South Carolina
|
57-0858504
|
(State or other jurisdiction of
incorporation or organization)
|
(IRS
Employer Identification No.)
|
|
Large accelerated filed [ ] | Accelerated filer [ ] | ||
Non-accelerated filer [ ] | Smaller reporting company [ X ] | |||
CLASS:
|
OUTSTANDING
SHARES AT:
|
SHARES:
|
||
Common
Stock, par
value
$0.01 per share
|
October 31,
2009
|
2,461,095
|
PART
I.
|
FINANCIAL
INFORMATION (UNAUDITED)
|
PAGE
NO.
|
|
Item
1.
|
Financial
Statements (Unaudited):
|
||
Consolidated
Balance Sheets at September 30, 2009 and March 31, 2009
|
1
|
||
Consolidated
Statements of Income for the Three and Six Months Ended September 30, 2009
and 2008
|
2
|
||
Consolidated
Statements of Shareholders’ Equity and Comprehensive Income (Loss) at
September 30, 2009 and 2008
|
4
|
||
Consolidated
Statements of Cash Flows for the Six Months Ended September 30, 2009 and
2008
|
5
|
||
Notes
to Consolidated Financial Statements
|
7
|
||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
23
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
37
|
|
Item
4.
|
Controls
and Procedures
|
37
|
|
PART
II.
|
OTHER
INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
37
|
|
Item
1A.
|
Risk
Factors
|
38
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
39
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
39
|
|
Item
4T.
|
Submission
of Matters to Vote of Security Holders
|
39
|
|
Item
5.
|
Other
Information
|
39
|
|
Item
6.
|
Exhibits
|
40
|
|
Signatures
|
41
|
||
September
30, 2009
|
March
31, 2009
|
|||
Assets:
|
(Unaudited)
|
(Audited)
|
||
Cash
And Cash Equivalents
|
$
|
7,838,722
|
$
|
6,562,394
|
Investment
And Mortgage-Backed Securities:
|
||||
Available
For Sale: (Amortized cost of $287,693,825
at September 30, 2009 and
$276,687,428 at March 31, 2009)
|
295,376,106
|
282,832,735
|
||
Held
To Maturity: (Fair value of $25,865,769 at September 30, 2009 and $32,492,407 at
March 31, 2009)
|
24,682,628
|
31,265,866
|
||
Total
Investment And Mortgage-Backed Securities
|
320,058,734
|
314,098,601
|
||
Loans
Receivable, Net:
|
||||
Held
For Sale
|
5,834,107
|
5,711,807
|
||
Held
For Investment: (Net of
allowance of
$12,723,921
at September 30, 2009 and
$10,181,599 at March
31, 2009)
|
593,823,253
|
605,378,066
|
||
Total
Loans Receivable, Net
|
599,657,360
|
611,089,873
|
||
Accrued
Interest Receivable:
|
||||
Loans
|
1,797,877
|
2,011,967
|
||
Mortgage-Backed
Securities
|
1,023,231
|
1,138,911
|
||
Investments
|
595,483
|
363,707
|
||
Premises
And Equipment, Net
|
21,301,694
|
21,675,434
|
||
Federal
Home Loan Bank Stock, At Cost
|
12,624,400
|
12,662,700
|
||
Bank
Owned Life Insurance
|
9,821,305
|
9,641,305
|
||
Repossessed
Assets Acquired In Settlement Of Loans
|
2,647,280
|
1,985,172
|
||
Intangible
Assets, Net
|
294,500
|
352,500
|
||
Goodwill
|
1,199,754
|
1,421,754
|
||
Other
Assets
|
3,098,436
|
1,657,189
|
||
Total
Assets
|
$
|
981,958,776
|
$
|
984,661,507
|
Liabilities
And Shareholders’ Equity
|
||||
Liabilities:
|
||||
Deposit
Accounts
|
$
|
662,414,786
|
$
|
661,713,575
|
Advances
From Federal Home Loan Bank (“FHLB”)
|
199,410,529
|
218,998,434
|
||
Term
Auction Facility Advances (“TAF”)
|
25,000,000
|
10,000,000
|
||
Other
Borrowed Money
|
15,583,483
|
16,055,966
|
||
Advance
Payments By Borrowers For Taxes And Insurance
|
581,909
|
421,461
|
||
Mandatorily
Redeemable Financial Instrument
|
1,644,312
|
1,600,312
|
||
Junior
Subordinated Debentures
|
5,155,000
|
5,155,000
|
||
Other
Liabilities
|
3,975,195
|
3,624,461
|
||
Total
Liabilities
|
913,765,214
|
917,569,209
|
||
Shareholders'
Equity:
|
||||
Serial
Preferred Stock, $.01 Par Value; Authorized Shares – 200,000; Issued
And Outstanding Shares,18,000 At September 30, 2009 And At March 31,
2009
|
17,656,421
|
17,620,065
|
||
Common
Stock, $.01 Par Value; Authorized Shares – 5,000,000; Issued And
Outstanding Shares -2,662,028 And
2,461,095 Respectively, At September
30, 2009; And 2,660,528 And 2,459,595, Respectively, At March 31,
2009
|
26,055
|
26,040
|
||
Warrants
Issued In Conjunction With Serial Preferred Stock
|
400,000
|
400,000
|
||
Additional
Paid-In Capital
|
5,335,582
|
5,299,235
|
||
Treasury
Stock, (At Cost, 200,933 Shares, At September 30, 2009 And At March
31, 2009)
|
(4,330,712)
|
(4,330,712)
|
||
Accumulated
Other Comprehensive Income
|
4,764,364
|
3,809,934
|
||
Retained
Earnings, Substantially Restricted
|
44,341,852
|
44,267,736
|
||
Total
Shareholders' Equity
|
68,193,562
|
67,092,298
|
||
Total
Liabilities And Shareholders' Equity
|
$
|
981,958,776
|
$
|
984,661,507
|
Three
Months Ended September 30,
|
||||
2009
|
2008
|
|||
Interest
Income:
|
||||
Loans
|
$
|
8,496,286
|
$
|
8,941,511
|
Mortgage-Backed
Securities
|
2,529,990
|
2,621,098
|
||
Investment
Securities
|
745,910
|
777,828
|
||
Other
|
116
|
3,899
|
||
Total
Interest Income
|
11,772,302
|
12,344,336
|
||
Interest
Expense:
|
||||
NOW
And Money Market Accounts
|
638,562
|
966,696
|
||
Statement
Savings Accounts
|
19,334
|
30,059
|
||
Certificate
Accounts
|
2,806,781
|
3,569,709
|
||
Advances
And Other Borrowed Money
|
1,642,721
|
2,240,394
|
||
Junior
Subordinated Debentures
|
60,283
|
74,852
|
||
Total
Interest Expense
|
5,167,681
|
6,881,710
|
||
Net
Interest Income
|
6,604,621
|
5,462,626
|
||
Provision
For Loan Losses
|
1,600,000
|
275,000
|
||
Net
Interest Income After Provision For Loan Losses
|
5,004,621
|
5,187,626
|
||
Non-Interest
Income:
|
||||
Gain
On Sale Of Investments
|
323,234
|
25,035
|
||
Gain
On Sale Of Loans
|
162,858
|
109,035
|
||
Service
Fees On Deposit Accounts
|
312,300
|
276,240
|
||
Income
From Cash Value Of Life Insurance
|
90,000
|
92,746
|
||
Commissions
From Insurance Agency
|
108,076
|
164,138
|
||
Other
Agency Income
|
119,044
|
76,081
|
||
Trust
Income
|
105,000
|
105,000
|
||
Other
|
200,635
|
212,328
|
||
Total
Non-Interest Income
|
1,421,147
|
1,060,603
|
||
General
And Administrative Expenses:
|
||||
Salaries
And Employee Benefits
|
2,876,830
|
2,831,272
|
||
Occupancy
|
499,819
|
493,366
|
||
Advertising
|
81,375
|
106,856
|
||
Depreciation
And Maintenance Of Equipment
|
440,369
|
414,910
|
||
FDIC
Insurance Premiums
|
351,000
|
191,535
|
||
Amortization
of Intangibles
|
22,500
|
22,500
|
||
Mandatorily
Redeemable Financial Instrument Valuation Expense
|
122,000
|
60,000
|
||
Loss
On Sale Of Repossessed Assets Acquired In Settlement Of
Loans
|
37,921
|
-
|
||
Other
|
980,265
|
954,950
|
||
Total
General And Administrative Expenses
|
5,412,079
|
5,075,389
|
||
Income
Before Income Taxes
|
1,013,689
|
1,172,840
|
||
Provision
For Income Taxes
|
431,609
|
388,002
|
||
Net
Income
|
582,080
|
784,838
|
||
Preferred
Stock Dividends
|
225,000
|
-
|
||
Accretion
Of Preferred Stock To Redemption Value
|
18,277
|
-
|
||
Net
Income Available To Common Shareholders
|
$
|
338,803
|
$
|
784,838
|
Basic
Net Income Per Common Share
|
$
|
0.14
|
$
|
0.31
|
Diluted
Net Income Per Common Share
|
$
|
0.13
|
$
|
0.31
|
Cash
Dividend Per Share On Common Stock
|
$
|
0.08
|
$
|
0.08
|
Basic
Weighted Average Shares Outstanding
|
2,461,092
|
2,524,758
|
||
Diluted
Weighted Average Shares Outstanding
|
2,521,157
|
2,539,756
|
Six
Months Ended September 30,
|
||||
2009
|
2008
|
|||
Interest
Income:
|
||||
Loans
|
$
|
17,196,423
|
$
|
17,483,246
|
Mortgage-Backed
Securities
|
5,377,260
|
5,016,481
|
||
Investment
Securities
|
1,262,907
|
1,666,729
|
||
Other
|
330
|
9,077
|
||
Total
Interest Income
|
23,836,920
|
24,175,533
|
||
Interest
Expense:
|
||||
NOW
And Money Market Accounts
|
1,323,158
|
1,890,787
|
||
Statement
Savings Accounts
|
39,452
|
63,562
|
||
Certificate
Accounts
|
6,081,486
|
7,232,635
|
||
Advances
And Other Borrowed Money
|
3,335,335
|
4,252,158
|
||
Junior
Subordinated Debentures
|
124,043
|
148,971
|
||
Total
Interest Expense
|
10,903,474
|
13,588,113
|
||
Net
Interest Income
|
12,933,446
|
10,587,420
|
||
Provision
For Loan Losses
|
3,000,000
|
500,000
|
||
Net
Interest Income After Provision For Loan Losses
|
9,933,446
|
10,087,420
|
||
Non-Interest
Income:
|
||||
Gain
On Sale Of Investments
|
374,125
|
126,440
|
||
Gain
On Sale Of Loans
|
596,465
|
227,718
|
||
Service
Fees On Deposit Accounts
|
588,682
|
557,393
|
||
Income
From Cash Value Of Life Insurance
|
180,000
|
178,492
|
||
Commissions
From Insurance Agency
|
247,330
|
333,130
|
||
Other
Agency Income
|
241,511
|
123,018
|
||
Trust
Income
|
210,000
|
210,000
|
||
Other
|
409,221
|
425,619
|
||
Total
Non-Interest Income
|
2,847,334
|
2,181,810
|
||
General
And Administrative Expenses:
|
||||
Salaries
And Employee Benefits
|
5,821,265
|
5,615,507
|
||
Occupancy
|
993,164
|
990,686
|
||
Advertising
|
215,929
|
247,677
|
||
Depreciation
And Maintenance Of Equipment
|
882,396
|
841,834
|
||
FDIC
Insurance Premiums
|
1,107,000
|
347,345
|
||
Amortization
of Intangibles
|
45,000
|
45,000
|
||
Mandatorily
Redeemable Financial Instrument Valuation Expense
|
44,000
|
60,000
|
||
Loss
(Gain) On Sale Of Repossessed Assets Acquired In Settlement Of
Loans
|
61,104
|
(13,694)
|
||
Other
|
2,002,135
|
1,763,024
|
||
Total
General And Administrative Expenses
|
11,171,993
|
9,897,379
|
||
Income
Before Income Taxes
|
1,608,787
|
2,371,851
|
||
Provision
For Income Taxes
|
654,540
|
785,108
|
||
Net
Income
|
954,247
|
1,586,743
|
||
Preferred
Stock Dividends
|
450,000
|
-
|
||
Accretion
Of Preferred Stock To Redemption Value
|
36,356
|
-
|
||
Net
Income Available To Common Shareholders
|
$
|
467,891
|
$
|
1,586,743
|
Basic
Net Income Per Common Share
|
$
|
0.19
|
$
|
0.63
|
Diluted
Net Income Per Common Share
|
$
|
0.19
|
$
|
0.62
|
Cash
Dividend Per Share On Common Stock
|
$
|
0.16
|
$
|
0.16
|
Basic
Weighted Average Shares Outstanding
|
2,460,614
|
2,528,122
|
||
Diluted
Weighted Average Shares Outstanding
|
2,511,872
|
2,539,135
|
Common
Stock
|
Additional
Paid
– In
Capital
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Retained
Earnings
|
Total
|
||||||||||||||||||||||||||
Balance
At March 31, 2008
|
$
|
25,925
|
$
|
5,072,086
|
$
|
(2,769,446)
|
$
|
2,395,537
|
$
|
42,772,311
|
$
|
47,496,413
|
|||||||||||||||||||
Net
Income
|
-
|
-
|
-
|
-
|
1,586,743
|
1,586,743
|
|||||||||||||||||||||||||
Other
Comprehensive Income,
Net
Of Tax:
|
|||||||||||||||||||||||||||||||
Unrealized
Holding Losses
On
Securities Available
For
Sale, Net Of Taxes
|
-
|
-
|
-
|
(2,614,818)
|
-
|
(2,614,818)
|
|||||||||||||||||||||||||
Reclassification
Adjustment
For
Gains Included In Net
Income,
Net Of Taxes
|
-
|
-
|
-
|
(78,393)
|
-
|
(78,393)
|
|||||||||||||||||||||||||
Comprehensive
Loss
|
-
|
-
|
-
|
-
|
-
|
(1,106,468)
|
|||||||||||||||||||||||||
Purchase Of Treasury Stock
At Cost, 13,050 shares
|
-
|
-
|
(277,326)
|
-
|
-
|
(277,326)
|
|||||||||||||||||||||||||
Employee Stock Purchase Plan
Purchases
|
26
|
49,948
|
-
|
-
|
-
|
49,974
|
|||||||||||||||||||||||||
Exercise Of Stock Options
|
60
|
99,960
|
-
|
-
|
-
|
100,020
|
|||||||||||||||||||||||||
Stock Compensation Expense
|
-
|
16,129
|
-
|
-
|
-
|
16,129
|
|||||||||||||||||||||||||
Cash
Dividends
|
-
|
-
|
-
|
-
|
(404,447)
|
(404,447)
|
|||||||||||||||||||||||||
Balance
At September 30, 2008
|
$
|
26,011
|
$
|
5,238,123
|
$
|
(3,046,772)
|
$
|
(297,674)
|
$
|
43,954,607
|
$
|
45,874,295
|
|
Preferred
Stock
|
Warrants
|
Common
Stock
|
Additional
Paid
– In
Capital
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
|
Retained
Earnings
|
Total
|
|||||||||||||||||||||||
Balance
At March 31, 2009
|
$
|
17,620,065
|
$
|
400,000
|
$
|
26,040
|
$
|
5,299,235
|
$
|
(4,330,712)
|
$
|
3,809,934
|
$
|
44,267,736
|
$
|
67,092,298
|
|||||||||||||||
Net
Income
|
-
|
-
|
-
|
-
|
-
|
-
|
954,247
|
954,247
|
|||||||||||||||||||||||
Other
Comprehensive Income,
Net
Of Tax:
|
|||||||||||||||||||||||||||||||
Unrealized
Holding Gains
On
Securities Available
For
Sale, Net Of Taxes
|
-
|
-
|
-
|
-
|
-
|
1,186,388
|
-
|
1,186,388
|
|||||||||||||||||||||||
Reclassification
Adjustment
For
Gains Included In Net
Income,
Net Of Taxes
|
-
|
-
|
-
|
-
|
-
|
(231,958)
|
-
|
(231,958)
|
|||||||||||||||||||||||
Comprehensive
Income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,908,677
|
|||||||||||||||||||||||
Accretion Of Preferred Stock To Redemption Value
|
36,356
|
-
|
-
|
-
|
-
|
-
|
(36,356)
|
-
|
|||||||||||||||||||||||
Employee Stock Purchase Plan Purchases
|
-
|
-
|
15
|
19,785
|
-
|
-
|
-
|
19,800
|
|||||||||||||||||||||||
Stock
Compensation Expense
|
-
|
-
|
-
|
16,562
|
-
|
-
|
-
|
16,562
|
|||||||||||||||||||||||
Cash
Dividends On Preferred
|
-
|
-
|
-
|
-
|
-
|
-
|
(450,000)
|
(450,000)
|
|||||||||||||||||||||||
Cash
Dividends On Common
|
-
|
-
|
-
|
-
|
-
|
-
|
(393,775)
|
(393,775)
|
|||||||||||||||||||||||
Balance
At September 30, 2009
|
$
|
17,656,421
|
$
|
400,000
|
$
|
26,055
|
$
|
5,335,582
|
$
|
(4,330,712)
|
$
|
4,764,364
|
$
|
44,341,852
|
$
|
68,193,562
|
Six
Months Ended September 30,
|
|||||
2009
|
2008
|
||||
Cash
Flows From Operating Activities:
|
|||||
Net
Income
|
$
|
954,247
|
$
|
1,586,743
|
|
Adjustments
To Reconcile Net Income To Net Cash Provided By Operating
Activities:
|
|||||
Depreciation Expense
|
763,450
|
742,265
|
|||
Amortization Of Intangible Assets
|
45,000
|
45,000
|
|||
Stock Option Compensation Expense
|
16,562
|
16,129
|
|||
Discount Accretion And Premium Amortization
|
831,551
|
192,595
|
|||
Provisions For Losses On Loans And Real Estate
|
3,000,000
|
500,000
|
|||
Write Down Of Goodwill
|
222,000
|
-
|
|||
Mandatorily Redeemable Financial Instrument Valuation
Expense
|
44,000
|
60,000
|
|||
Loss (Gain) On Sale Of Mortgage-Backed Securities Available For
Sale
|
(107,373)
|
22,204
|
|||
Gain On Sale Of Investment Securities Available For Sale
|
(266,752)
|
(148,644)
|
|||
Gain On Sale Of Loans
|
(596,465)
|
(227,718)
|
|||
(Gain) Loss On Sale Of Repossessed Assets Acquired In Settlement Of
Loans
|
61,104
|
(13,694)
|
|||
Amortization Of Deferred Fees On Loans
|
(70,139)
|
(49,285)
|
|||
Proceeds From Sale Of Loans Held For Sale
|
40,682,117
|
17,669,670
|
|||
Origination Of Loans For Sale
|
(40,207,952)
|
(16,714,920)
|
|||
(Increase) Decrease In Accrued Interest Receivable:
|
|||||
Loans
|
214,090
|
122,504
|
|||
Mortgage-Backed Securities
|
115,680
|
(71,713)
|
|||
Investments
|
(231,776)
|
266,526
|
|||
Increase In Advance Payments By Borrowers
|
160,448
|
178,466
|
|||
Other, Net
|
(1,840,083)
|
(805,278)
|
|||
Net
Cash Provided By Operating Activities
|
3,789,709
|
3,325,850
|
|||
Cash
Flows From Investing Activities:
|
|||||
Principal Repayments On Mortgage-Backed Securities Held To
Maturity
|
4,246,498
|
-
|
|||
Principal Repayments On Mortgage-Backed Securities Available For
Sale
|
33,791,297
|
23,333,383
|
|||
Purchase
Of Investment Securities Available For Sale
|
(33,813,777)
|
(8,184,620)
|
|||
Purchase
Of Mortgage-Backed Securities Available For Sale
|
(37,755,206)
|
(48,075,466)
|
|||
Maturities
Of Investment Securities Available For Sale
|
8,496,907
|
10,442,949
|
|||
Maturities
Of Investment Securities Held To Maturity
|
2,258,066
|
9,000,000
|
|||
Proceeds
From Sale Of Mortgage-Backed Securities Available For Sale
|
10,209,062
|
2,993,520
|
|||
Proceeds
From Sale Of Investment Securities Available For Sale
|
7,686,569
|
7,135,335
|
|||
Purchase
Of FHLB Stock
|
-
|
(5,800,200)
|
|||
Redemption
Of FHLB Stock
|
38,300
|
3,361,600
|
|||
Decrease
(Increase) In Loans To Customers
|
7,662,060
|
(62,580,669)
|
|||
Proceeds
From Sale Of Repossessed Assets
|
239,680
|
346,000
|
|||
Purchase
And Improvement Of Premises And Equipment
|
(389,685)
|
(1,286,870)
|
|||
Purchase Of Bank Owned Life Insurance
|
-
|
(1,150,492)
|
|||
Net
Cash Provided (Used) By Investing Activities
|
2,669,771
|
(70,465,530)
|
|||
Six
Months Ended September 30,
|
|||||
2009
|
2008
|
||||
Cash
Flows From Financing Activities:
|
|||||
Increase
In Deposit Accounts
|
701,211
|
14,313,384
|
|||
Proceeds
From FHLB Advances
|
157,120,000
|
173,800,000
|
|||
Repayment
Of FHLB Advances
|
(176,707,905)
|
(121,407,748)
|
|||
Proceeds
From TAF Advances
|
52,000,000
|
-
|
|||
Repayment
Of TAF Advances
|
(37,000,000)
|
-
|
|||
Net
Proceeds (Repayment) Of Other Borrowings
|
(472,483)
|
805,119
|
|||
Dividends
To Preferred Shareholders
|
(450,000)
|
-
|
|||
Dividends
To Common Shareholders
|
(393,775)
|
(404,447)
|
|||
Purchase
Of Treasury Stock
|
-
|
(277,326)
|
|||
Proceeds
From Employee Stock Purchases
|
19,800
|
49,974
|
|||
Proceeds
From Exercise of Stock Options
|
-
|
100,020
|
|||
Net
Cash Provided (Used) By Financing Activities
|
(5,183,152)
|
66,978,976
|
|||
Net
Increase (Decrease) In Cash And Cash Equivalents
|
1,276,328
|
(160,704)
|
|||
Cash
And Cash Equivalents At Beginning Of Period
|
6,562,394
|
10,539,054
|
|||
Cash
And Cash Equivalents At End Of Period
|
$
|
7,838,722
|
$
|
10,378,350
|
|
Supplemental
Disclosure Of Cash Flows Information:
|
|||||
Cash
Paid During The Period For Interest
|
$
|
11,094,059
|
$
|
13,886,219
|
|
Cash
Paid During The Period For Income Taxes
|
$
|
1,539,002
|
$
|
1,232,822
|
|
Additions
To Repossessed Acquired Through Foreclosure
|
$
|
962,892
|
$
|
222,450
|
|
Increase
(Decrease) In Unrealized Gain On Securities Available For
Sale,
Net
Of Taxes
|
$
|
954,430
|
$
|
(2,693,211)
|
1.
|
Basis
of Presentation
|
2.
|
Principles
of Consolidation
|
3.
|
Critical
Accounting Policies, Continued
|
For the Quarter Ended: |
September
30,
|
||||
2009
|
2008
|
||||
Earnings
Available to Common Shareholders:
|
|||||
Net Income
|
$
|
582,080
|
$
|
784,838
|
|
Preferred
Stock Dividends
|
225,000
|
-
|
|||
Deemed
Dividends On Preferred Stock From Net
Accretion
of Preferred Stock
|
18,277
|
-
|
|||
Net
Income Available To Common Shareholders
|
$
|
338,803
|
$
|
784,838
|
For the Six Months Ended: |
September
30,
|
||||
2009
|
2008
|
||||
Earnings
Available to Common Shareholders:
|
|||||
Net Income
|
$
|
954,247
|
$
|
1,586,743
|
|
Preferred
Stock Dividends
|
450,000
|
-
|
|||
Deemed
Dividends On Preferred Stock From Net
Accretion
of Preferred Stock
|
36,356
|
-
|
|||
Net
Income Available To Common Shareholders
|
$
|
467,891
|
$
|
1,586,743
|
For
the Quarter Ended
|
|||||
September
30, 2009
|
|||||
Income
(Numerator) Amount
|
Shares
(Denominator)
|
Per
Share
|
|||
Basic
EPS
|
$ 338,803
|
2,461,092
|
$
|
0.14
|
|
Effect
of Diluted Securities:
|
|||||
Mandatorily
Redeemable
Shares
|
-
|
60,065
|
(0.01)
|
||
Stock Options &
Warrants
|
-
|
-
|
-
|
||
Diluted
EPS
|
$ 338,803
|
2,521,157
|
$
|
0.13
|
For
the Quarter Ended
|
|||||
September
30, 2008
|
|||||
Income
(Numerator) Amount
|
Shares
(Denominator)
|
Per
Share
|
|||
Basic
EPS
|
$ 784,838
|
2,524,758
|
$
|
0.31
|
|
Effect
of Diluted Securities:
|
|||||
Mandatorily
Redeemable
Shares
|
-
|
14,998
|
-
|
||
Stock Options
|
-
|
-
|
-
|
||
Diluted
EPS
|
$ 784,838
|
2,539,756
|
$
|
0.31
|
For
the Six Months Ended
|
|||||
September
30, 2009
|
|||||
Income
(Numerator) Amount
|
Shares
(Denominator)
|
Per
Share
|
|||
Basic
EPS
|
$
467,891
|
2,460,614
|
$
|
0.19
|
|
Effect
of Diluted Securities:
|
|||||
Mandatorily
Redeemable
Shares
|
-
|
51,258
|
-
|
||
Stock Options &
Warrants
|
-
|
-
|
-
|
||
Diluted
EPS
|
$ 467,891
|
2,511,872
|
$
|
0.19
|
For
the Six Months Ended
|
|||||
September
30, 2008
|
|||||
Income
(Numerator) Amount
|
Shares
(Denominator)
|
Per
Share
|
|||
Basic
EPS
|
$ 1,586,743
|
2,528,122
|
$
|
0.63
|
|
Effect
of Diluted Securities:
|
|||||
Mandatorily
Redeemable
Shares
|
-
|
11,013
|
(0.01)
|
||
Stock
Options
|
-
|
-
|
-
|
||
Diluted
EPS
|
$ 1,586,743
|
2,539,135
|
$
|
0.62
|
Three
Months Ended
September
30, 2009
|
Six
Months Ended
September
30, 2009
|
||||
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
||
Balance,
Beginning of
Period/Year
|
100,500
|
$22.01
|
100,500
|
$22.01
|
|
Options
granted
|
-
|
-
|
-
|
-
|
|
Options
exercised
|
-
|
-
|
-
|
-
|
|
Options
forfeited
|
(9,600)
|
16.67
|
(9,600)
|
16.67
|
|
Balance,
September 30, 2009
|
90,900
|
$22.57
|
90,900
|
$22.57
|
|
Options
Exercisable
|
50,400
|
50,400
|
|||
Options
Available For Grant
|
50,000
|
50,000
|
Three
Months Ended
September
30, 2008
|
Six
Months Ended
September
30, 2008
|
||||
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
||
Balance,
Beginning of
Period/Year
|
113,600
|
$21.58
|
111,100
|
$21.55
|
|
Options
granted
|
2,000
|
22.91
|
4,500
|
22.91
|
|
Options
exercised
|
(6,000)
|
16.67
|
(6,000)
|
16.67
|
|
Options
forfeited
|
(9,100)
|
20.32
|
(9,100)
|
20.32
|
|
Balance,
September 30, 2008
|
100,500
|
$22.01
|
100,500
|
$22.01
|
|
Options
Exercisable
|
60,000
|
60,000
|
|||
Options
Available For Grant
|
50,000
|
50,000
|
For
Awards Granted During
The
Three Month Period Ended
September
30,
|
For
Awards Granted During The
Six
Month Period Ended
September
30,
|
||||||
2009
|
2008
|
2009
|
2008
|
||||
Awards
granted
|
-
|
2,000
|
-
|
4,500
|
|||
Dividend
Yield
|
-
|
1.79%
|
-
|
1.76-1.79%
|
|||
Expected
Volatility
|
-
|
17.62%
|
-
|
17.62
-18.10%
|
|||
Risk-free
interest rate
|
-
|
3.88%
|
-
|
3.69-3.88%
|
|||
Expected
life
|
-
|
9.00
|
-
|
9.00
|
Grant
Date
|
Outstanding
Options
|
Option
Price
|
Expiration
Date
|
|||
09/01/03
|
2,400
|
$24.00
|
08/31/13
|
|||
12/01/03
|
3,000
|
$23.65
|
11/30/13
|
|||
01/01/04
|
5,500
|
$24.22
|
12/31/13
|
|||
03/08/04
|
13,000
|
$21.43
|
03/08/14
|
|||
06/07/04
|
2,000
|
$24.00
|
06/07/14
|
|||
01/01/05
|
20,500
|
$20.55
|
12/31/14
|
|||
01/01/06
|
4,000
|
$23.91
|
01/01/16
|
|||
08/24/06
|
14,000
|
$23.03
|
08/24/16
|
|||
05/24/07
|
2,000
|
$24.34
|
05/24/17
|
|||
07/09/07
|
1,000
|
$24.61
|
07/09/17
|
|||
10/01/07
|
2,000
|
$24.28
|
10/01/17
|
|||
01/01/08
|
17,000
|
$23.49
|
01/01/18
|
|||
05/19/08
|
2,500
|
$22.91
|
05/19/18
|
|||
07/01/08
|
2,000
|
$22.91
|
07/01/18
|
For
the Quarter Ended September 30, 2009
|
|||
Shares
|
Weighted-
Average
Exercise
Price
|
||
Balance,
Beginning of the Period
|
137,966
|
$
|
19.57
|
Granted
|
-
|
-
|
|
Exercised
|
-
|
-
|
|
Forfeited
|
-
|
-
|
|
Balance,
End of Year
|
137,966
|
$
|
19.57
|
For
the Six Months Ended
September
30, 2009
|
|||
Shares
|
Weighted-
Average
Exercise
Price
|
||
Balance,
Beginning of the Period
|
137,966
|
$
|
19.57
|
Granted
|
-
|
-
|
|
Exercised
|
-
|
-
|
|
Forfeited
|
-
|
-
|
|
Balance,
End of Year
|
137,966
|
$
|
19.57
|
Level
1
|
Valuation
is based upon quoted prices (unadjusted) in active markets for identical
assets or liabilities that the Company has the ability to access. Level 1
assets and liabilities include debt and equity securities and derivative
contracts that are traded in an active exchange market, as well as U.S.
Treasuries and money market funds.
|
Level
2
|
Valuation
is based upon quoted prices for similar assets and liabilities in active
markets, as well as inputs that are observable for the asset or liability
(other than quoted prices), such as interest rates, foreign exchange
rates, and yield curves that are observable at commonly quoted intervals.
Level 2 assets and liabilities include debt securities with quoted prices
that are traded less frequently than exchange-traded instruments,
mortgage-backed securities, municipal bonds, corporate debt securities and
derivative contracts whose value is determined using a pricing model with
inputs that are observable in the market or can be derived principally
from or corroborated by observable market data. This category generally
includes certain derivative contracts and impaired
loans.
|
Level
3
|
Valuation
is generated from model-based techniques that use at least one significant
assumption based on unobservable inputs for the asset or liability, which
are typically based on an entity’s own assumptions, as there is little, if
any, related market activity. In instances where the determination of the
fair value measurement is based on inputs from different levels of the
fair value hierarchy, the level in the fair value hierarchy within which
the entire fair value measurement falls is based on the lowest level input
that is significant to the fair value measurement in its entirety. The
assessment of the significance of a particular input to the fair value
measurement in its entirety requires judgment, and considers factors
specific to the asset or liability.
|
Assets:
|
Level
1
|
Level
2
|
Level
3
|
Balance
At
September,
30 2009
|
Investment
Securities
Available-For-Sale-
|
-
|
$ 295,376,106
|
-
|
$ 295,376,106
|
Mortgage
Loans Held For Sale
|
-
|
5,834,107
|
-
|
5,834,107
|
Total
|
-
|
$ 301,210,213
|
-
|
$ 301,210,213
|
Liabilities:
|
||||
Mandatorily
Redeemable
Financial
Instrument
|
-
|
$ 1,644,312
|
-
|
$ 1,644,312
|
Total
|
-
|
$ 1,644,312
|
-
|
$ 1,644,312
|
Assets:
|
Level
1
|
Level
2
|
Level
3
|
Balance
At
September,
30 2009
|
Goodwill
|
-
|
$ -
|
$ 1,199,754
|
$ 1,199,754
|
Intangible
Assets
|
-
|
-
|
294,500
|
294,500
|
Impaired
Loans
|
-
|
31,084,911
|
6,199,389
|
37,284,300
|
Foreclosed
Assets
|
-
|
2,647,280
|
-
|
2,647,280
|
Total
|
-
|
$ 33,732,191
|
$ 7,693,643
|
$ 41,425,834
|
September
30, 2009
|
March
31, 2009
|
|||||||
Carrying
Amount
|
Estimated
Fair
Value
|
Carrying
Amount
|
Estimated
Fair
Value
|
|||||
(In
Thousands)
|
||||||||
Financial
Assets:
|
||||||||
Cash
And Cash Equivalents
|
$
|
7,839
|
$
|
7,839
|
$
|
6,562
|
$
|
6,562
|
Investment
And Mortgage-Back Securities
|
320,059
|
321,242
|
314,099
|
315,325
|
||||
Loans Receivable, Net | 599,657 | 598,824 | 611,090 | 623,362 | ||||
FHLB
Stock
|
12,624
|
12,624
|
12,663
|
12,663
|
||||
Financial
Liabilities:
|
||||||||
Deposits:
|
||||||||
Checking,
Savings, And Money Market Accounts
|
$
|
284,625
|
$
|
284,625
|
$
|
272,363
|
$
|
272,363
|
Certificate Accounts | 377,790 | 385,021 | 389,351 | 395,647 | ||||
Advances From FHLB | 199,411 | 208,950 | 218,998 | 225,852 | ||||
Term
Auction Facility Borrowings
|
25,000
|
25,000
|
10,000
|
10,000
|
||||
Other
Borrowed Money
|
15,583
|
15,583
|
16,056
|
16,056
|
||||
Junior
Subordinated Debentures
|
5,155
|
5,155
|
5,155
|
5,155
|
||||
Mandatorily
Redeemable Financial Instrument
|
1,644
|
1,644
|
1,600
|
1,600
|
September 30,
2009
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||
FHLB
Securities
|
$
|
20,735,001
|
$
|
320,520
|
$
|
51,339
|
$
|
21,004,182
|
Federal
Farm Credit Securities
|
9,842,230
|
100,176
|
-
|
9,942,406
|
||||
FNMA
Bonds
|
3,998,500
|
8,130
|
870
|
4,005,760
|
||||
Small
Business Administration (“SBA”) Bonds
|
14,187,770
|
165,290
|
54,627
|
14,298,433
|
||||
Taxable
Municipal Bonds
|
5,241,407
|
92,930
|
-
|
5,334,337
|
||||
Mortgage-Backed
Securities
|
233,585,979
|
7,313,698
|
168,689
|
240,730,988
|
||||
Equity
Securities
|
102,938
|
-
|
42,938
|
60,000
|
||||
Total
|
$
|
287,693,825
|
$
|
8,000,744
|
$
|
318,463
|
$
|
295,376,106
|
March 31,
2009
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
value
|
||||
FHLB
Securities
|
$
|
15,401,116
|
$
|
428,886
|
$
|
18,450
|
$
|
15,811,552
|
Federal
Farm Credit Securities
|
14,521,626
|
121,699
|
8,855
|
14,634,470
|
||||
FNMA
Bonds
|
2,000,000
|
7,810
|
-
|
2,007,810
|
||||
SBA
Bonds
|
3,319,651
|
65,119
|
18,201
|
3,366,569
|
||||
Taxable
Municipal Bond
|
1,019,781
|
26,818
|
-
|
1,046,599
|
||||
Mortgage-Backed
Securities
|
240,322,316
|
5,718,587
|
112,668
|
245,928,235
|
||||
Equity
Securities
|
102,938
|
-
|
65,438
|
37,500
|
||||
$
|
276,687,428
|
$
|
6,368,919
|
$
|
223,612
|
$
|
282,832,735
|
|
Amortized
Cost
|
Fair
Value
|
|||
Less
Than One Year
|
$
|
-
|
$
|
-
|
One
– Five Years
|
4,891,535
|
5,029,663
|
||
Over
Five – Ten Years
|
23,321,223
|
23,445,679
|
||
After
Ten Years
|
25,895,088
|
26,169,776
|
||
Mortgage-Backed
Securities
|
233,585,979
|
240,730,988
|
||
$
|
287,693,825
|
$
|
295,376,106
|
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||
FHLB
Securities
|
$
|
7,497,153
|
$
|
51,339
|
$
|
-
|
$
|
-
|
$
|
7,497,153
|
$
|
51,339
|
Mortgage-Backed
Securities
|
21,838,315
|
166,601
|
458,000
|
2,088
|
22,296,315
|
168,689
|
||||||
SBA
Bonds
|
2,988,547
|
54,627
|
-
|
-
|
2,988,547
|
54,627
|
||||||
FNMA
Bonds
|
998,130
|
870
|
-
|
-
|
998,130
|
870
|
||||||
Equity
Securities
|
-
|
-
|
60,000
|
42,938
|
60,000
|
42,938
|
||||||
$
|
33,322,145
|
$
|
273,437
|
$
|
518,000
|
$
|
45,026
|
$
|
33,840,145
|
$
|
318,463
|
September 30,
2009
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||
FHLB
Securities
|
$
|
5,000,000
|
$
|
326,250
|
$
|
5,940
|
$
|
5,320,310
|
Federal
Farm Credit Securities
|
1,000,000
|
5,310
|
-
|
1,005,310
|
||||
SBA
Bonds
|
5,099,754
|
271,742
|
-
|
5,371,496
|
||||
Mortgage-Backed
Securities
|
13,427,874
|
585,779
|
-
|
14,013,653
|
||||
Equity
Securities
|
155,000
|
-
|
-
|
155,000
|
||||
Total
|
$
|
24,682,628
|
$
|
1,189,081
|
$
|
5,940
|
$
|
25,865,769
|
March 31,
2009
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||
FHLB
Securities
|
$
|
7,000,000
|
$
|
371,260
|
$
|
8,750
|
$
|
7,362,510
|
Federal
Farm Credit Securities
|
1,000,000
|
19,060
|
-
|
1,019,060
|
||||
SBA
Bonds
|
5,355,028
|
336,242
|
-
|
5,691,270
|
||||
Mortgage-Backed
Securities
|
17,755,838
|
508,729
|
-
|
18,264,567
|
||||
Equity
Securities
|
155,000
|
-
|
-
|
155,000
|
||||
Total
|
$
|
31,265,866
|
$
|
1,235,291
|
$
|
8,750
|
$
|
32,492,407
|
Amortized
Cost
|
Fair
Value
|
|||
Less
Than One Year
|
$
|
2,000,000
|
$
|
2,045,310
|
One
– Five Years
|
4,523,679
|
4,867,446
|
||
Over
Five – Ten Years
|
-
|
-
|
||
More
Than Ten Years
|
4,731,075
|
4,939,360
|
||
Mortgage-Backed
Securities
|
13,427,874
|
14,013,653
|
||
$
|
24,682,628
|
$
|
25,865,769
|
|
September
30, 2009
|
March
31, 2009
|
|||
Residential
Real Estate
|
$
|
118,771,235
|
$
|
126,980,894
|
Consumer
|
69,493,528
|
69,025,082
|
||
Commercial
Business
|
21,434,612
|
21,032,000
|
||
Commercial
Real Estate
|
401,249,166
|
404,403,186
|
||
Loans
Held For Sale
|
5,834,107
|
5,711,807
|
||
616,782,648
|
627,152,969
|
|||
Less:
|
||||
Allowance
For Possible Loan Loss
|
12,723,921
|
10,181,599
|
||
Loans
In Process
|
4,189,938
|
5,602,248
|
||
Deferred
Loan Fees
|
211,429
|
279,249
|
||
17,125,288
|
16,063,096
|
|||
$
|
599,657,360
|
$
|
611,089,873
|
Increase
(Decrease)
|
||||||||||||||||
September
30, 2009
|
March
31, 2009
|
Amount
|
Percent
|
|||||||||||||
Cash
And Cash Equivalents
|
$ | 7,838,722 | $ | 6,562,394 | $ | 1,276,328 | 19.4 | % | ||||||||
Investment
And Mortgage-
Backed
Securities –
Available
For Sale
|
295,376,106 | 282,832,735 | 12,543,371 | 4.4 | ||||||||||||
Investment
And Mortgage-
Backed
Securities – Held
To
Maturity
|
24,682,628 | 31,265,866 | (6,583,238 | ) | (21.1 | ) | ||||||||||
Loan
Receivable, Net
|
599,657,360 | 611,089,873 | (11,432,513 | ) | (1.9 | ) | ||||||||||
Premises
And Equipment,
Net
|
21,301,694 | 21,675,434 | (373,740 | ) | (1.7 | ) | ||||||||||
Bank
Owned Life Insurance
|
9,821,305 | 9,641,305 | 180,000 | 1.9 | ||||||||||||
Repossessed
Assets
Acquired
in Settlement of
Loans
|
2,647,280 | 1,985,172 | 662,108 | 33.4 | ||||||||||||
Goodwill
|
1,199,754 | 1,421,754 | (222,000 | ) | (15.6 | ) | ||||||||||
Other
Assets
|
3,098,436 | 1,657,189 | 1,441,247 | 87.0 |
Balance
|
||||||||||||||||||||||||||
September
30, 2009
|
March
31, 2009
|
Increase
(Decrease)
|
||||||||||||||||||||||||
Balance
|
Weighted
Rate
|
Balance
|
Weighted
Rate
|
Amount
|
Percent
|
|||||||||||||||||||||
Demand
Accounts:
|
||||||||||||||||||||||||||
Checking
|
$ | 104,279,635 | 0.20 | % | $ | 104,662,377 | 0.21 | % | $ | (382,742 | ) | (0.4 | )% | |||||||||||||
Money
Market
|
163,050,247 | 1.42 | 150,513,010 | 1.88 | 12,537,237 | 8.3 | ||||||||||||||||||||
Statement
Savings
Accounts
|
17,295,030 | 0.44 | 17,187,295 | 0.54 | 107,735 | 0.6 | ||||||||||||||||||||
Total
|
284,624,912 | 0.91 | 272,362,682 | 1.15 | 12,262,230 | 4.5 | ||||||||||||||||||||
Certificate
Accounts
|
||||||||||||||||||||||||||
0.00
– 1.99
|
% | 96,202,260 | 21,143,194 | 75,059,066 | 355.0 | |||||||||||||||||||||
2.00
– 2.99
|
% | 180,333,808 | 112,373,285 | 67,960,523 | 60.5 | |||||||||||||||||||||
3.00
– 3.99
|
% | 55,598,660 | 76,088,180 | (20,489,520 | ) | (26.9 | ) | |||||||||||||||||||
4.00
– 4.99
|
% | 40,159,037 | 173,467,216 | (133,308,179 | ) | (76.8 | ) | |||||||||||||||||||
5.00
– 5.99
|
% | 5,496,109 | 6,279,018 | (782,909 | ) | (12.5 | ) | |||||||||||||||||||
Total
|
377,789,874 | 2.63 | 389,350,893 | 3.51 | (11,561,019 | ) | (3.0 | ) | ||||||||||||||||||
Total
Deposits
|
$ | 662,414,786 | 1.89 | % | $ | 661,713,575 | 2.54 | % | $ | 701,211 | 0.1 | % |
Balance
|
||||||||||||||||||||||||
September
30, 2009
|
March
31, 2009
|
Increase
(Decrease)
|
||||||||||||||||||||||
Fiscal
Year Due:
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Percent
|
||||||||||||||||||
2010
|
$ | 61,500,000 | 0.41 | % | $ | 91,080,000 | 0.94 | % | $ | (29,580,000 | ) | (32.5 | %) | |||||||||||
2011
|
15,000,000 | 4.87 | 15,000,000 | 4.87 | - | - | ||||||||||||||||||
2012
|
34,700,000 | 3.66 | 24,700,000 | 4.56 | 10,000,000 | 40.5 | ||||||||||||||||||
2013
|
10,000,000 | 4.76 | 10,000,000 | 4.76 | - | - | ||||||||||||||||||
2014
|
20,000,000 | 3.84 | 20,000,000 | 3.84 | - | - | ||||||||||||||||||
Thereafter
|
58,210,529 | 4.30 | 58,218,434 | 4.30 | (7,905 | ) | - | |||||||||||||||||
Total
Advances
|
$ | 199,410,529 | 3.01 | % | $ | 218,998,434 | 2.95 | % | $ | (19,587,905 | ) | (8.9 | )% |
As
of September 30, 2009
|
||||||||||
Borrow Date
|
Maturity Date
|
Amount
|
Int. Rate
|
Type
|
Call
Dates
|
|||||
06/24/05
|
06/24/15
|
5,000,000
|
3
|
3.710%
|
1
Time Call
|
06/24/10
|
||||
11/10/05
|
11/10/15
|
5,000,000
|
4.400%
|
1
Time Call
|
11/10/09
|
|||||
11/23/05
|
11/23/15
|
5,000,000
|
3.933%
|
Multi-Call
|
05/25/08
and quarterly thereafter
|
|||||
12/14/05
|
12/14/11
|
5,000,000
|
4.640%
|
1
Time Call
|
12/14/09
|
|||||
01/12/06
|
01/12/16
|
5,000,000
|
4.450%
|
1
Time Call
|
01/12/11
|
|||||
03/01/06
|
03/03/14
|
5,000,000
|
4.720%
|
1
Time Call
|
03/03/10
|
|||||
06/02/06
|
06/02/16
|
5,000,000
|
5.160%
|
1
Time Call
|
06/02/11
|
|||||
07/11/06
|
07/11/16
|
5,000,000
|
4.800%
|
Multi-Call
|
07/11/08
and quarterly thereafter
|
|||||
11/29/06
|
11/29/16
|
5,000,000
|
4.025%
|
Multi-Call
|
05/29/08
and quarterly thereafter
|
|||||
01/19/07
|
07/21/14
|
5,000,000
|
4.885%
|
1
Time Call
|
07/21/11
|
|||||
03/09/07
|
03/09/12
|
4,700,000
|
4.286%
|
Multi-Call
|
06/09/08
and quarterly thereafter
|
|||||
05/24/07
|
05/24/17
|
7,900,000
|
4.375%
|
Multi-Call
|
05/27/08
and quarterly thereafter
|
|||||
07/25/07
|
07/25/17
|
5,000,000
|
4.396%
|
Multi-Call
|
07/25/08
and quarterly thereafter
|
|||||
11/16/07
|
11/16/11
|
5,000,000
|
3.745%
|
Multi-Call
|
11/17/08
and quarterly thereafter
|
|||||
08/28/08
|
08/28/13
|
5,000,000
|
3.113%
|
Multi-Call
|
08/30/10
and quarterly thereafter
|
|||||
08/28/08
|
08/28/18
|
5,000,000
|
3.385%
|
1
Time Call
|
08/29/11
|
|||||
At
September 30, 2009
|
At
March 31, 2009
|
$
Increase
|
%
Increase
|
|||||||||||||||||||||
Amount
|
Percent
(1)
|
Amount
|
Percent
(1)
|
(Decrease)
|
(Decrease)
|
|||||||||||||||||||
Loans
90 days or more past due or non-accrual loans:
|
||||||||||||||||||||||||
Residential real
estate
|
$ | 5,763,789 | 1.0 | % | $ | 1,112,023 | 0.2 | % | $ | 4,651,766 | 418.3 | % | ||||||||||||
Commercial business
|
2,643,048 | 0.4 | 2,808,080 | 0.5 | (165,032 | ) | (5.9 | ) | ||||||||||||||||
Commercial real estate
|
27,636,558 | 4.6 | 8,044,372 | 1.3 | 19,592,186 | 243.6 | ||||||||||||||||||
Consumer
|
885,638 | 0.1 | 955,683 | 0.1 | (70,045 | ) | (7.3 | ) | ||||||||||||||||
Total non-performing
loans
|
36,929,033 | 6.1 | 12,920,158 | 2.1 | 24,008,875 | 185.8 | ||||||||||||||||||
Other
non-performing assets
|
||||||||||||||||||||||||
Repossessed
assets
|
68,032 | 0.0 | 61,126 | 0.0 | 6,906 | 11.3 | ||||||||||||||||||
Real estate
owned
|
2,579,248 | 0.4 | 1,924,046 | 0.3 | 655,202 | 34.1 | ||||||||||||||||||
Total other non-performing
assets
|
2,647,280 | 0.4 | 1,985,172 | 0.3 | 662,108 | 33.4 | ||||||||||||||||||
Total
non-performing assets
|
$ | 39,576,313 | 6.5 | % | $ | 14,905,330 | 2.4 | % | $ | 24,670,983 | 165.5 | % | ||||||||||||
Total
non-performing assets as a percentage of total assets
|
4.0
|
%
|
1.5
|
%
|
Three
Months Ended September 30,
|
||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||
Average
Balance
|
Yield
|
Average
Balance
|
Yield
|
Decrease
In
Interest
And
Dividend
Income
From
2008
|
||||||||||||||||
Loans
Receivable, Net
|
$ | 603,256,400 | 5.63 | % | $ | 556,454,581 | 6.43 | % | $ | (445,225 | ) | |||||||||
Mortgage-Backed
Securities
|
236,591,334 | 4.28 | 215,390,697 | 4.87 | (91,108 | ) | ||||||||||||||
Investment
Securities
|
72,513,078 | 4.11 | 68,201,340 | 4.56 | (31,918 | ) | ||||||||||||||
Overnight
Time
|
1,148,770 | 0.04 | 1,443,202 | 1.08 | (3,783 | ) | ||||||||||||||
Total
Interest-Earning Assets
|
$ | 913,509,582 | 5.15 | % | $ | 841,489,820 | 5.87 | % | $ | (572,034 | ) |
Three
Months Ended September 30,
|
||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||
Average
Balance
|
Yield
|
Average
Balance
|
Yield
|
Decrease
In Interest Expense From 2008
|
||||||||||||||||
Now
And Money Market
Accounts
|
$ | 223,306,302 | 1.14 | % | $ | 199,983,451 | 1.93 | % | $ | (328,134 | ) | |||||||||
Statement
Savings Accounts
|
17,364,194 | 0.45 | 16,248,617 | 0.74 | (10,725 | ) | ||||||||||||||
Certificates
Accounts
|
381,334,642 | 2.94 | 336,056,478 | 4.25 | (762,928 | ) | ||||||||||||||
FHLB
Advances, TAF Advances
And
Other Borrowed Money
|
226,204,895 | 2.90 | 242,974,148 | 3.69 | (597,673 | ) | ||||||||||||||
Junior
Subordinated Debentures
|
5,155,000 | 4.68 | 5,155,000 | 5.81 | (14,569 | ) | ||||||||||||||
Total
Interest-Bearing Liabilities
|
$ | 853,365,033 | 2.42 | % | $ | 800,417,694 | 3.44 | % | $ | (1,714,029 | ) |
September
30, 2009
|
September
30, 2008
|
|||
Beginning
Balance
|
$
|
11,420,326
|
$
|
8,246,496
|
Provision
|
1,600,000
|
275,000
|
||
Charge-offs
|
(308,395)
|
(261,404)
|
||
Recoveries
|
11,990
|
3,243
|
||
Ending
Balance
|
$
|
12,723,921
|
$
|
8,263,335
|
Allowance
For Loan Losses As A Percentage Of Gross Loans Receivable,
Held
For Investment At The End Of The Period
|
2.10%
|
1.41%
|
||
Allowance
For Loan Losses As A Percentage Of Impaired Loans At The
End
Of The Period
|
34.13%
|
84.41%
|
||
Impaired
Loans
|
$
|
37,284,300
|
$
|
9,790,084
|
Non-accrual Loans And 90 Days Or More Past Due Loans As
A
Percentage Of Loans Receivable, Held For Investment At The
End Of The Period
|
6.09% |
1.55%
|
||
Gross
Loans Receivable, Held For Investment
|
$
|
606,547,174
|
$
|
585,826,823
|
Total
Loans Receivable, Net
|
$
|
599,657,360
|
$
|
579,132,177
|
Three
Months Ended September 30,
|
Increase
(Decrease)
|
||||||||||
2009
|
2008
|
Amounts
|
Percent
|
||||||||
Gain
On Sale Of Investments
|
$
|
323,234
|
$
|
25,035
|
$
|
298,199
|
1,191.1%
|
||||
Gain
On Sale Of Loans
|
162,858
|
109,035
|
53,823
|
49.4
|
|||||||
Service
Fees On Deposit Accounts
|
312,300
|
276,240
|
36,060
|
13.1
|
|||||||
Income
From Cash Value Of
Life
Insurance
|
90,000
|
92,746
|
(2,746)
|
(3.0)
|
|||||||
Commissions
From Insurance Agency
|
108,076
|
164,138
|
(56,062)
|
(34.2)
|
|||||||
Other
Agency Income
|
119,044
|
76,081
|
42,963
|
56.5
|
|||||||
Trust
Income
|
105,000
|
105,000
|
-
|
-
|
|||||||
Other
|
200,635
|
212,328
|
(11,693)
|
(5.5)
|
|||||||
Total
Non-Interest Income
|
$
|
1,421,147
|
$
|
1,060,603
|
$
|
360,544
|
34.0%
|
Three
Months Ended September 30,
|
Increase
(Decrease)
|
||||||||||
2009
|
2008
|
Amounts
|
Percent
|
||||||||
Salaries
And Employee Benefits
|
$
|
2,876,830
|
$
|
2,831,272
|
$
|
45,558
|
1.6%
|
||||
Occupancy
|
499,819
|
493,366
|
6,453
|
1.3
|
|||||||
Advertising
|
81,375
|
106,856
|
(25,481)
|
(23.8)
|
|||||||
Depreciation
And Maintenance
Of
Equipment
|
440,369
|
414,910
|
25,459
|
6.1
|
|||||||
FDIC
Insurance Premiums
|
351,000
|
191,535
|
159,465
|
83.3
|
|||||||
Amortization
of Intangibles
|
22,500
|
22,500
|
-
|
-
|
|||||||
Mandatorily
Redeemable Financial
Instrument
Valuation Expense
|
122,000
|
60,000
|
62,000
|
103.3
|
|||||||
Loss
On Sale Of Repossessed Assets
Acquired
In Settlement Of Loans
|
37,921
|
-
|
37,921
|
100.0
|
|||||||
Other
|
980,265
|
954,950
|
25,315
|
2.7
|
|||||||
Total
General And Administrative
Expenses
|
$
|
5,412,079
|
$
|
5,075,389
|
$
|
336,690
|
6.6%
|
Six
Months Ended September 30,
|
||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||
Average
Balance
|
Yield
|
Average
Balance
|
Yield
|
Increase
(Decrease)
In
Interest And
Dividend
Income
From
2008
|
||||||||||||||||
Loans
Receivable, Net
|
$ | 608,173,060 | 5.66 | % | $ | 541,857,885 | 6.45 | % | $ | (286,823 | ) | |||||||||
Mortgage-Backed
Securities
|
245,642,366 | 4.38 | 207,702,241 | 4.83 | 360,779 | |||||||||||||||
Investments
|
69,495,259 | 3.63 | 68,879,433 | 4.84 | (403,822 | ) | ||||||||||||||
Overnight
Time
|
879,746 | 0.08 | 1,216,422 | 1.49 | (8,747 | ) | ||||||||||||||
Total
Interest-Earning Assets
|
$ | 924,190,431 | 5.16 | % | $ | 819,655,981 | 5.90 | % | $ | (338,613 | ) | |||||||||
Six
Months Ended September 30,
|
||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||
Average
Balance
|
Yield
|
Average
Balance
|
Yield
|
Decrease
In
Interest
Expense
From
2008
|
||||||||||||||||
Now
And Money Market
Accounts
|
$ | 219,896,374 | 1.20 | % | $ | 203,195,729 | 1.86 | % | $ | (567,629 | ) | |||||||||
Statement
Savings Accounts
|
17,342,955 | 0.45 | 16,331,323 | 0.78 | (24,110 | ) | ||||||||||||||
Certificates
Accounts
|
385,256,776 | 3.16 | 329,316,486 | 4.39 | (1,151,149 | ) | ||||||||||||||
FHLB
Advances, TAF Advances
And
Other Borrowed Money
|
236,022,927 | 2.83 | 223,931,674 | 3.80 | (916,823 | ) | ||||||||||||||
Junior
Subordinated Debentures
|
5,155,000 | 4.81 | 5,155,000 | 5.78 | (24,928 | ) | ||||||||||||||
Total
Interest-Bearing Liabilities
|
$ | 863,674,032 | 2.52 | % | $ | 777,930,212 | 3.49 | % | $ | (2,684,639 | ) |
September
30, 2009
|
September
30, 2008
|
|||
Beginning
Balance
|
$
|
10,181,599
|
$
|
8,066,762
|
Provision
|
3,000,000
|
500,000
|
||
Charge-offs
|
(480,174)
|
(311,590)
|
||
Recoveries
|
22,496
|
8,163
|
||
Ending
Balance
|
$
|
12,723,921
|
$
|
8,263,335
|
Six
Months Ended September 30,
|
Increase
(Decrease)
|
||||||||||
2009
|
2008
|
Amounts
|
Percent
|
||||||||
Gain
On Sale Of Investments
|
$
|
374,125
|
$
|
126,440
|
$
|
247,685
|
195.9%
|
||||
Gain
On Sale Of Loans
|
596,465
|
227,718
|
368,747
|
161.9
|
|||||||
Service
Fees On Deposit Accounts
|
588,682
|
557,393
|
31,289
|
5.6
|
|||||||
Income
From Cash Value Of
Life
Insurance
|
180,000
|
178,492
|
1,508
|
0.8
|
|||||||
Commissions
From Insurance Agency
|
247,330
|
333,130
|
(85,800)
|
(25.8)
|
|||||||
Other
Agency Income
|
241,511
|
123,018
|
118,493
|
96.3
|
|||||||
Trust
Income
|
210,000
|
210,000
|
-
|
-
|
|||||||
Other
|
409,221
|
425,619
|
(16,398)
|
(3.9)
|
|||||||
Total
Non-Interest Income
|
$
|
2,847,334
|
$
|
2,181,810
|
$
|
665,524
|
30.5%
|
Six
Months Ended September 30,
|
Increase
(Decrease)
|
||||||||||
2009
|
2008
|
Amounts
|
Percent
|
||||||||
Salaries
And Employee Benefits
|
$
|
5,821,265
|
$
|
5,615,507
|
$
|
205,758
|
3.7%
|
||||
Occupancy
|
993,164
|
990,686
|
2,478
|
0.3
|
|||||||
Advertising
|
215,929
|
247,677
|
(31,748)
|
(12.8)
|
|||||||
Depreciation
And Maintenance
Of
Equipment
|
882,396
|
841,834
|
40,562
|
4.8
|
|||||||
FDIC
Insurance Premiums
|
1,107,000
|
347,345
|
759,655
|
218.7
|
|||||||
Amortization
of Intangibles
|
45,000
|
45,000
|
-
|
-
|
|||||||
Mandatorily
Redeemable Financial
Instrument
Valuation Expense
|
44,000
|
60,000
|
(16,000)
|
(26.7)
|
|||||||
Loss
(Gain)On Sale Of Repossessed
Assets
Acquired In Settlement Of
Loans
|
61,104
|
(13,694)
|
74,798
|
546.2
|
|||||||
Other
|
2,002,135
|
1,763,024
|
239,111
|
13.6
|
|||||||
Total
General And Administrative
Expenses
|
$
|
11,171,993
|
$
|
9,897,379
|
$
|
1,274,614
|
12.9%
|
(Dollars
in thousands)
|
Within
One
Month
|
After
One
Through
Three
Months
|
After
Three
Through
Twelve
Months
|
Within
One
Year
|
Greater
Than
One
Year
|
Total
|
|||||
Unused
lines of credit
|
$3,225
|
$818
|
$29,298
|
$33,341
|
$33,744
|
$67,085
|
|||||
Standby
letters of credit
|
278
|
262
|
165
|
705
|
107
|
812
|
|||||
Total
|
$3,503
|
$1,080
|
$29,463
|
$34,046
|
$33,851
|
$67,897
|
3.1 | Articles Of Incorporation, as amended (1) | ||
3.2 | Articles of Amendment, Including Certificate of Designation relating to the Company’s Fixed Rate Cumulative Perpetual Preferred Stock Series A(2) | ||
3.3 | Bylaws (3) | ||
4.1 | Instruments defining the rights of security holders, including indentures (4) | ||
4.2 | Warrant to purchase shares of the Company’s common stock dated December 19, 2008(2) | ||
4.3 | Letter Agreement (including Securities Purchase Agreement Standard Terms) dated December 19, 2008 between the Company and the United States Department of the Treasury (2) | ||
10.1 | 1993 Salary Continuation Agreements (5) | ||
10.2 | Amendment One to 1993 Salary Continuation Agreement (6) | ||
10.3 | Form of 2006 Salary Continuation Agreement(7) | ||
10.4 |
1999
Stock Option Plan (3)
|
||
10.5
|
1987 Stock Option Plan (5) | ||
10.6 | 2002 Stock Option Plan (8) | ||
10.7
|
2006
Stock Option Plan (9)
|
||
10.8 | 2004 Employee Stock Purchase Plan (11) | ||
10.9 | Incentive Compensation Plan (5) | ||
10.10 | Form of Security Federal Bank Salary Continuation Agreement (12) | ||
10.11 | Form of Security Federal Split Dollar Agreement (12) | ||
10.12 | 2008 Equity Incentive Plan (10) | ||
10.12 | Form of Compensation Modification Agreement (2) | ||
14
|
Code
of Ethics (13)
|
||
31.1 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act. | ||
31.2 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act. | ||
32 | Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act. |
(1)
|
Filed
on June 26, 1998, as an exhibit to the Company’s Proxy Statement and
incorporated herein by reference.
|
(2)
|
Incorporated
by reference to the Registrant’s Current Report on Form 8-K on December
23, 2008.
|
(3)
|
Filed
on March 2, 2000, as an exhibit to the Company’s Registration Statement on
Form S-8 and incorporated herein by
reference.
|
(4)
|
Filed
on August 12, 1987, as an exhibit to the Company’s Registration Statement
on Form 8-A and incorporated herein by
reference.
|
(5)
|
Filed
on June 28, 1993, as an exhibit to the Company’s Annual Report on Form
10-KSB and incorporated herein by reference.
|
(6) | Filed
as an exhibit to the Company’s Quarterly Report on Form 10-QSB for the
quarter ended September 30, 1993 and
incorporated
herein by reference.
|
(7)
|
Filed
on May 24, 2006 as an exhibit to the Company’s Current Report on Form 8-K
dated May 18, 2006 and incorporated herein by
reference.
|
(8)
|
Filed
on June 19, 2002, as an exhibit to the Company’s Proxy Statement and
incorporated herein by reference.
|
(9)
|
Filed
on August 22, 2006, as an exhibit to the Company’s Registration Statement
on Form S-8 (Registration Statement No. 333-136813) and incorporated
herein by reference.
|
(10) | Filed on June 20, 2008, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference. |
(11) | Filed on June 18, 2004, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference |
(12) | Filed on May 24, 2006 as an exhibit to the Current Report on Form 8-K and incorporated herein by reference. |
(13) | Filed on June 27, 2008 as an exhibit to the Company’s Annual Report on Form 10-K and incorporated herein by reference. |
Date:
|
November
13, 2009
|
By:
|
/s/ Timothy W. Simmons | ||
Timothy
W. Simmons
|
|||||
President
|
|||||
Duly
Authorized Representative
|
Date:
|
November13,
2009
|
By:
|
/s/ Roy G. Lindburg | ||
Roy
G. Lindburg
|
|||||
CFO
|
|||||
Duly
Authorized Representative
|
41
|