Federal
|
59-3764686
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
505
Haines Avenue
Waycross,
Georgia
|
31501
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant's
telephone number, including area code: (800)
342-2824
|
Title
of class
|
Name
of each exchange on which registered
|
Common
Stock, $0.01 par value
|
The
NASDAQ Stock Market, LLC
|
ATLANTIC
COAST FEDERAL CORPORATION
|
||
ANNUAL
REPORT ON FORM 10-K/A
|
||
Table
of Contents
|
Page
Number
|
||||
EXPLANATORY
NOTE
|
1 | |||
PART
I
|
||||
Item
1.
|
Business
|
3
|
||
General
|
5
|
|||
Market
|
5
|
|||
Lending
Activities
|
5
|
|||
Investment
Activities
|
21
|
|||
Sources
of Funds
|
23
|
|||
How
We Are Regulated
|
26
|
|||
Item
1A.
|
Risk
Factors
|
35
|
||
Item
1B.
|
Unresolved
Staff Comments
|
41
|
||
Item
2.
|
Properties
|
41
|
||
Item
3.
|
Legal
Proceedings
|
42
|
||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
42
|
||
PART
II
|
||||
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
43
|
||
Item
6.
|
Selected
Financial Data
|
46
|
||
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
48
|
||
General
|
48
|
|||
Critical
Accounting Policies
|
49
|
|||
Business
Strategy
|
51
|
|||
Financial
Condition
|
52
|
|||
Results
of Operations
|
57
|
|||
Average
Balances, Net Interest Income, Yields Earned, and Rates
Paid
|
58
|
|||
Rate/Volume
Analysis
|
60
|
|||
Liquidity
|
70
|
|||
Contractual
Obligations and Commitments
|
71
|
|||
Capital
Resources
|
72
|
|||
Inflation
|
73
|
|||
Future
Accounting Pronouncements
|
73
|
|||
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
74
|
||
Item
8.
|
Financial
Statements and Supplementary Data
|
78
|
||
Report
of Independent Registered Public Accountant
|
78
|
|||
Financial
Statements
|
79
|
|||
Notes
to Financial Statements
|
86
|
|||
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
123
|
||
Item
9A.
|
Controls
and Procedures
|
123
|
||
Item
9B.
|
Other
Information
|
123
|
ATLANTIC
COAST FEDERAL CORPORATION
|
||
ANNUAL
REPORT ON FORM 10-K/A
|
||
Table
of Contents, continued
|
PART
III
|
||||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
124
|
||
Item
11.
|
Executive
Compensation
|
124
|
||
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
124
|
||
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
124
|
||
Item
14.
|
Principal
Accountant Fees and Services
|
124
|
||
PART
IV
|
||||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
124
|
||
Form
10-K
|
Signature
Page
|
126
|
||
Exhibit
21.
|
Subsidiaries
of Registrant
|
127 | ||
Exhibit
23.1
|
Consent
of Crowe Chizek and Company LLC
|
128 | ||
Exhibit
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
129 | ||
Exhibit
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
130 | ||
Exhibit
32.
|
Certification
of Chief Executive Officer and Chief Financial Officer of Atlantic
Coast
Federal Corporation pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002
|
131 |
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
||||||
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
||||
|
|
Total
|
|
2006
|
|
2005
|
|
2004
|
|
||||
|
|
(Dollars
in Thousands)
|
|||||||||||
Total
interest expense
|
$
|
(94
|
)
|
$
|
197
|
$
|
(19
|
)
|
$
|
(272
|
)
|
||
Noninterest
income
|
573
|
163
|
524
|
(114
|
)
|
||||||||
Income
tax expense
|
256
|
(11
|
)
|
207
|
60
|
||||||||
Net
income
|
$
|
411
|
$
|
(23
|
)
|
$
|
336
|
$
|
98
|
||||
|
|||||||||||||
Earnings
per common share:
|
|||||||||||||
Basic
|
$
|
0.03
|
$
|
-
|
$
|
0.02
|
$
|
0.01
|
|
||||
Diluted
|
$
|
0.03
|
$
|
-
|
$
|
0.02
|
$
|
0.01
|
|
|
|
For
the Quarter Ended
|
|
|||||||||||||
|
|
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|||||
|
|
Total
|
|
2006
|
|
2006
|
|
2006
|
|
2006
|
|
|||||
|
|
(Dollars
in Thousands)
|
||||||||||||||
Total
interest expense
|
$
|
197
|
$
|
42
|
$
|
55
|
$
|
49
|
$
|
51
|
||||||
Noninterest
income
|
163
|
321
|
(70
|
)
|
(131
|
)
|
43
|
|||||||||
Income
tax expense
|
(11
|
)
|
95
|
(42
|
)
|
(61
|
)
|
(3
|
)
|
|||||||
Net
income
|
$
|
(23
|
)
|
$
|
184
|
$
|
(83
|
)
|
$
|
(119
|
)
|
$
|
(5
|
)
|
||
|
||||||||||||||||
Earnings
per common share:
|
||||||||||||||||
Basic
|
$
|
-
|
$
|
0.01
|
$
|
-
|
$
|
(0.01
|
)
|
$
|
-
|
|||||
Diluted
|
$
|
-
|
$
|
0.01
|
$
|
-
|
$
|
(0.01
|
)
|
$
|
-
|
For
the Quarter Ended
|
||||||||||||||||
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|||||||
|
|
Total
|
|
2005
|
|
2005
|
|
2005
|
|
2005
|
||||||
(Dollars
in Thousands)
|
||||||||||||||||
Total
interest expense
|
$
|
(19
|
)
|
$
|
(33
|
)
|
$
|
(15
|
)
|
$
|
4
|
$
|
25
|
|||
Noninterest
income
|
524
|
416
|
(347
|
)
|
323
|
132
|
||||||||||
Income
tax expense
|
207
|
171
|
(126
|
)
|
121
|
41
|
||||||||||
Net
income
|
$
|
336
|
$
|
278
|
$
|
(206
|
)
|
$
|
198
|
$
|
66
|
|||||
|
||||||||||||||||
Earnings
per common share:
|
||||||||||||||||
Basic
|
$
|
0.02
|
$
|
0.02
|
$
|
(0.01
|
)
|
$
|
0.01
|
$
|
-
|
|||||
Diluted
|
$
|
0.02
|
$
|
0.02
|
$
|
(0.01
|
)
|
$
|
0.01
|
$
|
-
|
For
the Quarter Ended
|
||||||||||||||||
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|||||||
|
|
Total
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
||||||
(Dollars
in Thousands)
|
||||||||||||||||
Total
interest expense
|
$
|
(272
|
)
|
$
|
(59
|
)
|
$
|
(87
|
)
|
$
|
(85
|
)
|
$
|
(41
|
)
|
|
Noninterest
income
|
(114
|
)
|
(520
|
)
|
714
|
(432
|
)
|
124
|
||||||||
Income
tax expense
|
60
|
(175
|
)
|
304
|
(132
|
)
|
63
|
|||||||||
Net
income
|
$
|
98
|
$
|
(286
|
)
|
$
|
497
|
$
|
(215
|
)
|
$
|
102
|
||||
|
||||||||||||||||
Earnings
per common share:
|
||||||||||||||||
Basic
|
$
|
0.01
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.01
|
||||||
Diluted
|
$
|
0.01
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.01
|
At
December 31,
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||
Real
estate loans:
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
$
|
334,000
|
52.14
|
%
|
$
|
324,681
|
55.88
|
%
|
$
|
303,544
|
58.44
|
%
|
$
|
236,959
|
53.73
|
%
|
$
|
177,295
|
46.14
|
%
|
|||||||||||
Commercial
|
60,912
|
9.51
|
%
|
59,074
|
10.16
|
%
|
57,178
|
11.01
|
%
|
56,228
|
12.75
|
%
|
36,161
|
9.41
|
%
|
||||||||||||||||
Other
(land & multifamily)
|
34,446
|
5.38
|
%
|
20,302
|
3.49
|
%
|
20,120
|
3.87
|
%
|
13,568
|
3.08
|
%
|
11,502
|
2.99
|
%
|
||||||||||||||||
Total
real estate loans
|
429,358
|
67.03
|
%
|
404,057
|
69.53
|
%
|
380,842
|
73.32
|
%
|
306,755
|
69.56
|
%
|
224,958
|
58.54
|
%
|
||||||||||||||||
Real
estate construction loans:
|
|||||||||||||||||||||||||||||||
Construction-one-
to four-family
|
32,467
|
5.07
|
%
|
24,243
|
4.17
|
%
|
14,275
|
2.75
|
%
|
11,913
|
2.70
|
%
|
7,552
|
1.97
|
%
|
||||||||||||||||
Construction-commercial
|
2,862
|
0.45
|
%
|
2,577
|
0.44
|
%
|
2,577
|
0.50
|
%
|
18,663
|
4.23
|
%
|
22,975
|
5.97
|
%
|
||||||||||||||||
Acquisition
& development
|
2,103
|
0.33
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Total
real estate construction loans
|
37,432
|
5.85
|
%
|
26,820
|
4.61
|
%
|
16,852
|
3.25
|
%
|
30,576
|
6.93
|
%
|
30,527
|
7.94
|
%
|
||||||||||||||||
Other
loans:
|
|||||||||||||||||||||||||||||||
Home
equity
|
91,062
|
14.22
|
%
|
79,016
|
13.60
|
%
|
60,077
|
11.57
|
%
|
39,217
|
8.89
|
%
|
32,645
|
8.50
|
%
|
||||||||||||||||
Consumer
|
63,630
|
9.93
|
%
|
62,846
|
10.81
|
%
|
57,893
|
11.15
|
%
|
60,925
|
13.81
|
%
|
88,071
|
22.92
|
%
|
||||||||||||||||
Commercial
|
19,044
|
2.97
|
%
|
8,430
|
1.45
|
%
|
3,711
|
0.71
|
%
|
3,553
|
0.81
|
%
|
8,065
|
2.10
|
%
|
||||||||||||||||
Total
other loans
|
173,736
|
27.12
|
%
|
150,292
|
25.86
|
%
|
121,681
|
23.43
|
%
|
103,695
|
23.51
|
%
|
128,781
|
33.52
|
%
|
||||||||||||||||
Total
loans
|
640,526
|
100.00
|
%
|
581,169
|
100.00
|
%
|
519,375
|
100.00
|
%
|
441,026
|
100.00
|
%
|
384,266
|
100.00
|
%
|
||||||||||||||||
Less:
|
|||||||||||||||||||||||||||||||
Net
deferred loan origination (fees) costs
|
3,348
|
3,164
|
1,473
|
554
|
(231
|
)
|
|||||||||||||||||||||||||
Premiums
on purchased loans
|
348
|
695
|
819
|
635
|
435
|
||||||||||||||||||||||||||
Allowance
for loan losses
|
(4,705
|
)
|
(4,587
|
)
|
(3,956
|
)
|
(6,593
|
)
|
(4,692
|
)
|
|||||||||||||||||||||
Total
loans, net
|
$
|
639,517
|
$
|
580,441
|
$
|
517,711
|
$
|
435,622
|
$
|
379,778
|
|
At
December 31,
|
||||||||||||||||||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||
FIXED-RATE
LOANS
|
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||
Real
estate loans:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
One-
to four-family
|
$
|
115,453
|
18.02
|
%
|
$
|
113,590
|
19.55
|
%
|
$
|
118,515
|
22.82
|
%
|
$
|
136,155
|
30.87
|
%
|
$
|
120,162
|
31.27
|
%
|
|||||||||||
Commercial
|
23,840
|
3.72
|
%
|
22,612
|
3.89
|
%
|
33,568
|
6.46
|
%
|
29,662
|
6.73
|
%
|
36,161
|
9.41
|
%
|
||||||||||||||||
Other
(land and multi-family)
|
15,780
|
2.46
|
%
|
8,474
|
1.46
|
%
|
5,436
|
1.05
|
%
|
13,568
|
3.08
|
%
|
11,502
|
2.99
|
%
|
||||||||||||||||
Total
real estate loans
|
155,073
|
24.20
|
%
|
144,676
|
24.90
|
%
|
157,519
|
30.33
|
%
|
179,385
|
40.68
|
%
|
167,825
|
43.67
|
%
|
||||||||||||||||
Real
estate construction loans:
|
|||||||||||||||||||||||||||||||
Construction-one-
to four-family
|
4,046
|
0.63
|
%
|
16,418
|
2.82
|
%
|
14,275
|
2.74
|
%
|
4,327
|
0.98
|
%
|
7,552
|
1.97
|
%
|
||||||||||||||||
Construction-commercial
|
1,758
|
0.27
|
%
|
-
|
0.00
|
%
|
600
|
0.12
|
%
|
11,721
|
2.66
|
%
|
22,975
|
5.97
|
%
|
||||||||||||||||
Acquisition
& development
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Total
real estate construction loans
|
5,804
|
0.90
|
%
|
16,418
|
2.82
|
%
|
14,875
|
2.86
|
%
|
16,048
|
3.64
|
%
|
30,527
|
7.94
|
%
|
||||||||||||||||
Other
loans:
|
|||||||||||||||||||||||||||||||
Home
equity
|
20,176
|
3.15
|
%
|
13,184
|
2.27
|
%
|
7,994
|
1.54
|
%
|
8,257
|
1.87
|
%
|
11,287
|
2.94
|
%
|
||||||||||||||||
Consumer
|
62,868
|
9.82
|
%
|
62,343
|
10.73
|
%
|
57,409
|
11.05
|
%
|
60,925
|
13.81
|
%
|
88,071
|
22.92
|
%
|
||||||||||||||||
Commercial
|
2,349
|
0.37
|
%
|
535
|
0.09
|
%
|
2,370
|
0.46
|
%
|
3,553
|
0.81
|
%
|
8,065
|
2.10
|
%
|
||||||||||||||||
Total
other loans
|
85,393
|
13.34
|
%
|
76,062
|
13.09
|
%
|
67,773
|
13.05
|
%
|
72,735
|
16.49
|
%
|
107,423
|
27.96
|
%
|
||||||||||||||||
Total
fixed-rate loans
|
246,270
|
38.44
|
%
|
237,156
|
40.81
|
%
|
240,167
|
46.24
|
%
|
268,168
|
60.81
|
%
|
305,775
|
79.57
|
%
|
||||||||||||||||
|
|||||||||||||||||||||||||||||||
ADJUSTABLE-RATE
LOANS
|
|||||||||||||||||||||||||||||||
Real
estate loans:
|
|||||||||||||||||||||||||||||||
One-to-four-family
|
218,547
|
34.12
|
%
|
211,091
|
36.31
|
%
|
185,029
|
35.62
|
%
|
100,804
|
22.86
|
%
|
57,133
|
14.87
|
%
|
||||||||||||||||
Commercial
|
37,072
|
5.79
|
%
|
36,462
|
6.27
|
%
|
23,610
|
4.55
|
%
|
26,566
|
6.02
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Other
(land and multi-family)
|
18,666
|
2.91
|
%
|
11,828
|
2.04
|
%
|
14,684
|
2.83
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Total
real estate loans
|
274,285
|
42.82
|
%
|
259,381
|
44.62
|
%
|
223,323
|
43.00
|
%
|
127,370
|
28.88
|
%
|
57,133
|
14.87
|
%
|
||||||||||||||||
Real
estate construction loans:
|
|||||||||||||||||||||||||||||||
Construction-one-
to four-family
|
28,421
|
4.44
|
%
|
7,825
|
1.35
|
%
|
-
|
0.00
|
%
|
7,586
|
1.72
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Construction-commercial
|
1,104
|
0.17
|
%
|
2,577
|
0.44
|
%
|
1,977
|
0.38
|
%
|
6,942
|
1.57
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Acquisition
& development
|
2,103
|
0.33
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Total
real estate construction loans
|
31,628
|
4.94
|
%
|
10,402
|
1.79
|
%
|
1,977
|
0.38
|
%
|
14,528
|
3.29
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Other
loans:
|
|||||||||||||||||||||||||||||||
Home
equity
|
70,886
|
11.07
|
%
|
65,832
|
11.33
|
%
|
52,083
|
10.03
|
%
|
30,960
|
7.02
|
%
|
21,358
|
5.56
|
%
|
||||||||||||||||
Consumer
|
762
|
0.12
|
%
|
503
|
0.09
|
%
|
484
|
0.09
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Commercial
|
16,695
|
2.61
|
%
|
7,895
|
1.36
|
%
|
1,341
|
0.26
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
||||||||||||||||
Total
other loans
|
88,343
|
13.80
|
%
|
74,230
|
12.78
|
%
|
53,908
|
10.38
|
%
|
30,960
|
7.02
|
%
|
21,358
|
5.56
|
%
|
||||||||||||||||
Total
adjustable-rate loans
|
394,256
|
61.56
|
%
|
344,013
|
59.19
|
%
|
279,208
|
53.76
|
%
|
172,858
|
39.19
|
%
|
78,491
|
20.43
|
%
|
||||||||||||||||
|
|||||||||||||||||||||||||||||||
Total
loans
|
$
|
640,526
|
100.00
|
%
|
$
|
581,169
|
100.00
|
%
|
$
|
519,375
|
100.00
|
%
|
$
|
441,026
|
100.00
|
%
|
$
|
384,266
|
100.00
|
%
|
|||||||||||
Less:
|
|||||||||||||||||||||||||||||||
Net
deferred loan origination (fees) costs
|
3,348
|
3,164
|
1,473
|
554
|
(231
|
)
|
|||||||||||||||||||||||||
Premiums
on purchased loans
|
348
|
695
|
819
|
635
|
435
|
||||||||||||||||||||||||||
Allowance
for loan losses
|
(4,705
|
)
|
(4,587
|
)
|
(3,956
|
)
|
(6,593
|
)
|
(4,692
|
)
|
|||||||||||||||||||||
Total
loans, net
|
$
|
639,517
|
$
|
580,441
|
$
|
517,711
|
$
|
435,622
|
$
|
379,778
|
One
to Four Family
|
Commercial
Real Estate
|
Other
Real Estate
|
Construction-One-
to four-family (1)
|
Construction-
Commercial
(1)
|
Acquisition
& Development
|
||||||||||||||||||||||||||||||||
At
December 31, 2006
|
Amount
|
Weighted
Average Rate
(%)
|
Amount
|
Weighted
Average Rate
(%)
|
Amount
|
Weighted
Average Rate
(%)
|
Amount
|
Weighted
Average Rate
(%)
|
Amount
|
Weighted
Average Rate
(%)
|
Amount
|
Weighted
Average Rate
(%)
|
|||||||||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||||||||
1
year or less
|
$
|
12
|
7.51
|
$
|
6,894
|
8.09
|
$
|
4,013
|
8.69
|
$
|
22,033
|
8.31
|
$
|
-
|
-
|
$
|
-
|
-
|
|||||||||||||||||||
Greater
than 1 to 3 years
|
1,303
|
4.34
|
16,076
|
8.17
|
4,981
|
7.76
|
2,342
|
8.49
|
1,105
|
8.25
|
2,103
|
8.75
|
|||||||||||||||||||||||||
Greater
than 3 to 5 years
|
5,972
|
5.36
|
13,927
|
8.11
|
10,276
|
7.76
|
-
|
-
|
495
|
8.25
|
-
|
-
|
|||||||||||||||||||||||||
Greater
than 5 to 10 years
|
6,609
|
6.49
|
16,309
|
6.85
|
2,733
|
8.53
|
-
|
-
|
423
|
7.5
|
-
|
-
|
|||||||||||||||||||||||||
Greater
than 10 to 20 years
|
69,643
|
5.64
|
7,124
|
6.60
|
9,456
|
6.69
|
944
|
6.04
|
839
|
8.05
|
-
|
-
|
|||||||||||||||||||||||||
More
than 20 years
|
250,461
|
5.62
|
582
|
6.62
|
2,987
|
7.52
|
7,148
|
6.47
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Total
|
$
|
334,000
|
$
|
60,912
|
$
|
34,446
|
$
|
32,467
|
$
|
2,862
|
$
|
2,103
|
|
|
Home
Equity
|
|
Consumer
|
|
Commercial
|
|
Total
|
|
||||||||||||||||
At
December 31, 2006
|
|
Amount
|
|
Weighted
Average Rate
(%)
|
|
Amount
|
|
Weighted
Average Rate
(%)
|
|
Amount
|
|
Weighted
Average Rate
(%)
|
|
Amount
|
|
Weighted
Average Rate
(%)
|
|||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||
1
year or less
|
$
|
99
|
9.16
|
$
|
3,945
|
8.64
|
$
|
8,611
|
8.22
|
$
|
45,607
|
8.32
|
|||||||||||||
Greater
than 1 to 3 years
|
66
|
7.68
|
12,665
|
9.83
|
1,129
|
7.65
|
41,770
|
8.54
|
|||||||||||||||||
Greater
than 3 to 5 years
|
5,129
|
8.25
|
25,699
|
10.66
|
4,600
|
7.71
|
66,098
|
8.78
|
|||||||||||||||||
Greater
than 5 to 10 years
|
6,102
|
8.25
|
6,041
|
8.36
|
4,704
|
8.45
|
42,921
|
7.49
|
|||||||||||||||||
Greater
than 10 to 20 years
|
22,046
|
8.81
|
12,756
|
9.86
|
-
|
-
|
122,808
|
6.80
|
|||||||||||||||||
More
than 20 years
|
57,620
|
8.53
|
2,524
|
10.45
|
-
|
-
|
321,322
|
6.22
|
|||||||||||||||||
Total
|
$
|
91,062
|
$
|
63,630
|
$
|
19,044
|
$
|
640,526
|
(1) |
Construction
loans include notes that cover both the construction period and the
end
permanent financing, and therefore, the schedule shows maturities
for
periods greater than one year.
|
One-
to Four-Family
|
Commercial
Real Estate
|
Other
-Real Estate
|
Construction
One- to
four-family
(1)
|
Construction
Commercial (1)
|
Acquisition
& Development
|
Home
Equity
|
Consumer
|
Commercial
|
Total
|
||||||||||||||||||||||
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
Amount
|
||||||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||
1
year or less
|
$
|
14,212
|
$
|
19,536
|
$
|
10,610
|
$
|
24,375
|
$
|
1,105
|
$
|
2,103
|
$
|
61,768
|
$
|
4,485
|
$
|
17,997
|
$
|
156,191
|
|||||||||||
Greater
than 1 to 3 years
|
127,816
|
21,341
|
8,773
|
1,418
|
-
|
-
|
8,060
|
12,650
|
628
|
180,686
|
|||||||||||||||||||||
Greater
than 3 to 5 years
|
41,435
|
9,383
|
7,648
|
2,647
|
495
|
-
|
5,986
|
25,177
|
355
|
93,126
|
|||||||||||||||||||||
Greater
than 5 to 10 years
|
13,801
|
5,897
|
2,694
|
-
|
423
|
-
|
5,385
|
6,041
|
64
|
34,305
|
|||||||||||||||||||||
Greater
than 10 to 20 years
|
58,020
|
4,755
|
4,031
|
436
|
839
|
-
|
8,850
|
12,753
|
-
|
89,684
|
|||||||||||||||||||||
More
than 20 years
|
78,716
|
-
|
690
|
3,591
|
-
|
-
|
1,013
|
2,524
|
-
|
86,534
|
|||||||||||||||||||||
Total
|
$
|
334,000
|
$
|
60,912
|
$
|
34,446
|
$
|
32,467
|
$
|
2,862
|
$
|
2,103
|
$
|
91,062
|
$
|
63,630
|
$
|
19,044
|
$
|
640,526
|
(1) |
Construction
loans include notes that cover both the construction period and the
end
permanent financing, and therefore, the schedule shows repricing
dates
greater than one year.
|
Loans
Delinquent For:
|
Total
|
||||||||||||||||||
60-89
Days
|
90
Days or More
|
Delinquent
Loans
|
|||||||||||||||||
Loan
Types
|
Number
of Loans
|
Principal
Balance of Loans
|
Number
of Loans
|
Principal
Balance of Loans
|
Number
of Loans
|
Principal
Balance of Loans
|
|||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Real
estate
|
|||||||||||||||||||
One-
to four-family
|
3
|
$
|
421
|
4
|
$
|
325
|
7
|
$
|
746
|
||||||||||
Commercial
|
-
|
-
|
2
|
430
|
2
|
430
|
|||||||||||||
Other
|
1
|
16
|
1
|
104
|
2
|
120
|
|||||||||||||
Real
Estate Construction
|
|||||||||||||||||||
Construction
- One- to four-family
|
1
|
196
|
3
|
551
|
4
|
747
|
|||||||||||||
Construction
- Commercial
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Construction
- Acquisition & Development
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Other
Loans - Consumer
|
|||||||||||||||||||
Home
equity
|
2
|
376
|
2
|
280
|
4
|
656
|
|||||||||||||
Consumer
|
36
|
203
|
88
|
445
|
124
|
648
|
|||||||||||||
Commercial
|
-
|
-
|
88
|
915
|
88
|
915
|
|||||||||||||
Total
|
43
|
$
|
1,212
|
188
|
$
|
3,050
|
231
|
$
|
4,262
|
||||||||||
Delinquent
loans to total gross loans
|
0.19
|
%
|
0.48
|
%
|
0.67
|
%
|
At
December 31,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Nonaccrual
loans:
|
||||||||||||||||
Real
Estate
|
||||||||||||||||
One-
to four-family
|
$
|
325
|
$
|
697
|
$
|
1,931
|
$
|
465
|
$
|
365
|
||||||
Commercial
|
430
|
238
|
3,271
|
5,670
|
-
|
|||||||||||
Other
|
104
|
109
|
-
|
-
|
-
|
|||||||||||
Real
Estate Construction
|
||||||||||||||||
Construction
One-to four-family
|
551
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
- Commercial
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
- Acquisition & Development
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
|
||||||||||||||||
Home
Equity
|
280
|
35
|
-
|
-
|
-
|
|||||||||||
Consumer
|
445
|
597
|
290
|
267
|
868
|
|||||||||||
Commercial
|
915
|
940
|
1,166
|
1,165
|
1,664
|
|||||||||||
Total
|
$
|
3,050
|
$
|
2,616
|
$
|
6,658
|
$
|
7,567
|
$
|
2,897
|
||||||
Accruing
delinquent 90 days or more:
|
||||||||||||||||
Real
Estate
|
||||||||||||||||
One-
to four-family
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Real
Estate Construction
|
||||||||||||||||
Construction
One-to four-family
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
- Commercial
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
- Acquisition & Development
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
|
||||||||||||||||
Home
Equity
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
non-performing loans
|
3,050
|
2,616
|
6,658
|
7,567
|
2,897
|
|||||||||||
Foreclosed
assets
|
286
|
310
|
323
|
1,079
|
1,141
|
|||||||||||
Total
non-performing assets
|
$
|
3,336
|
$
|
2,926
|
$
|
6,981
|
$
|
8,646
|
$
|
4,038
|
||||||
Non-performing
loans to total loans
|
0.48
|
%
|
0.45
|
%
|
1.28
|
%
|
1.72
|
%
|
0.75
|
%
|
||||||
Non-performing
loans to total assets
|
0.40
|
%
|
0.39
|
%
|
1.09
|
%
|
1.73
|
%
|
0.90
|
%
|
At
December 31,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Loss
|
$
|
-
|
$
|
-
|
|||
Doubtful
|
686
|
1,719
|
|||||
Substandard
|
4,915
|
5,398
|
|||||
Total
|
$
|
5,601
|
$
|
7,117
|
Year
Ended December 31, 2006
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Balance
at beginning of period
|
$
|
4,587
|
$
|
3,956
|
$
|
6,593
|
$
|
4,692
|
$
|
3,766
|
||||||
Charge-offs:
|
||||||||||||||||
Real
Estate Loans
|
||||||||||||||||
One-to
four-family
|
107
|
192
|
78
|
300
|
500
|
|||||||||||
Commercial
|
-
|
605
|
4,637
|
-
|
-
|
|||||||||||
Other
(Land & Multi-family)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Real
Estate Construction Loans
|
||||||||||||||||
Construction
One-to four family
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
Commercial
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Acquisition
& Development
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
Loans
|
||||||||||||||||
Home
equity
|
14
|
160
|
63
|
25
|
-
|
|||||||||||
Consumer
|
1,094
|
1,249
|
1,642
|
2,259
|
2,752
|
|||||||||||
Commercial
|
-
|
120
|
-
|
664
|
251
|
|||||||||||
Total
charge-offs
|
1,215
|
2,326
|
6,420
|
3,248
|
3,503
|
|||||||||||
Recoveries:
|
||||||||||||||||
Real
Estate Loans
|
||||||||||||||||
One-to
four-family
|
54
|
40
|
7
|
86
|
1
|
|||||||||||
Commercial
|
83
|
51
|
-
|
-
|
-
|
|||||||||||
Other
(Land & Multi-family)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Real
Estate Construction Loans
|
||||||||||||||||
Construction
One-to four family
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Construction
Commercial
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Acquisition
& Development
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
Loans
|
||||||||||||||||
Home
equity
|
18
|
1
|
11
|
2
|
-
|
|||||||||||
Consumer
|
703
|
732
|
790
|
823
|
745
|
|||||||||||
Commercial
|
-
|
12
|
-
|
-
|
-
|
|||||||||||
Total
recoveries
|
858
|
836
|
808
|
911
|
746
|
|||||||||||
Net
charge-offs
|
357
|
1,490
|
5,612
|
2,337
|
2,757
|
|||||||||||
Provision
for loan losses
|
475
|
2,121
|
2,975
|
4,238
|
3,683
|
|||||||||||
Balance
at end of period
|
$
|
4,705
|
$
|
4,587
|
$
|
3,956
|
$
|
6,593
|
$
|
4,692
|
||||||
Net
charge-offs to average loans during this period (1)
|
0.06
|
%
|
0.27
|
%
|
1.16
|
%
|
0.57
|
%
|
0.76
|
%
|
||||||
Net
charge-offs to average non-performing loans during this
period
|
11.36
|
%
|
43.41
|
%
|
122.10
|
%
|
30.88
|
%
|
95.17
|
%
|
||||||
Allowance
for loan losses to non-performing loans
|
154.21
|
%
|
175.36
|
%
|
59.42
|
%
|
87.13
|
%
|
161.96
|
%
|
||||||
Allowance
as % of total loans (end of period) (1)
|
0.73
|
%
|
0.78
|
%
|
0.75
|
%
|
1.47
|
%
|
1.20
|
%
|
(1) |
Total
loans are net of deferred fees and costs and purchase premiums or
discounts
|
2006
|
At
December 31, 2005
|
2004
|
||||||||||||||||||||||||||
|
|
Amount
of Loan Loss Allowance
|
|
Loan
Amounts by Category
|
|
Percent
of Loans in Each Category to Total Loans
|
|
Amount
of Loan Loss Allowance
|
|
Loan
Amounts by Category
|
|
Percent
of Loans in Each Category to Total Loans
|
|
Amount
of Loan Loss Allowance
|
|
Loan
Amounts by Category
|
|
Percent
of Loans in Each Category to Total Loans
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
(Dollars
in Thousands)
|
||||||||||||||||||||||||||
Real
Estate Loans
|
||||||||||||||||||||||||||||
One-to
four-family
|
$
|
771
|
$
|
334,000
|
52.14
|
%
|
$
|
672
|
$
|
324,682
|
55.88
|
%
|
$
|
494
|
$
|
303,544
|
58.44
|
%
|
||||||||||
Commercial
|
660
|
60,912
|
9.51
|
%
|
1,041
|
59,074
|
10.16
|
%
|
1,404
|
57,178
|
11.01
|
%
|
||||||||||||||||
Other
(land & multi-family)
|
212
|
34,446
|
5.38
|
%
|
117
|
20,302
|
3.49
|
%
|
32
|
20,120
|
3.87
|
%
|
||||||||||||||||
Real
Estate Constrcution
|
||||||||||||||||||||||||||||
Construction
One-to four family
|
323
|
32,467
|
5.07
|
%
|
185
|
24,242
|
4.17
|
%
|
71
|
14,275
|
2.75
|
%
|
||||||||||||||||
Construction
Commercial
|
63
|
2,862
|
0.45
|
%
|
26
|
2,577
|
0.44
|
%
|
179
|
2,577
|
0.50
|
%
|
||||||||||||||||
Acquistion
& Development
|
-
|
2,103
|
0.33
|
%
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Other
Loans
|
||||||||||||||||||||||||||||
Home
Equity
|
745
|
91,062
|
14.22
|
%
|
497
|
79,016
|
13.60
|
%
|
332
|
60,077
|
11.57
|
%
|
||||||||||||||||
Consumer
|
1,327
|
63,630
|
9.93
|
%
|
1,581
|
62,846
|
10.81
|
%
|
1,227
|
57,893
|
11.15
|
%
|
||||||||||||||||
Commercial
|
604
|
19,044
|
2.97
|
%
|
468
|
8,430
|
1.45
|
%
|
217
|
3,711
|
0.71
|
%
|
||||||||||||||||
Total
|
$
|
4,705
|
$
|
640,526
|
100.00
|
%
|
$
|
4,587
|
$
|
581,169
|
100.00
|
%
|
$
|
3,956
|
$
|
519,375
|
100.00
|
%
|
|
|
2003
|
|
2002
|
|
||||||||||||||
|
|
Amount
of Loan Loss Allowance
|
|
Loan
Amounts by Category
|
|
Percent
of Loans in Each Category to Total Loans
|
|
Amount
of Loan Loss Allowance
|
|
Loan
Amounts by Category
|
|
Percent
of Loans in Each Category to Total Loans
|
|||||||
Real
Estate Loans
|
|||||||||||||||||||
One-to
four-family real estate
|
$
|
281
|
$
|
236,959
|
53.73
|
%
|
$
|
55
|
$
|
177,295
|
46.13
|
%
|
|||||||
Commercial
real estate
|
3,622
|
56,228
|
12.75
|
%
|
389
|
36,161
|
9.41
|
%
|
|||||||||||
Other
(land & multi-family)
|
28
|
13,568
|
3.08
|
%
|
15
|
11,502
|
2.99
|
%
|
|||||||||||
Real
Estate Constrcution
|
|||||||||||||||||||
Construction-one-to
four family
|
-
|
11,913
|
2.70
|
%
|
-
|
7,552
|
1.97
|
%
|
|||||||||||
Construction
-commercial
|
1,049
|
18,663
|
4.23
|
%
|
251
|
22,975
|
5.98
|
%
|
|||||||||||
Acquistion
& Development
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Other
Loans
|
|||||||||||||||||||
Home
equity
|
45
|
39,217
|
8.89
|
%
|
512
|
32,645
|
8.50
|
%
|
|||||||||||
Consumer
|
1,328
|
60,925
|
13.81
|
%
|
2,642
|
88,071
|
22.92
|
%
|
|||||||||||
Commercial
|
240
|
3,553
|
0.81
|
%
|
828
|
8,065
|
2.10
|
%
|
|||||||||||
Total
|
$
|
6,593
|
$
|
441,026
|
100.00
|
%
|
4,692
|
384,266
|
100.00
|
%
|
2006
|
|
At
December 31, 2005 |
|
2004
|
|
||||||||||||||
|
|
Carrying
Value
|
|
%
of Total
|
|
Carrying
Value
|
|
%
of Total
|
|
Carrying
Value
|
|
%
of Total
|
|
||||||
|
|
(Dollars
in Thousands)
|
|||||||||||||||||
Securities
available for sale:
|
|||||||||||||||||||
U.S.
government and agency
|
$
|
16,280
|
16.41
|
%
|
$
|
32,079
|
44.58
|
%
|
$
|
20,853
|
39.07
|
%
|
|||||||
State
and municipal
|
1,729
|
1.74
|
%
|
5,361
|
7.45
|
%
|
11,930
|
22.36
|
%
|
||||||||||
Mortgage
Backed Securities
|
81,222
|
81.85
|
%
|
34,525
|
47.97
|
%
|
10,603
|
19.87
|
%
|
||||||||||
Corporate
commercial paper
|
-
|
-
|
-
|
-
|
9,967
|
18.68
|
%
|
||||||||||||
Mutual
Funds
|
-
|
-
|
-
|
-
|
10
|
0.02
|
%
|
||||||||||||
Total
|
$
|
99,231
|
100.00
|
%
|
$
|
71,965
|
100.00
|
%
|
$
|
53,363
|
100.00
|
%
|
|||||||
Other
earning assets:
|
|||||||||||||||||||
Interest-earning
deposits with banks
|
$
|
30,486
|
76.92
|
%
|
$
|
15,918
|
64.21
|
%
|
$
|
18,286
|
50.10
|
%
|
|||||||
Federal
funds sold and securities purchased under agreements to
resell
|
-
|
-
|
-
|
-
|
11,800
|
32.33
|
%
|
||||||||||||
FHLB
stock
|
7,948
|
20.05
|
%
|
7,074
|
28.53
|
%
|
5,511
|
15.10
|
%
|
||||||||||
Other
investments
|
1,200
|
3.03
|
%
|
1,800
|
7.26
|
%
|
900
|
2.47
|
%
|
||||||||||
Total
|
$
|
39,634
|
100.00
|
%
|
$
|
24,792
|
100.00
|
%
|
$
|
36,497
|
100.00
|
%
|
|
|
Less
Than 1 Year
|
|
1
to 5
Years
|
|
5
to 10
Years
|
|
Over
10
Years
|
|
Total
Securities
|
|
||||||||
|
|
Amortized
Cost
|
|
Amortized
Cost
|
|
Amortized
Cost
|
|
Amortized
Cost
|
|
Amortized
Cost
|
|
Fair
Value
|
|
||||||
|
|
(Dollars
in Thousands)
|
|||||||||||||||||
Government
sponsored enterprises
|
$
|
5,686
|
$
|
4,733
|
$
|
969
|
$
|
5,000
|
$
|
16,388
|
$
|
16,280
|
|||||||
State
and Municipal
|
1,073
|
675
|
-
|
-
|
1,748
|
1,729
|
|||||||||||||
Mortgage-backed
securities
|
-
|
2,782
|
19,174
|
59,471
|
81,427
|
81,222
|
|||||||||||||
Total
investment securities
|
$
|
6,759
|
$
|
8,190
|
$
|
20,143
|
$
|
64,471
|
$
|
99,563
|
$
|
99,231
|
|||||||
Weighted
average yield
|
4.16
|
%
|
4.41
|
%
|
5.54
|
%
|
5.42
|
%
|
5.28
|
%
|
5.28
|
%
|
(1) |
The
above presentation does not include the carrying values, yields and
maturities of mutual funds as these investments do not have contractual
maturities.
|
At
December 31,
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||||||||
average
|
average
|
average
|
||||||||||||||||||||||||||
Balance
|
Percent
|
rate
|
Balance
|
Percent
|
rate
|
Balance
|
Percent
|
rate
|
||||||||||||||||||||
Deposit
type
|
||||||||||||||||||||||||||||
Non
interest bearing demand
|
38,301
|
6.68
|
%
|
-
|
38,454
|
7.45
|
%
|
-
|
34,799
|
7.99
|
%
|
-
|
||||||||||||||||
Savings
|
41,915
|
7.31
|
%
|
0.42
|
%
|
53,725
|
10.41
|
%
|
0.41
|
%
|
67,506
|
15.49
|
%
|
0.45
|
%
|
|||||||||||||
Interest
bearing demand
|
52,895
|
9.23
|
%
|
3.00
|
%
|
79,739
|
15.44
|
%
|
2.44
|
%
|
30,582
|
7.02
|
%
|
1.22
|
%
|
|||||||||||||
Money
market demand
|
116,314
|
20.31
|
%
|
4.69
|
%
|
46,535
|
9.01
|
%
|
3.09
|
%
|
56,753
|
13.03
|
%
|
2.00
|
%
|
|||||||||||||
Total
transactions
|
||||||||||||||||||||||||||||
Accounts
|
249,425
|
43.53
|
%
|
2.89
|
%
|
218,453
|
42.31
|
%
|
1.65
|
%
|
189,640
|
43.53
|
%
|
0.96
|
%
|
|||||||||||||
Certificate
of deposit
|
323,627
|
56.47
|
%
|
4.83
|
%
|
297,868
|
57.69
|
%
|
3.81
|
%
|
246,042
|
56.47
|
%
|
2.98
|
%
|
|||||||||||||
Total
deposits
|
573,052
|
100.00
|
%
|
3.99
|
%
|
516,321
|
100.00
|
%
|
2.90
|
%
|
435,682
|
100.00
|
%
|
2.10
|
%
|
Maturity
Period
|
At
December
31,
2006
|
|||
(Dollars
in Thousands)
|
||||
Three
months or less
|
$
|
45,577
|
||
Over
three months through six months
|
23,070
|
|||
Over
six months through one year
|
15,540
|
|||
Over
one year to three years
|
39,976
|
|||
Over
three years
|
7,520
|
|||
Total
|
$
|
131,683
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(Dollars
In Thousands)
|
||||||||||
Average
balance outstanding
|
$
|
128,260
|
$
|
119,462
|
$
|
87,640
|
||||
Maximum
month-end balance
|
$
|
144,000
|
$
|
129,000
|
$
|
100,314
|
||||
Balance
at end of period
|
$
|
144,000
|
$
|
129,000
|
$
|
100,314
|
||||
Weighted
average interest rate during the period
|
4.26
|
%
|
4.18
|
%
|
4.26
|
%
|
||||
Weighted
average interest rate at end of period
|
4.45
|
%
|
4.18
|
%
|
3.67
|
%
|
· |
Commercial
Real Estate and Commercial Business Loans.
Repayment is dependent on income being generated by the rental property
or
business in amounts sufficient to cover operating expenses and debt
service.
|
· |
Commercial
and Multi-Family Construction Loans.
Repayment is dependent upon the completion of the project and income
being
generated by the rental property or business in amounts sufficient
to
cover operating expenses and debt
service.
|
· |
Single
Family Construction Loans.
Repayment is dependent upon the successful completion of the project
and
the ability of the contractor or builder to repay the loan from the
sale
of the property or obtaining permanent
financing.
|
· |
Multi-Family
Real Estate Loans.
Repayment is dependent on income being generated by the rental property
in
amounts sufficient to cover operating expenses and debt service.
|
· |
Consumer
Loans.
Consumer loans (such as automobile loans) are collateralized, if
at all,
with assets that may not provide an adequate source of repayment
of the
loan due to depreciation, damage or
loss.
|
Location
|
Owned
or Leased |
Lease
Expiration Date |
Net
Book Value December 31, 2006 |
|||||||
(Dollars
in Thousands)
|
||||||||||
HOME
AND EXECUTIVE OFFICE
|
Owned
|
—
|
1,587
|
|||||||
AND
MAIN BRANCH
|
||||||||||
505
Haines Avenue
|
||||||||||
Waycross,
GA 31501
|
||||||||||
FLORIDA
REGIONAL CENTER
|
Leased
|
June
2008
|
205
|
|||||||
10151
Deerwood Park Blvd.
|
||||||||||
Building
100 Suite 501
|
||||||||||
Jacksonville,
FL 32256
|
||||||||||
BRANCH
OFFICES:
|
Owned
|
—
|
73
|
|||||||
Drive-up
Facility
|
||||||||||
400
Haines Avenue
|
||||||||||
Waycross,
GA 31501
|
||||||||||
2110
Memorial Drive
|
Owned
|
—
|
554
|
|||||||
Waycross,
GA 31501
|
||||||||||
1390
South Gaskin Avenue
|
Owned
|
—
|
595
|
|||||||
Douglas,
GA 31533
|
||||||||||
213
Hwy 80 West
|
Owned
|
—
|
287
|
|||||||
Garden
City, GA 31408
|
||||||||||
10328
Deerwood Park Blvd.
|
Owned
|
—
|
1,054
|
|||||||
Jacksonville,
FL 32256
|
||||||||||
8048
Normandy Blvd.
|
Owned
|
—
|
1,119
|
|||||||
Jacksonville,
FL 32221
|
||||||||||
1970
Solomon Street
|
Owned
|
—
|
188
|
|||||||
Orange
Park, FL 32073
|
||||||||||
463
West Duval Street
|
Owned
|
—
|
138
|
|||||||
Lake
City, FL 32055
|
||||||||||
930
University Avenue, North
|
Owned
|
—
|
1,101
|
|||||||
Jacksonville,
FL 32211
|
||||||||||
1700
South Third Street
|
Owned
|
—
|
1,514
|
|||||||
Jacksonville
Beach, FL 32200
|
||||||||||
536
Atlantic Blvd.
|
Leased
|
May
2007
|
36
|
|||||||
Neptune
Beach, FL 32233 (Relocated January 17, 2007)
|
||||||||||
1425
Atlantic Blvd.
|
Owned
|
—
|
2,294
|
|||||||
Neptune
Beach, FL 32233 (Opened January 17, 2007)
|
||||||||||
2766
Race Track Road
|
Owned
|
—
|
2,576
|
|||||||
Jacksonville,
FL 32259
|
||||||||||
715
Centre Street
|
Owned
|
—
|
1,099
|
|||||||
Fernandina
Beach, FL 32034
|
High
|
Low
|
Dividends
|
||||||||
Fiscal
2006
|
||||||||||
January
1-March 31
|
$
|
14.80
|
$
|
14.05
|
$
|
0.09
|
||||
April
1- June 30
|
15.99
|
14.29
|
0.10
|
|||||||
July
1- September 30
|
18.33
|
14.90
|
0.11
|
|||||||
October
1- December 31
|
18.40
|
17.31
|
0.12
|
|||||||
High
|
Low
|
Dividends
|
||||||||
Fiscal
2005
|
||||||||||
January
1-March 31
|
$
|
14.00
|
$
|
12.21
|
$
|
0.05
|
||||
April
1- June 30
|
12.65
|
10.69
|
0.06
|
|||||||
July
1- September 30
|
14.55
|
12.21
|
0.07
|
|||||||
October
1- December 31
|
14.85
|
13.20
|
0.08
|
Period
Ending
|
|||||||||||||||||||
Index
|
10/05/04
|
12/31/04
|
06/30/05
|
12/31/05
|
06/30/06
|
12/31/06
|
|||||||||||||
Atlantic
Coast Federal Corporation
|
100.00
|
117.19
|
105.74
|
121.39
|
131.04
|
161.27
|
|||||||||||||
NASDAQ
Composite
|
100.00
|
111.42
|
105.71
|
116.70
|
115.44
|
128.82
|
|||||||||||||
SNL
MHC Thrift Index
|
100.00
|
107.35
|
107.38
|
110.29
|
124.97
|
151.04
|
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or
Programs
|
|||||||||
October
1, 2006 through October 31, 2006
|
-
|
-
|
-
|
342,250
|
|||||||||
November
1, 2006 through November 30, 2006
|
13,766
|
17.99
|
13,766
|
328,484
|
|||||||||
December
1, 2006 through December 31, 2006
|
40,000
|
18.24
|
40,000
|
288,484
|
|||||||||
Total
|
53,766
|
$
|
18.18
|
53,766
|
288,484
|
||||||||
October
1, 2005 through October 31, 2005
|
-
|
-
|
-
|
579,520
|
|||||||||
November
1, 2005 through November 30, 2005
|
268,988
|
14.64
|
268,988
|
310,532
|
|||||||||
December
1, 2005 through December 31, 2005
|
110,500
|
14.63
|
110,500
|
200,032
|
|||||||||
Total
|
379,488
|
$
|
14.64
|
379,488
|
200,032
|
Plan
|
Number
of Securities to be Issued Upon Exercise of Outstanding Options,
Warrants
and Rights(1)
|
Weighted
Average Exercise Price(2)
of
Outstanding Options, Warrants and Rights
|
Number
of Securities Remaining Available For Future Issuance Under Equity
Compensation Plans(3)
|
|||||||
Equity
compensation plans approved by stockholders
|
558,051
|
$
|
14.09
|
147,314
|
||||||
Equity
compensation plans not approved by stockholders
|
—
|
—
|
—
|
|||||||
Total
|
558,051
|
$
|
14.09
|
147,314
|
(1) |
Consists
of options to purchase 558,051 shares of common stock under the Atlantic
Coast Federal Corporation 2005 Stock Option
Plan.
|
(2) |
The
weighted average exercise price reflects the weighted average exercise
price of stock options awarded from the Atlantic Coast Federal Corporation
2005 Stock Option Plan.
|
(3) |
Consists
of stock options for 147,314 shares of common stock available to
be
granted from the Atlantic Coast Federal Corporation 2005 Stock Option
Plan.
|
At
December 31,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Selected
Consolidated Balance
|
As
Originally
|
As
|
As
Originally
|
As
|
As
Originally
|
As
|
|||||||||||||
Sheet
Data:
|
Reported
|
Restated
|
Reported
|
Restated
|
Reported
|
Restated
|
|||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Total
assets
|
$
|
842,825
|
$
|
843,079
|
$
|
743,849
|
$
|
744,116
|
$
|
637,678
|
$
|
637,738
|
|||||||
Total
cash and cash equivalents
|
41,057
|
41,057
|
37,959
|
37,959
|
25,708
|
25,708
|
|||||||||||||
Securities
available for sale
|
99,231
|
99,231
|
71,965
|
71,965
|
53,363
|
53,363
|
|||||||||||||
Loans
receivable, net
|
639,517
|
639,517
|
580,441
|
580,441
|
517,711
|
517,711
|
|||||||||||||
FHLB
stock
|
7,948
|
7,948
|
7,074
|
7,074
|
5,511
|
5,511
|
|||||||||||||
Deposits
|
573,052
|
573,052
|
516,321
|
516,321
|
435,683
|
435,683
|
|||||||||||||
Total
borrowings
|
144,000
|
144,000
|
129,000
|
129,000
|
100,314
|
100,314
|
|||||||||||||
Total
stockholders' equity
|
91,087
|
91,087
|
92,917
|
92,918
|
98,700
|
98,700
|
Years
Ended December 31,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Selected
Consolidated Statement
|
As
Originally
|
As
|
As
Originally
|
As
|
As
Originally
|
As
|
|||||||||||||
of
Income Data:
|
Reported
|
Restated
|
Reported
|
Restated
|
Reported
|
Restated
|
|||||||||||||
(Dollars
in
Thousands)
|
|||||||||||||||||||
Total
interest income
|
$
|
46,407
|
$
|
46,407
|
$
|
37,254
|
$
|
37,254
|
$
|
31,772
|
$
|
31,772
|
|||||||
Total
interest expense
|
24,550
|
24,747
|
17,158
|
17,139
|
11,916
|
11,644
|
|||||||||||||
Net
interest income
|
21,857
|
21,660
|
20,096
|
20,115
|
19,856
|
20,128
|
|||||||||||||
Provision
for loan losses
|
475
|
475
|
2,121
|
2,121
|
2,975
|
2,975
|
|||||||||||||
Net
interest income after
|
|||||||||||||||||||
provision
for loan losses
|
21,382
|
21,185
|
17,975
|
17,994
|
16,881
|
17,153
|
|||||||||||||
Noninterest
income
|
7,842
|
8,005
|
7,413
|
7,937
|
5,322
|
5,208
|
|||||||||||||
Noninterest
expense
|
21,679
|
21,679
|
19,616
|
19,616
|
17,256
|
17,256
|
|||||||||||||
Income
before income taxes
|
7,545
|
7,511
|
5,772
|
6,315
|
4,947
|
5,105
|
|||||||||||||
Income
tax expense (1)
|
2,393
|
2,382
|
1,083
|
1,290
|
1,755
|
1,815
|
|||||||||||||
Net
Income
|
$
|
5,152
|
$
|
5,129
|
$
|
4,689
|
$
|
5,025
|
$
|
3,192
|
$
|
3,290
|
|||||||
Earnings
per share:
|
|||||||||||||||||||
Basic
|
$
|
0.38
|
$
|
0.38
|
$
|
0.34
|
$
|
0.36
|
$
|
0.32
|
$
|
0.33
|
|||||||
Earnings
per share:
|
|||||||||||||||||||
Diluted
|
$
|
0.38
|
$
|
0.38
|
$
|
0.33
|
$
|
0.36
|
$
|
0.32
|
$
|
0.33
|
At
or For the Year Ended December 31,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Selected
Consolidated Financial Ratios
|
As
Originally
|
As
|
As
Originally
|
As
|
As
Originally
|
As
|
|||||||||||||
and
Other Data:
|
Reported
|
Restated
|
Reported
|
Restated
|
Reported
|
Restated
|
|||||||||||||
Performance
Ratios:
|
|||||||||||||||||||
Return
on assets (ratio of net
|
|||||||||||||||||||
income
to average total assets)
|
0.66
|
%
|
0.66
|
%
|
0.67
|
%
|
0.71
|
%
|
0.55
|
%
|
0.56
|
%
|
|||||||
Return
on Equity (ratio of net
|
|||||||||||||||||||
income
to average equity)
|
5.50
|
%
|
5.48
|
%
|
4.73
|
%
|
5.07
|
%
|
5.87
|
%
|
6.05
|
%
|
|||||||
Interest
rate spread information:
|
|||||||||||||||||||
Average
during the period
|
2.58
|
%
|
2.55
|
%
|
2.61
|
%
|
2.62
|
%
|
3.23
|
%
|
3.29
|
%
|
|||||||
Net
interest margin (2)
|
3.02
|
%
|
2.99
|
%
|
3.05
|
%
|
3.06
|
%
|
3.59
|
%
|
3.64
|
%
|
|||||||
Ratio
of operating expense to average
|
|||||||||||||||||||
total
assets
|
2.78
|
%
|
2.78
|
%
|
2.78
|
%
|
2.78
|
%
|
2.95
|
%
|
2.95
|
%
|
|||||||
Efficiency
ratio (3)
|
73.00
|
%
|
73.08
|
%
|
71.31
|
%
|
69.93
|
%
|
68.54
|
%
|
68.11
|
%
|
|||||||
Ratio
of average interest-earning assets
|
|||||||||||||||||||
to
average interest-bearing liabilities
|
113.01
|
%
|
113.01
|
%
|
116.87
|
%
|
116.87
|
%
|
116.63
|
%
|
116.63
|
%
|
|||||||
Asset
Quality Ratios:
|
|||||||||||||||||||
Non-performingassets
to total assets
|
|||||||||||||||||||
at
end of period
|
0.37
|
%
|
0.37
|
%
|
0.39
|
%
|
0.39
|
%
|
1.09
|
%
|
1.09
|
%
|
|||||||
Allowance
for laon losses to
|
|||||||||||||||||||
non-performing
loans
|
154.21
|
%
|
154.21
|
%
|
175.36
|
%
|
175.36
|
%
|
59.42
|
%
|
59.42
|
%
|
|||||||
Allowance
for loan losses to total loans
|
0.73
|
%
|
0.73
|
%
|
0.78
|
%
|
0.78
|
%
|
0.76
|
%
|
0.76
|
%
|
|||||||
Net
charge-offs to average outstanding
|
|||||||||||||||||||
loans
|
0.06
|
%
|
0.06
|
%
|
0.27
|
%
|
0.27
|
%
|
1.16
|
%
|
1.16
|
%
|
|||||||
Non-performing
laons to total loans
|
0.47
|
%
|
0.47
|
%
|
0.45
|
%
|
0.45
|
%
|
1.28
|
%
|
1.28
|
%
|
|||||||
Capital
Ratios:
|
|||||||||||||||||||
Equity
to total assets at end of period
|
10.81
|
%
|
10.81
|
%
|
12.49
|
%
|
12.49
|
%
|
15.48
|
%
|
15.48
|
%
|
|||||||
Average
equity to average assets
|
12.00
|
%
|
12.00
|
%
|
14.07
|
%
|
14.07
|
%
|
9.29
|
%
|
9.29
|
%
|
|||||||
Other
Data:
|
|||||||||||||||||||
Number
of full-service offices
|
13
|
13
|
12
|
12
|
12
|
12
|
|||||||||||||
Number
of loans
|
14,679
|
14,679
|
15,151
|
15,151
|
15,840
|
15,840
|
|||||||||||||
Number
of deposit accounts
(4)
|
49,896
|
49,896
|
51,738
|
51,738
|
56,962
|
56,962
|
(1) |
The
2005 income tax expense includes a benefit of $895 for the elimination
of
a tax-related contingent liability for the same amount. The tax-related
contingent liability had been established by the Company in 2000
upon
becoming a taxable entity and reflected the tax effect of the bad
deduction taken by the Company in 2000 and 2001 calendar tax years.
The
Company believed the filing position was supportable based upon a
reasonable interpretation of the federal income tax laws and the
underlying regulations. However, due to the lack of prior rulings
on
similar fact patterns, it was unknown whether the accounting method
would
be sustained upon audit by either the federal or state tax authorities.
The applicable statute of limitations expired with respect to the
2001 tax
year on September 15, 2005, making the contingent liability unnecessary.
|
(2) |
Net
interest income divided by average interest earning
assets.
|
(3) |
Efficiency
ratio represents non-interest expense as a percentage of net interest
income plus non-interest income.
|
2006
|
2005
|
||||||
(In
Millions)
|
|||||||
First
quarter
|
$
|
0.1
|
$
|
0.5
|
|||
Second
quarter
|
0.2
|
0.6
|
|||||
Third
quarter
|
(0.1
|
)
|
0.4
|
||||
Fourth
quarter
|
0.3
|
0.6
|
|||||
Total
|
$
|
0.5
|
$
|
2.1
|
Increase
(decrease)
|
|||||||||||||
2006
|
2005
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands, Except Share Information)
|
|||||||||||||
ASSETS
|
|||||||||||||
Total
cash and cash equivalents
|
$
|
41,057
|
$
|
37,959
|
$
|
3,098
|
8.2
|
%
|
|||||
Other
interest earning investments
|
1,200
|
1,800
|
(600
|
)
|
-33.3
|
%
|
|||||||
Securities
available for sale
|
99,231
|
71,965
|
27,266
|
37.9
|
%
|
||||||||
Loans
|
644,222
|
585,028
|
59,194
|
10.1
|
%
|
||||||||
Allowance
for loan losses
|
(4,705
|
)
|
(4,587
|
)
|
(118
|
)
|
2.6
|
%
|
|||||
Loans,
net
|
639,517
|
580,441
|
59,076
|
10.2
|
%
|
||||||||
Loans
held for sale
|
4,365
|
100
|
4,265
|
4265.0
|
%
|
||||||||
Other
assets
|
57,709
|
51,851
|
5,858
|
11.3
|
%
|
||||||||
Total
assets
|
$
|
843,079
|
$
|
744,116
|
$
|
98,963
|
13.3
|
%
|
|||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||||||||
Deposits
|
|||||||||||||
Non-interest-bearing
|
$
|
38,301
|
$
|
38,454
|
$
|
(153
|
)
|
-0.4
|
%
|
||||
Interest-bearing
transaction accounts
|
52,895
|
79,739
|
(26,844
|
)
|
-33.7
|
%
|
|||||||
Savings
and money market
|
158,229
|
100,259
|
57,970
|
57.8
|
%
|
||||||||
Time
|
323,627
|
297,869
|
25,758
|
8.6
|
%
|
||||||||
Total
deposits
|
573,052
|
516,321
|
56,731
|
11.0
|
%
|
||||||||
Federal
Home Loan Bank advances
|
144,000
|
129,000
|
15,000
|
11.6
|
%
|
||||||||
Securities
sold under agreements to repurchase
|
29,000
|
-
|
29,000
|
-
|
|||||||||
Accrued
expenses and other liabilities
|
5,940
|
5,877
|
63
|
1.1
|
%
|
||||||||
Total
liabilities
|
751,992
|
651,198
|
100,794
|
15.5
|
%
|
||||||||
Total
stockholders' equity
|
91,087
|
92,918
|
(1,831
|
)
|
-2.0
|
%
|
|||||||
Total
liabilities and stockholders' equity
|
$
|
843,079
|
$
|
744,116
|
$
|
98,963
|
13.3
|
%
|
As
of December 31,
|
Increase
(decrease)
|
||||||||||||||||||
2006
|
%
of total loans
|
2005
|
%
of total loans
|
Dollars
|
Percentage
|
||||||||||||||
(Dollars
In Thousands)
|
|||||||||||||||||||
Real
estate loans:
|
|||||||||||||||||||
One-to-four
family
|
$
|
334,000
|
52.1
|
%
|
$
|
324,681
|
55.9
|
%
|
$
|
9,319
|
2.9
|
%
|
|||||||
Commercial
|
60,912
|
9.5
|
%
|
59,074
|
10.2
|
%
|
1,838
|
3.1
|
%
|
||||||||||
Other
( Land & Multifamily)
|
34,446
|
5.4
|
%
|
20,302
|
3.5
|
%
|
14,144
|
69.7
|
%
|
||||||||||
Total
real estate loans
|
429,358
|
67.0
|
%
|
404,057
|
69.5
|
%
|
25,301
|
6.3
|
%
|
||||||||||
Real
estate construction loans:
|
|||||||||||||||||||
Construction-one-to-four
family
|
32,467
|
5.1
|
%
|
24,243
|
4.2
|
%
|
8,224
|
33.9
|
%
|
||||||||||
Construction-commercial
|
2,862
|
0.4
|
%
|
2,577
|
0.4
|
%
|
285
|
11.1
|
%
|
||||||||||
Acquisition
& Development
|
2,103
|
0.3
|
%
|
-
|
0.0
|
%
|
2,103
|
-
|
|||||||||||
Total
real estate construction loans
|
37,432
|
5.8
|
%
|
26,820
|
4.6
|
%
|
10,612
|
39.6
|
%
|
||||||||||
Other
loans:
|
|||||||||||||||||||
Home
equity
|
91,062
|
14.2
|
%
|
79,016
|
13.6
|
%
|
12,046
|
15.2
|
%
|
||||||||||
Consumer
|
63,630
|
9.9
|
%
|
62,846
|
10.8
|
%
|
784
|
1.2
|
%
|
||||||||||
Commercial
|
19,044
|
3.0
|
%
|
8,430
|
1.5
|
%
|
10,614
|
125.9
|
%
|
||||||||||
Total
other loans
|
173,736
|
27.1
|
%
|
150,292
|
25.9
|
%
|
23,444
|
15.6
|
%
|
||||||||||
Total
loans
|
640,526
|
100
|
%
|
581,169
|
100
|
%
|
59,357
|
10.2
|
%
|
||||||||||
Allowance
for loan losses
|
(4,705
|
)
|
(4,587
|
)
|
(118
|
)
|
2.6
|
%
|
|||||||||||
Net
deferred loan (fees) costs
|
3,348
|
3,164
|
184
|
5.8
|
%
|
||||||||||||||
Premiums
on purchased loans
|
348
|
695
|
(347
|
)
|
-49.9
|
%
|
|||||||||||||
Loans,
net
|
$
|
639,517
|
$
|
580,441
|
$
|
59,076
|
10.2
|
%
|
Georgia
|
Florida
|
Other
States
|
Total
|
||||||||||
1-4
Family First Mortgages
|
$
|
86,283
|
$
|
225,959
|
$
|
21,758
|
$
|
334,000
|
|||||
1-4
Family Second Mortgages
|
35,622
|
54,769
|
671
|
91,062
|
|||||||||
1-4
Family Construction Loans
|
1,653
|
30,814
|
-
|
32,467
|
|||||||||
$
|
123,558
|
$
|
311,542
|
$
|
22,429
|
$
|
457,529
|
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Beginning
balance
|
$
|
4,587
|
$
|
3,956
|
|||
Loans
charged-off
|
(1,215
|
)
|
(2,326
|
)
|
|||
Recoveries
|
858
|
836
|
|||||
Net
charge-offs
|
(357
|
)
|
(1,490
|
)
|
|||
Provision
for loan losses
|
475
|
2,121
|
|||||
Ending
balance
|
$
|
4,705
|
$
|
4,587
|
For
the year ended December 31,
|
||||||||||||||||||||||||||||
(Dollars
in Thousands, restated)
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield /Cost
|
Average
Balance
|
Interest
|
Average
Yield /Cost
|
Average
Balance
|
Interest
|
Average
Yield /Cost
|
||||||||||||||||||||
INTEREST-EARNING
ASSETS
|
||||||||||||||||||||||||||||
Loans
receivable(1)
|
$
|
613,532
|
$
|
41,029
|
6.69
|
%
|
$
|
549,259
|
$
|
33,606
|
6.12
|
%
|
$
|
484,978
|
$
|
30,399
|
6.27
|
%
|
||||||||||
Securites(2)
|
75,917
|
3,604
|
4.75
|
%
|
63,338
|
2,092
|
3.30
|
%
|
29,815
|
623
|
2.09
|
%
|
||||||||||||||||
Other
interest-earning assets(3)
|
34,205
|
1,774
|
5.19
|
%
|
45,632
|
1,556
|
3.41
|
%
|
38,523
|
750
|
1.95
|
%
|
||||||||||||||||
Total
interest-earning assets
|
723,654
|
46,407
|
6.41
|
%
|
658,229
|
37,254
|
5.66
|
%
|
553,316
|
31,772
|
5.74
|
%
|
||||||||||||||||
Non-interest-earning
assets
|
56,600
|
46,658
|
31,541
|
|||||||||||||||||||||||||
Total
assets
|
$
|
780,254
|
$
|
704,887
|
$
|
584,857
|
||||||||||||||||||||||
INTEREST-BEARING
LIABILITIES
|
||||||||||||||||||||||||||||
Savings
deposits
|
$
|
49,104
|
196
|
0.40
|
%
|
$
|
61,069
|
260
|
0.43
|
%
|
$
|
77,333
|
386
|
0.50
|
%
|
|||||||||||||
Interest
on interest-bearing demand
|
58,454
|
1,572
|
2.69
|
%
|
60,774
|
1,307
|
2.15
|
%
|
26,191
|
254
|
0.97
|
%
|
||||||||||||||||
Money
market accounts
|
77,989
|
3,097
|
3.97
|
%
|
53,942
|
1,415
|
2.62
|
%
|
58,293
|
927
|
1.59
|
%
|
||||||||||||||||
Time
deposits
|
312,564
|
13,583
|
4.35
|
%
|
267,725
|
9,186
|
3.43
|
%
|
224,965
|
6,617
|
2.94
|
%
|
||||||||||||||||
Federal
Home Loan Bank advances
|
128,260
|
5,665
|
4.42
|
%
|
119,463
|
4,971
|
4.16
|
%
|
87,640
|
3,460
|
3.95
|
%
|
||||||||||||||||
Securities
sold under agreement to repurchase
|
13,951
|
634
|
4.54
|
%
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
interest-bearing liabilities
|
640,322
|
24,747
|
3.86
|
%
|
562,973
|
17,139
|
3.04
|
%
|
474,422
|
11,644
|
2.45
|
%
|
||||||||||||||||
Non-interest-bearing
liabilities
|
46,318
|
42,744
|
56,083
|
|||||||||||||||||||||||||
Total
liabilities
|
686,640
|
605,717
|
530,505
|
|||||||||||||||||||||||||
Stockholders'
equity
|
93,614
|
99,170
|
54,352
|
|||||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$
|
780,254
|
$
|
704,887
|
$
|
584,857
|
||||||||||||||||||||||
Net
interest income
|
$
|
21,660
|
$
|
20,115
|
$
|
20,128
|
||||||||||||||||||||||
Net
interest spread
|
2.55
|
%
|
2.62
|
%
|
3.29
|
%
|
||||||||||||||||||||||
Net
earning assets
|
$
|
83,332
|
$
|
95,256
|
$
|
78,894
|
||||||||||||||||||||||
Net
interest margin(4)
|
2.99
|
%
|
3.06
|
%
|
3.64
|
%
|
||||||||||||||||||||||
Average
interest-earning assets to average interest-bearing
liabilities
|
113.01
|
%
|
116.92
|
%
|
116.63
|
%
|
(1) |
Calculated
net of deferred loan fees and loss reserve. Nonaccrual loans included
as
loans carrying a zero yield
|
(2) |
Calculated
based on carrying value. Not full tax equivalents, as the numbers
would
not change materially from those presented in the
table.
|
(3) |
Includes
Federal Home Loan Bank stock at cost and term deposits with other
financial institutions.
|
(4) |
Net
interest income divided by average interest-earning
assets.
|
2006
vs. 2005
|
2005
vs. 2004
|
||||||||||||||||||
Increase/(Decrease)
|
Total
|
Increase/(Decrease)
|
Total
|
||||||||||||||||
Due
to
|
Increase
|
Due
to
|
Increase
|
||||||||||||||||
Volume
|
Rate
|
(Decrease)
|
Volume
|
Rate
|
(Decrease)
|
||||||||||||||
(Dollars
in Thousands, restated)
|
|||||||||||||||||||
INTEREST-EARNING
ASSETS
|
|||||||||||||||||||
Loans
receivable
|
$
|
4,136
|
$
|
3,287
|
$
|
7,423
|
$
|
3,932
|
$
|
(726
|
)
|
$
|
3,206
|
||||||
Securites
|
472
|
1,039
|
1,511
|
969
|
500
|
1,469
|
|||||||||||||
Other
interest-earning assets
|
(455
|
)
|
674
|
219
|
159
|
648
|
807
|
||||||||||||
Total
interest-earning assets
|
4,153
|
5,000
|
9,153
|
5,060
|
422
|
5,482
|
|||||||||||||
INTEREST-BEARING
LIABILITIES
|
|||||||||||||||||||
Savings
deposits
|
(48
|
)
|
(17
|
)
|
(65
|
)
|
(74
|
)
|
(51
|
)
|
(125
|
)
|
|||||||
Interest
bearing demand accounts
|
(51
|
)
|
316
|
265
|
548
|
505
|
1,053
|
||||||||||||
Money
market accounts
|
781
|
901
|
1,682
|
(74
|
)
|
561
|
487
|
||||||||||||
Time
deposits
|
1,697
|
2,701
|
4,398
|
1,369
|
1,199
|
2,568
|
|||||||||||||
Federal
Home Loan Bank advances
|
378
|
314
|
692
|
1,316
|
197
|
1,513
|
|||||||||||||
Securities
sold under agreements to repurchase
|
634
|
-
|
634
|
-
|
-
|
-
|
|||||||||||||
Total
interest-bearing liabilities
|
3,391
|
4,215
|
7,606
|
3,085
|
2,411
|
5,496
|
|||||||||||||
Net
interest income
|
$
|
762
|
$
|
785
|
$
|
1,547
|
$
|
1,975
|
$
|
(1,989
|
)
|
$
|
(14
|
)
|
Increase(decrease)
|
|||||||||||||
2006
|
2005
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands, restated)
|
|||||||||||||
Service
charges and fees
|
$
|
5,745
|
$
|
5,351
|
$
|
394
|
7.4
|
%
|
|||||
Net
loss on available for sale securities
|
(163
|
)
|
(80
|
)
|
(83
|
)
|
103.8
|
%
|
|||||
Gain
on sale of real estate mortgages
|
|||||||||||||
held
for sale
|
67
|
121
|
(54
|
)
|
-44.6
|
%
|
|||||||
Commission
income
|
314
|
406
|
(92
|
)
|
-22.7
|
%
|
|||||||
Interchange
fees
|
791
|
752
|
39
|
5.2
|
%
|
||||||||
Bank
owned life insurance earnings
|
840
|
603
|
237
|
39.3
|
%
|
||||||||
Other
|
411
|
784
|
(373
|
)
|
-47.6
|
%
|
|||||||
$
|
8,005
|
$
|
7,937
|
$
|
68
|
0.9
|
%
|
Increase
(decrease)
|
|||||||||||||
2006
|
2005
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
Compensation
& benefits
|
$
|
10,947
|
$
|
9,369
|
$
|
1,578
|
16.8
|
%
|
|||||
Occupancy
and equipment
|
2,228
|
1,738
|
490
|
28.2
|
%
|
||||||||
Data
processing
|
1,483
|
1,348
|
135
|
10.0
|
%
|
||||||||
Advertising
|
847
|
609
|
238
|
39.1
|
%
|
||||||||
Outside
professional services
|
1,994
|
2,286
|
(292
|
)
|
-12.8
|
%
|
|||||||
Interchange
charges
|
491
|
624
|
(133
|
)
|
-21.3
|
%
|
|||||||
Collection
expense and repossessed
asset
losses
|
267
|
341
|
(74
|
)
|
-21.7
|
%
|
|||||||
Telephone
|
500
|
539
|
(39
|
)
|
-7.2
|
%
|
|||||||
Other
|
2,922
|
2,762
|
160
|
5.8
|
%
|
||||||||
$
|
21,679
|
$
|
19,616
|
$
|
2,063
|
10.5
|
%
|
For
the year ended December 31,
|
Increase(decrease)
|
||||||||||||
2005
|
2004
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands, restated)
|
|||||||||||||
Service
charges and fees
|
$
|
5,351
|
$
|
3,777
|
$
|
1,574
|
41.7
|
%
|
|||||
Gain
on sale of real estate mortgages
|
|||||||||||||
held
for sale
|
121
|
186
|
(65
|
)
|
-34.9
|
%
|
|||||||
Gain(loss)
on sale of securities
|
|||||||||||||
available
for sale
|
(80
|
)
|
(39
|
)
|
(41
|
)
|
-105.1
|
%
|
|||||
Gain(loss)
on sale of foreclosed assets
|
40
|
97
|
(57
|
)
|
-58.8
|
%
|
|||||||
Commission
income
|
406
|
301
|
105
|
34.9
|
%
|
||||||||
Interchange
fees
|
752
|
663
|
89
|
13.4
|
%
|
||||||||
Bank
owned life insurance earnings
|
603
|
173
|
430
|
248.6
|
%
|
||||||||
Other
|
744
|
50
|
694
|
1388.0
|
%
|
||||||||
$
|
7,937
|
$
|
5,208
|
$
|
2,729
|
52.4
|
%
|
For
the years ended December 31,
|
Increase(decrease)
|
||||||||||||
2005
|
2004
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Compensation
and benefits
|
$
|
9,368
|
$
|
8,541
|
$
|
827
|
9.7
|
%
|
|||||
Occupancy
and equipment
|
1,738
|
1,406
|
332
|
23.6
|
%
|
||||||||
Data
processing
|
1,348
|
1,088
|
260
|
23.9
|
%
|
||||||||
Advertising
|
609
|
440
|
169
|
38.4
|
%
|
||||||||
Outside
professional services
|
2,286
|
1,797
|
489
|
27.2
|
%
|
||||||||
Interchange
charges
|
624
|
637
|
(13
|
)
|
-2.0
|
%
|
|||||||
Collection
expense and repossessed
|
|||||||||||||
asset
losses
|
341
|
200
|
141
|
70.5
|
%
|
||||||||
Telephone
|
539
|
536
|
3
|
0.6
|
%
|
||||||||
Other
|
2,763
|
2,611
|
152
|
5.8
|
%
|
||||||||
$
|
19,616
|
$
|
17,256
|
$
|
2,360
|
13.7
|
%
|
December
31, 2006
|
||||||||||||||||
Less
Than
1
Year
|
1
Through
3
Years
|
4
Through
5
Years
|
More
Than
5
Years
|
Total
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
FHLB
advances
|
$
|
12,000
|
$
|
32,000
|
$
|
20,000
|
$
|
80,000
|
$
|
144,000
|
||||||
Operating
leases (premises)
|
238
|
92
|
-
|
-
|
330
|
|||||||||||
Borrowings
and operating leases
|
12,238
|
32,092
|
20,000
|
80,000
|
144,330
|
|||||||||||
Undisbursed
portion of loans closed
|
-
|
-
|
-
|
-
|
22,315
|
|||||||||||
Unused
lines of credit
|
-
|
-
|
-
|
-
|
77,025
|
|||||||||||
Total
loan commitments
|
-
|
-
|
-
|
-
|
99,340
|
|||||||||||
Loan
purchase commitment
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Security
purchase commitment
|
29,000
|
-
|
-
|
-
|
29,000
|
|||||||||||
Total
purchase commitments
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
contractual obligations And
loan commitments
|
$
|
41,238
|
$
|
32,092
|
$
|
20,000
|
$
|
80,000
|
$
|
272,670
|
To
Be Well
|
|||||||||||||||||||
Capitalized
Under
|
|||||||||||||||||||
For
Capital
|
Prompt
Corrective
|
||||||||||||||||||
Actual
|
Adequacy
Purposes
|
Action
Provisions
|
|||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
(Dollars
in Millions)
|
|||||||||||||||||||
As
of December 31, 2006
|
|||||||||||||||||||
Total
capital (to risk-weighted assets)
|
$
|
82.2
|
13.9
|
%
|
$
|
47.2
|
8.0
|
%
|
$
|
59.0
|
10.0
|
%
|
|||||||
Tier
1 (core) capital (to risk-weighted assets)
|
$
|
77.5
|
13.9
|
%
|
$
|
23.6
|
4.0
|
%
|
$
|
35.4
|
6.0
|
%
|
|||||||
Tier
1 (core) capital (to adjusted total assets)
|
$
|
77.5
|
9.3
|
%
|
$
|
33.4
|
4.0
|
%
|
$
|
41.7
|
5.0
|
%
|
Economic
Value of Equity and Duration of Assets and Liabilities at December
31,
2006
|
|||||||||||||||||||
Change
in Interest Rate
|
|||||||||||||||||||
Decrease
|
Decrease
|
Decrease
|
Increase
|
Increase
|
Increase
|
||||||||||||||
3%
|
2%
|
1%
|
1%
|
2%
|
3%
|
||||||||||||||
Duration
of assets(1)
|
2.53
|
2.53
|
2.58
|
2.74
|
2.79
|
2.79
|
|||||||||||||
Duration
of liabilities(1)
|
2.52
|
2.52
|
2.52
|
2.41
|
2.41
|
2.41
|
|||||||||||||
Differential
in duration
|
0.01
|
0.01
|
0.06
|
0.33
|
0.38
|
0.38
|
|||||||||||||
Amount
of change in Economic Value of Equity(2)
|
$
|
87,636
|
$
|
175,272
|
$
|
476,404
|
$
|
(2,804,847
|
)
|
$
|
(6,346,360
|
)
|
$
|
(9,519,541
|
)
|
||||
Percentage
change in Economic Value of Equity(2)
|
0.09
|
%
|
0.18
|
%
|
0.50
|
%
|
-2.93
|
%
|
-6.63
|
%
|
-9.94
|
%
|
Economic
Value of Equity and Duration of Assets and Liabilities at December
31,
2005
|
|||||||||||||||||||
Change
in Interest Rate
|
|||||||||||||||||||
Decrease
|
Decrease
|
Decrease
|
Increase
|
Increase
|
Increase
|
||||||||||||||
3%
|
2%
|
1%
|
1%
|
2%
|
3%
|
||||||||||||||
Duration
of assets(1)
|
2.97
|
2.97
|
2.99
|
3.04
|
3.05
|
3.05
|
|||||||||||||
Duration
of liabilities(1)
|
2.85
|
2.85
|
2.85
|
2.48
|
2.48
|
2.63
|
|||||||||||||
Differential
in duration
|
0.12
|
0.12
|
0.14
|
0.56
|
0.57
|
0.42
|
|||||||||||||
Amount
of change in Economic Value of Equity(2)
|
$
|
2,758,445
|
$
|
1,838,963
|
$
|
1,059,985
|
$
|
(4,201,231
|
)
|
$
|
(8,526,667
|
)
|
$
|
(9,433,215
|
)
|
||||
Percentage
change in Economic Value of Equity(2)
|
2.83
|
%
|
1.89
|
%
|
1.09
|
%
|
-4.31
|
%
|
-8.74
|
%
|
-9.67
|
%
|
(1) |
Expressed
as number of years before asset/liability reprices to achieve stated
rate
of interest rate increase
|
(2) |
Represents
the cumulative five year pre-tax impact on the Company's equity due
to
increased or (decreased) net interest
margin
|
Crowe
Chizek and Company LLC
|
2006
|
2005
|
||||||
ASSETS
|
|||||||
Cash
and due from financial institutions
|
$
|
10,571
|
$
|
22,041
|
|||
Short-term
interest bearing deposits
|
30,486
|
15,918
|
|||||
Total
cash and cash equivalents
|
41,057
|
37,959
|
|||||
Other
interest bearing deposits in other financial institutions
|
1,200
|
1,800
|
|||||
Securities
available for sale
|
99,231
|
71,965
|
|||||
Real
estate mortgages held for sale
|
4,365
|
100
|
|||||
Loans,
net of allowance for loan losses of $4,705 in 2006
|
|||||||
and
$4,587 in 2005
|
639,517
|
580,441
|
|||||
Federal
Home Loan Bank stock
|
7,948
|
7,074
|
|||||
Accrued
interest receivable
|
3,499
|
2,722
|
|||||
Land,
premises and equipment, net
|
17,610
|
14,485
|
|||||
Bank
owned life insurance
|
21,366
|
20,526
|
|||||
Other
real estate owned
|
286
|
310
|
|||||
Goodwill
|
2,661
|
2,661
|
|||||
Other
assets
|
4,339
|
4,073
|
|||||
Total
assets
|
$
|
843,079
|
$
|
744,116
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Deposits
|
|||||||
Non-interest-bearing
demand
|
$
|
38,301
|
$
|
38,454
|
|||
Interest-bearing
demand
|
52,895
|
79,739
|
|||||
Savings
and money market
|
158,229
|
100,259
|
|||||
Time
|
323,627
|
297,869
|
|||||
Total
deposits
|
573,052
|
516,321
|
|||||
Securities
sold under agreement to repurchase
|
29,000
|
-
|
|||||
Federal
Home Loan Bank advances
|
144,000
|
129,000
|
|||||
Accrued
expenses and other liabilities
|
5,940
|
5,877
|
|||||
Total
liabilities
|
751,992
|
651,198
|
|||||
Commitments
and contingencies
|
-
|
-
|
|||||
Preferred
stock: $0.01 par value; 2,000,000 shares authorized
|
|||||||
none
issued
|
-
|
-
|
|||||
Common
stock: $0.01 par value; 18,000,000 shares authorized,
|
|||||||
issued
and outstanding of 14,813,469 at December, 31 2006
|
|||||||
and
14,805,969 at December 31, 2005
|
148
|
148
|
|||||
Additional
paid in capital
|
57,708
|
56,876
|
|||||
Unearned
employee stock ownership plan (ESOP) shares of 325,864
|
|||||||
at
December 31, 2006 and 372,416 at December 31, 2005
|
(3,259
|
)
|
(3,724
|
)
|
|||
Retained
earnings
|
52,711
|
49,629
|
|||||
Accumulated
other comprehensive income (loss)
|
(204
|
)
|
(408
|
)
|
|||
Treasury
stock, at cost, 1,029,139 shares at December 31, 2006
|
|||||||
and
664,619 at December 31, 2005
|
(16,017
|
)
|
(9,603
|
)
|
|||
Total
stockholders' equity
|
91,087
|
92,918
|
|||||
Total
liabilities and stockholders' equity
|
$
|
843,079
|
$
|
744,116
|
2006
|
2005
|
2004
|
||||||||
Interest
and dividend income
|
||||||||||
Loans,
including fees
|
$
|
41,029
|
$
|
33,606
|
$
|
30,400
|
||||
Securities
and interest-bearing deposits
|
||||||||||
in
other financial institutions - taxable
|
5,308
|
3,403
|
1,065
|
|||||||
Securities
and interest-bearing deposits
|
||||||||||
in
other financial institutions - tax exempt
|
70
|
173
|
235
|
|||||||
Securities
purchased under agreements to resell
|
-
|
72
|
72
|
|||||||
Total
interest and dividend income
|
46,407
|
37,254
|
31,772
|
|||||||
Interest
expense
|
||||||||||
Deposits
|
18,448
|
12,168
|
8,184
|
|||||||
Federal
Home Loan Bank advances
|
5,665
|
4,971
|
3,460
|
|||||||
Securities
sold under agreements to repurchase
|
634
|
-
|
-
|
|||||||
Total
interest expense
|
24,747
|
17,139
|
11,644
|
|||||||
Net
interest income
|
21,660
|
20,115
|
20,128
|
|||||||
Provision
for loan losses
|
475
|
2,121
|
2,975
|
|||||||
Net
interest income after provision for loan losses
|
21,185
|
17,994
|
17,153
|
|||||||
Noninterest
income
|
||||||||||
Service
charges and fees
|
5,745
|
5,351
|
3,777
|
|||||||
Gain
on sale of real estate mortgages held for sale
|
67
|
121
|
185
|
|||||||
Loss
on sale of securities available for sale
|
(163
|
)
|
(80
|
)
|
(39
|
)
|
||||
Commission
income
|
314
|
406
|
301
|
|||||||
Interchange
fees
|
791
|
752
|
663
|
|||||||
Bank
owned life insurance earnings
|
840
|
603
|
173
|
|||||||
Other
|
411
|
784
|
148
|
|||||||
8,005
|
7,937
|
5,208
|
||||||||
Noninterest
expense
|
||||||||||
Compensation
and benefits
|
10,947
|
9,369
|
8,541
|
|||||||
Occupancy
and equipment
|
2,228
|
1,738
|
1,406
|
|||||||
Data
processing
|
1,483
|
1,348
|
1,088
|
|||||||
Advertising
|
847
|
609
|
440
|
|||||||
Outside
professional services
|
1,994
|
2,286
|
1,797
|
|||||||
Interchange
charges
|
491
|
624
|
637
|
|||||||
Collection
expense and repossessed asset losses
|
267
|
341
|
200
|
|||||||
Telephone
|
500
|
539
|
536
|
|||||||
Other
|
2,922
|
2,762
|
2,611
|
|||||||
21,679
|
19,616
|
17,256
|
||||||||
Income
before income tax expense
|
7,511
|
6,315
|
5,105
|
|||||||
Income
tax expense
|
2,382
|
1,290
|
1,815
|
|||||||
Net
income
|
$
|
5,129
|
$
|
5,025
|
$
|
3,290
|
||||
|
||||||||||
Earnings
per common share:
|
||||||||||
Basic
|
$
|
0.38
|
$
|
0.36
|
$
|
0.33
|
||||
Diluted
|
$
|
0.38
|
$
|
0.36
|
$
|
0.33
|
||||
|
||||||||||
Dividends
declared per common share
|
$
|
0.42
|
$
|
0.26
|
$
|
-
|
ACCUMULATED
|
||||||||||||||||||||||
ADDITIONAL
|
UNEARNED
|
OTHER
|
||||||||||||||||||||
COMMON
|
PAID
IN
|
ESOP
|
RETAINED
|
COMPREHENSIVE
|
TREASURY
|
TOTAL
|
||||||||||||||||
STOCK
|
CAPITAL
|
STOCK
|
EARNINGS
|
INCOME(LOSS)
|
STOCK
|
EQUITY
|
||||||||||||||||
Balance
at January 1, 2004
|
-
|
-
|
-
|
43,222
|
(2
|
)
|
-
|
43,220
|
||||||||||||||
Common
stock issued to Atlantic Coast
|
||||||||||||||||||||||
Mutual
Holding Company, 8,728,500
Shares
|
87
|
(87
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Common
stock issue in initial public offering, net of issuance costs,
5,819,000
shares
|
58
|
56,261
|
(4,655
|
)
|
-
|
-
|
-
|
51,664
|
||||||||||||||
ESOP
shares earned, 46,552 shares
|
-
|
159
|
465
|
-
|
-
|
-
|
624
|
|||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
3,290
|
-
|
-
|
3,290
|
|||||||||||||||
Other
comprehensive income(loss)
|
-
|
-
|
-
|
-
|
(98
|
)
|
-
|
(98
|
)
|
|||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
3,290
|
(98
|
)
|
-
|
3,192
|
||||||||||||||
Balance
at December 31, 2004
|
145
|
56,333
|
(4,190
|
)
|
46,512
|
(100
|
)
|
-
|
98,700
|
|||||||||||||
ESOP
shares earned, 46,552 shares
|
-
|
147
|
466
|
-
|
-
|
-
|
613
|
|||||||||||||||
Management
restricted stock granted
|
3
|
(2
|
)
|
-
|
-
|
-
|
-
|
1
|
||||||||||||||
Management
restricted stock expense, 25,989 shares
|
-
|
289
|
-
|
-
|
-
|
-
|
289
|
|||||||||||||||
Stock
options expense
|
-
|
109
|
-
|
-
|
-
|
-
|
109
|
|||||||||||||||
Dividends
declared ($ .26 per share)
|
-
|
-
|
-
|
(1,908
|
)
|
-
|
-
|
(1,908
|
)
|
|||||||||||||
Treasury
stock purchased at cost
|
-
|
-
|
-
|
-
|
-
|
(9,603
|
)
|
(9,603
|
)
|
|||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
5,025
|
-
|
-
|
5,025
|
|||||||||||||||
Other
comprehensive income (loss)
|
-
|
-
|
-
|
-
|
(308
|
)
|
-
|
(308
|
)
|
|||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
5,025
|
(308
|
)
|
-
|
4,717
|
||||||||||||||
Balance
at December 31, 2005
|
$
|
148
|
$
|
56,876
|
$
|
(3,724
|
)
|
$
|
49,629
|
$
|
(408
|
)
|
$
|
(9,603
|
)
|
$
|
92,918
|
|
|
ADDITIONAL
|
|
UNEARNED
|
|
|
|
ACCUMULATED
OTHER
|
|
|
|
|
|
|||||||||
|
|
COMMON
|
|
PAID
IN
|
|
ESOP
|
|
RETAINED
|
|
COMPREHENSIVE
|
|
TREASURY
|
|
TOTAL
|
|
|||||||
|
|
STOCK
|
|
CAPITAL
|
|
STOCK
|
|
EARNINGS
|
|
INCOME(LOSS)
|
|
STOCK
|
|
EQUITY
|
||||||||
Balance
at January 1, 2006
|
$
|
148
|
$
|
56,876
|
$
|
(3,724
|
)
|
$
|
49,629
|
$
|
(408
|
)
|
$
|
(9,603
|
)
|
$
|
92,918
|
|||||
ESOP
shares earned, 46,552 shares
|
-
|
290
|
465
|
-
|
-
|
-
|
755
|
|||||||||||||||
Stock
options exercised
|
-
|
(13
|
)
|
-
|
-
|
-
|
115
|
102
|
||||||||||||||
Management
restricted stock granted
|
-
|
(348
|
)
|
-
|
-
|
-
|
348
|
-
|
||||||||||||||
Management
restricted stock expense, 78,256
shares
|
-
|
595
|
-
|
-
|
-
|
-
|
595
|
|||||||||||||||
Stock
options expense
|
-
|
308
|
-
|
-
|
-
|
-
|
308
|
|||||||||||||||
Dividends
declared ($ .42 per share)
|
-
|
-
|
-
|
(2,048
|
)
|
-
|
-
|
(2,048
|
)
|
|||||||||||||
Treasury
stock purchased at cost
|
-
|
-
|
-
|
-
|
-
|
(6,877
|
)
|
(6,877
|
)
|
|||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
5,129
|
-
|
-
|
5,129
|
|||||||||||||||
Other
comprehensive income (loss)
|
-
|
-
|
-
|
-
|
204
|
-
|
204
|
|||||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
5,129
|
204
|
-
|
5,333
|
|||||||||||||||
Balance
at December 31, 2006
|
$
|
148
|
$
|
57,708
|
$
|
(3,259
|
)
|
$
|
52,711
|
$
|
(204
|
)
|
$
|
(16,017
|
)
|
$
|
91,087
|
2006
|
2005
|
2004
|
||||||||
Cash
flows from operating activities
|
||||||||||
Net
income
|
$
|
5,129
|
$
|
5,025
|
$
|
3,290
|
||||
Adjustments
to reconcile net income to
|
||||||||||
to
net cash from operating activities:
|
||||||||||
Provision
for loan losses
|
475
|
2,121
|
2,975
|
|||||||
Gain
on sale of real estate mortgages held for sale
|
(67
|
)
|
(121
|
)
|
(185
|
)
|
||||
Loans
originated for sale
|
(37,931
|
)
|
(9,661
|
)
|
(11,486
|
)
|
||||
Proceeds
from loan sales
|
33,733
|
9,762
|
11,896
|
|||||||
(Gain)
loss on sale of other real estate owned
|
1
|
(41
|
)
|
(97
|
)
|
|||||
Loss
on sale of securities
|
||||||||||
available
for sale
|
163
|
80
|
39
|
|||||||
(Gain)
loss on disposal of equipment
|
146
|
(81
|
)
|
-
|
||||||
ESOP
compensation expense
|
755
|
613
|
624
|
|||||||
Share-based
compensation expense
|
903
|
398
|
-
|
|||||||
Net
depreciation and amortization
|
1,890
|
1,977
|
1,465
|
|||||||
Net
change in accrued interest receivable
|
(777
|
)
|
(445
|
)
|
(236
|
)
|
||||
Increase
in cash surrender value of
|
||||||||||
bank
owned life insurance
|
(840
|
)
|
(603
|
)
|
(173
|
)
|
||||
Net
change in other assets
|
(392
|
)
|
(1,920
|
)
|
702
|
|||||
Net
change in accrued expenses
|
||||||||||
and
other liabilities
|
(89
|
)
|
2,422
|
1,071
|
||||||
Net
cash from operating activites
|
3,099
|
9,526
|
9,885
|
|||||||
Cash
flows from investing activities
|
||||||||||
Net
change in securities purchased under
|
||||||||||
agreements
to resell
|
-
|
11,800
|
(11,800
|
)
|
||||||
Proceeds
from maturities and payments
|
||||||||||
of
securites available for sale
|
17,808
|
29,022
|
6,031
|
|||||||
Proceeds
from the sales of securities
|
||||||||||
available
for sale
|
16,657
|
10,130
|
3,014
|
|||||||
Purchase
of securities available for sale
|
(61,642
|
)
|
(58,552
|
)
|
(36,700
|
)
|
||||
Loans
purchased
|
(35,977
|
)
|
(46,161
|
)
|
(6,438
|
)
|
||||
Proceeds
from sales of loans from portfolio
|
-
|
-
|
9,565
|
|||||||
Net
change in loans
|
(24,768
|
)
|
(19,922
|
)
|
(88,070
|
)
|
||||
Expenditures
on premises and equipment
|
(4,478
|
)
|
(5,298
|
)
|
(984
|
)
|
||||
Proceeds
from sales of premises and equipment
|
-
|
360
|
-
|
|||||||
Proceeds
from the sale of other real estate owned
|
612
|
581
|
605
|
|||||||
Purchase
of FHLB stock
|
(874
|
)
|
(1,563
|
)
|
(2,430
|
)
|
||||
Purchase
of bank owned life insurance
|
-
|
(15,000
|
)
|
-
|
||||||
Net
change in other investments
|
600
|
(900
|
)
|
(400
|
)
|
|||||
Net
cash from investing activities
|
(92,062
|
)
|
(95,503
|
)
|
(127,607
|
)
|
2006
|
2005
|
2004
|
||||||||
Cash
flows from financing activities
|
||||||||||
Net
increase in deposits
|
$
|
56,731
|
$
|
80,639
|
$
|
43,426
|
||||
FHLB
advances
|
40,000
|
40,000
|
65,000
|
|||||||
Proceeds
from sale of common stock,
|
||||||||||
net
of issuance costs
|
-
|
-
|
51,665
|
|||||||
Proceeds
from sale of securities
|
||||||||||
under
agreement to repurchase
|
29,000
|
-
|
-
|
|||||||
Repayment
of FHLB advances
|
(25,000
|
)
|
(11,314
|
)
|
(25,657
|
)
|
||||
Treasury
stock repurchased
|
(6,877
|
)
|
(9,603
|
)
|
-
|
|||||
Proceeds
from exercise of stock options,
|
||||||||||
including
tax benefit
|
102
|
-
|
-
|
|||||||
Dividends
paid
|
(1,895
|
)
|
(1,494
|
)
|
-
|
|||||
Net
cash from financing activities
|
92,061
|
98,228
|
134,434
|
|||||||
Net
change in cash and cash equivalents
|
3,098
|
12,251
|
16,712
|
|||||||
Cash
and equivalents beginning of period
|
37,959
|
25,708
|
8,996
|
|||||||
Cash
and equivalents at end of period
|
$
|
41,057
|
$
|
37,959
|
$
|
25,708
|
||||
Supplemental
information:
|
||||||||||
Interest
paid
|
$
|
24,287
|
$
|
16,891
|
$
|
11,790
|
||||
Income
taxes paid
|
3,921
|
980
|
950
|
|||||||
Supplemental
noncash disclosures:
|
||||||||||
Loans
transferred to other real estate
|
$
|
589
|
$
|
544
|
$
|
222
|
||||
Other
real estate exchanged for loans
|
-
|
-
|
448
|
At
December 31,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Restated
Consolidated Balance
|
As
Originally
|
As
|
As
Originally
|
As
|
As
Originally
|
As
|
|||||||||||||
Sheet
Data:
|
Reported
|
Restated
|
Reported
|
Restated
|
Reported
|
Restated
|
|||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Other
assets
|
$
|
63,020
|
$
|
63,274
|
$
|
53,484
|
$
|
53,751
|
$
|
40,896
|
$
|
40,956
|
|||||||
Total
assets
|
$
|
842,825
|
$
|
843,079
|
$
|
743,849
|
$
|
744,116
|
$
|
637,678
|
$
|
637,738
|
|||||||
Accrued
expenses and other liabilities
|
$
|
5,686
|
$
|
5,940
|
$
|
5,611
|
$
|
5,877
|
$
|
2,981
|
$
|
3,041
|
|||||||
Total
liabilities
|
$
|
751,738
|
$
|
751,992
|
$
|
650,932
|
$
|
651,198
|
$
|
538,978
|
$
|
539,038
|
|||||||
Retained
earnings
|
$
|
52,297
|
$
|
52,711
|
$
|
49,193
|
$
|
49,629
|
$
|
46,413
|
$
|
46,512
|
|||||||
Accumulated
other comprehensive income
|
$
|
210
|
$
|
(204
|
)
|
$
|
27
|
$
|
(408
|
)
|
$
|
(1
|
)
|
$
|
(100
|
)
|
|||
Total
stockholders' equity
|
$
|
91,087
|
$
|
91,087
|
$
|
92,917
|
$
|
92,918
|
$
|
98,700
|
$
|
98,700
|
Years
Ended December 31,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Restated
Consolidated Statement
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
|||||||
of
Income Data:
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Total
interest expense
|
$
|
24,550
|
$
|
24,747
|
$
|
17,158
|
$
|
17,139
|
$
|
11,916
|
$
|
11,644
|
|||||||
Net
interest income
|
21,857
|
21,660
|
20,096
|
20,115
|
19,856
|
20,128
|
|||||||||||||
Net
interest income
|
|||||||||||||||||||
after
provision for loan losses
|
21,382
|
21,185
|
17,975
|
17,994
|
16,881
|
17,153
|
|||||||||||||
Noninterest
income
|
7,842
|
8,005
|
7,413
|
7,937
|
5,322
|
5,208
|
|||||||||||||
Income
before income taxes
|
7,545
|
7,511
|
5,772
|
6,315
|
4,947
|
5,105
|
|||||||||||||
Income
tax expense
|
2,393
|
2,382
|
1,083
|
1,290
|
1,755
|
1,815
|
|||||||||||||
Net
Income
|
$
|
5,152
|
$
|
5,129
|
$
|
4,689
|
$
|
5,025
|
$
|
3,192
|
$
|
3,290
|
|||||||
Earnings
per share:
|
|||||||||||||||||||
Basic
|
$
|
0.38
|
$
|
0.38
|
$
|
0.34
|
$
|
0.36
|
$
|
0.32
|
$
|
0.33
|
|||||||
Earnings
per share:
|
|||||||||||||||||||
Diluted
|
$
|
0.38
|
$
|
0.38
|
$
|
0.33
|
$
|
0.36
|
$
|
0.32
|
$
|
0.33
|
March
31, 2006
|
June
30, 2006
|
September
30, 2006
|
|||||||||||||||||
Restated
Consolidated Balance
|
As
Originally
|
As
|
As
Originally
|
As
|
As
Originally
|
As
|
|||||||||||||
Sheet
Data:
|
Reported
|
Restated
|
Reported
|
Restated
|
Reported
|
Restated
|
|||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Other
assets
|
$
|
54,578
|
$
|
54,951
|
$
|
55,417
|
$
|
55,742
|
$
|
61,762
|
$
|
62,019
|
|||||||
Total
assets
|
$
|
770,519
|
$
|
770,892
|
$
|
778,868
|
$
|
779,193
|
$
|
793,130
|
$
|
793,387
|
|||||||
Accrued
expenses and other liabilities
|
$
|
5,368
|
$
|
5,729
|
$
|
4,734
|
$
|
5,052
|
$
|
5,078
|
$
|
5,335
|
|||||||
Total
liabilities
|
$
|
676,481
|
$
|
676,842
|
$
|
683,778
|
$
|
684,096
|
$
|
702,128
|
$
|
702,385
|
|||||||
Retained
earnings
|
$
|
49,842
|
$
|
50,462
|
$
|
50,830
|
$
|
51,368
|
$
|
51,948
|
$
|
52,367
|
|||||||
Accumulated
other comprehensive income
|
$
|
109
|
$
|
(499
|
)
|
$
|
(229
|
)
|
$
|
(760
|
)
|
$
|
43
|
$
|
(376
|
)
|
|||
Total
stockholders' equity
|
$
|
94,038
|
$
|
94,050
|
$
|
95,090
|
$
|
95,097
|
$
|
91,002
|
$
|
91,002
|
|||||||
March
31, 2005
|
June
30, 2005
|
September
30, 2005
|
|||||||||||||||||
Restated
Consolidated Balance
|
As
Originally
|
As
|
As
Originally
|
As
|
As
Originally
|
As
|
|||||||||||||
Sheet
Data:
|
Reported
|
Restated
|
Reported
|
Restated
|
Reported
|
Restated
|
|||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Other
assets
|
$
|
41,380
|
$
|
41,611
|
$
|
41,680
|
$
|
41,785
|
$
|
52,308
|
$
|
52,534
|
|||||||
Total
assets
|
$
|
674,240
|
$
|
674,471
|
$
|
709,299
|
$
|
709,404
|
$
|
733,171
|
$
|
733,397
|
|||||||
Accrued
expenses and other liabilities
|
$
|
3,623
|
$
|
3,853
|
$
|
4,537
|
$
|
4,641
|
$
|
4,532
|
$
|
4,757
|
|||||||
Total
liabilities
|
$
|
574,722
|
$
|
574,952
|
$
|
609,761
|
$
|
609,865
|
$
|
635,679
|
$
|
635,904
|
|||||||
Retained
earnings
|
$
|
46,904
|
$
|
47,282
|
$
|
46,980
|
$
|
47,151
|
$
|
48,518
|
$
|
48,887
|
|||||||
Accumulated
other comprehensive income
|
$
|
173
|
$
|
(204
|
)
|
$
|
(18
|
)
|
$
|
(188
|
)
|
$
|
113
|
$
|
(255
|
)
|
|||
Total
stockholders' equity
|
$
|
99,518
|
$
|
99,519
|
$
|
99,538
|
$
|
99,539
|
$
|
97,492
|
$
|
97,493
|
|||||||
March
31, 2004
|
June
30, 2004
|
September
30, 2004
|
|||||||||||||||||
Restated
Consolidated Balance
|
As
Originally
|
As
|
As
Originally
|
As
|
As
Originally
|
As
|
|||||||||||||
Sheet
Data:
|
Reported
|
Restated
|
Reported
|
Restated
|
Reported
|
Restated
|
|||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Other
assets
|
$
|
23,798
|
$
|
23,623
|
$
|
28,721
|
$
|
28,851
|
$
|
39,824
|
$
|
39,822
|
|||||||
Total
assets
|
$
|
621,518
|
$
|
621,343
|
$
|
579,628
|
$
|
579,758
|
$
|
623,079
|
$
|
623,077
|
|||||||
Accrued
expenses and other liabilities
|
$
|
5,198
|
$
|
5,024
|
$
|
3,258
|
$
|
3,387
|
$
|
4,031
|
$
|
4,028
|
|||||||
Total
liabilities
|
$
|
578,290
|
$
|
578,116
|
$
|
534,609
|
$
|
534,738
|
$
|
577,199
|
$
|
577,196
|
|||||||
Retained
earnings
|
$
|
44,915
|
$
|
44,629
|
$
|
44,915
|
$
|
45,127
|
$
|
45,919
|
$
|
45,916
|
|||||||
Accumulated
other comprehensive income
|
$
|
104
|
$
|
389
|
$
|
104
|
$
|
(107
|
)
|
$
|
(39
|
)
|
$
|
(35
|
)
|
||||
Total
stockholders' equity
|
$
|
43,228
|
$
|
43,227
|
$
|
45,019
|
$
|
45,020
|
$
|
45,880
|
$
|
45,881
|
|||||||
|
|
March
31, 2006
|
|
June
30, 2006
|
|
September
30, 2006
|
|
December
31, 2006
|
|
||||||||||||||||
Selected
Consolidated Statement
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
||||||||
of
Income Data:
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
||||||||
|
|
(Dollars
in Thousands)
|
|||||||||||||||||||||||
Total
interest expense
|
$
|
5,236
|
$
|
5,278
|
$
|
5,679
|
$
|
5,734
|
$
|
6,399
|
$
|
6,448
|
$
|
7,236
|
$
|
7,287
|
|||||||||
Net
interest income
|
5,279
|
5,237
|
5,477
|
5,422
|
5,607
|
5,558
|
5,494
|
5,443
|
|||||||||||||||||
Net
interest income
|
|||||||||||||||||||||||||
after
provision for loan losses
|
5,203
|
5,161
|
5,273
|
5,218
|
5,705
|
5,656
|
5,202
|
5,151
|
|||||||||||||||||
Noninterest
income
|
1,638
|
1,959
|
2,188
|
2,118
|
2,094
|
1,963
|
1,922
|
1,965
|
|||||||||||||||||
Income
before income taxes
|
1,607
|
1,886
|
2,207
|
2,082
|
2,396
|
2,216
|
1,336
|
1,327
|
|||||||||||||||||
Income
tax expense (1)
|
500
|
595
|
714
|
672
|
759
|
698
|
420
|
417
|
|||||||||||||||||
Net
Income
|
$
|
1,107
|
$
|
1,291
|
$
|
1,493
|
$
|
1,410
|
$
|
1,637
|
$
|
1,518
|
$
|
916
|
$
|
910
|
|||||||||
Earnings
per share:
|
|||||||||||||||||||||||||
Basic
|
$
|
0.08
|
$
|
0.10
|
$
|
0.11
|
$
|
0.10
|
$
|
0.12
|
$
|
0.11
|
$
|
0.07
|
$
|
0.07
|
|||||||||
Earnings
per share:
|
|||||||||||||||||||||||||
Diluted
|
$
|
0.08
|
$
|
0.10
|
$
|
0.11
|
$
|
0.10
|
$
|
0.12
|
$
|
0.11
|
$
|
0.07
|
$
|
0.07
|
2005
|
|||||||||||||||||||||||||
March
31, 2005
|
June
30, 2005
|
September
30, 2005
|
December
31, 2005
|
||||||||||||||||||||||
Selected
Consolidated Statement
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
|||||||||
of
Income Data:
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||
Total
interest expense
|
$
|
3,478
|
$
|
3,445
|
$
|
4,122
|
$
|
4,107
|
$
|
4,584
|
$
|
4,588
|
$
|
4,974
|
$
|
4,999
|
|||||||||
Net
interest income
|
4,965
|
4,998
|
5,097
|
5,112
|
4,823
|
4,819
|
5,211
|
5,186
|
|||||||||||||||||
Net
interest income
|
|||||||||||||||||||||||||
after
provision for loan losses
|
4,442
|
4,475
|
4,520
|
4,535
|
4,381
|
4,377
|
4,632
|
4,607
|
|||||||||||||||||
Noninterest
income
|
1,287
|
1,703
|
1,795
|
1,448
|
2,259
|
2,582
|
2,073
|
2,205
|
|||||||||||||||||
Income
before income taxes
|
1,222
|
1,671
|
1,338
|
1,006
|
1,527
|
1,846
|
1,686
|
1,795
|
|||||||||||||||||
Income
tax expense (1)
|
440
|
611
|
436
|
310
|
(387
|
)
|
(266
|
)
|
597
|
638
|
|||||||||||||||
Net
Income
|
$
|
782
|
$
|
1,060
|
$
|
902
|
$
|
696
|
$
|
1,914
|
$
|
2,112
|
$
|
1,089
|
$
|
1,157
|
|||||||||
Earnings
per share:
|
|||||||||||||||||||||||||
Basic
|
$
|
0.06
|
$
|
0.08
|
$
|
0.06
|
$
|
0.05
|
$
|
0.14
|
$
|
0.15
|
$
|
0.08
|
$
|
0.08
|
|||||||||
Earnings
per share:
|
|||||||||||||||||||||||||
Diluted
|
$
|
0.06
|
$
|
0.08
|
$
|
0.06
|
$
|
0.05
|
$
|
0.14
|
$
|
0.15
|
$
|
0.07
|
$
|
0.08
|
2004
|
|||||||||||||||||||||||||
March
31, 2004
|
June
30, 2004
|
September
30, 2004
|
December
31, 2004
|
||||||||||||||||||||||
Selected
Consolidated Statement
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
|||||||||
of
Income Data:
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||
Total
interest expense
|
$
|
2,811
|
$
|
2,752
|
$
|
2,805
|
$
|
2,718
|
$
|
3,085
|
$
|
3,000
|
$
|
3,215
|
$
|
3,174
|
|||||||||
Net
interest income
|
4,729
|
4,788
|
4,865
|
4,952
|
5,010
|
5,095
|
5,251
|
5,292
|
|||||||||||||||||
Net
interest income
|
|||||||||||||||||||||||||
after
provision for loan losses
|
3,185
|
3,244
|
4,756
|
4,843
|
4,336
|
4,421
|
4,603
|
4,644
|
|||||||||||||||||
Noninterest
income
|
1,355
|
835
|
1,332
|
2,046
|
1,308
|
876
|
1,329
|
1,453
|
|||||||||||||||||
Income
before income taxes
|
504
|
43
|
2,119
|
2,920
|
1,585
|
1,238
|
738
|
903
|
|||||||||||||||||
Income
tax expense (1)
|
163
|
(12
|
)
|
765
|
1,069
|
581
|
449
|
245
|
308
|
||||||||||||||||
Net
Income
|
$
|
341
|
$
|
55
|
$
|
1,354
|
$
|
1,851
|
$
|
1,004
|
$
|
789
|
$
|
493
|
$
|
595
|
|||||||||
Earnings
per share:
|
|||||||||||||||||||||||||
Basic
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.03
|
$
|
0.04
|
|||||||||
Earnings
per share:
|
|||||||||||||||||||||||||
Diluted
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.03
|
$
|
0.04
|
At
December 31,
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Restated
Statement of Changes in
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
As
Originally
|
|
As
|
|
||||||
Stockholders'
Equity
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|
Reported
|
|
Restated
|
|||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Balance,
beginning of period
|
$
|
92,917
|
$
|
92,918
|
$
|
98,700
|
$
|
98,700
|
$
|
43,218
|
$
|
43,218
|
|||||||
Increase
attributable to net income
|
$
|
5,152
|
$
|
5,129
|
$
|
4,689
|
$
|
5,025
|
$
|
3,192
|
$
|
3,290
|
|||||||
Increase/(decrease)
attributable to
|
|||||||||||||||||||
changes
in accumulated other
|
|||||||||||||||||||
comprehensive
income
|
$
|
183
|
$
|
205
|
$
|
28
|
$
|
(308
|
)
|
$
|
1
|
$
|
(98
|
)
|
|||||
Balance,
end of period
|
$
|
91,087
|
$
|
91,087
|
$
|
92,917
|
$
|
92,918
|
$
|
98,700
|
$
|
98,700
|
(Dollars
in Thousands)
|
|
|||||||||
|
|
Fair
Value
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
||||
December
31, 2006
|
||||||||||
Government-sponsored
enterprises
|
$
|
16,280
|
$
|
6
|
$
|
(114
|
)
|
|||
State
and municipal
|
1,729
|
-
|
(19
|
)
|
||||||
Mortgage-backed
|
81,222
|
197
|
(401
|
)
|
||||||
$
|
99,231
|
$
|
203
|
$
|
(534
|
)
|
||||
December
31, 2005
|
||||||||||
Government-sponsored
enterprises
|
$
|
32,079
|
-
|
$
|
(263
|
)
|
||||
State
and municipal
|
5,361
|
1
|
(39
|
)
|
||||||
Mortgage-backed
|
34,525
|
31
|
(391
|
)
|
||||||
$
|
71,965
|
$
|
32
|
$
|
(693
|
)
|
2006
|
2005
|
2004
|
||||||||
(Dollars
in Thousands)
|
||||||||||
Proceeds
|
$
|
16,657
|
$
|
10,130
|
$
|
3,014
|
||||
Gross
gains
|
2 |
-
|
8
|
|||||||
Gross
losses
|
(165
|
)
|
(80
|
)
|
(47
|
)
|
2006
|
||||
(Dollars
in Thousands)
|
||||
Due
in one year or less
|
$
|
6,735
|
||
Due
from one to five years
|
5,365
|
|||
Due
from five to ten years
|
909
|
|||
Due
after ten years
|
5,000
|
|||
Mortgage-backed
|
81,222
|
|||
Total
|
$
|
99,231
|
(Dollars
in Thousands)
|
|||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
|||||||||||||||||
Description
of Securities 2006 |
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||
Government-sponsored
|
|||||||||||||||||||
enterprises
|
$
|
6,379
|
$
|
(14
|
)
|
$
|
2,869
|
$
|
(100
|
)
|
$
|
9,248
|
$
|
(114
|
)
|
||||
State
and municipal
|
550
|
(3
|
)
|
1,179
|
(16
|
)
|
1,729
|
(19
|
)
|
||||||||||
Mortgage-backed
|
36,063
|
(192
|
)
|
14,455
|
(209
|
)
|
50,518
|
(401
|
)
|
||||||||||
Total
temporarily impaired
|
$
|
42,992
|
$
|
(209
|
)
|
$
|
18,503
|
$
|
(325
|
)
|
$
|
61,495
|
$
|
(534
|
)
|
||||
2005
|
|||||||||||||||||||
Government-sponsored
|
|||||||||||||||||||
enterprises
|
$
|
19,557
|
$
|
(118
|
)
|
$
|
10,821
|
$
|
(145
|
)
|
$
|
30,378
|
$
|
(263
|
)
|
||||
State
and municipal
|
1,879
|
(11
|
)
|
2,928
|
(28
|
)
|
4,807
|
(39
|
)
|
||||||||||
Mortgage-backed
|
18,283
|
(228
|
)
|
8,525
|
(163
|
)
|
26,808
|
(391
|
)
|
||||||||||
|
|||||||||||||||||||
Total
temporarily impaired
|
$
|
39,719
|
$
|
(357
|
)
|
$
|
22,274
|
$
|
(336
|
)
|
$
|
61,993
|
$
|
(693
|
)
|
As
of December 31,
|
Increase
(decrease)
|
||||||||||||||||||
2006
|
%
of total loans
|
2005
|
%
of total loans
|
Dollars
|
Percentage
|
||||||||||||||
(Dollars
In Thousands)
|
|||||||||||||||||||
Real estate loans: | |||||||||||||||||||
One-to-four
family
|
$
|
334,000
|
52.1
|
%
|
$
|
324,681
|
55.9
|
%
|
$
|
9,319
|
2.9
|
%
|
|||||||
Commercial
|
60,912
|
9.5
|
%
|
59,074
|
10.2
|
%
|
1,838
|
3.1
|
%
|
||||||||||
Other
( Land & Multifamily)
|
34,446
|
5.4
|
%
|
20,302
|
3.5
|
%
|
14,144
|
69.7
|
%
|
||||||||||
Total
real estate loans
|
429,358
|
67.0
|
%
|
404,057
|
69.5
|
%
|
25,301
|
6.3
|
%
|
||||||||||
Real
estate construction loans:
|
|||||||||||||||||||
Construction-one-to-four
family
|
32,467
|
5.1
|
%
|
24,243
|
4.2
|
%
|
8,224
|
33.9
|
%
|
||||||||||
Construction-commercial
|
2,862
|
0.4
|
%
|
2,577
|
0.4
|
%
|
285
|
11.1
|
%
|
||||||||||
Acquisition
& Development
|
2,103
|
0.3
|
%
|
-
|
0.0
|
%
|
2,103
|
-
|
|||||||||||
Total
real estate construction loans
|
37,432
|
5.8
|
%
|
26,820
|
4.6
|
%
|
10,612
|
39.6
|
%
|
||||||||||
Other
loans:
|
|||||||||||||||||||
Home
equity
|
91,062
|
14.2
|
%
|
79,016
|
13.6
|
%
|
12,046
|
15.2
|
%
|
||||||||||
Consumer
|
63,630
|
9.9
|
%
|
62,846
|
10.8
|
%
|
784
|
1.2
|
%
|
||||||||||
Commercial
|
19,044
|
3.0
|
%
|
8,430
|
1.5
|
%
|
10,614
|
125.9
|
%
|
||||||||||
Total
other loans
|
173,736
|
27.1
|
%
|
150,292
|
25.9
|
%
|
23,444
|
15.6
|
%
|
||||||||||
Total
loans
|
640,526
|
100
|
%
|
581,169
|
100
|
%
|
59,357
|
10.2
|
%
|
||||||||||
Allowance
for loan losses
|
(4,705
|
)
|
(4,587
|
)
|
(118
|
)
|
2.6
|
%
|
|||||||||||
Net
deferred loan (fees) costs
|
3,348
|
3,164
|
184
|
5.8
|
%
|
||||||||||||||
Premiums
on purchased loans
|
348
|
695
|
(347
|
)
|
-49.9
|
%
|
|||||||||||||
Loans,
net
|
$
|
639,517
|
$
|
580,441
|
$
|
59,076
|
10.2
|
%
|
Years Ended December 31,
|
||||||||||
(Dollars
in Thousands)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Beginning
balance
|
$
|
4,587
|
$
|
3,956
|
$
|
6,593
|
||||
Provision
for loan losses
|
475
|
2,121
|
2,975
|
|||||||
Loans
charged-off
|
(1,215
|
)
|
(2,326
|
)
|
(6,420
|
)
|
||||
Recoveries
|
858
|
836
|
808
|
|||||||
Ending
balance
|
$
|
4,705
|
$
|
4,587
|
$
|
3,956
|
(Dollars
in Thousands)
|
|||||||
2006
|
2005
|
||||||
Year-end
loans with no allocated allowance for loan losses
|
$
|
798
|
$
|
1,361
|
|||
Year-end
loans with all allocated allowance for loan losses
|
1,206
|
3,122
|
|||||
Total
|
$
|
2,004
|
$
|
4,483
|
|||
Amount
of the allowance for loan losses allocated to impaired
loans
|
$
|
458
|
$
|
994
|
Years
Ended December 31,
(Dollars
in Thousands)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Average
of impaired loans during the period
|
$
|
3,798
|
$
|
5,929
|
$
|
7,018
|
||||
Interest
income recognized during impairment
|
—
|
—
|
—
|
|||||||
Cash-basis
interest income recognized
|
—
|
—
|
11
|
(Dollars
in Thousands)
|
||||
Beginning
balance
|
$
|
3,190
|
||
New
loans
|
140
|
|||
Effect
of changes in related parties
|
172
|
|||
Repayments
|
(490
|
)
|
||
Ending
balance
|
$
|
3,012
|
(Dollars
in Thousands)
|
|||||||
2006
|
2005
|
||||||
Loans
|
$
|
2,836
|
$
|
2,214
|
|||
Securities
available for sale
|
549
|
426
|
|||||
FHLB
stock dividend
|
114
|
82
|
|||||
Total
|
$
|
3,499
|
$
|
2,722
|
(Dollars
in Thousands)
|
|||||||
2006
|
|
2005
|
|||||
Land
|
$
|
7,731
|
$
|
7,703
|
|||
Buildings
and leasehold improvements
|
10,874
|
9,786
|
|||||
Furniture,
fixtures, and equipment
|
8,116
|
7,205
|
|||||
Building
and equipment in process
|
2,051
|
181
|
|||||
28,772
|
24,875
|
||||||
Accumulated
depreciation and amortization
|
(11,162
|
)
|
(10,390
|
)
|
|||
Land,
premises and equipment, net
|
$
|
17,610
|
$
|
14,485
|
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Beginning
of period
|
$
|
2,661
|
$
|
2,661
|
|||
Increases
in goodwill
|
—
|
—
|
|||||
End
of period
|
$
|
2,661
|
$
|
2,661
|
2006
|
2005
|
||||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
||||||||||
Amortized
intangible assets:
|
|||||||||||||
Core
deposit intangibles
|
$
|
611
|
$
|
(384
|
)
|
$
|
611
|
$
|
(303
|
)
|
(Dollars
in Thousands)
|
||||
2007
|
$
|
44
|
||
2008
|
38
|
|||
2009
|
35
|
|||
2010
|
34
|
|||
2011
|
32
|
(Dollars
in Thousands)
|
||||
2007
|
$
|
234,036
|
||
2008
|
47,011
|
|||
2009
|
27,159
|
|||
2010
|
8,767
|
|||
2011
|
6,654
|
|||
$
|
323,627
|
(Dollars
in Thousands)
|
||||||||||
2006
|
|
2005
|
|
2004
|
||||||
Interest
bearing
|
$
|
1,572
|
$
|
1,307
|
$
|
254
|
||||
Savings
& money market
|
3,293
|
1,675
|
1,313
|
|||||||
Time
|
13,583
|
9,186
|
6,617
|
|||||||
$
|
18,448
|
$
|
12,168
|
$
|
8,184
|
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Maturities
March 2007 through December 2016, fixed at rates from 4.37%
to 5.60%, averaging 5.10%
|
$
|
114,000
|
$
|
104,000
|
|||
Maturities
February 2007 through January 2014, variable rate at rates from
3.46% to 5.87%, averaging 4.51%
|
30,000
|
25,000
|
|||||
Total
|
$
|
144,000
|
$
|
129,000
|
(Dollars
in Thousands)
|
||||
2007
|
$
|
12,000
|
||
2008
|
3,000
|
|||
2009
|
5,000
|
|||
2010
|
24,000
|
|||
2011
|
10,000
|
|||
Thereafter
|
90,000
|
|||
$
|
144,000
|
2006
|
||||
(Dollars
in Thousands)
|
||||
Average
daily balance during the year
|
$
|
13,951
|
||
Average
interest rate during the year
|
4.49
|
%
|
||
Maximum
month-end balance during the years
|
$
|
29,000
|
||
Weighted
average interest rate at year-end
|
4.45
|
%
|
2006
|
2005
|
||||||
(Dollars in Thousands, restated)
|
|||||||
Notional
amounts
|
$
|
10,000
|
$
|
15,000
|
|||
Weighted
average pay rates (fixed)
|
3.43
|
%
|
3.42
|
%
|
|||
Weighted
average receive rates (3 month LIBOR)
|
5.38
|
%
|
4.23
|
%
|
|||
Weighted
average maturity
|
7.1
years
|
8.1
years
|
|||||
Fair
Market Value
|
$
|
668
|
$
|
702
|
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Notional
amounts
|
$
|
5,000
|
$
|
10,000
|
|||
Weighted
average pay rates (Prime)
|
8.25
|
%
|
6.79
|
%
|
|||
Weighted
average receive rates (fixed)
|
7.15
|
%
|
7.07
|
%
|
|||
Weighted
average maturity
|
0.7
years
|
1.1
years
|
|||||
Fair
Market Value
|
$
|
(31
|
)
|
$
|
(55
|
)
|
(Dollars
in Thousands)
|
|||||||
2006
|
2005
|
||||||
Allocated
to eligible employees
|
139,656
|
93,104
|
|||||
Unearned
|
325,864
|
372,416
|
|||||
Total
ESOP shares
|
465,520
|
465,520
|
|||||
Fair
value of unearned shares
|
$
|
5,941
|
$
|
5,236
|
|
|
|
|
Wighted-Average
|
|
||
|
|
|
|
Grant-Date
|
|
||
|
|
Shares
|
|
Fair
Value
|
|||
Non-vested
at January 1, 2006
|
258,469
|
$
|
12.31
|
||||
Granted
|
29,856
|
18.13
|
|||||
Vested
|
(51,686
|
)
|
12.31
|
||||
Forfeited
|
(3,194
|
)
|
12.30
|
||||
Non-vested
at December 31, 2006
|
233,445
|
$
|
12.84
|
2006
|
2005
|
||||||
Risk-free
interest rate
|
4.60%
to 5.10
|
%
|
4.07%
to 4.30
|
%
|
|||
Expected
term of stock options (years)
|
6.0
|
6.0
|
|||||
Expected
stock price volatility
|
21.84%
to 23.24
|
%
|
23.79
|
%
|
|||
Expected
dividends
|
3.12%
to 3.64
|
%
|
2.65
|
%
|
|
|
|
|
|
|
Weighted-
|
|
|
|
||||
|
|
|
|
Weighted-
|
|
Average
|
|
Aggregate
|
|
||||
|
|
|
|
Average
|
|
Remaining
|
|
Intrinsic
|
|
||||
|
|
|
|
Exercise
|
|
Contractual
|
|
Value
|
|
||||
Options
|
|
Shares
|
|
Price
|
|
Term
|
|
(in
thousands)
|
|||||
Outstanding
at January 1, 2006
|
534,400
|
$
|
13.72
|
-
|
-
|
||||||||
Granted
|
50,613
|
17.85
|
-
|
-
|
|||||||||
Exercised
|
(7,462
|
)
|
13.73
|
-
|
-
|
||||||||
Forfeited
|
(19,500
|
)
|
13.73
|
-
|
-
|
||||||||
Outstanding
at December 31, 2006
|
558,051
|
$
|
14.09
|
8.7
|
$
|
2,308
|
|||||||
Exercisable
at December 31, 2006
|
106,880
|
$
|
13.72
|
8.6
|
$
|
482
|
2006
|
2005
|
2004
|
||||||||
Intrinsic
value of options exercised
|
$
|
29,000
|
-
|
-
|
||||||
Cash
received from option exercises
|
102,000
|
-
|
-
|
|||||||
Tax
benefit realized from option exercises
|
-
|
-
|
-
|
|||||||
Weighted
average fair value of options granted
|
$
|
3.45
|
$
|
3.15
|
-
|
Years
Ended December 31,
|
|
|||||||||
|
|
(Dollars
in Thousands, restated)
|
||||||||
2006
|
2005
|
2004
|
||||||||
Current
|
$
|
3,082
|
$
|
2,127
|
$
|
771
|
||||
Deferred
|
(700
|
)
|
(837
|
)
|
1,044
|
|||||
Total
|
$
|
2,382
|
$
|
1,290
|
$
|
1,815
|
(Dollars
in Thousands, restated)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Income
taxes at Current
|
||||||||||
Statutory
rate of 34%
|
$
|
2,554
|
$
|
2,147
|
$
|
1,736
|
||||
Increase(decrease)
from
|
||||||||||
State
income tax, net of Federal tax effect
|
(24
|
)
|
110
|
155
|
||||||
Tax-exempt
income
|
(19
|
)
|
(47
|
)
|
(70
|
)
|
||||
Increase
in cash surrender value of BOLI
|
(286
|
)
|
(205
|
)
|
(59
|
)
|
||||
ESOP
share release
|
87
|
50
|
54
|
|||||||
Stock
option expense
|
73
|
26
|
-
|
|||||||
Other,
net
|
(3
|
)
|
(791
|
)
|
(1
|
)
|
||||
Income
tax expense
|
$
|
2,382
|
$
|
1,290
|
$
|
1,815
|
||||
Effective
tax rate
|
31.7
|
%
|
20.4
|
%
|
35.6
|
%
|
December
31,
|
|||||||
(Dollars
in Thousands, restated)
|
|||||||
2006
|
2005
|
||||||
Deferred
tax assets:
|
|||||||
Allowance
for loan losses
|
$
|
1,356
|
$
|
979
|
|||
Depreciation
|
483
|
557
|
|||||
Deferred
compensation arrangements
|
906
|
572
|
|||||
Other
real estate
|
71
|
11
|
|||||
Organizational
costs
|
8
|
16
|
|||||
Net
unrealized losses on securities
|
127
|
252
|
|||||
Interest
income on non-accrual loans
|
13
|
10
|
|||||
Accrued
expenses
|
104
|
88
|
|||||
Deferred
loan fees
|
26
|
-
|
|||||
$
|
3,094
|
$
|
2,485
|
||||
Deferred
tax liability:
|
|||||||
Net
unrealized gain on interest rate swaps
|
(254
|
)
|
(266
|
)
|
|||
Deferred
loan costs
|
(516
|
)
|
(521
|
)
|
|||
Prepaid
expenses
|
(161
|
)
|
(179
|
)
|
|||
Core
deposit intangibles
|
(203
|
)
|
(151
|
)
|
|||
Other
|
(33
|
)
|
(18
|
)
|
|||
(1,167
|
)
|
(1,135
|
)
|
||||
Net
deferred tax asset
|
$
|
1,927
|
$
|
1,350
|
|
|
Actual
(restated)
|
|
For
Capital
Adequacy Purposes
|
|
To
Be Well Capitalized Under Prompt Corrective
Action
|
|
||||||||||||
As
of December 31, 2006
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
Total
capital (to risk weighted assets)
|
$
|
82.2
|
13.9
|
%
|
$
|
47.2
|
8.0
|
%
|
$
|
59.0
|
10.0
|
%
|
|||||||
Tier
1 (core) capital (to risk weighted assets)
|
77.5
|
13.1
|
%
|
23.6
|
4.0
|
%
|
35.4
|
6.0
|
%
|
||||||||||
Tier
1 (core) capital (to adjusted total assets)
|
77.5
|
9.3
|
%
|
33.4
|
4.0
|
%
|
41.7
|
5.0
|
%
|
||||||||||
As
of December 31, 2005
|
|||||||||||||||||||
Total
capital (to risk weighted assets)
|
$
|
77.7
|
15.9
|
%
|
$
|
39.0
|
8.0
|
%
|
$
|
48.7
|
10.0
|
%
|
|||||||
Tier
1 (core) capital (to risk weighted assets)
|
73.3
|
15.0
|
%
|
19.5
|
4.0
|
%
|
29.2
|
6.0
|
%
|
||||||||||
Tier
1 (core) capital (to adjusted total assets)
|
73.3
|
10.0
|
%
|
29.2
|
4.0
|
%
|
36.5
|
5.0
|
%
|
(Dollars
in Thousands, restated)
|
|||||||
2006
|
2005
|
||||||
GAAP
equity
|
$
|
80,110
|
$
|
76,029
|
|||
Intangible
assets
|
(2,888
|
)
|
(2,969
|
)
|
|||
Unrealized
loss on securities available for sale
|
117
|
251
|
|||||
Unrealized
gain on cash flow hedges
|
-
|
-
|
|||||
Minority
interest in includable consolidated
|
|||||||
subsidiaries
including REIT
|
125
|
-
|
|||||
Tier
1 Capital
|
77,464
|
73,311
|
|||||
General
allowance for loan and lease losses
|
4,705
|
4,351
|
|||||
Total
capital
|
$
|
82,169
|
$
|
77,662
|
(Dollars
in Thousands)
|
|||||||
2006
|
2005
|
||||||
Undisbursed
portion of loans closed
|
$
|
22,315
|
$
|
31,499
|
|||
Unused
lines of credit and commitments to fund loans
|
77,025
|
73,344
|
(Dollars
in Thousands, Except Share Information, restated)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Basic
|
||||||||||
Net
income
|
$
|
5,129
|
$
|
5,025
|
$
|
3,290
|
||||
Weighted
average common shares outstanding
|
14,036,595
|
14,548,723
|
10,127,604
|
|||||||
Less:
Average unallocated ESOP shares
|
(372,288
|
)
|
(418,840
|
)
|
(111,801
|
)
|
||||
Average
unvested restricted stock awards
|
(237,283
|
)
|
(130,297
|
)
|
-
|
|||||
Average
Shares
|
13,427,024
|
13,999,586
|
10,015,803
|
|||||||
Basic
earnings per common share
|
$
|
0.38
|
$
|
0.36
|
$
|
0.33
|
||||
Diluted
|
||||||||||
Net
Income
|
$
|
5,129
|
$
|
5,025
|
$
|
3,290
|
||||
Weighted
average common shares outstanding
|
||||||||||
per
common share
|
13,427,024
|
13,999,586
|
10,015,803
|
|||||||
Add:Dilutive
effects of assumed exercise of stock options
|
25,695
|
-
|
-
|
|||||||
Dilutive
effects of full vesting of stock awards
|
105,107
|
20,563
|
-
|
|||||||
Average
shares and dilutive potential common shares
|
13,557,826
|
14,020,149
|
10,015,803
|
|||||||
Diluted
earnings per common share
|
$
|
0.38
|
$
|
0.36
|
$
|
0.33
|
(Dollars
in Thousands, restated)
|
||||||||||
2006
|
|
2005
|
|
2004
|
||||||
Unrealized
holding gains and (losses)
|
||||||||||
on
securities available for sale
|
$
|
493
|
$
|
(559
|
)
|
$
|
(217
|
)
|
||
Less
reclassification adjustments for (gains)
|
||||||||||
losses
recognized in income
|
(163
|
)
|
80
|
38
|
||||||
Net
unrealized gains and (losses)
|
330
|
(479
|
)
|
(179
|
)
|
|||||
Tax
effect
|
(126
|
)
|
183
|
68
|
||||||
Net-of-tax
amount
|
204
|
(296
|
)
|
(111
|
)
|
|||||
Change
in fair value of derivatives used
|
||||||||||
for
cash flow hedges
|
-
|
(20
|
)
|
20
|
||||||
Less
reclassification adjustments for (gains)
|
||||||||||
losses
recognized in income
|
-
|
-
|
-
|
|||||||
Net
unrealized gains and (losses)
|
-
|
(20
|
)
|
20
|
||||||
Tax
effect
|
-
|
8
|
(8
|
)
|
||||||
Net-of-tax
amount
|
-
|
(12
|
)
|
12
|
||||||
Other
comprehensive income (loss)
|
$
|
204
|
$
|
(308
|
)
|
$
|
(99
|
)
|
Years
ended December
31,
|
|||||||||||||
(Dollars
in Thousands, restated)
|
|||||||||||||
2006
|
2005
|
||||||||||||
Carrying
|
|
Estimated
|
|
Carrying
|
|
Estimated
|
|
||||||
|
|
Amount
|
|
Fair
Value
|
|
Amount
|
|
Fair
Value
|
|||||
FINANCIAL
ASSETS
|
|||||||||||||
Cash
and cash equivalents
|
$
|
41,057
|
$
|
41,057
|
$
|
37,959
|
$
|
37,959
|
|||||
Other
interest-bearing deposits
|
|||||||||||||
in
other financial institutions
|
1,200
|
1,200
|
1,800
|
1,800
|
|||||||||
Securities
available for sale
|
99,231
|
99,231
|
71,965
|
71,965
|
|||||||||
Real
estate mortgages held for sale
|
4,365
|
4,365
|
100
|
101
|
|||||||||
Loans,
net
|
639,517
|
615,558
|
580,441
|
562,631
|
|||||||||
Federal
Home Loan Bank stock
|
7,948
|
7,948
|
7,074
|
7,074
|
|||||||||
Accrued
interest receivable
|
3,499
|
3,499
|
2,722
|
2,722
|
|||||||||
Interest
rate swaps
|
668
|
668
|
702
|
702
|
|||||||||
FINANCIAL
LIABILITIES
|
|||||||||||||
Deposits
|
573,052
|
572,165
|
516,321
|
515,295
|
|||||||||
Securities
sold under agreement to repurchase
|
29,000
|
29,000
|
-
|
-
|
|||||||||
Federal
Home Loan Bank advances
|
144,000
|
118,590
|
129,000
|
107,983
|
|||||||||
Accrued
interest payable
|
1,058
|
1,058
|
795
|
795
|
|||||||||
Interest
rate swaps
|
31
|
31
|
55
|
55
|
(Dollars
in Thousands, restated)
|
|||||||
2006
|
2005
|
||||||
Cash
and cash equivalents at subsidiary
|
$
|
327
|
$
|
1,343
|
|||
Other
interest bearing deposits at subsidiary
|
1,200
|
1,800
|
|||||
Securities
available for sale
|
7,522
|
10,283
|
|||||
Investment
in subsidiary
|
80,110
|
76,030
|
|||||
Note
receivable from ESOP
|
3,409
|
3,770
|
|||||
Other
assets
|
2,944
|
629
|
|||||
Total
assets
|
$
|
95,512
|
$
|
93,855
|
|||
Borrowed
funds
|
$
|
3,268
|
$
|
-
|
|||
Accrued
employee benefit costs
|
429
|
302
|
|||||
Other
accrued expenses
|
728
|
635
|
|||||
Total
stockholders'equity
|
91,087
|
92,918
|
|||||
Total
liabilities and stockholders' equity
|
$
|
95,512
|
$
|
93,855
|
(Dollars
in Thousands, restated)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Net
interest income
|
$
|
671
|
$
|
866
|
$
|
123
|
||||
Loss
on sale of securities
|
(43
|
)
|
(80
|
)
|
-
|
|||||
Other
|
23
|
-
|
-
|
|||||||
Equity
in net income of subsidiary
|
5,239
|
5,026
|
3,306
|
|||||||
Total
income
|
5,890
|
5,812
|
3,429
|
|||||||
Total
expense
|
761
|
787
|
139
|
|||||||
Net
income
|
$
|
5,129
|
$
|
5,025
|
$
|
3,290
|
(Dollars
in Thousands, restated)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Cash
flow from operating activities
|
||||||||||
Net
income
|
$
|
5,129
|
$
|
5,025
|
$
|
3,290
|
||||
Adjustments:
|
||||||||||
Loss
on sale of securities
|
43
|
80
|
-
|
|||||||
Net
change in other assets
|
(664
|
)
|
235
|
(766
|
)
|
|||||
Net
change in other liabilities
|
73
|
(241
|
)
|
765
|
||||||
Share-based
compensation expense
|
903
|
398
|
-
|
|||||||
Dividends
received from subsidiary
|
2,195
|
-
|
-
|
|||||||
Equity
in undistributed earnings of subsidiary
|
(5,239
|
)
|
(5,026
|
)
|
(3,306
|
)
|
||||
Net
cash from operating activities
|
2,440
|
471
|
(17
|
)
|
||||||
Cash
flow from investing activities
|
||||||||||
Purchase
of securities available for sale
|
(2,449
|
)
|
(9,000
|
)
|
(20,931
|
)
|
||||
Proceeds
from maturities and repayments of
|
||||||||||
Securities
available for sale
|
2,280
|
9,840
|
-
|
|||||||
Proceeds
from the sale of securities available for sale
|
3,000
|
9,473
|
-
|
|||||||
Purchase
of bank owned life insurance
|
(1,695
|
)
|
-
|
-
|
||||||
Payments
received on ESOP loan
|
362
|
370
|
515
|
|||||||
Dividends
on unallocated ESOP shares
|
(151
|
)
|
-
|
-
|
||||||
Net
change in other interest bearing deposits
|
||||||||||
at
subsidiary
|
600
|
701
|
(2,501
|
)
|
||||||
Capital
contribution to subsidiary
|
-
|
-
|
(28,195
|
)
|
||||||
Net
cash from investing activities
|
1,947
|
11,384
|
(51,112
|
)
|
||||||
Cash
flow from financing activities
|
||||||||||
Proceeds
from sale of common stock, net
|
||||||||||
of
issuance costs
|
-
|
-
|
51,664
|
|||||||
Advances
from Atlantic Coast Bank
|
3,618
|
-
|
-
|
|||||||
Issuance
of restricted shares
|
101
|
-
|
-
|
|||||||
Treasury
stock purchased
|
(6,877
|
)
|
(9,603
|
)
|
-
|
|||||
Repayments
of advances to Atlantic Coast Bank
|
(350
|
)
|
-
|
-
|
||||||
Dividends
paid
|
(1,895
|
)
|
(1,494
|
)
|
-
|
|||||
Net
cash from financing activities
|
(5,403
|
)
|
(11,097
|
)
|
51,664
|
|||||
Net
change in cash and cash equivalents
|
(1,016
|
)
|
758
|
535
|
||||||
Cash
and cash equivalents at beginning of period
|
1,343
|
585
|
50
|
|||||||
Cash
and cash equivalents at end of period
|
$
|
327
|
$
|
1,343
|
$
|
585
|
|
|
(Dollars
in Thousands, restated)
|
|
|||||||||||||
|
|
Interest
|
|
Net
Interest
|
|
Net
|
|
Earnings
per Share
|
|
|||||||
|
|
Income
|
|
Income
|
|
Income
|
|
Basic
|
|
Diluted
|
||||||
2006
|
||||||||||||||||
First
quarter
|
$
|
10,515
|
$
|
5,237
|
$
|
1,291
|
$
|
.10
|
$
|
.10
|
||||||
Second
quarter
|
11,156
|
5,422
|
1,410
|
.10
|
.10
|
|||||||||||
Third
quarter
|
12,006
|
5,558
|
1,518
|
.11
|
.11
|
|||||||||||
Fourth
quarter
|
12,730
|
5,443
|
910
|
(1)
|
.07
|
.07
|
||||||||||
2005
|
||||||||||||||||
First
quarter
|
$
|
8,443
|
$
|
4,998
|
$
|
1,060
|
$
|
.08
|
$
|
.08
|
||||||
Second
quarter
|
9,219
|
5,112
|
696
|
.05
|
.05
|
|||||||||||
Third
quarter
|
9,407
|
4,819
|
2,112
|
(2)
|
.15
|
.15
|
||||||||||
Fourth
quarter
|
10,185
|
5,186
|
1,157
|
.08
|
.08
|
|||||||||||
2004
|
||||||||||||||||
First
quarter
|
$
|
7,540
|
$
|
4,788
|
$
|
55
|
$
|
-
|
$
|
-
|
||||||
Second
quarter
|
7,670
|
4,952
|
1,851
|
.21
|
.21
|
|||||||||||
Third
quarter
|
8,095
|
5,095
|
789
|
.09
|
.09
|
|||||||||||
Fourth
quarter
|
8,466
|
5,292
|
595
|
.04
|
.04
|
(1) |
The
fourth quarter of 2006 was impacted by interest margin compression,
an
increased provision for loan losses, increased compensation expense
and
increased outside consulting
services.
|
(2) |
The
third quarter of 2005 includes the tax benefit of the elimination
of a
tax-related contingent liability of $895 as discussed in Note
13.
|
3.1
|
Charter
of Atlantic Coast Federal Corporation 1
|
|
3.2
|
Bylaws
of Atlantic Coast Federal Corporation 1
|
|
4
|
Form
of Common Stock Certificate of Atlantic Coast Federal Corporation
1
|
|
10.1
|
Employee
Stock Ownership Plan 1
|
|
10.2
|
Employment
Agreement with Robert J. Larison, Jr. 2
|
|
10.3
|
Supplemental
Executive Retirement Agreement with Robert J. Larison, Jr. 1
|
|
10.4
|
Supplemental
Executive Retirement Plan 1
|
|
10.5
|
Director
Retirement Plan 1
|
|
10.6
|
Director
Fee Deferral Plan 1
|
|
10.7
|
Atlantic
Coast Federal Corporation 2005 Stock Option Plan 3
|
|
10.8
|
Atlantic
Coast Federal Corporation 2005 Recognition and Retention Plan 3
|
|
10.9
|
Split
Dollar Life Insurance Agreement with Robert J. Larison, Jr. 4
|
|
10.10
|
Split
Dollar Life Insurance Agreement with Carl W. Insel 4
|
|
10.11
|
Split
Dollar Life Insurance Agreement with Jon C. Parker, Sr. 4
|
|
10.12
|
Supplemental
Executive Retirement Agreement with Carl W. Insel 5
|
|
10.13
|
Supplemental
Executive Retirement Agreement with Jon C. Parker, Sr. 5
|
|
10.14
|
Employment
Agreement with Jon C. Parker, Sr. 6
|
|
21
|
Subsidiaries
of Registrant
|
|
23.1
|
Consent
of Crowe Chizek and Company LLC
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
32
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant
to Section
906 of the Sarbanes-Oxley Act of
2002
|
1
|
Incorporated
by reference to the registrant’s Registration Statement on Form S-1, and
any amendments thereto, originally filed with the Securities and
Exchange
Commission on March 25, 2004 (Registration No.
333-113923).
|
2
|
Incorporated
by reference to the registrant’s Form 8-K-Current Report, originally filed
with the Securities and Exchange Commission on February 8,
2006.
|
3
|
Incorporated
by reference to the registrant’s Registration Statement on Form S-8 filed
with the Securities and Exchange Commission on July 25, 2005 (Registration
No. 333-126861).
|
4
|
Incorporated
by reference to the registrant’s Form 8-K-Current Report, originally filed
with the Securities and Exchange Commission on November 9, 2006.
|
5
|
Incorporated
by reference to the registrant’s Form 8-K/A-Current Report, originally
filed with the Securities and Exchange Commission on January 25,
2007.
|
6
|
Incorporated
by reference to the registrant’s Form 8-K-Current Report, originally filed
with the Securities and Exchange Commission on September 8,
2006.
|
ATLANTIC
COAST FEDERAL CORPORATION
|
||
|
|
|
Date: June 18, 2007 | By: | /s/ Robert J. Larison, Jr. |
Robert J. Larison, Jr. |
||
President,
Chief Executive Officer and
Director
|
By:
/s/ Robert J. Larison, Jr.
|
By:
/s/
Jon C. Parker, Sr.
|
|
Robert
J. Larison, Jr.
President,
Chief Executive Officer and Director
|
Jon
C. Parker, Sr.
Senior
Vice President, Chief Administrative Officer and
Director
|
|
Date:
June 18, 2007
|
Date:
June 18, 2007
|
|
By:
/s/ Thomas F. Beeckler
|
By:
/s/
Frederick D. Franklin, Jr.
|
|
Thomas F. Beeckler Director
|
Frederick
D. Franklin, Jr.
Director
|
|
Date:
June 18, 2007
|
Date:
June 18, 2007
|
|
By:
/s/
Charles E. Martin, Jr.
|
By:
/s/
W. Eric Palmer
|
|
Charles E. Martin, Jr. Director
|
W. Eric Palmer Director
|
|
Date:
June 18, 2007
|
Date:
June 18, 2007
|
|
By:
/s/
Robert J. Smith
|
By:
/s/
Forrest W. Sweat, Jr.
|
|
Robert J. Smith Director
|
Forrest W. Sweat, Jr. Director
|
|
Date:
June 18, 2007
|
Date:
June 18, 2007
|
|
By:
/s/
H. Dennis Woods
|
||
H. Dennis Woods Director
|
||
Date:
June 18, 2007
|