Florida
|
59-2935028
|
(I.R.S. Employer
|
|
of
Incorporation or Organization)
|
Identification
No.)
|
Large
Accelerated Filer o
|
Accelerated
Filer x
|
Non-accelerated Filer o
|
Common
stock, par value $.01 per share
|
9,414,325
shares
|
(class)
|
Outstanding
at August 6, 2007
|
Item
1. Financial
Statements
|
Page
|
|||
Condensed
Consolidated Balance Sheets -
At
June 30, 2007 (Unaudited) and At December 31, 2006
|
2
|
|||
|
||||
Condensed
Consolidated Statements of Operations (Unaudited)
Three
and Six Months Ended June 30, 2007 and 2006
|
3
|
|||
Condensed
Consolidated Statements of Stockholders' Equity (Unaudited)
Six
Months Ended June 30, 2007 and 2006
|
4
|
|||
Condensed
Consolidated Statements of Cash Flows (Unaudited)
Six
Months Ended June 30, 2007 and 2006
|
5-6
|
|||
Notes
to Condensed Consolidated Financial Statements (Unaudited)
|
7-14
|
|||
Review
by Independent Registered Public Accounting Firm
|
15
|
|||
Report
of Independent Registered Public Accounting Firm
|
16
|
|||
Item
2. Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
17-22
|
|||
Item
3. Quantitative
and Qualitative Disclosures about Market Risk
|
23
|
|||
|
||||
Item
4. Controls
and Procedures
|
23
|
|||
PART
II. OTHER INFORMATION
|
||||
Item
1. Legal
Proceedings
|
23
|
|||
Item
1A. Risk
Factors
|
23
|
|||
Item
4. Submission
of Matters to a Vote of Security Holders
|
24
|
|||
Item
6. Exhibits
|
25
|
|||
SIGNATURES
|
26
|
At
|
|||||||
June
30,
2007
|
December
31,
2006
|
||||||
(Unaudited)
|
|||||||
Assets
|
|||||||
Cash
and due from banks
|
$
|
7,353
|
$
|
7,095
|
|||
Interest-earning
deposits
|
808
|
1,585
|
|||||
Cash
and cash equivalents
|
8,161
|
8,680
|
|||||
Securities
available for sale
|
64,389
|
65,558
|
|||||
Loans,
less allowance for loan losses of $10,292 in 2007 and $5,098 in
2006
|
599,218
|
603,917
|
|||||
Accrued
interest receivable
|
4,477
|
4,832
|
|||||
Premises
and equipment, net
|
17,606
|
17,378
|
|||||
Foreclosed
assets
|
2,438
|
36
|
|||||
Federal
Home Loan Bank stock
|
9,457
|
9,591
|
|||||
Mortgage
servicing rights, net
|
536
|
599
|
|||||
Bank-owned
life insurance
|
7,366
|
7,231
|
|||||
Other
assets
|
7,476
|
5,142
|
|||||
Total
assets
|
$
|
721,124
|
$
|
722,964
|
|||
Liabilities
and Stockholders' Equity
|
|||||||
Liabilities:
|
|||||||
Noninterest-bearing
demand deposits
|
$
|
12,828
|
$
|
13,887
|
|||
Interest-bearing
demand deposits
|
56,075
|
51,584
|
|||||
Money-market
deposits
|
65,081
|
64,458
|
|||||
Savings
deposits
|
2,808
|
3,065
|
|||||
Time
deposits
|
338,410
|
339,800
|
|||||
Total
deposits
|
475,202
|
472,794
|
|||||
Federal
Home Loan Bank advances
|
181,500
|
179,700
|
|||||
Other
borrowings
|
58
|
1,393
|
|||||
Junior
subordinated debentures
|
5,155
|
5,155
|
|||||
Capital
lease obligation
|
-
|
2,504
|
|||||
Accrued
interest payable
|
2,258
|
1,506
|
|||||
Official
checks
|
1,266
|
1,933
|
|||||
Other
liabilities
|
5,740
|
3,359
|
|||||
Total
liabilities
|
671,179
|
668,344
|
|||||
Stockholders'
equity:
|
|||||||
Common
stock, $.01 par value, 15,000,000 shares authorized;
|
|||||||
9,414,325
shares outstanding in 2007 and 9,351,542 in 2006,
respectively
|
94
|
94
|
|||||
Additional
paid-in capital
|
44,344
|
43,858
|
|||||
Retained
earnings
|
7,016
|
11,160
|
|||||
Unallocated
ESOP shares (43,386 shares in 2007 and 31,939 shares in
2006)
|
(373
|
)
|
(257
|
)
|
|||
Accumulated
other comprehensive loss
|
(1,136
|
)
|
(235
|
)
|
|||
Total
stockholders' equity
|
49,945
|
54,620
|
|||||
Total
liabilities and stockholders' equity
|
$
|
721,124
|
$
|
722,964
|
Three
Months Ended June 30,
|
|
Six
Months Ended June 30,
|
|
||||||||||
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|||||
Interest
income:
|
|||||||||||||
Loans
|
$
|
9,704
|
$
|
10,166
|
$
|
19,403
|
$
|
20,021
|
|||||
Securities
|
819
|
766
|
1,663
|
1,364
|
|||||||||
Other
|
167
|
176
|
343
|
376
|
|||||||||
Total
interest income
|
10,690
|
11,108
|
21,409
|
21,761
|
|||||||||
Interest
expense:
|
|||||||||||||
Deposits
|
5,576
|
4,890
|
10,943
|
9,244
|
|||||||||
Other
|
2,039
|
2,040
|
4,167
|
4,125
|
|||||||||
Total
interest expense
|
7,615
|
6,930
|
15,110
|
13,369
|
|||||||||
Net
interest income
|
3,075
|
4,178
|
6,299
|
8,392
|
|||||||||
Provision
for loan losses
|
5,145
|
95
|
5,295
|
234
|
|||||||||
Net
interest (expense) income after
|
|||||||||||||
provision
for loan losses
|
(2,070
|
)
|
4,083
|
1,004
|
8,158
|
||||||||
Other
income:
|
|||||||||||||
Service
charges and fees
|
106
|
98
|
213
|
326
|
|||||||||
Gains
on sales of loans held for sale
|
33
|
93
|
105
|
120
|
|||||||||
Net
gains (loss) on sales of securities available for sale
|
-
|
(16
|
)
|
35
|
(17
|
)
|
|||||||
Rental
income
|
84
|
75
|
169
|
144
|
|||||||||
Increase
in cash surrender value of life insurance policies
|
69
|
54
|
136
|
118
|
|||||||||
Other
|
144
|
249
|
254
|
511
|
|||||||||
Total
other income
|
436
|
553
|
912
|
1,202
|
|||||||||
Other
expenses:
|
|||||||||||||
Salary
and employee benefits
|
2,111
|
1,873
|
4,033
|
3,576
|
|||||||||
Occupancy
expense
|
593
|
479
|
1,104
|
944
|
|||||||||
Professional
services
|
374
|
202
|
634
|
397
|
|||||||||
Data
processing
|
225
|
187
|
455
|
371
|
|||||||||
Marketing
and advertising
|
115
|
105
|
231
|
196
|
|||||||||
Write
down of foreclosed assets
|
354
|
-
|
354
|
-
|
|||||||||
Other
|
437
|
459
|
837
|
813
|
|||||||||
Total
other expenses
|
4,209
|
3,305
|
7,648
|
6,297
|
|||||||||
(Loss)
earnings before income taxes
|
(5,843
|
)
|
1,331
|
(5,732
|
)
|
3,063
|
|||||||
Income
tax (benefit) expense
|
(2,291
|
)
|
434
|
(2,340
|
)
|
1,015
|
|||||||
Net
(loss) earnings
|
$
|
(3,552
|
)
|
$
|
897
|
$
|
(3,392
|
)
|
$
|
2,048
|
|||
(Loss)
earnings per share:
|
|||||||||||||
Basic
|
$
|
(.38
|
)
|
$
|
.10
|
$
|
(.36
|
)
|
$
|
.24
|
|||
Diluted
|
$
|
(.38
|
)
|
$
|
.10
|
$
|
(.36
|
)
|
$
|
.23
|
|||
Weighted-average
shares outstanding for (in thousands):
|
|||||||||||||
Basic
|
9,361
|
9,069
|
9,352
|
8,676
|
|||||||||
Diluted
|
9,361
|
9,209
|
9,352
|
8,801
|
|||||||||
Cash
dividends per share
|
$
|
.04
|
$
|
.05
|
$
|
.08
|
$
|
.09
|
|
Common
Stock
|
Additional
Paid-In
|
Retained
|
Unallocated
ESOP
|
Accumulated
Other Comprehensive
|
Total
Stockholders'
|
||||||||||||||||
|
Shares
|
Amount
|
Capital
|
Earnings
|
Shares
|
Loss
|
Equity
|
|||||||||||||||
Balance
at December 31, 2005
|
8,299,343
|
$
|
83
|
$
|
33,679
|
$
|
11,459
|
$
|
(157
|
)
|
$
|
(923
|
)
|
$
|
44,141
|
|||||||
Comprehensive
income:
|
||||||||||||||||||||||
Net
earnings (unaudited)
|
-
|
-
|
-
|
2,048
|
-
|
-
|
2,048
|
|||||||||||||||
Change
in unrealized loss on securities available for sale, net of income
taxes
of $166 (unaudited)
|
-
|
-
|
-
|
-
|
-
|
(274
|
)
|
(274
|
)
|
|||||||||||||
Comprehensive
income (unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
1,774
|
|||||||||||||||
Issuance
of common stock:
|
||||||||||||||||||||||
Options
exercised (unaudited)
|
19,300
|
-
|
101
|
-
|
-
|
-
|
101
|
|||||||||||||||
Private
equity offering, net of offering costs (unaudited)
|
850,000
|
9
|
7,870
|
-
|
-
|
-
|
7,879
|
|||||||||||||||
Stock
dividend (unaudited)
|
182,899
|
2
|
2,074
|
(2,076
|
)
|
-
|
-
|
-
|
||||||||||||||
Share-based
compensation (unaudited)
|
-
|
-
|
27
|
-
|
-
|
-
|
27
|
|||||||||||||||
Dividends
paid (unaudited)
|
-
|
-
|
-
|
(792
|
)
|
-
|
-
|
(792
|
)
|
|||||||||||||
Balance
at June 30, 2006 (unaudited)
|
9,351,542
|
$
|
94
|
$
|
43,751
|
$
|
10,639
|
$
|
(157
|
)
|
$
|
(1,197
|
)
|
$
|
53,130
|
|||||||
Balance
at December 31, 2006
|
9,351,542
|
$
|
94
|
$
|
43,858
|
$
|
11,160
|
$
|
(257
|
)
|
$
|
(235
|
)
|
$
|
54,620
|
|||||||
Comprehensive
(loss) income:
|
||||||||||||||||||||||
Net
loss (unaudited)
|
-
|
-
|
-
|
(3,392
|
)
|
-
|
-
|
(3,392
|
)
|
|||||||||||||
Change
in unrealized loss on securities available for sale, net of income
taxes
of $(546) (unaudited)
|
-
|
-
|
-
|
-
|
-
|
(901
|
)
|
(901
|
)
|
|||||||||||||
Comprehensive
(loss) income (unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,293
|
)
|
||||||||||||||
Issuance
of common stock -options exercised (unaudited)
|
62,783
|
-
|
307
|
-
|
-
|
-
|
307
|
|||||||||||||||
ESOP
shares purchased (6,618 shares) (unaudited)
|
-
|
-
|
116
|
-
|
(116
|
)
|
-
|
-
|
||||||||||||||
Share-based
compensation (unaudited)
|
-
|
-
|
63
|
-
|
-
|
-
|
63
|
|||||||||||||||
Dividends
paid (unaudited)
|
-
|
-
|
-
|
(752
|
)
|
-
|
(752
|
)
|
||||||||||||||
Balance
at June 30, 2007
|
||||||||||||||||||||||
(unaudited)
|
9,414,325
|
$
|
94
|
$
|
44,344
|
$
|
7,016
|
$
|
(373
|
)
|
$
|
(1,136
|
)
|
$
|
49,945
|
Six
Months Ended June
30,
|
|||||||
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
(loss) earnings
|
$
|
(3,392
|
)
|
$
|
2,048
|
||
Adjustments
to reconcile net (loss) earnings to net cash provided by operating
activities:
|
|||||||
Depreciation
and amortization
|
432
|
383
|
|||||
Provision
for loan losses
|
5,295
|
234
|
|||||
Write
down of foreclosed assets
|
354
|
-
|
|||||
Capitalized
costs on foreclosed assets
|
(25
|
)
|
-
|
||||
Net
amortization of premiums and discounts on securities
|
(56
|
)
|
(14
|
)
|
|||
Net
amortization of loan origination fees, costs, premiums and
discounts
|
510
|
563
|
|||||
Amortization
of mortgage servicing rights
|
88
|
120
|
|||||
Increase
in cash surrender value of life insurance policies
|
(135
|
)
|
(118
|
)
|
|||
Proceeds
from sales of loans held for sale
|
7,709
|
6,728
|
|||||
Loans
originated for resale
|
(4,719
|
)
|
(3,087
|
)
|
|||
Gain
on sale of loans held for sale
|
(105
|
)
|
(120
|
)
|
|||
Net
loss (gain) on sales of securities available for sale
|
(35
|
)
|
17
|
||||
Share
based compensation
|
63
|
27
|
|||||
Cash
provided by (used in) resulting from changes in:
|
|||||||
Accrued
interest receivable
|
355
|
(182
|
)
|
||||
Other
assets
|
(1,788
|
)
|
379
|
||||
Accrued
interest payable
|
752
|
(184
|
)
|
||||
Official
checks
|
(667
|
)
|
1
|
||||
Other
liabilities
|
1,441
|
951
|
|||||
Net
cash provided by operating activities
|
6,077
|
7,746
|
|||||
Cash
flows from investing activities:
|
|||||||
Purchase
of securities available for sale
|
(14,010
|
)
|
(27,693
|
)
|
|||
Proceeds
from principal repayments and sales of securities available for
sale
|
13,823
|
6,614
|
|||||
Loan
principal repayments, net of originations
|
18,523
|
33,134
|
|||||
Purchase
of loans
|
(25,270
|
)
|
(26,811
|
)
|
|||
Purchase
of premises and equipment
|
(660
|
)
|
(2,267
|
)
|
|||
Net
redemption of Federal Home Loan Bank stock
|
134
|
569
|
|||||
Net
proceeds from sale of foreclosed assets
|
-
|
528
|
|||||
Net
cash used in investing activities
|
(7,460
|
)
|
(15,926
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Net
decrease in other borrowings
|
(1,335
|
)
|
(4,100
|
)
|
|||
Net
increase in deposits
|
2,408
|
18,325
|
|||||
Net
increase (decrease) in Federal Home Loan Bank advances
|
1,800
|
(18,500
|
)
|
||||
Principal
repayments under capital lease obligation
|
(2,504
|
)
|
(142
|
)
|
|||
Net
increase in advance payments from borrowers for taxes and
insurance
|
940
|
1,933
|
|||||
Dividends
paid
|
(752
|
)
|
(792
|
)
|
|||
Net
proceeds from private equity offering
|
-
|
7,879
|
|||||
Net
proceeds from the exercise of options on common stock
|
307
|
101
|
|||||
Net
cash provided by financing activities
|
864
|
4,704
|
|||||
Net
decrease in cash and cash equivalents
|
(519
|
)
|
(3,476
|
)
|
|||
Cash
and cash equivalents at beginning of period
|
8,680
|
12,996
|
|||||
Cash
and cash equivalents at end of period
|
$
|
8,161
|
$
|
9,520
|
Six
Months Ended June
30
|
|||||||
2007
|
2006
|
||||||
Supplemental
disclosure of cash flow information-
|
|||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
14,358
|
$
|
13,242
|
|||
Income
taxes
|
$
|
-
|
$
|
1,805
|
|||
Noncash
transactions:
|
|||||||
Accumulated
other comprehensive loss, net change in unrealized loss on securities
available for sale, net of tax
|
$
|
(901
|
)
|
$
|
(274
|
)
|
|
Transfer
of loans in portfolio to loans held for sale
|
$
|
2,478
|
$
|
3,220
|
|||
Mortgage
servicing rights recognized upon sale of loans held for
sale
|
$
|
25
|
$
|
-
|
|||
Transfer
of loans to foreclosed assets
|
$
|
2,731
|
$
|
-
|
At
June 30,
2007
|
At
December 31, 2006
|
||||||
(unaudited)
|
|||||||
Residential
Lending:
|
|||||||
Mortgages
(1)
|
$
|
367,268
|
$
|
356,133
|
|||
Lot
loans
|
41,781
|
42,676
|
|||||
Construction
|
34,727
|
36,570
|
|||||
Total
Residential lending
|
443,776
|
435,379
|
|||||
Commercial
Lending:
|
|||||||
Real
Estate Secured
|
105,578
|
93,095
|
|||||
Land,
Development and Construction
|
71,125
|
88,586
|
|||||
Commercial
loans
|
16,528
|
15,308
|
|||||
Total
Commercial lending
|
193,231
|
196,989
|
|||||
Consumer
loans
|
181
|
125
|
|||||
Total
loans
|
637,188
|
632,493
|
|||||
Add
(deduct):
|
|||||||
Allowance
for loan losses
|
(10,292
|
)
|
(5,098
|
)
|
|||
Net
premiums, discounts, deferred fees and costs
|
3,488
|
3,567
|
|||||
Undisbursed
portion of loans in process
|
(31,166
|
)
|
(27,045
|
)
|
|||
Loans,
net
|
$
|
599,218
|
$
|
603,917
|
(1) |
Includes
approximately $710,000 and $1,142,000 of loans held for sale at June
30,
2007 and December 31, 2006,
respectively.
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Balance
at beginning of period
|
$
|
5,248
|
$
|
4,637
|
$
|
5,098
|
$
|
4,477
|
|||||
Provision
for loan losses
|
5,145
|
95
|
5,295
|
234
|
|||||||||
Charge-offs
|
(102
|
)
|
(24
|
)
|
(102
|
)
|
(24
|
)
|
|||||
Recoveries
|
1
|
-
|
1
|
21
|
|||||||||
Balance
at end of period
|
$
|
10,292
|
$
|
4,708
|
$
|
10,292
|
$
|
4,708
|
At
June 30,
2007
|
At
December 31,
2006
|
||||||
Non-accrual
loans
|
$
|
31,190
|
$
|
11,970
|
|||
Accruing
loans past due ninety days or more
|
$
|
-
|
$
|
-
|
|||
Recorded
investment in impaired loans for which there is a related allowance
for
loan losses
|
$
|
20,821
|
$
|
8,623
|
|||
Recorded
investment in impaired loans for which there is no related allowance
for
loan losses
|
$
|
8,278
|
$
|
-
|
|||
Allowance
for loan losses related to impaired loans
|
$
|
6,854
|
$
|
2,327
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Interest
income recognized and received on impaired loans
|
$
|
-
|
$
|
24
|
$
|
22
|
$
|
48
|
|||||
Average
net recorded investment in impaired loans
|
$
|
19,433
|
$
|
6,387
|
$
|
15,001
|
$
|
4,656
|
Actual
|
|
Regulatory
Requirements
|
|||||
Total
capital to risk-weighted assets
|
11.24
|
%
|
10.00
|
%
|
|||
Tier
I capital to risk-weighted assets
|
10.62
|
%
|
6.00
|
%
|
|||
Tier
I capital to total assets-leverage ratio
|
7.29
|
%
|
5.00
|
%
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Weighted-average
shares outstanding before adjustment for unallocated ESOP
shares
|
9,404
|
9,091
|
9,389
|
8,698
|
|||||||||
Adjustment
to reflect the effect of unallocated ESOP shares
|
(43
|
)
|
(22
|
)
|
(37
|
)
|
(22
|
)
|
|||||
Weighted-average
shares outstanding for basic earnings per share
|
9,361
|
9,069
|
9,352
|
8,676
|
|||||||||
Basic
(loss) earnings per share
|
$
|
(.38
|
)
|
$
|
.10
|
$
|
(.36
|
)
|
$
|
.24
|
|||
Total
weighted-average shares outstanding for basic earnings per share
computation
|
9,361
|
9,069
|
9,352
|
8,676
|
|||||||||
Additional
dilutive shares using the average market value for the period utilizing
the treasury stock method regarding stock options
|
-
|
140
|
-
|
125
|
|||||||||
Weighted-average
shares and equivalents outstanding for diluted earnings per
share
|
9,361
|
9,209
|
9,352
|
8,801
|
|||||||||
Diluted
earnings per share
|
(.38
|
)
|
$
|
.10
|
(.36
|
)
|
$
|
.23
|
Three-Months
Ended
June
30,
|
Six-Months
Ended June 30,
|
|||||||||
2006
|
2007
|
2006
|
||||||||
Expected
stock price volatility
|
25.00
|
%
|
47.95
|
%
|
25.00
|
%
|
||||
Risk-free
interest rate
|
4.88
|
%
|
4.66
|
%
|
4.60
|
%
|
||||
Weighted
average expected life in years
|
3.0
|
6.5
|
3.0
|
|||||||
Expected
dividend yield
|
1.51
|
%
|
1.58
|
%
|
1.40
|
%
|
||||
Per
share weighted-average grant date fair value
|
||||||||||
of
options issued during the period
|
$
|
2.31
|
$
|
4.66
|
$
|
2.42
|
Number
of
Options
|
|
Weighted
Avg. Per Option
Exercise Price
|
|
Weighted
Avg. Remaining Contract Term (in
years)
|
|
Aggregate
Intrinsic
Value
|
|||||||
Options
Granted Under the Employee Plan:
|
|||||||||||||
Outstanding
at December 31, 2006
|
432,388
|
$
|
8.33
|
||||||||||
Options
exercised
|
(62,783
|
)
|
4.89
|
||||||||||
Options
forfeited
|
(16,322
|
)
|
11.22
|
||||||||||
Outstanding
at June 30, 2007
|
353,283
|
$
|
8.81
|
4.15
|
$
|
242
|
|||||||
Exercisable
at June 30, 2007
|
303,675
|
$
|
8.54
|
4.28
|
$
|
242
|
Number
of
Options
|
|
Weighted
Avg. Per Option
Exercise Price
|
|
Weighted
Avg. Remaining Contract Term (in
years)
|
|
Aggregate
Intrinsic
Value
|
|||||||
Options
Granted Under the Director Plan:
|
|||||||||||||
Outstanding
at December 31, 2006
|
95,646
|
$
|
6.79
|
||||||||||
Options
granted
|
28,500
|
10.10
|
|||||||||||
Outstanding
at June 30, 2007
|
124,146
|
$
|
7.55
|
7.05
|
$
|
192
|
|||||||
Exercisable
at June 30, 2007
|
69,422
|
$
|
5.49
|
3.95
|
$
|
192
|
Number
of
Units
|
||||
Restricted
Stock Units under the 2005
Director Plan:
|
||||
Outstanding
at December 31, 2006
|
14,631
|
|||
Stock
unit dividends earned
|
121
|
|||
Stock
units forfeited
|
(1,955
|
)
|
||
Outstanding
at June 30, 2007
|
12,797
|
Nonvested
Shares
|
Number
of Units
|
Weighted-Average
Grant-Date Fair Value
|
|||||
Nonvested
at December 31, 2006
|
12,264
|
$
|
10.86
|
||||
Dividends
credited
|
100
|
10.75
|
|||||
Forfeited
|
(1,955
|
)
|
12.03
|
||||
Nonvested
at June 30, 2007
|
10,409
|
10.64
|
Contract
Amount
|
||||
Commitments
to extend credit
|
$
|
40,369
|
||
Unused
lines of credit
|
$
|
12,359
|
||
Standby
letters of credit
|
$
|
1,434
|
||
Loans
in process
|
$
|
31,166
|
Three
Months Ended June 30,
|
|||||||||||||||||||
2007
|
2006
|
||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
||||||||||||||
($
in thousands)
|
|||||||||||||||||||
Assets:
|
|||||||||||||||||||
Loans
(1)
|
$
|
592,704
|
$
|
9,704
|
6.55
|
%
|
$
|
633,786
|
$
|
10,166
|
6.42
|
%
|
|||||||
Securities
(2)
|
63,623
|
921
|
5.79
|
60,566
|
881
|
5.82
|
|||||||||||||
Other
interest-earning assets (3)
|
8,945
|
167
|
7.47
|
11,715
|
176
|
6.01
|
|||||||||||||
Total
interest-earning assets
|
665,272
|
10,792
|
6.49
|
706,067
|
11,223
|
6.36
|
|||||||||||||
Other
noninterest-earning assets
|
44,478
|
40,946
|
|||||||||||||||||
Total
assets
|
$
|
709,750
|
$
|
747,013
|
|||||||||||||||
Liabilities
and stockholders’ equity:
|
|||||||||||||||||||
Noninterest-bearing
demand deposits
|
$
|
12,427
|
-
|
-
|
$
|
14,789
|
-
|
-
|
|||||||||||
Interest-bearing
demand and money-
|
|||||||||||||||||||
market
deposits
|
116,454
|
1,118
|
3.84
|
135,181
|
1,279
|
3.78
|
|||||||||||||
Savings
deposits
|
2,966
|
12
|
1.62
|
3,511
|
17
|
1.94
|
|||||||||||||
Time
deposits
|
338,758
|
4,446
|
5.25
|
332,056
|
3,594
|
4.33
|
|||||||||||||
Total
deposits
|
470,605
|
5,576
|
4.74
|
485,537
|
4,890
|
4.03
|
|||||||||||||
Other
borrowings (4)
|
176,927
|
2,039
|
4.61
|
198,783
|
2,040
|
4.10
|
|||||||||||||
Total
interest-bearing liabilities (5)
|
635,105
|
7,615
|
4.80
|
699,513
|
6,930
|
4.14
|
|||||||||||||
Other
noninterest-bearing liabilities
|
7,948
|
9,720
|
|||||||||||||||||
Stockholders'
equity
|
54,270
|
52,973
|
|||||||||||||||||
Total
liabilities and stockholders' equity
|
$
|
709,750
|
$
|
747,013
|
|||||||||||||||
Net
interest margin (6)
|
$
|
3,177
|
1.91
|
%
|
$
|
4,293
|
2.43
|
%
|
|||||||||||
Interest-rate
spread (7)
|
1.69
|
%
|
2.22
|
%
|
|||||||||||||||
Ratio
of average interest-earning assets to average interest- bearing
liabilities
|
1.05
|
1.05
|
(1) |
Includes
nonaccrual loans.
|
(2) |
Interest
income on tax-exempt securities has been adjusted to a fully tax
equivalent basis.
|
(3) |
Includes
Federal Home Loan Bank stock and interest-earning
deposits.
|
(4) |
Includes
Federal Home Loan Bank advances, other borrowings, junior subordinated
debentures and capital lease
obligation.
|
(5) |
Total
interest-bearing liabilities exclude noninterest-bearing demand
deposits.
|
(6) |
Net
interest margin is annualized net interest income divided by average
interest-earning assets.
|
(7) |
Interest-rate
spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities.
|
Six
Months Ended June 30,
|
|||||||||||||||||||
2007
|
2006
|
||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
||||||||||||||
($
in thousands)
|
|||||||||||||||||||
Assets:
|
|||||||||||||||||||
Loans
(1)
|
$
|
598,784
|
$
|
19,403
|
6.48
|
%
|
$
|
633,158
|
$
|
20,021
|
6.32
|
%
|
|||||||
Securities
(2)
|
64,133
|
1,873
|
5.84
|
55,226
|
1,583
|
5.73
|
|||||||||||||
Other
interest-earning assets (3)
|
10,564
|
343
|
6.49
|
13,127
|
376
|
5.73
|
|||||||||||||
Total
interest-earning assets
|
673,481
|
21,619
|
6.42
|
701,511
|
21,980
|
6.27
|
|||||||||||||
Other
noninterest-earning assets
|
41,528
|
40,328
|
|||||||||||||||||
Total
assets
|
$
|
715,009
|
$
|
741,839
|
|||||||||||||||
Liabilities
and stockholders’ equity:
|
|||||||||||||||||||
Noninterest-bearing
demand deposits
|
$
|
12,688
|
-
|
-
|
$
|
14,387
|
-
|
-
|
|||||||||||
Interest-bearing
demand and money-
|
|||||||||||||||||||
market
deposits
|
116,875
|
2,211
|
3.78
|
130,645
|
2,406
|
3.68
|
|||||||||||||
Savings
deposits
|
3,052
|
26
|
1.70
|
3,596
|
31
|
1.72
|
|||||||||||||
Time
deposits
|
337,096
|
8,706
|
5.17
|
330,066
|
6,807
|
4.12
|
|||||||||||||
Total
deposits
|
469,711
|
10,943
|
4.66
|
478,694
|
9,244
|
3.86
|
|||||||||||||
Other
borrowings (4)
|
183,486
|
4,167
|
4.54
|
205,620
|
4,125
|
4.01
|
|||||||||||||
Total
interest-bearing liabilities (5)
|
640,509
|
15,110
|
4.72
|
669,927
|
13,369
|
3.99
|
|||||||||||||