NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Six Months Ended
December 31, 2012 and 2011
(Unaudited)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS
The accounting and reporting policies of PVF Capital Corp. (the Company) conform to U.S. generally accepted
accounting principles (U.S. GAAP) and general industry practice. The Companys principal subsidiary, Park View Federal Savings Bank (the Bank) is primarily engaged in the business of offering deposits through the
issuance of savings accounts, money market accounts, and certificates of deposit and lending funds primarily for the purchase, construction, and improvement of real estate in Cuyahoga, Summit, Geauga, Lake, Medina, Lorain and Portage Counties, Ohio.
The deposit accounts of the Bank are insured up to applicable limits by the Federal Deposit Insurance Corporation (the FDIC). The following is a description of the significant policies which the Company follows in preparing and
presenting its consolidated financial statements.
Basis of Presentation
: The accompanying Unaudited Consolidated
Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and the instructions for Form10-Q and Article 10 of
Regulation S-X. Accordingly, these financial statements do not contain all of the information and footnotes required by U.S. GAAP for annual financial statements and should be read in conjunction with the Companys Annual Report on Form 10-K
for the fiscal year ended June 30, 2012. These consolidated financial statements are prepared without audit and reflect all adjustments that, in the opinion of management, are necessary to present fairly the financial position of the Company at
December 31, 2012, and its results of operations and cash flows for the periods presented. All such adjustments are normal and recurring in nature. The accounting principles used to prepare the consolidated financial statements are in
compliance with U.S. GAAP. However, the financial statements were prepared in accordance with the instructions of Form 10-Q and, therefore, do not purport to contain all necessary financial and note disclosures required by U.S. GAAP.
Principles of Consolidation
: The consolidated financial statements include the accounts of the Company and its
wholly-owned subsidiaries, the Bank, PVF Service Corporation (PVFSC), Mid Pines Land Company, PVF Holdings, Inc., PVF Mortgage Corp. and PVF Community Development Corp. PVFSC owns certain premises and leases them to the Bank. Mid Pines
Land Company, PVF Holdings, Inc., PVF Mortgage Corp. and PVF Community Development Corp. did not have any significant assets or activity as of or for the periods presented. All significant intercompany transactions and balances are eliminated in
consolidation. In the period ended December 31, 2012, the Company reclassified certain loans between the loan portfolio segments and reclassified certain deposits between interest bearing and non-interest bearing as presented previously in the
Companys Annual Report on Form 10-K to conform to the current period presentation.
PVFSC and the Bank have entered into
various nonconsolidated joint ventures that own real estate, including properties leased to the Bank. The Bank has created various limited liability companies that have taken title to property acquired through or in lieu of foreclosure.
5
Part I FINANCIAL INFORMATION
Use of Estimates
: The preparation of consolidated financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The allowance for loan losses, valuation of mortgage servicing rights, fair value of mortgage banking derivatives, valuation
of loans held for sale, fair value of securities, valuation of other real estate owned, and the realizability of deferred tax assets are particularly susceptible to change.
NOTE 2 ADJUSTMENT FOR FREDDIE MAC INTEREST
During the quarter ended December 31, 2012, the Company identified that it was not making appropriate adjustments with
respect to interest on residential mortgage loans originated and sold into the secondary market. In these mortgage sales, interest was advanced by Freddie Mac for the period from the first day of the month until the date of settlement with Freddie
Mac to ensure a whole payment is subsequently remitted by the Company to Freddie Mac. Such amounts should have been reversed monthly from interest income and included in the liability account of funds due Freddie Mac. It was determined that the
adjustments to reverse interest income were not made beginning August 2011.
The Company is applying relevant guidance from
the SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (SAB 108) to assess the materiality of the interest income adjustments
described above. It was determined, based upon the assessment, that the adjustment was immaterial to the previously reported amounts contained in the Companys prior periodic filings. Although the interest income adjustments were immaterial to
prior periods, recording the cumulative impact of the out-of period correction in the second quarter of 2013 would be material. Therefore the Company applied the guidance for accounting for changes and error corrections and revised the prior period
financial statements presented per SAB 108.
The guidance also requires the adjustment of any prior quarterly financial
statements within the fiscal year of adoption for the effects of such errors on the quarters when the information is next presented. The Company is therefore revising the previously reported financial information for the quarters ended December 31,
2011 and September 30, 2012 as well as the six months ended December 31, 2011. The adjustments for both the quarters ended December 31, 2011 and September 30, 2012 and the six months ended December 31, 2011 is a decrease to interest income of $0.2
million and an increase in accrued expenses and other liabilities for the same amount. These adjustments do not require previously filed reports with the SEC to be amended. The Company intends to continue to revise the previously reported
consolidated financial statements for certain comparative quarterly and annual periods through subsequent filings. The Company considers these adjustments to be immaterial to prior periods.
The applicable effect on the prior year balance sheet and statement of operations related to the adjustment for interest income on
residential loans is as follows:
6
Part I FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
|
2012
|
|
|
2011
|
|
|
2011
|
|
|
2012
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities as previously reported
|
|
$
|
24,224,709
|
|
|
$
|
17,157,021
|
|
|
|
|
|
|
$
|
17,167,776
|
|
Adjustment for interest income on residential loans sold
|
|
|
599,745
|
|
|
|
188,206
|
|
|
|
|
|
|
|
753,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities as adjusted
|
|
$
|
23,824,454
|
|
|
$
|
17,345,227
|
|
|
|
|
|
|
$
|
17,921,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings (accumulated deficit) as previously reported
|
|
$
|
(26,119,855
|
)
|
|
$
|
(27,366,533
|
)
|
|
|
|
|
|
$
|
(24,568,768
|
)
|
Net impact of adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(188,206
|
)
|
|
|
|
|
|
|
(753,230
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings as adjusted
|
|
$
|
(26,719,600
|
)
|
|
$
|
(27,554,739
|
)
|
|
|
|
|
|
$
|
(25,321,998
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity as previously reported
|
|
$
|
70,730,621
|
|
|
$
|
68,949,429
|
|
|
|
|
|
|
$
|
72,830,369
|
|
Net impact of adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(188,206
|
)
|
|
|
(188,206
|
)
|
|
|
(753,230
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity as adjusted
|
|
$
|
70,130,876
|
|
|
$
|
68,761,223
|
|
|
$
|
68,761,223
|
|
|
$
|
72,077,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
June 30, 2012
|
|
|
For the quarter
ended
December 31, 2011
|
|
|
For the six
months
ended
December 31, 2011
|
|
|
For the
quarter
ended
September 30, 2012
|
|
Statement of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and divdends income on loans as previously reported
|
|
$
|
28,382,546
|
|
|
$
|
7,183,747
|
|
|
$
|
14,288,014
|
|
|
$
|
6,986,437
|
|
Adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(151,962
|
)
|
|
|
(188,206
|
)
|
|
|
(153,485
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and divdends income on loans as adjusted
|
|
$
|
27,782,801
|
|
|
$
|
7,031,785
|
|
|
$
|
14,099,808
|
|
|
$
|
6,832,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and dividends income
|
|
$
|
29,847,913
|
|
|
$
|
7,481,342
|
|
|
$
|
14,879,805
|
|
|
$
|
7,411,575
|
|
Adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(151,962
|
)
|
|
|
(188,206
|
)
|
|
|
(153,485
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and dividends income as adjusted
|
|
$
|
29,248,168
|
|
|
$
|
7,329,380
|
|
|
$
|
14,691,599
|
|
|
$
|
7,258,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income as previously reported
|
|
$
|
21,973,522
|
|
|
$
|
5,426,029
|
|
|
$
|
10,603,005
|
|
|
$
|
5,815,141
|
|
Adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(151,962
|
)
|
|
|
(188,206
|
)
|
|
|
(153,485
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income as adjusted
|
|
$
|
21,373,777
|
|
|
$
|
5,274,067
|
|
|
$
|
10,414,799
|
|
|
$
|
5,661,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses as previously reported
|
|
$
|
14,991,522
|
|
|
$
|
3,460,029
|
|
|
$
|
7,137,005
|
|
|
$
|
4,765,141
|
|
Adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(151,962
|
)
|
|
|
(188,206
|
)
|
|
|
(153,485
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income as adjusted
|
|
$
|
14,391,777
|
|
|
$
|
3,308,067
|
|
|
$
|
6,948,799
|
|
|
$
|
4,611,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before federal income taxes as previously reported
|
|
$
|
(1,550,076
|
)
|
|
$
|
(1,757,159
|
)
|
|
$
|
(2,602,934
|
)
|
|
$
|
1,551,087
|
|
Adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(151,962
|
)
|
|
|
(188,206
|
)
|
|
|
(153,485
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before federal income taxes as adjusted
|
|
$
|
(2,149,821
|
)
|
|
$
|
(1,909,121
|
)
|
|
$
|
(2,791,140
|
)
|
|
$
|
1,397,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) as previously reported
|
|
$
|
(1,331,077
|
)
|
|
$
|
(1,757,159
|
)
|
|
$
|
(2,577,756
|
)
|
|
$
|
1,551,087
|
|
Adjustment for interest income on residential loans sold
|
|
|
(599,745
|
)
|
|
|
(151,962
|
)
|
|
|
(188,206
|
)
|
|
|
(153,485
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) as adjusted
|
|
$
|
(1,930,822
|
)
|
|
$
|
(1,909,121
|
)
|
|
$
|
(2,765,962
|
)
|
|
$
|
1,397,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share as previously reported
|
|
$
|
(0.05
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
0.06
|
|
Adjustment for interest income on residential loans sold
|
|
|
-0.03
|
|
|
|
0.00
|
|
|
|
-0.01
|
|
|
|
-0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share as adjusted
|
|
$
|
(0.08
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Part I FINANCIAL INFORMATION
NOTE 3 SECURITIES
As of December 31, 2012 and June 30, 2012, respectively, the amortized cost and fair value of securities
available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fair
|
|
|
|
Cost
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
FNMA structured notes
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Trust preferred and corporate securities
|
|
|
19,235,413
|
|
|
|
930,789
|
|
|
|
(13,054
|
)
|
|
|
20,153,148
|
|
Mortgage-backed GSE securities
|
|
|
19,322,768
|
|
|
|
298,546
|
|
|
|
(13,354
|
)
|
|
|
19,607,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
38,558,181
|
|
|
$
|
1,229,335
|
|
|
$
|
(26,408
|
)
|
|
$
|
39,761,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2012
|
|
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fair
|
|
|
|
Cost
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
FNMA structured notes
|
|
$
|
2,000,000
|
|
|
$
|
9,320
|
|
|
$
|
|
|
|
$
|
2,009,320
|
|
Trust preferred and corporate securities
|
|
|
20,964,197
|
|
|
|
344,230
|
|
|
|
(46,665
|
)
|
|
|
21,261,762
|
|
Mortgage-backed GSE securities
|
|
|
15,093,864
|
|
|
|
293,098
|
|
|
|
|
|
|
|
15,386,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
38,058,061
|
|
|
$
|
646,648
|
|
|
$
|
(46,665
|
)
|
|
$
|
38,658,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management performs a quarterly evaluation of investment securities for other-than-temporary impairment.
At December 31, 2012 and June 30, 2012, respectively, the gross unrealized losses were in a loss position for less than 12 months. Management does not believe that any of these losses at December 31, 2012 or June 30, 2012
represent an other-than-temporary impairment. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized within net income in the period the
other-then-temporary impairment is identified.
8
Part I FINANCIAL INFORMATION
The amortized cost and fair value of securities available-for-sale, by contractual
maturity, are shown below:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
Amortized
|
|
|
|
|
|
|
Cost
|
|
|
Fair Value
|
|
One to five years
|
|
$
|
980,465
|
|
|
$
|
977,360
|
|
Five to ten years
|
|
|
5,031,225
|
|
|
|
5,145,540
|
|
Greater than 10 years
|
|
|
13,223,722
|
|
|
|
14,030,248
|
|
Mortgage-backed GSE securities
|
|
|
19,322,769
|
|
|
|
19,607,960
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
38,558,181
|
|
|
$
|
39,761,108
|
|
|
|
|
|
|
|
|
|
|
These mortgage-backed securities are backed by residential mortgage loans and do not mature on a single
maturity date. Securities pledged as collateral for contingent funding at the Federal Home Loan Bank of Cincinnati were approximately $11.6 million.
NOTE 4 LOANS RECEIVABLE
Loans receivable at December 31, 2012, and June 30, 2012 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
June 30,
|
|
|
|
2012
|
|
|
2012
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
63,539,236
|
|
|
$
|
58,743,933
|
|
1-4 Family Non-Owner Occupied
|
|
|
30,432,720
|
|
|
|
34,368,320
|
|
1-4 Family Second Mortgage
|
|
|
27,891,777
|
|
|
|
29,202,145
|
|
Home Equity Lines of Credit
|
|
|
61,053,762
|
|
|
|
65,908,899
|
|
Home Equity Investment Lines of Credit
|
|
|
4,357,795
|
|
|
|
5,645,851
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
2,246,614
|
|
|
|
514,052
|
|
1-4 Family Construction Models/Speculative
|
|
|
748,141
|
|
|
|
1,608,137
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
63,381,151
|
|
|
|
53,959,459
|
|
Multi-Family Second Mortgage
|
|
|
63,753
|
|
|
|
145,642
|
|
Multi-Family Construction
|
|
|
863,526
|
|
|
|
5,375,000
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
197,964,844
|
|
|
|
198,287,457
|
|
Commercial Second Mortgage
|
|
|
4,617,198
|
|
|
|
5,750,283
|
|
Commercial Lines of Credit
|
|
|
25,983,125
|
|
|
|
22,335,619
|
|
Commercial Construction
|
|
|
9,914,225
|
|
|
|
7,732,736
|
|
Commercial and Industrial Loans
|
|
|
52,599,121
|
|
|
|
35,443,184
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
8,063,269
|
|
|
|
12,091,093
|
|
Acquisition and Development Loans
|
|
|
15,287,575
|
|
|
|
19,093,006
|
|
Consumer Loans
|
|
|
1,341,127
|
|
|
|
2,112,708
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable
|
|
|
570,348,959
|
|
|
|
558,317,524
|
|
Net deferred loan origination fees
|
|
|
(633,145
|
)
|
|
|
(637,144
|
)
|
Allowance for loan losses
|
|
|
(15,140,258
|
)
|
|
|
(16,052,865
|
)
|
|
|
|
|
|
|
|
|
|
Total loans receivable, net
|
|
$
|
554,575,556
|
|
|
$
|
541,627,515
|
|
|
|
|
|
|
|
|
|
|
9
Part I FINANCIAL INFORMATION
The following table presents activity in the allowance for loan losses by portfolio segment for the
three months ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
|
|
|
Commercial
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
Family
|
|
|
Multi-
|
|
|
Real
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
Family
|
|
|
Construction
|
|
|
Family
|
|
|
Estate
|
|
|
Industrial
|
|
|
Land
|
|
|
Consumer
|
|
|
Total
|
|
Beginning balance at September 30, 2012
|
|
$
|
5,689,939
|
|
|
$
|
312,954
|
|
|
$
|
1,136,178
|
|
|
$
|
5,796,594
|
|
|
$
|
1,230,094
|
|
|
$
|
1,959,076
|
|
|
$
|
10,805
|
|
|
$
|
16,135,640
|
|
Provision for loan losses
|
|
|
1,053,045
|
|
|
|
11,189
|
|
|
|
1,122,341
|
|
|
|
(495,273
|
)
|
|
|
(120,845
|
)
|
|
|
(570,461
|
)
|
|
|
4
|
|
|
|
1,000,000
|
|
Charge-offs
|
|
|
(1,435,386
|
)
|
|
|
0
|
|
|
|
(605,364
|
)
|
|
|
(27,532
|
)
|
|
|
(28,436
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
(2,096,718
|
)
|
Recoveries
|
|
|
10,292
|
|
|
|
0
|
|
|
|
0
|
|
|
|
57,735
|
|
|
|
5,319
|
|
|
|
27,990
|
|
|
|
0
|
|
|
|
101,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2012
|
|
$
|
5,317,890
|
|
|
$
|
324,143
|
|
|
$
|
1,653,155
|
|
|
$
|
5,331,524
|
|
|
$
|
1,086,132
|
|
|
$
|
1,416,605
|
|
|
$
|
10,809
|
|
|
$
|
15,140,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents activity in the allowance for loan losses by portfolio segment for the six months ended
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
|
|
|
Commercial
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
Family
|
|
|
Multi-
|
|
|
Real
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
Family
|
|
|
Construction
|
|
|
Family
|
|
|
Estate
|
|
|
Industrial
|
|
|
Land
|
|
|
Consumer
|
|
|
Total
|
|
Beginning balance at June 30, 2012
|
|
$
|
5,765,276
|
|
|
$
|
305,312
|
|
|
$
|
1,903,138
|
|
|
$
|
5,084,179
|
|
|
$
|
928,043
|
|
|
$
|
2,057,301
|
|
|
$
|
9,616
|
|
|
$
|
16,052,865
|
|
Provision for loan losses
|
|
|
1,676,824
|
|
|
|
54,790
|
|
|
|
355,381
|
|
|
|
448,021
|
|
|
|
192,121
|
|
|
|
(691,088
|
)
|
|
|
13,951
|
|
|
|
2,050,000
|
|
Charge-offs
|
|
|
(2,177,071
|
)
|
|
|
(45,959
|
)
|
|
|
(605,364
|
)
|
|
|
(276,025
|
)
|
|
|
(40,936
|
)
|
|
|
(20,078
|
)
|
|
|
(13,000
|
)
|
|
|
(3,178,433
|
)
|
Recoveries
|
|
|
52,861
|
|
|
|
10,000
|
|
|
|
|
|
|
|
75,349
|
|
|
|
6,904
|
|
|
|
70,470
|
|
|
|
242
|
|
|
|
215,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2012
|
|
$
|
5,317,890
|
|
|
$
|
324,143
|
|
|
$
|
1,653,155
|
|
|
$
|
5,331,524
|
|
|
$
|
1,086,132
|
|
|
$
|
1,416,605
|
|
|
$
|
10,809
|
|
|
$
|
15,140,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
Part I FINANCIAL INFORMATION
The following table presents activity in the allowance for loan losses by portfolio segment for the
three months ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
|
|
|
Commercial
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
Family
|
|
|
Multi-
|
|
|
Real
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
Family
|
|
|
Construction
|
|
|
Family
|
|
|
Estate
|
|
|
Industrial
|
|
|
Land
|
|
|
Consumer
|
|
|
Total
|
|
Beginning balance at September 30, 2011
|
|
$
|
7,858,667
|
|
|
$
|
1,196,984
|
|
|
$
|
1,170,228
|
|
|
$
|
8,338,763
|
|
|
$
|
2,129,697
|
|
|
$
|
8,590,912
|
|
|
$
|
267,912
|
|
|
$
|
29,553,163
|
|
Provision for loan losses
|
|
|
2,262,212
|
|
|
|
182,120
|
|
|
|
438,726
|
|
|
|
(752,786
|
)
|
|
|
(113,432
|
)
|
|
|
(178,528
|
)
|
|
|
127,688
|
|
|
|
1,966,000
|
|
Charge-offs
|
|
|
(4,252,275
|
)
|
|
|
(848,596
|
)
|
|
|
(368,828
|
)
|
|
|
(2,160,663
|
)
|
|
|
(508,173
|
)
|
|
|
(6,095,981
|
)
|
|
|
0
|
|
|
|
(14,234,516
|
)
|
Recoveries
|
|
|
35,526
|
|
|
|
0
|
|
|
|
0
|
|
|
|
85,699
|
|
|
|
51,931
|
|
|
|
57,352
|
|
|
|
0
|
|
|
|
230,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2011
|
|
$
|
5,904,130
|
|
|
$
|
530,508
|
|
|
$
|
1,240,126
|
|
|
$
|
5,511,013
|
|
|
$
|
1,560,023
|
|
|
$
|
2,373,755
|
|
|
$
|
395,600
|
|
|
$
|
17,515,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents activity in the allowance for loan losses by portfolio segment for the six months ended
December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
|
|
|
Commercial
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
Family
|
|
|
Multi-
|
|
|
Real
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
Family
|
|
|
Construction
|
|
|
Family
|
|
|
Estate
|
|
|
Industrial
|
|
|
Land
|
|
|
Consumer
|
|
|
Total
|
|
Beginning balance at June 30, 2011
|
|
$
|
8,841,454
|
|
|
$
|
1,266,740
|
|
|
$
|
1,767,336
|
|
|
$
|
8,458,942
|
|
|
$
|
1,663,894
|
|
|
$
|
7,891,305
|
|
|
$
|
107,222
|
|
|
$
|
29,996,893
|
|
Provision for loan losses
|
|
|
1,750,818
|
|
|
|
221,686
|
|
|
|
78,280
|
|
|
|
197,111
|
|
|
|
380,225
|
|
|
|
549,502
|
|
|
|
288,378
|
|
|
|
3,466,000
|
|
Charge-offs
|
|
|
(4,728,433
|
)
|
|
|
(957,918
|
)
|
|
|
(605,490
|
)
|
|
|
(3,250,011
|
)
|
|
|
(537,782
|
)
|
|
|
(6,124,403
|
)
|
|
|
|
|
|
|
(16,204,037
|
)
|
Recoveries
|
|
|
40,291
|
|
|
|
|
|
|
|
|
|
|
|
104,971
|
|
|
|
53,686
|
|
|
|
57,351
|
|
|
|
|
|
|
|
256,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2011
|
|
$
|
5,904,130
|
|
|
$
|
530,508
|
|
|
$
|
1,240,126
|
|
|
$
|
5,511,013
|
|
|
$
|
1,560,023
|
|
|
$
|
2,373,755
|
|
|
$
|
395,600
|
|
|
$
|
17,515,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
Part I FINANCIAL INFORMATION
The following table presents the allowance for loan losses and the recorded investment
in loans by portfolio segment and based on the impairment method as of December 31, 2012. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees, but excludes accrued interest receivable
which is not considered to be material.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
|
|
|
Commercial
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
Family
|
|
|
Multi-
|
|
|
Real
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
Family
|
|
|
Construction
|
|
|
Family
|
|
|
Estate
|
|
|
Industrial
|
|
|
Land
|
|
|
Consumer
|
|
|
Total
|
|
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance balance attributable to loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment
|
|
$
|
48,267
|
|
|
$
|
101,716
|
|
|
$
|
0
|
|
|
$
|
98,725
|
|
|
$
|
300,860
|
|
|
$
|
252,000
|
|
|
$
|
0
|
|
|
$
|
801,568
|
|
Collectively evaluated for impairment
|
|
|
5,269,623
|
|
|
|
222,427
|
|
|
|
1,653,155
|
|
|
|
5,232,799
|
|
|
|
785,272
|
|
|
|
1,164,605
|
|
|
|
10,809
|
|
|
|
14,338,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending allowance balance
|
|
$
|
5,317,890
|
|
|
$
|
324,143
|
|
|
$
|
1,653,155
|
|
|
$
|
5,331,524
|
|
|
$
|
1,086,132
|
|
|
$
|
1,416,605
|
|
|
$
|
10,809
|
|
|
$
|
15,140,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
10,936,808
|
|
|
$
|
827,652
|
|
|
$
|
790,119
|
|
|
$
|
11,342,376
|
|
|
$
|
501,844
|
|
|
$
|
5,734,960
|
|
|
$
|
0
|
|
|
$
|
30,133,759
|
|
Loans collectively evaluated for impairment
|
|
|
176,130,589
|
|
|
|
2,163,778
|
|
|
|
63,446,922
|
|
|
|
226,872,279
|
|
|
|
52,038,887
|
|
|
|
17,589,962
|
|
|
|
1,339,638
|
|
|
|
539,582,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending loans balance
|
|
$
|
187,067,397
|
|
|
$
|
2,991,430
|
|
|
$
|
64,237,041
|
|
|
$
|
238,214,655
|
|
|
$
|
52,540,731
|
|
|
$
|
23,324,922
|
|
|
$
|
1,339,638
|
|
|
$
|
569,715,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Part I FINANCIAL INFORMATION
The following table presents the allowance for loan losses and the recorded investment
in loans by portfolio segment and based on the impairment method as of June 30, 2012. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees, but excludes accrued interest receivable which
is not considered to be material.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
|
|
|
Commercial
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four
|
|
|
Family
|
|
|
Multi-
|
|
|
Real
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
Family
|
|
|
Construction
|
|
|
Family
|
|
|
Estate
|
|
|
Industrial
|
|
|
Land
|
|
|
Consumer
|
|
|
Total
|
|
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance balance attributable to loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment
|
|
$
|
665,033
|
|
|
$
|
101,716
|
|
|
$
|
0
|
|
|
$
|
98,725
|
|
|
$
|
300,860
|
|
|
$
|
252,000
|
|
|
$
|
0
|
|
|
$
|
1,418,334
|
|
Collectively evaluated for impairment
|
|
|
5,100,243
|
|
|
|
203,596
|
|
|
|
1,903,138
|
|
|
|
4,985,454
|
|
|
|
627,183
|
|
|
|
1,805,301
|
|
|
|
9,616
|
|
|
|
14,634,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending allowance balance
|
|
$
|
5,765,276
|
|
|
$
|
305,312
|
|
|
$
|
1,903,138
|
|
|
$
|
5,084,179
|
|
|
$
|
928,043
|
|
|
$
|
2,057,301
|
|
|
$
|
9,616
|
|
|
$
|
16,052,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
13,243,350
|
|
|
$
|
880,749
|
|
|
$
|
622,228
|
|
|
$
|
11,902,730
|
|
|
$
|
740,297
|
|
|
$
|
7,189,109
|
|
|
$
|
0
|
|
|
$
|
34,578,463
|
|
Loans collectively evaluated for impairment
|
|
|
180,404,558
|
|
|
|
1,239,018
|
|
|
|
58,789,996
|
|
|
|
221,936,205
|
|
|
|
34,662,439
|
|
|
|
23,959,404
|
|
|
|
2,110,297
|
|
|
|
523,101,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending loans balance
|
|
$
|
193,647,908
|
|
|
$
|
2,119,767
|
|
|
$
|
59,412,224
|
|
|
$
|
233,838,935
|
|
|
$
|
35,402,736
|
|
|
$
|
31,148,513
|
|
|
$
|
2,110,297
|
|
|
$
|
557,680,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
Part I FINANCIAL INFORMATION
The following table presents loans individually evaluated for impairment by class of
loan as of December 31, 2012 and the average recorded investment and interest income recognized by class for the six months ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
Three months ended December 31, 2012
|
|
|
Six months ended December 31, 2012
|
|
|
|
Unpaid
|
|
|
|
|
|
Allowance for
|
|
|
Average
|
|
|
Interest
|
|
|
Cash Basis
|
|
|
Average
|
|
|
Interest
|
|
|
Cash Basis
|
|
|
|
Principal
|
|
|
Recorded
|
|
|
Loan Losses
|
|
|
Recorded
|
|
|
Income
|
|
|
Interest
|
|
|
Recorded
|
|
|
Income
|
|
|
Interest
|
|
|
|
Balance
(1)
|
|
|
Investment
|
|
|
Allocated
|
|
|
Investment
|
|
|
Recognized
|
|
|
Recognized
|
|
|
Investment
|
|
|
Recognized
|
|
|
Recognized
|
|
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
5,968,794
|
|
|
$
|
5,335,175
|
|
|
$
|
|
|
|
$
|
5,360,606
|
|
|
$
|
18,738
|
|
|
$
|
18,738
|
|
|
$
|
5,205,370
|
|
|
$
|
38,975
|
|
|
$
|
38,975
|
|
1-4 Family Non-Owner Occupied
|
|
|
3,263,589
|
|
|
|
1,865,897
|
|
|
|
|
|
|
|
2,149,860
|
|
|
|
1,034
|
|
|
|
1,034
|
|
|
|
1,997,999
|
|
|
|
2,320
|
|
|
|
2,320
|
|
1-4 Family Second Mortgage
|
|
|
1,354,492
|
|
|
|
937,921
|
|
|
|
|
|
|
|
1,103,597
|
|
|
|
1,945
|
|
|
|
1,945
|
|
|
|
1,040,253
|
|
|
|
3,898
|
|
|
|
3,898
|
|
Home Equity Lines of Credit
|
|
|
2,605,295
|
|
|
|
2,117,775
|
|
|
|
|
|
|
|
1,899,879
|
|
|
|
57
|
|
|
|
57
|
|
|
|
1,933,521
|
|
|
|
889
|
|
|
|
889
|
|
Home Equity Investment Lines of Credit
|
|
|
585,037
|
|
|
|
335,518
|
|
|
|
|
|
|
|
216,467
|
|
|
|
|
|
|
|
|
|
|
|
246,229
|
|
|
|
375
|
|
|
|
375
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
678,780
|
|
|
|
306,868
|
|
|
|
|
|
|
|
323,334
|
|
|
|
|
|
|
|
|
|
|
|
307,507
|
|
|
|
|
|
|
|
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
790,997
|
|
|
|
790,119
|
|
|
|
|
|
|
|
570,867
|
|
|
|
8,682
|
|
|
|
8,682
|
|
|
|
545,187
|
|
|
|
19,664
|
|
|
|
19,664
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
8,064,952
|
|
|
|
7,763,645
|
|
|
|
|
|
|
|
8,763,178
|
|
|
|
51,328
|
|
|
|
51,328
|
|
|
|
8,501,429
|
|
|
|
100,935
|
|
|
|
100,935
|
|
Commercial Lines of Credit
|
|
|
1,580,903
|
|
|
|
1,579,148
|
|
|
|
|
|
|
|
936,296
|
|
|
|
10,634
|
|
|
|
10,634
|
|
|
|
1,096,176
|
|
|
|
22,908
|
|
|
|
22,908
|
|
Commercial Construction
|
|
|
828,491
|
|
|
|
643,888
|
|
|
|
|
|
|
|
643,869
|
|
|
|
|
|
|
|
|
|
|
|
643,872
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial Loans
|
|
|
554,260
|
|
|
|
201,318
|
|
|
|
|
|
|
|
293,675
|
|
|
|
64
|
|
|
|
64
|
|
|
|
220,622
|
|
|
|
96
|
|
|
|
96
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
4,199,470
|
|
|
|
3,260,804
|
|
|
|
|
|
|
|
3,731,165
|
|
|
|
11,285
|
|
|
|
11,285
|
|
|
|
3,757,472
|
|
|
|
20,611
|
|
|
|
20,611
|
|
Acquisition and Development Loans
|
|
|
4,955,309
|
|
|
|
2,340,159
|
|
|
|
|
|
|
|
2,696,683
|
|
|
|
16,310
|
|
|
|
16,310
|
|
|
|
2,357,474
|
|
|
|
16,310
|
|
|
|
16,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total with no related allowance recorded
|
|
$
|
35,430,369
|
|
|
$
|
27,478,235
|
|
|
$
|
|
|
|
$
|
28,689,476
|
|
|
$
|
120,077
|
|
|
$
|
120,077
|
|
|
$
|
27,853,111
|
|
|
$
|
226,981
|
|
|
$
|
226,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
229,342
|
|
|
$
|
229,087
|
|
|
$
|
39,981
|
|
|
$
|
230,786
|
|
|
$
|
1,296
|
|
|
$
|
1,296
|
|
|
$
|
229,936
|
|
|
$
|
2,602
|
|
|
$
|
2,602
|
|
1-4 Family Non-Owner Occupied
|
|
|
115,563
|
|
|
|
115,435
|
|
|
|
8,286
|
|
|
|
116,330
|
|
|
|
908
|
|
|
|
908
|
|
|
|
115,882
|
|
|
|
1,822
|
|
|
|
1,822
|
|
1-4 Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
164,449
|
|
|
|
|
|
|
|
|
|
|
|
123,168
|
|
|
|
|
|
|
|
|
|
Home Equity Lines of Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
619,168
|
|
|
|
|
|
|
|
|
|
|
|
481,327
|
|
|
|
|
|
|
|
|
|
Home Equity Investment Lines of Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
268,420
|
|
|
|
|
|
|
|
|
|
|
|
198,983
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
521,363
|
|
|
|
520,784
|
|
|
|
101,716
|
|
|
|
524,101
|
|
|
|
6,951
|
|
|
|
6,951
|
|
|
|
523,271
|
|
|
|
14,013
|
|
|
|
14,013
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
1,357,202
|
|
|
|
1,355,695
|
|
|
|
98,725
|
|
|
|
1,355,663
|
|
|
|
18,356
|
|
|
|
18,356
|
|
|
|
1,355,668
|
|
|
|
37,731
|
|
|
|
37,731
|
|
Commercial and Industrial Loans
|
|
|
300,860
|
|
|
|
300,526
|
|
|
|
300,860
|
|
|
|
300,519
|
|
|
|
3,927
|
|
|
|
3,927
|
|
|
|
300,520
|
|
|
|
7,897
|
|
|
|
7,897
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
134,146
|
|
|
|
133,997
|
|
|
|
252,000
|
|
|
|
134,729
|
|
|
|
2,020
|
|
|
|
2,020
|
|
|
|
134,364
|
|
|
|
4,050
|
|
|
|
4,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total with an allowance recorded
|
|
$
|
2,658,476
|
|
|
$
|
2,655,524
|
|
|
$
|
801,568
|
|
|
$
|
3,714,165
|
|
|
$
|
33,458
|
|
|
$
|
33,458
|
|
|
$
|
3,463,119
|
|
|
$
|
68,115
|
|
|
$
|
68,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
38,088,045
|
|
|
$
|
30,133,759
|
|
|
$
|
801,568
|
|
|
$
|
32,403,641
|
|
|
$
|
153,535
|
|
|
$
|
153,535
|
|
|
$
|
31,316,230
|
|
|
$
|
295,096
|
|
|
$
|
295,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
There are $11.5 million of loans individually identified for impairment accruing interest.
|
14
Part I FINANCIAL INFORMATION
The following table presents loans individually evaluated for impairment by class of loans as of
June 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2012
|
|
|
|
Unpaid
|
|
|
|
|
|
Allowance for
|
|
|
|
Principal
|
|
|
Recorded
|
|
|
Loan Losses
|
|
|
|
Balance
(1)
|
|
|
Investment
|
|
|
Allocated
|
|
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
6,380,803
|
|
|
$
|
5,671,079
|
|
|
$
|
|
|
1-4 Family Non-Owner Occupied
|
|
|
4,597,708
|
|
|
|
2,453,581
|
|
|
|
|
|
1-4 Family Second Mortgage
|
|
|
1,455,914
|
|
|
|
1,230,284
|
|
|
|
|
|
Home Equity Lines of Credit
|
|
|
1,834,685
|
|
|
|
1,832,595
|
|
|
|
|
|
Home Equity Investment Lines of Credit
|
|
|
157,120
|
|
|
|
156,943
|
|
|
|
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
678,779
|
|
|
|
354,986
|
|
|
|
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
635,053
|
|
|
|
622,228
|
|
|
|
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
10,902,253
|
|
|
|
9,286,679
|
|
|
|
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
617,240
|
|
|
|
616,536
|
|
|
|
|
|
Commercial Construction
|
|
|
828,490
|
|
|
|
643,863
|
|
|
|
|
|
Commercial and Industrial Loans
|
|
|
801,075
|
|
|
|
439,781
|
|
|
|
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
5,235,050
|
|
|
|
3,678,550
|
|
|
|
|
|
Acquisition and Development Loans
|
|
|
5,986,575
|
|
|
|
3,375,100
|
|
|
|
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total with no related allowance recorded
|
|
$
|
40,110,745
|
|
|
$
|
30,362,205
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
232,751
|
|
|
$
|
232,485
|
|
|
$
|
39,981
|
|
1-4 Family Non-Owner Occupied
|
|
|
117,360
|
|
|
|
117,226
|
|
|
|
8,286
|
|
1-4 Family Second Mortgage
|
|
|
247,293
|
|
|
|
247,011
|
|
|
|
14,685
|
|
Home Equity Lines of Credit
|
|
|
895,875
|
|
|
|
894,852
|
|
|
|
299,759
|
|
Home Equity Investment Lines of Credit
|
|
|
407,757
|
|
|
|
407,293
|
|
|
|
302,322
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
526,363
|
|
|
|
525,762
|
|
|
|
101,716
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
1,357,202
|
|
|
|
1,355,653
|
|
|
|
98,725
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial Loans
|
|
|
300,860
|
|
|
|
300,517
|
|
|
|
300,860
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
135,614
|
|
|
|
135,459
|
|
|
|
252,000
|
|
Acquisition and Development Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total with an allowance recorded
|
|
$
|
4,221,075
|
|
|
$
|
4,216,258
|
|
|
$
|
1,418,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans evaluated for impairment
|
|
$
|
44,331,820
|
|
|
$
|
34,578,463
|
|
|
$
|
1,418,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
There are $13.9 million of loans individually identified for impairment accruing interest.
|
15
Part I FINANCIAL INFORMATION
The following table presents loans individually evaluated for impairment by class of
loans as of December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
|
Three months ended December 31, 2011
|
|
|
Six months ended December 31, 2011
|
|
|
|
Unpaid
|
|
|
|
|
|
Allowance for
|
|
|
Average
|
|
|
Interest
|
|
|
Cash Basis
|
|
|
Average
|
|
|
Interest
|
|
|
Cash Basis
|
|
|
|
Principal
|
|
|
Recorded
|
|
|
Loan Losses
|
|
|
Recorded
|
|
|
Income
|
|
|
Interest
|
|
|
Recorded
|
|
|
Income
|
|
|
Interest
|
|
|
|
Balance
(1)
|
|
|
Investment
|
|
|
Allocated
|
|
|
Investment
|
|
|
Recognized
|
|
|
Recognized
|
|
|
Investment
|
|
|
Recognized
|
|
|
Recognized
|
|
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
4,127,635
|
|
|
$
|
4,121,552
|
|
|
$
|
|
|
|
$
|
5,106,332
|
|
|
$
|
54,961
|
|
|
$
|
54,961
|
|
|
$
|
5,777,675
|
|
|
$
|
102,434
|
|
|
$
|
102,434
|
|
1-4 Family Non-Owner Occupied
|
|
|
9,794,159
|
|
|
|
5,972,547
|
|
|
|
|
|
|
|
4,406,714
|
|
|
|
431
|
|
|
|
431
|
|
|
|
3,322,868
|
|
|
|
7,726
|
|
|
|
7,726
|
|
1-4 Family Second Mortgage
|
|
|
1,721,543
|
|
|
|
1,509,445
|
|
|
|
|
|
|
|
1,512,262
|
|
|
|
525
|
|
|
|
525
|
|
|
|
1,356,011
|
|
|
|
632
|
|
|
|
632
|
|
Home Equity Lines of Credit
|
|
|
931,227
|
|
|
|
929,855
|
|
|
|
|
|
|
|
862,529
|
|
|
|
1,283
|
|
|
|
1,283
|
|
|
|
888,297
|
|
|
|
1,865
|
|
|
|
1,865
|
|
Home Equity Investment Lines of Credit
|
|
|
195,615
|
|
|
|
195,327
|
|
|
|
|
|
|
|
252,470
|
|
|
|
3,888
|
|
|
|
3,888
|
|
|
|
212,873
|
|
|
|
4,205
|
|
|
|
4,205
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
1,780,693
|
|
|
|
929,473
|
|
|
|
|
|
|
|
553,035
|
|
|
|
875
|
|
|
|
875
|
|
|
|
427,660
|
|
|
|
2,197
|
|
|
|
2,197
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
1,009,214
|
|
|
|
638,899
|
|
|
|
|
|
|
|
472,151
|
|
|
|
|
|
|
|
|
|
|
|
1,029,494
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
10,315,938
|
|
|
|
8,351,813
|
|
|
|
|
|
|
|
7,803,394
|
|
|
|
|
|
|
|
|
|
|
|
7,345,661
|
|
|
|
25,577
|
|
|
|
25,577
|
|
Commercial Second Mortgage
|
|
|
161,611
|
|
|
|
133,314
|
|
|
|
|
|
|
|
351,926
|
|
|
|
|
|
|
|
|
|
|
|
424,784
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
4,650,965
|
|
|
|
4,644,111
|
|
|
|
|
|
|
|
3,631,479
|
|
|
|
|
|
|
|
|
|
|
|
3,387,082
|
|
|
|
2,186
|
|
|
|
2,186
|
|
Commercial Construction
|
|
|
828,491
|
|
|
|
643,587
|
|
|
|
|
|
|
|
506,491
|
|
|
|
|
|
|
|
|
|
|
|
460,784
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial Loans
|
|
|
6,138,581
|
|
|
|
5,385,826
|
|
|
|
|
|
|
|
3,970,791
|
|
|
|
|
|
|
|
|
|
|
|
3,166,703
|
|
|
|
|
|
|
|
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
4,406,980
|
|
|
|
3,210,086
|
|
|
|
|
|
|
|
2,276,039
|
|
|
|
621
|
|
|
|
621
|
|
|
|
1,838,732
|
|
|
|
1,428
|
|
|
|
1,428
|
|
Acquisition and Development Loans
|
|
|
7,840,884
|
|
|
|
2,923,748
|
|
|
|
|
|
|
|
1,516,694
|
|
|
|
8,370
|
|
|
|
8,370
|
|
|
|
1,157,537
|
|
|
|
8,370
|
|
|
|
8,370
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
616
|
|
|
|
616
|
|
|
|
|
|
|
|
616
|
|
|
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total with no related allowance recorded
|
|
$
|
53,903,536
|
|
|
$
|
39,589,583
|
|
|
$
|
|
|
|
$
|
33,222,307
|
|
|
$
|
71,570
|
|
|
$
|
71,570
|
|
|
$
|
30,796,161
|
|
|
$
|
157,236
|
|
|
$
|
157,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
814,174
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
772,054
|
|
|
$
|
719
|
|
|
$
|
719
|
|
1-4 Family Non-Owner Occupied
|
|
|
119,114
|
|
|
|
118,938
|
|
|
|
1,900
|
|
|
|
2,368,645
|
|
|
|
|
|
|
|
|
|
|
|
3,204,972
|
|
|
|
3,565
|
|
|
|
3,565
|
|
1-4 Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
228,256
|
|
|
|
|
|
|
|
|
|
|
|
240,977
|
|
|
|
|
|
|
|
|
|
Home Equity Lines of Credit
|
|
|
2,183,981
|
|
|
|
2,180,763
|
|
|
|
936,094
|
|
|
|
2,253,074
|
|
|
|
|
|
|
|
|
|
|
|
2,258,970
|
|
|
|
|
|
|
|
|
|
Home Equity Investment Lines of Credit
|
|
|
592,696
|
|
|
|
591,823
|
|
|
|
439,090
|
|
|
|
468,496
|
|
|
|
|
|
|
|
|
|
|
|
427,380
|
|
|
|
1,286
|
|
|
|
1,286
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
526,363
|
|
|
|
525,588
|
|
|
|
101,716
|
|
|
|
1,603,299
|
|
|
|
|
|
|
|
|
|
|
|
2,067,299
|
|
|
|
|
|
|
|
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
184,112
|
|
|
|
|
|
|
|
|
|
|
|
245,475
|
|
|
|
|
|
|
|
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,660
|
|
|
|
1,660
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
3,358,796
|
|
|
|
3,353,847
|
|
|
|
207,254
|
|
|
|
4,860,846
|
|
|
|
|
|
|
|
|
|
|
|
6,108,217
|
|
|
|
6,936
|
|
|
|
6,936
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68,440
|
|
|
|
|
|
|
|
|
|
|
|
45,627
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
195,706
|
|
|
|
195,418
|
|
|
|
195,706
|
|
|
|
97,709
|
|
|
|
|
|
|
|
|
|
|
|
65,139
|
|
|
|
|
|
|
|
|
|
Commercial Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,423,608
|
|
|
|
|
|
|
|
|
|
|
|
2,097,742
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial Loans
|
|
|
1,702,211
|
|
|
|
1,699,703
|
|
|
|
336,389
|
|
|
|
2,487,062
|
|
|
|
|
|
|
|
|
|
|
|
2,204,063
|
|
|
|
2,920
|
|
|
|
2,920
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
382,310
|
|
|
|
381,746
|
|
|
|
266,685
|
|
|
|
1,789,263
|
|
|
|
2,063
|
|
|
|
2,063
|
|
|
|
2,183,454
|
|
|
|
8,805
|
|
|
|
8,805
|
|
Acquisition and Development Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,794,352
|
|
|
|
|
|
|
|
|
|
|
|
6,550,927
|
|
|
|
24,176
|
|
|
|
24,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total with an allowance recorded
|
|
$
|
9,061,177
|
|
|
$
|
9,047,826
|
|
|
$
|
2,484,834
|
|
|
$
|
23,441,336
|
|
|
$
|
2,063
|
|
|
$
|
2,063
|
|
|
$
|
28,472,296
|
|
|
$
|
50,067
|
|
|
$
|
50,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
62,964,713
|
|
|
$
|
48,637,409
|
|
|
$
|
2,484,834
|
|
|
$
|
56,663,643
|
|
|
$
|
73,633
|
|
|
$
|
73,633
|
|
|
$
|
59,268,457
|
|
|
$
|
207,203
|
|
|
$
|
207,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
There are $19.0 million of loans individually identified for impairment accruing interest.
|
16
Part I FINANCIAL INFORMATION
Past Due and Non-Accrual Loans
The following table presents the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of
loan as of December 31, 2012 and June 30, 2012. Non-accrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified
impaired loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
June 30, 2012
|
|
|
|
|
|
|
Loans Past Due
|
|
|
|
|
|
Loans Past Due
|
|
|
|
|
|
|
Over 90 Days
|
|
|
|
|
|
Over 90 Days
|
|
|
|
Nonaccrual
(1)
|
|
|
Still
Accruing
(2)
|
|
|
Nonaccrual
(1)
|
|
|
Still
Accruing
(2)
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
2,838,333
|
|
|
$
|
|
|
|
$
|
2,871,746
|
|
|
$
|
|
|
1-4 Family Non-Owner Occupied
|
|
|
1,820,644
|
|
|
|
|
|
|
|
2,461,281
|
|
|
|
|
|
1-4 Family Second Mortgage
|
|
|
524,420
|
|
|
|
|
|
|
|
566,444
|
|
|
|
|
|
Home Equity Lines of Credit
|
|
|
2,120,667
|
|
|
|
|
|
|
|
2,727,447
|
|
|
|
|
|
Home Equity Investment Lines of Credit
|
|
|
336,167
|
|
|
|
|
|
|
|
564,235
|
|
|
|
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
307,622
|
|
|
|
|
|
|
|
355,355
|
|
|
|
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
499,920
|
|
|
|
|
|
|
|
324,602
|
|
|
|
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
3,346,164
|
|
|
|
|
|
|
|
3,310,170
|
|
|
|
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
1,580,903
|
|
|
|
216,783
|
|
|
|
616,537
|
|
|
|
|
|
Commercial Construction
|
|
|
644,808
|
|
|
|
|
|
|
|
644,072
|
|
|
|
|
|
Commercial and Industrial Loans
|
|
|
200,000
|
|
|
|
29,903
|
|
|
|
437,729
|
|
|
|
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
2,582,940
|
|
|
|
|
|
|
|
3,815,778
|
|
|
|
|
|
Acquisition and Development Loans
|
|
|
1,162,177
|
|
|
|
382,580
|
|
|
|
1,380,199
|
|
|
|
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
17,964,765
|
|
|
$
|
629,266
|
|
|
$
|
20,075,595
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-accrual status denotes loans which, in the opinion of management, the collection of additional interest is unlikely, or loans that meet the non-accrual criteria
established by regulatory authorities. Payments received on a non-accrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on an assessment of the collectability of the principal balance of the
loan.
|
(2)
|
At December 31, 2012 and June 30, 2012, the Company had balances of approximately $4.8 million and $6.3 million, respectively, in loans that have matured and
continue to make current payments. These loans are not considered past due as a result of their payment status being current.
|
17
Part I FINANCIAL INFORMATION
The following table presents the aging of the recorded investment in past due loans as
of December 31, 2012 by class of loan. Performing loans are accruing loans less than 90 days past due. Nonperforming loans are all loans not accruing or greater than 90 days past due. At December 31, 2012, the Company had a balance of
approximately $4.8 million in loans that were contractually past maturity but were not considered past due as a result of the payment status being current.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days
Past Due
|
|
|
60-89 Days
Past Due
|
|
|
Greater Than
90 Days
Past Due
|
|
|
Total
Past Due
|
|
|
Loans Not
Past Due
|
|
|
Total
|
|
Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
798,568
|
|
|
$
|
142,270
|
|
|
$
|
|
|
|
$
|
940,838
|
|
|
$
|
59,689,530
|
|
|
$
|
60,630,368
|
|
1-4 Family Non-Owner Occupied
|
|
|
313,332
|
|
|
|
124,144
|
|
|
|
|
|
|
|
437,476
|
|
|
|
28,140,818
|
|
|
|
28,578,294
|
|
1-4 Family Second Mortgage
|
|
|
375,955
|
|
|
|
17,591
|
|
|
|
|
|
|
|
393,546
|
|
|
|
26,942,849
|
|
|
|
27,336,395
|
|
Home Equity Lines of Credit
|
|
|
401,154
|
|
|
|
25,567
|
|
|
|
|
|
|
|
426,721
|
|
|
|
58,438,598
|
|
|
|
58,865,319
|
|
Home Equity Investment Lines of Credit
|
|
|
315,757
|
|
|
|
|
|
|
|
|
|
|
|
315,757
|
|
|
|
3,701,033
|
|
|
|
4,016,790
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,244,120
|
|
|
|
2,244,120
|
|
1-4 Family Construction Models/Speculative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
439,688
|
|
|
|
439,688
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
267,804
|
|
|
|
|
|
|
|
|
|
|
|
267,804
|
|
|
|
62,543,067
|
|
|
|
62,810,871
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,682
|
|
|
|
63,682
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
862,567
|
|
|
|
862,567
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
2,225,432
|
|
|
|
1,019,409
|
|
|
|
|
|
|
|
3,244,841
|
|
|
|
191,154,078
|
|
|
|
194,398,919
|
|
Commercial Second Mortgage
|
|
|
1,424,808
|
|
|
|
|
|
|
|
|
|
|
|
1,424,808
|
|
|
|
3,187,264
|
|
|
|
4,612,072
|
|
Commercial Lines of Credit
|
|
|
194,278
|
|
|
|
|
|
|
|
|
|
|
|
194,278
|
|
|
|
23,932,414
|
|
|
|
24,126,692
|
|
Commercial Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,258,411
|
|
|
|
9,258,411
|
|
Commercial and Industrial Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,340,731
|
|
|
|
52,340,731
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
|
|
|
|
15,440
|
|
|
|
|
|
|
|
15,440
|
|
|
|
5,455,938
|
|
|
|
5,471,378
|
|
Acquisition and Development Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,725,847
|
|
|
|
13,725,847
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,339,638
|
|
|
|
1,339,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Performing Loans
|
|
$
|
6,317,088
|
|
|
$
|
1,344,421
|
|
|
$
|
|
|
|
$
|
7,661,509
|
|
|
$
|
543,460,273
|
|
|
$
|
551,121,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
|
|
|
$
|
|
|
|
$
|
2,603,408
|
|
|
$
|
2,603,408
|
|
|
$
|
234,925
|
|
|
$
|
2,838,333
|
|
1-4 Family Non-Owner Occupied
|
|
|
|
|
|
|
|
|
|
|
1,544,010
|
|
|
|
1,544,010
|
|
|
|
276,634
|
|
|
|
1,820,644
|
|
1-4 Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
478,541
|
|
|
|
478,541
|
|
|
|
45,879
|
|
|
|
524,420
|
|
Home Equity Lines of Credit
|
|
|
75,913
|
|
|
|
|
|
|
|
1,809,490
|
|
|
|
1,885,403
|
|
|
|
235,264
|
|
|
|
2,120,667
|
|
Home Equity Investment Lines of Credit
|
|
|
|
|
|
|
|
|
|
|
336,167
|
|
|
|
336,167
|
|
|
|
|
|
|
|
336,167
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
|
|
|
|
|
|
|
|
190,256
|
|
|
|
190,256
|
|
|
|
117,366
|
|
|
|
307,622
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
499,920
|
|
|
|
499,920
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
3,226,328
|
|
|
|
3,226,328
|
|
|
|
119,836
|
|
|
|
3,346,164
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
117,768
|
|
|
|
|
|
|
|
997,000
|
|
|
|
1,114,768
|
|
|
|
712,821
|
|
|
|
1,827,589
|
|
Commercial Construction
|
|
|
|
|
|
|
|
|
|
|
644,808
|
|
|
|
644,808
|
|
|
|
|
|
|
|
644,808
|
|
Commercial and Industrial Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
200,000
|
|
|
|
200,000
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
|
|
|
|
|
|
|
|
2,108,755
|
|
|
|
2,108,755
|
|
|
|
474,185
|
|
|
|
2,582,940
|
|
Acquisition and Development Loans
|
|
|
|
|
|
|
|
|
|
|
1,544,757
|
|
|
|
1,544,757
|
|
|
|
|
|
|
|
1,544,757
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Nonperforming Loans
|
|
|
193,681
|
|
|
|
|
|
|
|
15,483,520
|
|
|
|
15,677,201
|
|
|
|
2,916,830
|
|
|
|
18,594,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
|
|
$
|
6,510,769
|
|
|
$
|
1,344,421
|
|
|
$
|
15,483,520
|
|
|
$
|
23,338,710
|
|
|
$
|
546,377,103
|
|
|
$
|
569,715,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
Part I FINANCIAL INFORMATION
The following table presents the aging of the recorded investment in past due loans as
of June 30, 2012 by class of loan. Performing loans are accruing loans less than 90 days past due. Nonperforming loans are all loans not accruing. At June 30, 2012, the Company had a balance of approximately $6.3 million in loans that were
contractually past maturity but were not considered past due as a result of the payment status being current.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days
Past Due
|
|
|
60-89 Days
Past Due
|
|
|
Greater Than
90 Days
Past Due
|
|
|
Total
Past Due
|
|
|
Loans Not
Past Due
|
|
|
Total
|
|
Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
584,430
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
584,430
|
|
|
$
|
55,220,719
|
|
|
$
|
55,805,149
|
|
1-4 Family Non-Owner Occupied
|
|
|
375,660
|
|
|
|
303,667
|
|
|
|
|
|
|
|
679,327
|
|
|
|
31,188,492
|
|
|
|
31,867,819
|
|
1-4 Family Second Mortgage
|
|
|
14,221
|
|
|
|
|
|
|
|
|
|
|
|
14,221
|
|
|
|
28,588,155
|
|
|
|
28,602,376
|
|
Home Equity Lines of Credit
|
|
|
114,558
|
|
|
|
23,230
|
|
|
|
|
|
|
|
137,788
|
|
|
|
62,968,449
|
|
|
|
63,106,237
|
|
Home Equity Investment Lines of Credit
|
|
|
200,657
|
|
|
|
|
|
|
|
|
|
|
|
200,657
|
|
|
|
4,874,516
|
|
|
|
5,075,173
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
145,771
|
|
|
|
|
|
|
|
145,771
|
|
|
|
367,695
|
|
|
|
513,466
|
|
1-4 Family Construction Models/Speculative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,250,946
|
|
|
|
1,250,946
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,573,280
|
|
|
|
53,573,280
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
145,476
|
|
|
|
145,476
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,368,866
|
|
|
|
5,368,866
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
744,536
|
|
|
|
|
|
|
|
|
|
|
|
744,536
|
|
|
|
194,006,468
|
|
|
|
194,751,004
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,743,721
|
|
|
|
5,743,721
|
|
Commercial Lines of Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,693,593
|
|
|
|
21,693,593
|
|
Commercial Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,079,839
|
|
|
|
7,079,839
|
|
Commercial and Industrial Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,965,008
|
|
|
|
34,965,007
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,261,518
|
|
|
|
8,261,518
|
|
Acquisition and Development Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,691,018
|
|
|
|
17,691,018
|
|
Consumer Loans
|
|
|
|
|
|
|
58,394
|
|
|
|
|
|
|
|
58,394
|
|
|
|
2,051,903
|
|
|
|
2,110,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Performing Loans
|
|
$
|
2,034,062
|
|
|
$
|
531,062
|
|
|
$
|
|
|
|
$
|
2,565,124
|
|
|
$
|
535,039,662
|
|
|
$
|
537,604,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
105,333
|
|
|
$
|
|
|
|
$
|
2,124,062
|
|
|
$
|
2,229,395
|
|
|
$
|
642,351
|
|
|
$
|
2,871,746
|
|
1-4 Family Non-Owner Occupied
|
|
|
|
|
|
|
|
|
|
|
2,405,774
|
|
|
|
2,405,774
|
|
|
|
55,507
|
|
|
|
2,461,281
|
|
1-4 Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
499,154
|
|
|
|
499,154
|
|
|
|
67,290
|
|
|
|
566,444
|
|
Home Equity Lines of Credit
|
|
|
14,607
|
|
|
|
|
|
|
|
2,371,962
|
|
|
|
2,386,569
|
|
|
|
340,878
|
|
|
|
2,727,447
|
|
Home Equity Investment Lines of Credit
|
|
|
|
|
|
|
134,195
|
|
|
|
430,041
|
|
|
|
564,236
|
|
|
|
|
|
|
|
564,236
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
|
|
|
|
|
|
|
|
235,945
|
|
|
|
235,945
|
|
|
|
119,410
|
|
|
|
355,355
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
|
|
|
|
|
|
|
|
324,602
|
|
|
|
324,602
|
|
|
|
|
|
|
|
324,602
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
3,166,992
|
|
|
|
3,166,992
|
|
|
|
143,178
|
|
|
|
3,310,170
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
|
|
|
|
122,129
|
|
|
|
494,407
|
|
|
|
616,536
|
|
|
|
|
|
|
|
616,536
|
|
Commercial Construction
|
|
|
|
|
|
|
|
|
|
|
644,072
|
|
|
|
644,072
|
|
|
|
|
|
|
|
644,072
|
|
Commercial and Industrial Loans
|
|
|
|
|
|
|
|
|
|
|
237,957
|
|
|
|
237,957
|
|
|
|
199,772
|
|
|
|
437,729
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
|
|
|
|
|
|
|
|
3,144,721
|
|
|
|
3,144,721
|
|
|
|
671,057
|
|
|
|
3,815,778
|
|
Acquisition and Development Loans
|
|
|
|
|
|
|
|
|
|
|
1,380,199
|
|
|
|
1,380,199
|
|
|
|
|
|
|
|
1,380,199
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Nonperforming Loans
|
|
$
|
119,940
|
|
|
$
|
256,324
|
|
|
$
|
17,459,888
|
|
|
$
|
17,836,152
|
|
|
$
|
2,239,443
|
|
|
$
|
20,075,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
|
|
$
|
2,154,002
|
|
|
$
|
787,386
|
|
|
$
|
17,459,888
|
|
|
$
|
20,401,276
|
|
|
$
|
537,279,105
|
|
|
$
|
557,680,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
Part I FINANCIAL INFORMATION
Troubled Debt Restructurings:
Included in loans individually impaired are loans with recorded investment of $12,432,285 and $15,590,705 for which the Company has
allocated $138,706 and $153,391of specific reserves to customers whose terms have been modified in troubled debt restructurings as of December 31, 2012 and June 30, 2012, respectively. Included in troubled debt restructurings are
$1,158,793 and $1,805,855 of restructured loans on non-accrual at December 31, 2012 and June 30, 2012, respectively. Of the restructured loans, both performing and non-accrual, two loans totaling $199,884 and two loans totaling $116,065
were not performing in accordance with their modified terms as of December 31, 2012 and June 30, 2012, respectively. There are no commitments to lend additional amounts at December 31, 2012 and June 30, 2012.
The following table presents the aggregate balance of loans by loan class whose terms have been modified in troubled debt restructurings
as of December 31, 2012 and June 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of Loans
|
|
|
Outstanding
Recorded
Investment
12/31/2012
|
|
|
Number
of Loans
|
|
|
Outstanding
Recorded
Investment
6/30/2012
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
|
18
|
|
|
$
|
3,305,542
|
|
|
|
20
|
|
|
$
|
3,775,715
|
|
1-4 Family Non-Owner Occupied
|
|
|
1
|
|
|
|
48,876
|
|
|
|
1
|
|
|
|
53,993
|
|
1-4 Family Second Mortgage
|
|
|
4
|
|
|
|
415,004
|
|
|
|
5
|
|
|
|
912,147
|
|
Home Equity Lines of Credit
|
|
|
1
|
|
|
|
63,781
|
|
|
|
1
|
|
|
|
63,782
|
|
Home Equity Investment Lines of Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction Models/Speculative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
1
|
|
|
|
291,077
|
|
|
|
1
|
|
|
|
297,979
|
|
Multi-Family Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
10
|
|
|
|
6,305,916
|
|
|
|
12
|
|
|
|
8,264,020
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Lines of Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial Loans
|
|
|
1
|
|
|
|
1,933
|
|
|
|
2
|
|
|
|
40,696
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and Development Loans
|
|
|
2
|
|
|
|
2,000,156
|
|
|
|
2
|
|
|
|
2,182,373
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
38
|
|
|
$
|
12,432,285
|
|
|
|
44
|
|
|
$
|
15,590,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The summary of activity for troubled debt restructured loans for the three and six months ending December 31, 2012
were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
December 31, 2012
|
|
|
December 31, 2012
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
Beginning Balance
|
|
$
|
15,345,654
|
|
|
$
|
15,590,705
|
|
Additions
|
|
|
|
|
|
|
2,100,541
|
|
Charge-offs
|
|
|
(146,165
|
)
|
|
|
(149,853
|
)
|
Payoffs or paydowns
|
|
|
(2,767,204
|
)
|
|
|
(5,109,108
|
)
|
|
|
|
|
|
|
|
|
|
Ending Balance
|
|
$
|
12,432,285
|
|
|
$
|
12,432,285
|
|
|
|
|
|
|
|
|
|
|
The summary of activity for troubled debt restructured loans for the three and six months ending December 31, 2011
was as follows:
20
Part I FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
December 31, 2011
|
|
|
December 31, 2011
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
Beginning Balance
|
|
$
|
15,964,012
|
|
|
$
|
15,883,869
|
|
Additions
|
|
|
2,423,648
|
|
|
|
2,763,159
|
|
Charge-offs
|
|
|
(929,488
|
)
|
|
|
(929,488
|
)
|
Payoffs or paydowns
|
|
|
(292,142
|
)
|
|
|
(551,510
|
)
|
|
|
|
|
|
|
|
|
|
Ending Balance
|
|
$
|
17,166,030
|
|
|
$
|
17,166,030
|
|
|
|
|
|
|
|
|
|
|
During the periods ended December 31, 2012 and June 30, 2012, the terms of certain loans to
borrowers experiencing financial difficulty were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension
of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. In order to determine whether a borrower is experiencing financial
difficulty, an evaluation is performed on the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Companys internal underwriting
policy.
No loans were modified as troubled debt restructurings during the three months ended December 31, 2012. Thus
there was no additional increase in the allowance for loan losses during the period due to troubled debt restructurings. The following table presents loans by class modified as troubled debt restructurings that occurred during the six-month period
ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2012
|
|
|
|
Number
of Loans
|
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
|
Post-Modification
Outstanding Recorded
Investment
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
|
1
|
|
|
$
|
295,692
|
|
|
$
|
161,655
|
|
Commercial and Industrial
|
|
|
1
|
|
|
$
|
44,149
|
|
|
$
|
38,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2
|
|
|
$
|
339,841
|
|
|
$
|
199,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents loans by class modified as troubled debt restructurings that occurred during
the three and six-month period ended December 31, 2011:
21
Part I FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2011
|
|
|
|
|
|
|
Pre-Modification
|
|
|
Post-Modification
|
|
|
|
Number
|
|
|
Outstanding Recorded
|
|
|
Outstanding Recorded
|
|
|
|
of Loans
|
|
|
Investment
|
|
|
Investment
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
|
|
|
|
$
|
|
|
|
$
|
|
|
1-4 Family Non-Owner Occupied
|
|
|
1
|
|
|
|
106,976
|
|
|
|
106,976
|
|
Commercial Real Estate
|
|
|
2
|
|
|
|
2,393,393
|
|
|
|
1,500,000
|
|
Commercial Second Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and Development
|
|
|
1
|
|
|
|
816,672
|
|
|
|
816,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4
|
|
|
$
|
3,317,041
|
|
|
$
|
2,423,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2011
|
|
|
|
|
|
|
Pre-Modification
|
|
|
Post-Modification
|
|
|
|
Number
|
|
|
Outstanding Recorded
|
|
|
Outstanding Recorded
|
|
|
|
of Loans
|
|
|
Investment
|
|
|
Investment
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
|
|
|
|
$
|
|
|
|
$
|
|
|
1-4 Family Non-Owner Occupied
|
|
|
1
|
|
|
|
106,976
|
|
|
|
106,976
|
|
Commercial Real Estate
|
|
|
3
|
|
|
|
2,437,542
|
|
|
|
1,544,149
|
|
Commercial Second Mortgage
|
|
|
1
|
|
|
|
295,362
|
|
|
|
295,362
|
|
Acquisition and Development
|
|
|
1
|
|
|
|
816,672
|
|
|
|
816,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
6
|
|
|
$
|
3,656,552
|
|
|
$
|
2,763,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The troubled debt restructurings described above resulted in an increase in the allowance for loan losses
by $36,395 and resulted in charge offs of $893,393 during the period ended December 31, 2011.
During the three months
ended December 31, 2012, two loans, modified as a troubled debt restructure, had a payment default within twelve months following the modification. The following table presents loans by class modified as troubled debt restructurings for which
there was a payment default within twelve months following the modification during the three months ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2012
|
|
|
|
Number
|
|
|
Outstanding Recorded
|
|
|
|
of Loans
|
|
|
Investment
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
|
1
|
|
|
$
|
|
|
Commercial and Industrial
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Allocations and charge offs resulted in no recorded investment at period end on these loans. The recorded
investment on the loans above prior to period end was $199,884.
22
Part I FINANCIAL INFORMATION
During the six months ended December 31, 2012, three loans, modified as a troubled debt
restructure, had a payment default within twelve months following the modification. The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the
modification during the six months ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2012
|
|
|
|
Number
|
|
|
Outstanding Recorded
|
|
|
|
of Loans
|
|
|
Investment
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
|
2
|
|
|
$
|
|
|
Commercial and Industrial
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
3
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Allocations and charge offs resulted in no recorded investment at period on these loans. The recorded
investment on the loans above prior to period end was $311,828.
During the three months ended December 31, 2011, two
loans, modified as a troubled debt restructure, had a payment default within twelve months following the modification. The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within
twelve months following the modification during the three months ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2011
|
|
|
|
Number
|
|
|
Outstanding Recorded
|
|
|
|
of Loans
|
|
|
Investment
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
1-4 Family Non-Owner Occupied
|
|
|
2
|
|
|
$
|
|
|
Commercial and Industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Allocations and charge offs resulted in no recorded investment at period end on these loans. The recorded
investment on the loans above prior to period end was $296,980.
23
Part I FINANCIAL INFORMATION
During the six months ended December 31, 2011, seventeen loans, modified as a
troubled debt restructure, had a payment default within twelve months following the modification. The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months
following the modification during the six months ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2011
|
|
|
|
Number
|
|
|
Outstanding Recorded
|
|
|
|
of Loans
|
|
|
Investment
|
|
Troubled Debt Restructurings:
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
|
16
|
|
|
$
|
|
|
Home Equity Lines of Credit
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
17
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Allocations and charge offs resulted in no recorded investment at period on these loans. The recorded
investment on the loans above prior to period end was $1,410,968.
For the purpose of this disclosure, a loan is considered to
be in payment default once it is 90 days contractually past due under the modified terms.
The troubled debt restructurings
that subsequently defaulted described above did not result in increasing the allowance or result in charge offs during the period ending December 31, 2012.
Credit Quality Indicators
The Company categorizes loans into risk strata
based on relevant borrower information about its ability to service debt. This information includes a review of current financial information, historic payment experience, credit documentation, relevant public information and other factors, as
determined by credit underwriting guidelines. Through its analysis of individual borrowers, the Company classifies each loan as to its credit risk. All loans considered non-homogeneous, specifically those that are deemed commercial and industrial or
commercial real estate loans, are subject to review by the Company, regardless of loan size. In practice, these loans are reviewed continually and changes to the risk rating, if necessary, occur on a quarterly basis. Loans that are considered
homogeneous, or those which fall into the categories of one-to-four family loans or into consumer loans, are not individually reviewed or rated annually. The payment performance of the homogeneous loans serves as the clear credit indicator of
classification into the categories of pass-rated loans or into substandard, non-accrual loans. Homogeneous loans that are less than 90 days past due are generally reported as pass-rated loans, unless the homogeneous loan is related to a rated
commercial and industrial or commercial real estate loan. Homogeneous loans which are greater than 90 days past due are placed on non-accrual and rated substandard. Payment performance indicators are based on performance through December 31,
2012. The Company uses the following definitions for adverse risk ratings:
Special Mention.
Loans classified as
special mention have a potential weakness that requires close attention. If left unattended, the potential weaknesses may result in further deterioration in the repayment prospects of the loan or the institutions credit position at a future
date.
Substandard.
Loans classified as substandard are protected inadequately by the current financial means of the
borrower or through the liquidation of pledged collateral. Loans classified as substandard have a well-defined weakness and without substantial intervention, there is a distinct possibility that the Company may incur a loss. As a matter of
practice, if the Company feels that a loss is imminent, it designates nearly all of these loans to charge off. Accordingly, the Company uses the loan classification of doubtful (as defined hereafter), sparingly.
24
Part I FINANCIAL INFORMATION
Doubtful.
Loans classified as doubtful have all of the inherent weaknesses of
those loans classified as substandard with the added structural weakness that the collection in full is highly unlikely. As such, this category is used sparingly by the Company.
As of December 31, 2012, and based on the most recent analysis performed by the Company, the risk category of loans by class of loan
was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass
(1)
|
|
|
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
60,359,963
|
|
|
$
|
0
|
|
|
$
|
3,108,738
|
|
|
$
|
0
|
|
|
$
|
63,468,701
|
|
1-4 Family Non-Owner Occupied
|
|
|
27,275,060
|
|
|
|
1,101,957
|
|
|
|
2,021,920
|
|
|
|
0
|
|
|
|
30,398,937
|
|
1-4 Family Second Mortgage
|
|
|
27,132,563
|
|
|
|
203,831
|
|
|
|
524,420
|
|
|
|
0
|
|
|
|
27,860,814
|
|
Home Equity Lines of Credit
|
|
|
58,815,734
|
|
|
|
49,585
|
|
|
|
2,120,667
|
|
|
|
0
|
|
|
|
60,985,986
|
|
Home Equity Investment Lines of Credit
|
|
|
3,771,086
|
|
|
|
200,846
|
|
|
|
381,026
|
|
|
|
0
|
|
|
|
4,352,958
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
1,722,757
|
|
|
|
0
|
|
|
|
521,363
|
|
|
|
0
|
|
|
|
2,244,120
|
|
1-4 Family Construction Models/Speculative
|
|
|
439,687
|
|
|
|
0
|
|
|
|
307,623
|
|
|
|
0
|
|
|
|
747,310
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
62,810,871
|
|
|
|
0
|
|
|
|
499,920
|
|
|
|
0
|
|
|
|
63,310,791
|
|
Multi-Family Second Mortgage
|
|
|
63,682
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
63,682
|
|
Multi-Family Construction
|
|
|
862,567
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
862,567
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
185,023,729
|
|
|
|
2,741,116
|
|
|
|
9,980,239
|
|
|
|
0
|
|
|
|
197,745,084
|
|
Commercial Second Mortgage
|
|
|
4,612,072
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
4,612,072
|
|
Commercial Lines of Credit
|
|
|
22,081,508
|
|
|
|
0
|
|
|
|
3,872,773
|
|
|
|
0
|
|
|
|
25,954,281
|
|
Commercial Construction
|
|
|
9,258,411
|
|
|
|
0
|
|
|
|
644,808
|
|
|
|
0
|
|
|
|
9,903,219
|
|
Commercial and Industrial Loans
|
|
|
51,425,238
|
|
|
|
85,001
|
|
|
|
1,030,492
|
|
|
|
0
|
|
|
|
52,540,731
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
5,433,465
|
|
|
|
37,913
|
|
|
|
2,582,940
|
|
|
|
0
|
|
|
|
8,054,318
|
|
Acquisition and Development Loans
|
|
|
12,909,175
|
|
|
|
0
|
|
|
|
2,361,429
|
|
|
|
0
|
|
|
|
15,270,604
|
|
Consumer Loans
|
|
|
1,339,638
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
1,339,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
535,337,206
|
|
|
$
|
4,420,249
|
|
|
$
|
29,958,358
|
|
|
$
|
0
|
|
|
$
|
569,715,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
Part I FINANCIAL INFORMATION
As of June 30, 2012, and based on the most recent analysis performed by the
Company, the risk category of loans by class of loan were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass
(1)
|
|
|
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
One-to-Four Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
55,526,297
|
|
|
$
|
0
|
|
|
$
|
3,150,598
|
|
|
$
|
0
|
|
|
$
|
58,676,895
|
|
1-4 Family Non-Owner Occupied
|
|
|
30,621,009
|
|
|
|
1,117,122
|
|
|
|
2,590,969
|
|
|
|
0
|
|
|
|
34,329,100
|
|
1-4 Family Second Mortgage
|
|
|
28,147,735
|
|
|
|
206,701
|
|
|
|
814,384
|
|
|
|
0
|
|
|
|
29,168,820
|
|
Home Equity Lines of Credit
|
|
|
63,030,206
|
|
|
|
49,585
|
|
|
|
2,753,893
|
|
|
|
0
|
|
|
|
65,833,684
|
|
Home Equity Investment Lines of Credit
|
|
|
4,828,651
|
|
|
|
200,886
|
|
|
|
609,872
|
|
|
|
0
|
|
|
|
5,639,409
|
|
One-to-Four Family Construction Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Construction
|
|
|
513,466
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
513,466
|
|
1-4 Family Construction Models/Speculative
|
|
|
724,177
|
|
|
|
0
|
|
|
|
882,124
|
|
|
|
0
|
|
|
|
1,606,301
|
|
Multi-Family Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family
|
|
|
52,448,152
|
|
|
|
1,124,756
|
|
|
|
324,974
|
|
|
|
0
|
|
|
|
53,897,882
|
|
Multi-Family Second Mortgage
|
|
|
145,476
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
145,476
|
|
Multi-Family Construction
|
|
|
5,368,866
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
5,368,866
|
|
Commercial Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
183,422,738
|
|
|
|
3,100,295
|
|
|
|
11,538,141
|
|
|
|
0
|
|
|
|
198,061,174
|
|
Commercial Second Mortgage
|
|
|
5,743,721
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
5,743,721
|
|
Commercial Lines of Credit
|
|
|
19,401,017
|
|
|
|
0
|
|
|
|
2,909,112
|
|
|
|
0
|
|
|
|
22,310,129
|
|
Commercial Construction
|
|
|
7,079,104
|
|
|
|
0
|
|
|
|
644,807
|
|
|
|
0
|
|
|
|
7,723,911
|
|
Commercial and Industrial Loans
|
|
|
34,042,381
|
|
|
|
91,634
|
|
|
|
1,268,721
|
|
|
|
0
|
|
|
|
35,402,736
|
|
Land Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lot Loans
|
|
|
8,217,784
|
|
|
|
39,374
|
|
|
|
3,820,138
|
|
|
|
0
|
|
|
|
12,077,296
|
|
Acquisition and Development Loans
|
|
|
16,486,141
|
|
|
|
0
|
|
|
|
2,585,076
|
|
|
|
0
|
|
|
|
19,071,217
|
|
Consumer Loans
|
|
|
2,110,297
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
2,110,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
517,857,218
|
|
|
$
|
5,930,353
|
|
|
$
|
33,892,809
|
|
|
$
|
0
|
|
|
$
|
557,680,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
There are $2.6 million in non-homogeneous loans which are subject to individual review for risk rating included in the pass risk category based on payment status as
they have not yet been individually reviewed.
|
NOTE 5 MORTGAGE BANKING ACTIVITIES
Loans held for sale at December 31, 2012 and June 30, 2012 were $30,088,784 and $25,062,786, respectively.
The Company utilizes the fair value option for accounting for its loans held for sale. The fair value of loans held for sale
exceeded the unpaid principal balance of these loans by $1,126,583 and $738,742 as of December 31, 2012 and June 30, 2012, respectively. The gain on loans held for sale as of December 31, 2012 was reported as mortgage banking
activities on the consolidated statement of operations. Interest on loans held for sale was reported in interest income.
The
Company services real estate loans for investors that are not included in the accompanying consolidated financial statements. Mortgage servicing rights are established based on the fair value of servicing rights retained on loans originated by the
Company and subsequently sold in the secondary market. Mortgage servicing rights are included in the consolidated statements of financial condition under the caption Prepaid expenses and other assets. At December 31, 2012 and
June 30, 2012, the mortgage loan servicing portfolio was approximately $1.0 billion.
26
Part I FINANCIAL INFORMATION
Originated mortgage servicing rights capitalized and amortized during the three- and
six-month periods ended December 31, 2012 and 2011 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
Servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
$
|
6,839,097
|
|
|
$
|
6,567,703
|
|
|
$
|
6,867,334
|
|
|
$
|
7,519,287
|
|
Additions
|
|
|
444,818
|
|
|
|
1,086,152
|
|
|
|
1,993,066
|
|
|
|
1,606,415
|
|
Amortized to expense
|
|
|
(1,005,997
|
)
|
|
|
(972,653
|
)
|
|
|
(1,978,303
|
)
|
|
|
(1,746,032
|
)
|
Change in valuation allowance
|
|
|
(161,679
|
)
|
|
|
15,392
|
|
|
|
(765,858
|
)
|
|
|
(683,076
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
|
|
$
|
6,116,239
|
|
|
$
|
6,696,594
|
|
|
$
|
6,116,239
|
|
|
$
|
6,696,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity in the valuation allowance for mortgage servicing rights over the three- and six-month periods
ended December 31, 2012, as compared with the same periods during 2011, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
Balance, beginning of period
|
|
$
|
(1,420,660
|
)
|
|
$
|
(1,002,469
|
)
|
|
$
|
(816,481
|
)
|
|
$
|
(304,001
|
)
|
Impairment charges
|
|
|
(161,679
|
)
|
|
|
0
|
|
|
|
(765,858
|
)
|
|
|
(698,468
|
)
|
Impairment recoveries
|
|
|
|
|
|
|
15,392
|
|
|
|
|
|
|
|
15,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(1,582,339
|
)
|
|
$
|
(987,077
|
)
|
|
$
|
(1,582,339
|
)
|
|
$
|
(987,077
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking activities net for the three and six months ended December 31, 2012 and 2011,
consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
Mortgage loan servicing fees
|
|
$
|
508,595
|
|
|
$
|
635,106
|
|
|
$
|
1,180,206
|
|
|
$
|
1,289,683
|
|
Amortization of mortgage loan servicing rights
|
|
|
(1,005,997
|
)
|
|
|
(972,653
|
)
|
|
|
(1,978,303
|
)
|
|
|
(1,746,033
|
)
|
Impairment of mortgage loan servicing rights
|
|
|
(161,679
|
)
|
|
|
15,392
|
|
|
|
(765,858
|
)
|
|
|
(683,076
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan servicing (loss), net
|
|
|
(659,081
|
)
|
|
|
(322,155
|
)
|
|
|
(1,563,955
|
)
|
|
|
(1,139,426
|
)
|
Changes in fair value of loans held for sale
|
|
|
475,875
|
|
|
|
(193,234
|
)
|
|
|
388,241
|
|
|
|
37,818
|
|
Changes in fair value of mortgage banking derivatives
|
|
|
189,546
|
|
|
|
(213,800
|
)
|
|
|
757,477
|
|
|
|
534,976
|
|
Realized gains on sale of loans
|
|
|
3,758,257
|
|
|
|
2,536,211
|
|
|
|
7,309,081
|
|
|
|
3,383,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on the sale of mortgage loans
|
|
$
|
3,764,597
|
|
|
$
|
1,807,022
|
|
|
$
|
6,890,844
|
|
|
$
|
2,817,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above amounts do not include non-interest expense related to mortgage banking activities.
At December 31, 2012 and June 30, 2012, the Company had interest rate-lock commitments on $86,368,249 and $65,996,365,
respectively, of loans intended for sale in the secondary market. These commitments are considered to be free-standing derivatives and the change in fair value is recorded in the consolidated financial statements. The fair value of these commitments
as of December 31, 2012 and June
27
Part I FINANCIAL INFORMATION
30, 2012 was estimated to be $2,504,056 and $1,773,453, respectively, as a reduction of accrued expenses and other liabilities in the consolidated statements of financial position. In order to
mitigate the interest rate risk represented by these interest rate-lock commitments, the Company entered into contracts to sell mortgage loans of $90,000,000 and $69,150,472 as of December 31, 2012 and June 30, 2012, respectively. These
contracts are also considered to be free-standing derivatives and the change in fair value is also recorded in the consolidated financial statements. The fair value of these contracts at December 31, 2012 and June 30, 2012 was estimated to
be $(90,844) and $(117,718) respectively. These amounts were netted against the fair value of interest rate-lock commitments recorded in accrued expenses and other liabilities. Changes in fair value for both types of derivatives are reported in
mortgage banking activities in the consolidated statements of operations.
NOTE 6 STOCK BASED COMPENSATION
The 2010 Equity Incentive Plan (the 2010 Plan) replaced the 2008 Equity Incentive Plan and all remaining
available shares from the 2008 Equity Incentive Plan were available for distribution under the 2010 Plan. Generally, the Company can issue incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock and other
stock-based compensation under the 2010 Plan. Generally, for incentive stock options, a percentage of the options awarded become exercisable on the date of grant and on each anniversary date of grant. The option period expires ten years from the
date of grant, except for awards to individuals who own more than 10% of the Companys outstanding common shares. Incentive stock options awarded to individuals owning more than 10% of the Companys outstanding common shares may only be
granted if the exercise price of such incentive stock options is at least 110% of the fair market value on the date of grant and the term of such options must expire not later than five years from the date of grant.
Previously, nonqualified stock options have been granted to directors, which vest immediately. The option period expires ten years from
the date of grant and the exercise price is the market price at the date of grant.
For the six months ended December 31,
2012, and 2011, compensation expense of $80,716 and $61,005, respectively, was recognized in the income statement related to the vesting of option awards.
As of December 31, 2012, there was $482,289 of compensation expense related to unvested awards not yet recognized in the consolidated financial statements. The weighted-average period over which this
expense is to be recognized is 2.5 years.
The aggregate intrinsic value of all options outstanding at December 31, 2012
was $186,856. The aggregate intrinsic value of all options that were exercisable at December 31, 2012 was $100,457.
Options outstanding at December 31, 2012 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding
|
|
|
Exercisable
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
Weighted
|
|
Range of
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
Exercise
|
|
|
|
|
Remaining
|
|
|
|
|
|
Exercise
|
|
Price
|
|
Number
|
|
|
Life
|
|
|
Number
|
|
|
Price
|
|
$1.79 to $4.42
|
|
|
759,800
|
|
|
|
8.58
|
|
|
|
303,965
|
|
|
$
|
2.15
|
|
$8.32 to $13.64
|
|
|
141,221
|
|
|
|
2.61
|
|
|
|
159,259
|
|
|
|
8.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
901,021
|
|
|
|
7.64
|
|
|
|
463,224
|
|
|
$
|
4.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
Part I FINANCIAL INFORMATION
A summary of stock-based compensation activity for the current fiscal year is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
December 31, 2012
|
|
|
December 31, 2012
|
|
|
|
Total options outstanding
|
|
|
Total options outstanding
|
|
|
|
|
|
|
Weighted-
|
|
|
|
|
|
Weighted-
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Exercise
|
|
|
|
|
|
Exercise
|
|
|
|
Shares
|
|
|
Price
|
|
|
Shares
|
|
|
Price
|
|
Options outstanding, beginning of period
|
|
|
738,556
|
|
|
$
|
4.28
|
|
|
|
740,256
|
|
|
$
|
4.15
|
|
Forfeited
|
|
|
(35,600
|
)
|
|
|
1.79
|
|
|
|
(42,800
|
)
|
|
|
2.01
|
|
Expired
|
|
|
(35,935
|
)
|
|
|
8.38
|
|
|
|
(40,435
|
)
|
|
|
8.63
|
|
Exercised
|
|
|
(40,000
|
)
|
|
|
1.90
|
|
|
|
(40,000
|
)
|
|
|
1.90
|
|
Granted
|
|
|
274,000
|
|
|
|
2.20
|
|
|
|
284,000
|
|
|
|
2.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options outstanding, end of period
|
|
|
901,021
|
|
|
$
|
3.54
|
|
|
|
901,021
|
|
|
$
|
3.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options exercisable, end of period
|
|
|
463,224
|
|
|
$
|
4.32
|
|
|
|
463,224
|
|
|
$
|
4.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The weighted-average remaining contractual life of options outstanding as of December 31, 2012 was
7.6 years. The weighted-average remaining contractual life of vested options outstanding as of December 31, 2012 was 5.7 years.
The fair value for stock options granted during the six months ended December 31, 2012, were determined at the date of grant using a Black-Scholes options-pricing model and the following assumptions:
|
|
|
|
|
|
|
December 31,
|
|
|
|
2012
|
|
Expected weighted average risk-free interest rate
|
|
|
0.83
|
%
|
Expected weighted average life (in years)
|
|
|
6.00
|
|
Expected volatility
|
|
|
56.75
|
%
|
Expected dividend yield
|
|
|
0.00
|
%
|
The weighted-average fair value of these grants was $1.17 per option. The expected average risk-free rate
is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the life of the option. The expected average life represents the weighted-average period of time that options granted are expected to be
outstanding giving consideration to vesting schedules, historical exercise and forfeiture patterns. Expected volatility is based on historical volatilities of the Companys common shares. The expected dividend yield is based on historical
information.
There were 420,790 restricted shares issued to directors and executive officers with a weighted average fair
value of $1.84 per share at December 31, 2012. During the six months ended December 31, 2012, the Company issued 77,937 restricted stock awards to directors of the Company in connection with the reinstitution of a directors
compensation plan. This grant received prior approval from the OCC. The total fair value of restricted shares issued at December 31, 2012 was $1.84 per share. As of December 31, 2012, there was $349,847 of compensation expense related to
unvested awards not yet recognized in the consolidated financial statements. The weighted-average period of time over which this expense is to be recognized was 1.55 years at December 31, 2012.
29
Part I FINANCIAL INFORMATION
A summary of changes in the Companys restricted shares for the six months ended
December 31, 2012 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Grant-Date
|
|
Nonvested Shares
|
|
Shares
|
|
|
Fair Value
|
|
Nonvested at July 1, 2012
|
|
|
162,333
|
|
|
$
|
303,537
|
|
Granted
|
|
|
77,937
|
|
|
|
157,433
|
|
Vested
|
|
|
(54,667
|
)
|
|
|
(102,173
|
)
|
Forfeited
|
|
|
(5,000
|
)
|
|
|
(8,950
|
)
|
|
|
|
|
|
|
|
|
|
Nonvested at December 31, 2012
|
|
|
180,603
|
|
|
$
|
349,847
|
|
|
|
|
|
|
|
|
|
|
There were 1,977,563 shares available for future issuance under the 2010 Plan at December 31, 2012.
NOTE 7 EARNINGS PER SHARE
The following tables disclose the income (loss) per share for the three and six months ended December 31, 2012 and
December 31, 2011, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
|
2012
|
|
|
2011 (revised)
|
|
|
|
Income
|
|
|
|
|
|
Per Share
|
|
|
Income
|
|
|
|
|
|
Per Share
|
|
|
|
(Loss)
|
|
|
Shares
|
|
|
Amount
|
|
|
(Loss)
|
|
|
Shares
|
|
|
Amount
|
|
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
2,665,762
|
|
|
|
25,832,271
|
|
|
$
|
0.10
|
|
|
$
|
(1,909,121
|
)
|
|
|
25,669,718
|
|
|
$
|
(0.07
|
)
|
Effect of dilutive securities - stock options and warrants
|
|
$
|
0
|
|
|
|
382197
|
|
|
$
|
0.00
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0.00
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
2,665,762
|
|
|
|
26,214,468
|
|
|
$
|
0.10
|
|
|
$
|
(1,909,121
|
)
|
|
|
25,669,718
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
Six months ended December 31,
|
|
|
|
2012
|
|
|
2011 (revised)
|
|
|
|
Income
|
|
|
|
|
|
Per Share
|
|
|
Income
|
|
|
|
|
|
Per Share
|
|
|
|
(Loss)
|
|
|
Shares
|
|
|
Amount
|
|
|
(Loss)
|
|
|
Shares
|
|
|
Amount
|
|
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
4,063,365
|
|
|
|
25,923,342
|
|
|
$
|
0.16
|
|
|
$
|
(2,765,962
|
)
|
|
|
25,669,718
|
|
|
$
|
(0.11
|
)
|
Effect of dilutive securities - stock options and warrants
|
|
$
|
0
|
|
|
|
382,197
|
|
|
$
|
0.01
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0.00
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
4,063,365
|
|
|
|
26,305,539
|
|
|
$
|
0.15
|
|
|
$
|
(2,765,962
|
)
|
|
|
25,669,718
|
|
|
$
|
(0.11
|
)
|
30
Part I FINANCIAL INFORMATION
There were 468,561 and 753,460 options not considered in the diluted earnings per share
calculation for the six months ended December 31, 2012 and 2011, respectively, because they were not dilutive as the exercise price is higher than the average stock price for the periods. There were 193,061 options not considered in the diluted
earnings per share calculation for the three months ended December 31, 2012. There was no dilution attributable to stock options for the three and six months ended December 2011, since the Company was in a net loss position for the periods.
Also included for consideration in the diluted earnings per share calculation for the three and six-month period ended
December 31, 2012 were warrants to acquire common shares issued as part of two separate exchange offerings. The warrants issued on September 3, 2009 include warrants to purchase 797,347 common shares, which expired on September 3,
2011. The warrants issued on March 16, 2010 include warrants to purchase 1,246,179 common shares and are exercisable at any time before March 16, 2015 at a price of $1.75 per share. The warrants issued on March 16, 2010 were
considered for potential dilution for the three and six months ended December 31, 2012.
NOTE 8 FAIR VALUE
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in
the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of
the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for
similar assets or liabilities, quoted market prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a companys own assumptions about the assumptions that market participants would use to price an asset or liability.
The Company used the following methods and significant assumptions to estimate fair value.
Securities and mortgage-backed securities
. The fair value of securities available for sale is determined by obtaining quoted
market prices on nationally recognized securities exchanges, if available (Level 1 inputs). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities. The fair value of
mortgage-backed securities is determined through matrix pricing. This is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on
the securities relationship to other benchmark quoted securities (Level 2 inputs).
Loans held for sale at fair
value
. The fair value of loans held for sale, which consists of single-family residential loans, is determined using quoted secondary market prices, adjusted for specific attributes of that loan or other observable data, such as outstanding
commitments from third-party investors (Level 2 inputs).
Mortgage banking pipeline derivatives
. The fair value of loan
commitments is measured using current market rates for the associated mortgage loans (Level 2 inputs). The fair value of mandatory forward sales contracts is measured using secondary market pricing for similar product types (Level 2 inputs).
31
Part I FINANCIAL INFORMATION
Impaired loans
. The fair value of impaired loans with specific allocations of the
allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made
in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available as well as type and status of the property. Such adjustments are usually significant and typically result in a
Level 3 classification of the inputs for determining fair value.
Other real estate owned.
Nonrecurring adjustments to
certain commercial and residential real estate properties classified as other real estate owned are measured at fair value, less costs to sell. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation
approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data
approach. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.
Appraisals for both collateral dependent impaired loans and other real estate owned are performed by certified general appraisers for commercial properties or certified residential appraisers for
residential properties, whose qualifications and licenses have been reviewed and verified by the Company. When the appraisals are received, Credit Administration reviews the assumptions and approaches utilized in the appraisal as well as the overall
resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. The Company currently utilizes a 9% discount for selling costs and it is applied to all properties, regardless of size. This
discount is supported by the Companys most recent analysis. Also, an additional 10% discount is applied to properties with appraisals performed greater than 12 months ago.
Loan Servicing Rights.
On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the
rights as compared to carrying amount. If the carrying amount on an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level based
on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against
available market data (Level 2).
32
Part I FINANCIAL INFORMATION
Assets and liabilities measured at fair value on a recurring basis at December 31,
2012 and June 30, 2012, respectively, are summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
Significant
|
|
|
|
|
|
|
Active Markets for
|
|
|
Significant Other
|
|
|
Unobservable
|
|
|
|
December 31,
|
|
|
Identical Assets
|
|
|
Observable Inputs
|
|
|
Inputs
|
|
|
|
2012
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FNMA structured note
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Trust preferred securities
|
|
|
20,153,148
|
|
|
|
|
|
|
|
20,153,148
|
|
|
|
|
|
Mortgage-backed GSE securities
|
|
|
19,607,960
|
|
|
|
|
|
|
|
19,607,960
|
|
|
|
|
|
Loans held-for-sale
|
|
|
30,088,784
|
|
|
|
|
|
|
|
30,088,784
|
|
|
|
|
|
Interest rate-lock commitments
|
|
|
2,504,056
|
|
|
|
|
|
|
|
2,504,056
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandatory forward sales contracts
|
|
|
(90,844
|
)
|
|
|
|
|
|
|
(90,844
|
)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2012
|
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
|
Significant
Unobservable
Inputs
(Level
3)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FNMA structured note
|
|
$
|
2,009,320
|
|
|
$
|
|
|
|
$
|
2,009,320
|
|
|
$
|
|
|
Trust preferred securities
|
|
|
21,261,762
|
|
|
|
|
|
|
|
21,261,762
|
|
|
|
|
|
Mortgage-backed GSE securities
|
|
|
15,386,963
|
|
|
|
|
|
|
|
15,386,963
|
|
|
|
|
|
Loans held-for-sale
|
|
|
25,062,786
|
|
|
|
|
|
|
|
25,062,786
|
|
|
|
|
|
Interest rate-lock commitments
|
|
|
1,773,453
|
|
|
|
|
|
|
|
1,773,453
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandatory forward sales contracts
|
|
|
(117,718
|
)
|
|
|
|
|
|
|
(117,718
|
)
|
|
|
|
|
There were no transfers between Level 1 and Level 2 in the period ended December 31, 2012 or
June 30, 2012. The Companys policy is to transfer assets or liabilities from one level to another when the methodology to obtain the fair value changes such that there are more or fewer unobservable inputs.
33
Part I FINANCIAL INFORMATION
Assets measured at fair value on a nonrecurring basis at December 31, 2012 and
June 30, 2012, respectively are summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
Significant
|
|
|
|
|
|
|
Active Markets for
|
|
|
Significant Other
|
|
|
Unobservable
|
|
|
|
December 31,
|
|
|
Identical Assets
|
|
|
Observable Inputs
|
|
|
Inputs
|
|
|
|
2012
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family
|
|
$
|
3,352,791
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
3,352,791
|
|
1-4 Family Construction
|
|
|
711,619
|
|
|
|
|
|
|
|
|
|
|
|
711,619
|
|
Multi-Family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate
|
|
|
3,642,044
|
|
|
|
|
|
|
|
|
|
|
|
3,642,044
|
|
Commercial Non-Real Estate
|
|
|
500,860
|
|
|
|
|
|
|
|
|
|
|
|
500,860
|
|
Land
|
|
|
3,430,210
|
|
|
|
|
|
|
|
|
|
|
|
3,430,210
|
|
Real estate owned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family
|
|
|
2,220,297
|
|
|
|
|
|
|
|
|
|
|
|
2,220,297
|
|
Commercial Real Estate
|
|
|
2,037,153
|
|
|
|
|
|
|
|
|
|
|
|
2,037,153
|
|
Land
|
|
|
3,486,387
|
|
|
|
|
|
|
|
|
|
|
|
3,486,387
|
|
Impaired mortgage servicing rights
|
|
|
5,896,619
|
|
|
|
|
|
|
|
5,896,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
Significant
|
|
|
|
|
|
|
Active Markets for
|
|
|
Significant Other
|
|
|
Unobservable
|
|
|
|
June 30,
|
|
|
Identical Assets
|
|
|
Observable Inputs
|
|
|
Inputs
|
|
|
|
2012
|
|
|
(Level 1)
|
|
|
(Level 2)
|
|
|
(Level 3)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family
|
|
$
|
4,033,385
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
4,033,385
|
|
1-4 Family Construction
|
|
|
660,862
|
|
|
|
|
|
|
|
|
|
|
|
660,862
|
|
Multi-Family
|
|
|
324,974
|
|
|
|
|
|
|
|
|
|
|
|
324,974
|
|
Commercial Real Estate
|
|
|
5,688,747
|
|
|
|
|
|
|
|
|
|
|
|
5,688,747
|
|
Commercial Non-Real Estate
|
|
|
238,229
|
|
|
|
|
|
|
|
|
|
|
|
238,229
|
|
Land
|
|
|
4,223,074
|
|
|
|
|
|
|
|
|
|
|
|
4,223,074
|
|
Real estate owned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family
|
|
|
2,042,573
|
|
|
|
|
|
|
|
|
|
|
|
2,042,573
|
|
Commercial Real Estate
|
|
|
923,262
|
|
|
|
|
|
|
|
|
|
|
|
923,262
|
|
Land
|
|
|
2,914,174
|
|
|
|
|
|
|
|
|
|
|
|
2,914,174
|
|
Impaired mortgage servicing rights
|
|
|
6,499,157
|
|
|
|
|
|
|
|
6,499,157
|
|
|
|
|
|
Impaired loans that are measured for impairment using the fair value of the collateral for collateral
dependent loans had a principal balance of $22.1 million after the application of impaired charge-offs of $9.7 million, with a specific valuation allowance of $0.8 million at December 31, 2012. At June 30, 2012, impaired loans that are
measured for impairment using the fair value of the collateral for collateral dependent loans had a principal balance of $26.3 million after the application of impaired charge-offs of $9.7 million, with a specific valuation allowance of $1.4
million. The provision for loan losses related to changes in the fair value of impaired loans was $3.5 million and ($0.6) million for the six months ended December 31, 2012 and 2011, respectively.
Tranches of mortgage servicing rights carried at fair value totaled $5.9 million, which is made up of the outstanding balance of $7.5
million, net of a valuation allowance of $1.6 million at December 31, 2012. During the six months ended December 31, 2012 and 2011, the Company recognized an impairment charge of $.8 million and $.7 million respectively. During the three
months ended December 31, 2012 the Company recognized an impairment of $ 0.2 million as compared to a small recovery for the three months ended December 31, 2011. Tranches of mortgage servicing rights carried at fair value
34
Part I FINANCIAL INFORMATION
totaled $6.5 million, which is made up of the outstanding balance of $7.3 million, net of a valuation allowance of $0.8 million at June 30, 2012. Mortgage servicing rights are valued by an
independent third party that is active in purchasing and selling these instruments. The value reflects the characteristics of the underlying loans discounted at a market multiple.
Other real estate owned which is maintained at fair value less costs to sell, had a net carrying amount of $7,743,837 and $7,733,578 at
December 31, 2012, and June 30, 2012, respectively. The carrying amount of other real estate owned is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying amount exceeds the fair
value, less estimated selling costs. For the six months ended December 31, 2012, the Company recognized a net loss of $117,041 on the disposal of other real estate owned compared to the loss of $243,957 recognized for the six months ended
December 31, 2011. The Company also recorded a provision for other real estate owned losses of $453,462 and $874,823 for the six months ended December 31, 2012 and 2011, respectively. For the three months ended December 31, 2012 and
December 31, 2011 the Company recognized a net loss of $.1 million and $.4 million respectively. The Company also recorded a provision for other real estate owned losses of $.2 million and $.8 million for the three months ended
December 31, 2012 and December 31, 2011 respectively.
The direct write-downs recognized for the period are the
result of obtaining updated appraisal valuations and reflect declining property values while holding the asset. The Company values all other real estate owned by obtaining updated appraisal valuations every twelve months. There have been no upward
adjustments made in determining fair value.
The following table presents quantitative information about Level 3 fair value
measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value at
December 31, 2012
|
|
|
Valuation
Techniques
|
|
Unobservable
Inputs
|
|
Range and
Weighted
Average
|
Impaired loans
|
|
$
|
11,637,524
|
|
|
Appraisal value -
sales
comparison
approach
|
|
Adjustment by
management to
reflect current
conditions and
selling costs
|
|
10-15% and 12%
|
|
|
|
|
|
Real estate owned
|
|
|
7,743,837
|
|
|
Appraisal value -
sales comparison
approach
|
|
Adjustment by
management to
reflect current
conditions and
selling costs
|
|
9-10% and 10%
|
|
|
|
|
|
Impaired mortgage servicing rights
|
|
|
5,896,619
|
|
|
Discounted cash
flow
|
|
Discount Rate
|
|
N/A
|
The Company has elected the fair value option for loans held for sale. These loans are intended for sale
and are hedged with derivative instruments, and the Company believes the fair value is the best indicator of the valuation of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the
Companys policy on loans held for investment. None of these loans are 90 days or more past due or on nonaccrual as of December 31, 2012 and June 30, 2012.
35
Part I FINANCIAL INFORMATION
As of December 31, 2012 and June 30, 2012, the aggregate fair value,
contractual balance (including accrued interest), and gain or loss was as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
June 30,
|
|
|
|
2012
|
|
|
2012
|
|
Aggregate fair value
|
|
$
|
30,088,784
|
|
|
$
|
25,062,786
|
|
Contractual balance
|
|
|
28,961,801
|
|
|
|
24,324,044
|
|
The total amount of gains (losses) from changes in fair value included in earnings for the six months
ended December 31, 2012 and 2011 for loans held for sale were $388,244 and $37,818 respectively.
The carrying amounts
and estimated fair values of financial instruments at December 31, 2012 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2012
|
|
|
|
Carrying
Value
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
(dollars in thousands)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and amounts due from financial institutions
|
|
$
|
18,245
|
|
|
$
|
18,245
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
18,245
|
|
Interest-bearing deposits
|
|
|
76,213
|
|
|
|
76,213
|
|
|
|
|
|
|
|
|
|
|
|
76,213
|
|
Securities available for sale
|
|
|
39,761
|
|
|
|
|
|
|
|
39,761
|
|
|
|
|
|
|
|
39,761
|
|
Loans receivable, net
|
|
|
554,576
|
|
|
|
|
|
|
|
|
|
|
|
588,657
|
|
|
|
588,657
|
|
Loans receivable held for sale, net
|
|
|
30,089
|
|
|
|
|
|
|
|
30,089
|
|
|
|
|
|
|
|
30,089
|
|
Federal Home Loan Bank stock
|
|
|
12,811
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Accrued interest receivable
|
|
|
2,231
|
|
|
|
|
|
|
|
108
|
|
|
|
2,123
|
|
|
|
2,231
|
|
Commitments to make loans intended to be sold
|
|
|
2,504
|
|
|
|
|
|
|
|
2,504
|
|
|
|
|
|
|
|
2,504
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and savings
|
|
|
(290,924
|
)
|
|
|
(290,924
|
)
|
|
|
|
|
|
|
|
|
|
|
(290,924
|
)
|
Time deposits
|
|
|
(343,389
|
)
|
|
|
|
|
|
|
(344,640
|
)
|
|
|
|
|
|
|
(344,640
|
)
|
Notes payable
|
|
|
(993
|
)
|
|
|
|
|
|
|
(993
|
)
|
|
|
|
|
|
|
(993
|
)
|
Advances from the Federal Home Loan Bank
|
|
|
(35,000
|
)
|
|
|
|
|
|
|
(36,963
|
)
|
|
|
|
|
|
|
(36,963
|
)
|
Mandatory forward sale contract
|
|
|
(91
|
)
|
|
|
(91
|
)
|
|
|
|
|
|
|
|
|
|
|
(91
|
)
|
Accrued interest payable
|
|
|
(124
|
)
|
|
|
(117
|
)
|
|
|
(7
|
)
|
|
|
|
|
|
|
(124
|
)
|
36
Part I FINANCIAL INFORMATION
The carrying amount and estimated fair values of financial instruments at June 30,
2012 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at June 30, 2012
|
|
|
|
Carrying
Value
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
(dollars in thousands)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and amounts due from financial institutions
|
|
$
|
5,841
|
|
|
$
|
5,841
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
5,841
|
|
Interest-bearing deposits
|
|
|
114,270
|
|
|
|
114,270
|
|
|
|
0
|
|
|
|
0
|
|
|
|
114,270
|
|
Securities available for sale
|
|
|
38,658
|
|
|
|
0
|
|
|
|
38,658
|
|
|
|
0
|
|
|
|
38,658
|
|
Loans receivable, net
|
|
|
541,628
|
|
|
|
0
|
|
|
|
0
|
|
|
|
569,603
|
|
|
|
569,603
|
|
Loans receivable held for sale, net
|
|
|
25,063
|
|
|
|
0
|
|
|
|
25,063
|
|
|
|
0
|
|
|
|
25,063
|
|
Federal Home Loan Bank stock
|
|
|
12,811
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Accrued interest receivable
|
|
|
2,047
|
|
|
|
0
|
|
|
|
174
|
|
|
|
1,873
|
|
|
|
2,047
|
|
Commitments to make loans intended to be sold
|
|
|
1,773
|
|
|
|
0
|
|
|
|
1,773
|
|
|
|
0
|
|
|
|
1,773
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and savings
|
|
|
(271,412
|
)
|
|
|
(271,412
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
(271,412
|
)
|
Time deposits
|
|
|
(384,567
|
)
|
|
|
0
|
|
|
|
(385,872
|
)
|
|
|
0
|
|
|
|
(385,872
|
)
|
Notes payable
|
|
|
(1,046
|
)
|
|
|
0
|
|
|
|
(1,046
|
)
|
|
|
0
|
|
|
|
(1,046
|
)
|
Advances from the Federal Home Loan Bank
|
|
|
(35,000
|
)
|
|
|
0
|
|
|
|
(37,222
|
)
|
|
|
0
|
|
|
|
(37,222
|
)
|
Mandatory forward sale contract
|
|
|
(118
|
)
|
|
|
0
|
|
|
|
(118
|
)
|
|
|
0
|
|
|
|
(118
|
)
|
Accrued interest payable
|
|
|
(120
|
)
|
|
|
(112
|
)
|
|
|
(8
|
)
|
|
|
0
|
|
|
|
(120
|
)
|
The estimated fair value amounts have been determined by the Company using available market information
and appropriate valuation methodologies. However, considerable judgment is involved in interpreting market data so as to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts
the Company could realize in a current market exchange and may not necessarily be the exit price. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
The Company used the following methods and assumptions to estimate fair value for items not described above:
Cash and amounts due from financial institutions, interest-bearing deposits, and federal funds sold.
The carrying amounts are a
reasonable estimate of fair value because of the short maturity of these instruments and therefore are classified as Level 1.
Loans receivable
. For performing variable-rate loans that reprice frequently and with no significant change in credit risk, fair
values are based on carrying values resulting in a Level 3 classification. For other performing loans receivable, fair value is estimated by discounting contractual cash flows adjusted for prepayment estimates using discount rates based on secondary
market sources adjusted to reflect differences in servicing and credit costs resulting in a Level 3 classification.
Federal Home Loan Bank stock.
It was not practical to determine the fair value of FHLB stock due to restrictions placed on its
transferability.
37
Part I FINANCIAL INFORMATION
Accrued interest receivable and accrued interest payable
. The carrying amount is
a reasonable estimate of the fair value. The fair value level classification is consistent with the related final instrument.
Demand deposits and time deposits.
The fair value of demand deposits, savings accounts, and certain money market deposits is the
amount payable on demand at the reporting date resulting in a Level 1 classification. The fair value of fixed-maturity certificates of deposit is estimated using discounted cash flows and rates currently offered for deposits of similar remaining
maturities resulting in a Level 2 classification.
Note payable.
The carrying amount is a reasonable estimate of the
fair value resulting in a Level 2 classification.
Federal Home Loan Bank Advance.
The fair value of the Companys
FHLB debt is estimated based on the current rates offered to the Company for debt of the same remaining maturities resulting in a Level 2 classification.
NOTE 9 NOTE PAYABLE
On November 24, 2008, one of the Companys subsidiaries obtained a $1.4 million dollar loan from another
financial institution with a principal balance of $992,778 as of December 31, 2012. The loan was a refinance of a line of credit loan and is collateralized by the Companys Solon, Ohio headquarters building. The note carries a variable
interest rate that adjusts to The Wall Street Journal published prime lending rate plus 50 basis points. The loan required the payment of interest only for nine months and then converted to an amortizing loan for a term of 15 years. At
December 31, 2012, the interest rate was 3.8%.
NOTE 10 REGULATORY MATTERS
The Company and the Bank are subject to various regulatory capital requirements, which are now administered by the
Board of Governors of the Federal Reserve System (the Federal Reserve Board) and the Office of the Comptroller of the Currency (OCC). Failure to meet minimum capital requirements can result in certain mandatory and possibly
additional discretionary actions by banking regulators that, if undertaken, could have a direct material effect on the Companys consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt
corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Banks assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Banks
capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
Prompt corrective action regulations provide five classifications: well capitalized; adequately capitalized; undercapitalized; significantly undercapitalized; and critically undercapitalized, although
these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and
capital restoration plans are required. The most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that
management believes have changed the Banks category.
Federal regulations require savings institutions to maintain
certain minimum levels of regulatory capital. An institution that fails to comply with its regulatory capital requirements must obtain approval of a capital plan and can be subject to a capital directive and certain restrictions on its operations.
At December 31, 2012, the adjusted total minimum regulatory capital regulations require institutions to have
38
Part I FINANCIAL INFORMATION
a minimum tangible capital to adjusted total assets ratio of 1.5%; a minimum leverage ratio of core (Tier 1) capital to adjusted total assets of 4.0%; a minimum ratio of core (Tier 1) capital to
risk-weighted assets of 4.0%; and a minimum ratio of total capital to risk-weighted assets of 8.0%. At December 31, 2012 and 2011, respectively, the Bank exceeded all of the aforementioned regulatory capital requirements. For more information,
please see Item 2, Managements Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources.
On October 19, 2009, the Company and the Bank each entered into a Stipulation and Consent to the Issuance of Order to Cease and Desist with the Office of Thrift Supervision (the OTS),
whereby the Company and the Bank each consented to the issuance of an Order to Cease and Desist (the Company Order and the Bank Order) without admitting or denying that grounds existed for the OTS to initiate an
administrative proceeding against the Company or the Bank. Effective July 21, 2011, the OCC and the Federal Reserve Board succeeded to all powers, authorities, rights, and duties of the OTS relating to the enforcement of the Bank and Company
Orders, respectively, as a result of the regulatory transition under the Dodd-Frank Wall Street Reform and Consumer Protection Act. On August 27, 2012, the Bank was released from the Bank Order. On December 15, 2012, the Company was
released from the Company Order.
Regulations limit capital distributions by savings institutions. Generally, capital
distributions are limited to undistributed net income for the current and prior two years.
39
Part I FINANCIAL INFORMATION
At December 31, 2012, the Bank was in compliance with regulatory capital
requirements as set forth below (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To Be Well
|
|
|
|
|
|
|
|
|
|
|
|
|
Required
|
|
|
Capitalized Under
|
|
|
Required Under
|
|
|
|
|
|
|
|
|
|
For Capital
|
|
|
Prompt Corrective
|
|
|
Regulatory
|
|
|
|
Actual
|
|
|
Adequacy Purposes
|
|
|
Action Regulations
|
|
|
Bank Order
|
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital to risk weighted assets
|
|
$
|
81,834
|
|
|
|
12.93
|
%
|
|
$
|
50,650
|
|
|
|
8.00
|
%
|
|
$
|
63,312
|
|
|
|
10.00
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Tier 1 (Core) Capital to risk weighted assets
|
|
|
73,831
|
|
|
|
11.66
|
%
|
|
|
25,325
|
|
|
|
4.00
|
%
|
|
|
37,987
|
|
|
|
6.00
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Tier 1 (Core) Capital to adjusted total assets
|
|
|
73,831
|
|
|
|
9.36
|
%
|
|
|
31,542
|
|
|
|
4.00
|
%
|
|
|
39,428
|
|
|
|
5.00
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Tangible Capital to adjusted total assets
|
|
|
73,831
|
|
|
|
9.36
|
%
|
|
|
11,828
|
|
|
|
1.50
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
At June 30, 2012, the Bank was in compliance with regulatory capital requirements as set forth below
(dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVISED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To Be Well
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Required
|
|
|
Capitalized Under
|
|
|
Required Under
|
|
|
|
|
|
|
|
|
|
For Capital
|
|
|
Prompt Corrective
|
|
|
Regulatory
|
|
|
|
Actual
|
|
|
Adequacy Purposes
|
|
|
Action Regulations
|
|
|
Bank Order
|
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
June 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital to risk weighted assets
|
|
$
|
77,332
|
|
|
|
13.00
|
%
|
|
$
|
47,605
|
|
|
|
8.00
|
%
|
|
$
|
59,506
|
|
|
|
10.00
|
%
|
|
$
|
71,407
|
|
|
|
12.00
|
%
|
Tier 1 (Core) Capital to risk weighted assets
|
|
|
69,787
|
|
|
|
11.73
|
%
|
|
|
23,802
|
|
|
|
4.00
|
%
|
|
|
35,704
|
|
|
|
6.00
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Tier 1 (Core) Capital to adjusted total assets
|
|
|
69,787
|
|
|
|
8.66
|
%
|
|
|
32,224
|
|
|
|
4.00
|
%
|
|
|
40,280
|
|
|
|
5.00
|
%
|
|
|
64,448
|
|
|
|
8.00
|
%
|
Tangible Capital to adjusted total assets
|
|
|
69,787
|
|
|
|
8.66
|
%
|
|
|
12,084
|
|
|
|
1.50
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
NOTE 11 FEDERAL INCOME TAXES
Management recorded net deferred tax assets at December 31, 2012 of $3.5 million. A valuation allowance is
established to reduce the deferred tax asset if it is more likely than not that the related tax benefits will not be realized. A full valuation allowance was established as of June 30, 2011. When determining the amount of deferred tax assets
that are more-likely-than-not to be realized, and therefore recorded as a benefit, the Company conducts a regular assessment of all available information. This information includes, but is not limited to, taxable income in prior periods, projected
future income, and projected future reversals of deferred tax items. Based on these criteria, the Company determined that it was necessary to carry a valuation allowance against deferred tax assets of $3.5 million at December 31, 2012 to reduce
the carrying amount of the Companys net deferred tax asset to zero. At June 30, 2012, the Company recorded a deferred tax asset of $4.8 million with a valuation allowance of $4.8 million reducing the carrying amount of the Companys
net deferred tax asset to zero.
40