|
x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
o
|
TRANSITION
REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Stewardship
Financial Corporation
|
(Exact
name of registrant as specified in its
charter)
|
New Jersey
|
22-3351447
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification No.)
|
incorporation
or organization)
|
630 Godwin Avenue, Midland
Park, NJ
|
07432
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(201) 444-7100
|
(Registrant’s
telephone number, including area
code)
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer o (Do
not check if a smaller reporting company)
|
Smaller
reporting company x
|
PAGE
|
||
NUMBER
|
||
PART I -
|
CONSOLIDATED FINANCIAL
INFORMATION
|
|
1
|
||
2
|
||
3
|
||
4
|
||
5 -
6
|
||
7 -
18
|
||
19
- 27
|
||
28
|
||
28
|
||
PART II -
|
OTHER INFORMATION
|
|
29
|
||
30
|
||
31
|
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Assets
|
|
|||||||
|
||||||||
Cash
and due from banks
|
$ | 16,396,000 | $ | 8,840,000 | ||||
Other
interest-earning assets
|
56,000 | 31,000 | ||||||
Federal
funds sold
|
3,000,000 | - | ||||||
Cash
and cash equivalents
|
19,452,000 | 8,871,000 | ||||||
Securities
available for sale
|
116,009,000 | 103,026,000 | ||||||
Securities
held to maturity; estimated fair value of $59,182,000 (2010) and
|
||||||||
$68,765,000
(2009)
|
56,836,000 | 67,717,000 | ||||||
FHLB-NY
stock, at cost
|
2,497,000 | 3,227,000 | ||||||
Loans,
net of allowance for loan losses of $8,745,000 (2010) and $6,920,000
(2009)
|
449,007,000 | 453,119,000 | ||||||
Mortgage
loans held for sale
|
3,059,000 | 660,000 | ||||||
Premises
and equipment, net
|
6,639,000 | 6,861,000 | ||||||
Accrued
interest receivable
|
2,852,000 | 3,167,000 | ||||||
Bank
owned life insurance
|
9,655,000 | 9,488,000 | ||||||
Other
assets
|
8,904,000 | 7,708,000 | ||||||
Total
assets
|
$ | 674,910,000 | $ | 663,844,000 | ||||
Liabilities
and stockholders' equity
|
||||||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 101,045,000 | $ | 88,427,000 | ||||
Interest-bearing
|
460,138,000 | 441,503,000 | ||||||
Total
deposits
|
561,183,000 | 529,930,000 | ||||||
Federal
Home Loan Bank of New York Advances
|
36,000,000 | 54,600,000 | ||||||
Subordinated
debentures
|
7,217,000 | 7,217,000 | ||||||
Securities
sold under agreements to repurchase
|
15,400,000 | 15,396,000 | ||||||
Accrued
interest payable
|
935,000 | 1,193,000 | ||||||
Accrued
expenses and other liabilities
|
1,477,000 | 1,997,000 | ||||||
Total
liabilities
|
622,212,000 | 610,333,000 | ||||||
Commitments
and contingencies
|
- | - | ||||||
Stockholders'
equity
|
||||||||
Preferred
stock, no par value; 2,500,000 shares authorized; 10,000
shares
|
||||||||
issued
and outstanding at June 30, 2010 and December 31, 2009.
|
||||||||
Liquidation
preference of $10,000,000
|
9,766,000 | 9,736,000 | ||||||
Common
stock, no par value; 10,000,000 shares authorized;
|
||||||||
5,846,928
and 5,834,515 shares issued: 5,842,367 and 5,834,515
shares
|
||||||||
outstanding
at June 30, 2010 and December 31, 2009, respectively
|
40,501,000 | 40,415,000 | ||||||
Treasury
stock, 4,561 shares outstanding at June 30, 2010
|
(43,000 | ) | - | |||||
Retained
earnings
|
1,397,000 | 2,922,000 | ||||||
Accumulated
other comprehensive income, net
|
1,077,000 | 438,000 | ||||||
Total
stockholders' equity
|
52,698,000 | 53,511,000 | ||||||
Total
liabilities and stockholders' equity
|
$ | 674,910,000 | $ | 663,844,000 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest
income:
|
||||||||||||||||
Loans
|
$ | 6,693,000 | $ | 6,658,000 | $ | 13,567,000 | $ | 13,266,000 | ||||||||
Securities
held to maturity
|
||||||||||||||||
Taxable
|
376,000 | 519,000 | 798,000 | 960,000 | ||||||||||||
Non-taxable
|
233,000 | 219,000 | 464,000 | 432,000 | ||||||||||||
Securities
available for sale
|
||||||||||||||||
Taxable
|
825,000 | 1,066,000 | 1,705,000 | 2,203,000 | ||||||||||||
Non-taxable
|
38,000 | 52,000 | 87,000 | 104,000 | ||||||||||||
FHLB
dividends
|
32,000 | 26,000 | 69,000 | 45,000 | ||||||||||||
Other
interest-earning assets
|
4,000 | 2,000 | 6,000 | 5,000 | ||||||||||||
Total
interest income
|
8,201,000 | 8,542,000 | 16,696,000 | 17,015,000 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
1,729,000 | 2,203,000 | 3,549,000 | 4,575,000 | ||||||||||||
Borrowed
money
|
549,000 | 519,000 | 1,045,000 | 1,022,000 | ||||||||||||
Total
interest expense
|
2,278,000 | 2,722,000 | 4,594,000 | 5,597,000 | ||||||||||||
Net
interest income before provision for loan losses
|
5,923,000 | 5,820,000 | 12,102,000 | 11,418,000 | ||||||||||||
Provision
for loan losses
|
4,705,000 | 1,025,000 | 6,255,000 | 1,175,000 | ||||||||||||
Net
interest income after provision for loan losses
|
1,218,000 | 4,795,000 | 5,847,000 | 10,243,000 | ||||||||||||
Noninterest
income:
|
||||||||||||||||
Fees
and service charges
|
503,000 | 474,000 | 972,000 | 870,000 | ||||||||||||
Bank
owned life insurance
|
81,000 | 76,000 | 167,000 | 159,000 | ||||||||||||
Gain
on sales of mortgage loans
|
66,000 | 73,000 | 121,000 | 84,000 | ||||||||||||
Gain
on calls and sales of securities
|
474,000 | 214,000 | 802,000 | 253,000 | ||||||||||||
Merchant
processing
|
- | - | - | 118,000 | ||||||||||||
Other
|
123,000 | 112,000 | 196,000 | 172,000 | ||||||||||||
Total
noninterest income
|
1,247,000 | 949,000 | 2,258,000 | 1,656,000 | ||||||||||||
Noninterest
expenses:
|
||||||||||||||||
Salaries
and employee benefits
|
1,948,000 | 2,077,000 | 4,074,000 | 4,136,000 | ||||||||||||
Occupancy,
net
|
481,000 | 473,000 | 970,000 | 945,000 | ||||||||||||
Equipment
|
277,000 | 253,000 | 586,000 | 518,000 | ||||||||||||
Data
processing
|
327,000 | 277,000 | 652,000 | 582,000 | ||||||||||||
FDIC
insurance premium
|
237,000 | 519,000 | 461,000 | 689,000 | ||||||||||||
Merchant
processing
|
- | - | - | 108,000 | ||||||||||||
Other
|
901,000 | 1,085,000 | 1,852,000 | 2,114,000 | ||||||||||||
Total
noninterest expenses
|
4,171,000 | 4,684,000 | 8,595,000 | 9,092,000 | ||||||||||||
(Loss)
income before income tax (benefit) expense
|
(1,706,000 | ) | 1,060,000 | (490,000 | ) | 2,807,000 | ||||||||||
Income
tax (benefit) expense
|
(641,000 | ) | 280,000 | (296,000 | ) | 840,000 | ||||||||||
Net
(loss) income
|
(1,065,000 | ) | 780,000 | (194,000 | ) | 1,967,000 | ||||||||||
Dividends
on preferred stock and accretion
|
138,000 | 137,000 | 275,000 | 229,000 | ||||||||||||
Net
(loss) income available to common stockholders
|
$ | (1,203,000 | ) | $ | 643,000 | $ | (469,000 | ) | $ | 1,738,000 | ||||||
Basic
(loss) earnings per common share
|
$ | (0.21 | ) | $ | 0.11 | $ | (0.08 | ) | $ | 0.30 | ||||||
Diluted
(loss) earnings per common share
|
$ | (0.21 | ) | $ | 0.11 | $ | (0.08 | ) | $ | 0.30 |
Six
Months Ended June 30, 2010
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
Comprehensive
|
||||||||||||||||||||||||||||
Preferred
|
Common
Stock
|
Treasury
|
Retained
|
Gain
(Loss),
|
||||||||||||||||||||||||
Stock
|
Shares
|
Amount
|
Stock
|
Earnings
|
Net
|
Total
|
||||||||||||||||||||||
Balance
-- December 31, 2009
|
$ | 9,736,000 | 5,834,515 | $ | 40,415,000 | $ | - | $ | 2,922,000 | $ | 438,000 | $ | 53,511,000 | |||||||||||||||
Cash
dividends paid on common stock
|
- | - | - | - | (1,051,000 | ) | - | (1,051,000 | ) | |||||||||||||||||||
Payment
of discount on dividend
|
||||||||||||||||||||||||||||
reinvestment
plan
|
- | - | (19,000 | ) | - | - | - | (19,000 | ) | |||||||||||||||||||
Cash
dividends accrued on preferred stock
|
- | - | - | - | (250,000 | ) | - | (250,000 | ) | |||||||||||||||||||
Common
stock issued under stock plans
|
- | 3,037 | 24,000 | - | - | - | 24,000 | |||||||||||||||||||||
Stock
option compensation expense
|
- | - | 26,000 | - | - | - | 26,000 | |||||||||||||||||||||
Stock
options exercised
|
- | 9,376 | 55,000 | (43,000 | ) | - | - | 12,000 | ||||||||||||||||||||
Accretion
of discount on preferred stock
|
25,000 | - | - | - | (25,000 | ) | - | |||||||||||||||||||||
Amortization
of issuance costs
|
5,000 | - | - | - | (5,000 | ) | - | |||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
loss
|
- | - | - | - | (194,000 | ) | - | (194,000 | ) | |||||||||||||||||||
Change
in unrealized holding gains on
|
||||||||||||||||||||||||||||
securities
available for sale arising during
|
||||||||||||||||||||||||||||
the
period (net tax expense of $317,000)
|
- | - | - | - | - | 486,000 | 486,000 | |||||||||||||||||||||
Reclassification
adjustment for gains in
|
||||||||||||||||||||||||||||
net
income (net of taxes of $271,000)
|
- | - | - | - | - | 433,000 | 433,000 | |||||||||||||||||||||
Change
in fair value of interest rate
|
||||||||||||||||||||||||||||
swap
(net of tax benefit of $186,000)
|
- | - | - | - | - | (280,000 | ) | (280,000 | ) | |||||||||||||||||||
Total
comprehensive income
|
445,000 | |||||||||||||||||||||||||||
Balance
-- June 30, 2010
|
$ | 9,766,000 | 5,846,928 | $ | 40,501,000 | $ | (43,000 | ) | $ | 1,397,000 | $ | 1,077,000 | $ | 52,698,000 | ||||||||||||||
Six
Months Ended June 30, 2009
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
Comprehensive
|
||||||||||||||||||||||||||||
Preferred
|
Common
Stock
|
Treasury
|
Retained
|
Gain
(Loss),
|
||||||||||||||||||||||||
Stock
|
Shares
|
Amount
|
Stock
|
Earnings
|
Net
|
Total
|
||||||||||||||||||||||
Balance
-- December 31, 2008
|
$ | - | 5,575,095 | $ | 37,962,000 | $ | (272,000 | ) | $ | 4,383,000 | $ | 723,000 | $ | 42,796,000 | ||||||||||||||
Proceeds
from issuance of preferred
|
||||||||||||||||||||||||||||
stock
and a warrant
|
9,731,000 | 269,000 | 10,000,000 | |||||||||||||||||||||||||
Preferred
stock issuance costs
|
(48,000 | ) | (48,000 | ) | ||||||||||||||||||||||||
Cash
dividends paid on common stock
|
- | - | - | - | (1,055,000 | ) | - | (1,055,000 | ) | |||||||||||||||||||
Payment
of discount on dividend
|
||||||||||||||||||||||||||||
reinvestment
plan
|
- | - | (23,000 | ) | - | - | - | (23,000 | ) | |||||||||||||||||||
Cash
dividends accrued on preferred stock
|
- | - | - | - | (209,000 | ) | - | (209,000 | ) | |||||||||||||||||||
Common
stock issued under stock plans
|
- | 2,288 | 22,000 | - | - | - | 22,000 | |||||||||||||||||||||
Stock
option compensation expense
|
- | - | 24,000 | - | - | - | 24,000 | |||||||||||||||||||||
Stock
options exercised
|
- | 7,330 | 40,000 | (32,000 | ) | - | - | 8,000 | ||||||||||||||||||||
Repurchase
of common stock
|
- | - | - | (75,000 | ) | - | - | (75,000 | ) | |||||||||||||||||||
Accretion
of discount on preferred stock
|
20,000 | - | - | - | (20,000 | ) | - | |||||||||||||||||||||
Amortization
of issuance costs
|
4,000 | - | - | - | (4,000 | ) | - | |||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
- | - | - | - | 1,967,000 | - | 1,967,000 | |||||||||||||||||||||
Change
in unrealized holding gains on
|
||||||||||||||||||||||||||||
securities
available for sale arising during
|
||||||||||||||||||||||||||||
the
period (net tax expense of $177,000)
|
- | - | - | - | - | (297,000 | ) | (297,000 | ) | |||||||||||||||||||
Reclassification
adjustment for gains in
|
||||||||||||||||||||||||||||
net
income (net of taxes of $15,000)
|
- | - | - | - | - | 153,000 | 153,000 | |||||||||||||||||||||
Change
in fair value of interest rate
|
||||||||||||||||||||||||||||
swap
(net of tax benefit of $39,000)
|
(59,000 | ) | (59,000 | ) | ||||||||||||||||||||||||
Total
comprehensive income
|
1,764,000 | |||||||||||||||||||||||||||
Balance
-- June 30, 2009
|
$ | 9,707,000 | 5,584,713 | $ | 38,294,000 | $ | (379,000 | ) | $ | 5,062,000 | $ | 520,000 | $ | 53,204,000 |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net
(loss) income
|
$ | (1,065,000 | ) | $ | 780,000 | $ | (194,000 | ) | $ | 1,967,000 | ||||||
Other
comprehensive income (loss):
|
||||||||||||||||
Change
in unrealized holding gains on securities
|
||||||||||||||||
available
for sale arising during the period
|
1,437,000 | (509,000 | ) | 2,309,000 | 21,000 | |||||||||||
Reclassification
adjustment for gains in net income
|
474,000 | 214,000 | 802,000 | 253,000 | ||||||||||||
Net
unrealized gains
|
963,000 | (723,000 | ) | 1,507,000 | (232,000 | ) | ||||||||||
Tax
effect
|
381,000 | (280,000 | ) | 588,000 | (88,000 | ) | ||||||||||
Net
unrealized gains, net of tax amount
|
582,000 | (443,000 | ) | 919,000 | (144,000 | ) | ||||||||||
Change
in fair value of interest rate swap
|
(291,000 | ) | (99,000 | ) | (466,000 | ) | (99,000 | ) | ||||||||
Tax
effect
|
(116,000 | ) | (40,000 | ) | (186,000 | ) | (40,000 | ) | ||||||||
Change
in fair value of interest rate swap,
|
||||||||||||||||
net
of tax amount
|
(175,000 | ) | (59,000 | ) | (280,000 | ) | (59,000 | ) | ||||||||
Total
other comprehensive income (loss)
|
407,000 | (502,000 | ) | 639,000 | (203,000 | ) | ||||||||||
Total
comprehensive (loss) income
|
$ | (658,000 | ) | $ | 278,000 | $ | 445,000 | $ | 1,764,000 |
6/30/2010
|
12/31/2009
|
|||||||
Unrealized
gain on securities available for sale
|
$ | 1,512,000 | $ | 593,000 | ||||
Unrealized
loss on fair value of interest rate swap
|
(435,000 | ) | (155,000 | ) |
Six
Months Ended
|
||||||||
June 30,
|
||||||||
2010
|
2009
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
(loss) income
|
$ | (194,000 | ) | $ | 1,967,000 | |||
Adjustments
to reconcile net (loss) income to
|
||||||||
net
cash provided by operating activities:
|
||||||||
Depreciation
and amortization of premises and equipment
|
416,000 | 423,000 | ||||||
Amortization
of premiums and accretion of discounts, net
|
370,000 | 305,000 | ||||||
Accretion
of deferred loan fees
|
(55,000 | ) | (109,000 | ) | ||||
Provision
for loan losses
|
6,255,000 | 1,175,000 | ||||||
Originations
of mortgage loans held for sale
|
(14,952,000 | ) | (15,548,000 | ) | ||||
Proceeds
from sale of mortgage loans
|
12,674,000 | 9,647,000 | ||||||
Gain
on sales of mortgage loans
|
(121,000 | ) | (84,000 | ) | ||||
Gain
on calls and sales of securities
|
(802,000 | ) | (253,000 | ) | ||||
Deferred
income tax benefit
|
(791,000 | ) | (510,000 | ) | ||||
Nonqualified
stock option expense
|
26,000 | 24,000 | ||||||
Increase
in bank owned life insurance
|
(167,000 | ) | (159,000 | ) | ||||
Decrease
in accrued interest receivable
|
315,000 | 173,000 | ||||||
(Increase)
decrease in other assets
|
(993,000 | ) | 602,000 | |||||
(Decrease)
increase in accrued interest payable
|
(258,000 | ) | 20,000 | |||||
(Decrease)
increase in other liabilities
|
(800,000 | ) | 244,000 | |||||
Net
cash provided by (used in) operating activities
|
923,000 | (2,083,000 | ) | |||||
Cash
flows from investing activities:
|
||||||||
Purchase
of securities available for sale
|
(58,544,000 | ) | (35,324,000 | ) | ||||
Proceeds
from maturities and principal repayments on securities available for
sale
|
7,708,000 | 7,753,000 | ||||||
Proceeds
from calls and sales on securities available for sale
|
39,951,000 | 31,854,000 | ||||||
Purchase
of securities held to maturity
|
(5,566,000 | ) | (37,268,000 | ) | ||||
Proceeds
from maturities and principal repayments on securities held to
maturity
|
2,553,000 | 2,961,000 | ||||||
Proceeds
from calls on securities held to maturity
|
13,735,000 | 8,465,000 | ||||||
Sale
(purchase) of FHLB-NY stock
|
730,000 | (118,000 | ) | |||||
Net
increase in loans
|
(2,088,000 | ) | (630,000 | ) | ||||
Additions
to premises and equipment
|
(194,000 | ) | (109,000 | ) | ||||
Net
cash used in investing activities
|
(1,715,000 | ) | (22,416,000 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
increase in noninterest-bearing deposits
|
12,618,000 | 634,000 | ||||||
Net
increase in interest-bearing deposits
|
18,635,000 | 11,335,000 | ||||||
Net
increase in securities sold under agreements to repurchase
|
4,000 | 3,000 | ||||||
Proceeds
from term borrowings
|
- | 6,000,000 | ||||||
Net
decrease in short term borrowings
|
(18,600,000 | ) | (3,600,000 | ) | ||||
Proceeds
from issuance of preferred stock and warrants
|
- | 9,951,000 | ||||||
Cash
dividends paid on common stock
|
(1,051,000 | ) | (1,055,000 | ) | ||||
Cash
dividends paid on preferred stock
|
(250,000 | ) | (146,000 | ) | ||||
Payment
of discount on dividend reinvestment plan
|
(19,000 | ) | (23,000 | ) | ||||
Purchase
of treasury stock
|
- | (75,000 | ) | |||||
Options
exercised
|
12,000 | 8,000 | ||||||
Issuance
of common stock
|
24,000 | 22,000 | ||||||
Net
cash provided by financing activities
|
11,373,000 | 23,054,000 | ||||||
Net
increase (decrease) in cash and cash equivalents
|
10,581,000 | (1,445,000 | ) | |||||
Cash
and cash equivalents - beginning
|
8,871,000 | 12,814,000 | ||||||
Cash
and cash equivalents - ending
|
$ | 19,452,000 | $ | 11,369,000 |
Six
Months Ended
|
||||||||
June 30,
|
||||||||
2010
|
2009
|
|||||||
Supplemental
disclosures of cash flow information:
|
|
|
||||||
Cash
paid during the period for interest
|
$ | 4,852,000 | $ | 5,577,000 | ||||
Cash
paid during the period for income taxes
|
$ | 1,930,000 | $ | 538,000 | ||||
Noncash
investing activities - security purchases due brokers
|
$ | - | $ | 2,328,000 |
June 30,
2010
|
||||||||||||||||
Amortized
|
Gross
Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S.
Treasury
|
$ | 8,640,000 | $ | 107,000 | $ | 1,000 | $ | 8,746,000 | ||||||||
U.S.
government-sponsored agencies
|
25,580,000 | 301,000 | - | 25,881,000 | ||||||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions
|
3,705,000 | 108,000 | - | 3,813,000 | ||||||||||||
Mortgage-backed
securities - residential
|
72,461,000 | 1,940,000 | 57,000 | 74,344,000 | ||||||||||||
Other
equity investments
|
3,134,000 | 113,000 | 22,000 | 3,225,000 | ||||||||||||
$ | 113,520,000 | $ | 2,569,000 | $ | 80,000 | $ | 116,009,000 | |||||||||
December 31,
2009
|
||||||||||||||||
Amortized
|
Gross
Unrealized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S.
Treasury
|
$ | - | $ | - | $ | - | $ | - | ||||||||
U.S.
government-sponsored agencies
|
32,642,000 | 92,000 | 448,000 | 32,286,000 | ||||||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions
|
5,284,000 | 122,000 | 9,000 | 5,397,000 | ||||||||||||
Mortgage-backed
securities - residential
|
61,060,000 | 1,423,000 | 255,000 | 62,228,000 | ||||||||||||
Other
equity investments
|
3,058,000 | 66,000 | 9,000 | 3,115,000 | ||||||||||||
$ | 102,044,000 | $ | 1,703,000 | $ | 721,000 | $ | 103,026,000 |
June 30,
2010
|
||||||||||||||||
Amortized
|
Gross
Unrecognized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S.
government-sponsored agencies
|
$ | 11,336,000 | $ | 201,000 | $ | - | $ | 11,537,000 | ||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions
|
27,274,000 | 1,154,000 | 27,000 | 28,401,000 | ||||||||||||
Mortgage-backed
securities - residential
|
18,226,000 | 1,018,000 | - | 19,244,000 | ||||||||||||
$ | 56,836,000 | $ | 2,373,000 | $ | 27,000 | $ | 59,182,000 | |||||||||
December 31,
2009
|
||||||||||||||||
Amortized
|
Gross
Unrecognized
|
Fair
|
||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
U.S.
government-sponsored agencies
|
$ | 19,921,000 | $ | 90,000 | $ | 351,000 | $ | 19,660,000 | ||||||||
Obligations
of state and political
|
||||||||||||||||
subdivisions
|
27,038,000 | 871,000 | 84,000 | 27,825,000 | ||||||||||||
Mortgage-backed
securities - residential
|
20,758,000 | 547,000 | 25,000 | 21,280,000 | ||||||||||||
$ | 67,717,000 | $ | 1,508,000 | $ | 460,000 | $ | 68,765,000 |
June 30,
2010
|
||||||||
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
Maturity
|
||||||||
Available
for sale
|
||||||||
Within
one year
|
$ | 302,000 | $ | 307,000 | ||||
After
one year, but within five years
|
28,346,000 | 28,672,000 | ||||||
After
five years, but within ten years
|
5,218,000 | 5,307,000 | ||||||
After
ten years
|
4,059,000 | 4,154,000 | ||||||
Mortgage-backed
securities - residential
|
72,461,000 | 74,344,000 | ||||||
Total
|
$ | 110,386,000 | $ | 112,784,000 | ||||
Held
to maturity
|
||||||||
Within
one year
|
$ | 1,552,000 | $ | 1,573,000 | ||||
After
one year, but within five years
|
13,790,000 | 14,222,000 | ||||||
After
five years, but within ten years
|
14,289,000 | 14,907,000 | ||||||
After
ten years
|
8,979,000 | 9,236,000 | ||||||
Mortgage-backed
securities - residential
|
18,226,000 | 19,244,000 | ||||||
Total
|
$ | 56,836,000 | $ | 59,182,000 |
June
30, 2010
|
Less
than 12 Months
|
12
Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
Treasury
|
$ | 1,013,000 | $ | (1,000 | ) | $ | - | $ | - | $ | 1,013,000 | $ | (1,000 | ) | ||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
- | - | - | - | - | - | ||||||||||||||||||
Obligations
of state and
|
||||||||||||||||||||||||
political
subdivisions
|
- | - | 450,000 | - | 450,000 | - | ||||||||||||||||||
Mortgage-backed
|
||||||||||||||||||||||||
securities
- residential
|
10,170,000 | (57,000 | ) | - | - | 10,170,000 | (57,000 | ) | ||||||||||||||||
Other
equity investments
|
- | - | 54,000 | (22,000 | ) | 54,000 | (22,000 | ) | ||||||||||||||||
Total
temporarily
|
||||||||||||||||||||||||
impaired
securities
|
$ | 11,183,000 | $ | (58,000 | ) | $ | 504,000 | $ | (22,000 | ) | $ | 11,687,000 | $ | (80,000 | ) | |||||||||
December
31, 2009
|
Less
than 12 Months
|
12
Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
Treasury
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
23,282,000 | (361,000 | ) | 2,913,000 | (87,000 | ) | 26,195,000 | (448,000 | ) | |||||||||||||||
Obligations
of state and
|
||||||||||||||||||||||||
political
subdivisions
|
373,000 | (2,000 | ) | 443,000 | (7,000 | ) | 816,000 | (9,000 | ) | |||||||||||||||
Mortgage-backed
|
||||||||||||||||||||||||
securities
- residential
|
15,156,000 | (255,000 | ) | - | - | 15,156,000 | (255,000 | ) | ||||||||||||||||
Other
equity investments
|
- | - | 33,000 | (9,000 | ) | 33,000 | (9,000 | ) | ||||||||||||||||
Total
temporarily
|
||||||||||||||||||||||||
impaired
securities
|
$ | 38,811,000 | $ | (618,000 | ) | $ | 3,389,000 | $ | (103,000 | ) | $ | 42,200,000 | $ | (721,000 | ) | |||||||||
Held
to Maturity
|
||||||||||||||||||||||||
June
30, 2010
|
Less
than 12 Months
|
12
Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Obligations
of state and
|
||||||||||||||||||||||||
political
subdivisions
|
534,000 | (2,000 | ) | 1,400,000 | (25,000 | ) | 1,934,000 | (27,000 | ) | |||||||||||||||
Mortgage-backed
|
||||||||||||||||||||||||
securities
- residential
|
- | - | - | - | - | - | ||||||||||||||||||
Total
temporarily
|
||||||||||||||||||||||||
impaired
securities
|
$ | 534,000 | $ | (2,000 | ) | $ | 1,400,000 | $ | (25,000 | ) | $ | 1,934,000 | $ | (27,000 | ) | |||||||||
December
31, 2009
|
Less
than 12 Months
|
12
Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
U.S.
government-
|
||||||||||||||||||||||||
sponsored
agencies
|
$ | 12,529,000 | $ | (351,000 | ) | $ | - | $ | - | $ | 12,529,000 | $ | (351,000 | ) | ||||||||||
Obligations
of state and
|
||||||||||||||||||||||||
political
subdivisions
|
4,504,000 | (69,000 | ) | 401,000 | (15,000 | ) | 4,905,000 | (84,000 | ) | |||||||||||||||
Mortgage-backed
|
||||||||||||||||||||||||
securities
- residential
|
1,949,000 | (25,000 | ) | - | - | 1,949,000 | (25,000 | ) | ||||||||||||||||
Total
temporarily
|
||||||||||||||||||||||||
impaired
securities
|
$ | 18,982,000 | $ | (445,000 | ) | $ | 401,000 | $ | (15,000 | ) | $ | 19,383,000 | $ | (460,000 | ) |
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
|
|
|||||||
Mortgage
|
|
|
||||||
Residential
|
$ | 32,690,000 | $ | 36,246,000 | ||||
Commercial
|
252,851,000 | 246,212,000 | ||||||
Commercial
|
113,597,000 | 114,893,000 | ||||||
Home
Equity
|
21,412,000 | 21,779,000 | ||||||
Installment
|
37,204,000 | 41,006,000 | ||||||
Other
|
348,000 | 340,000 | ||||||
Total
loans
|
458,102,000 | 460,476,000 | ||||||
Less:
Deferred loan fees
|
350,000 | 437,000 | ||||||
Allowance
for loan losses
|
8,745,000 | 6,920,000 | ||||||
9,095,000 | 7,357,000 | |||||||
Loans,
net
|
$ | 449,007,000 | $ | 453,119,000 |
Six
Months Ended June 30,
|
||||||||
2010
|
2009
|
|||||||
|
||||||||
Balance,
beginning of period
|
$ | 6,920,000 | $ | 5,166,000 | ||||
Provision
charged to operations
|
6,255,000 | 1,175,000 | ||||||
Recoveries
of loans charged off
|
84,000 | 92,000 | ||||||
Loans
charged off
|
(4,514,000 | ) | (91,000 | ) | ||||
Balance,
end of period
|
$ | 8,745,000 | $ | 6,342,000 |
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Nonaccrual
loans
|
$ | 25,712,000 | $ | 19,656,000 | ||||
Loans
past due 90 days or more and accruing
|
- | 415,000 | ||||||
Restructured
loans
|
1,210,000 | 2,846,000 | ||||||
Total
nonperfoming loans
|
$ | 26,922,000 | $ | 22,917,000 |
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
|
|
|||||||
Impaired
loans
|
||||||||
With
related allowance for loan losses
|
$ | 15,743,000 | $ | 8,668,000 | ||||
Without
related allowance for loan losses
|
11,179,000 | 13,834,000 | ||||||
Total
impaired loans
|
$ | 26,922,000 | $ | 22,502,000 | ||||
Related
allowance for loan losses
|
$ | 1,913,000 | $ | 1,903,000 |
Notional
amount
|
$
7,000,000
|
||
Pay
rate
|
7.00%
|
||
Receive
rate
|
3
month LIBOR plus 2.95%
|
||
Maturity
|
March
17, 2016
|
||
Unrealized
loss
|
$724,000
|
The
Effect of Derivative Instruments on the Consolidated Income
Statement
|
|||||
Amount
of Loss, Net of Taxes,
|
|||||
Recognized
in OCI on Derivative
|
|||||
Cash
Flow Hedging Relationship
|
(Effective
Portion)
|
||||
For
the six months ended June 30,
|
|||||
2010
|
2009
|
||||
Cash
flow hedge
|
$
|
280,000
|
$
|
59,000
|
Fair
Value Measurements Using:
|
||||||||||||||||
Quoted
Prices in
|
Significant
|
|||||||||||||||
Active
Markets
|
Other
|
Significant
|
||||||||||||||
for
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Carrying
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
Value
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
At
June 30, 2010
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available
for sale securities
|
||||||||||||||||
U.S.
Treasuries
|
$ | 8,746,000 | $ | - | $ | 8,746,000 | $ | - | ||||||||
U.S.
government -
|
||||||||||||||||
sponsered
agencies
|
25,881,000 | - | 25,881,000 | - | ||||||||||||
Obligations
of state and
|
||||||||||||||||
political
subdivisions
|
3,813,000 | - | 3,813,000 | - | ||||||||||||
Mortgage-backed
|
||||||||||||||||
securities
- residential
|
74,344,000 | - | 74,344,000 | - | ||||||||||||
Other
equity investments
|
3,225,000 | - | 3,225,000 | - | ||||||||||||
Total
available for
|
||||||||||||||||
sale
securities
|
$ | 116,009,000 | $ | - | $ | 116,009,000 | $ | - | ||||||||
Liabilities:
|
||||||||||||||||
Interest
rate swap
|
$ | 724,000 | $ | - | $ | 724,000 | $ | - | ||||||||
At
December 31, 2009
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available
for sale securities
|
||||||||||||||||
U.S.
Treasuries
|
$ | - | $ | - | $ | - | $ | - | ||||||||
U.S.
government -
|
||||||||||||||||
sponsered
agencies
|
32,286,000 | - | 32,286,000 | - | ||||||||||||
Obligations
of state and
|
||||||||||||||||
political
subdivisions
|
5,397,000 | - | 5,397,000 | - | ||||||||||||
Mortgage-backed
|
||||||||||||||||
securities
- residential
|
62,228,000 | - | 62,228,000 | - | ||||||||||||
Other
equity investments
|
3,115,000 | - | 3,115,000 | - | ||||||||||||
Total
available for
|
||||||||||||||||
sale
securities
|
$ | 103,026,000 | $ | - | $ | 103,026,000 | $ | - | ||||||||
Liabilities:
|
||||||||||||||||
Interest
rate swap
|
$ | 258,000 | $ | - | $ | 258,000 | $ | - |
Fair
Value Measurements Using:
|
||||||||||||||||
Quoted
Prices
|
Significant
|
|||||||||||||||
in
Active
|
Other
|
Significant
|
||||||||||||||
Markets
for
|
Observable
|
Unobservable
|
||||||||||||||
Carrying
|
Identical
Assets
|
Inputs
|
Inputs
|
|||||||||||||
Value
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
At
June 30, 2010
|
||||||||||||||||
Assets:
|
||||||||||||||||
Impaired
loans
|
$ | 13,830,000 | $ | - | $ | - | $ | 13,830,000 | ||||||||
At
December 31, 2009
|
||||||||||||||||
Assets:
|
||||||||||||||||
Impaired
loans
|
$ | 6,765,000 | $ | - | $ | - | $ | 6,765,000 |
June 30,
2010
|
December 31,
2009
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Amount
|
Fair
Value
|
Amount
|
Fair
Value
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 19,452,000 | $ | 19,452,000 | $ | 8,871,000 | $ | 8,871,000 | ||||||||
Securities
available for sale
|
116,009,000 | 116,009,000 | 103,026,000 | 103,026,000 | ||||||||||||
Securities
held to maturity
|
56,836,000 | 59,182,000 | 67,717,000 | 68,765,000 | ||||||||||||
FHLB-NY
stock
|
2,497,000 | N/A | 3,227,000 | N/A | ||||||||||||
Net
loans, including impaired loans
|
449,007,000 | 451,070,000 | 453,119,000 | 453,813,000 | ||||||||||||
Accrued
interest receivable
|
2,852,000 | 2,852,000 | 3,167,000 | 3,167,000 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Deposits
|
561,183,000 | 562,138,000 | 529,930,000 | 531,230,000 | ||||||||||||
FHLB-NY
Advances
|
36,000,000 | 34,852,000 | 54,600,000 | 51,949,000 | ||||||||||||
Securities
sold under agreements
|
||||||||||||||||
to
repurchase
|
15,400,000 | 15,400,000 | 15,396,000 | 15,396,000 | ||||||||||||
Subordinated
debenture
|
7,217,000 | 6,582,000 | 7,217,000 | 5,943,000 | ||||||||||||
Accrued
interest payable
|
935,000 | 935,000 | 1,193,000 | 1,193,000 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||
Net
income (loss)
|
$ | (1,065 | ) | $ | 780 | $ | (194 | ) | $ | 1,967 | ||||||
Dividends
on preferred stock and accretion
|
138 | 137 | 275 | 229 | ||||||||||||
Net
income (loss) available to common stockholders
|
$ | (1,203 | ) | $ | 643 | $ | (469 | ) | $ | 1,738 | ||||||
Weighted
average shares
|
5,842 | 5,831 | 5,841 | 5,830 | ||||||||||||
Effect
of dilutive stock options
|
N/A | 5 | N/A | 5 | ||||||||||||
Total
weighted average dilutive shares
|
5,842 | 5,836 | 5,841 | 5,835 | ||||||||||||
Basic
earnings (loss) per common share
|
$ | (0.21 | ) | $ | 0.11 | $ | (0.08 | ) | $ | 0.30 | ||||||
Diluted
earnings (loss) per common share
|
$ | (0.21 | ) | $ | 0.11 | $ | (0.08 | ) | $ | 0.30 |
2010
|
2009
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Interest
|
Rates
|
Interest
|
Rates
|
|||||||||||||||||||||
Average
|
Income/
|
Earned/
|
Average
|
Income/
|
Earned/
|
|||||||||||||||||||
Balance
|
Expense
|
Paid
|
Balance
|
Expense
|
Paid
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans
(1) (2)
|
$ | 461,879 | $ | 6,703 | 5.82 | % | $ | 438,675 | $ | 6,670 | 6.10 | % | ||||||||||||
Taxable
investment securities (1)
|
138,948 | 1,234 | 3.56 | 146,204 | 1,612 | 4.42 | ||||||||||||||||||
Tax-exempt
investment securities (1) (2)
|
31,376 | 397 | 5.08 | 29,520 | 397 | 5.39 | ||||||||||||||||||
Other
interest-earning assets
|
1,233 | 4 | 1.30 | 96 | 2 | 8.36 | ||||||||||||||||||
Total
interest-earning assets
|
633,436 | 8,338 | 5.28 | 614,495 | 8,681 | 5.67 | ||||||||||||||||||
Non-interest-earning
assets:
|
||||||||||||||||||||||||
Allowance
for loan losses
|
(7,543 | ) | (5,385 | ) | ||||||||||||||||||||
Other
assets
|
42,156 | 33,943 | ||||||||||||||||||||||
Total
assets
|
$ | 668,049 | $ | 643,053 | ||||||||||||||||||||
Liabilities
and Stockholders' Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 236,358 | $ | 825 | 1.40 | % | $ | 182,967 | $ | 580 | 1.27 | % | ||||||||||||
Savings
deposits
|
48,404 | 51 | 0.42 | 42,510 | 56 | 0.53 | ||||||||||||||||||
Time
deposits
|
165,097 | 853 | 2.07 | 194,692 | 1,567 | 3.23 | ||||||||||||||||||
Repurchase
agreements
|
15,400 | 184 | 4.79 | 15,163 | 190 | 5.03 | ||||||||||||||||||
FHLB
borrowing
|
36,263 | 239 | 2.64 | 49,487 | 253 | 2.05 | ||||||||||||||||||
Subordinated
debenture
|
7,217 | 126 | 7.00 | 7,217 | 76 | 4.22 | ||||||||||||||||||
Total
interest-bearing liabilities
|
508,739 | 2,278 | 1.80 | 492,036 | 2,722 | 2.22 | ||||||||||||||||||
Non-interest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
99,926 | 92,789 | ||||||||||||||||||||||
Other
liabilities
|
4,968 | 4,270 | ||||||||||||||||||||||
Stockholders'
equity
|
54,416 | 53,958 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 668,049 | $ | 643,053 | ||||||||||||||||||||
Net
interest income (taxable equivalent basis)
|
6,060 | 5,959 | ||||||||||||||||||||||
Tax
Equivalent adjustment
|
(137 | ) | (139 | ) | ||||||||||||||||||||
Net
interest income
|
$ | 5,923 | $ | 5,820 | ||||||||||||||||||||
Net
interest spread (taxable equivalent basis)
|
3.48 | % | 3.45 | % | ||||||||||||||||||||
Net
yield on interest-earning
|
||||||||||||||||||||||||
assets
(taxable equivalent basis) (3)
|
3.84 | % | 3.89 | % |
|
(1)
|
For
purposes of these calculations, nonaccruing loans are included in the
average balance. Loans and total interest-earning assets are
net of unearned income. Securities are included at amortized
cost.
|
|
(2)
|
The
tax equivalent adjustments are based on a marginal tax rate of
34%.
|
|
(3)
|
Net
interest income (taxable equivalent basis) divided by average
interest-earning assets.
|
2010
|
2009
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Interest
|
Rates
|
Interest
|
Rates
|
|||||||||||||||||||||
Average
|
Income/
|
Earned/
|
Average
|
Income/
|
Earned/
|
|||||||||||||||||||
Balance
|
Expense
|
Paid
|
Balance
|
Expense
|
Paid
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans
(1) (2)
|
$ | 461,950 | $ | 13,589 | 5.93 | % | $ | 437,806 | $ | 13,290 | 6.12 | % | ||||||||||||
Taxable
investment securities (1)
|
136,149 | 2,573 | 3.81 | 140,508 | 3,208 | 4.60 | ||||||||||||||||||
Tax-exempt
investment securities (1) (2)
|
31,839 | 811 | 5.14 | 29,230 | 787 | 5.43 | ||||||||||||||||||
Other
interest-earning assets
|
679 | 6 | 1.78 | 90 | 5 | 11.20 | ||||||||||||||||||
Total
interest-earning assets
|
630,617 | 16,979 | 5.43 | 607,634 | 17,290 | 5.74 | ||||||||||||||||||
Non-interest-earning
assets:
|
||||||||||||||||||||||||
Allowance
for loan losses
|
(7,427 | ) | (5,300 | ) | ||||||||||||||||||||
Other
assets
|
39,845 | 34,514 | ||||||||||||||||||||||
Total
assets
|
$ | 663,035 | $ | 636,848 | ||||||||||||||||||||
Liabilities
and Stockholders' Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 229,562 | $ | 1,595 | 1.40 | % | $ | 175,167 | $ | 1,097 | 1.26 | % | ||||||||||||
Savings
deposits
|
47,855 | 100 | 0.42 | 41,449 | 114 | 0.55 | ||||||||||||||||||
Time
deposits
|
168,198 | 1,854 | 2.22 | 203,244 | 3,364 | 3.34 | ||||||||||||||||||
Repurchase
agreements
|
15,399 | 365 | 4.78 | 15,162 | 378 | 5.03 | ||||||||||||||||||
FHLB
borrowing
|
41,013 | 486 | 2.39 | 47,822 | 484 | 2.04 | ||||||||||||||||||
Subordinated
debenture
|
7,217 | 194 | 5.42 | 7,217 | 160 | 4.47 | ||||||||||||||||||
Total
interest-bearing liabilities
|
509,244 | 4,594 | 1.82 | 490,061 | 5,597 | 2.30 | ||||||||||||||||||
Non-interest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand
deposits
|
94,987 | 90,802 | ||||||||||||||||||||||
Other
liabilities
|
4,434 | 4,255 | ||||||||||||||||||||||
Stockholders'
equity
|
54,370 | 51,730 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 663,035 | $ | 636,848 | ||||||||||||||||||||
Net
interest income (taxable equivalent basis)
|
12,385 | 11,693 | ||||||||||||||||||||||
Tax
Equivalent adjustment
|
(283 | ) | (275 | ) | ||||||||||||||||||||
Net
interest income
|
$ | 12,102 | $ | 11,418 | ||||||||||||||||||||
Net
interest spread (taxable equivalent basis)
|
3.61 | % | 3.44 | % | ||||||||||||||||||||
Net
yield on interest-earning
|
||||||||||||||||||||||||
assets
(taxable equivalent basis) (3)
|
3.96 | % | 3.88 | % |
|
(1)
|
For
purposes of these calculations, nonaccruing loans are included in the
average balance. Loans
and
|
|
total
interest-earning assets are net of unearned income. Securities
are included at amortized cost.
|
|
(2)
|
The
tax equivalent adjustments are based on a marginal tax rate of
34%.
|
|
(3)
|
Net
interest income (taxable equivalent basis) divided by average
interest-earning assets.
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
|||||||||||||
2010
|
2010
|
2009
|
2009
|
|||||||||||||
Nonaccrual
loans (1)
|
$ | 25,712 | $ | 19,525 | $ | 19,656 | $ | 14,536 | ||||||||
Loans
past due 90 days or more and accruing (2)
|
- | - | 415 | 728 | ||||||||||||
Total
nonperforming loans
|
25,712 | 19,525 | 20,071 | 15,264 | ||||||||||||
Restructured
loans
|
1,210 | 2,775 | 2,846 | 2,417 | ||||||||||||
Total
nonperforming loans
|
$ | 26,922 | $ | 22,300 | $ | 22,917 | $ | 17,681 | ||||||||
Allowance
for loan losses
|
$ | 8,745 | $ | 8,174 | $ | 6,920 | $ | 7,249 | ||||||||
Nonperforming
loans to total gross loans
|
5.88 | % | 4.83 | % | 4.98 | % | 3.92 | % | ||||||||
Nonperforming
loans to total assets
|
3.99 | % | 3.37 | % | 3.45 | % | 2.72 | % | ||||||||
Allowance
for loan losses to total gross loans
|
1.91 | % | 1.77 | % | 1.50 | % | 1.61 | % | ||||||||
Allowance
for loan losses to
|
||||||||||||||||
nonperforming
loans
|
32.48 | % | 36.65 | % | 30.20 | % | 41.00 | % |
Required
|
Actual
|
Excess
|
||||||||||
Leverage
Ratio
|
4.00 | % | 8.77 | % | 4.77 | % | ||||||
Risk-based
Capital
|
||||||||||||
Tier
1
|
4.00 | % | 11.81 | % | 7.81 | % | ||||||
Total
|
8.00 | % | 13.07 | % | 5.07 | % |
|
(a)
|
Evaluation
of internal controls and procedures
|
|
(b)
|
Management’s
Report on Internal Control over Financial
Reporting
|
|
(c)
|
Changes
in Internal Controls over Financial
Reporting
|
Exhibits
|
Stewardship
Financial Corporation
|
||||
Date: August
16, 2010
|
By:
|
/s/ Paul Van
Ostenbridge
|
||
Paul
Van Ostenbridge
|
||||
President
and Chief Executive Officer
|
||||
(Principal
Executive Officer)
|
||||
Date: August
16, 2010
|
By:
|
/s/ Claire M.
Chadwick
|
||
Claire
M. Chadwick
|
||||
Senior
Vice President and Chief Financial Officer
|
||||
(Principal
Financial and Accounting Officer)
|
Exhibit
Number
|
Description
of Exhibits
|
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
||
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
||
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of
2002
|