x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended September 30,
2010
|
o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXHANGE ACT OF
1934
|
For
the transition period from ____________ to
____________
|
Maryland
|
35-2085640
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
|
110
East Charles Street
|
||
Muncie,
Indiana
|
47305
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer o
(Do not check if a smaller
reporting company)
|
Smaller
reporting company x
|
INDEX
|
Page
Number
|
|||
PART I – FINANCIAL INFORMATION |
|
|||
|
||||
Item
1.
|
Financial
Statements
|
3
|
||
Consolidated
Condensed Balance Sheets
|
3
|
|||
Consolidated
Condensed Statements of Income
|
4
|
|||
Consolidated
Condensed Statement of Stockholders’ Equity
|
5
|
|||
Consolidated
Condensed Statements of Cash Flows
|
6
|
|||
Notes
to Unaudited Consolidated Condensed Financial Statements
|
7
|
|||
|
||||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
22
|
||
|
||||
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
33
|
||
|
||||
Item
4.
|
Controls
and Procedures
|
33
|
||
|
||||
PART II – OTHER INFORMATION |
|
|||
|
||||
Item
1.
|
Legal
Proceedings
|
35
|
||
|
||||
Item
1A.
|
Risk
Factors
|
35
|
||
|
||||
Item
2.
|
Unregistered
Sales of Equity Changes in Securities and Use of Proceeds
|
35
|
||
|
||||
Item
3.
|
Defaults
Upon Senior Securities
|
36
|
||
|
||||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
36
|
||
|
||||
Item
5.
|
Other
Information
|
36
|
||
|
||||
Item
6.
|
Exhibits
|
36
|
||
|
||||
Signature
Page
|
37
|
|||
|
||||
Exhibits
|
|
September
30,
|
||||||||
2010
|
December
31,
|
|||||||
(Unaudited)
|
2009
|
|||||||
Assets
|
||||||||
Cash
|
$ | 18,347,978 | $ | 27,245,633 | ||||
Interest-bearing
demand deposits
|
65,239,685 | 19,095,264 | ||||||
Cash
and cash equivalents
|
83,587,663 | 46,340,897 | ||||||
Interest-bearing
deposits
|
3,005,727 | 0 | ||||||
Investment
securities available for sale
|
199,060,287 | 130,913,670 | ||||||
Investment
securities held to maturity
|
0 | 8,147,407 | ||||||
Total
investment securities
|
199,060,287 | 139,061,077 | ||||||
Loans
held for sale
|
9,902,551 | 2,520,546 | ||||||
Loans
|
1,015,100,732 | 1,076,108,466 | ||||||
Allowance
for loan losses
|
(16,480,456 | ) | (16,414,331 | ) | ||||
Net
loans
|
998,620,276 | 1,059,694,135 | ||||||
Premises
and equipment
|
33,490,148 | 34,556,318 | ||||||
Federal
Home Loan Bank of Indianapolis stock, at cost
|
18,631,500 | 18,631,500 | ||||||
Investment
in limited partnerships
|
3,777,778 | 4,160,629 | ||||||
Cash
surrender value of life insurance
|
45,159,999 | 44,247,277 | ||||||
Prepaid
FDIC premium
|
4,642,018 | 5,907,149 | ||||||
Core
deposit and other intangibles
|
4,847,707 | 5,881,075 | ||||||
Deferred
income tax benefit
|
17,467,924 | 19,514,151 | ||||||
Other
assets
|
18,224,798 | 18,519,603 | ||||||
Total
assets
|
$ | 1,440,418,376 | $ | 1,399,034,357 | ||||
Liabilities
|
||||||||
Deposits
|
||||||||
Non-interest-bearing
|
$ | 107,688,632 | $ | 98,024,890 | ||||
Interest
bearing
|
1,019,165,820 | 947,171,169 | ||||||
Total
deposits
|
1,126,854,452 | 1,045,196,059 | ||||||
Federal
Home Loan Bank advances
|
152,649,067 | 197,960,396 | ||||||
Other
borrowings
|
13,349,635 | 14,113,526 | ||||||
Other
liabilities
|
13,946,049 | 12,037,299 | ||||||
Total
liabilities
|
1,306,799,203 | 1,269,307,280 | ||||||
Commitments
and Contingent Liabilities
|
||||||||
Stockholders'
Equity
|
||||||||
Preferred
stock, $.01 par value
|
||||||||
Authorized
and unissued — 5,000,000
shares
|
||||||||
Issued
and outstanding — 32,382 shares;
|
324 | 324 | ||||||
liquidation
preference $1,000 per share
|
||||||||
Common
stock, $.01 par value
|
||||||||
Authorized —
20,000,000 shares
|
||||||||
Issued
and outstanding — 6,984,754 shares
|
69,847 | 69,847 | ||||||
Additional
paid-in capital - preferred stock
|
31,783,788 | 31,645,814 | ||||||
Additional
paid-in capital - common stock
|
72,431,277 | 72,485,756 | ||||||
Retained
earnings
|
30,783,774 | 28,654,285 | ||||||
Accumulated
other comprehensive loss
|
(416,991 | ) | (1,857,723 | ) | ||||
Unearned
employee stock ownership plan (ESOP) shares
|
(1,032,846 | ) | (1,271,226 | ) | ||||
Total
stockholders' equity
|
133,619,173 | 129,727,077 | ||||||
Total
liabilities and stockholders' equity
|
$ | 1,440,418,376 | $ | 1,399,034,357 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest
Income
|
||||||||||||||||
Loans
receivable, including fees
|
$ | 14,908,465 | $ | 16,184,190 | $ | 45,651,477 | $ | 49,982,413 | ||||||||
Investment
securities:
|
||||||||||||||||
Mortgage-backed
securities
|
1,420,310 | 1,013,129 | 4,489,600 | 2,909,018 | ||||||||||||
Federal
Home Loan Bank stock
|
69,677 | 91,966 | 255,481 | 260,666 | ||||||||||||
Other
investments
|
278,768 | 385,104 | 829,343 | 1,287,126 | ||||||||||||
Deposits
with financial institutions
|
48,068 | 7,516 | 146,933 | 34,877 | ||||||||||||
Total
interest income
|
16,725,288 | 17,681,905 | 51,372,834 | 54,474,100 | ||||||||||||
|
||||||||||||||||
Interest
Expense
|
||||||||||||||||
Passbook
savings
|
34,596 | 63,973 | 104,524 | 196,019 | ||||||||||||
Certificates
of deposit
|
4,123,081 | 4,674,227 | 12,623,190 | 14,783,903 | ||||||||||||
Daily
Money Market accounts
|
157,984 | 139,841 | 460,905 | 389,655 | ||||||||||||
Demand
and NOW acounts
|
242,598 | 210,342 | 697,529 | 604,696 | ||||||||||||
Federal
Home Loan Bank advances
|
1,319,229 | 2,084,830 | 4,802,345 | 6,786,852 | ||||||||||||
Other
interest expense
|
233,067 | 265,627 | 703,318 | 766,130 | ||||||||||||
Total
interest expense
|
6,110,555 | 7,438,840 | 19,391,811 | 23,527,255 | ||||||||||||
Net
Interest Income
|
10,614,733 | 10,243,065 | 31,981,023 | 30,946,845 | ||||||||||||
Provision
for losses on loans
|
2,225,000 | 1,650,000 | 5,275,000 | 4,850,000 | ||||||||||||
Net
Interest Income After Provision for Loan Losses
|
8,389,733 | 8,593,065 | 26,706,023 | 26,096,845 | ||||||||||||
|
||||||||||||||||
Other
Income
|
||||||||||||||||
Service
fee income
|
1,829,034 | 1,955,533 | 5,456,161 | 5,521,954 | ||||||||||||
Net
realized gain (loss) on sale of securities
|
(380,786 | ) | 59,870 | (60,509 | ) | 418,714 | ||||||||||
Equity
in losses of limited partnerships
|
(127,617 | ) | (77,744 | ) | (382,449 | ) | (233,231 | ) | ||||||||
Commissions
|
896,291 | 709,915 | 2,919,960 | 2,197,637 | ||||||||||||
Net
gains on sales of loans
|
845,967 | 527,201 | 1,409,654 | 2,171,561 | ||||||||||||
Net
servicing fees
|
33,722 | 55,542 | 101,927 | 192,565 | ||||||||||||
Increase
in cash surrender value of life insurance
|
630,289 | 384,622 | 1,385,474 | 1,183,566 | ||||||||||||
Other-than-temporary
losses on securities
|
||||||||||||||||
Total
other-than-temporary losses
|
(98,575 | ) | 0 | (2,136,556 | ) | (200,000 | ) | |||||||||
Portion
of loss recognized in other comperehensive income (before
taxes)
|
0 | 0 | 1,310,285 | 0 | ||||||||||||
Net
impairment losses recognized in earnings
|
(98,575 | ) | 0 | (826,271 | ) | (200,000 | ) | |||||||||
Other
income
|
14,862 | 33,041 | 173,658 | 121,339 | ||||||||||||
Total
other income
|
3,643,187 | 3,647,980 | 10,177,605 | 11,374,105 | ||||||||||||
Other
Expenses
|
||||||||||||||||
Salaries
and employee benefits
|
5,314,547 | 5,822,553 | 15,982,278 | 16,970,246 | ||||||||||||
Net
occupancy expenses
|
628,593 | 670,690 | 1,871,424 | 2,065,004 | ||||||||||||
Equipment
expenses
|
480,364 | 479,167 | 1,459,569 | 1,295,430 | ||||||||||||
Data
processing fees
|
363,035 | 388,315 | 1,161,504 | 1,102,983 | ||||||||||||
Automated
teller machine
|
294,474 | 274,218 | 869,944 | 834,699 | ||||||||||||
Deposit
insurance
|
465,230 | 416,116 | 1,364,521 | 1,849,196 | ||||||||||||
Professional
fees
|
305,954 | 310,489 | 891,404 | 972,479 | ||||||||||||
Advertising
and promotion
|
296,000 | 407,616 | 899,984 | 1,132,616 | ||||||||||||
Software
subscriptions and maintenance
|
377,081 | 367,494 | 1,176,902 | 1,044,762 | ||||||||||||
Intangible
amortization
|
327,408 | 371,785 | 1,033,368 | 1,166,499 | ||||||||||||
Repossessed
assets expense
|
307,508 | 446,259 | 1,388,121 | 1,126,624 | ||||||||||||
Other
expenses
|
972,880 | 992,472 | 2,853,566 | 3,068,844 | ||||||||||||
Total
other expenses
|
10,133,074 | 10,947,174 | 30,952,585 | 32,629,382 | ||||||||||||
|
||||||||||||||||
Income
Before Income Tax
|
1,899,846 | 1,293,871 | 5,931,043 | 4,841,568 | ||||||||||||
Income
tax expense
|
279,000 | 52,000 | 1,192,000 | 489,000 | ||||||||||||
|
||||||||||||||||
Net
Income
|
1,620,846 | 1,241,871 | 4,739,043 | 4,352,568 | ||||||||||||
Preferred
stock dividends and amortization
|
450,766 | 450,766 | 1,352,298 | 1,352,298 | ||||||||||||
Net
Income Available to Common Shareholders
|
$ | 1,170,080 | $ | 791,105 | $ | 3,386,745 | $ | 3,000,270 | ||||||||
|
||||||||||||||||
Basic
earnings per common share
|
$ | 0.17 | $ | 0.12 | $ | 0.49 | $ | 0.44 | ||||||||
|
||||||||||||||||
Diluted
earnings per common share
|
$ | 0.17 | $ | 0.12 | $ | 0.49 | $ | 0.44 | ||||||||
|
||||||||||||||||
Dividends
per common share
|
$ | 0.06 | $ | 0.12 | $ | 0.18 | $ | 0.36 |
Common
Stock
|
Preferred
Stock
|
Accumulated
|
||||||||||||||||||||||||||||||||||||||||||
Additional
|
Additional
|
Other
|
Unearned
|
|||||||||||||||||||||||||||||||||||||||||
Shares
|
paid-in
|
Shares
|
paid-in
|
Comprehensive
|
Retained
|
Comprehensive
|
ESOP
|
|||||||||||||||||||||||||||||||||||||
Outstanding
|
Amount
|
capital
|
Outstanding
|
Amount
|
capital
|
Income
|
Earnings
|
Income
(Loss)
|
shares
|
Total
|
||||||||||||||||||||||||||||||||||
Balances, December 31,
2009
|
6,984,754 | $ | 69,847 | $ | 72,485,756 | 32,382 | $ | 324 | $ | 31,645,814 | $ | 28,654,285 | ($1,857,723 | ) | ($1,271,226 | ) | $ | 129,727,077 | ||||||||||||||||||||||||||
Comprehensive
income
|
||||||||||||||||||||||||||||||||||||||||||||
Net
income for the period
|
$ | 4,739,043 | 4,739,043 | 4,739,043 | ||||||||||||||||||||||||||||||||||||||||
Other
comprehensive income, net of tax
|
||||||||||||||||||||||||||||||||||||||||||||
Net
unrealized gain on securities
|
1,794,982 | $ | 1,794,982 | 1,794,982 | ||||||||||||||||||||||||||||||||||||||||
Net
unrealized loss on derivatives
|
(354,250 | ) | (354,250 | ) | (354,250 | ) | ||||||||||||||||||||||||||||||||||||||
Comprehensive
income
|
$ | 6,179,775 | ||||||||||||||||||||||||||||||||||||||||||
ESOP
shares earned
|
(72,233 | ) | 238,380 | 166,147 | ||||||||||||||||||||||||||||||||||||||||
Accretion
of discount on preferred stock
|
137,974 | (137,974 | ) | 0 | ||||||||||||||||||||||||||||||||||||||||
Share-based
compensation
|
17,754 | 17,754 | ||||||||||||||||||||||||||||||||||||||||||
Cash
dividends ($.18 per common share)
|
(1,257,255 | ) | (1,257,255 | ) | ||||||||||||||||||||||||||||||||||||||||
Cash
dividends (5% preferred stock)
|
(1,214,325 | ) | (1,214,325 | ) | ||||||||||||||||||||||||||||||||||||||||
Balances, September
30, 2010
|
6,984,754 | $ | 69,847 | $ | 72,431,277 | 32,382 | $ | 324 | $ | 31,783,788 | $ | 30,783,774 | ($416,991 | ) | ($1,032,846 | ) | $ | 133,619,173 |
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2010
|
2009
|
|||||||
Operating
Activities
|
||||||||
Net
income
|
$ | 4,739,043 | $ | 4,352,569 | ||||
Items
not requiring (providing) cash
|
||||||||
Provision
for loan losses
|
5,275,000 | 4,850,000 | ||||||
Depreciation
and amortization
|
4,144,698 | 3,364,841 | ||||||
Prepaid
FDIC premium amortization
|
1,265,132 | - | ||||||
Deferred
income tax
|
1,263,518 | 794,616 | ||||||
Loans
originated for sale
|
(50,035,868 | ) | (144,061,228 | ) | ||||
Proceeds
from sales of loans held for sale
|
43,682,702 | 143,498,650 | ||||||
Gains
on sales of loans held for sale
|
(1,409,654 | ) | (2,171,561 | ) | ||||
(Gain)
loss on sale of securities:
|
||||||||
Available
for sale
|
(2,411,640 | ) | (205,716 | ) | ||||
Held
to maturity
|
2,472,145 | - | ||||||
(Gain)
loss on sale of premises and equipment
|
918 | (187,651 | ) | |||||
Loss
on other-than-temporary impairement, securities
|
826,271 | 200,000 | ||||||
Increase
in cash surrender value of life insurance
|
(1,385,474 | ) | (1,183,566 | ) | ||||
Other
equity adjustments
|
166,147 | 163,486 | ||||||
Change
in
|
||||||||
Interest
receivable and other assets
|
873,189 | 2,064,586 | ||||||
Interest
payable and other liabilities
|
1,316,833 | (1,242,231 | ) | |||||
Other
adjustments
|
(15,438 | ) | (693,201 | ) | ||||
Net
cash provided by operating activities
|
10,767,522 | 9,543,594 | ||||||
Investing
Activities
|
||||||||
Net
change in interest earning deposits
|
(3,005,727 | ) | - | |||||
Purchases
of securities available for sale
|
||||||||
Available
for sale
|
(184,766,963 | ) | (59,500,611 | ) | ||||
Held
to maturity
|
- | (500,000 | ) | |||||
Proceeds
from maturities and paydowns of securities:
|
||||||||
Available
for sale
|
38,833,694 | 14,634,228 | ||||||
Held
to maturity
|
1,533,526 | 1,256,157 | ||||||
Proceeds
from sale of securities:
|
||||||||
Available
for sale
|
81,803,318 | 4,505,678 | ||||||
Held
to maturity
|
3,775,034 | - | ||||||
Net
change in loans
|
48,897,854 | 36,172,352 | ||||||
Purchases
of premises and equipment
|
(561,031 | ) | (831,705 | ) | ||||
Proceeds
from sale of premises and equipment
|
500 | 1,033,151 | ||||||
Proceeds
from real estate owned sales
|
3,344,020 | 1,300,029 | ||||||
Other
investing activities
|
2,505,466 | 746,823 | ||||||
Net
cash used in investing activities
|
(7,640,309 | ) | (1,183,898 | ) | ||||
Financing
Activities
|
||||||||
Net
change in
|
||||||||
Noninterest-bearing,
interest-bearing demand and savings deposits
|
51,237,964 | 3,065,369 | ||||||
Certificates
of deposits
|
30,420,429 | 65,849,912 | ||||||
Proceeds
from FHLB advances
|
20,000,000 | 32,500,000 | ||||||
Repayment
of FHLB advances
|
(64,863,001 | ) | (90,606,874 | ) | ||||
Repayment
of other borrowings
|
(796,176 | ) | (756,210 | ) | ||||
Cash
dividends paid
|
(2,471,580 | ) | (3,557,342 | ) | ||||
Other
financing activities
|
591,917 | (151,973 | ) | |||||
Net
cash provided by financing activities
|
34,119,553 | 6,342,882 | ||||||
Net
Change in Cash and Cash Equivalents
|
37,246,766 | 14,702,578 | ||||||
Cash
and Cash Equivalents, Beginning of Year
|
46,340,897 | 39,703,452 | ||||||
Cash
and Cash Equivalents, End of Year
|
$ | 83,587,663 | $ | 54,406,030 | ||||
Additional
Cash Flows Information
|
||||||||
Interest
paid
|
$ | 19,503,456 | $ | 24,029,695 | ||||
Income
tax paid
|
350,000 | 550,000 | ||||||
Transfers
from loans to foreclosed real estate
|
6,111,047 | 3,773,583 | ||||||
Mortgage
servicing rights capitalized
|
380,815 | 1,617,153 |
Earnings
per share were computed as follows: (Dollars in thousands except per share
data)
|
Three
Months Ended Ended September 30,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Weighted-
|
Weighted-
|
|||||||||||||||||||||||
Average
|
Per-Share
|
Average
|
Per-Share
|
|||||||||||||||||||||
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
|||||||||||||||||||
(000's)
|
(000's)
|
|||||||||||||||||||||||
Basic
Earnings Per Share
|
||||||||||||||||||||||||
Net
income
|
$ | 1,621 | 6,877,481 | $ | 1,242 | 6,845,697 | ||||||||||||||||||
Dividends
and accretion on preferred stock
|
(451 | ) | (451 | ) | ||||||||||||||||||||
Income
available to common shareholders
|
$ | 1,170 | 6,877,481 | $ | 0.17 | $ | 791 | 6,845,697 | $ | 0.12 | ||||||||||||||
Effect
of Dilutive securities
|
||||||||||||||||||||||||
Stock
options and RRP grants
|
9,723 | 328 | ||||||||||||||||||||||
Diluted
Earnings Per Share
|
||||||||||||||||||||||||
Income
available to common stockholders and assumed
conversions
|
$ | 1,170 | 6,887,204 | $ | 0.17 | $ | 791 | 6,846,025 | $ | 0.12 |
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Weighted-
|
Weighted-
|
|||||||||||||||||||||||
Average
|
Per-Share
|
Average
|
Per-Share
|
|||||||||||||||||||||
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
|||||||||||||||||||
(000's)
|
(000's)
|
|||||||||||||||||||||||
Basic
Earnings Per Share
|
||||||||||||||||||||||||
Net
income
|
$ | 4,739 | 6,869,547 | $ | 4,353 | 6,836,345 | ||||||||||||||||||
Dividends
and accretion on preferred stock
|
(1,352 | ) | (1,352 | ) | ||||||||||||||||||||
Income
available to common shareholders
|
$ | 3,387 | 6,869,547 | $ | 0.49 | $ | 3,001 | 6,836,345 | $ | 0.44 | ||||||||||||||
Effect
of Dilutive securities
|
||||||||||||||||||||||||
Stock
options and RRP grants
|
8,136 | 110 | ||||||||||||||||||||||
Diluted
Earnings Per Share
|
||||||||||||||||||||||||
Income
available to common stockholders and assumed
conversions
|
$ | 3,387 | 6,877,683 | $ | 0.49 | $ | 3,001 | 6,836,455 | $ | 0.44 |
September
30, 2010
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Loss
|
Fair
Value
|
|||||||||||||
Available
for Sale Securities
|
||||||||||||||||
Mortgage-backed
securities
|
$ | 71,046 | $ | 1,909 | $ | (9 | ) | $ | 72,946 | |||||||
Collateralized
mortgage obligations
|
100,987 | 2,659 | - | 103,646 | ||||||||||||
Municipals
|
1,186 | 93 | - | 1,279 | ||||||||||||
Federal
Agencies
|
16,937 | 95 | - | 17,032 | ||||||||||||
Small
Business Administration
|
17 | - | - | 17 | ||||||||||||
Corporate
obligations
|
6,880 | - | (4,443 | ) | 2,437 | |||||||||||
Marketable
equity securities
|
1,714 | - | (11 | ) | 1,703 | |||||||||||
Total
|
$ | 198,767 | $ | 4,756 | $ | (4,463 | ) | $ | 199,060 |
December
31, 2009
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Loss
|
Fair
Value
|
|||||||||||||
Available
for Sale Securities
|
||||||||||||||||
Mortgage-backed
securities
|
$ | 29,175 | $ | 824 | $ | (109 | ) | $ | 29,890 | |||||||
Collateralized
mortgage obligations
|
85,726 | 1,874 | (571 | ) | 87,029 | |||||||||||
Municipals
|
9,313 | 360 | (17 | ) | 9,656 | |||||||||||
Small
Business Administration
|
158 | - | (1 | ) | 157 | |||||||||||
Corporate
obligations
|
7,321 | - | (4,782 | ) | 2,539 | |||||||||||
Marketable
equity securities
|
1,685 | - | (42 | ) | 1,643 | |||||||||||
Total
|
$ | 133,378 | $ | 3,058 | $ | (5,522 | ) | $ | 130,914 | |||||||
Held
to Maturity Securities
|
||||||||||||||||
Mortgage-backed
securities
|
$ | 4,619 | $ | 29 | $ | (1,373 | ) | $ | 3,275 | |||||||
Collateralized
mortgage obligations
|
3,028 | 158 | (632 | ) | 2,554 | |||||||||||
Federal
Agency
|
500 | 4 | - | 504 | ||||||||||||
Total
|
$ | 8,147 | $ | 191 | $ | (2,005 | ) | $ | 6,333 |
Available
for Sale
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
Description
Securities
|
||||||||
Security
obligations due
|
||||||||
Within
one year
|
$ | - | $ | - | ||||
One
to five years
|
- | - | ||||||
Five
to ten years
|
5,012 | 5,025 | ||||||
After
ten years
|
19,991 | 15,722 | ||||||
25,003 | 20,747 | |||||||
Mortgage-backed
securities
|
71,046 | 72,947 | ||||||
Collateralized
mortgage obligations
|
100,987 | 103,646 | ||||||
Small
Business Administration
|
17 | 17 | ||||||
Marketable
equity securities
|
1,714 | 1,703 | ||||||
Totals
|
$ | 198,767 | $ | 199,060 |
September
30, 2010
|
||||||||||||||||||||||||
Less
than 12 months
|
12
months or more
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Available
for Sale
|
||||||||||||||||||||||||
Mortgage-backed
securities
|
$ | 6,277 | $ | (9 | ) | $ | - | $ | - | $ | 6,277 | $ | (9 | ) | ||||||||||
Collateralized
mortgage obligations
|
- | - | - | - | - | - | ||||||||||||||||||
Federal
agencies
|
- | - | - | - | - | - | ||||||||||||||||||
Municipals
|
- | - | - | - | - | - | ||||||||||||||||||
Small
Business Administration
|
- | - | - | - | - | - | ||||||||||||||||||
Corporate
obligations
|
- | - | 2,437 | (4,443 | ) | 2,437 | (4,443 | ) | ||||||||||||||||
Marketable
equity securities
|
- | - | 1,703 | (11 | ) | 1,703 | (11 | ) | ||||||||||||||||
Total
temporarily impaired securities
|
$ | 6,277 | $ | (9 | ) | $ | 4,140 | $ | (4,454 | ) | $ | 10,417 | $ | (4,463 | ) |
December
31, 2009
|
||||||||||||||||||||||||
Less
than 12 months
|
12
months or more
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Available
for Sale
|
||||||||||||||||||||||||
Mortgage-backed
securities
|
$ | 8,511 | $ | (109 | ) | $ | - | $ | - | $ | 8,511 | $ | (109 | ) | ||||||||||
Collateralized
mortgage obligations
|
16,829 | (251 | ) | 4,609 | (320 | ) | $ | 21,438 | $ | (571 | ) | |||||||||||||
Municipals
|
1,025 | (17 | ) | - | - | $ | 1,025 | $ | (17 | ) | ||||||||||||||
Small
Business Administration
|
- | - | 157 | (1 | ) | $ | 157 | $ | (1 | ) | ||||||||||||||
Corporate
obligations
|
- | - | 2,539 | (4,782 | ) | $ | 2,539 | $ | (4,782 | ) | ||||||||||||||
Marketable
equity securities
|
- | - | 1,647 | (42 | ) | $ | 1,647 | $ | (42 | ) | ||||||||||||||
Total
temporarily impaired securities
|
$ | 26,365 | $ | (377 | ) | $ | 8,952 | $ | (5,145 | ) | $ | 35,317 | $ | (5,522 | ) | |||||||||
Held
to Maturity
|
||||||||||||||||||||||||
Mortgage-backed
securities
|
$ | 239 | $ | (559 | ) | $ | 1,521 | $ | (814 | ) | 1,760 | (1,373 | ) | |||||||||||
Collateralized
mortgage obligations
|
199 | (157 | ) | 420 | (475 | ) | 619 | (632 | ) | |||||||||||||||
Total
temporarily impaired securities
|
$ | 438 | $ | (716 | ) | $ | 1,941 | $ | (1,289 | ) | $ | 2,379 | $ | (2,005 | ) |
·
|
Detailed
credit and structural evaluation of each piece of collateral in the trust
preferred securities;
|
·
|
Collateral
performance projections for each piece of collateral in the trust
preferred security;
|
·
|
Terms
of the trust preferred structure, as laid out in the indenture;
and
|
·
|
Discounted
cash flow modeling.
|
Original
|
Book
|
Fair
|
Unrealized
|
Realized
Losses
|
Lowest
|
||||||||||||||||||||||
Deal
|
Class
|
Par
|
Value
|
Value
|
Loss
|
2010
|
2009
|
Rating
|
|||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||
Alesco
Preferred Funding IX
|
CCC-
|
$ | 1,000 | $ | 895 | $ | 387 | $ | (508 | ) | $ | - | $ | - |
CCC-
|
||||||||||||
Alesco
Preferred Funding XVII
|
Ca
|
1,000 | 110 | 4 | (106 | ) | (5 | ) | (900 | ) |
Ca
|
||||||||||||||||
Preferred
Term Securities XIII
|
Ca
|
1,000 | 829 | 215 | (614 | ) | - | (177 | ) |
Ca
|
|||||||||||||||||
Preferred
Term Securities XVIII
|
Ca
|
1,000 | 900 | 244 | (656 | ) | (117 | ) | - |
Ca
|
|||||||||||||||||
Preferred
Term Securities XXVII
|
Ca
|
1,000 | 698 | 153 | (545 | ) | (276 | ) | - |
Ca
|
|||||||||||||||||
U.S.
Capital Funding I
|
Caa1
|
3,000 | 2,891 | 1,181 | (1,710 | ) | - | (109 | ) |
Caa1
|
|||||||||||||||||
U.S.
Capital Funding III
|
Ca
|
1,000 | 500 | 252 | (248 | ) | - | - |
Ca
|
||||||||||||||||||
U.S.
Capital Funding V
|
Caa3
|
1,300 | 57 | 1 | (56 | ) | (3 | ) | (605 | ) |
Caa3
|
||||||||||||||||
Total
|
$ | 10,300 | $ | 6,880 | $ | 2,437 | $ | (4,443 | ) | $ | (401 | ) | $ | (1,791 | ) |
Accumulated
Credit Losses
|
||||||||
2010
|
2009
|
|||||||
Credit
losses on debt securities held
|
||||||||
Beginning
of year
|
$ | (3,905 | ) | $ | (1,350 | ) | ||
Additions
related to increases in previously recognized other-than-temporary
losses for the nine months ended
|
(827 | ) | (200 | ) | ||||
As
of September 30,
|
$ | (4,732 | ) | $ | (1,550 | ) |
Accumulated
Credit Losses
|
||||||||
2010
|
2009
|
|||||||
Credit
losses on debt securities held
|
||||||||
Beginning
of period
|
$ | (4,633 | ) | $ | (1,550 | ) | ||
Additions
related to increases in previously recognized other-than-temporary losses
for the three months ended
|
(99 | ) | - | |||||
As
of September 30,
|
$ | (4,732 | ) | $ | (1,550 | ) |
2010
|
2009
|
|||||||
Net
unrealized gain (loss) on securities available-for-sale
|
$ | 3,130 | $ | 98 | ||||
Net
unrealized loss on securities available-for-sale for which a portion of an
other-than-temporary impairment has been recognized in
income
|
(1,257 | ) | (622 | ) | ||||
Net
unrealized loss on derivative used for cash flow hedges
|
(536 | ) | - | |||||
Less
reclassification adjustment for realized losses included in
income
|
887 | (6 | ) | |||||
Other
comprehensive income (loss), before tax effect
|
2,224 | (530 | ) | |||||
Tax
expense (benefit)
|
783 | 7 | ||||||
Other
comprehensive income (loss)
|
$ | 1,441 | $ | (537 | ) |
September
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
Net
unrealized gain on securities available-for-sale
|
$ | 1,552 | $ | 331 | ||||
Net
unrealized loss on securities available-for-sale for which a portion of
an
|
||||||||
other-than-temporary
impairment has been recognized in income
|
(1,257 | ) | (2,796 | ) | ||||
Net
unrealized gain (loss) on derivative used for cash flow
hedges
|
(492 | ) | 44 | |||||
Net
unrealized loss relating to defined benefit plan liability
|
(438 | ) | (438 | ) | ||||
(635 | ) | (2,859 | ) | |||||
Tax
expense (benefit)
|
(218 | ) | (1,001 | ) | ||||
Net-of-tax
amount
|
$ | (417 | ) | $ | (1,858 | ) |
Level 1 | Quoted prices in active markets for identical assets or liabilities |
Level
2
|
Observable
inputs other than Level 1 prices, such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other
inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or
liabilities
|
Level
3
|
Unobservable
inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or
liabilities
|
Fair
Value Measurements Using
|
||||||||||||||||
Fair
Value
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||
September
30, 2010
|
||||||||||||||||
Mortgage-backed
securities
|
||||||||||||||||
Agency
|
$ | 72,946 | $ | - | $ | 72,946 | $ | - | ||||||||
Collateralized
mortgage obligations
|
||||||||||||||||
Agency
|
103,646 | - | 103,646 | - | ||||||||||||
Federal
agencies
|
17,032 | - | 17,032 | - | ||||||||||||
Municipals
|
1,279 | - | 1,279 | - | ||||||||||||
Small
Business Administration
|
17 | - | 17 | - | ||||||||||||
Corporate
obligations
|
2,437 | - | 2,437 | |||||||||||||
Marketable
equity securities
|
1,703 | 1,703 | - | - | ||||||||||||
Available-for-sale
securities
|
$ | 199,060 | $ | 1,703 | $ | 194,920 | $ | 2,437 | ||||||||
December
31, 2009
|
||||||||||||||||
Mortgage-backed
securities
|
||||||||||||||||
Agency
|
$ | 29,890 | $ | - | $ | 29,890 | $ | - | ||||||||
Collateralized
mortgage obligations
|
||||||||||||||||
Agency
|
75,564 | - | 75,564 | - | ||||||||||||
Private
labeled
|
11,465 | - | 11,465 | - | ||||||||||||
Municipals
|
9,656 | - | 9,656 | - | ||||||||||||
Small
Business Administration
|
157 | - | 157 | - | ||||||||||||
Corporate
obligations
|
2,539 | - | 2,539 | |||||||||||||
Marketable
equity securities
|
1,643 | 1,643 | - | - | ||||||||||||
Available-for-sale
securities
|
$ | 130,914 | $ | 1,643 | $ | 126,732 | $ | 2,539 |
2010
|
2009
|
|||||||
Beginning
balance
|
$ | 2,762 | $ | 2,889 | ||||
Total
realized and unrealized gains and losses
|
||||||||
Included
in net income
|
- | - | ||||||
Included
in other comprehensive loss
|
(250 | ) | 46 | |||||
Purchases,
issuances and settlements
|
(75 | ) | 20 | |||||
Transfers
in/out of Level 3
|
- | - | ||||||
Ending
balance
|
$ | 2,437 | $ | 2,955 | ||||
Total
gains or losses for the period included in net income attributable to the
change in unrealized gains or losses related to assets and liabilities
still held at the reporting date
|
$ | - | $ | - |
2010
|
2009
|
|||||||
Beginning
balance
|
$ | 2,539 | $ | 6,317 | ||||
Total
realized and unrealized gains and losses
|
||||||||
Included
in net income
|
(401 | ) | (200 | ) | ||||
Included
in other comprehensive loss
|
339 | (3,187 | ) | |||||
Purchases,
issuances and settlements
|
(40 | ) | 25 | |||||
Transfers
in/out of Level 3
|
- | - | ||||||
Ending
balance
|
$ | 2,437 | $ | 2,955 | ||||
Total
gains or losses for the period included in net income attributable to the
change in unrealized gains or losses related to assets and liabilities
still held at the reporting date
|
$ | 401 | $ | 200 |
Fair
Value Measurements Using
|
||||||||||||||||
Fair
Value
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||
September
30, 2010
|
||||||||||||||||
Impaired
Loans
|
$ | 7,383 | $ | - | $ | - | $ | 7,383 | ||||||||
Other
real estate owned
|
3,142 | - | - | 3,142 | ||||||||||||
December
31, 2009
|
||||||||||||||||
Impaired
Loans
|
$ | 4,614 | $ | - | $ | - | $ | 4,614 | ||||||||
Other
real estate owned
|
977 | - | - | 977 |
September
30, 2010
|
December
31, 2009
|
|||||||||||||||
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
|||||||||||||
Assets
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 83,588 | $ | 83,588 | $ | 46,341 | $ | 46,341 | ||||||||
Interest-bearing
deposits
|
3,006 | 3,006 | - | - | ||||||||||||
Investment
securities held-to-maturity
|
- | - | 8,147 | 6,333 | ||||||||||||
Loans
held for sale
|
9,903 | 9,911 | 2,521 | 2,527 | ||||||||||||
Loans
|
998,620 | 1,023,628 | 1,059,694 | 1,086,805 | ||||||||||||
Stock
in FHLB
|
18,632 | 18,632 | 18,632 | 18,632 | ||||||||||||
Interest
receivable
|
4,849 | 4,849 | 4,376 | 4,376 | ||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
$ | 1,126,854 | $ | 1,098,174 | $ | 1,045,196 | $ | 1,007,530 | ||||||||
FHLB
advances
|
152,649 | 171,888 | 197,960 | 194,717 | ||||||||||||
Other
borrowings
|
13,350 | 14,111 | 14,114 | 15,083 | ||||||||||||
Interest
payable
|
1,304 | 1,304 | 1,192 | 1,192 | ||||||||||||
Advances
by borrowers for taxes and
|
||||||||||||||||
insurance
|
2,326 | 2,326 | 1,734 | 1,734 |
September
30,
|
||||||||
2010
|
2009
|
|||||||
Balance
beginning of period
|
$ | 16,414 | $ | 15,107 | ||||
Additions:
|
||||||||
Provision
charged to operations
|
5,275 | 4,850 | ||||||
Deductions:
|
||||||||
Loans
charged-off
|
6,114 | 4,114 | ||||||
Recoveries
|
905 | 777 | ||||||
Net
charge-offs
|
5,209 | 3,337 | ||||||
Balance
end of period
|
$ | 16,480 | $ | 16,620 |
September
30,
|
||||||||
2010
|
2009
|
|||||||
Non-performing
assets
|
||||||||
Non-accrual
loans
|
$ | 30,192 | $ | 31,062 | ||||
Accuring
loans 90 days + past due
|
366 | 1,266 | ||||||
Restructured
loans
|
1,027 | 463 | ||||||
Total
non-performing loans
|
31,585 | 32,791 | ||||||
Real
estate owned
|
5,686 | 4,095 | ||||||
Other
repossessed assets
|
1,142 | 1,440 | ||||||
Non-performing
securities
|
- | 100 | ||||||
Total
non-performing assets
|
$ | 38,413 | $ | 38,426 |
Three
Months Ended
|
Amount
|
Percent
|
||||||||||||||
Non-Interest
Income
|
9/30/2010
|
9/30/2009
|
Change
|
Change
|
||||||||||||
Service
fee income
|
$ | 1,829 | $ | 1,955 | $ | (126 | ) | -6.4 | % | |||||||
Net
realized gain (loss) on sale of securities
|
(381 | ) | 60 | (441 | ) | -735.0 | % | |||||||||
Equity
in losses of limited partnerships
|
(127 | ) | (78 | ) | (49 | ) | 62.8 | % | ||||||||
Commissions
|
896 | 710 | 186 | 26.2 | % | |||||||||||
Net
gains on sales of loans
|
846 | 527 | 319 | 60.5 | % | |||||||||||
Net
servicing fees
|
34 | 56 | (22 | ) | -39.3 | % | ||||||||||
Increase
in cash surrender value of life insurance
|
630 | 385 | 245 | 63.6 | % | |||||||||||
Net
other-than-temporary losses on securities
|
(99 | ) | - | (99 | ) | |||||||||||
Other
income
|
15 | 33 | (18 | ) | -54.5 | % | ||||||||||
Total
Non-Interest Income
|
$ | 3,643 | $ | 3,648 | $ | (5 | ) | -0.1 | % |
Three
Months Ended
|
Amount
|
Percent
|
||||||||||||||
Non-Interest
Expense
|
9/30/2010
|
9/30/2009
|
Change
|
Change
|
||||||||||||
Salaries
and employee benefits
|
$ | 5,315 | $ | 5,823 | $ | (508 | ) | -8.7 | % | |||||||
Net
occupancy expenses
|
629 | 671 | (42 | ) | -6.3 | % | ||||||||||
Equipment
expenses
|
480 | 479 | 1 | 0.2 | % | |||||||||||
Data
processing fees
|
363 | 388 | (25 | ) | -6.4 | % | ||||||||||
Automated
teller machine
|
294 | 274 | 20 | 7.3 | % | |||||||||||
Deposit
insurance
|
465 | 416 | 49 | 11.8 | % | |||||||||||
Professional
fees
|
306 | 310 | (4 | ) | -1.3 | % | ||||||||||
Advertising
and promotion
|
296 | 408 | (112 | ) | -27.5 | % | ||||||||||
Software
subscriptions and publications
|
377 | 368 | 9 | 2.4 | % | |||||||||||
Intangible
amortization
|
327 | 372 | (45 | ) | -12.1 | % | ||||||||||
Repossessed
assets expense
|
308 | 446 | (138 | ) | -30.9 | % | ||||||||||
Other
expenses
|
973 | 992 | (19 | ) | -1.9 | % | ||||||||||
Total
Non-Interest Expense
|
$ | 10,133 | $ | 10,947 | $ | (814 | ) | -7.4 | % |
Nine Months
Ended
|
Amount
|
Percent
|
||||||||||||||
Non-Interest
Income
|
9/30/2010
|
9/30/2009
|
Change
|
Change
|
||||||||||||
Service
fee income
|
$ | 5,456 | $ | 5,522 | $ | (66 | ) | -1.2 | % | |||||||
Net
realized gain (loss) on sale of securities
|
(61 | ) | 419 | (480 | ) | -114.6 | % | |||||||||
Equity
in losses of limited partnerships
|
(382 | ) | (233 | ) | (149 | ) | 63.9 | % | ||||||||
Commissions
|
2,920 | 2,198 | 722 | 32.8 | % | |||||||||||
Net
gains on sales of loans
|
1,410 | 2,171 | (761 | ) | -35.1 | % | ||||||||||
Net
servicing fees
|
102 | 192 | (90 | ) | -46.9 | % | ||||||||||
Increase
in cash surrender value of life insurance
|
1,385 | 1,184 | 201 | 17.0 | % | |||||||||||
Net
other-than-temporary losses on securities
|
(826 | ) | (200 | ) | (626 | ) | 313.0 | % | ||||||||
Other
income
|
174 | 121 | 53 | 43.8 | % | |||||||||||
Total
Non-Interest Income
|
$ | 10,178 | $ | 11,374 | $ | (1,196 | ) | -10.5 | % |
Nine
Months Ended
|
Amount
|
Percent
|
||||||||||||||
Non-Interest
Expense
|
9/30/2010
|
9/30/2009
|
Change
|
Change
|
||||||||||||
Salaries
and employee benefits
|
$ | 15,982 | $ | 16,970 | $ | (988 | ) | -5.8 | % | |||||||
Net
occupancy expenses
|
1,871 | 2,065 | (194 | ) | -9.4 | % | ||||||||||
Equipment
expenses
|
1,460 | 1,295 | 165 | 12.7 | % | |||||||||||
Data
processing fees
|
1,162 | 1,103 | 59 | 5.3 | % | |||||||||||
Automated
teller machine
|
870 | 835 | 35 | 4.2 | % | |||||||||||
Deposit
insurance
|
1,365 | 1,849 | (484 | ) | -26.2 | % | ||||||||||
Professional
fees
|
891 | 972 | (81 | ) | -8.3 | % | ||||||||||
Advertising
and promotion
|
900 | 1,133 | (233 | ) | -20.6 | % | ||||||||||
Software
subscriptions and publications
|
1,177 | 1,045 | 132 | 12.6 | % | |||||||||||
Intangible
amortization
|
1,033 | 1,166 | (133 | ) | -11.4 | % | ||||||||||
Repossessed
assets expense
|
1,388 | 1,127 | 261 | 23.2 | % | |||||||||||
Other
expenses
|
2,854 | 3,069 | (215 | ) | -7.0 | % | ||||||||||
Total
Non-Interest Expense
|
$ | 30,953 | $ | 32,629 | $ | (1,676 | ) | -5.1 | % |
September
30, 2010
|
|
Net
Portfolio Value
|
Changes
|
NPV
as % of PV of Assets
|
|||||||||
In
Rates
|
$
Amount
|
$
Change
|
%
Change
|
NPV Ratio
|
Change
|
|||||
+300
bp
|
176,863
|
-21,695
|
-11%
|
12.83%
|
-68
bp
|
|||||
+200
bp
|
187,574
|
-10,984
|
-6%
|
13.31%
|
-20
bp
|
|||||
+100
bp
|
195,618
|
-2,940
|
-1%
|
13.58%
|
8
bp
|
|||||
0
bp
|
198,558
|
13.50%
|
||||||||
-100
bp
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
|||||
-200
bp
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
|||||
-300
bp
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
September
30, 2009
|
|
Net
Portfolio Value
|
Changes
|
NPV
as % of PV of Assets
|
|||||||||
In
Rates
|
$
Amount
|
$
Change
|
%
Change
|
NPV Ratio
|
Change
|
|||||
+300
bp
|
172,990
|
-25,568
|
-11%
|
12.91%
|
-71
bp
|
|||||
+200
bp
|
183,794
|
-14,764
|
-5%
|
13.43%
|
-19
bp
|
|||||
+100
bp
|
191,453
|
-7,105
|
-1%
|
13.71%
|
9
bp
|
|||||
0
bp
|
193,759
|
13.62%
|
||||||||
-100
bp
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
|||||
-200
bp
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
|||||
-300
bp
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
n/m(1)
|
|||||
n/m(1)
- not meaningful because certain market interest rates would be below zero
at that level of rate shock.
|
(a)
|
An
evaluation of the Company’s disclosure controls and procedures (as defined
in Rule 13a -15(c) under the Securities Exchange Act of 1934 (the “Act”),
as of September 30, 2010 was carried out under the supervision and with
the participation of the Company’s Chief Executive Officer, Chief
Financial Officer and several other members of the Company’s senior
management as of the end of the period preceding the filing of this
quarterly report. The Company’s Chief Executive Officer and Chief
Financial Officer concluded that the Company’s disclosure controls and
procedures as currently in effect are effective in ensuring that the
information required to be disclosed by the Company in the reports it
files or submits under the Act is (i) accumulated and communicated to the
Company’s management (including the Chief Executive Officer and the Chief
Financial Officer) in a timely manner, and (ii) recorded, processed,
summarized and reported within the time periods specified in the SEC’s
rules and forms. There have been no changes in our internal control over
financial reporting (as defined in Rule 13a – 15(f) under the Act) that
occurred during the quarter ended September 30, 2010 that have materially
affected, or are likely to materially affect our internal control over
financial reporting.
|
Number
|
Description
|
|
31.1
|
Rule
13a – 14(a) Certification – Chief Executive Officer
|
|
31.2
|
Rule
13a – 14(a) Certification – Chief Financial Officer
|
|
32
|
Certificate
of the Chief Executive Officer and Chief Financial Officer
pursuant to U. S. C. section 1350, as adopted pursuant to section 906 of
the Sarbanes-Oxley Act of
2003.
|
MutualFirst Financial,
Inc.
|
|||
Date:
November 15, 2010
|
By:
|
/s/ David W. Heeter | |
David W. Heeter | |||
President and Chief Executive Officer | |||
Date:
November 15, 2010
|
By:
|
/s/ Christopher D. Cook | |
Christopher D. Cook | |||
Senior
Vice President, Treasurer and Chief Financial Officer
|