Virginia
|
82-0545425
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
|
Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
|
Non-accelerated
filer ¨ (Do
not check if a smaller reporting company)
|
Smaller
reporting company x
|
·
|
In
the Corporation’s Consolidated Balance Sheets, on page 2 of the Original
Filing, total assets was incorrectly stated as “$800,266” (in thousands)
and should have been stated as “$804,838” (in thousands). This
amount has been corrected in the Corporation’s Consolidated Balance Sheets
on page 2 of this Amendment.
|
·
|
In
Note 8 – Derivatives of the Corporation’s Notes to the Unaudited
Consolidated Financial Statements, in the fourth paragraph on page 15 of
the Original Filing, the fair value of derivative financial instruments at
September 30, 2010 was incorrectly stated as “$1.1 million” and should
have been stated as “$845 thousand.” This amount has been
corrected in the Corporation’s Notes to the Unaudited Consolidated
Financial Statements on page 15 of this
Amendment.
|
PART I
|
FINANCIAL INFORMATION
|
||
Item
1.
|
Financial
Statements (Unaudited)
|
||
Consolidated
Balance Sheets, September 30, 2010 and December 31, 2009
(Audited)
|
Page
2
|
||
Consolidated
Statements of Income, three months ended September 30, 2010 and
2009
|
Page
3
|
||
Consolidated
Statements of Income, nine months ended September 30, 2010 and
2009
|
Page
4
|
||
Consolidated
Statements of Changes in Shareholders' Equity, nine months ended September
30, 2010 and 2009
|
Page
5
|
||
Consolidated
Statements of Cash Flows, nine months ended September 30, 2010 and
2009
|
Page
6
|
||
Notes
to Consolidated Financial Statements (Unaudited)
|
Page
7
|
||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
Page
21
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
Page
38
|
|
Item
4.
|
Controls
and Procedures
|
Page
39
|
|
PART II
|
OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
Page
39
|
|
Item1A.
|
Risk
Factors
|
Page
39
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Page
40
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
Page
40
|
|
Item
4.
|
(Removed
and Reserved)
|
Page
40
|
|
Item
5.
|
Other
Information
|
Page
40
|
|
Item
6.
|
Exhibits
|
Page
41
|
|
Signatures
|
Page
42
|
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 13,012 | $ | 5,965 | ||||
Interest-bearing
deposits in other banks and federal funds sold
|
19,493 | 25,256 | ||||||
Securities
available for sale, at fair value
|
148,203 | 43,095 | ||||||
Restricted
stock
|
4,572 | 4,743 | ||||||
Loans
held for sale, at fair value
|
123,048 | 76,232 | ||||||
Loans
|
478,327 | 486,564 | ||||||
Allowance
for loan losses
|
(9,722 | ) | (9,127 | ) | ||||
Net
loans
|
468,605 | 477,437 | ||||||
Premises
and equipment
|
8,552 | 8,759 | ||||||
Accrued
interest receivable
|
2,653 | 2,409 | ||||||
Other
real estate owned
|
3,276 | 5,111 | ||||||
Other
assets
|
13,424 | 17,872 | ||||||
Total
assets
|
$ | 804,838 | $ | 666,879 | ||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
deposits
|
$ | 87,446 | $ | 69,782 | ||||
Savings
and interest-bearing deposits
|
160,897 | 138,988 | ||||||
Time
deposits
|
358,614 | 257,875 | ||||||
Total
deposits
|
606,957 | 466,645 | ||||||
Other
liabilities
|
||||||||
Short-term
borrowings
|
69,815 | 64,249 | ||||||
Long-term
borrowings
|
37,587 | 46,330 | ||||||
Subordinated
debentures
|
6,186 | 6,186 | ||||||
Other
liabilities and accrued expenses
|
11,638 | 15,691 | ||||||
Total
liabilities
|
$ | 732,183 | $ | 599,101 | ||||
SHAREHOLDERS'
EQUITY
|
||||||||
Common
stock, par value, $0.835; authorized, 60,000,000 shares; issued and
outstanding, 10,459,826 shares at September 30, 2010 and 10,537,428
shares at December 31, 2009
|
$ | 8,734 | $ | 8,799 | ||||
Additional
paid in capital
|
18,207 | 18,552 | ||||||
Retained
earnings
|
45,391 | 40,377 | ||||||
Accumulated
other comprehensive income, net
|
323 | 50 | ||||||
Total
shareholders' equity
|
72,655 | 67,778 | ||||||
Total
liabilities and shareholders' equity
|
$ | 804,838 | $ | 666,879 |
Three Months Ended September 30,
|
||||||||
2010
|
2009
|
|||||||
Interest
and Dividend Income
|
||||||||
Interest
and fees on loans
|
$ | 8,190 | $ | 8,470 | ||||
Interest
on deposits in other banks
|
58 | 34 | ||||||
Interest
and dividends on securities
|
583 | 712 | ||||||
Total
interest and dividend income
|
8,831 | 9,216 | ||||||
Interest
Expense
|
||||||||
Interest
on deposits
|
1,888 | 2,469 | ||||||
Interest
on short-term borrowings
|
155 | 310 | ||||||
Interest
on long-term borrowings
|
372 | 469 | ||||||
Interest
on subordinated debentures
|
57 | 57 | ||||||
Total
interest expense
|
2,472 | 3,305 | ||||||
Net
interest income
|
6,359 | 5,911 | ||||||
Provision
for loan losses
|
575 | 1,387 | ||||||
Net
interest income after provision for loan losses
|
5,784 | 4,524 | ||||||
Noninterest
Income
|
||||||||
Service
fees on deposit accounts
|
164 | 137 | ||||||
Gain
on sale of loans
|
10,457 | 9,928 | ||||||
Mortgage
broker fee income
|
430 | 244 | ||||||
Other
income (loss)
|
(641 | ) | 614 | |||||
Total
noninterest income
|
10,410 | 10,923 | ||||||
Noninterest
Expense
|
||||||||
Salaries
and employee benefits
|
5,979 | 6,010 | ||||||
Occupancy
and equipment
|
613 | 615 | ||||||
Other
operating expenses
|
5,677 | 5,408 | ||||||
Total
noninterest expense
|
12,269 | 12,033 | ||||||
Income
before income taxes
|
3,925 | 3,414 | ||||||
Income
tax expense
|
1,489 | 1,260 | ||||||
NET
INCOME
|
$ | 2,436 | $ | 2,154 | ||||
Earnings
per common share:
|
||||||||
Basic
|
$ | 0.23 | $ | 0.21 | ||||
Diluted
|
$ | 0.23 | $ | 0.21 | ||||
Average
outstanding shares:
|
||||||||
Basic
|
10,474,543 | 10,451,416 | ||||||
Diluted
|
10,495,734 | 10,486,755 |
Nine Months Ended September 30,
|
||||||||
2010
|
2009
|
|||||||
Interest
and Dividend Income
|
||||||||
Interest
and fees on loans
|
$ | 24,039 | $ | 25,918 | ||||
Interest
on deposits in other banks
|
172 | 112 | ||||||
Interest
and dividends on securities
|
1,537 | 2,553 | ||||||
Total
interest and dividend income
|
25,748 | 28,583 | ||||||
Interest
Expense
|
||||||||
Interest
on deposits
|
5,905 | 8,287 | ||||||
Interest
on short-term borrowings
|
615 | 958 | ||||||
Interest
on long-term borrowings
|
1,135 | 1,460 | ||||||
Interest
on subordinated debentures
|
162 | 185 | ||||||
Total
interest expense
|
7,817 | 10,890 | ||||||
Net
interest income
|
17,931 | 17,693 | ||||||
Provision
for loan losses
|
1,321 | 4,816 | ||||||
Net
interest income after provision for loan losses
|
16,610 | 12,877 | ||||||
Noninterest
Income
|
||||||||
Service
fees on deposit accounts
|
490 | 401 | ||||||
Gain
on sale of loans
|
24,095 | 38,267 | ||||||
Mortgage
broker fee income
|
1,162 | 573 | ||||||
Other
income (loss)
|
(2,037 | ) | 4,894 | |||||
Total
noninterest income
|
23,710 | 44,135 | ||||||
Noninterest
Expense
|
||||||||
Salaries
and employee benefits
|
16,595 | 21,444 | ||||||
Occupancy
and equipment
|
1,943 | 1,895 | ||||||
Other
operating expenses
|
13,276 | 21,123 | ||||||
Total
noninterest expense
|
31,814 | 44,462 | ||||||
Income
before income taxes
|
8,506 | 12,550 | ||||||
Income
tax expense
|
3,176 | 4,962 | ||||||
NET
INCOME
|
$ | 5,330 | $ | 7,588 | ||||
Earnings
per common share:
|
||||||||
Basic
|
$ | 0.51 | $ | 0.73 | ||||
Diluted
|
$ | 0.50 | $ | 0.73 | ||||
Average
outstanding shares:
|
||||||||
Basic
|
10,539,924 | 10,354,897 | ||||||
Diluted
|
10,559,122 | 10,400,753 |
Accumulated
|
||||||||||||||||||||
Other
|
||||||||||||||||||||
Additional
|
Compre-
|
|||||||||||||||||||
Common
|
Paid in
|
Retained
|
hensive
|
|||||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
||||||||||||||||
Balance,
December 31, 2009
|
$ | 8,799 | $ | 18,552 | $ | 40,377 | $ | 50 | $ | 67,778 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
- | - | 5,330 | - | 5,330 | |||||||||||||||
Other
comprehensive income, unrealized holding gains arising during the period
(net of tax, $141)
|
- | - | - | 273 | 273 | |||||||||||||||
Total
comprehensive income
|
5,603 | |||||||||||||||||||
Stock
option exercises (15,000 shares)
|
13 | 39 | - | - | 52 | |||||||||||||||
Dividend
reinvestment plan (74,721 shares)
|
62 | 355 | - | - | 417 | |||||||||||||||
Repurchased
under share repurchase program (167,323 shares)
|
(140 | ) | (875 | ) | - | - | (1,015 | ) | ||||||||||||
Cash
dividend
|
- | - | (316 | ) | - | (316 | ) | |||||||||||||
Stock-based
compensation expense recognized in earnings
|
- | 136 | - | - | 136 | |||||||||||||||
|
||||||||||||||||||||
Balance,
September 30, 2010
|
$ | 8,734 | $ | 18,207 | $ | 45,391 | $ | 323 | $ | 72,655 | ||||||||||
Balance,
December 31, 2008
|
$ | 8,551 | $ | 17,410 | $ | 31,157 | $ | 827 | $ | 57,945 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
- | - | 7,588 | - | 7,588 | |||||||||||||||
Other
comprehensive loss, unrealized holding losses arising during the period
(net of tax, $179)
|
- | - | - | (347 | ) | (347 | ) | |||||||||||||
Total
comprehensive income
|
7,241 | |||||||||||||||||||
Stock
option exercises (163,452 shares)
|
136 | 415 | - | - | 551 | |||||||||||||||
Dividend
reinvestment plan (103,938 shares)
|
87 | 440 | - | - | 527 | |||||||||||||||
Repurchased
under share repurchase program (25,130 shares)
|
(21 | ) | (94 | ) | - | - | (115 | ) | ||||||||||||
Cash
dividend
|
- | - | (310 | ) | - | (310 | ) | |||||||||||||
Stock-based
compensation expense recognized in earnings
|
- | 130 | - | - | 130 | |||||||||||||||
Balance,
September 30, 2009
|
$ | 8,753 | $ | 18,301 | $ | 38,435 | $ | 480 | $ | 65,969 |
Nine Months Ended
September 30,
|
||||||||
2010
|
2009
|
|||||||
Cash
Flows from Operating Activities
|
||||||||
Net
income
|
$ | 5,330 | $ | 7,588 | ||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Provision
for loan losses
|
1,321 | 4,816 | ||||||
Provision
for losses on mortgage loans sold
|
2,400 | 3,349 | ||||||
Net
gains/losses on sales and write-down of other real estate
owned
|
1,315 | 883 | ||||||
Gain
on sale of securities
|
(186 | ) | (984 | ) | ||||
Deferred
tax benefit
|
(79 | ) | (1,008 | ) | ||||
Stock-based
compensation
|
136 | 130 | ||||||
(Decrease)
increase in valuation allowance on derivatives
|
(680 | ) | 176 | |||||
Amortization
of premiums on securities
|
105 | 38 | ||||||
Depreciation
and amortization
|
336 | 443 | ||||||
Loss
on disposal of assets
|
6 | 2 | ||||||
Changes
in assets and liabilities:
|
||||||||
(Decrease)
increase in valuation of loans held for sale carried at fair
value
|
(2,822 | ) | 1,708 | |||||
(Increase)
decrease in loans held for sale
|
(43,994 | ) | 22,204 | |||||
Decrease
in other assets
|
4,711 | 1,290 | ||||||
Decrease
in other liabilities
|
(6,356 | ) | (4,140 | ) | ||||
Net
cash (used in) provided by operating activities
|
(38,457 | ) | 36,495 | |||||
Cash
Flows from Investing Activities
|
||||||||
Proceeds
from maturities and calls of securities available for sale
|
90,222 | 43,705 | ||||||
Proceeds
from sale of securities
|
20,186 | 5,023 | ||||||
Purchases
of securities available for sale
|
(214,849 | ) | (30,766 | ) | ||||
Net
increase (decrease) in loans
|
4,226 | (7,689 | ) | |||||
Proceeds
from sale of equipment
|
- | 23 | ||||||
Proceeds
from sales of other real estate owned
|
3,805 | 350 | ||||||
Purchases
of premises and equipment
|
(122 | ) | (37 | ) | ||||
Net
cash (used in) provided by investing activities
|
(96,532 | ) | 10,609 | |||||
Cash
Flows from Financing Activities
|
||||||||
Net
increase in demand, interest-bearing demand and savings
deposits
|
39,573 | 42,021 | ||||||
Net
increase (decrease) in time deposits
|
100,740 | (14,679 | ) | |||||
Increase
(decrease) in securities sold under agreement to
repurchase
|
10,129 | (13,080 | ) | |||||
Net
decrease in other short-term borrowings
|
(4,564 | ) | (34,809 | ) | ||||
Net
(decrease) increase in long-term borrowings
|
(8,743 | ) | 6,193 | |||||
Proceeds
from issuance of common stock
|
469 | 1,078 | ||||||
Repurchase
of common stock
|
(1,015 | ) | (116 | ) | ||||
Dividends
paid
|
(316 | ) | (310 | ) | ||||
Net
cash provided by (used in) financing activities
|
136,273 | (13,702 | ) | |||||
Increase
in cash and cash equivalents
|
1,284 | 33,402 | ||||||
Cash
and Cash Equivalents
|
||||||||
Beginning
|
31,221 | 22,482 | ||||||
Ending
|
$ | 32,505 | $ | 55,884 | ||||
Supplemental
Disclosures of Cash Flow Information
|
||||||||
Cash
payments for interest
|
$ | 7,796 | $ | 10,714 | ||||
Cash
payments for income taxes
|
$ | 2,822 | $ | 7,112 | ||||
Supplemental
Disclosures of Noncash Investing Activities
|
||||||||
Unrealized
gain (loss) on securities available for sale
|
$ | 414 | $ | (526 | ) | |||
Transfers
of loans held for investment to other real estate owned
|
$ | 3,285 | $ | 441 |
Nine Months Ended
|
||||
September 30, 2010
|
||||
Expected
life of options granted in years
|
2.90 | |||
Risk-free
interest rate
|
1.39 | % | ||
Expected
volatility of stock
|
48 | % | ||
Annual
expected dividend yield
|
1 | % | ||
Fair
value of granted options
|
$ | 214,552 | ||
Non-vested
options
|
200,950 |
Weighted Avg.
|
||||||||||||||||
Remaining
|
||||||||||||||||
Number of
|
Weighted Avg.
|
Contractual Term
|
Aggregate Intrinsic
|
|||||||||||||
Options
|
Exercise Price
|
in Years
|
Value
|
|||||||||||||
Outstanding
at beginning of year
|
439,079 | $ | 6.44 | 1.56 | $ | 222,770 | ||||||||||
Granted
|
103,500 | $ | 5.97 | 2.90 | $ | - | ||||||||||
Exercised
|
(15,000 | ) | $ | 3.45 | - | $ | - | |||||||||
Lapsed
or canceled
|
(107,220 | ) | $ | 8.24 | 0.26 | $ | - | |||||||||
Outstanding
at September 30, 2010
|
420,359 | $ | 5.97 | 1.58 | $ | 195,371 | ||||||||||
Exercisable
at September 30, 2010
|
219,409 | $ | 6.81 | 0.88 | $ | 50 |
Nine Months Ended
|
||||
September 30, 2009
|
||||
Expected
life of options granted in years
|
2.84 | |||
Risk-free
interest rate
|
1.09 | % | ||
Expected
volatility of stock
|
47 | % | ||
Annual
expected dividend yield
|
1 | % | ||
Fair
value of granted options
|
$ | 182,921 | ||
Non-vested
options
|
181,675 |
Weighted Avg.
|
||||||||||||||||
Remaining
|
||||||||||||||||
Number of
|
Weighted Avg.
|
Contractual Term
|
Aggregate Intrinsic
|
|||||||||||||
Options
|
Exercise Price
|
in Years
|
Value
|
|||||||||||||
Outstanding
at beginning of year
|
589,617 | $ | 5.96 | 1.57 | $ | 284,885 | ||||||||||
Granted
|
105,750 | $ | 4.06 | 2.84 | $ | - | ||||||||||
Exercised
|
(163,452 | ) | $ | 3.37 | 0.06 | $ | - | |||||||||
Lapsed
or canceled
|
(53,836 | ) | $ | 6.85 | 0.74 | $ | - | |||||||||
Outstanding
at September 30, 2009
|
478,079 | $ | 6.32 | 1.67 | $ | 329,279 | ||||||||||
Exercisable
at September 30, 2009
|
296,404 | $ | 7.10 | 1.22 | $ | 102,233 |
September 30, 2010
|
||||||||||||||||
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Estimated
Fair Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S.
Government agencies
|
$ | 145,036 | $ | 526 | $ | (60 | ) | $ | 145,502 | |||||||
Mortgage
backed securities
|
706 | 9 | - | 715 | ||||||||||||
Municipals
- taxable
|
470 | 6 | - | 476 | ||||||||||||
CRA
mutual fund
|
1,500 | 10 | - | 1,510 | ||||||||||||
$ | 147,712 | $ | 551 | $ | (60 | ) | $ | 148,203 |
December 31, 2009
|
||||||||||||||||
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Estimated
Fair Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S.
Government agencies
|
$ | 40,022 | $ | 144 | $ | (12 | ) | $ | 40,154 | |||||||
Mortgage
backed securities
|
808 | - | (65 | ) | 743 | |||||||||||
Municipals
- taxable
|
690 | 9 | - | 699 | ||||||||||||
CRA
mutual fund
|
1,500 | - | (1 | ) | 1,499 | |||||||||||
$ | 43,020 | $ | 153 | $ | (78 | ) | $ | 43,095 |
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
U.S.
Government agencies
|
||||||||||||||||
Due
in one year or less
|
$ | 10,027 | $ | 10,068 | $ | 5,125 | $ | 5,145 | ||||||||
Due
after one through five years
|
45,080 | 45,234 | 15,000 | 15,023 | ||||||||||||
Due
after five through ten years
|
74,949 | 75,141 | 19,896 | 19,986 | ||||||||||||
Due
after ten through fifteen years
|
14,980 | 15,059 | - | - | ||||||||||||
Municipals
- taxable
|
||||||||||||||||
Due
after one through five years
|
470 | 476 | 690 | 699 | ||||||||||||
Mortgage
backed securities
|
||||||||||||||||
Due
in one year or less
|
- | - | 33 | 33 | ||||||||||||
Due
after fifteen years
|
706 | 715 | 776 | 710 | ||||||||||||
CRA
Mutual Fund
|
1,500 | 1,510 | 1,500 | 1,499 | ||||||||||||
Total
|
$ | 147,712 | $ | 148,203 | $ | 43,020 | $ | 43,095 |
Securities in a loss
|
Securities in a loss
|
|||||||||||||||||||||||
Position for less than
|
Position for 12 Months
|
|||||||||||||||||||||||
12 Months
|
or Longer
|
Total
|
||||||||||||||||||||||
September 30, 2010
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Securities
available for sale:
|
(In
Thousands)
|
|||||||||||||||||||||||
U.S.
Government agencies
|
$ | 4,926 | $ | (60 | ) | $ | - | $ | - | $ | 4,926 | $ | (60 | ) | ||||||||||
Total
|
$ | 4,926 | $ | (60 | ) | $ | - | $ | - | $ | 4,926 | $ | (60 | ) |
Securities in a loss
|
Securities in a loss
|
|||||||||||||||||||||||
Position for less than
|
Position for 12 Months
|
|||||||||||||||||||||||
12 Months
|
or Longer
|
Total
|
||||||||||||||||||||||
December 31, 2009
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Securities
available for sale:
|
(In Thousands)
|
|||||||||||||||||||||||
Mortgage
backed securities
|
$ | - | $ | - | $ | 710 | $ | (65 | ) | $ | 710 | $ | (65 | ) | ||||||||||
U.S.
Government agencies
|
9,988 | (12 | ) | - | - | 9,988 | (12 | ) | ||||||||||||||||
CRA
Mutual fund
|
- | - | 1,499 | (1 | ) | 1,499 | (1 | ) | ||||||||||||||||
Total
|
$ | 9,988 | $ | (12 | ) | $ | 2,209 | $ | (66 | ) | $ | 12,197 | $ | (78 | ) |
Composition of Loan Portfolio
|
||||||||||||||||
( In Thousands)
|
||||||||||||||||
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Amount
|
Percentage of
Total
|
Amount
|
Percentage of
Total
|
|||||||||||||
Commercial
real estate
|
$ | 223,574 | 46.74 | % | $ | 220,301 | 45.28 | % | ||||||||
Residential
real estate
|
137,745 | 28.80 | 150,792 | 30.99 | ||||||||||||
Commercial
|
78,556 | 16.42 | 72,628 | 14.93 | ||||||||||||
Real
estate construction
|
37,066 | 7.75 | 41,508 | 8.53 | ||||||||||||
Consumer
and other
|
1,386 | 0.29 | 1,335 | 0.27 | ||||||||||||
Total
loans
|
$ | 478,327 | 100.00 | % | $ | 486,564 | 100.00 | % | ||||||||
Less
allowance for loan losses
|
9,722 | 9,127 | ||||||||||||||
Net loans | $ | 468,605 | $ | 477,437 |
2010
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In Thousands)
|
Banking
|
Banking
|
Other
|
Elimination
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
$ | 8,497 | $ | 840 | $ | 3 | $ | (509 | ) | $ | 8,831 | |||||||||
Gain
on sale of loans
|
185 | 10,272 | - | - | 10,457 | |||||||||||||||
Other
revenues
|
935 | (847 | ) | 280 | (415 | ) | (47 | ) | ||||||||||||
Total
revenues
|
9,617 | 10,265 | 283 | (924 | ) | 19,241 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
2,354 | 461 | 167 | (510 | ) | 2,472 | ||||||||||||||
Salaries
and employee benefits
|
2,143 | 3,735 | 101 | - | 5,979 | |||||||||||||||
Other
|
2,692 | 4,129 | 458 | (414 | ) | 6,865 | ||||||||||||||
Total
operating expenses
|
7,189 | 8,325 | 726 | (924 | ) | 15,316 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 2,428 | $ | 1,940 | $ | (443 | ) | $ | - | $ | 3,925 | |||||||||
Total
assets
|
$ | 763,756 | $ | 127,443 | $ | 45,982 | $ | (132,343 | ) | $ | 804,838 |
2009
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In Thousands)
|
Banking
|
Banking
|
Other
|
Elimination
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
$ | 8,853 | $ | 719 | $ | 10 | $ | (366 | ) | $ | 9,216 | |||||||||
Gain
on sale of loans
|
401 | 9,527 | - | - | 9,928 | |||||||||||||||
Other
revenues
|
567 | 551 | 291 | (414 | ) | 995 | ||||||||||||||
Total
revenues
|
9,821 | 10,797 | 301 | (780 | ) | 20,139 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
3,217 | 287 | 168 | (367 | ) | 3,305 | ||||||||||||||
Salaries
and employee benefits
|
1,967 | 4,043 | - | - | 6,010 | |||||||||||||||
Other
|
3,241 | 4,136 | 446 | (413 | ) | 7,410 | ||||||||||||||
Total
operating expenses
|
8,425 | 8,466 | 614 | (780 | ) | 16,725 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 1,396 | $ | 2,331 | $ | (313 | ) | $ | - | $ | 3,414 | |||||||||
Total
assets
|
$ | 662,073 | $ | 63,322 | $ | 46,405 | $ | (76,597 | ) | $ | 695,203 |
2010
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In Thousands)
|
Banking
|
Banking
|
Other
|
Eliminations
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
24,977 | $ | 1,801 | $ | 25 | $ | (1,055 | ) | $ | 25,748 | ||||||||||
Gain
on sale of loans
|
269 | 23,826 | - | - | 24,095 | |||||||||||||||
Other
revenues
|
2,123 | (2,121 | ) | 866 | (1,255 | ) | (387 | ) | ||||||||||||
Total
revenues
|
27,369 | 23,506 | 891 | (2,310 | ) | 49,456 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
7,506 | 880 | 487 | (1,056 | ) | 7,817 | ||||||||||||||
Salaries
and employee benefits
|
6,512 | 9,866 | 217 | - | 16,595 | |||||||||||||||
Other
|
6,877 | 9,469 | 1,448 | (1,254 | ) | 16,540 | ||||||||||||||
Total
operating expenses
|
20,895 | 20,215 | 2,152 | (2,310 | ) | 40,952 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 6,474 | $ | 3,291 | $ | (1,261 | ) | $ | - | $ | 8,504 | |||||||||
Total
assets
|
$ | 763,756 | $ | 127,443 | $ | 45,982 | $ | (132,343 | ) | $ | 804,838 |
2009
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In
Thousands)
|
Banking
|
Banking
|
Other
|
Eliminations
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
$ | 27,281 | $ | 2,649 | $ | 29 | $ | (1,376 | ) | $ | 28,583 | |||||||||
Gain
on sale of loans
|
401 | 37,866 | - | - | 38,267 | |||||||||||||||
Other
revenues
|
2,183 | 4,037 | 887 | (1,239 | ) | 5,868 | ||||||||||||||
Total
revenues
|
29,865 | 44,552 | 916 | (2,615 | ) | 72,718 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
10,580 | 1,169 | 518 | (1,377 | ) | 10,890 | ||||||||||||||
Salaries
and employee benefits
|
5,781 | 15,663 | - | - | 21,444 | |||||||||||||||
Other
|
10,526 | 17,144 | 1,402 | (1,238 | ) | 27,834 | ||||||||||||||
Total
operating expenses
|
26,887 | 33,976 | 1,920 | (2,615 | ) | 60,168 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 2,978 | $ | 10,576 | $ | (1,004 | ) | $ | - | $ | 12,550 | |||||||||
Total
assets
|
$ | 662,073 | $ | 63,322 | $ | 46,405 | $ | (76,597 | ) | $ | 695,203 |
Three Months
|
Three Months
|
|||||||
Ended
|
Ended
|
|||||||
September 30, 2010
|
September 30, 2009
|
|||||||
(In Thousands, Except for Share Data)
|
||||||||
BASIC
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 2,436 | $ | 2,154 | ||||
Weighted
average shares outstanding
|
10,474,543 | 10,451,416 | ||||||
Basic
earnings per share
|
$ | 0.23 | $ | 0.21 | ||||
DILUTED
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 2,436 | $ | 2,154 | ||||
Weighted
average shares outstanding
|
10,474,543 | 10,451,416 | ||||||
Dilutive
stock options
|
21,191 | 35,339 | ||||||
Weighted
average diluted shares outstanding
|
10,495,734 | 10,486,755 | ||||||
Diluted
earnings per share
|
$ | 0.23 | $ | 0.21 |
Nine
Months
|
Nine
Months
|
|||||||
Ended
|
Ended
|
|||||||
September
30, 2010
|
September
30, 2009
|
|||||||
(In
Thousands, Except for Share Data)
|
||||||||
BASIC
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 5,330 | $ | 7,588 | ||||
Weighted
average shares outstanding
|
10,539,924 | 10,354,897 | ||||||
Basic
earnings per share
|
$ | 0.51 | $ | 0.73 | ||||
DILUTED
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 5,330 | $ | 7,588 | ||||
Weighted
average shares outstanding
|
10,539,924 | 10,354,897 | ||||||
Dilutive
stock options
|
19,198 | 45,856 | ||||||
Weighted
average diluted shares outstanding
|
10,559,122 | 10,400,753 | ||||||
Diluted
earnings per share
|
$ | 0.50 | $ | 0.73 |
Fair Value Measurement
|
||||||||||||||||
at September 30, 2010 Using
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||
Description
|
Carrying
Value
|
Quoted
Prices in
Active
Markets for
Identical
Assets (Level
1)
|
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||||||
Financial
Assets-Recurring
|
||||||||||||||||
Available
for sale investment securities (1)
|
$ | 148,203 | $ | - | $ | 148,203 | $ | - | ||||||||
Residential
loans held for sale
|
123,048 | - | 123,048 | - | ||||||||||||
Derivative
assets
|
1,061 | - | - | 1,061 | ||||||||||||
Financial
Liabilities-Recurring
|
||||||||||||||||
Derivative
liabilities
|
216 | - | - | 216 | ||||||||||||
Financial
Assets-Non-Recurring
|
||||||||||||||||
Impaired
loans (2)
|
6,952 | - | - | 6,952 | ||||||||||||
Other
real estate owned (3)
|
3,276 | - | 3,276 | - |
(1)
|
Excludes
restricted stock.
|
(2)
|
Represents
the carrying value of loans for which adjustments are based on the
appraised value of the collateral.
|
(3)
|
Represents
appraised value and realtor comparables less estimated selling
expenses.
|
Fair Value Measurement
|
||||||||||||||||
at December 31, 2009 Using
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||
Description
|
Carrying
Value
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level
1)
|
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||||||
Financial
Assets-Recurring
|
||||||||||||||||
Available
for sale investment securities (1)
|
$ | 43,095 | $ | 43,095 | $ | - | $ | - | ||||||||
Residential
loans held for sale
|
76,232 | - | 76,232 | - | ||||||||||||
Derivative
assets
|
492 | - | - | 492 | ||||||||||||
Financial
Liabilities-Recurring
|
||||||||||||||||
Derivative
liabilities
|
353 | - | - | 353 | ||||||||||||
Financial
Assets-Non-Recurring
|
||||||||||||||||
Impaired
loans (2)
|
7,032 | - | - | 7,032 | ||||||||||||
Other
real estate owned (3)
|
5,111 | - | 5,111 | - |
(1)
|
Excludes
restricted stock.
|
(2)
|
Represents
the carrying value of loans for which adjustments are based on the
appraised value of the collateral.
|
(3)
|
Represents
appraised value and realtor comparables less estimated selling
expenses.
|
Net Derivatives
|
||||
(In Thousands)
|
||||
Balance
June 30, 2010
|
$ | 222 | ||
Realized
and unrealized gains (losses) included in earnings
|
623 | |||
Unrealized
gains (losses) included in other comprehensive income
|
- | |||
Purchases,
Settlements, paydowns, and maturities
|
- | |||
Transfer
into Level 3
|
- | |||
Balance
Septembet 30, 2010
|
$ | 845 |
Net Derivatives
|
||||
(In Thousands)
|
||||
Balance
December 31, 2009
|
$ | 165 | ||
Realized
and unrealized gains (losses) included in earnings
|
680 | |||
Unrealized
gains (losses) included in other comprehensive income
|
- | |||
Purchases,
Settlements, paydowns, and maturities
|
- | |||
Transfer
into Level 3
|
- | |||
Balance
September 30, 2010
|
$ | 845 |
(In Thousands)
|
Aggregate
Fair Value
|
Difference
|
Contractual
Principal
|
|||||||||
Residential
mortgage loans held for sale
|
$ | 123,048 | $ | 4,448 | $ | 118,600 |
September
30, 2010
|
December
31, 2009
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(In Thousands) | ||||||||||||||||
Financial
assets:
|
|
|||||||||||||||
Cash
and short-term investments
|
$ | 32,505 | $ | 32,505 | $ | 31,221 | $ | 31,221 | ||||||||
Securities
available for sale
|
148,203 | 148,203 | 43,096 | 43,096 | ||||||||||||
Restricted
stock
|
4,572 | 4,572 | 4,743 | 4,743 | ||||||||||||
Loans
held for sale
|
123,048 | 123,048 | 76,232 | 76,232 | ||||||||||||
Loans,
net of allowance
|
468,607 | 472,208 | 477,437 | 475,865 | ||||||||||||
Derivatives
|
1,367 | 1,367 | 492 | 492 | ||||||||||||
Total
financial assets
|
$ | 778,302 | $ | 781,903 | $ | 633,221 | $ | 631,649 | ||||||||
Financial
liabilities:
|
||||||||||||||||
Deposits
|
$ | 606,957 | $ | 606,222 | $ | 466,645 | $ | 466,668 | ||||||||
Short-term
borrowings
|
69,813 | 70,523 | 64,249 | 64,258 | ||||||||||||
Long-term
borrowings
|
37,587 | 38,461 | 46,330 | 46,351 | ||||||||||||
Subordinated
debentures
|
6,186 | 6,245 | 6,186 | 6,248 | ||||||||||||
Derivatives
|
228 | 228 | 353 | 353 | ||||||||||||
Total
financial liabilities
|
$ | 720,771 | $ | 721,679 | $ | 583,763 | $ | 583,878 |
Nine months ended September 30,
|
Year ended
|
|||||||||||
2010
|
2009
|
December 31, 2009
|
||||||||||
(Dollars In Thousands)
|
||||||||||||
Allowance
for losses on mortgage loans sold -beginning of period
|
$ | 3,332 | $ | 1,439 | $ | 1,439 | ||||||
Settlements
in lieu of loan repurchase
|
1,237 | 2,932 | 3,080 | |||||||||
Other
losses
|
7 | 77 | 77 | |||||||||
Provision
for loan losses
|
2,400 | 3,349 | 5,050 | |||||||||
Allowance
for losses on mortgage loans sold - end of period
|
$ | 4,488 | $ | 1,779 | $ | 3,332 |
Three months ended September 30,
|
Nine months ended September 30,
|
Year ended
|
||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
December 31,2009
|
||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||
Allowance
for loan losses-beginning of period
|
$ | 9,348 | $ | 8,077 | $ | 9,127 | $ | 7,462 | $ | 7,462 | ||||||||||
Loans
Charged off:
|
||||||||||||||||||||
Commercial
|
18 | 314 | 213 | 1,455 | 1,541 | |||||||||||||||
Commercial
real estate
|
- | 537 | 624 | 1,648 | 1,648 | |||||||||||||||
Real
estate construction
|
39 | 519 | 48 | 612 | 1,247 | |||||||||||||||
Residential
real estate
|
200 | 157 | 346 | 851 | 851 | |||||||||||||||
Consumer
and other
|
- | - | - | 22 | 23 | |||||||||||||||
Total
Charge-offs
|
257 | 1,527 | 1,231 | 4,588 | 5,310 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial
|
11 | 206 | 389 | 213 | 374 | |||||||||||||||
Commercial
real estate
|
39 | - | 85 | 159 | 294 | |||||||||||||||
Real
estate construction
|
- | - | 5 | 66 | 66 | |||||||||||||||
Residential
real estate
|
6 | 36 | 26 | 51 | 79 | |||||||||||||||
Consumer
and other
|
- | - | - | - | 98 | |||||||||||||||
Total
Recoveries
|
56 | 242 | 505 | 489 | 911 | |||||||||||||||
Net
Charge-offs
|
201 | 1,285 | 726 | 4,099 | 4,399 | |||||||||||||||
Provision
for loan losses
|
575 | 1,387 | 1,321 | 4,816 | 6,064 | |||||||||||||||
Allowance
for loan losses-end of period
|
$ | 9,722 | $ | 8,179 | $ | 9,722 | $ | 8,179 | $ | 9,127 |
September 30, 2010
|
December 31, 2009
|
|||||||||||||||||||||||||||||||
Amount
|
Percentage
|
Allowance for
Loan Loss
|
Percentage
|
Amount
|
Percentage
|
Allowance for
Loan Loss
|
Percentage
|
|||||||||||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||||||||||||||
Commercial
real estate
|
$ | 223,574 | 46.74 | % | $ | 5,194 | 53.43 | % | $ | 220,301 | 45.28 | % | $ | 4,285 | 46.95 | % | ||||||||||||||||
Residential
real estate
|
137,745 | 28.80 | 2,577 | 26.51 | 150,792 | 30.99 | 2,690 | 29.47 | ||||||||||||||||||||||||
Commercial
|
78,556 | 16.42 | 1,129 | 11.61 | 72,628 | 14.93 | 1,589 | 17.41 | ||||||||||||||||||||||||
Real
estate construction
|
37,066 | 7.75 | 811 | 8.34 | 41,508 | 8.53 | 549 | 6.02 | ||||||||||||||||||||||||
Consumer
and other
|
1,386 | 0.29 | 11 | 0.11 | 1,335 | 0.27 | 14 | 0.15 | ||||||||||||||||||||||||
$ | 478,327 | 100.00 | % | $ | 9,722 | 100.00 | % | $ | 486,564 | 100.00 | % | $ | 9,127 | 100.00 | % |
September 30, 2010
|
December 31, 2009
|
|||||||
|
(Dollars
in Thousands)
|
|||||||
Non-accrual loans: | ||||||||
Commercial
real estate
|
$ | 4,121 | $ | 3,631 | ||||
Real
estate construction
|
1,489 | 1,689 | ||||||
Residential
real estate
|
1,265 | 1,504 | ||||||
Commercial
|
77 | 208 | ||||||
Consumer
and other
|
- | - | ||||||
Total
non-accrual loans
|
6,952 | 7,032 | ||||||
Other
real estate owned ("OREO")
|
3,276 | 5,111 | ||||||
Total
non-performing assets
|
$ | 10,228 | $ | 12,143 | ||||
Restructured
loans included in non-accrual loans
|
- | - | ||||||
Ratio
of non-performing assets to:
|
||||||||
Total
net loans plus OREO
|
2.17 | % | 2.52 | % | ||||
Total
Assets
|
1.27 | % | 1.82 | % | ||||
Accruing
Past due loans:
|
||||||||
90
or more days past due
|
$ | - | $ | - |
September
30,
|
December
31,
|
||||||||||
2010
|
2009
|
||||||||||
(In
Thousands)
|
|||||||||||
Tier
1 Capital:
|
|||||||||||
Common
stock
|
$ | 8,734 | $ | 8,799 | |||||||
Capital
surplus
|
18,207 | 18,552 | |||||||||
Retained
earnings
|
45,391 | 40,376 | |||||||||
Less:
Net unrealized loss on equity securities
|
- | - | |||||||||
Subordinated
debentures
|
6,000 | 6,000 | |||||||||
Less:
Dissallowed servicing assets
|
152 | (123 | ) | ||||||||
Total
Tier 1 capital
|
78,180 | 73,604 | |||||||||
Subordinated
debentures not included in Tier 1
|
- | - | |||||||||
Allowance
for loan losses
|
7,158 | 6,861 | |||||||||
Unrealized
gain on available for sale equity securities
|
5 | - | |||||||||
7,163 | 6,861 | ||||||||||
Total
risk based capital
|
$ | 85,343 | $ | 80,465 | |||||||
Risk
weighted assets
|
$ | 569,777 | $ | 546,288 | |||||||
Quarterly
average assets
|
$ | 802,205 | $ | 685,754 | |||||||
Regulatory
|
|||||||||||
Capital
Ratios:
|
Minimum
|
||||||||||
Tier
1 risk based capital ratio
|
13.72 | % | 13.47 | % |
4.00
|
% | |||||
Total
risk based capital ratio
|
14.98 | % | 14.73 | % |
8.00
|
% | |||||
Leverage
ratio
|
9.75 | % | 10.73 | % |
4.00
|
% |
Three Months Ended September 30,
|
||||||||||||
2010 compared to 2009
|
||||||||||||
Change Due To:
|
||||||||||||
Increase /
|
||||||||||||
(Decrease)
|
Volume
|
Rate
|
||||||||||
(In
Thousands)
|
||||||||||||
Interest
Earning Assets:
|
||||||||||||
Securities
|
$ | (129 | ) | $ | 389 | $ | (518 | ) | ||||
Loans
held for sale
|
122 | 221 | (99 | ) | ||||||||
Loans
|
(402 | ) | (416 | ) | 14 | |||||||
Interest-bearing
deposits
|
24 | 17 | 7 | |||||||||
Total
increase (decrease) in interest income
|
(385 | ) | 211 | (596 | ) | |||||||
Interest-Bearing
Liabilities:
|
||||||||||||
Interest-bearing
demand deposits
|
(53 | ) | (3 | ) | (50 | ) | ||||||
Money
market deposit accounts
|
(58 | ) | 105 | (163 | ) | |||||||
Savings
accounts
|
(7 | ) | (2 | ) | (5 | ) | ||||||
Time
deposits
|
(463 | ) | 313 | (776 | ) | |||||||
Total
interest-bearing deposits
|
(581 | ) | 413 | (994 | ) | |||||||
FHLB
Advances
|
(182 | ) | (134 | ) | (48 | ) | ||||||
Securities
sold under agreements to repurchase
|
(2 | ) | 6 | (8 | ) | |||||||
Other
short-term borrowings
|
29 | 29 | - | |||||||||
Long-term
borrowings
|
(97 | ) | (108 | ) | 11 | |||||||
FDIC
term note
|
1 | - | 1 | |||||||||
Subordinated
debentures
|
- | - | - | |||||||||
Total
increase (decrease) in interest expense
|
$ | (832 | ) | $ | 206 | $ | (1,038 | ) | ||||
Increase
(decrease) in net interest income
|
$ | 447 | $ | 5 | $ | 442 |
Nine Months Ended September 30,
|
||||||||||||
2010 compared to 2009
|
||||||||||||
Change Due To:
|
||||||||||||
Increase /
|
||||||||||||
(Decrease)
|
Volume
|
Rate
|
||||||||||
(In
Thousands)
|
||||||||||||
Interest
Earning Assets:
|
||||||||||||
Securities
|
$ | (1,016 | ) | $ | 683 | $ | (1,699 | ) | ||||
Loans
held for sale
|
(847 | ) | (729 | ) | (118 | ) | ||||||
Loans
|
(1,032 | ) | (896 | ) | (136 | ) | ||||||
Interest-bearing
deposits
|
60 | 50 | 10 | |||||||||
Total
increase (decrease) in interest income
|
(2,835 | ) | (892 | ) | (1,943 | ) | ||||||
Interest-Bearing
Liabilities:
|
||||||||||||
Interest-bearing
demand deposits
|
(73 | ) | 33 | (106 | ) | |||||||
Money
market deposit accounts
|
92 | 425 | (333 | ) | ||||||||
Savings
accounts
|
(20 | ) | (5 | ) | (15 | ) | ||||||
Time
deposits
|
(2,381 | ) | (219 | ) | (2,162 | ) | ||||||
Total
interest-bearing deposits
|
(2,382 | ) | 234 | (2,616 | ) | |||||||
FHLB
Advances
|
(356 | ) | (358 | ) | 2 | |||||||
Securities
sold under agreements to repurchase
|
(10 | ) | 6 | (16 | ) | |||||||
Other
short-term borrowings
|
23 | 25 | (2 | ) | ||||||||
Long-term
borrowings
|
(448 | ) | (413 | ) | (35 | ) | ||||||
FDIC
term note
|
124 | 134 | (10 | ) | ||||||||
Subordinated
debentures
|
(23 | ) | - | (23 | ) | |||||||
Total
increase (decrease) in interest expense
|
$ | (3,072 | ) | $ | (372 | ) | $ | (2,700 | ) | |||
Increase
(decrease) in net interest income
|
$ | 237 | $ | (520 | ) | $ | 757 |
September 30, 2010
|
September 30, 2009
|
|||||||||||||||||||||||
Average
|
Income /
|
Yield /
|
Average
|
Income /
|
Yield /
|
|||||||||||||||||||
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Securities
|
$ | 127,467 | $ | 583 | 1.83 | % | $ | 70,320 | $ | 712 | 4.05 | % | ||||||||||||
Loans
held for sale
|
70,913 | 840 | 4.74 | % | 52,967 | 718 | 5.42 | % | ||||||||||||||||
Loans(1)
|
471,308 | 7,350 | 6.24 | % | 497,969 | 7,752 | 6.23 | % | ||||||||||||||||
Interest-bearing
balances and federal funds sold
|
88,014 | 58 | 0.26 | % | 61,301 | 34 | 0.22 | % | ||||||||||||||||
Total
interest earning assets
|
757,702 | 8,831 | 4.66 | % | 682,557 | 9,216 | 5.40 | % | ||||||||||||||||
Noninterest
earning assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
12,516 | 6,708 | ||||||||||||||||||||||
Premises,
land and equipment
|
8,609 | 12,862 | ||||||||||||||||||||||
Other
assets
|
33,155 | 14,802 | ||||||||||||||||||||||
Less:
allowance for loan losses
|
(9,625 | ) | (8,250 | ) | ||||||||||||||||||||
Total
noninterest earning assets
|
44,655 | 26,122 | ||||||||||||||||||||||
Total
Assets
|
$ | 802,357 | $ | 708,679 | ||||||||||||||||||||
Liabilities
and Shareholders' Equity:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 34,217 | $ | 47 | 0.55 | % | $ | 35,376 | $ | 100 | 1.13 | % | ||||||||||||
Money
market deposit accounts
|
133,866 | 319 | 0.95 | % | 100,023 | 377 | 1.51 | % | ||||||||||||||||
Savings
accounts
|
3,862 | 9 | 0.93 | % | 4,408 | 16 | 1.45 | % | ||||||||||||||||
Time
deposits
|
356,644 | 1,513 | 1.70 | % | 302,287 | 1,976 | 2.61 | % | ||||||||||||||||
Total
interest-bearing deposits
|
528,589 | 1,888 | 1.43 | % | 442,094 | 2,469 | 2.23 | % | ||||||||||||||||
Borrowings:
|
||||||||||||||||||||||||
FHLB
Advances
|
8,202 | 71 | 3.46 | % | 22,535 | 253 | 4.49 | % | ||||||||||||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
28,376 | 23 | 0.32 | % | 22,193 | 25 | 0.45 | % | ||||||||||||||||
Other
short-term borrowings
|
26,451 | 61 | 0.92 | % | 13,697 | 32 | 0.93 | % | ||||||||||||||||
FHLB
Long-term borrowings
|
8,127 | 73 | 3.59 | % | 20,210 | 170 | 3.36 | % | ||||||||||||||||
FDIC
Term Note
|
29,998 | 300 | 4.00 | % | 29,996 | 299 | 3.99 | % | ||||||||||||||||
Subordinated
Debentures
|
6,186 | 57 | 3.69 | % | 6,186 | 57 | 3.69 | % | ||||||||||||||||
Total
borrowings
|
107,340 | 585 | 2.18 | % | 114,817 | 836 | 2.91 | % | ||||||||||||||||
Total
interest-bearing deposits and borrowings
|
635,929 | 2,473 | 1.56 | % | 556,911 | 3,305 | 2.37 | % | ||||||||||||||||
Noninterest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
74,870 | 74,878 | ||||||||||||||||||||||
Other
liabilities
|
21,286 | 11,208 | ||||||||||||||||||||||
Total
liabilities
|
732,085 | 642,997 | ||||||||||||||||||||||
Shareholders'
Equity
|
70,272 | 65,682 | ||||||||||||||||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 802,357 | $ | 708,679 | ||||||||||||||||||||
Interest Spread(2)
|
3.11 | % | 3.03 | % | ||||||||||||||||||||
Net Interest
Margin(3)
|
$ | 6,358 | 3.36 | % | $ | 5,911 | 3.46 | % |
September 30, 2010
|
September 30, 2009
|
|||||||||||||||||||||||
Average
|
Income /
|
Yield /
|
Average
|
Income /
|
Yield /
|
|||||||||||||||||||
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Securities
|
$ | 98,381 | $ | 1,537 | 2.08 | % | $ | 73,491 | $ | 2,553 | 4.63 | % | ||||||||||||
Loans
held for sale
|
49,144 | 1,801 | 4.89 | % | 68,906 | 2,648 | 5.12 | % | ||||||||||||||||
Loans(1)
|
472,361 | 22,238 | 6.28 | % | 491,375 | 23,270 | 6.31 | % | ||||||||||||||||
Interest-bearing
balances and federal funds sold
|
93,323 | 172 | 0.25 | % | 65,613 | 112 | 0.23 | % | ||||||||||||||||
Total
interest-earning assets
|
713,209 | 25,748 | 4.81 | % | 699,385 | 28,583 | 5.45 | % | ||||||||||||||||
Noninterest-earning
assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
9,652 | 6,345 | ||||||||||||||||||||||
Premises,
land and equipment
|
8,671 | 9,050 | ||||||||||||||||||||||
Other
assets
|
28,788 | 18,676 | ||||||||||||||||||||||
Less:
allowance for loan losses
|
(9,352 | ) | (7,919 | ) | ||||||||||||||||||||
Total
noninterest-earning assets
|
37,759 | 26,152 | ||||||||||||||||||||||
Total
Assets
|
$ | 750,968 | $ | 725,537 | ||||||||||||||||||||
Liabilities
and Shareholders' Equity:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 31,774 | $ | 150 | 0.63 | % | $ | 27,242 | $ | 223 | 1.09 | % | ||||||||||||
Money
market deposit accounts
|
132,034 | 1,103 | 1.11 | % | 87,254 | 1,011 | 1.54 | % | ||||||||||||||||
Savings
accounts
|
3,979 | 28 | 0.94 | % | 4,456 | 48 | 1.44 | % | ||||||||||||||||
Time
deposits
|
319,664 | 4,624 | 1.93 | % | 330,293 | 7,005 | 2.83 | % | ||||||||||||||||
Total
interest-bearing deposits
|
487,451 | 5,905 | 1.62 | % | 449,245 | 8,287 | 2.46 | % | ||||||||||||||||
Borrowings:
|
||||||||||||||||||||||||
FHLB
Advances
|
12,489 | 384 | 4.10 | % | 24,144 | 740 | 4.09 | % | ||||||||||||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
26,028 | 81 | 0.41 | % | 24,363 | 91 | 0.50 | % | ||||||||||||||||
Other
short-term borrowings
|
21,449 | 150 | 0.93 | % | 17,848 | 127 | 0.95 | % | ||||||||||||||||
FHLB
Long-term borrowings
|
9,801 | 244 | 3.32 | % | 26,300 | 692 | 3.51 | % | ||||||||||||||||
FDIC
Term Note
|
29,997 | 892 | 3.96 | % | 25,491 | 768 | 4.02 | % | ||||||||||||||||
Subordinated
Debentures
|
6,186 | 162 | 3.49 | % | 6,186 | 185 | 3.99 | % | ||||||||||||||||
Total
borrowings
|
105,950 | 1,913 | 2.41 | % | 124,332 | 2,603 | 2.79 | % | ||||||||||||||||
Total
interest-bearing deposits and borrowings
|
593,401 | 7,818 | 1.76 | % | 573,577 | 10,890 | 2.53 | % | ||||||||||||||||
Noninterest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
71,507 | 78,535 | ||||||||||||||||||||||
Other
liabilities
|
15,820 | 9,866 | ||||||||||||||||||||||
Total
liabilities
|
87,327 | 661,978 | ||||||||||||||||||||||
Shareholders'
Equity
|
70,240 | 63,559 | ||||||||||||||||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 750,968 | $ | 725,537 | ||||||||||||||||||||
Interest
Spread(2)
|
3.06 | % | 2.92 | % | ||||||||||||||||||||
Net
Interest Margin(3)
|
$ | 17,930 | 3.35 | % | $ | 17,693 | 3.37 | % |
Nine Months Ended September 30,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Provision
for losses on loans sold
|
$ | 2,400 | $ | 3,349 | ||||
Management
fees expense
|
2,105 | 5,573 | ||||||
Advertising
and promotional expense
|
2,034 | 4,255 | ||||||
OREO
Expense
|
1,324 | 1,052 | ||||||
Investor
fees expense
|
568 | 1,237 | ||||||
Accounting
and auditing expense
|
460 | 460 | ||||||
Loan
and collection expense
|
399 | 284 | ||||||
Data
processing expense
|
379 | 364 | ||||||
Business
and franchise tax expense
|
341 | 336 | ||||||
FDIC
insurance expense
|
324 | 947 | ||||||
Consulting
fees expense
|
285 | 260 | ||||||
CDARS
fee expense
|
285 | 76 | ||||||
Credit
report expense
|
272 | 382 | ||||||
Telephone
expense
|
165 | 69 | ||||||
Other
|
1,935 | 2,479 | ||||||
$ | 13,276 | $ | 21,123 |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
At
Period End
|
||||||||
FHLB
advances
|
$ | 5,833 | $ | 20,179 | ||||
FHLB
long-term borrowings
|
7,589 | 16,333 | ||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
36,933 | 26,804 | ||||||
Other
short-term borrowings
|
27,049 | 17,267 | ||||||
Subordinated
debentures
|
6,186 | 6,186 | ||||||
FDIC
term note
|
29,998 | 29,997 | ||||||
Total
at period end
|
$ | 113,588 | $ | 116,766 |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
( In Thousands)
|
||||||||
Average
Balances
|
||||||||
FHLB
advances
|
$ | 12,489 | $ | 23,676 | ||||
FHLB
long-term borrowings
|
9,801 | 24,026 | ||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
26,028 | 23,283 | ||||||
Other
short-term borrowings
|
21,449 | 17,817 | ||||||
Subordinated
debentures
|
6,186 | 6,186 | ||||||
FDIC
term note
|
29,997 | 26,627 | ||||||
Total
average balance
|
$ | 105,950 | $ | 121,615 |
Increase in Federal
Funds Target Rate
|
Hypothetical Percentage
Change in Earnings
September 30, 2010
|
Hypothetical Percentage
Change in Earnings
December 31, 2010
|
|||||||
3.00
|
% | 8.80 | % | 4.01 | % | ||||
2.00
|
% | 4.87 | % | 3.92 | % | ||||
1.00
|
% | 1.55 | % | 3.86 | % |
Issuer Purchases of Equity Securities
|
||||||||||||||||
(c) Total Number of
|
(d) Maximum Number
|
|||||||||||||||
Shares Purchased as
|
of Shares that may
|
|||||||||||||||
(a) Total Number of
|
(b) Average Price
|
Part of Publicly
|
yet be Purchased
|
|||||||||||||
Period
|
Shares Purchased
|
Paid Per Share
|
Announced Plan
|
Under the Plan
|
||||||||||||
July
1 - July 31, 2010
|
18,795 | $ | 5.99 | 18,795 | 1,246,337 | |||||||||||
August
1 - August 31, 2010
|
9,850 | 5.95 | 9,850 | 1,236,487 | ||||||||||||
September
1 - September 30, 2010
|
8,800 | 6.12 | 8,800 | 1,227,687 | ||||||||||||
37,445 | $ | 6.01 | 37,445 | 1,227,687 |
Exhibit No.
|
Description
|
|
3.1
|
Amended
and Restated Articles of Incorporation of Access National Corporation
(incorporated by reference to Exhibit 3.1 to Form 8-K filed July 18, 2006
(file number 000-49929))
|
|
3.2
|
Amended
and Restated Bylaws of Access National Corporation (incorporated by
reference to Exhibit 3.2 to Form 8-K filed October 24, 2007 (file number
000-49929))
|
|
4.0
|
Certain
instruments relating to long-term debt as to which the total amount of
securities authorized thereunder does not exceed 10% of Access National
Corporation’s total assets have been omitted in accordance with Item
601(b)(4)(iii) of Regulation S-K. The registrant will furnish a
copy of any such instrument to the Securities and Exchange Commission upon
its request.
|
|
31.1*
|
CEO
Certification Pursuant to Rule 13a-14(a)
|
|
31.2*
|
CFO
Certification Pursuant to Rule 13a-14(a)
|
|
32*
|
|
CEO/CFO
Certification Pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. § 1350)
|
*
filed
herewith
|
Access
National Corporation
|
||
(Registrant)
|
||
Date: November
15,
2010
|
By:
|
/s/
Michael W. Clarke
|
Michael
W. Clarke
|
||
President
and Chief Executive Officer
|
||
(Principal
Executive Officer)
|
||
Date: November
15,
2010
|
By:
|
/s/
Charles Wimer
|
Charles
Wimer
|
||
Executive
Vice President and Chief Financial Officer
|
||
(Principal
Financial & Accounting
Officer)
|