |||||||||
Consumer: | ||||||||||||
Home equity lines of credit | - | 72 | 72 | |||||||||
Second mortgages | 552 | 975 | 1,184 | |||||||||
Other | 7 | 22 | 22 | |||||||||
Total charge-offs | 3,283 | 3,738 | 4,623 | |||||||||
Recoveries: | ||||||||||||
Residential mortgage | 187 | - | - | |||||||||
Construction and Development | ||||||||||||
Residential and commercial | - | 1,139 | 1,139 | |||||||||
Commercial: | ||||||||||||
Commercial real estate | 114 | - | 5 | |||||||||
Other | 22 | 2 | 2 | |||||||||
Consumer: | ||||||||||||
Home equity lines of credit | �� | 3 | 1 | 2 | ||||||||
Second mortgages | 178 | 114 | 141 | |||||||||
Other | 3 | 4 | 4 | |||||||||
Total recoveries | 507 | 1,260 | 1,293 | |||||||||
Net charge-offs | 2,776 | 2,478 | 3,330 | |||||||||
Balance at end of period | $ | 6,060 | $ | 7,983 | $ | 7,581 | ||||||
Ratios: | ||||||||||||
Ratio of allowance for loan losses to non-accrual loans | 41.63 | % | 75.11 | % | 77.76 | % | ||||||
Ratio of net charge-offs to average loans outstanding (annualized for the nine-month periods ended June 30, 2013 and 2012) | 0.83 | % | 0.68 | % | 0.70 | % |
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Payments Due by Period | ||||||||||||||||||||
To One Year | After One to Three Years | After Three to Five Years | After Five Years | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Long-term debt obligations | $ | - | $ | - | $ | - | $ | 48,000 | $ | 48,000 | ||||||||||
Certificates of deposit | 111,334 | 113,212 | 46,574 | 17,763 | 288,883 | |||||||||||||||
Operating lease obligations | 70 | 516 | 429 | 4,548 | 5,563 | |||||||||||||||
Total contractual obligations | $ | 111,404 | $ | 113,728 | $ | 47,003 | $ | 70,311 | $ | 342,446 |
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31.1 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer |
31.2 | Rule 13a-14(a)/15d-14(a) Section 302 Certification of the Chief Financial Officer |
32.1 | Section 1350 Certification |
No. | Description | |
101.INS | XBRL Instance Document.* | |
101.SCH | XBRL Taxonomy Extension Schema Document.* | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document.* | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document.* | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document.* | |
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document.* |
* | These interactive data files are being furnished as part of this Quarterly Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections. |
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MALVERN BANCORP, INC. | |||
August 12, 2013 | By: | /s/ Ronald Anderson | |
Ronald Anderson | |||
President and Chief Executive Officer | |||
August 12, 2013 | By: | /s/ Dennis Boyle | |
Dennis Boyle | |||
Senior Vice President and Chief Financial Officer |
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