Virginia
|
82-0545425
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
|
Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
|
Non-accelerated
filer ¨ (Do
not check if a smaller reporting company)
|
Smaller
reporting company x
|
PART I
|
FINANCIAL INFORMATION
|
||
Item
1.
|
Financial
Statements (Unaudited)
|
||
Consolidated
Balance Sheets, September 30, 2010 and December 31, 2009
(Audited)
|
Page
2
|
||
Consolidated
Statements of Income, three months ended September 30, 2010 and
2009
|
Page
3
|
||
Consolidated
Statements of Income, nine months ended September 30, 2010 and
2009
|
Page
4
|
||
Consolidated
Statements of Changes in Shareholders' Equity, nine months ended September
30, 2010 and 2009
|
Page
5
|
||
Consolidated
Statements of Cash Flows, nine months ended September 30, 2010 and
2009
|
Page
6
|
||
Notes
to Consolidated Financial Statements (Unaudited)
|
Page
7
|
||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
Page
22
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
Page
38
|
|
Item
4.
|
Controls
and Procedures
|
Page
39
|
|
PART II
|
OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
Page
39
|
|
Item1A.
|
Risk
Factors
|
Page
39
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Page
40
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
Page
40
|
|
Item
4.
|
(Removed
and Reserved)
|
Page
40
|
|
Item
5.
|
Other
Information
|
Page
40
|
|
Item
6.
|
Exhibits
|
Page
41
|
|
Signatures
|
Page
42
|
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 13,012 | $ | 5,965 | ||||
Interest-bearing
deposits in other banks and federal funds sold
|
19,493 | 25,256 | ||||||
Securities
available for sale, at fair value
|
148,203 | 43,095 | ||||||
Restricted
stock
|
4,572 | 4,743 | ||||||
Loans
held for sale, at fair value
|
123,048 | 76,232 | ||||||
Loans
|
478,327 | 486,564 | ||||||
Allowance
for loan losses
|
(9,722 | ) | (9,127 | ) | ||||
Net
loans
|
468,605 | 477,437 | ||||||
Premises
and equipment
|
8,552 | 8,759 | ||||||
Accrued
interest receivable
|
2,653 | 2,409 | ||||||
Other
real estate owned
|
3,276 | 5,111 | ||||||
Other
assets
|
13,424 | 17,872 | ||||||
Total
assets
|
$ | 800,266 | $ | 666,879 | ||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
deposits
|
$ | 87,446 | $ | 69,782 | ||||
Savings
and interest-bearing deposits
|
160,897 | 138,988 | ||||||
Time
deposits
|
358,614 | 257,875 | ||||||
Total
deposits
|
606,957 | 466,645 | ||||||
Other
liabilities
|
||||||||
Short-term
borrowings
|
69,815 | 64,249 | ||||||
Long-term
borrowings
|
37,587 | 46,330 | ||||||
Subordinated
debentures
|
6,186 | 6,186 | ||||||
Other
liabilities and accrued expenses
|
11,638 | 15,691 | ||||||
Total
liabilities
|
$ | 732,183 | $ | 599,101 | ||||
SHAREHOLDERS'
EQUITY
|
||||||||
Common
stock, par value, $0.835; authorized, 60,000,000 shares; issued and
outstanding, 10,459,826 shares at September 30, 2010 and 10,537,428
shares at December 31, 2009
|
$ | 8,734 | $ | 8,799 | ||||
Additional
paid in capital
|
18,207 | 18,552 | ||||||
Retained
earnings
|
45,391 | 40,377 | ||||||
Accumulated
other comprehensive income, net
|
323 | 50 | ||||||
Total
shareholders' equity
|
72,655 | 67,778 | ||||||
Total
liabilities and shareholders' equity
|
$ | 804,838 | $ | 666,879 |
Three Months Ended September 30,
|
||||||||
2010
|
2009
|
|||||||
Interest
and Dividend Income
|
||||||||
Interest
and fees on loans
|
$ | 8,190 | $ | 8,470 | ||||
Interest
on deposits in other banks
|
58 | 34 | ||||||
Interest
and dividends on securities
|
583 | 712 | ||||||
Total
interest and dividend income
|
8,831 | 9,216 | ||||||
Interest
Expense
|
||||||||
Interest
on deposits
|
1,888 | 2,469 | ||||||
Interest
on short-term borrowings
|
155 | 310 | ||||||
Interest
on long-term borrowings
|
372 | 469 | ||||||
Interest
on subordinated debentures
|
57 | 57 | ||||||
Total
interest expense
|
2,472 | 3,305 | ||||||
Net
interest income
|
6,359 | 5,911 | ||||||
Provision
for loan losses
|
575 | 1,387 | ||||||
Net
interest income after provision for loan losses
|
5,784 | 4,524 | ||||||
Noninterest
Income
|
||||||||
Service
fees on deposit accounts
|
164 | 137 | ||||||
Gain
on sale of loans
|
10,457 | 9,928 | ||||||
Mortgage
broker fee income
|
430 | 244 | ||||||
Other
income (loss)
|
(641 | ) | 614 | |||||
Total
noninterest income
|
10,410 | 10,923 | ||||||
Noninterest
Expense
|
||||||||
Salaries
and employee benefits
|
5,979 | 6,010 | ||||||
Occupancy
and equipment
|
613 | 615 | ||||||
Other
operating expenses
|
5,677 | 5,408 | ||||||
Total
noninterest expense
|
12,269 | 12,033 | ||||||
Income
before income taxes
|
3,925 | 3,414 | ||||||
Income
tax expense
|
1,489 | 1,260 | ||||||
NET
INCOME
|
$ | 2,436 | $ | 2,154 | ||||
Earnings
per common share:
|
||||||||
Basic
|
$ | 0.23 | $ | 0.21 | ||||
Diluted
|
$ | 0.23 | $ | 0.21 | ||||
Average
outstanding shares:
|
||||||||
Basic
|
10,474,543 | 10,451,416 | ||||||
Diluted
|
10,495,734 | 10,486,755 |
Nine Months Ended September 30,
|
||||||||
2010
|
2009
|
|||||||
Interest
and Dividend Income
|
||||||||
Interest
and fees on loans
|
$ | 24,039 | $ | 25,918 | ||||
Interest
on deposits in other banks
|
172 | 112 | ||||||
Interest
and dividends on securities
|
1,537 | 2,553 | ||||||
Total
interest and dividend income
|
25,748 | 28,583 | ||||||
Interest
Expense
|
||||||||
Interest
on deposits
|
5,905 | 8,287 | ||||||
Interest
on short-term borrowings
|
615 | 958 | ||||||
Interest
on long-term borrowings
|
1,135 | 1,460 | ||||||
Interest
on subordinated debentures
|
162 | 185 | ||||||
Total
interest expense
|
7,817 | 10,890 | ||||||
Net
interest income
|
17,931 | 17,693 | ||||||
Provision
for loan losses
|
1,321 | 4,816 | ||||||
Net
interest income after provision for loan losses
|
16,610 | 12,877 | ||||||
Noninterest
Income
|
||||||||
Service
fees on deposit accounts
|
490 | 401 | ||||||
Gain
on sale of loans
|
24,095 | 38,267 | ||||||
Mortgage
broker fee income
|
1,162 | 573 | ||||||
Other
income (loss)
|
(2,037 | ) | 4,894 | |||||
Total
noninterest income
|
23,710 | 44,135 | ||||||
Noninterest
Expense
|
||||||||
Salaries
and employee benefits
|
16,595 | 21,444 | ||||||
Occupancy
and equipment
|
1,943 | 1,895 | ||||||
Other
operating expenses
|
13,276 | 21,123 | ||||||
Total
noninterest expense
|
31,814 | 44,462 | ||||||
Income
before income taxes
|
8,506 | 12,550 | ||||||
Income
tax expense
|
3,176 | 4,962 | ||||||
NET
INCOME
|
$ | 5,330 | $ | 7,588 | ||||
Earnings
per common share:
|
||||||||
Basic
|
$ | 0.51 | $ | 0.73 | ||||
Diluted
|
$ | 0.50 | $ | 0.73 | ||||
Average
outstanding shares:
|
||||||||
Basic
|
10,539,924 | 10,354,897 | ||||||
Diluted
|
10,559,122 | 10,400,753 |
Accumulated
|
||||||||||||||||||||
Other
|
||||||||||||||||||||
Additional
|
Compre-
|
|||||||||||||||||||
Common
|
Paid in
|
Retained
|
hensive
|
|||||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
||||||||||||||||
Balance,
December 31, 2009
|
$ | 8,799 | $ | 18,552 | $ | 40,377 | $ | 50 | $ | 67,778 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
- | - | 5,330 | - | 5,330 | |||||||||||||||
Other
comprehensive income, unrealized holding gains arising during the period
(net of tax, $141)
|
- | - | - | 273 | 273 | |||||||||||||||
Total
comprehensive income
|
5,603 | |||||||||||||||||||
Stock
option exercises (15,000 shares)
|
13 | 39 | - | - | 52 | |||||||||||||||
Dividend
reinvestment plan (74,721 shares)
|
62 | 355 | - | - | 417 | |||||||||||||||
Repurchased
under share repurchase program (167,323 shares)
|
(140 | ) | (875 | ) | - | - | (1,015 | ) | ||||||||||||
Cash
dividend
|
- | - | (316 | ) | - | (316 | ) | |||||||||||||
Stock-based
compensation expense recognized in earnings
|
- | 136 | - | - | 136 | |||||||||||||||
|
||||||||||||||||||||
Balance,
September 30, 2010
|
$ | 8,734 | $ | 18,207 | $ | 45,391 | $ | 323 | $ | 72,655 | ||||||||||
Balance,
December 31, 2008
|
$ | 8,551 | $ | 17,410 | $ | 31,157 | $ | 827 | $ | 57,945 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
- | - | 7,588 | - | 7,588 | |||||||||||||||
Other
comprehensive loss, unrealized holding losses arising during the period
(net of tax, $179)
|
- | - | - | (347 | ) | (347 | ) | |||||||||||||
Total
comprehensive income
|
7,241 | |||||||||||||||||||
Stock
option exercises (163,452 shares)
|
136 | 415 | - | - | 551 | |||||||||||||||
Dividend
reinvestment plan (103,938 shares)
|
87 | 440 | - | - | 527 | |||||||||||||||
Repurchased
under share repurchase program (25,130 shares)
|
(21 | ) | (94 | ) | - | - | (115 | ) | ||||||||||||
Cash
dividend
|
- | - | (310 | ) | - | (310 | ) | |||||||||||||
Stock-based
compensation expense recognized in earnings
|
- | 130 | - | - | 130 | |||||||||||||||
Balance,
September 30, 2009
|
$ | 8,753 | $ | 18,301 | $ | 38,435 | $ | 480 | $ | 65,969 |
Nine Months Ended
September 30,
|
||||||||
2010
|
2009
|
|||||||
Cash
Flows from Operating Activities
|
||||||||
Net
income
|
$ | 5,330 | $ | 7,588 | ||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Provision
for loan losses
|
1,321 | 4,816 | ||||||
Provision
for losses on mortgage loans sold
|
2,400 | 3,349 | ||||||
Net
gains/losses on sales and write-down of other real estate
owned
|
1,315 | 883 | ||||||
Gain
on sale of securities
|
(186 | ) | (984 | ) | ||||
Deferred
tax benefit
|
(79 | ) | (1,008 | ) | ||||
Stock-based
compensation
|
136 | 130 | ||||||
(Decrease)
increase in valuation allowance on derivatives
|
(680 | ) | 176 | |||||
Amortization
of premiums on securities
|
105 | 38 | ||||||
Depreciation
and amortization
|
336 | 443 | ||||||
Loss
on disposal of assets
|
6 | 2 | ||||||
Changes
in assets and liabilities:
|
||||||||
(Decrease)
increase in valuation of loans held for sale carried at fair
value
|
(2,822 | ) | 1,708 | |||||
(Increase)
decrease in loans held for sale
|
(43,994 | ) | 22,204 | |||||
Decrease
in other assets
|
4,711 | 1,290 | ||||||
Decrease
in other liabilities
|
(6,356 | ) | (4,140 | ) | ||||
Net
cash (used in) provided by operating activities
|
(38,457 | ) | 36,495 | |||||
Cash
Flows from Investing Activities
|
||||||||
Proceeds
from maturities and calls of securities available for sale
|
90,222 | 43,705 | ||||||
Proceeds
from sale of securities
|
20,186 | 5,023 | ||||||
Purchases
of securities available for sale
|
(214,849 | ) | (30,766 | ) | ||||
Net
increase (decrease) in loans
|
4,226 | (7,689 | ) | |||||
Proceeds
from sale of equipment
|
- | 23 | ||||||
Proceeds
from sales of other real estate owned
|
3,805 | 350 | ||||||
Purchases
of premises and equipment
|
(122 | ) | (37 | ) | ||||
Net
cash (used in) provided by investing activities
|
(96,532 | ) | 10,609 | |||||
Cash
Flows from Financing Activities
|
||||||||
Net
increase in demand, interest-bearing demand and savings
deposits
|
39,573 | 42,021 | ||||||
Net
increase (decrease) in time deposits
|
100,740 | (14,679 | ) | |||||
Increase
(decrease) in securities sold under agreement to
repurchase
|
10,129 | (13,080 | ) | |||||
Net
decrease in other short-term borrowings
|
(4,564 | ) | (34,809 | ) | ||||
Net
(decrease) increase in long-term borrowings
|
(8,743 | ) | 6,193 | |||||
Proceeds
from issuance of common stock
|
469 | 1,078 | ||||||
Repurchase
of common stock
|
(1,015 | ) | (116 | ) | ||||
Dividends
paid
|
(316 | ) | (310 | ) | ||||
Net
cash provided by (used in) financing activities
|
136,273 | (13,702 | ) | |||||
Increase
in cash and cash equivalents
|
1,284 | 33,402 | ||||||
Cash
and Cash Equivalents
|
||||||||
Beginning
|
31,221 | 22,482 | ||||||
Ending
|
$ | 32,505 | $ | 55,884 | ||||
Supplemental
Disclosures of Cash Flow Information
|
||||||||
Cash
payments for interest
|
$ | 7,796 | $ | 10,714 | ||||
Cash
payments for income taxes
|
$ | 2,822 | $ | 7,112 | ||||
Supplemental
Disclosures of Noncash Investing Activities
|
||||||||
Unrealized
gain (loss) on securities available for sale
|
$ | 414 | $ | (526 | ) | |||
Transfers
of loans held for investment to other real estate owned
|
$ | 3,285 | $ | 441 |
Nine Months Ended
|
||||
September 30, 2010
|
||||
Expected
life of options granted in years
|
2.90 | |||
Risk-free
interest rate
|
1.39 | % | ||
Expected
volatility of stock
|
48 | % | ||
Annual
expected dividend yield
|
1 | % | ||
Fair
value of granted options
|
$ | 214,552 | ||
Non-vested
options
|
200,950 |
Weighted Avg.
|
||||||||||||||||
Remaining
|
||||||||||||||||
Number of
|
Weighted Avg.
|
Contractual Term
|
Aggregate Intrinsic
|
|||||||||||||
Options
|
Exercise Price
|
in Years
|
Value
|
|||||||||||||
Outstanding
at beginning of year
|
439,079 | $ | 6.44 | 1.56 | $ | 222,770 | ||||||||||
Granted
|
103,500 | $ | 5.97 | 2.90 | $ | - | ||||||||||
Exercised
|
(15,000 | ) | $ | 3.45 | - | $ | - | |||||||||
Lapsed
or canceled
|
(107,220 | ) | $ | 8.24 | 0.26 | $ | - | |||||||||
Outstanding
at September 30, 2010
|
420,359 | $ | 5.97 | 1.58 | $ | 195,371 | ||||||||||
Exercisable
at September 30, 2010
|
219,409 | $ | 6.81 | 0.88 | $ | 50 |
Nine Months Ended
|
||||
September 30, 2009
|
||||
Expected
life of options granted in years
|
2.84 | |||
Risk-free
interest rate
|
1.09 | % | ||
Expected
volatility of stock
|
47 | % | ||
Annual
expected dividend yield
|
1 | % | ||
Fair
value of granted options
|
$ | 182,921 | ||
Non-vested
options
|
181,675 |
Weighted Avg.
|
||||||||||||||||
Remaining
|
||||||||||||||||
Number of
|
Weighted Avg.
|
Contractual Term
|
Aggregate Intrinsic
|
|||||||||||||
Options
|
Exercise Price
|
in Years
|
Value
|
|||||||||||||
Outstanding
at beginning of year
|
589,617 | $ | 5.96 | 1.57 | $ | 284,885 | ||||||||||
Granted
|
105,750 | $ | 4.06 | 2.84 | $ | - | ||||||||||
Exercised
|
(163,452 | ) | $ | 3.37 | 0.06 | $ | - | |||||||||
Lapsed
or canceled
|
(53,836 | ) | $ | 6.85 | 0.74 | $ | - | |||||||||
Outstanding
at September 30, 2009
|
478,079 | $ | 6.32 | 1.67 | $ | 329,279 | ||||||||||
Exercisable
at September 30, 2009
|
296,404 | $ | 7.10 | 1.22 | $ | 102,233 |
September 30, 2010
|
||||||||||||||||
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Estimated
Fair Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S.
Government agencies
|
$ | 145,036 | $ | 526 | $ | (60 | ) | $ | 145,502 | |||||||
Mortgage
backed securities
|
706 | 9 | - | 715 | ||||||||||||
Municipals
- taxable
|
470 | 6 | - | 476 | ||||||||||||
CRA
mutual fund
|
1,500 | 10 | - | 1,510 | ||||||||||||
$ | 147,712 | $ | 551 | $ | (60 | ) | $ | 148,203 |
December 31, 2009
|
||||||||||||||||
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Estimated
Fair Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S.
Government agencies
|
$ | 40,022 | $ | 144 | $ | (12 | ) | $ | 40,154 | |||||||
Mortgage
backed securities
|
808 | - | (65 | ) | 743 | |||||||||||
Municipals
- taxable
|
690 | 9 | - | 699 | ||||||||||||
CRA
mutual fund
|
1,500 | - | (1 | ) | 1,499 | |||||||||||
$ | 43,020 | $ | 153 | $ | (78 | ) | $ | 43,095 |
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
U.S.
Government agencies
|
||||||||||||||||
Due
in one year or less
|
$ | 10,027 | $ | 10,068 | $ | 5,125 | $ | 5,145 | ||||||||
Due
after one through five years
|
45,080 | 45,234 | 15,000 | 15,023 | ||||||||||||
Due
after five through ten years
|
74,949 | 75,141 | 19,896 | 19,986 | ||||||||||||
Due
after ten through fifteen years
|
14,980 | 15,059 | - | - | ||||||||||||
Municipals
- taxable
|
||||||||||||||||
Due
after one through five years
|
470 | 476 | 690 | 699 | ||||||||||||
Mortgage
backed securities
|
||||||||||||||||
Due
in one year or less
|
- | - | 33 | 33 | ||||||||||||
Due
after fifteen years
|
706 | 715 | 776 | 710 | ||||||||||||
CRA
Mutual Fund
|
1,500 | 1,510 | 1,500 | 1,499 | ||||||||||||
Total
|
$ | 147,712 | $ | 148,203 | $ | 43,020 | $ | 43,095 |
Securities in a loss
|
Securities in a loss
|
|||||||||||||||||||||||
Position for less than
|
Position for 12 Months
|
|||||||||||||||||||||||
12 Months
|
or Longer
|
Total
|
||||||||||||||||||||||
September 30, 2010
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Securities
available for sale:
|
(In
Thousands)
|
|||||||||||||||||||||||
U.S.
Government agencies
|
$ | 4,926 | $ | (60 | ) | $ | - | $ | - | $ | 4,926 | $ | (60 | ) | ||||||||||
Total
|
$ | 4,926 | $ | (60 | ) | $ | - | $ | - | $ | 4,926 | $ | (60 | ) |
Securities in a loss
|
Securities in a loss
|
|||||||||||||||||||||||
Position for less than
|
Position for 12 Months
|
|||||||||||||||||||||||
12 Months
|
or Longer
|
Total
|
||||||||||||||||||||||
December 31, 2009
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
Securities
available for sale:
|
(In Thousands)
|
|||||||||||||||||||||||
Mortgage
backed securities
|
$ | - | $ | - | $ | 710 | $ | (65 | ) | $ | 710 | $ | (65 | ) | ||||||||||
U.S.
Government agencies
|
9,988 | (12 | ) | - | - | 9,988 | (12 | ) | ||||||||||||||||
CRA
Mutual fund
|
- | - | 1,499 | (1 | ) | 1,499 | (1 | ) | ||||||||||||||||
Total
|
$ | 9,988 | $ | (12 | ) | $ | 2,209 | $ | (66 | ) | $ | 12,197 | $ | (78 | ) |
Composition of Loan Portfolio
|
||||||||||||||||
( In Thousands)
|
||||||||||||||||
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Amount
|
Percentage of
Total
|
Amount
|
Percentage of
Total
|
|||||||||||||
Commercial
real estate
|
$ | 223,574 | 46.74 | % | $ | 220,301 | 45.28 | % | ||||||||
Residential
real estate
|
137,745 | 28.80 | 150,792 | 30.99 | ||||||||||||
Commercial
|
78,556 | 16.42 | 72,628 | 14.93 | ||||||||||||
Real
estate construction
|
37,066 | 7.75 | 41,508 | 8.53 | ||||||||||||
Consumer
and other
|
1,386 | 0.29 | 1,335 | 0.27 | ||||||||||||
Total
loans
|
$ | 478,327 | 100.00 | % | $ | 486,564 | 100.00 | % | ||||||||
Less
allowance for loan losses
|
9,722 | 9,127 | ||||||||||||||
Net loans | $ | 468,605 | $ | 477,437 |
2010
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In Thousands)
|
Banking
|
Banking
|
Other
|
Elimination
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
$ | 8,497 | $ | 840 | $ | 3 | $ | (509 | ) | $ | 8,831 | |||||||||
Gain
on sale of loans
|
185 | 10,272 | - | - | 10,457 | |||||||||||||||
Other
revenues
|
935 | (847 | ) | 280 | (415 | ) | (47 | ) | ||||||||||||
Total
revenues
|
9,617 | 10,265 | 283 | (924 | ) | 19,241 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
2,354 | 461 | 167 | (510 | ) | 2,472 | ||||||||||||||
Salaries
and employee benefits
|
2,143 | 3,735 | 101 | - | 5,979 | |||||||||||||||
Other
|
2,692 | 4,129 | 458 | (414 | ) | 6,865 | ||||||||||||||
Total
operating expenses
|
7,189 | 8,325 | 726 | (924 | ) | 15,316 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 2,428 | $ | 1,940 | $ | (443 | ) | $ | - | $ | 3,925 | |||||||||
Total
assets
|
$ | 763,756 | $ | 127,443 | $ | 45,982 | $ | (132,343 | ) | $ | 804,838 |
2009
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In Thousands)
|
Banking
|
Banking
|
Other
|
Elimination
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
$ | 8,853 | $ | 719 | $ | 10 | $ | (366 | ) | $ | 9,216 | |||||||||
Gain
on sale of loans
|
401 | 9,527 | - | - | 9,928 | |||||||||||||||
Other
revenues
|
567 | 551 | 291 | (414 | ) | 995 | ||||||||||||||
Total
revenues
|
9,821 | 10,797 | 301 | (780 | ) | 20,139 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
3,217 | 287 | 168 | (367 | ) | 3,305 | ||||||||||||||
Salaries
and employee benefits
|
1,967 | 4,043 | - | - | 6,010 | |||||||||||||||
Other
|
3,241 | 4,136 | 446 | (413 | ) | 7,410 | ||||||||||||||
Total
operating expenses
|
8,425 | 8,466 | 614 | (780 | ) | 16,725 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 1,396 | $ | 2,331 | $ | (313 | ) | $ | - | $ | 3,414 | |||||||||
Total
assets
|
$ | 662,073 | $ | 63,322 | $ | 46,405 | $ | (76,597 | ) | $ | 695,203 |
2010
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In Thousands)
|
Banking
|
Banking
|
Other
|
Eliminations
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
24,977 | $ | 1,801 | $ | 25 | $ | (1,055 | ) | $ | 25,748 | ||||||||||
Gain
on sale of loans
|
269 | 23,826 | - | - | 24,095 | |||||||||||||||
Other
revenues
|
2,123 | (2,121 | ) | 866 | (1,255 | ) | (387 | ) | ||||||||||||
Total
revenues
|
27,369 | 23,506 | 891 | (2,310 | ) | 49,456 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
7,506 | 880 | 487 | (1,056 | ) | 7,817 | ||||||||||||||
Salaries
and employee benefits
|
6,512 | 9,866 | 217 | - | 16,595 | |||||||||||||||
Other
|
6,877 | 9,469 | 1,448 | (1,254 | ) | 16,540 | ||||||||||||||
Total
operating expenses
|
20,895 | 20,215 | 2,152 | (2,310 | ) | 40,952 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 6,474 | $ | 3,291 | $ | (1,261 | ) | $ | - | $ | 8,504 | |||||||||
Total
assets
|
$ | 763,756 | $ | 127,443 | $ | 45,982 | $ | (132,343 | ) | $ | 804,838 |
2009
|
Commercial
|
Mortgage
|
Consolidated
|
|||||||||||||||||
(In
Thousands)
|
Banking
|
Banking
|
Other
|
Eliminations
|
Totals
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
$ | 27,281 | $ | 2,649 | $ | 29 | $ | (1,376 | ) | $ | 28,583 | |||||||||
Gain
on sale of loans
|
401 | 37,866 | - | - | 38,267 | |||||||||||||||
Other
revenues
|
2,183 | 4,037 | 887 | (1,239 | ) | 5,868 | ||||||||||||||
Total
revenues
|
29,865 | 44,552 | 916 | (2,615 | ) | 72,718 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Interest
expense
|
10,580 | 1,169 | 518 | (1,377 | ) | 10,890 | ||||||||||||||
Salaries
and employee benefits
|
5,781 | 15,663 | - | - | 21,444 | |||||||||||||||
Other
|
10,526 | 17,144 | 1,402 | (1,238 | ) | 27,834 | ||||||||||||||
Total
operating expenses
|
26,887 | 33,976 | 1,920 | (2,615 | ) | 60,168 | ||||||||||||||
Income
(loss) before income taxes
|
$ | 2,978 | $ | 10,576 | $ | (1,004 | ) | $ | - | $ | 12,550 | |||||||||
Total
assets
|
$ | 662,073 | $ | 63,322 | $ | 46,405 | $ | (76,597 | ) | $ | 695,203 |
Three Months
|
Three Months
|
|||||||
Ended
|
Ended
|
|||||||
September 30, 2010
|
September 30, 2009
|
|||||||
(In Thousands, Except for Share Data)
|
||||||||
BASIC
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 2,436 | $ | 2,154 | ||||
Weighted
average shares outstanding
|
10,474,543 | 10,451,416 | ||||||
Basic
earnings per share
|
$ | 0.23 | $ | 0.21 | ||||
DILUTED
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 2,436 | $ | 2,154 | ||||
Weighted
average shares outstanding
|
10,474,543 | 10,451,416 | ||||||
Dilutive
stock options
|
21,191 | 35,339 | ||||||
Weighted
average diluted shares outstanding
|
10,495,734 | 10,486,755 | ||||||
Diluted
earnings per share
|
$ | 0.23 | $ | 0.21 |
Nine
Months
|
Nine
Months
|
|||||||
Ended
|
Ended
|
|||||||
September
30, 2010
|
September
30, 2009
|
|||||||
(In
Thousands, Except for Share Data)
|
||||||||
BASIC
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 5,330 | $ | 7,588 | ||||
Weighted
average shares outstanding
|
10,539,924 | 10,354,897 | ||||||
Basic
earnings per share
|
$ | 0.51 | $ | 0.73 | ||||
DILUTED
EARNINGS PER SHARE:
|
||||||||
Net
income
|
$ | 5,330 | $ | 7,588 | ||||
Weighted
average shares outstanding
|
10,539,924 | 10,354,897 | ||||||
Dilutive
stock options
|
19,198 | 45,856 | ||||||
Weighted
average diluted shares outstanding
|
10,559,122 | 10,400,753 | ||||||
Diluted
earnings per share
|
$ | 0.50 | $ | 0.73 |
Fair Value Measurement
|
||||||||||||||||
at September 30, 2010 Using
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||
Description
|
Carrying
Value
|
Quoted
Prices in
Active
Markets for
Identical
Assets (Level
1)
|
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||||||
Financial
Assets-Recurring
|
||||||||||||||||
Available
for sale investment securities (1)
|
$ | 148,203 | $ | - | $ | 148,203 | $ | - | ||||||||
Residential
loans held for sale
|
123,048 | - | 123,048 | - | ||||||||||||
Derivative
assets
|
1,061 | - | - | 1,061 | ||||||||||||
Financial
Liabilities-Recurring
|
||||||||||||||||
Derivative
liabilities
|
216 | - | - | 216 | ||||||||||||
Financial
Assets-Non-Recurring
|
||||||||||||||||
Impaired
loans (2)
|
6,952 | - | - | 6,952 | ||||||||||||
Other
real estate owned (3)
|
3,276 | - | 3,276 | - |
(1)
|
Excludes
restricted stock.
|
(2)
|
Represents
the carrying value of loans for which adjustments are based on the
appraised value of the collateral.
|
(3)
|
Represents
appraised value and realtor comparables less estimated selling
expenses.
|
Fair Value Measurement
|
||||||||||||||||
at December 31, 2009 Using
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||
Description
|
Carrying
Value
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level
1)
|
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||||||
Financial
Assets-Recurring
|
||||||||||||||||
Available
for sale investment securities (1)
|
$ | 43,095 | $ | 43,095 | $ | - | $ | - | ||||||||
Residential
loans held for sale
|
76,232 | - | 76,232 | - | ||||||||||||
Derivative
assets
|
492 | - | - | 492 | ||||||||||||
Financial
Liabilities-Recurring
|
||||||||||||||||
Derivative
liabilities
|
353 | - | - | 353 | ||||||||||||
Financial
Assets-Non-Recurring
|
||||||||||||||||
Impaired
loans (2)
|
7,032 | - | - | 7,032 | ||||||||||||
Other
real estate owned (3)
|
5,111 | - | 5,111 | - |
(1)
|
Excludes
restricted stock.
|
(2)
|
Represents
the carrying value of loans for which adjustments are based on the
appraised value of the collateral.
|
(3)
|
Represents
appraised value and realtor comparables less estimated selling
expenses.
|
Net Derivatives
|
||||
(In Thousands)
|
||||
Balance
June 30, 2010
|
$ | 222 | ||
Realized
and unrealized gains (losses) included in earnings
|
623 | |||
Unrealized
gains (losses) included in other comprehensive income
|
- | |||
Purchases,
Settlements, paydowns, and maturities
|
- | |||
Transfer
into Level 3
|
- | |||
Balance
Septembet 30, 2010
|
$ | 845 |
Net Derivatives
|
||||
(In Thousands)
|
||||
Balance
December 31, 2009
|
$ | 165 | ||
Realized
and unrealized gains (losses) included in earnings
|
680 | |||
Unrealized
gains (losses) included in other comprehensive income
|
- | |||
Purchases,
Settlements, paydowns, and maturities
|
- | |||
Transfer
into Level 3
|
- | |||
Balance
September 30, 2010
|
$ | 845 |
(In Thousands)
|
Aggregate
Fair Value
|
Difference
|
Contractual
Principal
|
|||||||||
Residential
mortgage loans held for sale
|
$ | 123,048 | $ | 4,448 | $ | 118,600 |
September
30, 2010
|
December
31, 2009
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(In Thousands) | ||||||||||||||||
Financial
assets:
|
|
|||||||||||||||
Cash
and short-term investments
|
$ | 32,505 | $ | 32,505 | $ | 31,221 | $ | 31,221 | ||||||||
Securities
available for sale
|
148,203 | 148,203 | 43,096 | 43,096 | ||||||||||||
Restricted
stock
|
4,572 | 4,572 | 4,743 | 4,743 | ||||||||||||
Loans
held for sale
|
123,048 | 123,048 | 76,232 | 76,232 | ||||||||||||
Loans,
net of allowance
|
468,607 | 472,208 | 477,437 | 475,865 | ||||||||||||
Derivatives
|
1,367 | 1,367 | 492 | 492 | ||||||||||||
Total
financial assets
|
$ | 778,302 | $ | 781,903 | $ | 633,221 | $ | 631,649 | ||||||||
Financial
liabilities:
|
||||||||||||||||
Deposits
|
$ | 606,957 | $ | 606,222 | $ | 466,645 | $ | 466,668 | ||||||||
Short-term
borrowings
|
69,813 | 70,523 | 64,249 | 64,258 | ||||||||||||
Long-term
borrowings
|
37,587 | 38,461 | 46,330 | 46,351 | ||||||||||||
Subordinated
debentures
|
6,186 | 6,245 | 6,186 | 6,248 | ||||||||||||
Derivatives
|
228 | 228 | 353 | 353 | ||||||||||||
Total
financial liabilities
|
$ | 720,771 | $ | 721,679 | $ | 583,763 | $ | 583,878 |
Nine months ended September 30,
|
Year ended
|
|||||||||||
2010
|
2009
|
December 31, 2009
|
||||||||||
(Dollars In Thousands)
|
||||||||||||
Allowance
for losses on mortgage loans sold -beginning of period
|
$ | 3,332 | $ | 1,439 | $ | 1,439 | ||||||
Settlements
in lieu of loan repurchase
|
1,237 | 2,932 | 3,080 | |||||||||
Other
losses
|
7 | 77 | 77 | |||||||||
Provision
for loan losses
|
2,400 | 3,349 | 5,050 | |||||||||
Allowance
for losses on mortgage loans sold - end of period
|
$ | 4,488 | $ | 1,779 | $ | 3,332 |
Three months ended September 30,
|
Nine months ended September 30,
|
Year ended
|
||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
December 31,2009
|
||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||
Allowance
for loan losses-beginning of period
|
$ | 9,348 | $ | 8,077 | $ | 9,127 | $ | 7,462 | $ | 7,462 | ||||||||||
Loans
Charged off:
|
||||||||||||||||||||
Commercial
|
18 | 314 | 213 | 1,455 | 1,541 | |||||||||||||||
Commercial
real estate
|
- | 537 | 624 | 1,648 | 1,648 | |||||||||||||||
Real
estate construction
|
39 | 519 | 48 | 612 | 1,247 | |||||||||||||||
Residential
real estate
|
200 | 157 | 346 | 851 | 851 | |||||||||||||||
Consumer
and other
|
- | - | - | 22 | 23 | |||||||||||||||
Total
Charge-offs
|
257 | 1,527 | 1,231 | 4,588 | 5,310 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial
|
11 | 206 | 389 | 213 | 374 | |||||||||||||||
Commercial
real estate
|
39 | - | 85 | 159 | 294 | |||||||||||||||
Real
estate construction
|
- | - | 5 | 66 | 66 | |||||||||||||||
Residential
real estate
|
6 | 36 | 26 | 51 | 79 | |||||||||||||||
Consumer
and other
|
- | - | - | - | 98 | |||||||||||||||
Total
Recoveries
|
56 | 242 | 505 | 489 | 911 | |||||||||||||||
Net
Charge-offs
|
201 | 1,285 | 726 | 4,099 | 4,399 | |||||||||||||||
Provision
for loan losses
|
575 | 1,387 | 1,321 | 4,816 | 6,064 | |||||||||||||||
Allowance
for loan losses-end of period
|
$ | 9,722 | $ | 8,179 | $ | 9,722 | $ | 8,179 | $ | 9,127 |
September 30, 2010
|
December 31, 2009
|
|||||||||||||||||||||||||||||||
Amount
|
Percentage
|
Allowance for
Loan Loss
|
Percentage
|
Amount
|
Percentage
|
Allowance for
Loan Loss
|
Percentage
|
|||||||||||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||||||||||||||
Commercial
real estate
|
$ | 223,574 | 46.74 | % | $ | 5,194 | 53.43 | % | $ | 220,301 | 45.28 | % | $ | 4,285 | 46.95 | % | ||||||||||||||||
Residential
real estate
|
137,745 | 28.80 | 2,577 | 26.51 | 150,792 | 30.99 | 2,690 | 29.47 | ||||||||||||||||||||||||
Commercial
|
78,556 | 16.42 | 1,129 | 11.61 | 72,628 | 14.93 | 1,589 | 17.41 | ||||||||||||||||||||||||
Real
estate construction
|
37,066 | 7.75 | 811 | 8.34 | 41,508 | 8.53 | 549 | 6.02 | ||||||||||||||||||||||||
Consumer
and other
|
1,386 | 0.29 | 11 | 0.11 | 1,335 | 0.27 | 14 | 0.15 | ||||||||||||||||||||||||
$ | 478,327 | 100.00 | % | $ | 9,722 | 100.00 | % | $ | 486,564 | 100.00 | % | $ | 9,127 | 100.00 | % |
September 30, 2010
|
December 31, 2009
|
|||||||
|
(Dollars
in Thousands)
|
|||||||
Non-accrual loans: | ||||||||
Commercial
real estate
|
$ | 4,121 | $ | 3,631 | ||||
Real
estate construction
|
1,489 | 1,689 | ||||||
Residential
real estate
|
1,265 | 1,504 | ||||||
Commercial
|
77 | 208 | ||||||
Consumer
and other
|
- | - | ||||||
Total
non-accrual loans
|
6,952 | 7,032 | ||||||
Other
real estate owned ("OREO")
|
3,276 | 5,111 | ||||||
Total
non-performing assets
|
$ | 10,228 | $ | 12,143 | ||||
Restructured
loans included in non-accrual loans
|
- | - | ||||||
Ratio
of non-performing assets to:
|
||||||||
Total
net loans plus OREO
|
2.17 | % | 2.52 | % | ||||
Total
Assets
|
1.27 | % | 1.82 | % | ||||
Accruing
Past due loans:
|
||||||||
90
or more days past due
|
$ | - | $ | - |
September
30,
|
December
31,
|
||||||||||
2010
|
2009
|
||||||||||
(In
Thousands)
|
|||||||||||
Tier
1 Capital:
|
|||||||||||
Common
stock
|
$ | 8,734 | $ | 8,799 | |||||||
Capital
surplus
|
18,207 | 18,552 | |||||||||
Retained
earnings
|
45,391 | 40,376 | |||||||||
Less:
Net unrealized loss on equity securities
|
- | - | |||||||||
Subordinated
debentures
|
6,000 | 6,000 | |||||||||
Less:
Dissallowed servicing assets
|
152 | (123 | ) | ||||||||
Total
Tier 1 capital
|
78,180 | 73,604 | |||||||||
Subordinated
debentures not included in Tier 1
|
- | - | |||||||||
Allowance
for loan losses
|
7,158 | 6,861 | |||||||||
Unrealized
gain on available for sale equity securities
|
5 | - | |||||||||
7,163 | 6,861 | ||||||||||
Total
risk based capital
|
$ | 85,343 | $ | 80,465 | |||||||
Risk
weighted assets
|
$ | 569,777 | $ | 546,288 | |||||||
Quarterly
average assets
|
$ | 802,205 | $ | 685,754 | |||||||
Regulatory
|
|||||||||||
Capital
Ratios:
|
Minimum
|
||||||||||
Tier
1 risk based capital ratio
|
13.72 | % | 13.47 | % |
4.00
|
% | |||||
Total
risk based capital ratio
|
14.98 | % | 14.73 | % |
8.00
|
% | |||||
Leverage
ratio
|
9.75 | % | 10.73 | % |
4.00
|
% |
Three Months Ended September 30,
|
||||||||||||
2010 compared to 2009
|
||||||||||||
Change Due To:
|
||||||||||||
Increase /
|
||||||||||||
(Decrease)
|
Volume
|
Rate
|
||||||||||
(In
Thousands)
|
||||||||||||
Interest
Earning Assets:
|
||||||||||||
Securities
|
$ | (129 | ) | $ | 389 | $ | (518 | ) | ||||
Loans
held for sale
|
122 | 221 | (99 | ) | ||||||||
Loans
|
(402 | ) | (416 | ) | 14 | |||||||
Interest-bearing
deposits
|
24 | 17 | 7 | |||||||||
Total
increase (decrease) in interest income
|
(385 | ) | 211 | (596 | ) | |||||||
Interest-Bearing
Liabilities:
|
||||||||||||
Interest-bearing
demand deposits
|
(53 | ) | (3 | ) | (50 | ) | ||||||
Money
market deposit accounts
|
(58 | ) | 105 | (163 | ) | |||||||
Savings
accounts
|
(7 | ) | (2 | ) | (5 | ) | ||||||
Time
deposits
|
(463 | ) | 313 | (776 | ) | |||||||
Total
interest-bearing deposits
|
(581 | ) | 413 | (994 | ) | |||||||
FHLB
Advances
|
(182 | ) | (134 | ) | (48 | ) | ||||||
Securities
sold under agreements to repurchase
|
(2 | ) | 6 | (8 | ) | |||||||
Other
short-term borrowings
|
29 | 29 | - | |||||||||
Long-term
borrowings
|
(97 | ) | (108 | ) | 11 | |||||||
FDIC
term note
|
1 | - | 1 | |||||||||
Subordinated
debentures
|
- | - | - | |||||||||
Total
increase (decrease) in interest expense
|
$ | (832 | ) | $ | 206 | $ | (1,038 | ) | ||||
Increase
(decrease) in net interest income
|
$ | 447 | $ | 5 | $ | 442 |
Nine Months Ended September 30,
|
||||||||||||
2010 compared to 2009
|
||||||||||||
Change Due To:
|
||||||||||||
Increase /
|
||||||||||||
(Decrease)
|
Volume
|
Rate
|
||||||||||
(In
Thousands)
|
||||||||||||
Interest
Earning Assets:
|
||||||||||||
Securities
|
$ | (1,016 | ) | $ | 683 | $ | (1,699 | ) | ||||
Loans
held for sale
|
(847 | ) | (729 | ) | (118 | ) | ||||||
Loans
|
(1,032 | ) | (896 | ) | (136 | ) | ||||||
Interest-bearing
deposits
|
60 | 50 | 10 | |||||||||
Total
increase (decrease) in interest income
|
(2,835 | ) | (892 | ) | (1,943 | ) | ||||||
Interest-Bearing
Liabilities:
|
||||||||||||
Interest-bearing
demand deposits
|
(73 | ) | 33 | (106 | ) | |||||||
Money
market deposit accounts
|
92 | 425 | (333 | ) | ||||||||
Savings
accounts
|
(20 | ) | (5 | ) | (15 | ) | ||||||
Time
deposits
|
(2,381 | ) | (219 | ) | (2,162 | ) | ||||||
Total
interest-bearing deposits
|
(2,382 | ) | 234 | (2,616 | ) | |||||||
FHLB
Advances
|
(356 | ) | (358 | ) | 2 | |||||||
Securities
sold under agreements to repurchase
|
(10 | ) | 6 | (16 | ) | |||||||
Other
short-term borrowings
|
23 | 25 | (2 | ) | ||||||||
Long-term
borrowings
|
(448 | ) | (413 | ) | (35 | ) | ||||||
FDIC
term note
|
124 | 134 | (10 | ) | ||||||||
Subordinated
debentures
|
(23 | ) | - | (23 | ) | |||||||
Total
increase (decrease) in interest expense
|
$ | (3,072 | ) | $ | (372 | ) | $ | (2,700 | ) | |||
Increase
(decrease) in net interest income
|
$ | 237 | $ | (520 | ) | $ | 757 |
September 30, 2010
|
September 30, 2009
|
|||||||||||||||||||||||
Average
|
Income /
|
Yield /
|
Average
|
Income /
|
Yield /
|
|||||||||||||||||||
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Securities
|
$ | 127,467 | $ | 583 | 1.83 | % | $ | 70,320 | $ | 712 | 4.05 | % | ||||||||||||
Loans
held for sale
|
70,913 | 840 | 4.74 | % | 52,967 | 718 | 5.42 | % | ||||||||||||||||
Loans(1)
|
471,308 | 7,350 | 6.24 | % | 497,969 | 7,752 | 6.23 | % | ||||||||||||||||
Interest-bearing
balances and federal funds sold
|
88,014 | 58 | 0.26 | % | 61,301 | 34 | 0.22 | % | ||||||||||||||||
Total
interest earning assets
|
757,702 | 8,831 | 4.66 | % | 682,557 | 9,216 | 5.40 | % | ||||||||||||||||
Noninterest
earning assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
12,516 | 6,708 | ||||||||||||||||||||||
Premises,
land and equipment
|
8,609 | 12,862 | ||||||||||||||||||||||
Other
assets
|
33,155 | 14,802 | ||||||||||||||||||||||
Less:
allowance for loan losses
|
(9,625 | ) | (8,250 | ) | ||||||||||||||||||||
Total
noninterest earning assets
|
44,655 | 26,122 | ||||||||||||||||||||||
Total
Assets
|
$ | 802,357 | $ | 708,679 | ||||||||||||||||||||
Liabilities
and Shareholders' Equity:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 34,217 | $ | 47 | 0.55 | % | $ | 35,376 | $ | 100 | 1.13 | % | ||||||||||||
Money
market deposit accounts
|
133,866 | 319 | 0.95 | % | 100,023 | 377 | 1.51 | % | ||||||||||||||||
Savings
accounts
|
3,862 | 9 | 0.93 | % | 4,408 | 16 | 1.45 | % | ||||||||||||||||
Time
deposits
|
356,644 | 1,513 | 1.70 | % | 302,287 | 1,976 | 2.61 | % | ||||||||||||||||
Total
interest-bearing deposits
|
528,589 | 1,888 | 1.43 | % | 442,094 | 2,469 | 2.23 | % | ||||||||||||||||
Borrowings:
|
||||||||||||||||||||||||
FHLB
Advances
|
8,202 | 71 | 3.46 | % | 22,535 | 253 | 4.49 | % | ||||||||||||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
28,376 | 23 | 0.32 | % | 22,193 | 25 | 0.45 | % | ||||||||||||||||
Other
short-term borrowings
|
26,451 | 61 | 0.92 | % | 13,697 | 32 | 0.93 | % | ||||||||||||||||
FHLB
Long-term borrowings
|
8,127 | 73 | 3.59 | % | 20,210 | 170 | 3.36 | % | ||||||||||||||||
FDIC
Term Note
|
29,998 | 300 | 4.00 | % | 29,996 | 299 | 3.99 | % | ||||||||||||||||
Subordinated
Debentures
|
6,186 | 57 | 3.69 | % | 6,186 | 57 | 3.69 | % | ||||||||||||||||
Total
borrowings
|
107,340 | 585 | 2.18 | % | 114,817 | 836 | 2.91 | % | ||||||||||||||||
Total
interest-bearing deposits and borrowings
|
635,929 | 2,473 | 1.56 | % | 556,911 | 3,305 | 2.37 | % | ||||||||||||||||
Noninterest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
74,870 | 74,878 | ||||||||||||||||||||||
Other
liabilities
|
21,286 | 11,208 | ||||||||||||||||||||||
Total
liabilities
|
732,085 | 642,997 | ||||||||||||||||||||||
Shareholders'
Equity
|
70,272 | 65,682 | ||||||||||||||||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 802,357 | $ | 708,679 | ||||||||||||||||||||
Interest Spread(2)
|
3.11 | % | 3.03 | % | ||||||||||||||||||||
Net Interest
Margin(3)
|
$ | 6,358 | 3.36 | % | $ | 5,911 | 3.46 | % |
September 30, 2010
|
September 30, 2009
|
|||||||||||||||||||||||
Average
|
Income /
|
Yield /
|
Average
|
Income /
|
Yield /
|
|||||||||||||||||||
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Securities
|
$ | 98,381 | $ | 1,537 | 2.08 | % | $ | 73,491 | $ | 2,553 | 4.63 | % | ||||||||||||
Loans
held for sale
|
49,144 | 1,801 | 4.89 | % | 68,906 | 2,648 | 5.12 | % | ||||||||||||||||
Loans(1)
|
472,361 | 22,238 | 6.28 | % | 491,375 | 23,270 | 6.31 | % | ||||||||||||||||
Interest-bearing
balances and federal funds sold
|
93,323 | 172 | 0.25 | % | 65,613 | 112 | 0.23 | % | ||||||||||||||||
Total
interest-earning assets
|
713,209 | 25,748 | 4.81 | % | 699,385 | 28,583 | 5.45 | % | ||||||||||||||||
Noninterest-earning
assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
9,652 | 6,345 | ||||||||||||||||||||||
Premises,
land and equipment
|
8,671 | 9,050 | ||||||||||||||||||||||
Other
assets
|
28,788 | 18,676 | ||||||||||||||||||||||
Less:
allowance for loan losses
|
(9,352 | ) | (7,919 | ) | ||||||||||||||||||||
Total
noninterest-earning assets
|
37,759 | 26,152 | ||||||||||||||||||||||
Total
Assets
|
$ | 750,968 | $ | 725,537 | ||||||||||||||||||||
Liabilities
and Shareholders' Equity:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 31,774 | $ | 150 | 0.63 | % | $ | 27,242 | $ | 223 | 1.09 | % | ||||||||||||
Money
market deposit accounts
|
132,034 | 1,103 | 1.11 | % | 87,254 | 1,011 | 1.54 | % | ||||||||||||||||
Savings
accounts
|
3,979 | 28 | 0.94 | % | 4,456 | 48 | 1.44 | % | ||||||||||||||||
Time
deposits
|
319,664 | 4,624 | 1.93 | % | 330,293 | 7,005 | 2.83 | % | ||||||||||||||||
Total
interest-bearing deposits
|
487,451 | 5,905 | 1.62 | % | 449,245 | 8,287 | 2.46 | % | ||||||||||||||||
Borrowings:
|
||||||||||||||||||||||||
FHLB
Advances
|
12,489 | 384 | 4.10 | % | 24,144 | 740 | 4.09 | % | ||||||||||||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
26,028 | 81 | 0.41 | % | 24,363 | 91 | 0.50 | % | ||||||||||||||||
Other
short-term borrowings
|
21,449 | 150 | 0.93 | % | 17,848 | 127 | 0.95 | % | ||||||||||||||||
FHLB
Long-term borrowings
|
9,801 | 244 | 3.32 | % | 26,300 | 692 | 3.51 | % | ||||||||||||||||
FDIC
Term Note
|
29,997 | 892 | 3.96 | % | 25,491 | 768 | 4.02 | % | ||||||||||||||||
Subordinated
Debentures
|
6,186 | 162 | 3.49 | % | 6,186 | 185 | 3.99 | % | ||||||||||||||||
Total
borrowings
|
105,950 | 1,913 | 2.41 | % | 124,332 | 2,603 | 2.79 | % | ||||||||||||||||
Total
interest-bearing deposits and borrowings
|
593,401 | 7,818 | 1.76 | % | 573,577 | 10,890 | 2.53 | % | ||||||||||||||||
Noninterest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
71,507 | 78,535 | ||||||||||||||||||||||
Other
liabilities
|
15,820 | 9,866 | ||||||||||||||||||||||
Total
liabilities
|
87,327 | 661,978 | ||||||||||||||||||||||
Shareholders'
Equity
|
70,240 | 63,559 | ||||||||||||||||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 750,968 | $ | 725,537 | ||||||||||||||||||||
Interest
Spread(2)
|
3.06 | % | 2.92 | % | ||||||||||||||||||||
Net
Interest Margin(3)
|
$ | 17,930 | 3.35 | % | $ | 17,693 | 3.37 | % |
Nine Months Ended September 30,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Provision
for losses on loans sold
|
$ | 2,400 | $ | 3,349 | ||||
Management
fees expense
|
2,105 | 5,573 | ||||||
Advertising
and promotional expense
|
2,034 | 4,255 | ||||||
OREO
Expense
|
1,324 | 1,052 | ||||||
Investor
fees expense
|
568 | 1,237 | ||||||
Accounting
and auditing expense
|
460 | 460 | ||||||
Loan
and collection expense
|
399 | 284 | ||||||
Data
processing expense
|
379 | 364 | ||||||
Business
and franchise tax expense
|
341 | 336 | ||||||
FDIC
insurance expense
|
324 | 947 | ||||||
Consulting
fees expense
|
285 | 260 | ||||||
CDARS
fee expense
|
285 | 76 | ||||||
Credit
report expense
|
272 | 382 | ||||||
Telephone
expense
|
165 | 69 | ||||||
Other
|
1,935 | 2,479 | ||||||
$ | 13,276 | $ | 21,123 |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
At
Period End
|
||||||||
FHLB
advances
|
$ | 5,833 | $ | 20,179 | ||||
FHLB
long-term borrowings
|
7,589 | 16,333 | ||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
36,933 | 26,804 | ||||||
Other
short-term borrowings
|
27,049 | 17,267 | ||||||
Subordinated
debentures
|
6,186 | 6,186 | ||||||
FDIC
term note
|
29,998 | 29,997 | ||||||
Total
at period end
|
$ | 113,588 | $ | 116,766 |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
( In Thousands)
|
||||||||
Average
Balances
|
||||||||
FHLB
advances
|
$ | 12,489 | $ | 23,676 | ||||
FHLB
long-term borrowings
|
9,801 | 24,026 | ||||||
Securities
sold under agreements to repurchase and federal funds
purchased
|
26,028 | 23,283 | ||||||
Other
short-term borrowings
|
21,449 | 17,817 | ||||||
Subordinated
debentures
|
6,186 | 6,186 | ||||||
FDIC
term note
|
29,997 | 26,627 | ||||||
Total
average balance
|
$ | 105,950 | $ | 121,615 |
Increase in Federal
Funds Target Rate
|
Hypothetical Percentage
Change in Earnings
September 30, 2010
|
Hypothetical Percentage
Change in Earnings
December 31, 2010
|
|||||||
3.00
|
% | 8.80 | % | 4.01 | % | ||||
2.00
|
% | 4.87 | % | 3.92 | % | ||||
1.00
|
% | 1.55 | % | 3.86 | % |
Issuer Purchases of Equity Securities
|
||||||||||||||||
(c) Total Number of
|
(d) Maximum Number
|
|||||||||||||||
Shares Purchased as
|
of Shares that may
|
|||||||||||||||
(a) Total Number of
|
(b) Average Price
|
Part of Publicly
|
yet be Purchased
|
|||||||||||||
Period
|
Shares Purchased
|
Paid Per Share
|
Announced Plan
|
Under the Plan
|
||||||||||||
July
1 - July 31, 2010
|
18,795 | $ | 5.99 | 18,795 | 1,246,337 | |||||||||||
August
1 - August 31, 2010
|
9,850 | 5.95 | 9,850 | 1,236,487 | ||||||||||||
September
1 - September 30, 2010
|
8,800 | 6.12 | 8,800 | 1,227,687 | ||||||||||||
37,445 | $ | 6.01 | 37,445 | 1,227,687 |
Exhibit No.
|
Description
|
|
3.1
|
Amended
and Restated Articles of Incorporation of Access National Corporation
(incorporated by reference to Exhibit 3.1 to Form 8-K filed July 18, 2006
(file number 000-49929))
|
|
3.2
|
Amended
and Restated Bylaws of Access National Corporation (incorporated by
reference to Exhibit 3.2 to Form 8-K filed October 24, 2007 (file number
000-49929))
|
|
4.0
|
Certain
instruments relating to long-term debt as to which the total amount of
securities authorized thereunder does not exceed 10% of Access National
Corporation’s total assets have been omitted in accordance with Item
601(b)(4)(iii) of Regulation S-K. The registrant will furnish a
copy of any such instrument to the Securities and Exchange Commission upon
its request.
|
|
31.1*
|
CEO
Certification Pursuant to Rule 13a-14(a)
|
|
31.2*
|
CFO
Certification Pursuant to Rule 13a-14(a)
|
|
32*
|
|
CEO/CFO
Certification Pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. § 1350)
|
*
filed
herewith
|
Access
National Corporation
|
||
(Registrant)
|
||
Date: November
12,
2010
|
By:
|
/s/
Michael W. Clarke
|
Michael
W. Clarke
|
||
President
and Chief Executive Officer
|
||
(Principal
Executive Officer)
|
||
Date: November12,
2010
|
By:
|
/s/
Charles Wimer
|
Charles
Wimer
|
||
Executive
Vice President and Chief Financial Officer
|
||
(Principal
Financial & Accounting
Officer)
|