x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
COMMUNITY PARTNERS BANCORP
|
||
(Exact Name of Registrant as Specified in Its Charter)
|
New Jersey
|
20-3700861
|
|
(State of Other Jurisdiction
of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
766 Shrewsbury Avenue, Tinton Falls, New Jersey
|
07724
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
(732) 389-8722
|
||
(Registrant’s Telephone Number, Including Area Code)
|
1250 Highway 35 South, Middletown, New Jersey, 07748
|
||
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
(Do not check if a smaller reporting company)
|
o
|
Smaller reporting company
|
x
|
PART I.
|
|
FINANCIAL INFORMATION
|
Page
|
||
3
|
|||||
3
|
|||||
4
|
|||||
5
|
|||||
6
|
|||||
7
|
|||||
8
|
|||||
37
|
|||||
60
|
|||||
60
|
|||||
PART II.
|
OTHER INFORMATION
|
||||
61
|
|||||
62
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
11,882
|
$
|
7,597
|
||||
Interest-bearing deposits in bank
|
31,569
|
30,425
|
||||||
Cash and cash equivalents
|
43,451
|
38,022
|
||||||
Securities available-for-sale
|
48,019
|
47,455
|
||||||
Securities held-to-maturity (fair value of $16,010 and $13,222 at September 30, 2012
and December 31, 2011, respectively)
|
15,729
|
13,105
|
||||||
Restricted investments, at cost
|
3,040
|
2,237
|
||||||
Loans
|
555,038
|
530,130
|
||||||
Allowance for loan losses
|
(7,486
|
)
|
(7,310
|
)
|
||||
Net loans
|
547,552
|
522,820
|
||||||
Other real estate owned
|
3,593
|
7,765
|
||||||
Bank-owned life insurance
|
13,345
|
12,998
|
||||||
Premises and equipment, net
|
2,371
|
2,640
|
||||||
Accrued interest receivable
|
1,983
|
1,928
|
||||||
Goodwill
|
18,109
|
18,109
|
||||||
Other intangible assets, net of accumulated amortization of $1,800 and
$1,675 at September 30, 2012 and December 31, 2011, respectively
|
306
|
431
|
||||||
Other assets
|
7,632
|
7,044
|
||||||
TOTAL ASSETS
|
$
|
705,130
|
$
|
674,554
|
||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
|
$
|
96,923
|
$
|
88,209
|
||||
Interest bearing
|
480,748
|
465,703
|
||||||
Total Deposits
|
577,671
|
553,912
|
||||||
Securities sold under agreements to repurchase
|
18,866
|
16,218
|
||||||
Accrued interest payable
|
65
|
107
|
||||||
Long-term debt
|
13,500
|
13,500
|
||||||
Other liabilities
|
4,097
|
3,683
|
||||||
Total Liabilities
|
614,199
|
587,420
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Preferred stock, no par value; 6,500,000 shares authorized;
|
||||||||
Preferred stock, Series B, none issued or outstanding
|
-
|
-
|
||||||
Preferred stock, Series C, $12,000,000 liquidation preference; 12,000 shares authorized; 12,000
issued and outstanding at September 30, 2012, and December 31, 2011, respectively
|
12,000
|
12,000
|
||||||
Common stock, no par value; 25,000,000 shares authorized; 7,981,783
and 7,942,218 shares issued and outstanding at September 30, 2012 and
December 31, 2011, respectively
|
71,478
|
71,179
|
||||||
Retained earnings
|
6,950
|
3,693
|
||||||
Accumulated other comprehensive income
|
503
|
262
|
||||||
Total Shareholders' Equity
|
90,931
|
87,134
|
||||||
TOTAL LIABILITIES and SHAREHOLDERS’ EQUITY
|
$
|
705,130
|
$
|
674,554
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
INTEREST INCOME:
|
||||||||||||||||
Loans, including fees
|
$
|
7,333
|
$
|
7,394
|
$
|
21,844
|
$
|
22,069
|
||||||||
Securities:
|
||||||||||||||||
Taxable
|
290
|
302
|
879
|
892
|
||||||||||||
Tax-exempt
|
101
|
92
|
296
|
269
|
||||||||||||
Federal funds sold and interest bearing deposits
|
15
|
31
|
57
|
77
|
||||||||||||
Total Interest Income
|
7,739
|
7,819
|
23,076
|
23,307
|
||||||||||||
INTEREST EXPENSE:
|
||||||||||||||||
Deposits
|
991
|
1,165
|
3,099
|
3,547
|
||||||||||||
Securities sold under agreements to repurchase
|
26
|
28
|
81
|
91
|
||||||||||||
Borrowings
|
109
|
109
|
325
|
324
|
||||||||||||
Total Interest Expense
|
1,126
|
1,302
|
3,505
|
3,962
|
||||||||||||
Net Interest Income
|
6,613
|
6,517
|
19,571
|
19,345
|
||||||||||||
PROVISION FOR LOAN LOSSES
|
330
|
730
|
950
|
1,855
|
||||||||||||
Net Interest Income after Provision for Loan Losses
|
6,283
|
5,787
|
18,621
|
17,490
|
||||||||||||
NON-INTEREST INCOME:
|
||||||||||||||||
Total other-than-temporary impairment losses
|
(32
|
)
|
-
|
(85
|
)
|
-
|
||||||||||
Less: Portion included in other comprehensive income (pre tax)
|
-
|
-
|
5
|
-
|
||||||||||||
Net other-than-temporary impairment charges to earnings
|
(32
|
)
|
-
|
(80
|
)
|
-
|
||||||||||
Service fees on deposit accounts
|
166
|
135
|
456
|
403
|
||||||||||||
Other loan fees
|
212
|
117
|
591
|
341
|
||||||||||||
Earnings from investment in life insurance
|
113
|
92
|
347
|
278
|
||||||||||||
Net realized gain on sale of securities
|
-
|
324
|
-
|
324
|
||||||||||||
Net gain on sale of SBA loans
|
-
|
20
|
187
|
101
|
||||||||||||
Other income
|
138
|
130
|
424
|
375
|
||||||||||||
Total Non-Interest Income
|
597
|
818
|
1,925
|
1,822
|
||||||||||||
NON-INTEREST EXPENSES:
|
||||||||||||||||
Salaries and employee benefits
|
2,774
|
2,634
|
8,175
|
7,957
|
||||||||||||
Occupancy and equipment
|
780
|
797
|
2,317
|
2,419
|
||||||||||||
Professional
|
167
|
242
|
515
|
649
|
||||||||||||
Insurance
|
84
|
99
|
260
|
298
|
||||||||||||
FDIC insurance and assessments
|
139
|
143
|
411
|
533
|
||||||||||||
Advertising
|
75
|
60
|
210
|
170
|
||||||||||||
Data processing
|
189
|
160
|
523
|
477
|
||||||||||||
Outside services fees
|
134
|
102
|
383
|
298
|
||||||||||||
Amortization of identifiable intangibles
|
39
|
47
|
125
|
153
|
||||||||||||
OREO expenses, OREO impairments and sales, net
|
43
|
176
|
628
|
183
|
||||||||||||
Loan workout expenses
|
110
|
5
|
201
|
85
|
||||||||||||
Other operating
|
385
|
374
|
1,136
|
1,155
|
||||||||||||
Total Non-Interest Expenses
|
4,919
|
4,839
|
14,884
|
14,377
|
||||||||||||
Income before Income Taxes
|
1,961
|
1,766
|
5,662
|
4,935
|
||||||||||||
INCOME TAX EXPENSE
|
727
|
661
|
2,087
|
1,829
|
||||||||||||
Net Income
|
1,234
|
1,105
|
3,575
|
3,106
|
||||||||||||
Preferred stock dividend and discount accretion
|
(31
|
)
|
(402
|
)
|
(318
|
)
|
(688
|
)
|
||||||||
Net income available to common shareholders
|
$
|
1,203
|
$
|
703
|
$
|
3,257
|
$
|
2,418
|
||||||||
EARNINGS PER COMMON SHARE:
|
||||||||||||||||
Basic
|
$
|
0.15
|
$
|
0.09
|
$
|
0.41
|
$
|
0.31
|
||||||||
Diluted
|
$
|
0.15
|
$
|
0.09
|
$
|
0.40
|
$
|
0.30
|
||||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic
|
7,952
|
7,924
|
7,939
|
7,877
|
||||||||||||
Diluted
|
8,138
|
8,080
|
8,122
|
8,033
|
Three Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Net income
|
$
|
1,234
|
$
|
1,105
|
||||
Other comprehensive income (loss):
|
||||||||
Reclassification adjustment for gains on sales of securities recognized in income,
net of deferred income tax 2012: $0; 2011 $130
|
-
|
(194
|
)
|
|||||
Unrealized holdings gains on securities available for sale, net of
deferred income tax 2012: $99; net of deferred tax benefit 2011: ($9)
|
149
|
5
|
|
|||||
Unrealized loss on securities for which a portion of the
impairment has been recognized in income, net of deferred income
tax benefit 2012: $13; 2011: $0
|
(19
|
)
|
-
|
|||||
Reclassification adjustment for other-than-temporary credit losses
on securities included in net income, net deferred income tax 2012: $13;
2011: $0
|
19
|
-
|
||||||
Other comprehensive income (loss)
|
149
|
(189
|
)
|
|||||
Total comprehensive income
|
$
|
1,383
|
$
|
916
|
Nine Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Net income
|
$
|
3,575
|
$
|
3,106
|
||||
Other comprehensive income:
|
||||||||
Reclassification adjustment for gains on sales of securities recognized in income,
net of deferred income tax 2012: $0; 2011 $130
|
-
|
(194
|
)
|
|||||
Unrealized holdings gains on securities available for sale, net of
deferred income tax 2012: $162; net of deferred tax benefit 2011: ($83)
|
244
|
274
|
||||||
Unrealized loss on securities for which a portion of the
impairment has been recognized in income, net of deferred income
tax benefit 2012: $34; 2011: $0
|
(51
|
)
|
-
|
|||||
Reclassification adjustment for other-than-temporary credit losses
on securities included in net income, net deferred income tax 2012 : $32;
2011: $0
|
48
|
-
|
||||||
Other comprehensive income
|
241
|
80
|
||||||
Total comprehensive income
|
$
|
3,816
|
$
|
3,186
|
Common Stock
|
Accumulated
|
|||||||||||||||||||||||
Preferred
Stock
|
Outstanding
shares
|
Amount
|
Retained
Earnings
|
Other
Comprehensive
Income
|
Total
Shareholders’
Equity
|
|||||||||||||||||||
Balance, January 1, 2012
|
$
|
12,000
|
7,942,218
|
$
|
71,179
|
$
|
3,693
|
$
|
262
|
$
|
87,134
|
|||||||||||||
Net income
|
-
|
-
|
-
|
3,575
|
-
|
3,575
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
241
|
241
|
||||||||||||||||||
Dividends on preferred stock, Series C
|
-
|
-
|
-
|
(318
|
)
|
-
|
(318
|
)
|
||||||||||||||||
Options exercised
|
-
|
37,130
|
124
|
-
|
-
|
124
|
||||||||||||||||||
Restricted stock awards - forfeiture
|
-
|
(4,133
|
)
|
(8
|
)
|
-
|
-
|
(8
|
)
|
|||||||||||||||
Tax-benefit-exercised non-qualified
stock options
|
-
|
-
|
12
|
-
|
-
|
12
|
||||||||||||||||||
Employee stock purchase program
|
-
|
6,568
|
35
|
-
|
-
|
35
|
||||||||||||||||||
Stock option compensation expense
|
-
|
-
|
136
|
-
|
-
|
136
|
||||||||||||||||||
Balance, September 30, 2012
|
$
|
12,000
|
7,981,783
|
$
|
71,478
|
$
|
6,950
|
$
|
503
|
$
|
90,931
|
|||||||||||||
Balance January 1, 2011
|
$
|
8,628
|
7,620,929
|
$
|
70,067
|
$
|
1,325
|
$
|
168
|
$
|
80,188
|
|||||||||||||
Net income
|
-
|
-
|
-
|
3,106
|
-
|
3,106
|
||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
80
|
80
|
||||||||||||||||||
Preferred stock, Series C issued
|
12,000
|
-
|
-
|
-
|
-
|
12,000
|
||||||||||||||||||
Preferred stock, Series C issuance costs
|
-
|
-
|
-
|
(48
|
)
|
-
|
(48
|
)
|
||||||||||||||||
Redemption of preferred stock, Series A
|
(9,000
|
)
|
-
|
-
|
-
|
-
|
(9,000
|
)
|
||||||||||||||||
Dividends on preferred stock, Series C
|
-
|
-
|
-
|
(54
|
)
|
-
|
(54
|
)
|
||||||||||||||||
Dividends on preferred stock, Series A
|
-
|
-
|
-
|
(262
|
)
|
-
|
(262
|
)
|
||||||||||||||||
Preferred stock, Series A discount accretion
|
372
|
-
|
-
|
(372
|
)
|
-
|
-
|
|||||||||||||||||
Options exercised
|
-
|
70,226
|
223
|
-
|
-
|
223
|
||||||||||||||||||
Tax-benefit-exercised non-qualified
stock options
|
-
|
-
|
34
|
-
|
-
|
34
|
||||||||||||||||||
Employee stock purchase program
|
-
|
3,702
|
18
|
-
|
-
|
18
|
||||||||||||||||||
Stock option compensation expense
|
-
|
-
|
113
|
-
|
-
|
113
|
||||||||||||||||||
Balance, September 30, 2011
|
$
|
12,000
|
7,694,857
|
$
|
70,455
|
$
|
3,695
|
$
|
248
|
$
|
86,398
|
Nine Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
3,575
|
$
|
3,106
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
490
|
560
|
||||||
Provision for loan losses
|
950
|
1,855
|
||||||
Intangible amortization
|
125
|
153
|
||||||
Net amortization of securities premiums and discounts
|
208
|
111
|
||||||
Earnings from investment in life insurance
|
(347
|
)
|
(278
|
)
|
||||
Net realized loss (gain) on sale of other real estate owned
|
130
|
(381
|
)
|
|||||
Other-than-temporary impairment on securities available-for-sale
|
80
|
-
|
||||||
Impairment on property held for sale
|
-
|
100
|
||||||
Impairment on other real estate owned
|
360
|
275
|
||||||
Stock option and awards compensation expense
|
128
|
113
|
||||||
Net realized gain on securities available-for-sale
|
-
|
(324
|
)
|
|||||
Gain from sale of SBA loans
|
(187
|
)
|
(101
|
)
|
||||
(Increase) decrease in assets:
|
||||||||
Accrued interest receivable
|
(55
|
)
|
104
|
|||||
Other assets
|
(739
|
)
|
74
|
|||||
(Decrease) increase in liabilities:
|
||||||||
Accrued interest payable
|
(42
|
)
|
(10
|
)
|
||||
Other liabilities
|
414
|
10
|
||||||
Net cash provided by operating activities
|
5,090
|
5,367
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of securities available-for-sale
|
(9,280
|
)
|
(24,634
|
)
|
||||
Purchase of securities held-to-maturity
|
(4,379
|
)
|
(3,291
|
)
|
||||
Proceeds from repayments, calls and maturities of securities available-for-sale
|
8,836
|
10,093
|
||||||
Proceeds from repayments, calls and maturities of securities held to maturity
|
1,739
|
3,422
|
||||||
Proceeds from the sale of securities available-for-sale
|
-
|
4,048
|
||||||
Proceeds from sale of SBA loans
|
1,987
|
1,804
|
||||||
Purchase of restricted investments
|
(803
|
)
|
(60
|
)
|
||||
Net increase in loans
|
(28,007
|
)
|
(7,168
|
)
|
||||
Purchases of premises and equipment
|
(221
|
)
|
(205
|
)
|
||||
Improvements on other real estate owned
|
(66
|
)
|
(652
|
)
|
||||
Proceeds from sale of other real estate owned
|
4,273
|
2,852
|
||||||
Net cash used in investing activities
|
(25,921
|
) |
(13,791
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
23,759
|
19,626
|
||||||
Net increase in securities sold under agreements to repurchase
|
2,648
|
2,694
|
||||||
Proceeds from issuance of preferred stock, Series C
|
-
|
12,000
|
||||||
Preferred stock, Series C, issuance costs
|
-
|
(48
|
)
|
|||||
Redemption of preferred stock, Series A
|
-
|
(9,000
|
)
|
|||||
Cash dividends paid on preferred stocks
|
(318
|
)
|
(316
|
)
|
||||
Proceeds from employee stock purchase plan
|
35
|
18
|
||||||
Proceeds from exercise of stock options
|
124
|
223
|
||||||
Tax benefit of options exercised
|
12
|
34
|
||||||
Net cash provided by financing activities
|
26,260
|
25,231
|
||||||
Net increase in cash and cash equivalents
|
5,429
|
16,807
|
||||||
Cash and cash equivalents – beginning
|
38,022
|
34,443
|
||||||
Cash and cash equivalents - ending
|
$
|
43,451
|
$
|
51,250
|
||||
Supplementary cash flow information:
|
||||||||
Interest paid
|
$
|
3,547
|
$
|
3,972
|
||||
Income taxes paid
|
$
|
2,635
|
$
|
2,547
|
||||
Supplementary schedule of non-cash activities:
|
||||||||
Other real estate acquired in settlement of loans
|
$
|
525
|
$
|
588
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(dollars in thousands, except per share data)
|
||||||||||||||||
Net income
|
$
|
1,234
|
$
|
1,105
|
$
|
3,575
|
$
|
3,106
|
||||||||
Preferred stock dividend and
discount accretion
|
(31
|
)
|
(402
|
)
|
(318
|
)
|
(688
|
)
|
||||||||
Net income applicable to common
shareholders
|
$
|
1,203
|
$
|
703
|
$
|
3,257
|
$
|
2,418
|
||||||||
Weighted average common shares
outstanding
|
7,951,849
|
7,923,684
|
7,939,209
|
7,877,408
|
||||||||||||
Effect of dilutive securities, stock
options and warrants
|
185,743
|
156,792
|
182,978
|
155,577
|
||||||||||||
Weighted average common shares
outstanding used to calculate diluted
earnings per share
|
8,137,592
|
8,080,476
|
8,122,187
|
8,032,985
|
||||||||||||
Basic earnings per common share
|
$
|
0.15
|
$
|
0.09
|
$
|
0.41
|
$
|
0.31
|
||||||||
Diluted earnings per common share
|
$
|
0.15
|
$
|
0.09
|
$
|
0.40
|
$
|
0.30
|
Gross
|
Gross
Unrealized Losses
|
|||||||||||||||||||
(in thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Noncredit
OTTI
|
Other
|
Fair
Value
|
|||||||||||||||
September 30, 2012:
|
||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||
U.S. Government agency securities
|
$
|
1,200
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,200
|
||||||||||
Municipal securities
|
1,257
|
64
|
-
|
-
|
1,321
|
|||||||||||||||
U.S. Government-sponsored enterprises (“GSE”) –
Residential mortgage-backed securities
|
21,219
|
781
|
-
|
(2
|
)
|
21,998
|
||||||||||||||
Collateralized residential mortgage obligations
|
17,175
|
315
|
-
|
(2
|
)
|
17,488
|
||||||||||||||
Corporate debt securities, primarily financial
institutions
|
4,020
|
45
|
(166
|
)
|
(311
|
)
|
3,588
|
|||||||||||||
44,871
|
1,205
|
(166
|
)
|
(315
|
)
|
45,595
|
||||||||||||||
Community Reinvestment Act (“CRA”)
|
||||||||||||||||||||
mutual fund
|
2,318
|
106
|
-
|
-
|
2,424
|
|||||||||||||||
$
|
47,189
|
$
|
1,311
|
$
|
(166
|
)
|
$
|
(315
|
)
|
$
|
48,019
|
|||||||||
Securities held to maturity:
|
||||||||||||||||||||
Municipal securities
|
$
|
11,893
|
$
|
636
|
$
|
-
|
$
|
(4
|
)
|
$
|
12,525
|
|||||||||
GSE – Residential mortgage-backed securities
|
1,089
|
13
|
-
|
-
|
1,102
|
|||||||||||||||
Collateralized residential mortgage obligations
|
936
|
-
|
-
|
(1
|
)
|
935
|
||||||||||||||
Corporate debt securities, primarily financial
institutions
|
1,811
|
-
|
-
|
(363
|
)
|
1,448
|
||||||||||||||
$
|
15,729
|
$
|
649
|
$
|
-
|
$
|
(368
|
)
|
$
|
16,010
|
Gross
|
Gross
Unrealized Losses
|
|||||||||||||||||||
(in thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Noncredit
OTTI
|
Other
|
Fair
Value
|
|||||||||||||||
December 31, 2011:
|
||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||
U.S. Government agency securities
|
$
|
2,250
|
$
|
8
|
$
|
-
|
$
|
-
|
$
|
2,258
|
||||||||||
Municipal securities
|
1,261
|
46
|
-
|
-
|
1,307
|
|||||||||||||||
GSE – Residential mortgage-backed securities
|
21,317
|
581
|
-
|
(20
|
)
|
21,878
|
||||||||||||||
Collateralized residential mortgage obligations
|
16,865
|
298
|
-
|
-
|
17,163
|
|||||||||||||||
Corporate debt securities, primarily financial
institutions
|
3,067
|
-
|
(183
|
)
|
(356
|
)
|
2,528
|
|||||||||||||
44,760
|
933
|
(183
|
)
|
(376
|
)
|
45,134
|
||||||||||||||
CRA mutual fund
|
2,258
|
63
|
-
|
-
|
2,321
|
|||||||||||||||
$
|
47,018
|
$
|
996
|
$
|
(183
|
)
|
$
|
(376
|
)
|
$
|
47,455
|
|||||||||
Securities held to maturity:
|
||||||||||||||||||||
Municipal securities
|
$
|
11,296
|
$
|
613
|
$
|
-
|
$
|
(2
|
)
|
$
|
11,907
|
|||||||||
Corporate debt securities, primarily financial
institutions
|
1,809
|
-
|
-
|
(494
|
)
|
1,315
|
||||||||||||||
$
|
13,105
|
$
|
613
|
$
|
-
|
$
|
(496
|
)
|
$
|
13,222
|
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Due in one year or less
|
$
|
-
|
$
|
-
|
$
|
3,491
|
$
|
3,497
|
||||||||
Due in one year through five years
|
1,793
|
1,802
|
1,796
|
1,916
|
||||||||||||
Due in five years through ten years
|
2,666
|
2,686
|
4,727
|
4,991
|
||||||||||||
Due after ten years
|
2,018
|
1,621
|
3,690
|
3,569
|
||||||||||||
6,477
|
6,109
|
13,704
|
13,973
|
|||||||||||||
GSE – Residential mortgage-backed securities
|
21,219
|
21,998
|
1,089
|
1,102
|
||||||||||||
Collateralized residential mortgage obligations
|
17,175
|
17,488
|
936
|
935
|
||||||||||||
$
|
44,871
|
$
|
45,595
|
$
|
15,729
|
$
|
16,010
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
September 30, 2012:
|
(in thousands)
|
|||||||||||||||||||||||
GSE – Residential mortgage-backed
securities
|
$
|
-
|
$
|
-
|
$
|
867
|
$
|
(2
|
)
|
$
|
867
|
$
|
(2
|
)
|
||||||||||
Collateralized residential mortgage
obligations
|
2,250
|
(3
|
)
|
-
|
-
|
2,250
|
(3
|
)
|
||||||||||||||||
Municipal securities
|
759
|
(4
|
)
|
-
|
-
|
759
|
(4
|
)
|
||||||||||||||||
Corporate debt securities, primarily
financial institutions
|
-
|
-
|
2,657
|
(839
|
)
|
2,657
|
(839
|
)
|
||||||||||||||||
Total Temporarily
|
||||||||||||||||||||||||
Impaired Securities
|
$
|
3,009
|
$
|
(7
|
)
|
$
|
3,524
|
$
|
(841
|
)
|
$
|
6,533
|
$
|
(848
|
)
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
December 31, 2011:
|
(in thousands)
|
|||||||||||||||||||||||
Municipal securities
|
$
|
969
|
$
|
(2
|
)
|
$
|
-
|
$
|
-
|
$
|
969
|
$
|
(2
|
)
|
||||||||||
GSE – Residential mortgage-backed
securities
|
3,490
|
(20
|
)
|
-
|
-
|
3,490
|
(20
|
)
|
||||||||||||||||
Corporate debt securities, primarily
financial institutions
|
1,252
|
(50
|
)
|
2,591
|
(983
|
)
|
3,843
|
(1,033
|
)
|
|||||||||||||||
Total Temporarily
|
||||||||||||||||||||||||
Impaired Securities
|
$
|
5,711
|
$
|
(72
|
)
|
$
|
2,591
|
$
|
(983
|
)
|
$
|
8,302
|
$
|
(1,055
|
)
|
2012
|
2011
|
|||||||
Beginning balance, July 1,
|
$
|
276
|
$
|
228
|
||||
Additional increases to the amount related to the credit loss
|
||||||||
for which an other-than-temporary impairment was
|
||||||||
previously recognized
|
32
|
-
|
||||||
Ending balance, September 30,
|
$
|
308
|
$
|
228
|
||||
Beginning balance, January 1,
|
$
|
228
|
$
|
228
|
||||
Additional increases to the amount related to the credit loss
|
||||||||
for which an other-than-temporary impairment was
|
||||||||
previously recognized
|
80
|
-
|
||||||
Ending balance, September 30,
|
$
|
308
|
$
|
228
|
|
1.
|
The loan’s observable market price;
|
|
2.
|
The fair value of the underlying collateral; or
|
|
3.
|
The present value (PV) of expected future cash flows.
|
|
1.
|
Changes in lending policy and procedures, including changes in underwriting standards and collection practices not previously considered in estimating credit losses.
|
|
2.
|
Changes in relevant economic and business conditions.
|
|
3.
|
Changes in nature and volume of the loan portfolio and in the terms of loans.
|
|
4.
|
Changes in experience, ability and depth of lending management and staff.
|
|
5.
|
Changes in the volume and severity of past due loans, the volume of non-accrual loans and the volume and severity of adversely classified loans.
|
|
6.
|
Changes in the quality of the loan review system.
|
|
7.
|
Changes in the value of underlying collateral for collateral-dependent loans.
|
|
8.
|
The existence and effect of any concentration of credit and changes in the level of such concentrations.
|
|
9.
|
The effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.
|
September 30,
2012
|
December 31,
2011
|
|||||||
(In Thousands)
|
||||||||
Commercial and industrial
|
$
|
134,390
|
$
|
136,869
|
||||
Real estate – construction
|
72,878
|
51,180
|
||||||
Real estate – commercial
|
284,578
|
270,688
|
||||||
Real estate – residential
|
18,794
|
19,201
|
||||||
Consumer
|
44,986
|
52,853
|
||||||
555,626
|
530,791
|
|||||||
Allowance for loan losses
|
(7,486
|
)
|
(7,310
|
)
|
||||
Unearned fees
|
(588
|
)
|
(661
|
)
|
||||
Net Loans
|
$
|
547,552
|
$
|
522,820
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days &
Greater
|
Total Past
Due
|
Current
|
Total Loans
Receivable
|
Loans
Receivable
>90 Days and
Accruing
|
||||||||||||||||||||||
September 30, 2012
|
(In Thousands)
|
|||||||||||||||||||||||||||
Commercial and industrial
|
$
|
2,141
|
$
|
798
|
$
|
2,294
|
$
|
5,233
|
$
|
129,157
|
$
|
134,390
|
$
|
647
|
||||||||||||||
Real estate – construction
|
166
|
-
|
-
|
166
|
72,712
|
72,878
|
-
|
|||||||||||||||||||||
Real estate – commercial
|
7,025
|
1,611
|
4,047
|
12,683
|
271,895
|
284,578
|
3,097
|
|||||||||||||||||||||
Real estate – residential
|
158
|
-
|
263
|
421
|
18,373
|
18,794
|
-
|
|||||||||||||||||||||
Consumer
|
94
|
159
|
1,829
|
2,082
|
42,904
|
44,986
|
-
|
|||||||||||||||||||||
Total
|
$
|
9,584
|
$
|
2,568
|
$
|
8,433
|
$
|
20,585
|
$
|
535,041
|
$
|
555,626
|
$
|
3,744
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days &
Greater
|
Total Past
Due
|
Current
|
Total Loans
Receivable
|
Loans
Receivable
>90 Days and
Accruing
|
||||||||||||||||||||||
December 31, 2011
|
(In Thousands)
|
|||||||||||||||||||||||||||
Commercial and industrial
|
$
|
538
|
$
|
1,776
|
$
|
2,349
|
$
|
4,663
|
$
|
132,206
|
$
|
136,869
|
$
|
-
|
||||||||||||||
Real estate – construction
|
-
|
-
|
292
|
292
|
50,888
|
51,180
|
-
|
|||||||||||||||||||||
Real estate – commercial
|
5,499
|
-
|
145
|
5,644
|
265,044
|
270,688
|
-
|
|||||||||||||||||||||
Real estate – residential
|
-
|
998
|
263
|
1,261
|
17,940
|
19,201
|
-
|
|||||||||||||||||||||
Consumer
|
375
|
50
|
2,191
|
2,616
|
50,237
|
52,853
|
-
|
|||||||||||||||||||||
Total
|
$
|
6,412
|
$
|
2,824
|
$
|
5,240
|
$
|
14,476
|
$
|
516,315
|
$
|
530,791
|
$
|
-
|
September 30,
2012
|
December 31,
2011
|
|||||||
(In Thousands)
|
||||||||
Commercial and industrial
|
$
|
1,647
|
$
|
2,349
|
||||
Real estate – construction
|
-
|
292
|
||||||
Real estate – commercial
|
950
|
145
|
||||||
Real estate – residential
|
263
|
263
|
||||||
Consumer
|
1,829
|
2,191
|
||||||
Total
|
$
|
4,689
|
$
|
5,240
|
Three months ended September 30, 2012
|
||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
Troubled Debt Restructuring:
|
(Dollars in Thousands)
|
|||||||||||
Commercial and industrial
|
-
|
$
|
-
|
$
|
-
|
|||||||
Real estate – construction
|
-
|
-
|
-
|
|||||||||
Real estate – commercial
|
-
|
-
|
-
|
|||||||||
Real estate – residential
|
-
|
-
|
-
|
|||||||||
Consumer
|
1
|
148
|
148
|
|||||||||
Total
|
1
|
$
|
148
|
$
|
148
|
Nine months ended September 30, 2012
|
||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
Troubled Debt Restructuring:
|
(Dollars in Thousands)
|
|||||||||||
Commercial and industrial
|
3
|
$
|
2,011
|
$
|
2,011
|
|||||||
Real estate – construction
|
-
|
-
|
-
|
|||||||||
Real estate – commercial
|
1
|
196
|
196
|
|||||||||
Real estate – residential
|
-
|
-
|
-
|
|||||||||
Consumer
|
1
|
148
|
148
|
|||||||||
Total
|
5
|
$
|
2,355
|
$
|
2,355
|
Three months ended September 30, 2011
|
||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
Troubled Debt Restructuring:
|
(Dollars in Thousands)
|
|||||||||||
Commercial and industrial
|
-
|
$
|
-
|
$
|
-
|
|||||||
Real estate – construction
|
-
|
-
|
-
|
|||||||||
Real estate – commercial
|
-
|
-
|
-
|
|||||||||
Real estate – residential
|
-
|
-
|
-
|
|||||||||
Consumer
|
-
|
-
|
-
|
|||||||||
Total
|
-
|
$
|
-
|
$
|
-
|
Nine months ended September 30, 2011
|
||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
Troubled Debt Restructuring:
|
(Dollars in Thousands)
|
|||||||||||
Commercial and industrial
|
2
|
$
|
374
|
$
|
368
|
|||||||
Real estate – construction
|
-
|
-
|
-
|
|||||||||
Real estate – commercial
|
1
|
2,630
|
2,626
|
|||||||||
Real estate – residential
|
-
|
-
|
-
|
|||||||||
Consumer
|
-
|
-
|
-
|
|||||||||
Total
|
3
|
$
|
3,004
|
$
|
2,994
|
At or for the nine months ended September 30, 2012
|
||||||||||||||||||||
Recorded
Investment,
Net of
Charge-offs
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
September 30, 2012
|
(In Thousands)
|
|||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
5,125
|
$
|
5,125
|
$
|
-
|
$
|
5,151
|
$
|
201
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
4,241
|
4,241
|
-
|
4,252
|
101
|
|||||||||||||||
Real estate – residential
|
148
|
148
|
-
|
153
|
8
|
|||||||||||||||
Consumer
|
48
|
48
|
-
|
49
|
3
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
3,120
|
$
|
3,120
|
$
|
361
|
$
|
3,054
|
$
|
79
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
1,816
|
1,816
|
42
|
1,819
|
62
|
|||||||||||||||
Real estate – residential
|
263
|
263
|
69
|
263
|
-
|
|||||||||||||||
Consumer
|
1,780
|
1,780
|
300
|
1,780
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
8,245
|
$
|
8,245
|
$
|
361
|
$
|
8,205
|
$
|
280
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
6,057
|
6,057
|
42
|
6,071
|
163
|
|||||||||||||||
Real estate – residential
|
411
|
411
|
69
|
416
|
8
|
|||||||||||||||
Consumer
|
1,828
|
1,828
|
300
|
1,829
|
3
|
|||||||||||||||
$
|
16,541
|
$
|
16,541
|
$
|
772
|
$
|
16,521
|
$
|
454
|
At or for the year ended December 31, 2011
|
||||||||||||||||||||
Recorded
Investment,
Net of
Charge-offs
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
3,423
|
$
|
3,423
|
$
|
-
|
$
|
3,436
|
$
|
139
|
||||||||||
Real estate – construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Real estate – commercial
|
3,510
|
3,510
|
-
|
3,529
|
160
|
|||||||||||||||
Real estate – residential
|
225
|
225
|
-
|
225
|
4
|
|||||||||||||||
Consumer
|
251
|
251
|
-
|
251
|
8
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
2,914
|
$
|
3,161
|
$
|
928
|
$
|
2,876
|
$
|
55
|
||||||||||
Real estate – construction
|
292
|
292
|
63
|
414
|
20
|
|||||||||||||||
Real estate – commercial
|
4,228
|
4,228
|
188
|
4,265
|
244
|
|||||||||||||||
Real estate – residential
|
263
|
263
|
15
|
263
|
5
|
|||||||||||||||
Consumer
|
1,938
|
1,938
|
254
|
1,938
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
6,337
|
$
|
6,584
|
$
|
928
|
$
|
6,312
|
$
|
194
|
||||||||||
Real estate – construction
|
292
|
292
|
63
|
414
|
20
|
|||||||||||||||
Real estate – commercial
|
7,738
|
7,738
|
188
|
7,794
|
404
|
|||||||||||||||
Real estate – residential
|
488
|
488
|
15
|
488
|
9
|
|||||||||||||||
Consumer
|
2,189
|
2,189
|
254
|
2,189
|
8
|
|||||||||||||||
$
|
17,044
|
$
|
17,291
|
$
|
1,448
|
$
|
17,197
|
$
|
635
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
September 30, 2012
|
(In Thousands)
|
|||||||||||||||||||
Commercial and industrial
|
$
|
114,086
|
$
|
7,264
|
$
|
13,040
|
$
|
-
|
$
|
134,390
|
||||||||||
Real estate – construction
|
68,656
|
706
|
3,516
|
-
|
72,878
|
|||||||||||||||
Real estate – commercial
|
267,763
|
4,685
|
12,130
|
-
|
284,578
|
|||||||||||||||
Real estate – residential
|
18,425
|
-
|
369
|
-
|
18,794
|
|||||||||||||||
Consumer
|
42,558
|
141
|
2,287
|
-
|
44,986
|
|||||||||||||||
Total:
|
$
|
511,488
|
$
|
12,796
|
$
|
31,342
|
$
|
-
|
$
|
555,626
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
December 31, 2011
|
(In Thousands)
|
|||||||||||||||||||
Commercial and industrial
|
$
|
119,531
|
$
|
4,683
|
$
|
12,655
|
$
|
-
|
$
|
136,869
|
||||||||||
Real estate – construction
|
50,346
|
-
|
834
|
-
|
51,180
|
|||||||||||||||
Real estate – commercial
|
255,877
|
4,300
|
10,511
|
-
|
270,688
|
|||||||||||||||
Real estate – residential
|
18,938
|
-
|
263
|
-
|
19,201
|
|||||||||||||||
Consumer
|
49,973
|
144
|
2,736
|
-
|
52,853
|
|||||||||||||||
Total:
|
$
|
494,665
|
$
|
9,127
|
$
|
26,999
|
$
|
-
|
$
|
530,791
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||||||||||
Balance
|
Balance
Related to
Loans
Individually
Evaluated
for
Impairment
|
Balance
Related to
Loans
Collectively
Evaluated
for
Impairment
|
Balance
|
Balance
Individually
Evaluated for
Impairment
|
Balance
Collectively
Evaluated for
Impairment
|
|||||||||||||||||||
September 30, 2012
|
(In Thousands)
|
|||||||||||||||||||||||
Commercial and industrial
|
$
|
1,899
|
$
|
361
|
$
|
1,538
|
$
|
134,390
|
$
|
8,245
|
$
|
126,145
|
||||||||||||
Real estate – construction
|
1,794
|
-
|
1,794
|
72,878
|
-
|
72,878
|
||||||||||||||||||
Real estate – commercial
|
2,539
|
42
|
2,497
|
284,578
|
6,057
|
278,521
|
||||||||||||||||||
Real estate – residential
|
213
|
69
|
144
|
18,794
|
411
|
18,383
|
||||||||||||||||||
Consumer
|
974
|
300
|
674
|
44,986
|
1,828
|
43,158
|
||||||||||||||||||
Unallocated
|
67
|
-
|
67
|
-
|
-
|
-
|
||||||||||||||||||
Total:
|
$
|
7,486
|
$
|
772
|
$
|
6,714
|
$
|
555,626
|
$
|
16,541
|
$
|
539,085
|
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||||||||||
Balance
|
Balance
Related to
Loans
Individually
Evaluated
for
Impairment
|
Balance
Related to
Loans
Collectively
Evaluated
for
Impairment
|
Balance
|
Balance
Individually
Evaluated for
Impairment
|
Balance
Collectively
Evaluated for
Impairment
|
|||||||||||||||||||
December 31, 2011
|
(In Thousands)
|
|||||||||||||||||||||||
Commercial and industrial
|
$
|
2,448
|
$
|
928
|
$
|
1,520
|
$
|
136,869
|
$
|
6,337
|
$
|
130,532
|
||||||||||||
Real estate – construction
|
1,222
|
63
|
1,159
|
51,180
|
292
|
50,888
|
||||||||||||||||||
Real estate – commercial
|
2,412
|
188
|
2,224
|
270,688
|
7,738
|
262,950
|
||||||||||||||||||
Real estate – residential
|
256
|
15
|
241
|
19,201
|
488
|
18,713
|
||||||||||||||||||
Consumer
|
880
|
254
|
626
|
52,853
|
2,189
|
50,664
|
||||||||||||||||||
Unallocated
|
92
|
-
|
92
|
-
|
-
|
-
|
||||||||||||||||||
Total:
|
$
|
7,310
|
$
|
1,448
|
$
|
5,862
|
$
|
530,791
|
$
|
17,044
|
$
|
513,747
|
Allowance for Loan Losses
|
Commercial
and
Industrial
|
Real Estate -
Commercial
|
Real Estate -
Construction
|
Real Estate -
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance,
July 1, 2012
|
$
|
1,898
|
$
|
2,391
|
$
|
1,672
|
$
|
199
|
$
|
994
|
$
|
104
|
$
|
7,258
|
||||||||||||||
Charge-offs
|
(79
|
)
|
-
|
-
|
-
|
(50
|
)
|
-
|
(129
|
)
|
||||||||||||||||||
Recoveries
|
3
|
-
|
24
|
-
|
-
|
-
|
27
|
|||||||||||||||||||||
Provision
|
77
|
148
|
98
|
14
|
30
|
(37
|
)
|
330
|
||||||||||||||||||||
Ending balance,
September 30, 2012
|
$
|
1,899
|
$
|
2,539
|
$
|
1,794
|
$
|
213
|
$
|
974
|
$
|
67
|
$
|
7,486
|
Allowance for Loan Losses
|
Commercial
and
Industrial
|
Real Estate -
Commercial
|
Real Estate -
Construction
|
Real Estate -
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance,
January 1, 2012
|
$
|
2,448
|
$
|
2,412
|
$
|
1,222
|
$
|
256
|
$
|
880
|
$
|
92
|
$
|
7,310
|
||||||||||||||
Charge-offs
|
(708
|
)
|
-
|
(60
|
)
|
-
|
(76
|
)
|
-
|
(844
|
)
|
|||||||||||||||||
Recoveries
|
8
|
-
|
61
|
-
|
1
|
-
|
70
|
|||||||||||||||||||||
Provision
|
151
|
127
|
571
|
(43
|
)
|
169
|
(25
|
)
|
950
|
|||||||||||||||||||
Ending balance,
September 30, 2012
|
$
|
1,899
|
$
|
2,539
|
$
|
1,794
|
$
|
213
|
$
|
974
|
$
|
67
|
$
|
7,486
|
Allowance for Loan Losses
|
Commercial
and
Industrial
|
Real Estate -
Commercial
|
Real Estate -
Construction
|
Real Estate -
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance,
July 1, 2011
|
$
|
2,332
|
$
|
2,408
|
$
|
787
|
$
|
265
|
$
|
930
|
$
|
80
|
$
|
6,802
|
||||||||||||||
Charge-offs
|
(247
|
)
|
-
|
-
|
-
|
(300
|
)
|
-
|
(547
|
)
|
||||||||||||||||||
Recoveries
|
5
|
-
|
-
|
-
|
3
|
-
|
8
|
|||||||||||||||||||||
Provision
|
359
|
(97
|
)
|
129
|
29
|
312
|
(2
|
)
|
730
|
|||||||||||||||||||
Ending balance,
September 30, 2011
|
$
|
2,449
|
$
|
2,311
|
$
|
916
|
$
|
294
|
$
|
945
|
$
|
78
|
$
|
6,993
|
Allowance for Loan Losses
|
Commercial
and
Industrial
|
Real Estate -
Commercial
|
Real Estate -
Construction
|
Real Estate -
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance,
January 1, 2011
|
$
|
2,081
|
$
|
2,193
|
$
|
895
|
$
|
276
|
$
|
793
|
$
|
8
|
$
|
6,246
|
||||||||||||||
Charge-offs
|
(482
|
)
|
-
|
(82
|
)
|
-
|
(588
|
)
|
-
|
(1,152
|
)
|
|||||||||||||||||
Recoveries
|
17
|
-
|
-
|
-
|
27
|
-
|
44
|
|||||||||||||||||||||
Provision
|
833
|
118
|
103
|
18
|
713
|
70
|
1,855
|
|||||||||||||||||||||
Ending balance,
September 30, 2011
|
$
|
2,449
|
$
|
2,311
|
$
|
916
|
$
|
294
|
$
|
945
|
$
|
78
|
$
|
6,993
|
|
·
|
The Company granted to directors non-qualified stock options to purchase an aggregate of 61,800 shares of Company common stock. These options are scheduled to vest 20% per year over five years beginning December 12, 2012. These options were granted with an exercise price of $5.19 per share based upon the $4.69 trading price of Company’s common stock on the grant date.
|
|
·
|
The Company granted to employees incentive stock options to purchase an aggregate of 71,379 shares of Company common stock. These options are scheduled to vest 20% per year over five years beginning December 12, 2012. The options were granted with an exercise price of $5.19 per share based upon the $4.69 trading price of Company’s common stock on the grant date.
|
Number of
Shares
|
Weighted
Average
Price
|
Weighted
Average
Remaining
Life
|
Aggregate
Intrinsic
Value
|
||||||||||
Options outstanding, December 31, 2011
|
917,581
|
$
|
6.82
|
||||||||||
Options granted
|
6,000
|
5.66
|
|||||||||||
Options exercised
|
(37,130
|
)
|
3.34
|
||||||||||
Options forfeited
|
(4,845
|
)
|
4.02
|
||||||||||
Options outstanding, September 30, 2012
|
881,606
|
$
|
6.98
|
4.9 years
|
$
|
1,081,392
|
|||||||
Options exercisable, September 30, 2012
|
585,614
|
$
|
8.35
|
3.4 years
|
$
|
602,903
|
|||||||
Option price range at September 30, 2012
|
$
|
3.01 to $14.17
|
Dividend yield
|
0.00
|
%
|
||
Expected volatility
|
29.97
|
%
|
||
Risk-free interest rate
|
1.18
|
%
|
||
Forfeiture rate
|
0.00
|
%
|
||
Expected life
|
7.5 years
|
|||
Weighted average fair value
of options granted
|
$
|
1.94
|
Dividend yield
|
0.00
|
%
|
||
Expected volatility
|
30.82
|
%
|
||
Risk-free interest rate
|
1.40
|
%
|
||
Forfeiture rate
|
0.00
|
%
|
||
Expected life
|
7.5 years
|
|||
Weighted average fair value
of options granted
|
$
|
2.09
|
Number of Shares
|
Weighted
Average
Price
|
|||||||
Unvested at December 31, 2011
|
22,042
|
$
|
3.93
|
|||||
Forfeited
|
(4,133
|
)
|
3.93
|
|||||
Unvested at September 30, 2012
|
17,909
|
$
|
3.93
|
Amount
|
Rate
|
Original
Term
|
Maturity
|
||||
(dollars in thousands)
|
|||||||
Convertible Note
|
$ 7,500
|
3.97%
|
10 years
|
November 2017
|
|||
Fixed Rate Note
|
1,500
|
1.67%
|
4 years
|
August 2014
|
|||
Fixed Rate Note
|
1,500
|
2.00%
|
5 years
|
August 2015
|
|||
Fixed Rate Note
|
1,500
|
2.41%
|
6 years
|
August 2016
|
|||
Fixed Rate Note
|
1,500
|
2.71%
|
7 years
|
August 2017
|
|||
$ 13,500
|
3.18%
|
|
Level 1:
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
|
|
Level 2:
|
Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.
|
|
Level 3:
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).
|
Description
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
Total
|
||||||||||||
At September 30, 2012
|
(in thousands)
|
|||||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. Government agency securities
|
$
|
-
|
$
|
1,200
|
$
|
-
|
$
|
1,200
|
||||||||
Municipal securities
|
-
|
1,321
|
-
|
1,321
|
||||||||||||
GSE: Residential mortgage-backed securities
|
-
|
21,998
|
-
|
21,998
|
||||||||||||
Collateralized residential mortgage obligations
|
-
|
17,488
|
-
|
17,488
|
||||||||||||
Corporate debt securities, primarily financial
institutions
|
-
|
3,562
|
26
|
3,588
|
||||||||||||
CRA mutual fund
|
2,424
|
-
|
-
|
2,424
|
||||||||||||
Total
|
$
|
2,424
|
$
|
45,569
|
$
|
26
|
$
|
48,019
|
||||||||
At December 31, 2011
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. Government agency securities
|
$
|
-
|
$
|
2,258
|
$
|
-
|
$
|
2,258
|
||||||||
Municipal securities
|
-
|
1,307
|
-
|
1,307
|
||||||||||||
GSE: Residential mortgage-backed securities
|
-
|
21,878
|
-
|
21,878
|
||||||||||||
Collateralized residential mortgage obligations
|
-
|
17,163
|
-
|
17,163
|
||||||||||||
Corporate debt securities, primarily financial
institutions
|
-
|
2,439
|
89
|
2,528
|
||||||||||||
CRA mutual fund
|
2,321
|
-
|
-
|
2,321
|
||||||||||||
Total
|
$
|
2,321
|
$
|
45,045
|
$
|
89
|
$
|
47,455
|
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
|
||||||||
Securities available for sale
|
||||||||
2012
|
2011
|
|||||||
(in thousands)
|
||||||||
Beginning balance, July 1,
|
$
|
36
|
$
|
74
|
||||
Total gains/(losses):
|
||||||||
Included in earnings
|
(32
|
)
|
-
|
|||||
Included in other comprehensive income
|
22
|
(5
|
)
|
|||||
Ending balance, September 30,
|
$
|
26
|
$
|
69
|
||||
Beginning balance, January 1,
|
$
|
89
|
$
|
29
|
||||
Total gains/(losses):
|
||||||||
Included in earnings
|
(80
|
)
|
-
|
|||||
Included in other comprehensive income
|
17
|
40
|
||||||
Ending balance, September 30,
|
$
|
26
|
$
|
69
|
Description
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
Total
|
||||||||||||
(in thousands)
|
||||||||||||||||
At September 30, 2012
|
||||||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
6,207
|
$
|
6,207
|
||||||||
Other real estate owned
|
-
|
-
|
3,593
|
3,593
|
||||||||||||
Property held for sale
|
-
|
-
|
1,000
|
1,000
|
||||||||||||
At December 31, 2011
|
||||||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
8,187
|
$
|
8,187
|
||||||||
Other real estate owned
|
-
|
-
|
7,765
|
7,765
|
||||||||||||
Property held for sale
|
-
|
-
|
1,000
|
1,000
|
|
·
|
Impaired loans – Impaired loans measured at fair value are those loans in which the Company has measured impairment generally based on the fair value of the loan’s collateral. This method of fair value measurement is used on all of the Company’s impaired loans. Fair value is generally determined based upon either independent third party appraisals of the properties or discounted cash flows based upon the expected proceeds. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The discount range for appraisal and liquidation expenses is 2.5% to 10.0%. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.
|
|
·
|
Other Real Estate Owned (“OREO”) – Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and carried at fair value less cost to sell. Fair value is based upon the appraised value of the collateral, adjusted by management for factors such as economic conditions and other market factors. The discount range for collateral adjustment to OREO is 2.5% to 40.0%. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. At September 30, 2012, properties totaling $3,593,000 as compared to $7,765,000 at December 31, 2011, were acquired through foreclosure and are carried at fair value less estimated selling costs based on current appraisals.
|
|
·
|
Property held for sale – This real estate property is carried in other assets as property held for sale at fair value based upon the appraised value of the property.
|
Fair Value Measurements at September 30, 2012
|
||||||||||||||||||||
(in thousands)
|
Carrying
Amount
|
Estimated
Fair
Value
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
43,451
|
$
|
43,451
|
$
|
43,451
|
$
|
-
|
$
|
-
|
||||||||||
Securities available for sale
|
48,019
|
48,019
|
2,424
|
45,569
|
26
|
|||||||||||||||
Securities held to maturity
|
15,729
|
16,010
|
-
|
16,010
|
-
|
|||||||||||||||
Restricted investments
|
3,040
|
3,040
|
-
|
-
|
3,040
|
|||||||||||||||
Loans receivable
|
547,552
|
547,713
|
-
|
-
|
547,713
|
|||||||||||||||
Accrued interest receivable
|
1,983
|
1,983
|
1,983
|
-
|
-
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
577,671
|
579,368
|
473,763
|
105,605
|
-
|
|||||||||||||||
Securities sold under agreements to repurchase
|
18,866
|
18,866
|
18,866
|
-
|
-
|
|||||||||||||||
Long-term debt
|
13,500
|
14,942
|
-
|
14,942
|
-
|
|||||||||||||||
Accrued interest payable
|
65
|
65
|
65
|
-
|
-
|
|||||||||||||||
Off-balance sheet financial instruments:
|
||||||||||||||||||||
Commitments to extend credit and outstanding
letters of credit
|
-
|
-
|
-
|
-
|
-
|
December 31, 2011
|
||||||||
Carrying
Amount
|
Estimated Fair
Value
|
|||||||
(in thousands)
|
||||||||
Financial assets:
|
||||||||
Cash and cash equivalents
|
$
|
38,022
|
$
|
38,022
|
||||
Securities available for sale
|
47,455
|
47,455
|
||||||
Securities held to maturity
|
13,105
|
13,222
|
||||||
Restricted investments
|
2,237
|
2,237
|
||||||
Loans receivable
|
522,820
|
516,174
|
||||||
Accrued interest receivable
|
1,928
|
1,928
|
||||||
Financial liabilities:
|
||||||||
Deposits
|
553,912
|
556,442
|
||||||
Securities sold under agreements to repurchase
|
16,218
|
16,218
|
||||||
Long-term debt
|
13,500
|
14,950
|
||||||
Accrued interest payable
|
107
|
107
|
||||||
Off-balance sheet financial instruments:
|
||||||||
Commitments to extend credit and outstanding
letters of credit
|
-
|
-
|
Dividend Rate Following Investment Date
|
||||||
Increase in Qualified Small Business Lending
from the Baseline
|
First 9
Quarters*
|
Quarter 10
to Year 4.5
|
After Year
4.5
|
|||
0% or less
|
5%
|
7%
|
9%
|
|||
More than 0%, but less than 2.5%
|
5%
|
5%
|
9%
|
|||
2.5% or more, but less than 5%
|
4%
|
4%
|
9%
|
|||
5% or more, but less than 7.5%
|
3%
|
3%
|
9%
|
|||
7.5% or more, but less than 10%
|
2%
|
2%
|
9%
|
|||
10% or more
|
1%
|
1%
|
9%
|
|||
* For the first nine quarters, the dividend rate will be adjusted quarterly.
|
As of and for the
Three months ended September 30,
|
As of and for the
Nine months ended September 30,
|
|||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||
Return on average assets
|
0.71% | 0.65% | 0.69% | 0.62% | ||||||||||||||||
Return on average tangible assets (1)
|
0.73% | 0.67% | 0.71% | 0.64% | ||||||||||||||||
Return on average shareholders' equity
|
5.47% | 5.23% | 5.35% | 5.03% | ||||||||||||||||
Return on average tangible shareholders' equity (1)
|
6.87% | 6.72% | 6.75% | 6.50% | ||||||||||||||||
Net interest margin
|
4.09% | 4.16% | 4.12% | 4.24% | ||||||||||||||||
Average equity to average assets
|
12.93% | 12.49% | 12.90% | 12.43% | ||||||||||||||||
Average tangible equity to average tangible assets (1)
|
10.57% | 10.02% | 10.50% | 9.89% |
(1)
|
The following table provides the reconciliation of non-GAAP financial measures for the dates indicated:
|
As of and for the
Three months ended September 30,
|
As of and for the
Nine months ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income available to common shareholders
|
$ | 1,203 | $ | 703 | $ | 3,257 | $ | 2,418 | ||||||||
Effect of U.S. Treasury preferred stock refund
|
(69 | ) | - | (69 | ) | - | ||||||||||
Effect of accelerated portion of discount accretion
|
- | 301 | - | 301 | ||||||||||||
Net income available to common shareholders
|
||||||||||||||||
excluding U.S. Treasury preferred stock
|
||||||||||||||||
refund and accelerated discount accretion
|
$ | 1,134 | $ | 1,004 | $ | 3,188 | $ | 2,719 | ||||||||
Diluted earnings per common share
|
$ | 0.15 | $ | 0.09 | $ | 0.40 | $ | 0.30 | ||||||||
Effect of U.S. Treasury preferred stock refund
|
(0.01 | ) | - | (0.01 | ) | - | ||||||||||
Effect of accelerated portion of discount accretion
|
- | 0.04 | - | 0.04 | ||||||||||||
Diluted earnings per common share excluding
|
||||||||||||||||
U.S. Treasury preferred stock refund and
|
||||||||||||||||
and accelerated discount accretion
|
$ | 0.14 | $ | 0.13 | $ | 0.39 | $ | 0.34 | ||||||||
Book value per common share
|
$ | 9.89 | $ | 9.39 | $ | 9.89 | $ | 9.39 | ||||||||
Effect of intangible assets
|
(2.31 | ) | (2.35 | ) | (2.31 | ) | (2.35 | ) | ||||||||
Tangible book value per common share
|
$ | 7.58 | $ | 7.04 | $ | 7.58 | $ | 7.04 | ||||||||
Return on average assets
|
0.71% | 0.65% | 0.69% | 0.62% | ||||||||||||
Effect of intangible assets
|
0.02% | 0.02% | 0.02% | 0.02% | ||||||||||||
Return on average tangible assets
|
0.73% | 0.67% | 0.71% | 0.64% | ||||||||||||
Return on average equity
|
5.47% | 5.23% | 5.35% | 5.03% | ||||||||||||
Effect of average intangible assets
|
1.40% | 1.49% | 1.40% | 1.47% | ||||||||||||
Return on average tangible equity
|
6.87% | 6.72% | 6.75% | 6.50% | ||||||||||||
Average equity to average assets
|
12.93% | 12.49% | 12.90% | 12.43% | ||||||||||||
Effect of intangible assets
|
(2.36% | ) | (2.47% | ) | (2.40% | ) | (2.54% | ) | ||||||||
Average tangible equity to average tangible assets
|
10.57% | 10.02% | 10.50% | 9.89% |
Three Months Ended
September 30, 2012
|
Three Months Ended
September 30, 2011
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Rate
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest Earning Assets:
|
||||||||||||||||||||||||
Interest bearing deposits in banks
|
$
|
23,705
|
$
|
15
|
0.25
|
%
|
$
|
48,335
|
$
|
31
|
0.25
|
%
|
||||||||||||
Federal funds sold
|
-
|
-
|
0.00
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
Investment securities
|
68,261
|
391
|
2.29
|
%
|
54,713
|
394
|
2.88
|
%
|
||||||||||||||||
Loans, net of unearned fees (1) (2)
|
550,976
|
7,333
|
5.29
|
%
|
518,214
|
7,394
|
5.66
|
%
|
||||||||||||||||
Total Interest Earning Assets
|
642,942
|
7,739
|
4.79
|
%
|
621,262
|
7,819
|
4.99
|
%
|
||||||||||||||||
Non-Interest Earning Assets:
|
||||||||||||||||||||||||
Allowance for loan losses
|
(7,364
|
)
|
(6,879
|
)
|
||||||||||||||||||||
All other assets
|
62,684
|
61,550
|
||||||||||||||||||||||
Total Assets
|
$
|
698,262
|
$
|
675,933
|
||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
NOW deposits
|
$
|
64,872
|
66
|
0.40
|
%
|
$
|
60,281
|
66
|
0.43
|
%
|
||||||||||||||
Savings deposits
|
220,761
|
398
|
0.72
|
%
|
199,846
|
414
|
0.82
|
%
|
||||||||||||||||
Money market deposits
|
83,457
|
75
|
0.36
|
%
|
86,384
|
115
|
0.53
|
%
|
||||||||||||||||
Time deposits
|
105,268
|
452
|
1.71
|
%
|
119,137
|
570
|
1.90
|
%
|
||||||||||||||||
Repurchase agreements
|
17,940
|
26
|
0.58
|
%
|
16,852
|
28
|
0.66
|
%
|
||||||||||||||||
FHLB-term borrowings
|
13,500
|
109
|
3.20
|
%
|
13,500
|
109
|
3.20
|
%
|
||||||||||||||||
Total Interest Bearing Liabilities
|
505,798
|
1,126
|
0.89
|
%
|
496,000
|
1,302
|
1.04
|
%
|
||||||||||||||||
Non-Interest Bearing Liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
97,368
|
90,873
|
||||||||||||||||||||||
Other liabilities
|
4,778
|
4,618
|
||||||||||||||||||||||
Total Non-Interest Bearing Liabilities
|
102,146
|
95,491
|
||||||||||||||||||||||
Shareholders' Equity
|
90,318
|
84,442
|
||||||||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
698,262
|
$
|
675,933
|
||||||||||||||||||||
NET INTEREST INCOME
|
$
|
6,613
|
$
|
6,517
|
||||||||||||||||||||
NET INTEREST SPREAD (3)
|
3.90
|
%
|
3.95
|
%
|
||||||||||||||||||||
NET INTEREST MARGIN(4)
|
4.09
|
%
|
4.16
|
%
|
(1)
|
Included in interest income on loans are loan fees.
|
(2)
|
Includes non-performing loans.
|
(3)
|
The interest rate spread is the difference between the weighted average yield on average interest earning assets and the weighted average cost of average interest bearing liabilities.
|
(4)
|
The interest rate margin is calculated by dividing annualized net interest income by average interest earning assets.
|
Nine Months Ended
September 30, 2012
|
Nine Months Ended
September 30, 2011
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Rate
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest Earning Assets:
|
||||||||||||||||||||||||
Interest bearing deposits in banks
|
$
|
29,997
|
$
|
57
|
0.25
|
%
|
$
|
37,140
|
$
|
70
|
0.25
|
%
|
||||||||||||
Federal funds sold
|
-
|
-
|
0.00
|
%
|
4,205
|
7
|
0.22
|
%
|
||||||||||||||||
Investment securities
|
64,277
|
1,175
|
2.44
|
%
|
50,539
|
1,161
|
3.06
|
%
|
||||||||||||||||
Loans, net of unearned fees (1) (2)
|
540,085
|
21,844
|
5.40
|
%
|
518,413
|
22,069
|
5.69
|
%
|
||||||||||||||||
Total Interest Earning Assets
|
634,359
|
23,076
|
4.86
|
%
|
610,297
|
23,307
|
5.11
|
%
|
||||||||||||||||
Non-Interest Earning Assets:
|
||||||||||||||||||||||||
Allowance for loan losses
|
(7,250
|
)
|
(6,550
|
)
|
||||||||||||||||||||
All other assets
|
63,450
|
59,206
|
||||||||||||||||||||||
Total Assets
|
$
|
690,559
|
$
|
662,953
|
||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
NOW deposits
|
$
|
64,193
|
200
|
0.42
|
%
|
$
|
56,477
|
191
|
0.45
|
%
|
||||||||||||||
Savings deposits
|
216,085
|
1,217
|
0.75
|
%
|
198,593
|
1,309
|
0.88
|
%
|
||||||||||||||||
Money market deposits
|
83,276
|
252
|
0.40
|
%
|
88,733
|
397
|
0.60
|
%
|
||||||||||||||||
Time deposits
|
107,625
|
1,430
|
1.77
|
%
|
116,476
|
1,650
|
1.89
|
%
|
||||||||||||||||
Repurchase agreements
|
18,257
|
81
|
0.59
|
%
|
16,038
|
91
|
0.76
|
%
|
||||||||||||||||
FHLB-term borrowings
|
13,500
|
325
|
3.22
|
%
|
13,500
|
324
|
3.21
|
%
|
||||||||||||||||
Total Interest Bearing Liabilities
|
502,936
|
3,505
|
0.93
|
%
|
489,817
|
3,962
|
1.08
|
%
|
||||||||||||||||
Non-Interest Bearing Liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
94,134
|
86,292
|
||||||||||||||||||||||
Other liabilities
|
4,422
|
4,451
|
||||||||||||||||||||||
Total Non-Interest Bearing Liabilities
|
98,556
|
90,743
|
||||||||||||||||||||||
Shareholders' Equity
|
89,067
|
82,393
|
||||||||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
690,559
|
$
|
662,953
|
||||||||||||||||||||
NET INTEREST INCOME
|
$
|
19,571
|
$
|
19,345
|
||||||||||||||||||||
NET INTEREST SPREAD (3)
|
3.93
|
%
|
4.03
|
%
|
||||||||||||||||||||
NET INTEREST MARGIN(4)
|
4.12
|
%
|
4.24
|
%
|
(1)
|
Included in interest income on loans are loan fees.
|
(2)
|
Includes non-performing loans.
|
(3)
|
The interest rate spread is the difference between the weighted average yield on average interest earning assets and the weighted average cost of average interest bearing liabilities.
|
(4)
|
The interest rate margin is calculated by dividing annualized net interest income by average interest earning assets.
|
Three Months Ended September 30, 2012
|
Nine Months Ended September 30, 2012
|
|||||||||||||||||||||||
Compared to Three Months Ended
|
Compared to Nine Months Ended
|
|||||||||||||||||||||||
September 30, 2011
|
September 30, 2011
|
|||||||||||||||||||||||
Increase (decrease) due to change in
|
||||||||||||||||||||||||
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||||||||||
Interest Earned On:
|
||||||||||||||||||||||||
Interest bearing deposits in banks
|
$
|
(16
|
)
|
$
|
-
|
$
|
(16
|
)
|
$
|
(13
|
)
|
$
|
-
|
$
|
(13
|
)
|
||||||||
Federal funds sold
|
-
|
-
|
-
|
(7
|
)
|
-
|
(7
|
)
|
||||||||||||||||
Investment securities
|
98
|
(101
|
)
|
(3
|
)
|
210
|
(196
|
)
|
14
|
|||||||||||||||
Loans
|
467
|
(528
|
)
|
(61
|
)
|
926
|
(1,151
|
)
|
(225
|
)
|
||||||||||||||
Total Interest Income
|
549
|
(629
|
)
|
(80
|
)
|
1,116
|
(1,347
|
)
|
(231
|
)
|
||||||||||||||
Interest Paid On:
|
||||||||||||||||||||||||
NOW deposits
|
5
|
(5
|
)
|
-
|
26
|
(17
|
)
|
9
|
||||||||||||||||
Savings deposits
|
43
|
(59
|
)
|
(16
|
)
|
116
|
(208
|
)
|
(92
|
)
|
||||||||||||||
Money market deposits
|
(4
|
)
|
(36
|
)
|
(40
|
)
|
(25
|
)
|
(120
|
)
|
(145
|
)
|
||||||||||||
Time deposits
|
(66
|
)
|
(52
|
)
|
(118
|
)
|
(126
|
)
|
(94
|
)
|
(220
|
)
|
||||||||||||
Repurchase agreements
|
2
|
(4
|
)
|
(2
|
)
|
13
|
(23
|
)
|
(10
|
)
|
||||||||||||||
Long-term debt
|
-
|
-
|
-
|
-
|
1
|
1
|
||||||||||||||||||
Total Interest Expense
|
(20
|
)
|
(156
|
)
|
(176
|
)
|
4
|
(461
|
)
|
(457
|
)
|
|||||||||||||
Net Interest Income
|
$
|
569
|
$
|
(473
|
)
|
$
|
96
|
$
|
1,112
|
$
|
(886
|
)
|
$
|
226
|
September 30, 2012
|
December 31, 2011
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(in thousands, except for percentages)
|
||||||||||||||||
Commercial and industrial
|
$
|
134,390
|
24.2%
|
|
$
|
136,869
|
25.8%
|
|
||||||||
Real estate – construction
|
72,878
|
13.1%
|
51,180
|
9.6%
|
|
|||||||||||
Real estate – commercial
|
284,578
|
51.3%
|
270,688
|
51.1%
|
||||||||||||
Real estate – residential
|
18,794
|
3.4%
|
|
19,201
|
3.6%
|
|
||||||||||
Consumer
|
44,986
|
8.1%
|
52,853
|
10.0%
|
||||||||||||
Unearned fees
|
(588
|
)
|
(0.1%
|
) |
(661
|
)
|
(0.1%
|
) | ||||||||
Total loans
|
$
|
555,038
|
100.0%
|
$
|
530,130
|
100.0%
|
|
(dollars in thousands)
|
September 30, 2012
|
December 31, 2011
|
||||||
Non-Performing Assets:
|
||||||||
Non-Accrual Loans:
|
||||||||
Commercial and industrial
|
$
|
1,647
|
$
|
2,349
|
||||
Real estate-construction
|
-
|
292
|
||||||
Real estate-commercial
|
950
|
145
|
||||||
Real estate – residential
|
263
|
263
|
||||||
Consumer
|
1,829
|
2,191
|
||||||
Total Non-Accrual Loans
|
4,689
|
5,240
|
||||||
Loans 90 days or more past due and still accruing
|
3,744
|
-
|
||||||
Total Non-Performing Loans
|
8,433
|
5,240
|
||||||
Other Real Estate Owned
|
3,593
|
7,765
|
||||||
Total Non-Performing Assets
|
$
|
12,026
|
$
|
13,005
|
||||
Ratios:
|
||||||||
Non-Performing loans to total loans
|
1.52
|
%
|
0.99
|
%
|
||||
Non-Performing assets to total assets
|
1.71
|
%
|
1.93
|
%
|
||||
Troubled Debt Restructured Loans
|
$
|
9,852
|
$
|
7,579
|
September 30,
|
December 31,
|
|||||||||||
2012
|
2011
|
2011
|
||||||||||
(in thousands, except percentages)
|
||||||||||||
Balance at beginning of year
|
$
|
7,310
|
$
|
6,246
|
$
|
6,246
|
||||||
Provision charged to expense
|
950
|
1,855
|
2,205
|
|||||||||
Loans charged off, net
|
(774
|
)
|
(1,108
|
)
|
(1,141
|
)
|
||||||
Balance of allowance at end of period
|
$
|
7,486
|
$
|
6,993
|
$
|
7,310
|
||||||
Ratio of net charge-offs to average
loans outstanding (annualized)
|
0.19
|
%
|
0.29
|
%
|
0.22
|
%
|
||||||
Balance of allowance as a percent of
loans at period-end
|
1.35
|
%
|
1.35
|
%
|
1.38
|
%
|
||||||
Ratio of allowance at period-end to
non-performing loans
|
88.77
|
%
|
110.20.
|
%
|
139.50
|
%
|
Amount
|
Rate
|
Original
Term
|
Maturity
|
||||
(dollars in thousands)
|
|||||||
Convertible Note
|
$ 7,500
|
3.97%
|
10 years
|
November 2017
|
|||
Fixed Rate Note
|
1,500
|
1.67%
|
4 years
|
August 2014
|
|||
Fixed Rate Note
|
1,500
|
2.00%
|
5 years
|
August 2015
|
|||
Fixed Rate Note
|
1,500
|
2.41%
|
6 years
|
August 2016
|
|||
Fixed Rate Note
|
1,500
|
2.71%
|
7 years
|
August 2017
|
|||
$ 13,500
|
3.18%
|
September 30,
2012
|
December 31,
2011
|
|||||||
(dollars in thousands)
|
||||||||
Home equity lines of credit
|
$
|
28,266
|
$
|
27,524
|
||||
Commitments to fund commercial real estate and construction loans
|
64,858
|
72,409
|
||||||
Commitments to fund commercial and industrial loans
|
49,504
|
56,272
|
||||||
Commercial and financial letters of credit
|
3,860
|
5,066
|
||||||
$
|
146,488
|
$
|
161,271
|
Tier I
Capital to
Average Assets Ratio
(Leverage Ratio)
|
Tier I
Capital to
Risk Weighted
Assets Ratio
|
Total Capital to
Risk Weighted
Assets Ratio
|
||||||||||||||||||||||
September 30,
2012
|
December 31,
2011
|
September 30,
2012
|
December 31,
2011
|
September 30,
2012
|
December 31,
2011
|
|||||||||||||||||||
Community Partners
|
10.59%
|
|
10.39%
|
12.03%
|
|
12.01%
|
|
13.28%
|
|
13.26%
|
|
|||||||||||||
Two River
|
10.57%
|
10.38%
|
|
12.01%
|
|
12.00%
|
|
13.26%
|
|
13.25%
|
|
|||||||||||||
“Adequately capitalized” institution
(under Federal regulations)
|
4.00%
|
4.00%
|
|
4.00%
|
|
4.00%
|
|
8.00%
|
|
8.00%
|
|
|||||||||||||
“Well capitalized” institution
(under Federal regulations)
|
5.00%
|
|
5.00%
|
|
6.00%
|
|
6.00%
|
|
10.00%
|
|
10.00%
|
|
3.1
|
Certificate of Incorporation, as amended, of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-3 (File No. 333-182855) filed with the SEC on July 26, 2012)
|
||
3.2
|
Bylaws, as amended, of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q (File No. 000-51889) for the quarter ended September 30, 2011)
|
||
10.1
|
*
|
Two River Community Bank 2012 Incentive Bonus Program
|
|
31.1
|
*
|
Certification of principal executive officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
31.2
|
*
|
Certification of principal financial officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
32
|
*
|
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by the principal executive officer of the Company and the principal financial officer of the Company
|
|
101.INS**
|
XBRL Instance Document
|
||
101.SCH**
|
XBRL Taxonomy Extension Schema
|
||
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase
|
||
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase
|
||
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase
|
||
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase
|
||
* Filed herewith.
|
|||
** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.
|
COMMUNITY PARTNERS BANCORP
|
|||
Date: November 14, 2012
|
By:
|
/s/ WILLIAM D. MOSS
|
|
William D. Moss
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
Date: November 14, 2012
|
By:
|
/s/ A. RICHARD ABRAHAMIAN
|
|
A. Richard Abrahamian
|
|||
Executive Vice President and Chief Financial Officer
|
|||
(Principal Financial and Accounting Officer)
|