GREENE
COUNTY BANCORP, INC.
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||
INDEX
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PART
I.
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FINANCIAL
INFORMATION
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Page
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Item
1.
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Financial
Statements (unaudited)
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* Consolidated
Statements of Financial Condition
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||
* Consolidated
Statements of Income
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||
* Consolidated
Statements of Comprehensive Income
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||
* Consolidated
Statements of Changes in Shareholders’ Equity
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||
* Consolidated
Statements of Cash Flows
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||
* Notes
to Consolidated Financial Statements
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||
Item
2.
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operation
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Item
3.
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Quantitative
and Qualitative Disclosures About Market Risk
|
|
Item
4T.
|
Controls
and Procedures
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|
PART
II.
|
OTHER
INFORMATION
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Item
1.
|
Legal
Proceedings
|
|
Item
1A.
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Risk
Factors
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
|
Item
3.
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Defaults
Upon Senior Securities
|
|
Item
4.
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Submission
of Matters to a Vote of Security Holders
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|
Item
5.
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Other
Information
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|
Item
6.
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Exhibits
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|
Signatures
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||
Exhibit
31.1 302 Certification of Chief Executive Officer
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||
Exhibit
31.2 302 Certification of Chief Financial Officer
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||
Exhibit
32.1 906 Statement of Chief Executive Officer
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||
Exhibit
32.2 906 Statement of Chief Financial Officer
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ASSETS
|
December 31, 2008
|
June 30, 2008
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||||||
Cash
and due from banks
|
$ | 9,785 | $ | 7,297 | ||||
Federal
funds sold
|
591 | 1,365 | ||||||
Total
cash and cash equivalents
|
10,376 | 8,662 | ||||||
Long
term certificate of deposit
|
1,000 | 1,000 | ||||||
Securities
available for sale, at fair value
|
108,251 | 96,692 | ||||||
Securities
held to maturity, at amortized cost
|
38,824 | 15,457 | ||||||
Federal
Home Loan Bank stock, at cost
|
1,341 | 1,386 | ||||||
Loans
|
264,063 | 240,146 | ||||||
Allowance
for loan losses
|
(2,208 | ) | (1,888 | ) | ||||
Unearned
origination fees and costs, net
|
316 | 182 | ||||||
Net
loans receivable
|
262,171 | 238,440 | ||||||
Premises
and equipment
|
15,778 | 15,108 | ||||||
Accrued
interest receivable
|
2,507 | 2,139 | ||||||
Prepaid
expenses and other assets
|
614 | 724 | ||||||
Other
real estate owned
|
100 | --- | ||||||
Total
assets
|
$ | 440,962 | $ | 379,608 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Noninterest
bearing deposits
|
$ | 36,494 | $ | 41,798 | ||||
Interest
bearing deposits
|
344,907 | 279,633 | ||||||
Total
deposits
|
381,401 | 321,431 | ||||||
Borrowings
from FHLB, short term
|
--- | 1,000 | ||||||
Borrowings
from FHLB, long term
|
19,000 | 19,000 | ||||||
Accrued
expenses and other liabilities
|
2,508 | 1,910 | ||||||
Total
liabilities
|
402,909 | 343,341 | ||||||
SHAREHOLDERS’
EQUITY
|
||||||||
Preferred
stock,
|
||||||||
Authorized
1,000,000 shares; none issued
|
--- | --- | ||||||
Common
stock, par value $.10 per share;
|
||||||||
Authorized:12,000,000
shares
|
||||||||
Issued:
4,305,670 shares
|
||||||||
Outstanding: 4,103,120
shares at December 31, 2008
|
||||||||
and
4,095,528 shares at June 30, 2008;
|
431 | 431 | ||||||
Additional
paid-in capital
|
10,376 | 10,267 | ||||||
Retained
earnings
|
28,413 | 27,183 | ||||||
Accumulated
other comprehensive income (loss)
|
362 | (9 | ) | |||||
Treasury
stock, at cost 202,550 shares at December 31,
|
||||||||
2008,
and 210,142 shares at June 30, 2008
|
(1,529 | ) | (1,586 | ) | ||||
Unearned
ESOP shares, at cost
|
--- | (19 | ) | |||||
Total
shareholders’ equity
|
38,053 | 36,267 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 440,962 | $ | 379,608 | ||||
See
notes to consolidated financial statements.
|
2008
|
2007
|
|||||||||
Interest
income:
|
||||||||||
Loans
|
$ | 7,989 | $ | 7,214 | ||||||
Investment
securities – taxable
|
799 | 504 | ||||||||
Mortgage-backed
securities
|
1,865 | 868 | ||||||||
Tax
exempt securities
|
455 | 539 | ||||||||
Interest
bearing deposits and federal funds sold
|
30 | 256 | ||||||||
Total
interest income
|
11,138 | 9,381 | ||||||||
Interest
expense:
|
||||||||||
Interest
on deposits
|
3,100 | 3,726 | ||||||||
Interest
on borrowings
|
342 | 93 | ||||||||
Total
interest expense
|
3,442 | 3,819 | ||||||||
Net
interest income
|
7,696 | 5,562 | ||||||||
Provision
for loan losses
|
613 | 278 | ||||||||
Net
interest income after provision for loan losses
|
7,083 | 5,284 | ||||||||
Noninterest
income:
|
||||||||||
Service
charges on deposit accounts
|
1,562 | 1,327 | ||||||||
Debit
card fees
|
452 | 387 | ||||||||
Investment
services
|
134 | 187 | ||||||||
E-commerce
fees
|
130 | 129 | ||||||||
Net
loss on sale of available-for-sale securities
|
(12 | ) | --- | |||||||
Write
down for impairment of available-for-sale security
|
(221 | ) | --- | |||||||
Other
operating income
|
184 | 226 | ||||||||
Total
noninterest income
|
2,229 | 2,256 | ||||||||
Noninterest
expense:
|
||||||||||
Salaries
and employee benefits
|
3,735 | 3,108 | ||||||||
Occupancy
expense
|
551 | 458 | ||||||||
Equipment
and furniture expense
|
342 | 424 | ||||||||
Service
and data processing fees
|
632 | 525 | ||||||||
Computer
supplies and support
|
155 | 158 | ||||||||
Advertising
and promotion
|
144 | 84 | ||||||||
Other
|
954 | 1,097 | ||||||||
Total
noninterest expense
|
6,513 | 5,854 | ||||||||
Income
before provision for income taxes
|
2,799 | 1,686 | ||||||||
Provision
for income taxes
|
958 | 491 | ||||||||
Net
income
|
$ | 1,841 | $ | 1,195 | ||||||
Basic
EPS
|
$ | 0.45 | $ | 0.29 | ||||||
Basic
shares outstanding
|
4,099,154 | 4,137,088 | ||||||||
Diluted
EPS
|
$ | 0.45 | $ | 0.29 | ||||||
Diluted
average shares outstanding
|
4,120,398 | 4,182,920 | ||||||||
Dividends
per share
|
$ | 0.34 | $ | 0.39 | ||||||
See
notes to consolidated financial statements.
|
2008
|
2007
|
|||||||||
Interest
income:
|
||||||||||
Loans
|
$ | 4,079 | $ | 3,656 | ||||||
Investment
securities – taxable
|
437 | 248 | ||||||||
Mortgage-backed
securities
|
1,058 | 475 | ||||||||
Tax
exempt securities
|
224 | 264 | ||||||||
Interest
bearing deposits and federal funds sold
|
4 | 129 | ||||||||
Total
interest income
|
5,802 | 4,772 | ||||||||
Interest
expense:
|
||||||||||
Interest
on deposits
|
1,653 | 1,924 | ||||||||
Interest
on borrowings
|
172 | 47 | ||||||||
Total
interest expense
|
1,825 | 1,971 | ||||||||
Net
interest income
|
3,977 | 2,801 | ||||||||
Provision
for loan losses
|
418 | 135 | ||||||||
Net
interest income after provision for loan losses
|
3,559 | 2,666 | ||||||||
Noninterest
income:
|
||||||||||
Service
charges on deposit accounts
|
776 | 696 | ||||||||
Debit
card fees
|
222 | 204 | ||||||||
Investment
services
|
52 | 95 | ||||||||
E-commerce
fees
|
60 | 59 | ||||||||
Net
loss on sale of available-for-sale securities
|
(12 | ) | --- | |||||||
Other
operating income
|
85 | 106 | ||||||||
Total
noninterest income
|
1,183 | 1,160 | ||||||||
Noninterest
expense:
|
||||||||||
Salaries
and employee benefits
|
1,731 | 1,588 | ||||||||
Occupancy
expense
|
284 | 238 | ||||||||
Equipment
and furniture expense
|
178 | 210 | ||||||||
Service
and data processing fees
|
329 | 268 | ||||||||
Computer
supplies and support
|
75 | 78 | ||||||||
Advertising
and promotion
|
61 | 42 | ||||||||
Other
|
495 | 525 | ||||||||
Total
noninterest expense
|
3,153 | 2,949 | ||||||||
Income
before provision for income taxes
|
1,589 | 877 | ||||||||
Provision
for income taxes
|
557 | 251 | ||||||||
Net
income
|
$ | 1,032 | $ | 626 | ||||||
Basic
EPS
|
$ | 0.25 | $ | 0.15 | ||||||
Basic
shares outstanding
|
4,102,160 | 4,136,620 | ||||||||
Diluted
EPS
|
$ | 0.25 | $ | 0.15 | ||||||
Diluted
average shares outstanding
|
4,121,436 | 4,180,155 | ||||||||
Dividends
per share
|
$ | 0.17 | $ | 0.14 | ||||||
See
notes to consolidated financial statements.
|
2008
|
2007
|
|||||||||
Net
income
|
$ | 1,841 | $ | 1,195 | ||||||
Other
comprehensive income:
|
||||||||||
Unrealized
holding gain arising during the six months
|
||||||||||
ended
December 31, 2008 and 2007, net of income
|
||||||||||
tax
expense of $141 and $560, respectively.
|
226 | 877 | ||||||||
Accretion
of unrealized loss on securities transferred to
held-to-maturity
|
||||||||||
net
of income tax of $2, and $0
|
3 | --- | ||||||||
Reclassification
adjustment for loss on sale of available-for-sale
securities
|
||||||||||
realized
in net income net of income taxes of $5, and $0,
respectively
|
7 | --- | ||||||||
Reclassification
adjustment for impairment write-down on available-for-sale
|
||||||||||
securities
realized in net income net of income taxes of $86, and $0,
|
||||||||||
respectively.
|
135 | --- | ||||||||
Total
other comprehensive income
|
371 | 877 | ||||||||
Comprehensive
income
|
$ | 2,212 | $ | 2,072 | ||||||
2008
|
2007
|
|||||||||
Net
income
|
$ | 1,032 | $ | 626 | ||||||
Other
comprehensive income:
|
||||||||||
Unrealized
holding gain arising during the three months ended December
31,
|
||||||||||
2008
and 2007, net of income tax expense of $323 and $269,
respectively
|
512 | 422 | ||||||||
Accretion
of unrealized loss on securities transferred to
held-to-maturity
|
||||||||||
net
of income tax of $2, and $0
|
3 | --- | ||||||||
Reclassification
adjustment for loss on sale of available-for-sale
securities
|
||||||||||
realized
in net income net of income taxes of $5, and $0,
respectively
|
7 | --- | ||||||||
Total
other comprehensive income
|
522 | 422 | ||||||||
Comprehensive
income
|
$ | 1,554 | $ | 1,048 | ||||||
Accumulated
|
|||||||
Additional
|
Other
|
Unearned
|
Total
|
||||
Capital
|
Paid
– In
|
Retained
|
Comprehensive
|
Treasury
|
ESOP
|
Shareholders’
|
|
Stock
|
Capital
|
Earnings
|
Income
|
Stock
|
Shares
|
Equity
|
|
(loss)
|
|||||||
Balance
at
|
|||||||
June
30, 2007
|
$431
|
$10,319
|
$25,962
|
($400)
|
($828)
|
($69)
|
$35,415
|
ESOP
shares earned
|
55
|
30
|
85
|
||||
Options
exercised
|
(9)
|
31
|
22
|
||||
Tax
effect, Options
|
3
|
3
|
|||||
Shares
repurchased
|
(153)
|
(153)
|
|||||
Dividends
declared
|
(720)
|
(720)
|
|||||
Net
income
|
1,195
|
1,195
|
|||||
Adoption
of FIN 48
|
(218)
|
(218)
|
|||||
Unrealized
gain on securities, net
|
877
|
877
|
|||||
Balance
at
|
|||||||
December
31, 2007
|
$431
|
$10,368
|
$26,219
|
$477
|
($950)
|
($39)
|
$36,506
|
Balance
at
|
|
|
|
|
|
||
June
30, 2008
|
$431
|
$10,267
|
$27,183
|
($9)
|
($1,586)
|
($19)
|
$36,267
|
|
|||||||
ESOP
shares earned
|
43
|
19
|
62
|
||||
Options
exercised
|
(27)
|
57
|
30
|
||||
Stock
options earned
|
93
|
93
|
|||||
Dividends
declared
|
(611)
|
(611)
|
|||||
Net
income
|
1,841
|
1,841
|
|||||
Unrealized
gain on securities, net
|
371
|
371
|
|||||
Balance
at
|
|||||||
December
31, 2008
|
$431
|
$10,376
|
$28,413
|
$362
|
($1,529)
|
--
|
$38,053
|
2008
|
2007
|
|||||||||
Cash
flows from operating activities:
|
||||||||||
Net
Income
|
$ | 1,841 | $ | 1,195 | ||||||
Adjustments
to reconcile net income to cash provided by operating
activities:
|
||||||||||
Depreciation
|
437 | 509 | ||||||||
Net
amortization of premiums and discounts
|
112 | 139 | ||||||||
Net
amortization of deferred loan costs and fees
|
65 | 31 | ||||||||
Provision
for loan losses
|
613 | 278 | ||||||||
ESOP
compensation earned
|
62 | 85 | ||||||||
Stock
option compensation
|
93 | --- | ||||||||
Write-down
of impairment of available-for-sale securities
|
221 | --- | ||||||||
Net
loss on sale of available-for-sale securities
|
12 | --- | ||||||||
Net
increase (decrease) in accrued income taxes
|
223 | (122 | ) | |||||||
Net
increase in accrued interest receivable
|
(368 | ) | (34 | ) | ||||||
Net
decrease in prepaid and other assets
|
68 | 104 | ||||||||
Net
increase (decrease) in other liabilities
|
183 | (126 | ) | |||||||
Net
cash provided by operating activities
|
3,562 | 2,059 | ||||||||
Cash
flows from investing activities:
|
||||||||||
Available for sale
securities:
|
||||||||||
Proceeds
from maturities and calls of securities
|
5,844 | 5,652 | ||||||||
Proceeds
from sale of securities
|
4,587 | --- | ||||||||
Purchases
of securities
|
(50,436 | ) | (18,055 | ) | ||||||
Principal
payments on securities
|
5,291 | 5,731 | ||||||||
Held to maturity
securities:
|
||||||||||
Proceeds
from maturities and calls of securities
|
1,558 | 130 | ||||||||
Purchases
of securities and other investments
|
(3,846 | ) | --- | |||||||
Principal
payments on securities
|
2,336 | 20 | ||||||||
Net
redemption (purchase) of Federal Home Loan Bank Stock
|
45 | (180 | ) | |||||||
Net
increase in loans receivable
|
(24,509 | ) | (15,491 | ) | ||||||
Purchases
of premises and equipment
|
(1,107 | ) | (1,025 | ) | ||||||
Net
cash used in investing activities
|
(60,237 | ) | (23,218 | ) | ||||||
Cash
flows from financing activities:
|
||||||||||
Net
decrease in short-term FHLB advances
|
(1,000 | ) | --- | |||||||
Proceeds
of long-term FHLB borrowings
|
--- | 4,000 | ||||||||
Dividends
paid
|
(611 | ) | (720 | ) | ||||||
Proceeds
from exercise of stock options
|
30 | 22 | ||||||||
Purchase
of treasury stock
|
--- | (153 | ) | |||||||
Net
increase in deposits
|
59,970 | 13,015 | ||||||||
Net
cash provided by financing activities
|
58,389 | 16,164 | ||||||||
Net
increase (decrease) in cash and cash equivalents
|
1,714 | (4,995 | ) | |||||||
Cash
and cash equivalents at beginning of period
|
8,662 | 14,026 | ||||||||
Cash
and cash equivalents at end of period
|
$ | 10,376 | $ | 9,031 |
Non-cash
investing activities:
|
|||
Foreclosed
loans transferred to other real estate owned
|
$100
|
$---
|
|
Reclassification
of available-for-sale securities to held-to-maturity
securities
|
23,754
|
16,535
|
|
See
notes to consolidated financial statements.
|
Fair
Value Measurements Using
|
||||
Quoted
Prices
|
Significant
|
Significant
|
||
In
Active Markets
|
Other
Observable
|
Unobservable
|
||
For
Identical Assets
|
Inputs
|
Inputs
|
||
(In
thousands)
|
December
31, 2008
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
Assets:
|
||||
Securities
available-for-sale
|
$108,251
|
$56,725
|
$51,526
|
$---
|
Net
Income
|
Weighted
Average Number of Shares
Outstanding |
Earnings
Per Share
|
|
Six
Months Ended
|
|||
December
31, 2008:
|
$1,841,000
|
||
Basic
|
4,099,154
|
$0.45
|
|
Effect
of dilutive stock options
|
21,244
|
(0.00)
|
|
Diluted
|
4,120,398
|
$0.45
|
|
December
31, 2007:
|
$1,195,000
|
|
|
Basic
|
4,137,088
|
$0.29
|
|
Effect
of dilutive stock options
|
45,832
|
(0.00)
|
|
Diluted
|
4,182,920
|
$0.29
|
|
Net
Income
|
Weighted
Average Number of Shares
Outstanding
|
Earnings
Per Share
|
|
Three
Months Ended
|
|||
December
31, 2008:
|
$1,032,000
|
||
Basic
|
4,102,160
|
$0.25
|
|
Effect
of dilutive stock options
|
19,276
|
(0.00)
|
|
Diluted
|
4,121,436
|
$0.25
|
|
December
31, 2007:
|
$626,000
|
||
Basic
|
4,136,620
|
$0.15
|
|
Effect
of dilutive stock options
|
43,535
|
(0.00)
|
|
Diluted
|
4,180,155
|
$0.15
|
Weighted
average risk-free interest rate
|
3.23 | % | ||
Weighted
average expected term
|
6.5
years
|
|||
Weighted
average expected volatility
|
59.57 | % | ||
Weighted
average expected dividend
|
6.72 | % |
2008
|
2007
|
||||||
Weighted
Average
|
Weighted
Average
|
||||||
Exercise
|
Exercise
|
||||||
Price
|
Price
|
||||||
Shares
|
Per
Share
|
Shares
|
Per
Share
|
||||
Outstanding
at beginning of year
|
41,944
|
$5.00
|
72,664
|
$4.55
|
|||
Options
granted
|
164,500
|
$12.50
|
---
|
---
|
|||
Exercised
|
(7,592)
|
$3.94
|
(5,580)
|
$3.94
|
|||
Forfeited
|
---
|
---
|
---
|
---
|
|||
Outstanding
at period end
|
198,852
|
$11.25
|
67,084
|
$4.60
|
|||
Exercisable
at period end
|
34,352
|
$5.24
|
67,084
|
$4.60
|
Options
Outstanding and Exercisable
|
|||
Range
of Exercise Prices
|
Number
Outstanding
|
Weighted
Average Remaining Contractual Life
|
Weighted
Average Exercise Price
|
$3.94
|
25,852
|
1.25
|
$3.94
|
$9.20
|
8,500
|
3.25
|
$9.20
|
$3.94-$9.20
|
34,352
|
1.75
|
$5.24
|
(a)
|
changes
in general market interest rates,
|
(b)
|
general
economic conditions,
|
(c)
|
legislative
and regulatory changes,
|
(d)
|
monetary
and fiscal policies of the U.S. Treasury and the Federal
Reserve,
|
(e)
|
changes
in the quality or composition of The Bank of Greene County’s loan
portfolio or the consolidated investment portfolios of The Bank of Greene
County, Greene County Commercial Bank and Greene County Bancorp,
Inc.,
|
(f)
|
deposit
flows,
|
(g)
|
competition,
and
|
(h)
|
demand
for financial services in Greene County Bancorp, Inc.’s market
area.
|
Carrying
Value at
|
||||||||||||||||
December
31, 2008
|
June
30, 2008
|
|||||||||||||||
(Dollars
in thousands)
|
Balance
|
Percentage
of
portfolio
|
Balance
|
Percentage
of
portfolio
|
||||||||||||
Securities
available-for-sale:
|
||||||||||||||||
U.S.
government sponsored enterprises
|
$ | 26,494 | 18.0 | % | $ | 16,146 | 14.4 | % | ||||||||
State
and political subdivisions
|
10,907 | 7.4 | 10,850 | 9.7 | ||||||||||||
Mortgage-backed
securities
|
62,667 | 42.6 | 60,782 | 54.2 | ||||||||||||
Asset-backed
securities
|
48 | 0.1 | 49 | 0.1 | ||||||||||||
Corporate
debt securities
|
8,107 | 5.5 | 8,486 | 7.5 | ||||||||||||
Total
debt securities
|
108,223 | 73.6 | 96,313 | 85.9 | ||||||||||||
Equity
securities and other
|
28 | 0.0 | 379 | 0.3 | ||||||||||||
Total
available-for-sale securities
|
108,251 | 73.60 | 96,692 | 86.2 | ||||||||||||
Securities
held-to-maturity:
|
||||||||||||||||
State
and political subdivisions
|
15,410 | 10.5 | 15,457 | 13.8 | ||||||||||||
Mortgage-backed
securities
|
23,077 | 15.7 | --- | --- | ||||||||||||
Other
|
337 | 0.2 | --- | --- | ||||||||||||
Total
held-to-maturity securities
|
38,824 | 26.4 | 15,457 | 13.8 | ||||||||||||
Total
securities
|
$ | 147,075 | 100.0 | % | $ | 112,149 | 100.0 | % |
(Dollars
in thousands)
|
||||||||||||||||
At
December
31, 2008
|
Percentage
of
portfolio
|
At
June
30, 2008
|
Percentage
of
portfolio
|
|||||||||||||
Real
estate mortgages
|
||||||||||||||||
Residential
|
$ | 171,156 | 64.8 | % | $ | 158,193 | 65.9 | % | ||||||||
Construction
and land
|
13,256 | 5.0 | 12,295 | 5.1 | ||||||||||||
Commercial
|
36,993 | 14.0 | 30,365 | 12.6 | ||||||||||||
Multifamily
|
1,019 | 0.4 | 1,094 | 0.5 | ||||||||||||
Home
equity loans
|
26,199 | 9.9 | 23,957 | 10.0 | ||||||||||||
Commercial
loans
|
11,112 | 4.2 | 9,669 | 4.0 | ||||||||||||
Installment
loans
|
3,889 | 1.5 | 4,172 | 1.7 | ||||||||||||
Passbook
loans
|
439 | 0.2 | 401 | 0.2 | ||||||||||||
Total
loans
|
$ | 264,063 | 100.0 | % | $ | 240,146 | 100.0 | % | ||||||||
Deferred
fees and costs
|
316 | 182 | ||||||||||||||
Less:
Allowance for loan losses
|
(2,208 | ) | (1,888 | ) | ||||||||||||
Net
loans receivable
|
$ | 262,171 | $ | 238,440 |
(Dollars
in thousands)
|
Six
months ended
|
|||||||
December
31, 2008
|
December
31, 2007
|
|||||||
Balance
at the beginning of the period
|
$ | 1,888 | $ | 1,486 | ||||
Charge-offs:
|
||||||||
Residential
mortgage
|
65 | --- | ||||||
Commercial
loan
|
85 | 15 | ||||||
Installment
loans to individuals
|
49 | 16 | ||||||
Overdraft
protection
|
139 | 115 | ||||||
Total
loans charged off
|
338 | 146 | ||||||
Recoveries:
|
||||||||
Residential
mortgage
|
1 | --- | ||||||
Home
equity loans
|
--- | 27 | ||||||
Installment
loans to individuals
|
18 | 19 | ||||||
Overdraft
protection
|
26 | 30 | ||||||
Total
recoveries
|
45 | 76 | ||||||
Net
charge-offs
|
293 | 70 | ||||||
Provisions
charged to operations
|
613 | 278 | ||||||
Balance
at the end of the period
|
$ | 2,208 | $ | 1,694 | ||||
Ratio
of net charge-offs to average loans outstanding,
annualized
|
0.23 | % | 0.06 | % | ||||
Ratio
of net charge-offs to nonperforming assets, annualized
|
31.97 | % | 7.93 | % | ||||
Allowance
for loan loss to nonperforming loans
|
127.41 | % | 95.92 | % | ||||
Allowance
for loan loss to total loans receivable
|
0.84 | % | 0.76 | % |
(Dollars
in thousands)
|
At
December 31, 2008
|
At
June 30, 2008
|
||||||
Nonaccruing
loans:
|
||||||||
Real
estate mortgage loans:
|
||||||||
Residential
mortgages loans (one- to-four family)
|
$ | 1,082 | $ | 1,123 | ||||
Construction
and land loans
|
13 | 38 | ||||||
Commercial
mortgage loans
|
89 | 91 | ||||||
Multifamily
mortgage loans
|
26 | 26 | ||||||
Home
equity
|
344 | 493 | ||||||
Commercial
loans
|
142 | 142 | ||||||
Installment
loans to individuals
|
37 | 26 | ||||||
Total
nonaccruing loans
|
1,733 | 1,939 | ||||||
Foreclosed
real estate
|
100 | --- | ||||||
Total
nonperforming assets
|
$ | 1,833 | $ | 1,939 | ||||
Total
nonperforming assets as a percentage of total assets
|
0.42 | % | 0.51 | % | ||||
Total
nonperforming loans to total loans
|
0.66 | % | 0.81 | % | ||||
(Dollars
in thousands)
|
At
December
31, 2008
|
Percentage
of
portfolio
|
At
June
30, 2008
|
Percentage
of
portfolio
|
Noninterest
bearing deposits
|
$36,494
|
9.6%
|
$41,798
|
13.0%
|
Certificates
of deposit
|
94,454
|
24.8
|
89,470
|
27.9
|
Savings
deposits
|
69,722
|
18.3
|
72,706
|
22.6
|
Money
market deposits
|
44,816
|
11.7
|
37,970
|
11.8
|
NOW
deposits
|
135,915
|
35.6
|
79,487
|
24.7
|
Total
deposits
|
$381,401
|
100.0%
|
$321,431
|
100.0%
|
(In
thousands)
|
||||
Fiscal
year end
|
||||
2010
|
$ | 4,000 | ||
2011
|
5,000 | |||
2012
|
3,000 | |||
2013
|
1,000 | |||
2014
|
6,000 | |||
$ | 19,000 |
(Dollars
in thousands)
|
2008
|
2008
|
2008
|
2007
|
2007
|
2007
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
|
Interest
earning assets:
|
||||||
Loans
receivable, net1
|
$253,327
|
$7,989
|
6.31%
|
$217,494
|
$7,214
|
6.63%
|
Securities2
|
137,074
|
3,084
|
4.50
|
89,330
|
1,885
|
4.22
|
Federal
funds
|
1,575
|
12
|
1.52
|
7,147
|
172
|
4.81
|
Interest
bearing bank balances
|
1,939
|
18
|
1.86
|
3,888
|
84
|
4.32
|
FHLB
stock
|
1,449
|
35
|
4.83
|
663
|
26
|
7.84
|
Total
interest earning assets
|
395,364
|
11,138
|
5.63%
|
318,522
|
9,381
|
5.89%
|
Cash
and due from banks
|
6,058
|
|
|
5,508
|
||
Allowance
for loan losses
|
(1,936)
|
(1,564)
|
||||
Other
non-interest earning assets
|
17,965
|
15,071
|
||||
Total
assets
|
$417,451
|
$337,537
|
||||
|
|
|||||
Interest
bearing liabilities:
|
|
|
||||
Savings
and money market deposits
|
$113,149
|
$684
|
1.21%
|
$108,192
|
$1,054
|
1.95%
|
NOW
deposits
|
112,879
|
1,062
|
1.88
|
67,566
|
922
|
2.73
|
Certificates
of deposit
|
91,360
|
1,354
|
2.96
|
79,694
|
1,750
|
4.39
|
Borrowings
|
21,426
|
342
|
3.19
|
5,130
|
93
|
3.63
|
Total
interest bearing liabilities
|
338,814
|
3,442
|
2.03%
|
260,582
|
3,819
|
2.93%
|
Non-interest
bearing deposits
|
39,601
|
|
|
40,760
|
|
|
Other
non-interest bearing liabilities
|
2,255
|
314
|
||||
Shareholders’
equity
|
36,781
|
35,881
|
||||
Total
liabilities and equity
|
$417,451
|
$337,537
|
||||
|
|
|||||
Net
interest income
|
$7,696
|
$5,562
|
||||
Net
interest rate spread
|
3.60%
|
2.96%
|
||||
Net
interest margin
|
3.89%
|
3.49%
|
||||
Average
interest earning assets to
|
||||||
average
interest bearing liabilities
|
116.69%
|
122.23%
|
||||
(Dollars
in thousands)
|
2008
|
2008
|
2008
|
2007
|
2007
|
2007
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
|
Interest
earning assets:
|
||||||
Loans
receivable, net1
|
$259,785
|
$4,079
|
6.28%
|
$221,451
|
$3,656
|
6.60%
|
Securities2
|
154,228
|
1,707
|
4.43
|
91,408
|
973
|
4.26
|
Federal
funds
|
842
|
1
|
0.48
|
8,335
|
97
|
4.66
|
Interest
bearing bank balances
|
873
|
3
|
1.37
|
3,212
|
32
|
3.99
|
FHLB
stock
|
1,501
|
12
|
3.20
|
669
|
14
|
8.37
|
Total
interest earning assets
|
417,229
|
5,802
|
5.56%
|
325,075
|
4,772
|
5.87%
|
Cash
and due from banks
|
5,775
|
5,298
|
|
|||
Allowance
for loan losses
|
(1,959)
|
(1,619)
|
||||
Other
non-interest earning assets
|
18,390
|
14,777
|
||||
Total
assets
|
$439,435
|
$343,531
|
||||
Interest
bearing liabilities:
|
||||||
Savings
and money market deposits
|
$111,145
|
$323
|
1.16%
|
$104,455
|
$496
|
1.90%
|
NOW
deposits
|
136,205
|
645
|
1.89
|
75,863
|
540
|
2.85
|
Certificates
of deposit
|
92,821
|
685
|
2.95
|
81,651
|
888
|
4.35
|
Borrowings
|
22,574
|
172
|
3.05
|
5,261
|
47
|
3.57
|
Total
interest bearing liabilities
|
362,745
|
1,825
|
2.01%
|
267,230
|
1,971
|
2.95%
|
Non-interest
bearing deposits
|
37,374
|
|
39,997
|
|
||
Other
non-interest bearing liabilities
|
2,241
|
120
|
||||
Shareholders’
equity
|
37,075
|
36,184
|
||||
Total
liabilities and equity
|
$439,435
|
$343,531
|
||||
Net
interest income
|
$3,977
|
$2,801
|
||||
Net
interest rate spread
|
3.55%
|
2.92%
|
||||
Net
interest margin
|
3.81%
|
3.45%
|
||||
Average
interest earning assets to
|
||||||
average
interest bearing liabilities
|
115.02%
|
121.65%
|
||||
(i)
|
change
attributable to changes in volume (changes in volume multiplied by prior
rate);
|
(ii)
|
change
attributable to changes in rate (changes in rate multiplied by prior
volume); and
|
(iii)
|
the
net change.
|
Six
Months
Ended
December 31,
|
Three
Months
Ended
December 31,
|
|||||
(Dollars
in thousands)
|
2008
versus 2007
|
2008
versus 2007
|
||||
Increase/(Decrease)
|
Total
|
Increase/(Decrease)
|
Total
|
|||
Due
to
|
Increase/
|
Due
to
|
Increase/
|
|||
Interest-earning
assets:
|
Volume
|
Rate
|
(Decrease)
|
Volume
|
Rate
|
(Decrease)
|
Loans
receivable, net1
|
$1,138
|
($363)
|
$775
|
$607
|
($184)
|
$423
|
Securities2
|
1,067
|
132
|
1,199
|
694
|
40
|
734
|
Federal
funds
|
(85)
|
(75)
|
(160)
|
(48)
|
(48)
|
(96)
|
Interest-bearing
bank balances
|
(31)
|
(35)
|
(66)
|
(15)
|
(14)
|
(29)
|
FHLB
stock
|
22
|
(13)
|
9
|
10
|
(12)
|
(2)
|
Total
interest-earning assets
|
2,111
|
(354)
|
1,757
|
1,248
|
(218)
|
1,030
|
Interest-bearing
liabilities:
|
||||||
Savings
deposits
|
46
|
(416)
|
(370)
|
30
|
(203)
|
(173)
|
NOW
deposits
|
488
|
(348)
|
140
|
330
|
(225)
|
105
|
Certificates
of deposit
|
231
|
(627)
|
(396)
|
110
|
(313)
|
(203)
|
Borrowings
|
262
|
(13)
|
249
|
133
|
(8)
|
125
|
Total
interest-bearing liabilities
|
1,027
|
(1,404)
|
(377)
|
603
|
(749)
|
(146)
|
Net
interest income
|
$1,084
|
$1,050
|
$2,134
|
$645
|
$531
|
$1,176
|