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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CB Financial Services Inc | NASDAQ:CBFV | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.30 | 1.33% | 22.90 | 22.70 | 22.90 | 22.90 | 22.61 | 22.61 | 481 | 19:28:42 |
Pennsylvania
|
001-36706
|
51-0534721
|
(State or other jurisdiction of
incorporation or organization)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 9.01.
|
Financial Statements and Exhibits.
|
(a)
|
Financial Statements of Businesses Acquired
|
(b)
|
Pro Forma Financial Information
|
(c)
|
Shell Company Transactions
Not applicable.
|
(d)
|
Exhibits
|
99.1
|
Unaudited Consolidated Interim Financial Statements of FedFirst Financial Corporation and Subsidiaries for the Quarterly Period Ended September 30, 2014
|
99.2
|
Pro Forma Financial Information
|
CB FINANCIAL SERVICES, INC. | |||
Date: January 15, 2015 | By: | /s/ Kevin D. Lemley | |
Kevin D. Lemley | |||
Executive Vice President and Chief Financial Officer
|
September 30,
|
December 31,
|
|||||||
(Dollars in thousands, except share data)
|
2014
|
2013
|
||||||
Assets:
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash and due from banks
|
$ | 1,968 | $ | 2,034 | ||||
Interest-earning deposits
|
21,820 | 3,518 | ||||||
Total cash and cash equivalents
|
23,788 | 5,552 | ||||||
Securities available-for-sale
|
- | 26,772 | ||||||
Loans, net
|
283,351 | 268,812 | ||||||
Federal Home Loan Bank ("FHLB") stock, at cost
|
3,472 | 2,589 | ||||||
Accrued interest receivable - loans
|
898 | 858 | ||||||
Accrued interest receivable - securities
|
- | 135 | ||||||
Premises and equipment, net
|
1,452 | 1,852 | ||||||
Bank-owned life insurance
|
8,739 | 8,560 | ||||||
Goodwill
|
1,080 | 1,080 | ||||||
Real estate owned
|
16 | 126 | ||||||
Deferred tax assets
|
2,115 | 2,118 | ||||||
Other assets
|
416 | 573 | ||||||
Total assets
|
$ | 325,327 | $ | 319,027 | ||||
Liabilities and Stockholders' Equity:
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 27,904 | $ | 27,247 | ||||
Interest-bearing
|
181,288 | 191,985 | ||||||
Total deposits
|
209,192 | 219,232 | ||||||
Borrowings
|
62,861 | 45,591 | ||||||
Advance payments by borrowers for taxes and insurance
|
104 | 458 | ||||||
Accrued interest payable - deposits
|
75 | 107 | ||||||
Accrued interest payable - borrowings
|
91 | 144 | ||||||
Other liabilities
|
1,629 | 1,644 | ||||||
Total liabilities
|
273,952 | 267,176 | ||||||
Stockholders' equity
|
||||||||
FedFirst Financial Corporation stockholders' equity:
|
||||||||
Preferred stock $0.01 par value; 10,000,000 shares authorized; none issued
|
- | - | ||||||
Common stock $0.01 par value; 20,000,000 shares authorized; 2,330,878 and
|
||||||||
2,357,293 shares issued and outstanding
|
23 | 24 | ||||||
Additional paid-in-capital
|
30,764 | 31,169 | ||||||
Retained earnings - substantially restricted
|
21,398 | 21,528 | ||||||
Accumulated other comprehensive income, net of deferred tax of $0 and $40
|
- | 62 | ||||||
Unearned Employee Stock Ownership Plan ("ESOP")
|
(907 | ) | (1,037 | ) | ||||
Total FedFirst Financial Corporation stockholders' equity
|
51,278 | 51,746 | ||||||
Noncontrolling interest in subsidiary
|
97 | 105 | ||||||
Total stockholders' equity
|
51,375 | 51,851 | ||||||
Total liabilities and stockholders' equity
|
$ | 325,327 | $ | 319,027 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(Dollars in thousands, except per share data)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Interest income:
|
||||||||||||||||
Loans
|
$ | 3,159 | $ | 2,912 | $ | 9,211 | $ | 8,855 | ||||||||
Securities - taxable
|
143 | 196 | 464 | 695 | ||||||||||||
Securities - tax exempt
|
37 | 37 | 112 | 113 | ||||||||||||
Other interest-earning assets
|
24 | 10 | 65 | 18 | ||||||||||||
Total interest income
|
3,363 | 3,155 | 9,852 | 9,681 | ||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
282 | 341 | 901 | 1,086 | ||||||||||||
Borrowings
|
183 | 317 | 684 | 967 | ||||||||||||
Total interest expense
|
465 | 658 | 1,585 | 2,053 | ||||||||||||
Net interest income
|
2,898 | 2,497 | 8,267 | 7,628 | ||||||||||||
Provision for loan losses
|
- | 200 | 295 | 365 | ||||||||||||
Net interest income after provision for loan losses
|
2,898 | 2,297 | 7,972 | 7,263 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Fees and service charges
|
158 | 187 | 455 | 576 | ||||||||||||
Insurance commissions
|
805 | 755 | 2,513 | 2,505 | ||||||||||||
Income from bank-owned life insurance
|
59 | 60 | 179 | 182 | ||||||||||||
Net gain on sales of available-for-sale securities
|
76 | - | 76 | - | ||||||||||||
Other
|
63 | 6 | 83 | 98 | ||||||||||||
Total noninterest income
|
1,161 | 1,008 | 3,306 | 3,361 | ||||||||||||
Noninterest expense:
|
||||||||||||||||
Compensation and employee benefits
|
1,559 | 1,484 | 4,713 | 4,584 | ||||||||||||
Occupancy
|
227 | 271 | 848 | 849 | ||||||||||||
FDIC insurance premiums
|
56 | 44 | 153 | 134 | ||||||||||||
Data processing
|
176 | 165 | 520 | 490 | ||||||||||||
Professional services
|
110 | 139 | 427 | 441 | ||||||||||||
Advertising
|
107 | 123 | 354 | 385 | ||||||||||||
Merger-related
|
280 | - | 1,667 | - | ||||||||||||
Other
|
436 | 325 | 1,045 | 872 | ||||||||||||
Total noninterest expense
|
2,951 | 2,551 | 9,727 | 7,755 | ||||||||||||
Income before income tax expense and noncontrolling
|
||||||||||||||||
interest in net income of consolidated subsidiary
|
1,108 | 754 | 1,551 | 2,869 | ||||||||||||
Income tax expense
|
408 | 273 | 546 | 966 | ||||||||||||
Net income before noncontrolling interest in net income
|
||||||||||||||||
of consolidated subsidiary
|
700 | 481 | 1,005 | 1,903 | ||||||||||||
Noncontrolling interest in net income of consolidated subsidiary
|
22 | 18 | 69 | 70 | ||||||||||||
Net income of FedFirst Financial Corporation
|
$ | 678 | $ | 463 | $ | 936 | $ | 1,833 | ||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.30 | $ | 0.20 | $ | 0.42 | $ | 0.75 | ||||||||
Diluted
|
0.29 | 0.19 | 0.41 | 0.75 | ||||||||||||
Weighted-average shares outstanding:
|
||||||||||||||||
Basic
|
2,238,632 | 2,373,378 | 2,233,033 | 2,428,692 | ||||||||||||
Diluted
|
2,306,897 | 2,407,398 | 2,294,504 | 2,460,099 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(Dollars in thousands)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Net income before noncontrolling interest in net income
|
||||||||||||||||
of consolidated subsidiary
|
$ | 700 | $ | 481 | $ | 1,005 | $ | 1,903 | ||||||||
Other comprehensive (loss) income:
|
||||||||||||||||
Unrealized gain on securities available-for-sale,
|
||||||||||||||||
net of income tax expense
|
- | 486 | - | 486 | ||||||||||||
Reclassification adjustment on sales of securities available-for-sale,
|
||||||||||||||||
net of income tax benefit
|
(273 | ) | - | (62 | ) | - | ||||||||||
Other comprehensive (loss) income, net of income tax (benefit) expense
|
(273 | ) | 486 | (62 | ) | 486 | ||||||||||
Comprehensive income
|
427 | 967 | 943 | 2,389 | ||||||||||||
Less: Comprehensive income attributable to the
|
||||||||||||||||
noncontrolling interest in subsidiary
|
22 | 18 | 69 | 70 | ||||||||||||
Comprehensive income attributable to FedFirst Financial Corporation
|
$ | 405 | $ | 949 | $ | 874 | $ | 2,319 |
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
Noncontrolling
|
Total
|
|||||||||||||||||||||||||
Common
|
Paid-in-
|
Retained
|
Comprehensive
|
Unearned
|
Interest in
|
Stockholders'
|
||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
Stock
|
Capital
|
Earnings
|
(Loss) Income
|
ESOP
|
Subsidiary
|
Equity
|
|||||||||||||||||||||
December 31, 2012
|
$ | 25 | $ | 34,986 | $ | 19,821 | $ | (388 | ) | $ | (1,210 | ) | $ | 60 | $ | 53,294 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
- | - | 1,833 | - | - | 70 | 1,903 | |||||||||||||||||||||
Other comprehensive income, net of tax of $314
|
- | - | - | 486 | - | - | 486 | |||||||||||||||||||||
Issuance of common stock (14,750 shares)
|
- | 260 | - | - | - | - | 260 | |||||||||||||||||||||
Purchase and retirement of common
|
||||||||||||||||||||||||||||
stock (122,957 shares)
|
(1 | ) | (2,298 | ) | - | - | - | - | (2,299 | ) | ||||||||||||||||||
ESOP shares committed to be released
|
- | (17 | ) | - | - | 130 | - | 113 | ||||||||||||||||||||
Stock-based compensation expense
|
- | 190 | - | - | - | - | 190 | |||||||||||||||||||||
Stock awards granted (14,750 shares)
|
- | (260 | ) | - | - | - | - | (260 | ) | |||||||||||||||||||
Stock options exercised (1,326 shares)
|
- | (2 | ) | - | - | - | - | (2 | ) | |||||||||||||||||||
Distribution to noncontrolling shareholder
|
- | - | - | - | - | (32 | ) | (32 | ) | |||||||||||||||||||
Dividends paid ($0.16 per share)
|
- | - | (389 | ) | - | - | - | (389 | ) | |||||||||||||||||||
September 30, 2013
|
$ | 24 | $ | 32,859 | $ | 21,265 | $ | 98 | $ | (1,080 | ) | $ | 98 | $ | 53,264 |
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
Noncontrolling
|
Total
|
|||||||||||||||||||||||||
Common
|
Paid-in-
|
Retained
|
Comprehensive
|
Unearned
|
Interest in
|
Stockholders'
|
||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
Stock
|
Capital
|
Earnings
|
Income
|
ESOP
|
Subsidiary
|
Equity
|
|||||||||||||||||||||
December 31, 2013
|
$ | 24 | $ | 31,169 | $ | 21,528 | $ | 62 | $ | (1,037 | ) | $ | 105 | $ | 51,851 | |||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
- | - | 936 | - | - | 69 | 1,005 | |||||||||||||||||||||
Other comprehensive loss, net of tax of $(40)
|
- | - | - | (62 | ) | - | - | (62 | ) | |||||||||||||||||||
Issuance of common stock (5,150 shares)
|
- | 111 | - | - | - | - | 111 | |||||||||||||||||||||
Purchase and retirement of common
|
||||||||||||||||||||||||||||
stock (41,483 shares)
|
(1 | ) | (831 | ) | - | - | - | - | (832 | ) | ||||||||||||||||||
ESOP shares committed to be released
|
- | 1 | - | - | 130 | - | 131 | |||||||||||||||||||||
Stock-based compensation expense
|
- | 241 | - | - | - | - | 241 | |||||||||||||||||||||
Stock awards granted (5,150 shares)
|
- | (111 | ) | - | - | - | - | (111 | ) | |||||||||||||||||||
Stock options exercised and issued (9,918 shares)
|
- | 184 | - | - | - | - | 184 | |||||||||||||||||||||
Distribution to noncontrolling shareholder
|
- | - | - | - | - | (77 | ) | (77 | ) | |||||||||||||||||||
Dividends paid ($0.47 per share)
|
- | - | (1,066 | ) | - | - | - | (1,066 | ) | |||||||||||||||||||
September 30, 2014
|
$ | 23 | $ | 30,764 | $ | 21,398 | $ | - | $ | (907 | ) | $ | 97 | $ | 51,375 |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
(Dollars in thousands)
|
2014
|
2013
|
||||||
Cash flows from operating activities:
|
||||||||
Net income of FedFirst Financial Corporation
|
$ | 936 | $ | 1,833 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Noncontrolling interest in net income of consolidated subsidiary
|
69 | 70 | ||||||
Provision for loan losses
|
295 | 365 | ||||||
Depreciation
|
539 | 217 | ||||||
Amortization of intangibles
|
11 | 42 | ||||||
Net gain on sales of available-for-sale securities
|
(76 | ) | - | |||||
Net loss on sales of real estate owned
|
76 | - | ||||||
Net amortization of security premiums and loan costs
|
158 | 315 | ||||||
Noncash expense for ESOP
|
131 | 113 | ||||||
Noncash expense for stock-based compensation
|
241 | 190 | ||||||
Increase in bank-owned life insurance
|
(179 | ) | (182 | ) | ||||
Refund of FDIC prepaid insurance assessment
|
- | 643 | ||||||
Decrease in other assets
|
468 | 947 | ||||||
Increase in other liabilities
|
(100 | ) | (282 | ) | ||||
Net cash provided by operating activities
|
2,569 | 4,313 | ||||||
Cash flows from investing activities:
|
||||||||
Net loan originations
|
(14,903 | ) | (13,183 | ) | ||||
Proceeds from maturities and principal repayments of securities available-for-sale
|
3,893 | 14,202 | ||||||
Proceeds from sales of securities available-for-sale
|
22,748 | - | ||||||
Purchases of premises and equipment
|
(139 | ) | (116 | ) | ||||
(Increase) decrease in FHLB stock, at cost
|
(883 | ) | 1,523 | |||||
Proceeds from sales of real estate owned
|
50 | 131 | ||||||
Net cash provided by investing activities
|
10,766 | 2,557 | ||||||
Cash flows from financing activities:
|
||||||||
Net increase (decrease) in short-term borrowings
|
30,140 | (4,188 | ) | |||||
Repayments of long-term borrowings
|
(12,870 | ) | (1,990 | ) | ||||
Net (decrease) increase in deposits
|
(10,040 | ) | 10,811 | |||||
Decrease in advance payments by borrowers for taxes and insurance
|
(354 | ) | (568 | ) | ||||
Purchase and retirement of common stock
|
(832 | ) | (2,299 | ) | ||||
Dividends paid
|
(1,066 | ) | (389 | ) | ||||
Distribution to noncontrolling shareholder
|
(77 | ) | (32 | ) | ||||
Net cash provided by financing activities
|
4,901 | 1,345 | ||||||
Net increase in cash and cash equivalents
|
18,236 | 8,215 | ||||||
Cash and cash equivalents, beginning of period
|
5,552 | 5,874 | ||||||
Cash and cash equivalents, end of period
|
$ | 23,788 | $ | 14,089 | ||||
Supplemental cash flow information:
|
||||||||
Cash paid for:
|
||||||||
Interest on deposits and borrowings (including interest credited
|
||||||||
to deposit accounts of $933 and $1,132 respectively)
|
$ | 1,670 | $ | 2,149 | ||||
Income taxes
|
522 | 380 | ||||||
Real estate acquired in settlement of loans
|
16 | 507 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
December 31, 2013
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Municipal bonds
|
$ | 7,988 | $ | 207 | $ | 225 | $ | 7,970 | ||||||||
Mortgage-backed - GSEs
|
7,740 | 452 | - | 8,192 | ||||||||||||
REMICs
|
6,946 | 98 | 25 | 7,019 | ||||||||||||
Corporate debt
|
3,996 | - | 405 | 3,591 | ||||||||||||
Total securities available-for-sale
|
$ | 26,670 | $ | 757 | $ | 655 | $ | 26,772 |
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||||||||||||||
Number
|
Gross
|
Number
|
Gross
|
Number
|
Gross
|
|||||||||||||||||||||||||||||||
of
|
Fair
|
Unrealized
|
of
|
Fair
|
Unrealized
|
of
|
Fair
|
Unrealized
|
||||||||||||||||||||||||||||
December 31, 2013
|
Securities
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
|||||||||||||||||||||||||||
Municipal bonds
|
2 | $ | 4,147 | $ | 142 | 1 | $ | 1,058 | $ | 83 | 3 | $ | 5,205 | $ | 225 | |||||||||||||||||||||
REMICs
|
3 | 2,532 | 25 | - | - | - | 3 | 2,532 | 25 | |||||||||||||||||||||||||||
Corporate debt
|
- | - | - | 3 | 3,591 | 405 | 3 | 3,591 | 405 | |||||||||||||||||||||||||||
Total securities temporarily impaired
|
5 | $ | 6,679 | $ | 167 | 4 | $ | 4,649 | $ | 488 | 9 | $ | 11,328 | $ | 655 |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
Real estate-mortgage:
|
||||||||||||||||
One- to four-family residential
|
||||||||||||||||
Originated
|
$ | 105,178 | 35.8 | % | $ | 104,870 | 37.1 | % | ||||||||
Purchased
|
5,852 | 2.0 | 6,888 | 2.4 | ||||||||||||
Total one- to four-family residential
|
111,030 | 37.8 | 111,758 | 39.5 | ||||||||||||
Multi-family
|
||||||||||||||||
Originated
|
7,225 | 2.4 | 7,083 | 2.5 | ||||||||||||
Purchased
|
3,208 | 1.1 | 3,768 | 1.3 | ||||||||||||
Total multi-family
|
10,433 | 3.5 | 10,851 | 3.8 | ||||||||||||
Commercial
|
71,797 | 24.4 | 61,889 | 21.9 | ||||||||||||
Total real estate-mortgage
|
193,260 | 65.7 | 184,498 | 65.2 | ||||||||||||
Real estate-construction:
|
||||||||||||||||
Residential
|
4,331 | 1.5 | 3,337 | 1.2 | ||||||||||||
Commercial
|
13,025 | 4.4 | 15,979 | 5.7 | ||||||||||||
Total real estate-construction
|
17,356 | 5.9 | 19,316 | 6.9 | ||||||||||||
Consumer:
|
||||||||||||||||
Home equity
|
||||||||||||||||
Loan-to-value ratio of 80% or less
|
44,817 | 15.2 | 47,543 | 16.9 | ||||||||||||
Loan-to-value ratio of greater than 80%
|
8,835 | 3.0 | 9,247 | 3.3 | ||||||||||||
Total home equity
|
53,652 | 18.2 | 56,790 | 20.2 | ||||||||||||
Other
|
1,624 | 0.6 | 1,666 | 0.6 | ||||||||||||
Total consumer
|
55,276 | 18.8 | 58,456 | 20.8 | ||||||||||||
Commercial business
|
28,134 | 9.6 | 20,023 | 7.1 | ||||||||||||
Total loans
|
$ | 294,026 | 100.0 | % | $ | 282,293 | 100.0 | % | ||||||||
Net premiums on loans purchased
|
80 | 93 | ||||||||||||||
Net deferred loan costs
|
311 | 351 | ||||||||||||||
Loans in process
|
(7,520 | ) | (10,617 | ) | ||||||||||||
Allowance for loan losses
|
(3,546 | ) | (3,308 | ) | ||||||||||||
Loans, net
|
$ | 283,351 | $ | 268,812 |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||||||||||
30-59 | 60-89 |
90 Days
|
30-59 | 60-89 |
90 Days
|
|||||||||||||||||||
Days
|
Days
|
or Greater
|
Days
|
Days
|
or Greater
|
|||||||||||||||||||
Past
|
Past
|
Past
|
Past
|
Past
|
Past
|
|||||||||||||||||||
Due
|
Due
|
Due
|
Due
|
Due
|
Due
|
|||||||||||||||||||
Real estate - mortgage:
|
||||||||||||||||||||||||
One- to four-family residential
|
||||||||||||||||||||||||
Originated
|
$ | - | $ | 508 | $ | 1,171 | $ | 1,012 | $ | 427 | $ | 627 | ||||||||||||
Purchased
|
- | - | 307 | - | - | 307 | ||||||||||||||||||
Total one- to four-family residential
|
- | 508 | 1,478 | 1,012 | 427 | 934 | ||||||||||||||||||
Commercial
|
27 | - | 462 | 30 | - | 493 | ||||||||||||||||||
Total real estate - mortgage
|
27 | 508 | 1,940 | 1,042 | 427 | 1,427 | ||||||||||||||||||
Real estate - construction:
|
||||||||||||||||||||||||
Residential
|
- | - | - | 715 | - | - | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Home equity
|
||||||||||||||||||||||||
Loan-to-value ratio of 80% or less
|
113 | - | - | 1 | - | - | ||||||||||||||||||
Loan-to-value ratio of greater than 80%
|
204 | - | 47 | 144 | 158 | 30 | ||||||||||||||||||
Total home equity
|
317 | - | 47 | 145 | 158 | 30 | ||||||||||||||||||
Other
|
61 | - | - | - | 3 | - | ||||||||||||||||||
Total consumer
|
378 | - | 47 | 145 | 161 | 30 | ||||||||||||||||||
Total delinquencies
|
$ | 405 | $ | 508 | $ | 1,987 | $ | 1,902 | $ | 588 | $ | 1,457 |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||
Number of
|
Number of
|
|||||||||||||||
Contracts
|
Amount
|
Contracts
|
Amount
|
|||||||||||||
Nonaccrual loans:
|
||||||||||||||||
Real estate - mortgage:
|
||||||||||||||||
One- to four-family residential
|
||||||||||||||||
Originated
|
5 | $ | 2,124 | 4 | $ | 1,595 | ||||||||||
Purchased
|
4 | 307 | 4 | 307 | ||||||||||||
Total one- to four-family residential
|
9 | 2,431 | 8 | 1,902 | ||||||||||||
Commercial
|
2 | 462 | 2 | 493 | ||||||||||||
Total real estate - mortgage
|
11 | 2,893 | 10 | 2,395 | ||||||||||||
Consumer:
|
||||||||||||||||
Home equity
|
||||||||||||||||
Loan-to-value ratio of greater than 80%
|
2 | 47 | 1 | 30 | ||||||||||||
Total home equity
|
2 | 47 | 1 | 30 | ||||||||||||
Total nonaccrual loans
|
13 | 2,940 | 11 | 2,425 | ||||||||||||
Accruing loans past due 90 days or more
|
- | - | - | - | ||||||||||||
Total nonaccrual loans and accruing loans
|
||||||||||||||||
past due 90 days or more
|
13 | 2,940 | 11 | 2,425 | ||||||||||||
Real estate owned
|
1 | 16 | 1 | 126 | ||||||||||||
Total nonperforming assets
|
14 | $ | 2,956 | 12 | $ | 2,551 | ||||||||||
Troubled debt restructurings
|
||||||||||||||||
In nonaccrual status
|
1 | 952 | 1 | 968 | ||||||||||||
Performing under modified terms
|
8 | 2,224 | 8 | 2,358 | ||||||||||||
Troubled debt restructurings
|
9 | $ | 3,176 | 9 | $ | 3,326 | ||||||||||
Total nonperforming loans to total loans
|
1.00 | % | 0.86 | % | ||||||||||||
Total nonperforming assets to total assets
|
0.91 | 0.80 | ||||||||||||||
Total nonperforming assets and troubled debt restructurings
|
||||||||||||||||
performing under modified terms to total assets
|
1.59 | 1.54 |
Performing Under
Modified Terms
|
||||||||||||||||
Pre-
|
Post-
|
|||||||||||||||
Modification
|
Modification
|
|||||||||||||||
Number
|
Outstanding
|
Outstanding
|
||||||||||||||
of
|
Recorded
|
Recorded
|
Specific
|
|||||||||||||
Three and Nine Months Ended September 30, 2013
|
Contracts
|
Investment
|
Investment
|
Allowance
|
||||||||||||
Consumer:
|
||||||||||||||||
Home equity (loan-to-value ratio of 80% or less)
|
1 | 373 | 276 | - | ||||||||||||
Total troubled debt restructurings
|
1 | $ | 373 | $ | 276 | $ | - |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
||||||||||||||||
September 30, 2014
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
|||||||||||||||
Impaired loans with no related allowance recorded
|
||||||||||||||||||||
One- to four-family originated residential
|
$ | 1,233 | $ | 1,233 | $ | - | $ | 1,241 | $ | 38 | ||||||||||
Commercial real estate
|
2,571 | 2,584 | - | 2,650 | 109 | |||||||||||||||
Home equity (loan-to-value ratio of 80% or less)
|
394 | 394 | - | 399 | 14 | |||||||||||||||
Impaired loans with an allowance recorded
|
||||||||||||||||||||
One- to four-family originated residential
|
$ | 255 | $ | 255 | $ | 35 | $ | 255 | $ | 3 | ||||||||||
One- to four-family originated residential
|
$ | 1,488 | $ | 1,488 | $ | 35 | $ | 1,496 | $ | 41 | ||||||||||
Commercial real estate
|
2,571 | 2,584 | - | 2,650 | 109 | |||||||||||||||
Home equity (loan-to-value ratio of 80% or less)
|
394 | 394 | - | 399 | 14 | |||||||||||||||
Total impaired loans
|
$ | 4,453 | $ | 4,466 | $ | 35 | $ | 4,545 | $ | 164 |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
||||||||||||||||
December 31, 2013
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
|||||||||||||||
Impaired loans with no related allowance recorded
|
||||||||||||||||||||
One- to four-family originated residential
|
$ | 1,505 | $ | 1,505 | $ | - | $ | 1,515 | $ | 65 | ||||||||||
Commercial real estate
|
2,705 | 2,705 | - | 2,742 | 149 | |||||||||||||||
Home equity (loan-to-value ratio of 80% or less)
|
405 | 405 | - | 409 | 10 | |||||||||||||||
Total impaired loans
|
$ | 4,615 | $ | 4,615 | $ | - | $ | 4,666 | $ | 224 |
·
|
Loans purchased in the secondary market. Prior to 2006, pools of multi-family and one- to four- family residential mortgage loans located in areas outside of our primary geographic lending area in southwestern Pennsylvania were acquired in the secondary market. Although these loans were underwritten to our lending standards, they are considered higher risk given our unfamiliarity with the geographic areas where the properties are located and ability to timely identify problem loans through servicer correspondence.
|
·
|
Home equity loans with a loan-to-value ratio greater than 80%. These loans are considered higher risk given the pressure on property values and reduced credit alternatives available to leveraged borrowers.
|
Real estate - mortgage
|
Real estate-construction
|
Consumer
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity (loan-
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
to-value ratio of
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
residential
|
Multi-family
|
80% |
greater
|
Other
|
Commercial
|
|||||||||||||||||||||||||||||||||||||||||||||||
(originated)
|
(purchased)
|
(originated)
|
(purchased)
|
Commercial
|
Residential
|
Commercial
|
or less)
|
than 80%)
|
Consumer
|
business
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||||||||||||||
Loan Balance
|
$ | 105,178 | $ | 5,852 | $ | 7,225 | $ | 3,208 | $ | 71,797 | $ | 4,331 | $ | 13,025 | $ | 44,817 | $ | 8,835 | $ | 1,624 | $ | 28,134 | $ | 294,026 | ||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2014
|
$ | 506 | $ | 257 | $ | 113 | $ | 29 | $ | 1,146 | $ | 6 | $ | 150 | $ | 465 | $ | 263 | $ | 10 | $ | 541 | $ | 126 | $ | 3,612 | ||||||||||||||||||||||||||
Charge-offs
|
(10 | ) | - | - | - | - | - | - | (53 | ) | - | (7 | ) | - | - | (70 | ) | |||||||||||||||||||||||||||||||||||
Recoveries
|
3 | - | - | - | - | - | - | - | 1 | - | - | - | 4 | |||||||||||||||||||||||||||||||||||||||
Provision
|
24 | (8 | ) | (1 | ) | - | 24 | 3 | (44 | ) | 36 | (7 | ) | 8 | - | (35 | ) | - | ||||||||||||||||||||||||||||||||||
September 30, 2014
|
$ | 523 | $ | 249 | $ | 112 | $ | 29 | $ | 1,170 | $ | 9 | $ | 106 | $ | 448 | $ | 257 | $ | 11 | $ | 541 | $ | 91 | $ | 3,546 | ||||||||||||||||||||||||||
December 31, 2013
|
$ | 432 | $ | 286 | $ | 114 | $ | 34 | $ | 1,025 | $ | 6 | $ | 103 | $ | 475 | $ | 268 | $ | 11 | $ | 432 | $ | 122 | $ | 3,308 | ||||||||||||||||||||||||||
Charge-offs
|
(10 | ) | - | - | - | - | - | - | (53 | ) | - | (7 | ) | - | - | (70 | ) | |||||||||||||||||||||||||||||||||||
Recoveries
|
9 | - | - | - | - | - | - | - | 4 | - | - | - | 13 | |||||||||||||||||||||||||||||||||||||||
Provision
|
92 | (37 | ) | (2 | ) | (5 | ) | 145 | 3 | 3 | 26 | (15 | ) | 7 | 109 | (31 | ) | 295 | ||||||||||||||||||||||||||||||||||
September 30, 2014
|
$ | 523 | $ | 249 | $ | 112 | $ | 29 | $ | 1,170 | $ | 9 | $ | 106 | $ | 448 | $ | 257 | $ | 11 | $ | 541 | $ | 91 | $ | 3,546 | ||||||||||||||||||||||||||
Individually evaluated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
for impairment
|
$ | 35 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 35 | ||||||||||||||||||||||||||
Collectively evaluated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
on historical loss
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
experience
|
113 | 121 | - | - | 64 | - | - | 28 | 84 | 6 | 26 | - | 442 | |||||||||||||||||||||||||||||||||||||||
Collectively evaluated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
on qualitative
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
factors
|
375 | 128 | 112 | 29 | 1,106 | 9 | 106 | 420 | 173 | 5 | 515 | - | 2,978 | |||||||||||||||||||||||||||||||||||||||
Unallocated
|
- | - | - | - | - | - | - | - | - | - | - | 91 | 91 | |||||||||||||||||||||||||||||||||||||||
Total allowance
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
for loan losses
|
$ | 523 | $ | 249 | $ | 112 | $ | 29 | $ | 1,170 | $ | 9 | $ | 106 | $ | 448 | $ | 257 | $ | 11 | $ | 541 | $ | 91 | $ | 3,546 | ||||||||||||||||||||||||||
Percent of Allowance
|
14.7 | % | 7.0 | % | 3.2 | % | 0.8 | % | 33.0 | % | 0.3 | % | 3.0 | % | 12.6 | % | 7.2 | % | 0.3 | % | 15.3 | % | 2.6 | % | 100.0 | % | ||||||||||||||||||||||||||
Percent of Loans (1)
|
35.8 | % | 2.0 | % | 2.4 | % | 1.1 | % | 24.4 | % | 1.5 | % | 4.4 | % | 15.2 | % | 3.0 | % | 0.6 | % | 9.6 | % | 100.0 | % |
(1)
|
Represents percentage of loans in each category to total loans.
|
Real estate - mortgage
|
Real estate-construction
|
Consumer
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity (loan-
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
to-value ratio of
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
residential
|
Multi-family
|
80% |
greater
|
Other
|
Commercial
|
|||||||||||||||||||||||||||||||||||||||||||||||
(originated)
|
(purchased)
|
(originated)
|
(purchased)
|
Commercial
|
Residential
|
Commercial
|
or less)
|
than 80%)
|
Consumer
|
business
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||||||||||||||
Loan Balance
|
$ | 103,170 | $ | 7,575 | $ | 7,016 | $ | 3,799 | $ | 53,368 | $ | 3,581 | $ | 16,341 | $ | 47,150 | $ | 9,200 | $ | 1,739 | $ | 20,756 | $ | 273,695 | ||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013
|
$ | 457 | $ | 300 | $ | 32 | $ | 93 | $ | 853 | $ | 3 | $ | 23 | $ | 475 | $ | 284 | $ | 18 | $ | 285 | $ | 167 | $ | 2,990 | ||||||||||||||||||||||||||
Recoveries
|
3 | - | - | - | - | - | - | - | - | - | - | - | 3 | |||||||||||||||||||||||||||||||||||||||
Provision
|
2 | (6 | ) | (11 | ) | (1 | ) | 76 | 2 | 2 | 12 | 16 | 1 | 156 | (49 | ) | 200 | |||||||||||||||||||||||||||||||||||
September 30, 2013
|
$ | 462 | $ | 294 | $ | 21 | $ | 92 | $ | 929 | $ | 5 | $ | 25 | $ | 487 | $ | 300 | $ | 19 | $ | 441 | $ | 118 | $ | 3,193 | ||||||||||||||||||||||||||
December 31, 2012
|
$ | 466 | $ | 372 | $ | 33 | $ | 102 | $ | 802 | $ | 3 | $ | 8 | $ | 434 | $ | 246 | $ | 19 | $ | 245 | $ | 156 | $ | 2,886 | ||||||||||||||||||||||||||
Charge-offs
|
(12 | ) | (33 | ) | - | - | - | - | - | - | (35 | ) | - | - | - | (80 | ) | |||||||||||||||||||||||||||||||||||
Recoveries
|
9 | - | - | - | 9 | - | - | - | 1 | 3 | - | - | 22 | |||||||||||||||||||||||||||||||||||||||
Provision
|
(1 | ) | (45 | ) | (12 | ) | (10 | ) | 118 | 2 | 17 | 53 | 88 | (3 | ) | 196 | (38 | ) | 365 | |||||||||||||||||||||||||||||||||
September 30, 2013
|
$ | 462 | $ | 294 | $ | 21 | $ | 92 | $ | 929 | $ | 5 | $ | 25 | $ | 487 | $ | 300 | $ | 19 | $ | 441 | $ | 118 | $ | 3,193 | ||||||||||||||||||||||||||
Collectively evaluated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
on historical loss
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
experience
|
$ | 128 | $ | 127 | $ | - | $ | 58 | $ | 106 | $ | - | $ | - | $ | 67 | $ | 115 | $ | 13 | $ | 12 | $ | - | $ | 626 | ||||||||||||||||||||||||||
Collectively evaluated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
on qualitative
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
factors
|
334 | 167 | 21 | 34 | 823 | 5 | 25 | 420 | 185 | 6 | 429 | - | 2,449 | |||||||||||||||||||||||||||||||||||||||
Unallocated
|
- | - | - | - | - | - | - | - | - | - | - | 118 | 118 | |||||||||||||||||||||||||||||||||||||||
Total allowance
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
for loan losses
|
$ | 462 | $ | 294 | $ | 21 | $ | 92 | $ | 929 | $ | 5 | $ | 25 | $ | 487 | $ | 300 | $ | 19 | $ | 441 | $ | 118 | $ | 3,193 | ||||||||||||||||||||||||||
Percent of Allowance
|
14.5 | % | 9.2 | % | 0.6 | % | 2.9 | % | 29.1 | % | 0.2 | % | 0.7 | % | 15.3 | % | 9.4 | % | 0.6 | % | 13.8 | % | 3.7 | % | 100.0 | % | ||||||||||||||||||||||||||
Percent of Loans (1)
|
37.7 | % | 2.7 | % | 2.6 | % | 1.4 | % | 19.5 | % | 1.3 | % | 6.0 | % | 17.2 | % | 3.4 | % | 0.6 | % | 7.6 | % | 100.0 | % |
(1)
|
Represents percentage of loans in each category to total loans.
|
Real estate - mortgage
|
Real estate-construction
|
Consumer
|
||||||||||||||||||||||||||||||||||||||||||||||
Home equity (loan-
|
||||||||||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
to-value ratio of
|
|||||||||||||||||||||||||||||||||||||||||||||||
residential
|
Multi-family
|
80% |
greater
|
Other
|
Commercial
|
Total
|
||||||||||||||||||||||||||||||||||||||||||
September 30, 2014
|
(originated)
|
(purchased)
|
(originated)
|
(purchased)
|
Commercial
|
Residential
|
Commercial
|
or less)
|
than 80%)
|
Consumer
|
business
|
loans
|
||||||||||||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||||||||||||
Pass
|
$ | 103,054 | $ | 5,545 | $ | 5,424 | $ | 3,208 | $ | 69,338 | $ | 4,331 | $ | 13,025 | $ | 44,227 | $ | 8,788 | $ | 1,624 | $ | 26,564 | $ | 285,128 | ||||||||||||||||||||||||
Special Mention
|
- | - | 1,801 | - | 335 | - | - | - | - | - | 1,570 | 3,706 | ||||||||||||||||||||||||||||||||||||
Substandard
|
2,124 | 307 | - | - | 2,124 | - | - | 590 | 47 | - | - | 5,192 | ||||||||||||||||||||||||||||||||||||
Total | $ | 105,178 | $ | 5,852 | $ | 7,225 | $ | 3,208 | $ | 71,797 | $ | 4,331 | $ | 13,025 | $ | 44,817 | $ | 8,835 | $ | 1,624 | $ | 28,134 | $ | 294,026 |
Real estate - mortgage
|
Real estate-construction
|
Consumer
|
||||||||||||||||||||||||||||||||||||||||||||||
Home equity (loan-
|
||||||||||||||||||||||||||||||||||||||||||||||||
One- to four-family
|
to-value ratio of
|
|||||||||||||||||||||||||||||||||||||||||||||||
residential
|
Multi-family
|
80% |
greater
|
Other
|
Commercial
|
Total
|
||||||||||||||||||||||||||||||||||||||||||
December 31, 2013
|
(originated)
|
(purchased)
|
(originated)
|
(purchased)
|
Commercial
|
Residential
|
Commercial
|
or less)
|
than 80%)
|
Consumer
|
business
|
loans
|
||||||||||||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||||||||||||
Pass
|
$ | 103,275 | $ | 6,581 | $ | 5,231 | $ | 3,768 | $ | 58,311 | $ | 3,337 | $ | 15,979 | $ | 46,934 | $ | 9,217 | $ | 1,666 | $ | 17,964 | $ | 272,263 | ||||||||||||||||||||||||
Special Mention
|
- | - | 1,852 | - | 676 | - | - | - | - | - | 2,059 | 4,587 | ||||||||||||||||||||||||||||||||||||
Substandard
|
1,595 | 307 | - | - | 2,902 | - | - | 609 | 30 | - | - | 5,443 | ||||||||||||||||||||||||||||||||||||
Total | $ | 104,870 | $ | 6,888 | $ | 7,083 | $ | 3,768 | $ | 61,889 | $ | 3,337 | $ | 15,979 | $ | 47,543 | $ | 9,247 | $ | 1,666 | $ | 20,023 | $ | 282,293 |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
Noninterest-bearing demand deposits
|
$ | 27,904 | 13.3 | % | $ | 27,247 | 12.4 | % | ||||||||
Interest-bearing demand deposits
|
27,861 | 13.3 | 30,733 | 14.0 | ||||||||||||
Savings accounts
|
24,754 | 11.8 | 24,415 | 11.1 | ||||||||||||
Money market accounts
|
55,887 | 26.7 | 48,746 | 22.2 | ||||||||||||
Certificates of deposit
|
72,786 | 34.9 | 88,091 | 40.3 | ||||||||||||
Total deposits
|
$ | 209,192 | 100.0 | % | $ | 219,232 | 100.0 | % |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
(Dollars in thousands)
|
Balance
|
Rate
|
Balance
|
Rate
|
||||||||||||
Due in one year or less
|
$ | 63,000 | 1.19 | % | $ | 33,860 | 1.81 | % | ||||||||
Due in one to two years
|
- | - | 12,000 | 3.82 | ||||||||||||
Advances
|
$ | 63,000 | $ | 45,860 | ||||||||||||
Less: deferred premium on modification
|
(139 | ) | (269 | ) | ||||||||||||
Total advances
|
$ | 62,861 | 1.19 | % | $ | 45,591 | 2.34 | % |
Nine Months
|
Year
|
|||||||
Ended
|
Ended
|
|||||||
September 30,
|
December 31,
|
|||||||
(Dollars in thousands)
|
2014
|
2013
|
||||||
Maximum amount outstanding at any month end during the period
|
$ | 62,861 | $ | 46,338 | ||||
Average amount outstanding during the period
|
45,928 | 37,784 | ||||||
Weighted average rate during the period
|
1.99 | % | 3.37 | % |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(Dollars in thousands, except per share amounts)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Net (loss) income of FedFirst Financial Corporation
|
$ | 678 | $ | 463 | $ | 936 | $ | 1,833 | ||||||||
Weighted-average shares outstanding:
|
||||||||||||||||
Basic
|
2,238,632 | 2,373,378 | 2,233,033 | 2,428,692 | ||||||||||||
Effect of dilutive stock options and
|
||||||||||||||||
restrictive stock awards
|
68,265 | 34,020 | 61,471 | 31,407 | ||||||||||||
Diluted
|
2,306,897 | 2,407,398 | 2,294,504 | 2,460,099 | ||||||||||||
(Loss) earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.30 | $ | 0.20 | $ | 0.42 | $ | 0.75 | ||||||||
Diluted
|
0.29 | 0.19 | 0.41 | 0.75 |
|
Level 1 –
|
Quoted prices for identical instruments in active markets.
|
|
Level 2 –
|
Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are active, and model derived valuations in which significant inputs or significant drivers are observable in active markets.
|
|
Level 3 –
|
Valuations derived from valuation techniques in which one or more significant inputs or significant drivers are unobservable.
|
(Dollars in thousands)
|
December 31, 2013
|
|||
Significant other observable inputs (Level 2)
|
||||
Securities available-for-sale
|
||||
Municipal bonds
|
$ | 7,970 | ||
Mortgage-backed - GSEs
|
8,192 | |||
REMICs
|
7,019 | |||
Total significant other observerable inputs (Level 2)
|
23,181 | |||
Significant unobservable inputs (Level 3)
|
||||
Securities available-for-sale
|
||||
Corporate debt
|
3,591 | |||
Total significant unobservable inputs (Level 3)
|
3,591 | |||
Total securities available-for-sale
|
$ | 26,772 | ||
Total assets measured at fair value on a recurring basis
|
$ | 26,772 |
Significant
|
||||
Unobservable Inputs
|
||||
(Dollars in thousands)
|
(Level 3)
|
|||
December 31, 2012
|
$ | 1,882 | ||
Total unrealized gains included in other comprehensive income
|
1,708 | |||
Discount accretion
|
1 | |||
December 31, 2013
|
$ | 3,591 | ||
Sales
|
(3,591 | ) | ||
September 30, 2014
|
$ | - |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||
(Dollars in thousands)
|
Carrying
Value
|
Fair Value
|
Carrying
Value
|
Fair Value
|
||||||||||||
Level 3
|
||||||||||||||||
Impaired loans
|
$ | 255 | $ | 220 | $ | 586 | $ | 586 | ||||||||
Real estate owned
|
16 | 16 | 465 | 465 | ||||||||||||
Total assets measured at fair value
|
||||||||||||||||
on a nonrecurring basis
|
$ | 271 | $ | 236 | $ | 1,051 | $ | 1,051 |
(Dollars in thousands)
|
Fair Value
|
Valuation Technique
|
Significant
Unobservable Inputs
|
Significant
Unobservable
Input Value
|
||||
Nonrecurring basis
|
||||||||
Impaired loans
|
220
|
Appraisal value
|
Selling costs
|
10-20%
|
||||
Real estate owned
|
16
|
Appraisal value
|
Selling costs
|
10-20%
|
Carrying
|
Estimated
|
Fair Value Measurements
|
||||||||||||||||||
September 30, 2014
|
Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 23,788 | $ | 23,788 | $ | 23,788 | $ | - | $ | - | ||||||||||
Loans, net
|
283,351 | 289,118 | - | - | 289,118 | |||||||||||||||
FHLB stock
|
3,472 | 3,472 | - | 3,472 | - | |||||||||||||||
Accrued interest receivable
|
898 | 898 | - | 898 | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
209,192 | 209,203 | - | 209,203 | - | |||||||||||||||
Borrowings
|
62,861 | 63,187 | - | 63,187 | - | |||||||||||||||
Accrued interest payable
|
166 | 166 | - | 166 | - |
Carrying
|
Estimated
|
Fair Value Measurements
|
||||||||||||||||||
December 31, 2013
|
Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 5,552 | $ | 5,552 | $ | 5,552 | $ | - | $ | - | ||||||||||
Securities available-for-sale
|
26,772 | 26,772 | - | 23,181 | 3,591 | |||||||||||||||
Loans, net
|
268,812 | 271,038 | - | - | 271,038 | |||||||||||||||
FHLB stock
|
2,589 | 2,589 | - | 2,589 | - | |||||||||||||||
Accrued interest receivable
|
993 | 993 | - | 993 | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
219,232 | 219,538 | - | 219,538 | - | |||||||||||||||
Borrowings
|
45,591 | 46,446 | - | 46,446 | - | |||||||||||||||
Accrued interest payable
|
251 | 251 | - | 251 | - |
Before Income
|
Income
|
Net of Income
|
||||||||||
Tax Expense
|
Tax Expense
|
Tax Expense
|
||||||||||
Three Months Ended September 30, 2014
|
(Benefit)
|
(Benefit)
|
(Benefit)
|
|||||||||
Other comprehensive loss:
|
||||||||||||
Reclassification adjustment on sales of securities available-for-sale
|
(449 | ) | (176 | ) | (273 | ) | ||||||
Three Months Ended September 30, 2013
|
||||||||||||
Other comprehensive income:
|
||||||||||||
Unrealized gain on securities available-for-sale
|
$ | 799 | $ | 313 | $ | 486 | ||||||
Nine Months Ended September 30, 2014
|
||||||||||||
Other comprehensive loss:
|
||||||||||||
Reclassification adjustment on sales of securities available-for-sale
|
(102 | ) | (40 | ) | (62 | ) | ||||||
Nine Months Ended September 30, 2013
|
||||||||||||
Other comprehensive income:
|
||||||||||||
Unrealized gain on securities available-for-sale
|
$ | 800 | $ | 314 | $ | 486 |
First Federal
Savings Bank
|
Exchange
Underwriters, Inc.
|
FedFirst Financial
Corporation
|
Net Eliminations
|
Consolidated
|
||||||||||||||||
September 30, 2014
|
||||||||||||||||||||
Assets
|
$ | 325,506 | $ | 1,252 | $ | 51,307 | $ | (52,738 | ) | $ | 325,327 | |||||||||
Liabilities
|
278,408 | 433 | 29 | (4,918 | ) | 273,952 | ||||||||||||||
Stockholders' equity
|
47,098 | 819 | 51,278 | (47,820 | ) | 51,375 | ||||||||||||||
December 31, 2013
|
||||||||||||||||||||
Assets
|
$ | 319,381 | $ | 1,438 | $ | 51,773 | $ | (53,565 | ) | $ | 319,027 | |||||||||
Liabilities
|
273,457 | 578 | 27 | (6,886 | ) | 267,176 | ||||||||||||||
Stockholders' equity
|
45,924 | 860 | 51,746 | (46,679 | ) | 51,851 | ||||||||||||||
Three Months Ended September 30, 2014
|
||||||||||||||||||||
Total interest income
|
$ | 3,363 | $ | - | $ | 18 | $ | (18 | ) | $ | 3,363 | |||||||||
Total interest expense
|
483 | - | - | (18 | ) | 465 | ||||||||||||||
Net interest income
|
2,880 | - | 18 | - | 2,898 | |||||||||||||||
Provision for loan losses
|
- | - | - | - | - | |||||||||||||||
Net interest income after provision for loan losses
|
2,880 | - | 18 | - | 2,898 | |||||||||||||||
Noninterest income
|
356 | 805 | - | - | 1,161 | |||||||||||||||
Noninterest expense
|
2,262 | 615 | 74 | - | 2,951 | |||||||||||||||
Undistributed net income of subsidiary
|
110 | - | 715 | (825 | ) | - | ||||||||||||||
Income before income tax expense (benefit) and noncontrolling
|
||||||||||||||||||||
interest in net income of consolidated subsidiary
|
1,084 | 190 | 659 | (825 | ) | 1,108 | ||||||||||||||
Income tax expense (benefit)
|
347 | 80 | (19 | ) | - | 408 | ||||||||||||||
Net income before noncontrolling interest in net
|
||||||||||||||||||||
income of consolidated subsidiary
|
737 | 110 | 678 | (825 | ) | 700 | ||||||||||||||
Less: Noncontrolling interest in net income of
|
||||||||||||||||||||
consolidated subsidiary
|
22 | - | - | - | 22 | |||||||||||||||
Net income of FedFirst Financial Corporation
|
$ | 715 | $ | 110 | $ | 678 | $ | (825 | ) | $ | 678 | |||||||||
Nine Months Ended September 30, 2014
|
||||||||||||||||||||
Total interest income
|
$ | 9,852 | $ | - | $ | 55 | $ | (55 | ) | $ | 9,852 | |||||||||
Total interest expense
|
1,640 | - | - | (55 | ) | 1,585 | ||||||||||||||
Net interest income
|
8,212 | - | 55 | - | 8,267 | |||||||||||||||
Provision for loan losses
|
295 | - | - | - | 295 | |||||||||||||||
Net interest income after provision for loan losses
|
7,917 | - | 55 | - | 7,972 | |||||||||||||||
Noninterest income
|
793 | 2,513 | - | - | 3,306 | |||||||||||||||
Noninterest expense
|
7,519 | 1,918 | 290 | - | 9,727 | |||||||||||||||
Undistributed net income of subsidiary
|
344 | - | 1,091 | (1,435 | ) | - | ||||||||||||||
Income before income tax expense (benefit) and noncontrolling
|
||||||||||||||||||||
interest in net income of consolidated subsidiary
|
1,535 | 595 | 856 | (1,435 | ) | 1,551 | ||||||||||||||
Income tax expense (benefit)
|
375 | 251 | (80 | ) | - | 546 | ||||||||||||||
Net income before noncontrolling interest in net
|
||||||||||||||||||||
income of consolidated subsidiary
|
1,160 | 344 | 936 | (1,435 | ) | 1,005 | ||||||||||||||
Less: Noncontrolling interest in net income of
|
||||||||||||||||||||
consolidated subsidiary
|
69 | - | - | - | 69 | |||||||||||||||
Net income of FedFirst Financial Corporation
|
$ | 1,091 | $ | 344 | $ | 936 | $ | (1,435 | ) | $ | 936 |
(Dollars in thousands)
|
First Federal
Savings Bank
|
Exchange
Underwriters, Inc.
|
FedFirst Financial
Corporation
|
Net Eliminations
|
Consolidated
|
|||||||||||||||
Three Months Ended September 30, 2013
|
||||||||||||||||||||
Total interest income
|
$ | 3,155 | $ | - | $ | 21 | $ | (21 | ) | $ | 3,155 | |||||||||
Total interest expense
|
679 | - | - | (21 | ) | 658 | ||||||||||||||
Net interest income
|
2,476 | - | 21 | - | 2,497 | |||||||||||||||
Provision for loan losses
|
200 | - | - | - | 200 | |||||||||||||||
Net interest income after provision for loan losses
|
2,276 | - | 21 | - | 2,297 | |||||||||||||||
Noninterest income
|
253 | 755 | - | - | 1,008 | |||||||||||||||
Noninterest expense
|
1,893 | 598 | 60 | - | 2,551 | |||||||||||||||
Undistributed net income of subsidiary
|
88 | - | 489 | (577 | ) | - | ||||||||||||||
Income before income tax expense (benefit) and
|
||||||||||||||||||||
noncontrolling interest in net income of consolidated subsidiary
|
724 | 157 | 450 | (577 | ) | 754 | ||||||||||||||
Income tax expense (benefit)
|
217 | 69 | (13 | ) | - | 273 | ||||||||||||||
Net income before noncontrolling interest in net
|
||||||||||||||||||||
income of consolidated subsidiary
|
507 | 88 | 463 | (577 | ) | 481 | ||||||||||||||
Less: Noncontrolling interest in net income of
|
||||||||||||||||||||
consolidated subsidiary
|
18 | - | - | - | 18 | |||||||||||||||
Net income of FedFirst Financial Corporation
|
$ | 489 | $ | 88 | $ | 463 | $ | (577 | ) | $ | 463 | |||||||||
Nine Months Ended September 30, 2013
|
||||||||||||||||||||
Total interest income
|
$ | 9,681 | $ | - | $ | 63 | $ | (63 | ) | $ | 9,681 | |||||||||
Total interest expense
|
2,116 | - | - | (63 | ) | 2,053 | ||||||||||||||
Net interest income
|
7,565 | - | 63 | - | 7,628 | |||||||||||||||
Provision for loan losses
|
365 | - | - | - | 365 | |||||||||||||||
Net interest income after provision for loan losses
|
7,200 | - | 63 | - | 7,263 | |||||||||||||||
Noninterest income
|
856 | 2,505 | - | - | 3,361 | |||||||||||||||
Noninterest expense
|
5,641 | 1,900 | 214 | - | 7,755 | |||||||||||||||
Undistributed net income of subsidiary
|
349 | - | 1,933 | (2,282 | ) | - | ||||||||||||||
Income before income tax expense (benefit) and
|
||||||||||||||||||||
noncontrolling interest in net income of consolidated subsidiary
|
2,764 | 605 | 1,782 | (2,282 | ) | 2,869 | ||||||||||||||
Income tax expense (benefit)
|
761 | 256 | (51 | ) | - | 966 | ||||||||||||||
Net income before noncontrolling interest in net
|
||||||||||||||||||||
income of consolidated subsidiary
|
2,003 | 349 | 1,833 | (2,282 | ) | 1,903 | ||||||||||||||
Less: Noncontrolling interest in net income of
|
||||||||||||||||||||
consolidated subsidiary
|
70 | - | - | - | 70 | |||||||||||||||
Net income of FedFirst Financial Corporation
|
$ | 1,933 | $ | 349 | $ | 1,833 | $ | (2,282 | ) | $ | 1,833 |
Stock Options
|
||||||||||||
Weighted
|
Weighted
|
|||||||||||
Number
|
Average
|
Average
|
||||||||||
of
|
Exercise
|
Remaining
|
||||||||||
Stock-Based Compensation
|
Shares
|
Price
|
Term
|
|||||||||
Outstanding at December 31, 2013
|
294,081 | $ | 16.44 | 7.08 | ||||||||
Exercised or converted
|
(9,918 | ) | 18.60 | |||||||||
Expired
|
(5,918 | ) | 21.35 | |||||||||
Outstanding at September 30, 2014
|
278,245 | $ | 16.26 | 6.51 | ||||||||
Exercisable at September 30, 2014
|
146,709 | $ | 16.60 | 5.16 |
Stock Options
|
Restricted Stock Awards
|
|||||||||||||||
Number of
|
Fair-Value
|
Number of
|
Fair-Value
|
|||||||||||||
Shares
|
Price
|
Shares
|
Price
|
|||||||||||||
Nonvested at December 31, 2013
|
175,390 | $ | 3.37 | 46,715 | $ | 16.80 | ||||||||||
Granted
|
- | - | 5,150 | 21.60 | ||||||||||||
Vested
|
(43,854 | ) | 3.33 | (7,671 | ) | 15.09 | ||||||||||
Nonvested at September 30, 2014
|
131,536 | $ | 3.38 | 44,194 | $ | 17.66 |
As of September 30, 2014*
|
||||||||||||||||
CB
Historical
|
FedFirst
Historical
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Cash and cash equivalents
|
$ | 32,231 | $ | 23,788 | $ | (24,826 | )(1) | $ | 31,193 | |||||||
Investment securities
|
105,197 |
–
|
–
|
105,197 | ||||||||||||
Loans receivable
|
400,901 | 286,897 | (4,512 | )(2) | 683,286 | |||||||||||
Allowance for loan losses
|
(5,337 | ) | (3,546 | ) | 3,546 | (2) | (5,337 | ) | ||||||||
Loans, net
|
395,564 | 283,351 | (966 | ) | 677,949 | |||||||||||
Other real estate owned
|
1,698 | 16 |
–
|
1,714 | ||||||||||||
Accrued interest receivable
|
1,727 | 898 |
–
|
2,625 | ||||||||||||
Deferred tax asset, net
|
1,671 | 2,115 | (1,443 | )(3) | 2,343 | |||||||||||
Federal Home Loan Bank stock
|
2,013 | 3,472 |
–
|
5,485 | ||||||||||||
Banking premises and equipment, net
|
4,691 | 1,452 | 557 | (4) | 6,700 | |||||||||||
Bank-owned life insurance
|
8,876 | 8,739 |
–
|
17,615 | ||||||||||||
Core deposit intangible
|
–
|
–
|
4,977 | (5) | 4,977 | |||||||||||
Goodwill
|
2,158 | 1,080 | 4,938 | (6) | 8,176 | |||||||||||
Other assets
|
542 | 416 |
–
|
958 | ||||||||||||
Total assets
|
$ | 556,368 | $ | 325,327 | $ | (16,763 | ) | $ | 864,932 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||
Deposits
|
$ | 490,758 | $ | 209,192 | $ | 150 | (7) | $ | 700,100 | |||||||
Federal Home Loan Bank advances
|
3,000 | 12,000 | 298 | (8) | 15,298 | |||||||||||
Repurchase agreements
|
16,155 | 50,861 |
–
|
67,016 | ||||||||||||
Accrued expenses and other liabilities
|
1,805 | 1,899 |
–
|
3,704 | ||||||||||||
Total liabilities
|
511,718 | 273,952 | 448 | 786,118 | ||||||||||||
Shareholders’ equity:
|
||||||||||||||||
Common stock
|
1,101 | 23 | 695 | (9) | 1,819 | |||||||||||
Paid-in capital
|
6,169 | 30,764 | 2,682 | (9) | 39,615 | |||||||||||
Retained earnings
|
41,886 | 21,398 | (21,398 | )(9) | 41,886 | |||||||||||
Treasury stock, at cost
|
(4,999 | ) |
–
|
– | (4,999 | ) | ||||||||||
Accumulated other comprehensive income, net of taxes
|
493 |
–
|
–
|
493 | ||||||||||||
Unearned Employee Stock Ownership Plan (ESOP)
|
–
|
(907 | ) | (907 | )(9) |
–
|
||||||||||
Noncontrolling interest in subsidiary
|
–
|
97 | (97 | )(9) |
–
|
|||||||||||
Total shareholders’ equity
|
44,650 | 51,375 | (17,211 | ) | 78,814 | |||||||||||
Total liabilities and shareholders’ equity
|
$ | 556,368 | $ | 325,327 | $ | (16,763 | ) | $ | 864,932 |
*
|
Assumes that the merger was completed as of September 30, 2014 utilizing the acquisition method of accounting. Actual fair value adjustments, where appropriate, were determined as of the merger completion date and were amortized and accreted into income.
|
(1)
|
The adjustment includes cash consideration of $18.4 million paid to FedFirst stockholders and option holders of in-the-money FedFirst stock options. The adjustment also results from the assumption that cash and cash equivalents will be used to pay for after tax one-time merger and integration expenses of FedFirst. A portion of these expenses have been charged against FedFirst’s income through September 30, 2014 and result in a charge to CB’s goodwill.
|
(2)
|
The unaudited combined condensed consolidated pro forma statement of financial condition includes a fair value adjustment to total loans to reflect the credit condition and interest rate mark of $4.5 million, which represents an adjustment of 1.6% on FedFirst’s outstanding loan portfolio. In order to determine the adjustment, CB employed an outside expert to confirm the results obtained from CB’s due diligence process. The fair value adjustment will be amortized through loan interest income over the estimated lives of the affected loans. Another factor to this adjustment was the elimination of FedFirst’s allowance for loan losses. Purchased loans acquired in a business combination are recorded at fair value and the recorded allowance of the acquired company is not carried over.
|
(3)
|
Represents adjustments in the net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles and other deferred tax items. The actual deferred tax adjustment will depend on facts and circumstances existing at the completion of the merger. The fair value adjustment of the net deferred tax asset assumes an effective tax rate of 34%. See footnote 6 for additional details.
|
(4)
|
Banking premises and equipment have been adjusted to reflect appraised values of facilities to be acquired less net book value.
|
(5)
|
CB employed an outside expert to assist in the determination of the core deposit intangible of $5.0 million. The core deposit intangible will be amortized into noninterest expense over a 9.3 year life using the straight line method.
|
(6)
|
Calculated to reflect the acquisition accounting adjustments related to the merger. The consideration paid to acquire FedFirst consists of cash of $18.4 million (2,286,008 shares at a 35% exchange ratio of $23.00 per share) and the issuance of 1,721,967 shares of CB’s common stock based upon the fixed exchange rate of 1.1590 on 65% of 2,286,008 shares of FedFirst common stock outstanding, net of the retirement of unallocated shares used to terminate First Federal Savings Bank’s employee stock ownership plan. The value of CB’s common stock to be issued was based upon the cash payment price of $23.0 per share adjusted for the 1.1590 exchange ration or $19.84 as of October 31, 2014. Outstanding options and warrants were retired resulting in the consideration equal to the difference between the cash price of $23.00 per share and the weighted average strike price. Acquisition accounting adjustments assume that FedFirst’s stockholders’ equity is eliminated and the purchase price, goodwill and intangible assets are reflected on the CB’s financial statements pursuant to the application of acquisition accounting.
|
Note
|
||||||
(In thousands)
|
||||||
Assumptions/Inputs:
|
||||||
Value of CB’s common stock to be issued
|
$ | 34,164 | ||||
Cash paid to FedFirst’s stockholders and option holders
|
18,406 | |||||
Total deal value at date merger agreement signed
|
52,570 | |||||
FedFirst’s stockholders’ equity
|
51,375 | |||||
Less: minority interest purchase of Exchange Underwriters
|
(1,196 | ) | ||||
Less: incremental October FedFirst merger costs, net of tax
|
(2,777 | ) | ||||
Less: associated stock option costs
|
(1,757 | ) | ||||
Less: residual October FedFirst net operating loss
|
(1,639 | ) | ||||
Less: intangibles of FedFirst
|
(1,080 | ) | ||||
Plus: termination of ESOP
|
907 | |||||
FedFirst’s stockholders’ equity, net of transaction costs
|
43,833 | |||||
Fair value adjustments:
|
||||||
Loans
|
(2) | (966 | ) | |||
Fixed assets
|
(4) | 557 | ||||
Core deposit intangible
|
(5) | 4,977 | ||||
Time deposits
|
(7) | (150 | ) | |||
FHLB advances
|
(8) | (298 | ) | |||
Fair value adjustments
|
4,120 | |||||
Tax effect of fair value adjustments **
|
(3) | (1,401 | ) | |||
Total adjustment of net assets acquired
|
2,719 | |||||
Adjusted net assets acquired
|
46,552 | |||||
Estimated goodwill
|
(6) | $ | 6,018 | |||
________________ | ||||||
(**) Assumed effective tax rate of 34% |
(7)
|
The deposits include a fair value adjustment to time deposits to reflect differences in interest rates in the amount of $150,000. The analysis was prepared by an outside expert based on an analysis of current market interest rates and maturity dates. This fair value adjustment will be accreted into interest expense over the estimated lives of the affected time deposits. Estimated accretion was computed using the straight line methodology utilizing a 2.2 year period for full recognition of this adjustment based upon historical deposit lives.
|
(8)
|
The FHLB advances include a fair value adjustment to FedFirst’s FHLB advances to reflect differences in interest rates of $298,000. The fair value adjustment will be accreted into interest expense over the remaining life of the affected FHLB advance using the straight line methodology using a fair value adjustment period of nine months based upon the outstanding balance and repayment history.
|
(9)
|
Reflects elimination of FedFirst’s equity accounts, issuance of 1,721,967 shares of CB’s common stock and additional merger-related transaction costs, net of tax. Through September 30, 2014, FedFirst incurred merger-related transaction costs of $1.7 million ($1.1 million net of tax) and incurred an additional $4.2 million of merger-related transaction costs in October, 2014 ($2.8 million after tax).
|
CB Historical
|
FedFirst
Historical
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
|||||||||||||
Interest and dividend income:
|
||||||||||||||||
Loans
|
$ | 12,067 | $ | 9,211 | $ | 687 | (2) | $ | 21,965 | |||||||
Investments
|
1,633 | 576 |
–
|
(2) | 2,209 | |||||||||||
Other interest-earning assets
|
116 | 65 |
–
|
181 | ||||||||||||
Total interest and dividend income
|
13,816 | 9,852 | 687 | 24,355 | ||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
1,222 | 901 | (51 | )(2) | 2,072 | |||||||||||
Short term borrowings
|
32 |
–
|
- | 32 | ||||||||||||
FHLB advances
|
86 | 684 | (87 | )(2) | 683 | |||||||||||
Total interest expense
|
1,340 | 1,585 | (138 | ) | 2,787 | |||||||||||
Net interest income before provision for loan losses
|
12,476 | 8,267 | 825 | 21,568 | ||||||||||||
Provision for loan losses
|
–
|
295 |
–
|
295 | ||||||||||||
Net interest income after provision for loan losses
|
12,476 | 7,972 | 825 | 21,273 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Service fees
|
1,538 | 455 |
–
|
1,993 | ||||||||||||
Insurance commissions
|
–
|
2,513 |
–
|
2,513 | ||||||||||||
Increase in cash surrender value of bank-owned life insurance
|
174 | 179 |
–
|
353 | ||||||||||||
Net gain on sales of loans
|
272 |
–
|
–
|
272 | ||||||||||||
Net gain on sales of available for sale securities
|
35 | 76 |
–
|
111 | ||||||||||||
Other income
|
334 | 83 |
–
|
417 | ||||||||||||
Total noninterest income
|
2,353 | 3,306 |
–
|
5,659 | ||||||||||||
Noninterest expenses:
|
||||||||||||||||
Salaries and employee benefits
|
5,642 | 4,713 |
–
|
10,355 | ||||||||||||
Occupancy and equipment
|
1,676 | 848 | 17 | (2) | 2,541 | |||||||||||
Outside professional services
|
582 | 427 |
–
|
1,009 | ||||||||||||
Data processing
|
–
|
520 |
–
|
520 | ||||||||||||
Marketing and advertising
|
268 | 354 |
–
|
622 | ||||||||||||
FDIC deposit insurance and regulatory assessment
|
288 | 153 |
–
|
441 | ||||||||||||
Acquisition-related expenses
|
1,033 | 1,667 |
–
|
2,700 | ||||||||||||
Other
|
2,049 | 1,045 | 418 | (2) | 3,512 | |||||||||||
Total noninterest expenses
|
11,538 | 9,727 | 435 | (3) | 21,700 | |||||||||||
Income before noncontrolling interest in net income of consolidated subsidiary
|
3,291 | 1,551 | 390 | 5,232 | ||||||||||||
Income tax expense
|
734 | 546 | 133 | 1,413 | ||||||||||||
Net income before noncontrolling interest in net income of consolidated subsidiary
|
2,557 | 1,005 | 257 | 3,819 | ||||||||||||
Noncontrolling interest in net income of consolidated subsidiary
|
–
|
(69 | ) | 69 |
–
|
|||||||||||
Net (loss) income
|
$ | 2,557 | $ | 936 | $ | 326 | $ | 3,819 | ||||||||
Earnings (loss) per share:
|
||||||||||||||||
Basic
|
$ | 1.09 | $ | 0.42 | $ | 0.94 | ||||||||||
Diluted
|
$ | 1.09 | $ | 0.41 | $ | 0.94 | ||||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
2,348,956 | 2,233,033 | 4,070,923 | (3) | ||||||||||||
Diluted
|
2,354,484 | 2,294,504 | 4,076,451 | (3) |
CB Historical
|
FedFirst
Historical
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
|||||||||||||
Interest and dividend income:
|
||||||||||||||||
Loans
|
$ | 15,380 | $ | 11,867 | $ | 916 | (2) | $ | 28,163 | |||||||
Investments
|
2,317 | 1,026 | – | 3,343 | ||||||||||||
Other interest-earning assets
|
60 | 27 | – | 87 | ||||||||||||
Total interest and dividend income
|
17,757 | 12,920 | 916 | 31,593 | ||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
1,968 | 1,419 | (68 | )(2) | 3,319 | |||||||||||
Federal funds purchased and repurchase agreements
|
60 | – | – | 60 | ||||||||||||
FHLB advances
|
209 | 1,275 | (115 | )(2) | 1,369 | |||||||||||
Total interest expense
|
2,237 | 2,694 | (183 | ) | 4,748 | |||||||||||
Net interest income before provision for loan losses
|
15,520 | 10,226 | 1,099 | 26,845 | ||||||||||||
Provision for loan losses
|
100 | 740 | – | 840 | ||||||||||||
Net interest income after provision for loan losses
|
15,420 | 9,486 | 1,099 | 26,005 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Service fees
|
2,146 | 750 | – | 2,896 | ||||||||||||
Insurance commissions
|
3,222 | – | 3,222 | |||||||||||||
Increase in cash surrender value of bank-owned life insurance
|
243 | 243 | – | 486 | ||||||||||||
Net gain on sales of loans
|
476 | – | – | 476 | ||||||||||||
Other income (loss)
|
520 | 102 | – | 622 | ||||||||||||
Total noninterest income
|
3,385 | 4,317 | – | 7,702 | ||||||||||||
Noninterest expenses:
|
||||||||||||||||
Salaries and employee benefits
|
7,341 | 6,115 | – | 13,456 | ||||||||||||
Occupancy and equipment
|
2,094 | 1,158 | 22 | (2) | 3,274 | |||||||||||
Computer and electronic banking services
|
||||||||||||||||
Outside professional services
|
672 | 601 | – | 1,273 | ||||||||||||
Data processing
|
– | 575 | – | 575 | ||||||||||||
Marketing and advertising
|
300 | 498 | – | 798 | ||||||||||||
FDIC deposit insurance and regulatory assessment
|
787 | 180 | – | 967 | ||||||||||||
Acquisition-related expenses
|
2,195 | 1,178 | 557 | (2) | 3,930 | |||||||||||
Total noninterest expenses
|
13,389 | 10,305 | 579 | (3) | 24,273 | |||||||||||
Income before income tax expense and noncontrolling interest in net income of consolidated subsidiary
|
5,416 | 3,498 | 520 | (2) | 9,434 | |||||||||||
Income tax expense
|
1,160 | 1,186 | 177 | (2) | 2,523 | |||||||||||
Net income before noncontrolling interest in net income of consolidated subsidiary
|
4,256 | 2,312 | 343 | 6,911 | ||||||||||||
Noncontrolling interest in net income of consolidated subsidiary
|
– | (77 | ) | 77 | – | |||||||||||
Net income
|
$ | 4,256 | $ | 2,235 | $ | 420 | $ | 6,911 | ||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 1.73 | $ | 0.93 | $ | 1.65 | ||||||||||
Diluted
|
$ | 1.72 | $ | 0.91 | $ | 1.65 | ||||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
2,463,571 | 2,405,295 | 4,185,538 | (4) | ||||||||||||
Diluted
|
2,478,086 | 2,449,252 | 4,200,053 | (4) |
(1)
|
Assumes that the merger was completed as of the beginning of the period presented utilizing the acquisition method of accounting. Estimated fair value adjustments for loans, core deposit intangible, time deposits, borrowed funds and repurchase agreement were determined by an outside expert commissioned to calculate the fair value of selected assets and liabilities of FedFirst. The resulting premiums and discounts for purposes of the unaudited combined condensed consolidated pro forma financial data, where appropriate, are being amortized and accreted into income as more fully described in the notes below. Actual fair value adjustments were determined as of the merger completion date, October 31, 2014, and will be amortized and accreted into income over the estimated remaining lives of the respective assets and liabilities.
|
(2)
|
The following table summarizes the estimated full year impact of the amortization (accretion) of the non-credit related acquisition accounting adjustments on the pro forma statement of operations (in thousands) assuming the merger was completed as of the beginning of the fiscal year presented and carried through the interim period presented.
|
Category
|
Premium/
(Discounts)
|
Estimated
Life in
Years
|
Amortization
(Accretion)
Method
|
Amortization (Accretion)
Year Ended
December 31, 2013
|
||||||||||
Loans
|
$ | (4,512 | ) | 5.25 | SL | $ | (916 | ) | ||||||
Core deposit intangible
|
4,977 | 9.31 | SL | 557 | ||||||||||
Time deposits
|
(150 | ) | 2.20 | SL | (68 | ) | ||||||||
FHLB advances
|
(298 | ) | 2.58 | SL | (115 | ) | ||||||||
Banking premises
|
557 | 25.00 | SL | 22 | ||||||||||
________________ | ||||||||||||||
EY - effective yield method. | ||||||||||||||
SL - straight line method. | ||||||||||||||
SD - sum-of-the-years digit method. |
Amounts
for the Years Ended December 31,
|
Amortization
of
Intangibles
|
Net
Amortization
(Accretion)
|
Net Decrease
in Income
Before Taxes
|
|||||||||
2014
|
$ | (535 | ) | $ | 1,151 | $ | 616 | |||||
2015
|
(535 | ) | 1,076 | 541 | ||||||||
2016
|
(535 | ) | 911 | 376 | ||||||||
2017
|
(535 | ) | 569 | (34 | ) | |||||||
2018
|
(535 | ) | 79 | (456 | ) | |||||||
Thereafter
|
(2,304 | ) | 615 | (1,189 | ) |
(3)
|
Basic and diluted weighted average common shares outstanding were determined by adding the number of shares issuable to FedFirst’s stockholders to CB’s historical weighted average basic and diluted outstanding common shares and reflect 1,721,967 incremental diluted shares of CB as a result of pro forma income for the nine months ended September 30, 2014. The stock consideration paid to FedFirst’s stockholders consists of the issuance of 1,721,967 shares of CB’s common stock based upon the fixed exchange rate of 1.1590 applied to 65% of the 2,286,008 shares of FedFirst common stock outstanding. The share amounts above reflect the impact related to the retirement of unallocated shares utilized to terminate First Federal Savings Bank’s employee stock ownership plan.
|
(4)
|
Basic and diluted weighted average common shares outstanding were determined by adding the number of shares issuable to FedFirst’s stockholders to CB’s historical weighted average basic and diluted outstanding common shares. The stock consideration paid to FedFirst’s stockholders consists of the issuance of 1,721,967 shares of CB’s common stock based upon the fixed exchange rate of 1.1590 applied to 65% of the 2,286,008 shares of FedFirst common stock outstanding. The share amounts above reflect the impact related to the retirement of unallocated shares utilized to terminate First Federal Savings Bank’s employee stock ownership plan.
|
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