FEDERAL
|
16-1540137
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification Number)
|
September 30,
|
December 31,
|
|||||||
(In thousands, except share data)
|
2011
|
2010
|
||||||
ASSETS:
|
||||||||
Cash and due from banks
|
$ | 8,676 | $ | 6,366 | ||||
Interest earning deposits
|
7,112 | 7,397 | ||||||
Total cash and cash equivalents
|
15,788 | 13,763 | ||||||
Investment securities, at fair value
|
86,003 | 85,327 | ||||||
Federal Home Loan Bank stock, at cost
|
1,528 | 2,134 | ||||||
Loans
|
294,292 | 285,296 | ||||||
Less: Allowance for loan losses
|
4,003 | 3,648 | ||||||
Loans receivable, net
|
290,289 | 281,648 | ||||||
Premises and equipment, net
|
10,659 | 9,432 | ||||||
Accrued interest receivable
|
1,619 | 1,709 | ||||||
Foreclosed real estate
|
562 | 375 | ||||||
Goodwill
|
3,840 | 3,840 | ||||||
Bank owned life insurance
|
7,878 | 6,915 | ||||||
Other assets
|
2,280 | 3,402 | ||||||
Total assets
|
$ | 420,446 | $ | 408,545 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY:
|
||||||||
Deposits:
|
||||||||
Interest-bearing
|
$ | 305,310 | $ | 295,786 | ||||
Noninterest-bearing
|
37,744 | 30,716 | ||||||
Total deposits
|
343,054 | 326,502 | ||||||
Short-term borrowings
|
2,000 | 13,000 | ||||||
Long-term borrowings
|
26,101 | 28,000 | ||||||
Junior subordinated debentures
|
5,155 | 5,155 | ||||||
Other liabilities
|
4,754 | 5,296 | ||||||
Total liabilities
|
381,064 | 377,953 | ||||||
Shareholders' equity:
|
||||||||
Preferred stock - CPP, par value $0.01 per share; $1,000 liquidation preference;
|
||||||||
1,000,000 shares authorized; 0 and 6,771 shares issued and outstanding, respectively
|
- | 6,225 | ||||||
Preferred stock - SBLF, par value $0.01 per share; $1,000 liquidation preference;
|
||||||||
13,000 shares authorized; 13,000 and 0 shares issued and outstanding, respectively
|
13,000 | - | ||||||
Common stock, par value $0.01; authorized 10,000,000 shares;
|
||||||||
2,979,969 and 2,972,119 shares issued and 2,617,682 and 2,484,832 shares outstanding, respectively
|
30 | 30 | ||||||
Additional paid in capital
|
8,707 | 8,615 | ||||||
Retained earnings
|
24,444 | 24,163 | ||||||
Accumulated other comprehensive loss
|
(894 | ) | (1,939 | ) | ||||
Unearned ESOP
|
(1,071 | ) | - | |||||
Treasury stock, at cost; 362,287 and 487,287 shares, respectively
|
(4,834 | ) | (6,502 | ) | ||||
Total shareholders' equity
|
39,382 | 30,592 | ||||||
Total liabilities and shareholders' equity
|
$ | 420,446 | $ | 408,545 | ||||
The accompanying notes are an integral part of the consolidated financial statements.
|
For the three
|
For the three
|
|||||||
|
months ended
|
months ended
|
||||||
(In thousands, except per share data)
|
September 30, 2011
|
September 30, 2010
|
||||||
Interest and dividend income:
|
||||||||
Loans, including fees
|
$ | 4,089 | $ | 3,861 | ||||
Debt securities:
|
||||||||
Taxable
|
489 | 611 | ||||||
Tax-exempt
|
81 | 74 | ||||||
Dividends
|
33 | 38 | ||||||
Federal funds sold and interest earning deposits
|
1 | 1 | ||||||
Total interest income
|
4,693 | 4,585 | ||||||
Interest expense:
|
||||||||
Interest on deposits
|
810 | 861 | ||||||
Interest on short-term borrowings
|
4 | 2 | ||||||
Interest on long-term borrowings
|
259 | 350 | ||||||
Total interest expense
|
1,073 | 1,213 | ||||||
Net interest income
|
3,620 | 3,372 | ||||||
Provision for loan losses
|
145 | 263 | ||||||
Net interest income after provision for loan losses
|
3,475 | 3,109 | ||||||
Noninterest income:
|
||||||||
Service charges on deposit accounts
|
283 | 319 | ||||||
Earnings on bank owned life insurance
|
45 | 72 | ||||||
Loan servicing fees
|
63 | 46 | ||||||
Net gains on sales and redemptions of investment securities
|
469 | 144 | ||||||
Net (losses) gains on sales of loans and foreclosed real estate
|
(80 | ) | 10 | |||||
Debit card interchange fees
|
93 | 76 | ||||||
Other charges, commissions & fees
|
130 | 131 | ||||||
Total noninterest income
|
1,003 | 798 | ||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
1,787 | 1,541 | ||||||
Building occupancy
|
316 | 317 | ||||||
Data processing
|
349 | 340 | ||||||
Professional and other services
|
219 | 146 | ||||||
Advertising
|
91 | 97 | ||||||
FDIC assessments
|
(8 | ) | 129 | |||||
Audits and exams
|
62 | 55 | ||||||
Other expenses
|
392 | 327 | ||||||
Total noninterest expenses
|
3,208 | 2,952 | ||||||
Income before income taxes
|
1,270 | 955 | ||||||
Provision for income taxes
|
396 | 287 | ||||||
Net income
|
$ | 874 | $ | 668 | ||||
Preferred stock dividends and discount accretion
|
$ | 581 | $ | 115 | ||||
Net income available to common shareholders
|
$ | 293 | $ | 553 | ||||
Earnings per common share - basic
|
$ | 0.12 | $ | 0.22 | ||||
Earnings per common share - diluted
|
$ | 0.11 | $ | 0.22 | ||||
Dividends per common share
|
$ | 0.03 | $ | 0.03 | ||||
|
||||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
For the nine
|
For the nine
|
|||||||
|
months ended
|
months ended
|
||||||
(In thousands, except per share data)
|
September 30, 2011
|
September 30, 2010
|
||||||
Interest and dividend income:
|
||||||||
Loans, including fees
|
$ | 11,945 | $ | 11,396 | ||||
Debt securities:
|
||||||||
Taxable
|
1,687 | 1,771 | ||||||
Tax-exempt
|
230 | 190 | ||||||
Dividends
|
101 | 168 | ||||||
Federal funds sold and interest earning deposits
|
3 | 5 | ||||||
Total interest income
|
13,966 | 13,530 | ||||||
Interest expense:
|
||||||||
Interest on deposits
|
2,444 | 2,557 | ||||||
Interest on short-term borrowings
|
22 | 2 | ||||||
Interest on long-term borrowings
|
816 | 1,052 | ||||||
Total interest expense
|
3,282 | 3,611 | ||||||
Net interest income
|
10,684 | 9,919 | ||||||
Provision for loan losses
|
670 | 788 | ||||||
Net interest income after provision for loan losses
|
10,014 | 9,131 | ||||||
Noninterest income:
|
||||||||
Service charges on deposit accounts
|
854 | 1,051 | ||||||
Earnings on bank owned life insurance
|
162 | 212 | ||||||
Loan servicing fees
|
155 | 163 | ||||||
Net gains on sales and redemptions of investment securities
|
791 | 172 | ||||||
Net losses on sales of loans and foreclosed real estate
|
(40 | ) | (43 | ) | ||||
Debit card interchange fees
|
273 | 229 | ||||||
Other charges, commissions & fees
|
403 | 390 | ||||||
Total noninterest income
|
2,598 | 2,174 | ||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
5,260 | 4,601 | ||||||
Building occupancy
|
1,038 | 971 | ||||||
Data processing
|
1,054 | 1,021 | ||||||
Professional and other services
|
504 | 421 | ||||||
Advertising
|
366 | 200 | ||||||
FDIC assessments
|
316 | 386 | ||||||
Audits and exams
|
181 | 166 | ||||||
Other expenses
|
1,175 | 940 | ||||||
Total noninterest expenses
|
9,894 | 8,706 | ||||||
Income before income taxes
|
2,718 | 2,599 | ||||||
Provision for income taxes
|
831 | 780 | ||||||
Net income
|
$ | 1,887 | $ | 1,819 | ||||
Preferred stock dividends and discount accretion
|
$ | 816 | $ | 346 | ||||
Net income available to common shareholders
|
$ | 1,071 | $ | 1,473 | ||||
Earnings per common share - basic
|
$ | 0.43 | $ | 0.59 | ||||
Earnings per common share - diluted
|
$ | 0.42 | $ | 0.59 | ||||
Dividends per common share
|
$ | 0.09 | $ | 0.09 | ||||
|
||||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Pathfinder Bancorp, Inc.
|
Consolidated Statements of Changes in Shareholders' Equity
|
Nine Months Ended September 30, 2011 and September 30, 2010
|
(Unaudited)
|
Accumulated
|
||||||||||||||||||||||||||||||||
Additional
|
Other Com-
|
|||||||||||||||||||||||||||||||
Preferred
|
Common
|
Paid in
|
Retained
|
prehensive
|
Unearned
|
Treasury
|
||||||||||||||||||||||||||
(In thousands, except share data)
|
Stock
|
Stock
|
Capital
|
Earnings
|
Loss
|
ESOP
|
Stock
|
Total
|
||||||||||||||||||||||||
Balance, January 1, 2011
|
$ | 6,225 | $ | 30 | $ | 8,615 | $ | 24,163 | $ | (1,939 | ) | $ | - | $ | (6,502 | ) | $ | 30,592 | ||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||||||
Net income
|
1,887 | 1,887 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||||||
Unrealized holding gains on securities
|
||||||||||||||||||||||||||||||||
available for sale (net of $657 tax expense)
|
982 | 982 | ||||||||||||||||||||||||||||||
Unrealized holding loss on financial
|
||||||||||||||||||||||||||||||||
derivative (net of $38 tax benefit)
|
(57 | ) | (57 | ) | ||||||||||||||||||||||||||||
Retirement plan amortization and transition
|
||||||||||||||||||||||||||||||||
obligation recognized in plan expenses
|
||||||||||||||||||||||||||||||||
(net of $80 tax expense)
|
120 | 120 | ||||||||||||||||||||||||||||||
Total comprehensive income
|
2,932 | |||||||||||||||||||||||||||||||
Sale of preferred stock - SBLF
|
13,000 | 13,000 | ||||||||||||||||||||||||||||||
Redemption of CPP Preferred stock
|
(6,771 | ) | (6,771 | ) | ||||||||||||||||||||||||||||
Preferred stock discount accretion
|
546 | (546 | ) | - | ||||||||||||||||||||||||||||
Preferred stock dividends - CPP
|
(270 | ) | (270 | ) | ||||||||||||||||||||||||||||
Sale of treasury stock to ESOP
|
(566 | ) | (1,102 | ) | 1,668 | - | ||||||||||||||||||||||||||
ESOP shares earned (3,445 shares)
|
1 | 31 | 32 | |||||||||||||||||||||||||||||
Stock based compensation
|
25 | 25 | ||||||||||||||||||||||||||||||
Stock options exercised
|
66 | 66 | ||||||||||||||||||||||||||||||
Common stock dividends declared ($0.09 per share)
|
(224 | ) | (224 | ) | ||||||||||||||||||||||||||||
Balance, September 30, 2011
|
$ | 13,000 | $ | 30 | $ | 8,707 | $ | 24,444 | $ | (894 | ) | $ | (1,071 | ) | $ | (4,834 | ) | $ | 39,382 | |||||||||||||
Balance, January 1, 2010
|
$ | 6,101 | $ | 30 | $ | 8,615 | $ | 22,419 | $ | (1,425 | ) | $ | - | $ | (6,502 | ) | $ | 29,238 | ||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||||||
Net income
|
1,819 | 1,819 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||||||
Unrealized holding gains on securities
|
||||||||||||||||||||||||||||||||
available for sale (net of $646 tax expense)
|
967 | 967 | ||||||||||||||||||||||||||||||
Unrealized holding loss on financial
|
||||||||||||||||||||||||||||||||
derivative (net of $74 tax benefit)
|
(110 | ) | (110 | ) | ||||||||||||||||||||||||||||
Retirement plan net losses and transition
|
||||||||||||||||||||||||||||||||
obligation recognized in plan expenses
|
||||||||||||||||||||||||||||||||
(net of $66 tax expense)
|
99 | 99 | ||||||||||||||||||||||||||||||
Total Comprehensive income
|
2,775 | |||||||||||||||||||||||||||||||
Preferred stock discount accretion
|
92 | (92 | ) | - | ||||||||||||||||||||||||||||
Preferred stock dividends - CPP
|
(254 | ) | (254 | ) | ||||||||||||||||||||||||||||
Common stock dividends declared ($0.09 per share)
|
(224 | ) | (224 | ) | ||||||||||||||||||||||||||||
Balance, September 30, 2010
|
$ | 6,193 | $ | 30 | $ | 8,615 | $ | 23,668 | $ | (469 | ) | $ | - | $ | (6,502 | ) | $ | 31,535 |
For the nine
|
For the nine
|
|||||||
months ended
|
months ended
|
|||||||
(In thousands)
|
September 30, 2011
|
September 30, 2010
|
||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 1,887 | $ | 1,819 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses
|
670 | 788 | ||||||
Proceeds from sales of loans
|
- | 144 | ||||||
Originations of loans held-for-sale
|
- | (146 | ) | |||||
Realized losses (gains) on sales and redemptions of:
|
||||||||
Real estate acquired through foreclosure
|
40 | 41 | ||||||
Loans
|
- | 2 | ||||||
Premises and equipment
|
- | 1 | ||||||
Available-for-sale investment securities
|
(791 | ) | (172 | ) | ||||
Depreciation
|
523 | 483 | ||||||
Amortization of mortgage servicing rights
|
20 | 22 | ||||||
Amortization of deferred loan costs
|
139 | 163 | ||||||
Earnings on bank owned life insurance
|
(162 | ) | (212 | ) | ||||
Net amortization of premiums and discounts on investment securities
|
370 | 336 | ||||||
Stock based compensation and ESOP expense
|
57 | - | ||||||
Decrease (increase) in accrued interest receivable
|
90 | (225 | ) | |||||
Net change in other assets and liabilities
|
(30 | ) | 889 | |||||
Net cash provided by operating activities
|
2,813 | 3,933 | ||||||
INVESTING ACTIVITIES
|
||||||||
Purchase of investment securities available-for-sale
|
(39,603 | ) | (46,190 | ) | ||||
Net proceeds from the redemption of Federal Home Loan Bank stock
|
606 | 35 | ||||||
Proceeds from maturities and principal reductions of
|
||||||||
investment securities available-for-sale
|
25,894 | 27,133 | ||||||
Proceeds from sales and redemptions of:
|
||||||||
Available-for-sale investment securities
|
15,091 | 9,096 | ||||||
Real estate acquired through foreclosure
|
691 | 137 | ||||||
Premises and equipment
|
- | 24 | ||||||
Purchase of bank owned life insurance
|
(800 | ) | - | |||||
Net increase in loans
|
(10,371 | ) | (16,766 | ) | ||||
Purchase of premises and equipment
|
(1,750 | ) | (1,166 | ) | ||||
Net cash used in investing activities
|
(10,242 | ) | (27,697 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Net increase in demand deposits, NOW accounts, savings accounts,
|
||||||||
money management deposit accounts, MMDA accounts and escrow deposits
|
15,928 | 38,658 | ||||||
Net increase (decrease) in time deposits
|
624 | (7,570 | ) | |||||
Net repayments of short-term borrowings
|
(11,000 | ) | - | |||||
Payments on long-term borrowings
|
(6,000 | ) | (5,000 | ) | ||||
Proceeds from long-term borrowings
|
4,101 | 4,000 | ||||||
Proceeds from sale of preferred stock - SBLF
|
13,000 | - | ||||||
Proceeds from exercise of stock options
|
66 | - | ||||||
Redemption of preferred stock - CPP
|
(6,771 | ) | - | |||||
Cash dividends paid to preferred shareholder - CPP
|
(270 | ) | (254 | ) | ||||
Cash dividends paid to common shareholders
|
(224 | ) | (224 | ) | ||||
Net cash provided by financing activities
|
9,454 | 29,610 | ||||||
Increase in cash and cash equivalents
|
2,025 | 5,846 | ||||||
Cash and cash equivalents at beginning of period
|
13,763 | 14,631 | ||||||
Cash and cash equivalents at end of period
|
$ | 15,788 | $ | 20,477 |
For the nine
|
For the nine
|
|||||||
months ended
|
months ended
|
|||||||
(In thousands)
|
September 30, 2011
|
September 30, 2010
|
||||||
CASH PAID DURING THE PERIOD FOR:
|
||||||||
Interest
|
$ | 3,299 | $ | 3,645 | ||||
Income taxes
|
1,507 | 402 | ||||||
NON-CASH INVESTING ACTIVITY
|
||||||||
Transfer of loans to foreclosed real estate
|
921 | 355 |
For the three months ended
|
For the nine months ended
|
|||||||||||||||
($ in thousands, except share data)
|
September 30,
|
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Basic Earnings Per Common Share
|
||||||||||||||||
Net income available to common shareholders
|
$ | 293 | $ | 553 | $ | 1,071 | $ | 1,473 | ||||||||
Weighted average common shares outstanding
|
2,493,176 | 2,484,832 | 2,487,685 | 2,484,832 | ||||||||||||
Basic earnings per common share
|
$ | 0.12 | $ | 0.22 | $ | 0.43 | $ | 0.59 | ||||||||
Diluted Earnings Per Common Share
|
||||||||||||||||
Net income available to common shareholders
|
$ | 293 | $ | 553 | $ | 1,071 | $ | 1,473 | ||||||||
Weighted average common shares outstanding
|
2,493,176 | 2,484,832 | 2,487,685 | 2,484,832 | ||||||||||||
Effect of assumed exercise of stock options
|
10,569 | - | 4,752 | - | ||||||||||||
Effect of assumed exercise of stock warrants
|
43,233 | - | 43,851 | - | ||||||||||||
Diluted average common shares outstanding
|
2,546,978 | 2,484,832 | 2,536,288 | 2,484,832 | ||||||||||||
Diluted earnings per common share
|
$ | 0.11 | $ | 0.22 | $ | 0.42 | $ | 0.59 |
For the three months
|
For the nine months
|
|||||||||||||||
|
ended September 30,
|
ended September 30,
|
||||||||||||||
(In thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
||||||||||||||||
Service cost
|
$ | 82 | $ | 65 | $ | 246 | $ | 195 | ||||||||
Interest cost
|
103 | 94 | 310 | 282 | ||||||||||||
Expected return on plan assets
|
(156 | ) | (143 | ) | (468 | ) | (411 | ) | ||||||||
Amortization of net losses
|
62 | 50 | 185 | 150 | ||||||||||||
Net periodic benefit cost
|
$ | 91 | $ | 66 | $ | 273 | $ | 216 |
For the three months
|
For the nine months
|
|||||||||||||||
|
ended September 30,
|
ended September 30,
|
||||||||||||||
(In thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
||||||||||||||||
Service cost
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Interest cost
|
5 | 5 | 15 | 15 | ||||||||||||
Amortization of losses and transition obligation
|
5 | 5 | 14 | 14 | ||||||||||||
Net periodic benefit cost
|
$ | 10 | $ | 10 | $ | 29 | $ | 29 |
For the three months
|
For the nine months
|
|||||||||||||||
ended September 30,
|
ended September 30,
|
|||||||||||||||
(In thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Unrealized holding (losses) gains on securities available for sale:
|
||||||||||||||||
Unrealized holding gains arising during the period
|
$ | 316 | $ | 205 | $ | 2,430 | $ | 1,785 | ||||||||
Reclassification adjustment for net gains included in net income
|
(469 | ) | (144 | ) | (791 | ) | (172 | ) | ||||||||
Net unrealized (losses) gains on securities available for sale
|
(153 | ) | 61 | 1,639 | 1,613 | |||||||||||
Unrealized holding loss on financial derivative:
|
||||||||||||||||
Unrealized holding loss arising during the period
|
(87 | ) | (75 | ) | (141 | ) | (229 | ) | ||||||||
Reclassification adjustment for interest expense included in net income
|
16 | 14 | 46 | 45 | ||||||||||||
Net unrealized loss on financial derivative
|
(71 | ) | (61 | ) | (95 | ) | (184 | ) | ||||||||
Defined benefit pension and post retirement plans:
|
||||||||||||||||
Reclassification adjustment for amortization of benefit plans' net loss
|
||||||||||||||||
and transition obligation recognized in net periodic expense
|
67 | 56 | 200 | 165 | ||||||||||||
Net change in defined benefit plans
|
67 | 56 | 200 | 165 | ||||||||||||
Other comprehensive (loss) income before tax
|
(157 | ) | 56 | 1,744 | 1,594 | |||||||||||
Tax effect
|
62 | 22 | (699 | ) | (638 | ) | ||||||||||
Other comprehensive (loss) income
|
$ | (95 | ) | $ | 78 | $ | 1,045 | $ | 956 |
September 30,
|
December 31,
|
|||||||
(In thousands)
|
2011
|
2010
|
||||||
Unrealized gains on securities available for sale
|
||||||||
(net of tax expense 2011 - $766; 2010 - $110)
|
$ | 1,147 | $ | 164 | ||||
Unrealized losses on financial derivative
|
||||||||
(net of tax benefit 2011 - $82; 2010 - $44)
|
(123 | ) | (66 | ) | ||||
Net pension losses
|
||||||||
(net of tax benefit 2011 - $1,260; 2010 - $1,334)
|
(1,890 | ) | (2,001 | ) | ||||
Net post- retirement losses and transition obligation
|
||||||||
(net of tax benefit 2011 - $19; 2010 - $25)
|
(28 | ) | (36 | ) | ||||
$ | (894 | ) | $ | (1,939 | ) |
September 30, 2011
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$ | 7,028 | $ | 64 | $ | - | $ | 7,092 | ||||||||
State and political subdivisions
|
14,688 | 604 | (12 | ) | 15,280 | |||||||||||
Corporate
|
11,160 | 51 | (621 | ) | 10,590 | |||||||||||
Residential mortgage-backed - agency
|
47,822 | 1,669 | (2 | ) | 49,489 | |||||||||||
Residential mortgage-backed - private label
|
576 | 17 | - | 593 | ||||||||||||
Total
|
81,274 | 2,405 | (635 | ) | 83,044 | |||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
1,285 | 18 | - | 1,303 | ||||||||||||
Large cap equity fund
|
905 | 43 | - | 948 | ||||||||||||
Other mutual funds
|
183 | 84 | - | 267 | ||||||||||||
Common stock - financial services industry
|
443 | - | (2 | ) | 441 | |||||||||||
Total
|
2,816 | 145 | (2 | ) | 2,959 | |||||||||||
Total investment securities
|
$ | 84,090 | $ | 2,550 | $ | (637 | ) | $ | 86,003 | |||||||
December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$ | 20,137 | $ | 139 | $ | (253 | ) | $ | 20,023 | |||||||
State and political subdivisions
|
19,227 | 174 | (422 | ) | 18,979 | |||||||||||
Corporate
|
5,865 | 228 | (493 | ) | 5,600 | |||||||||||
Residential mortgage-backed - agency
|
35,714 | 934 | (239 | ) | 36,409 | |||||||||||
Residential mortgage-backed - private label
|
816 | 21 | - | 837 | ||||||||||||
Total
|
81,759 | 1,496 | (1,407 | ) | 81,848 | |||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
1,532 | 26 | - | 1,558 | ||||||||||||
Large cap equity fund
|
1,129 | 93 | - | 1,222 | ||||||||||||
Other mutual funds
|
183 | 61 | - | 244 | ||||||||||||
Common stock - financial services industry
|
450 | 5 | - | 455 | ||||||||||||
Total
|
3,294 | 185 | - | 3,479 | ||||||||||||
Total investment securities
|
$ | 85,053 | $ | 1,681 | $ | (1,407 | ) | $ | 85,327 |
Amortized
|
Estimated
|
|||||||
Cost
|
Fair Value
|
|||||||
(In thousands)
|
||||||||
Due in one year or less
|
$ | 2,610 | $ | 2,648 | ||||
Due after one year through five years
|
14,034 | 14,104 | ||||||
Due after five years through ten years
|
6,872 | 7,188 | ||||||
Due after ten years
|
9,360 | 9,022 | ||||||
Mortgage-backed securities
|
48,398 | 50,082 | ||||||
Totals
|
$ | 81,274 | $ | 83,044 |
September 30, 2011
|
||||||||||||||||||||||||
|
Less than Twelve Months
|
Twelve Months or More
|
Total
|
|||||||||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||||||||
Losses
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
|||||||||||||||||||
(In thousands)
|
|
|||||||||||||||||||||||
State and political subdivisions
|
$ | (12 | ) | $ | 1,644 | $ | - | $ | - | $ | (12 | ) | $ | 1,644 | ||||||||||
Corporate
|
(88 | ) | 6,304 | (533 | ) | 1,435 | (621 | ) | 7,739 | |||||||||||||||
Residential mortgage-backed - agency
|
(2 | ) | 1,935 | - | - | (2 | ) | 1,935 | ||||||||||||||||
Common stock - financial services industry
|
- | - | (2 | ) | 1 | (2 | ) | 1 | ||||||||||||||||
$ | (102 | ) | $ | 9,883 | $ | (535 | ) | $ | 1,436 | $ | (637 | ) | $ | 11,319 | ||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
|
Less than Twelve Months
|
Twelve Months or More
|
Total
|
|||||||||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||||||||
Losses
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
US Treasury, agencies and GSEs
|
$ | (253 | ) | $ | 9,260 | $ | - | $ | - | $ | (253 | ) | $ | 9,260 | ||||||||||
State and political subdivisions
|
(422 | ) | 10,173 | - | - | (422 | ) | 10,173 | ||||||||||||||||
Corporate
|
- | - | (493 | ) | 1,473 | (493 | ) | 1,473 | ||||||||||||||||
Residential mortgage-backed - agency
|
(239 | ) | 8,861 | - | - | (239 | ) | 8,861 | ||||||||||||||||
$ | (914 | ) | $ | 28,294 | $ | (493 | ) | $ | 1,473 | $ | (1,407 | ) | $ | 29,767 |
(In thousands)
|
2011
|
2010
|
||||||
Beginning balance – January 1
|
$ | 875 | $ | 875 | ||||
Initial credit impairment
|
- | - | ||||||
Subsequent credit impairments
|
- | - | ||||||
Reductions for amounts recognized in earnings due to intent or requirement to sell
|
- | - | ||||||
Reductions for securities sold
|
(875 | ) | - | |||||
Reductions for increases in cash flows expected to be collected
|
- | - | ||||||
Ending balance - September 30
|
$ | - | $ | 875 |
For the three months
|
For the nine months
|
|||||||||||||||
ended September 30, 2011
|
ended September 30, 2011
|
|||||||||||||||
(In thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Realized gains
|
$ | 469 | $ | 145 | $ | 796 | $ | 173 | ||||||||
Realized losses
|
- | (1 | ) | (5 | ) | (1 | ) | |||||||||
$ | 469 | $ | 144 | $ | 791 | $ | 172 |
September 30,
|
December 31,
|
|||||||
(In thousands)
|
2011
|
2010
|
||||||
Residential mortgage loans:
|
||||||||
1-4 family first-lien residential mortgages
|
$ | 152,841 | $ | 143,661 | ||||
Construction
|
3,021 | 3,569 | ||||||
155,862 | 147,230 | |||||||
Commercial loans:
|
||||||||
Real estate
|
70,685 | 69,042 | ||||||
Lines of credit
|
13,772 | 14,122 | ||||||
Other commercial and industrial
|
22,631 | 20,779 | ||||||
Municipal loans
|
2,139 | 4,826 | ||||||
109,227 | 108,769 | |||||||
Consumer loans:
|
||||||||
Home equity and junior liens
|
24,842 | 25,168 | ||||||
Other consumer
|
3,743 | 3,411 | ||||||
28,585 | 28,579 | |||||||
Total loans
|
293,674 | 284,578 | ||||||
Net deferred loan costs
|
618 | 718 | ||||||
Less allowance for loan losses
|
(4,003 | ) | (3,648 | ) | ||||
Loans receivable, net
|
$ | 290,289 | $ | 281,648 |
September 30, 2011
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
(In thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$ | 148,257 | $ | 1,359 | $ | 3,225 | $ | - | $ | 152,841 | ||||||||||
Construction
|
3,021 | - | - | - | 3,021 | |||||||||||||||
151,278 | 1,359 | 3,225 | - | 155,862 | ||||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Real estate
|
65,797 | 1,063 | 3,643 | 182 | 70,685 | |||||||||||||||
Lines of credit
|
12,339 | 65 | 1,368 | - | 13,772 | |||||||||||||||
Other commercial and industrial
|
21,275 | 519 | 837 | - | 22,631 | |||||||||||||||
Municipal loans
|
2,139 | - | - | - | 2,139 | |||||||||||||||
101,550 | 1,647 | 5,848 | 182 | 109,227 | ||||||||||||||||
Consumer loans:
|
||||||||||||||||||||
Home equity and junior liens
|
23,207 | 219 | 1,363 | 53 | 24,842 | |||||||||||||||
Other consumer
|
3,557 | 18 | 134 | 34 | 3,743 | |||||||||||||||
26,764 | 237 | 1,497 | 87 | 28,585 | ||||||||||||||||
Total loans
|
$ | 279,592 | $ | 3,243 | $ | 10,570 | $ | 269 | $ | 293,674 |
December 31, 2010
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
(In thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$ | 138,435 | $ | 1,725 | $ | 3,501 | $ | - | $ | 143,661 | ||||||||||
Construction
|
3,569 | - | - | - | 3,569 | |||||||||||||||
142,004 | 1,725 | 3,501 | - | 147,230 | ||||||||||||||||
Commercial loans:
|
||||||||||||||||||||
Real estate
|
63,834 | 524 | 4,684 | - | 69,042 | |||||||||||||||
Lines of credit
|
13,280 | 28 | 814 | - | 14,122 | |||||||||||||||
Other commercial and industrial
|
19,857 | 163 | 759 | - | 20,779 | |||||||||||||||
Municipal loans
|
4,826 | - | - | - | 4,826 | |||||||||||||||
101,797 | 715 | 6,257 | - | 108,769 | ||||||||||||||||
Consumer loans:
|
||||||||||||||||||||
Home equity and junior liens
|
23,559 | 316 | 1,293 | - | 25,168 | |||||||||||||||
Other consumer
|
3,271 | 30 | 110 | - | 3,411 | |||||||||||||||
26,830 | 346 | 1,403 | - | 28,579 | ||||||||||||||||
Total loans
|
$ | 270,631 | $ | 2,786 | $ | 11,161 | $ | - | $ | 284,578 |
September 30, 2011
|
||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
90 Days
|
Total
|
Total Loans
|
||||||||||||||||||||
(In thousands)
|
Past Due
|
Past Due
|
and Over
|
Past Due
|
Current
|
Receivable
|
||||||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$ | 2,107 | $ | 908 | $ | 1,082 | $ | 4,097 | $ | 148,744 | $ | 152,841 | ||||||||||||
Construction
|
- | - | - | - | 3,021 | 3,021 | ||||||||||||||||||
2,107 | 908 | 1,082 | 4,097 | 151,765 | 155,862 | |||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Real estate
|
960 | - | 1,766 | 2,726 | 67,959 | 70,685 | ||||||||||||||||||
Lines of credit
|
490 | 272 | 15 | 777 | 12,995 | 13,772 | ||||||||||||||||||
Other commercial and industrial
|
768 | 77 | 773 | 1,618 | 21,013 | 22,631 | ||||||||||||||||||
Municipal loans
|
- | - | - | - | 2,139 | 2,139 | ||||||||||||||||||
2,218 | 349 | 2,554 | 5,121 | 104,106 | 109,227 | |||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity and junior liens
|
173 | 342 | 607 | 1,122 | 23,720 | 24,842 | ||||||||||||||||||
Other consumer
|
35 | 20 | 42 | 97 | 3,646 | 3,743 | ||||||||||||||||||
208 | 362 | 649 | 1,219 | 27,366 | 28,585 | |||||||||||||||||||
Total loans
|
$ | 4,533 | $ | 1,619 | $ | 4,285 | $ | 10,437 | $ | 283,237 | $ | 293,674 | ||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
90 Days
|
Total
|
Total Loans
|
||||||||||||||||||||
(In thousands)
|
Past Due
|
Past Due
|
and Over
|
Past Due
|
Current
|
Receivable
|
||||||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$ | 2,045 | $ | 1,078 | $ | 1,335 | $ | 4,458 | $ | 139,203 | $ | 143,661 | ||||||||||||
Construction
|
- | - | - | - | 3,569 | 3,569 | ||||||||||||||||||
2,045 | 1,078 | 1,335 | 4,458 | 142,772 | 147,230 | |||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
Real estate
|
238 | 908 | 3,680 | 4,826 | 64,216 | 69,042 | ||||||||||||||||||
Lines of credit
|
205 | - | 69 | 274 | 13,848 | 14,122 | ||||||||||||||||||
Other commercial and industrial
|
734 | 301 | 475 | 1,510 | 19,269 | 20,779 | ||||||||||||||||||
Municipal loans
|
- | - | - | - | 4,826 | 4,826 | ||||||||||||||||||
1,177 | 1,209 | 4,224 | 6,610 | 102,159 | 108,769 | |||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Home equity and junior liens
|
586 | 371 | 303 | 1,260 | 23,908 | 25,168 | ||||||||||||||||||
Other consumer
|
15 | 7 | 62 | 84 | 3,327 | 3,411 | ||||||||||||||||||
601 | 378 | 365 | 1,344 | 27,235 | 28,579 | |||||||||||||||||||
Total loans
|
$ | 3,823 | $ | 2,665 | $ | 5,924 | $ | 12,412 | $ | 272,166 | $ | 284,578 |
September 30,
|
December 31,
|
|||||||
(In thousands)
|
2011
|
2010
|
||||||
Residential mortgage loans:
|
||||||||
1-4 family first-lien residential mortgages
|
$ | 1,082 | $ | 1,335 | ||||
Construction
|
- | - | ||||||
1,082 | 1,335 | |||||||
Commercial loans:
|
||||||||
Real estate
|
1,766 | 3,680 | ||||||
Lines of credit
|
15 | 69 | ||||||
Other commercial and industrial
|
773 | 475 | ||||||
Municipal loans
|
- | - | ||||||
2,554 | 4,224 | |||||||
Consumer loans:
|
||||||||
Home equity and junior liens
|
607 | 303 | ||||||
Other consumer
|
42 | 62 | ||||||
649 | 365 | |||||||
Total nonaccrual loans
|
$ | 4,285 | $ | 5,924 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Unpaid
|
Unpaid
|
|||||||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
|||||||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
|||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
$ | 119 | $ | 119 | $ | - | $ | 185 | $ | 185 | $ | - | ||||||||||||
Residential mortgage construction
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial real estate
|
650 | 650 | - | 1,919 | 1,919 | - | ||||||||||||||||||
Commercial lines of credit
|
74 | 74 | - | - | - | - | ||||||||||||||||||
Other commercial and industrial
|
592 | 592 | - | 96 | 96 | - | ||||||||||||||||||
Municipal
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity and junior liens
|
313 | 313 | - | 411 | 411 | - | ||||||||||||||||||
Other consumer
|
- | - | - | - | - | - | ||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
585 | 585 | 128 | 1,215 | 1,215 | 255 | ||||||||||||||||||
Residential mortgage construction
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial real estate
|
1,166 | 1,166 | 306 | 2,233 | 2,322 | 352 | ||||||||||||||||||
Commercial lines of credit
|
- | - | - | 300 | 300 | 300 | ||||||||||||||||||
Other commercial and industrial
|
464 | 464 | 200 | 346 | 346 | 78 | ||||||||||||||||||
Municipal
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity and junior liens
|
135 | 135 | 61 | 252 | 252 | 110 | ||||||||||||||||||
Other consumer
|
- | - | - | - | - | - | ||||||||||||||||||
Total:
|
||||||||||||||||||||||||
1-4 family first-lien residential mortgages
|
704 | 704 | 128 | 1,400 | 1,400 | 255 | ||||||||||||||||||
Residential mortgage construction
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial real estate
|
1,816 | 1,816 | 306 | 4,152 | 4,241 | 352 | ||||||||||||||||||
Commercial lines of credit
|
74 | 74 | - | 300 | 300 | 300 | ||||||||||||||||||
Other commercial and industrial
|
1,056 | 1,056 | 200 | 442 | 442 | 78 | ||||||||||||||||||
Municipal
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity and junior liens
|
448 | 448 | 61 | 663 | 663 | 110 | ||||||||||||||||||
Other consumer
|
- | - | - | - | - | - | ||||||||||||||||||
$ | 4,098 | $ | 4,098 | $ | 695 | $ | 6,957 | $ | 7,046 | $ | 1,095 |
For the three
months ended
|
For the nine
months ended
|
|||||||
(In thousands)
|
September 30, 2011
|
September 30, 2011
|
||||||
Residential
|
$ | 1,004 | $ | 1,109 | ||||
Commercial
|
3,023 | 3,643 | ||||||
Consumer
|
568 | 590 | ||||||
$ | 4,595 | $ | 5,342 |
For the three
months ended
|
For the nine
months ended
|
|||||||
(In thousands)
|
September 30, 2011
|
September 30, 2011
|
||||||
Residential
|
$ | 6 | $ | 29 | ||||
Commercial
|
31 | 89 | ||||||
Consumer
|
3 | 14 | ||||||
$ | 40 | $ | 132 |
For the three months ending September 30, 2011
|
||||||||||||||||||||
1-4 family
|
||||||||||||||||||||
first-lien
|
Residential
|
Other
|
||||||||||||||||||
residential
|
mortgage
|
Commercial
|
Commercial
|
commercial
|
||||||||||||||||
mortgage
|
construction
|
real estate
|
lines of credit
|
and industrial
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning Balance
|
$ | 687 | $ | - | $ | 1,625 | $ | 291 | $ | 831 | ||||||||||
Charge-offs
|
(72 | ) | - | - | (50 | ) | - | |||||||||||||
Recoveries
|
16 | - | - | 1 | - | |||||||||||||||
Provisions
|
23 | - | (78 | ) | 108 | (132 | ) | |||||||||||||
Ending balance
|
$ | 654 | $ | - | $ | 1,547 | $ | 350 | $ | 699 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
$ | 128 | $ | - | $ | 306 | $ | - | $ | 200 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$ | 526 | $ | - | $ | 1,241 | $ | 350 | $ | 499 | ||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$ | 152,841 | $ | 3,021 | $ | 70,685 | $ | 13,772 | $ | 22,631 | ||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
$ | 704 | $ | - | $ | 1,816 | $ | 74 | $ | 1,056 | ||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$ | 152,137 | $ | 3,021 | $ | 68,869 | $ | 13,698 | $ | 21,575 | ||||||||||
Home equity
|
Other
|
|||||||||||||||||||
Municipal
|
and junior liens
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning Balance
|
$ | 2 | $ | 460 | $ | 116 | $ | (6 | ) | $ | 4,006 | |||||||||
Charge-offs
|
- | (19 | ) | (37 | ) | - | (178 | ) | ||||||||||||
Recoveries
|
- | 2 | 11 | - | 30 | |||||||||||||||
Provisions
|
- | 73 | 60 | 91 | 145 | |||||||||||||||
Ending balance
|
$ | 2 | $ | 516 | $ | 150 | $ | 85 | $ | 4,003 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
$ | - | $ | 61 | $ | - | $ | - | $ | 695 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$ | 2 | $ | 455 | $ | 150 | $ | 85 | $ | 3,308 | ||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$ | 2,139 | $ | 24,842 | $ | 3,743 | $ | - | $ | 293,674 | ||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
$ | - | $ | 448 | $ | - | $ | - | $ | 4,098 | ||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$ | 2,139 | $ | 24,394 | $ | 3,743 | $ | - | $ | 289,576 |
September 30, 2011
|
||||||||||||||||||||
1-4 family
|
||||||||||||||||||||
first-lien
|
Residential
|
Other
|
||||||||||||||||||
residential
|
mortgage
|
Commercial
|
Commercial
|
commercial
|
||||||||||||||||
mortgage
|
construction
|
real estate
|
lines of credit
|
and industrial
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning Balance
|
$ | 750 | $ | - | $ | 1,204 | $ | 579 | $ | 501 | ||||||||||
Charge-offs
|
(131 | ) | - | (71 | ) | (65 | ) | - | ||||||||||||
Recoveries
|
49 | - | - | 1 | - | |||||||||||||||
Provisions
|
(14 | ) | - | 414 | (165 | ) | 198 | |||||||||||||
Ending balance
|
$ | 654 | $ | - | $ | 1,547 | $ | 350 | $ | 699 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
$ | 128 | $ | - | $ | 306 | $ | - | $ | 200 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$ | 526 | $ | - | $ | 1,241 | $ | 350 | $ | 499 | ||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$ | 152,841 | $ | 3,021 | $ | 70,685 | $ | 13,772 | $ | 22,631 | ||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
$ | 704 | $ | - | $ | 1,816 | $ | 74 | $ | 1,056 | ||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$ | 152,137 | $ | 3,021 | $ | 68,869 | $ | 13,698 | $ | 21,575 | ||||||||||
Home equity
|
Other
|
|||||||||||||||||||
Municipal
|
and junior liens
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning Balance
|
$ | 3 | $ | 424 | $ | 89 | $ | 98 | $ | 3,648 | ||||||||||
Charge-offs
|
- | (43 | ) | (88 | ) | - | (398 | ) | ||||||||||||
Recoveries
|
- | 7 | 26 | - | 83 | |||||||||||||||
Provisions
|
(1 | ) | 128 | 123 | (13 | ) | 670 | |||||||||||||
Ending balance
|
$ | 2 | $ | 516 | $ | 150 | $ | 85 | $ | 4,003 | ||||||||||
Ending balance: related to loans
|
- | |||||||||||||||||||
individually evaluated for impairment
|
$ | - | $ | 61 | $ | - | $ | - | $ | 695 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$ | 2 | $ | 455 | $ | 150 | $ | 85 | $ | 3,308 | ||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$ | 2,139 | $ | 24,842 | $ | 3,743 | $ | - | $ | 293,674 | ||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
$ | - | $ | 448 | $ | - | $ | - | $ | 4,098 | ||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$ | 2,139 | $ | 24,394 | $ | 3,743 | $ | - | $ | 289,576 |
December 31, 2010
|
||||||||||||||||||||
1-4 family
|
||||||||||||||||||||
first-lien
|
Residential
|
Other
|
||||||||||||||||||
residential
|
mortgage
|
Commercial
|
Commercial
|
commercial
|
||||||||||||||||
mortgage
|
construction
|
real estate
|
lines of credit
|
and industrial
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning Balance
|
$ | 763 | $ | - | $ | 1,009 | $ | 376 | $ | 486 | ||||||||||
Charge-offs
|
(48 | ) | - | (162 | ) | (196 | ) | (27 | ) | |||||||||||
Recoveries
|
19 | - | 55 | - | ||||||||||||||||
Provisions
|
16 | - | 302 | 399 | 42 | |||||||||||||||
Ending balance
|
$ | 750 | $ | - | $ | 1,204 | $ | 579 | $ | 501 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
$ | 255 | $ | - | $ | 352 | $ | 300 | $ | 78 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$ | 495 | $ | - | $ | 852 | $ | 279 | $ | 423 | ||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$ | 143,661 | $ | 3,569 | $ | 69,042 | $ | 14,122 | $ | 20,779 | ||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
$ | 1,400 | $ | - | $ | 4,152 | $ | 300 | $ | 442 | ||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$ | 142,261 | $ | 3,569 | $ | 64,890 | $ | 13,822 | $ | 20,337 | ||||||||||
Home equity
|
Other
|
|||||||||||||||||||
Municipal
|
and junior liens
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning Balance
|
$ | 2 | $ | 390 | $ | 76 | $ | (24 | ) | $ | 3,078 | |||||||||
Charge-offs
|
- | (76 | ) | (81 | ) | - | (590 | ) | ||||||||||||
Recoveries
|
- | 5 | 31 | - | 110 | |||||||||||||||
Provisions
|
1 | 105 | 63 | 122 | 1,050 | |||||||||||||||
Ending balance
|
$ | 3 | $ | 424 | $ | 89 | $ | 98 | $ | 3,648 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
individually evaluated for impairment
|
$ | - | $ | 110 | $ | - | $ | - | $ | 1,095 | ||||||||||
Ending balance: related to loans
|
||||||||||||||||||||
collectively evaluated for impairment
|
$ | 3 | $ | 314 | $ | 89 | $ | 98 | $ | 2,553 | ||||||||||
Loans receivables:
|
||||||||||||||||||||
Ending balance
|
$ | 4,826 | $ | 25,168 | $ | 3,411 | $ | - | $ | 284,578 | ||||||||||
Ending balance: individually
|
||||||||||||||||||||
evaluated for impairment
|
$ | - | $ | 663 | $ | - | $ | - | $ | 6,957 | ||||||||||
Ending balance: collectively
|
||||||||||||||||||||
evaluated for impairment
|
$ | 4,826 | $ | 24,505 | $ | 3,411 | $ | - | $ | 277,621 |
At September 30, 2011
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$ | - | $ | 7,092 | $ | - | $ | 7,092 | ||||||||
State and political subdivisions
|
- | 15,280 | - | 15,280 | ||||||||||||
Corporate
|
- | 10,590 | - | 10,590 | ||||||||||||
Residential mortgage-backed - agency
|
- | 49,489 | - | 49,489 | ||||||||||||
Residential mortgage-backed - private label
|
- | 593 | - | 593 | ||||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
1,303 | - | - | 1,303 | ||||||||||||
Large cap equity fund
|
948 | - | - | 948 | ||||||||||||
Other mutual funds
|
- | 267 | - | 267 | ||||||||||||
Common stock - financial services industry
|
22 | 419 | - | 441 | ||||||||||||
Total investment securities
|
$ | 2,273 | $ | 83,730 | $ | - | $ | 86,003 | ||||||||
Interest rate swap derivative
|
$ | - | $ | (205 | ) | $ | - | $ | (205 | ) | ||||||
At December 31, 2010
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Debt investment securities:
|
||||||||||||||||
US Treasury, agencies and GSEs
|
$ | - | $ | 20,023 | $ | - | $ | 20,023 | ||||||||
State and political subdivisions
|
- | 18,979 | - | 18,979 | ||||||||||||
Corporate
|
- | 5,600 | - | 5,600 | ||||||||||||
Residential mortgage-backed - agency
|
- | 36,409 | - | 36,409 | ||||||||||||
Residential mortgage-backed - private label
|
- | 837 | - | 837 | ||||||||||||
Equity investment securities:
|
||||||||||||||||
Mutual funds:
|
||||||||||||||||
Ultra short mortgage fund
|
1,558 | - | - | 1,558 | ||||||||||||
Large cap equity fund
|
1,222 | - | - | 1,222 | ||||||||||||
Other mutual funds
|
- | 244 | - | 244 | ||||||||||||
Common stock - financial services industry
|
36 | 419 | - | 455 | ||||||||||||
Total investment securities
|
$ | 2,816 | $ | 82,511 | $ | - | $ | 85,327 | ||||||||
Interest rate swap derivative
|
$ | - | $ | (110 | ) | $ | - | $ | (110 | ) |
At September 30, 2011
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 1,655 | $ | 1,655 | ||||||||
Foreclosed real estate
|
- | - | $ | 138 | $ | 138 | ||||||||||
At December 31, 2010
|
||||||||||||||||
Total Fair
|
||||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Value
|
||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 3,251 | $ | 3,251 | ||||||||
Foreclosed real estate
|
- | - | $ | - | $ | - |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
(Dollars in thousands)
|
Amounts
|
Fair Values
|
Amounts
|
Fair Values
|
||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 15,788 | $ | 15,788 | $ | 13,763 | $ | 13,763 | ||||||||
Investment securities
|
86,003 | 86,003 | 85,327 | 85,327 | ||||||||||||
Net loans
|
290,289 | 301,103 | 281,648 | 290,049 | ||||||||||||
Federal Home Loan Bank stock
|
1,528 | 1,528 | 2,134 | 2,134 | ||||||||||||
Accrued interest receivable
|
1,619 | 1,619 | 1,709 | 1,709 | ||||||||||||
Mortgage servicing rights
|
15 | 15 | 35 | 35 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$ | 343,054 | $ | 346,334 | $ | 326,502 | $ | 328,963 | ||||||||
Borrowed funds
|
28,101 | 29,250 | 41,000 | 41,984 | ||||||||||||
Junior subordinated debentures
|
5,155 | 5,155 | 5,155 | 5,155 | ||||||||||||
Accrued interest payable
|
136 | 136 | 153 | 153 | ||||||||||||
Interest rate swap derivative
|
205 | 205 | 110 | 110 | ||||||||||||
Off-balance sheet instruments:
|
||||||||||||||||
Standby letters of credit
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Commitments to extend credit
|
$ | - | $ | - | $ | - | $ | - |
September 30,
|
December 31,
|
||||||||
(In thousands)
|
2011
|
2010
|
|||||||
Cash flow hedge:
|
|||||||||
Other liabilities
|
$ | 205 | $ | 110 |
(In thousands)
|
2011
|
2010
|
||||||
Balance as of January 1:
|
$ | (110 | ) | $ | 1 | |||
Amount of losses recognized in other comprehensive income
|
(141 | ) | (230 | ) | ||||
Amount of loss reclassified from other comprehensive income
|
||||||||
and recognized as interest expense
|
46 | 45 | ||||||
Balance as of September 30:
|
$ | (205 | ) | $ | (184 | ) |
For the three months ended September 30,
|
||||||||||||||||
(in thousands)
|
2011
|
2010
|
Change
|
|||||||||||||
Service charges on deposit accounts
|
$ | 283 | $ | 319 | $ | (36 | ) | -11.3 | % | |||||||
Earnings on bank owned life insurance
|
45 | 72 | (27 | ) | -37.5 | % | ||||||||||
Loan servicing fees
|
63 | 46 | 17 | 37.0 | % | |||||||||||
Debit card interchange fees
|
93 | 76 | 17 | 22.4 | % | |||||||||||
Other charges, commissions and fees
|
130 | 131 | (1 | ) | -0.8 | % | ||||||||||
Noninterest income before gains (losses)
|
614 | 644 | (30 | ) | -4.7 | % | ||||||||||
Net gains on sales and redemptions or impairment of investment securities
|
469 | 144 | 325 | 225.7 | % | |||||||||||
Net (losses) gains on sales of loans and foreclosed real estate
|
(80 | ) | 10 | (90 | ) | -900.0 | % | |||||||||
Total noninterest income
|
$ | 1,003 | $ | 798 | 205 | 25.7 | % | |||||||||
For the nine months Ended September 30,
|
||||||||||||||||
(in thousands)
|
2011 | 2010 |
Change
|
|||||||||||||
Service charges on deposit accounts
|
$ | 854 | $ | 1,051 | $ | (197 | ) | -18.7 | % | |||||||
Earnings on bank owned life insurance
|
162 | 212 | (50 | ) | -23.6 | % | ||||||||||
Loan servicing fees
|
155 | 163 | (8 | ) | -4.9 | % | ||||||||||
Debit card interchange fees
|
273 | 229 | 44 | 19.2 | % | |||||||||||
Other charges, commissions and fees
|
403 | 390 | 13 | 3.3 | % | |||||||||||
Noninterest income before gains (losses)
|
1,847 | 2,045 | (198 | ) | -9.7 | % | ||||||||||
Net gains on sales and redemptions or impairment of investment securities
|
791 | 172 | 619 | 359.9 | % | |||||||||||
Net losses on sales of loans and foreclosed real estate
|
(40 | ) | (43 | ) | 3 | -7.0 | % | |||||||||
Total noninterest income
|
$ | 2,598 | $ | 2,174 | $ | 424 | 19.5 | % |
For the three months ended September 30,
|
||||||||||||||||
(In thousands)
|
2011
|
2010
|
Change
|
|||||||||||||
Salaries and employee benefits
|
$ | 1,787 | $ | 1,541 | $ | 246 | 16.0 | % | ||||||||
Building occupancy
|
316 | 317 | (1 | ) | -0.3 | % | ||||||||||
Data processing
|
349 | 340 | 9 | 2.6 | % | |||||||||||
Professional and other services
|
219 | 146 | 73 | 50.0 | % | |||||||||||
Advertising
|
91 | 97 | (6 | ) | -6.2 | % | ||||||||||
FDIC assessments
|
(8 | ) | 129 | (137 | ) | -106.2 | % | |||||||||
Audits and exams
|
62 | 55 | 7 | 12.7 | % | |||||||||||
Other expenses
|
392 | 327 | 65 | 19.9 | % | |||||||||||
Total noninterest expenses
|
$ | 3,208 | $ | 2,952 | $ | 256 | 8.7 | % | ||||||||
For the nine months ended September 30,
|
||||||||||||||||
(In thousands)
|
2011 | 2010 |
Change
|
|||||||||||||
Salaries and employee benefits
|
$ | 5,260 | $ | 4,601 | $ | 659 | 14.3 | % | ||||||||
Building occupancy
|
1,038 | 971 | 67 | 6.9 | % | |||||||||||
Data processing
|
1,054 | 1,021 | 33 | 3.2 | % | |||||||||||
Professional and other services
|
504 | 421 | 83 | 19.7 | % | |||||||||||
Advertising
|
366 | 200 | 166 | 83.0 | % | |||||||||||
FDIC assessments
|
316 | 386 | (70 | ) | -18.1 | % | ||||||||||
Audits and exams
|
181 | 166 | 15 | 9.0 | % | |||||||||||
Other expenses
|
1,175 | 940 | 235 | 25.0 | % | |||||||||||
Total noninterest expenses
|
$ | 9,894 | $ | 8,706 | $ | 1,188 | 13.6 | % |
Minimum
|
||||||||||||||||||||||||
To Be "Well-
|
||||||||||||||||||||||||
Minimum
|
Capitalized"
|
|||||||||||||||||||||||
For Capital
|
Under Prompt
|
|||||||||||||||||||||||
|
Actual
|
Adequacy Purposes
|
Corrective Provisions
|
|||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of September 30, 2011:
|
||||||||||||||||||||||||
Total Core Capital (to Risk-Weighted Assets)
|
$ | 42,882 | 15.8 | % | $ | 21,678 | 8.0 | % | $ | 27,097 | 10.0 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$ | 39,414 | 14.6 | % | $ | 10,839 | 4.0 | % | $ | 16,258 | 6.0 | % | ||||||||||||
Tier 1 Capital (to Average Assets)
|
$ | 39,414 | 9.6 | % | $ | 16,359 | 4.0 | % | $ | 20,449 | 5.0 | % | ||||||||||||
As of December 31, 2010:
|
||||||||||||||||||||||||
Total Core Capital (to Risk-Weighted Assets)
|
$ | 35,837 | 13.5 | % | $ | 21,197 | 8.0 | % | $ | 26,496 | 10.0 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$ | 32,440 | 12.2 | % | $ | 10,598 | 4.0 | % | $ | 15,898 | 6.0 | % | ||||||||||||
Tier 1 Capital (to Average Assets)
|
$ | 32,440 | 8.1 | % | $ | 16,001 | 4.0 | % | $ | 20,002 | 5.0 | % |
September 30,
|
December 31,
|
September 30,
|
||||||||||
(In thousands)
|
2011
|
2010
|
2010
|
|||||||||
Nonaccrual loans:
|
||||||||||||
Commercial real estate and commercial
|
$ | 2,554 | $ | 4,224 | $ | 2,090 | ||||||
Consumer
|
649 | 365 | 337 | |||||||||
Real estate - residential
|
1,082 | 1,335 | 1,054 | |||||||||
Total nonaccrual loans
|
4,285 | 5,924 | 3,481 | |||||||||
Total non-performing loans
|
4,285 | 5,924 | 3,481 | |||||||||
Foreclosed real estate
|
562 | 375 | 355 | |||||||||
Total non-performing assets
|
$ | 4,847 | $ | 6,299 | $ | 3,836 | ||||||
Non-performing loans to total loans
|
1.46 | % | 2.08 | % | 1.25 | % | ||||||
Non-performing assets to total assets
|
1.15 | % | 1.54 | % | 0.95 | % | ||||||
Interest income that would have been recorded
|
||||||||||||
under the original terms of the loans
|
$ | 291 | $ | 260 | $ | 201 |
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
I, Thomas W. Schneider, certify that:
|
|||
1. I have reviewed this Quarterly Report on Form 10-Q of Pathfinder Bancorp, Inc.;
|
|||
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|||
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|||
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|||
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting, to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|||
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|||
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|||
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
|
|||
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|||
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|||
November 14, 2011 |
/s/ Thomas W. Schneider
Thomas W. Schneider
President and Chief Executive Officer
|
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
I, James A. Dowd, certify that:
|
|||
1. I have reviewed this Quarterly Report on Form 10-Q of Pathfinder Bancorp, Inc.;
|
|||
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|||
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|||
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting, to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
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(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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November 14, 2011
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/s/ James A. Dowd
James A. Dowd
Senior Vice President and Chief Financial Officer
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Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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Thomas W. Schneider, President and Chief Executive Officer, and James A. Dowd, Senior Vice President and Chief Financial Officer of Pathfinder Bancorp, Inc. (the "Company"), each certify in his capacity as an officer of the Company that he has reviewed the Quarterly Report of the Company on Form 10-Q for the quarter ended September 30, 2011 and that to the best of his knowledge:
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1. the report fully complies with the requirements of Sections 13(a) of the Securities Exchange Act of 1934; and
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2. the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.
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November 14, 2011 |
/s/ Thomas W. Schneider
Thomas W. Schneider
President and Chief Executive Officer
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November 14, 2011
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/s/ James A. Dowd
James A. Dowd
Senior Vice President and Chief Financial Officer
|