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Share Name | Share Symbol | Market | Type |
---|---|---|---|
1ST Century Bancshares, | NASDAQ:FCTY | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 11.22 | 10.98 | 12.02 | 0 | 01:00:00 |
Delaware
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26-1169687
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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The NASDAQ Capital Market
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Large accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
x
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(Do not check if a smaller reporting company)
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Page
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PART I
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||
Item 1.
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Business
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4
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Item 1A.
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Risk Factors
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14
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Item 1B.
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Unresolved Staff Comments
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20
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Item 2.
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Properties
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20
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Item 3.
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Legal Proceedings
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20
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Item 4.
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Mine Safety Disclosures
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20
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PART II
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||
Item 5.
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21
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Item 6.
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Selected Financial Data
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22
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operation
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22
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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36
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Item 8.
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Financial Statements and Supplementary Data
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36
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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36
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Item 9A.
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Controls and Procedures
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36
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Item 9B.
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Other Information
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36
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PART III
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||
Item 10.
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Directors, Executive Officers and Corporate Governance
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37
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Item 11.
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Executive Compensation
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37
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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37
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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37
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Item 14.
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Principal Accountant Fees and Services
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37
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PART IV
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Item 15.
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Exhibits and Financial Statement Schedules
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38
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Signatures and Certifications
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40
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Consolidated Financial Statements
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42
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●
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Business and personal lines of credit and term loans,
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Tenant improvement and equipment financing,
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Bridge and/or specific purpose loans,
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Commercial, industrial, multi-family and 1-4 single family residential real estate lending,
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Personal home equity loans and lines of credit, and
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Credit cards for business and personal use.
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Business checking, money market and certificates of deposit,
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Personal checking, money market and certificates of deposits,
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Attorney-Client trust accounts,
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Trust accounts,
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Cash management and on-line banking, and
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Debit cards.
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Special Mention
– Grade 5. Loan assets categorized as “Special Mention” have potential weaknesses that deserve management’s close attention. Borrower and guarantor’s capacity to meet all financial obligations is marginally adequate or deteriorating.
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Substandard
– Grade 6. Loan assets classified “Substandard” are inadequately protected by the paying capacity of the Borrower and/or collateral pledged. The borrower or guarantor is unwilling or unable to meet loan terms or loan covenants for the foreseeable future.
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●
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Doubtful
– Grade 7. Loan assets classified as “Doubtful” have all the weakness inherent in one classified as Substandard with the added characteristic that those weaknesses in place make the collection or liquidation in full, on the basis of current conditions, highly questionable and improbable.
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●
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Loss
– Grade 8. Loan assets classified as “Loss” are considered uncollectible or no longer a bankable asset. This classification does not mean that the asset has absolutely no recoverable value. In fact, a certain salvage value is inherent in these loans. Nevertheless, it is not practical or desirable to defer writing off a portion or all of a perceived asset even though partial recovery may be collected in the future.
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capital standards applicable to bank holding companies may be no less stringent than those applied to insured depository institutions;
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annual stress tests and early remediation or so-called living wills are required for larger banks with more than $50 billon assets as well risk committees of its board of directors that include a risk expert and such requirements may have the effect of establishing new best practices standards for smaller banks;
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trust preferred securities must generally be deducted from Tier 1 capital over a three-year phase-in period ending in 2016, although depository institution holding companies with assets of less than $15 billion as of year-end 2009 are grandfathered with respect to such securities for purposes of calculating regulatory capital;
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the assessment base for federal deposit insurance was changed to consolidated assets less tangible capital instead of the amount of insured deposits, which generally increased the insurance fees of larger banks, but had relatively less impact on smaller banks;
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repeal of the federal prohibition on the payment of interest on demand deposits, including business checking accounts, and made permanent the $250,000 limit for federal deposit insurance;
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the establishment of the Consumer Finance Protection Bureau (the “CFPB”) with responsibility for promulgating regulations designed to protect consumers’ financial interests and prohibit unfair, deceptive and abusive acts and practices by financial institutions, and with authority to directly examine those financial institutions with $10 billion or more in assets for compliance with the regulations promulgated by the CFPB;
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limits, or places significant burdens and compliance and other costs, on activities traditionally conducted by banking organizations, such as originating and securitizing mortgage loans and other financial assets, arranging and participating in swap and derivative transactions, proprietary trading and investing in private equity and other funds; and
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the establishment of new compensation restrictions and standards regarding the time, manner and form of compensation given to key executives and other personnel receiving incentive compensation, including documentation and governance, proxy access by stockholders, deferral and claw-back requirements.
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Requirements that bank holding companies and banks meet or exceed minimum capital requirements. See Part 1, Item 1. “Business – Capital Standards.”
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Requirements that bank holding companies serve as a source of financial and managerial strength for their banking subsidiaries. In addition, the regulatory agencies have “prompt corrective action” authority to limit activities and require a limited guaranty of a required bank capital restoration plan by a bank holding company if the capital of a bank subsidiary falls below capital levels required by the regulators.
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●
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Limitations on dividends payable to shareholders. Bancshare’s ability to pay dividends on both its common and preferred stock are subject to legal and regulatory restrictions, and would be derived from dividends paid by the Bank.
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Limitations on dividends payable by bank subsidiaries. These dividends are subject to various legal and regulatory restrictions. The federal banking agencies have indicated that paying dividends that deplete a depositary institution’s capital base to an inadequate level would be an unsafe and unsound banking practice. Moreover, the federal agencies have issued policy statements that provide that bank holding companies and insured banks should generally only pay dividends out of current operating earnings.
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Safety and soundness requirements. Banks must be operated in a safe and sound manner and meet standards applicable to internal controls, information systems, internal audit, loan documentation, credit underwriting, interest rate exposure, asset growth and compensation, as well as other operational and management standards. These safety and soundness requirements give bank regulatory agencies significant latitude in exercising their supervisory authority and their authority to initiate informal or formal enforcement action.
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Requirements for approval of acquisitions and activities. Prior approval or nonobjection of the applicable federal regulatory agencies is required for most acquisitions and mergers and in order for Bancshares or Bank to engage in certain nonbanking activities and activities that have been determined by the Federal Reserve to be financial in nature, incidental to financial activities, or complementary to a financial activity.
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Compliance with the Community Reinvestment Act (the “CRA”). The CRA requires that banks help meet the credit needs in their communities, including the availability of credit to low and moderate income individuals. If the Company or the Bank fails to adequately serve their communities, penalties may be imposed, including denials of applications for branches, to add subsidiaries and affiliates, or to merge with or purchase other financial institutions. In its last reported examination by the OCC in June 2011, the Bank received a CRA rating of “Satisfactory.”
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Compliance with the Bank Secrecy Act, the USA Patriot Act, and other anti-money laundering laws. These laws and regulations require financial institutions to assist U.S. Government agencies in detecting and preventing money laundering and other illegal acts by maintaining policies, procedures and controls designed to detect and report money laundering, terrorist financing, and other suspicious activity.
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Limitations on the amount of loans to one borrower and its affiliates and to executive officers and directors.
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Limitations on transactions with affiliates.
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Restrictions on the nature and amount of any investments in, and ability to underwrite certain securities.
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Requirements for opening of branches intra- and interstate.
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Truth in lending and other consumer protection and disclosure laws to ensure equal access to credit and to protect consumers in credit transactions.
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Provisions of the Gramm-Leach-Bliley Act of 1999 (“GLB Act”) and other federal and state laws dealing with privacy for nonpublic personal information of customers.
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Core Capital (Tier 1)
. Tier 1 capital includes common equity, retained earnings, qualifying non-cumulative perpetual preferred stock, a limited amount of qualifying cumulative perpetual preferred stock at the holding company level, minority interests in equity accounts of consolidated subsidiaries, and qualifying trust preferred securities for certain banking organizations, less goodwill, most intangible assets and certain other assets.
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●
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Supplementary Capital (Tier 2).
Tier 2 capital includes, among other things, perpetual preferred stock and trust preferred securities not meeting the Tier 1 definition, qualifying mandatory convertible debt securities, qualifying subordinated debt, and allowances for possible loan and lease losses, subject to limitation.
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Market Risk Capital (Tier 3).
Tier 3 capital includes qualifying unsecured subordinated debt.
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The Company is facing increased regulation of the banking industry. Compliance with such regulation has increased costs and could limit the Company’s ability to pursue business opportunities.
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Market developments may again affect consumer confidence levels and may cause declines in credit card usage and adverse changes in payment patterns, causing increases in delinquencies and default rates, which could impact charge-offs and provision for credit losses.
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The process the Company uses to estimate losses inherent in its credit exposure or estimate the value of certain assets requires difficult, subjective, and complex judgments, including forecasts of economic conditions and how these economic predictions might impact the ability of our borrowers to repay their loans or affect the value of assets. During uncertain economic times, these assessments are more difficult, and can impact the reliability of the process.
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The Company’s ability to borrow from other financial institutions could be adversely affected by further disruptions in the capital markets or other events.
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Competition in the banking industry has intensified as a result of the increasing consolidation of financial services companies in connection with current market conditions.
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Renewed increases in problem assets and foreclosures.
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Renewed increases in loan delinquencies.
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Further decline in demand for loans and other products and services may continue.
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Deposits may decrease.
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Collateral for loans made by the Company, especially real estate, have declined and may experience further declines in value, in turn reducing customers’ borrowing power or capacity to repay, and reducing the value of assets and collateral associated with the Company’s existing loans.
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Year ended December 31, 2012
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High
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Low
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||||||
Fourth Quarter
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$ | 4.99 | $ | 4.50 | ||||
Third Quarter
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$ | 5.15 | $ | 4.50 | ||||
Second Quarter
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$ | 5.19 | $ | 4.03 | ||||
First Quarter
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$ | 5.00 | $ | 3.48 |
Year ended December 31, 2011
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||||||||
Fourth Quarter
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$ | 3.67 | $ | 3.36 | ||||
Third Quarter
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$ | 3.94 | $ | 3.50 | ||||
Second Quarter
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$ | 4.10 | $ | 3.52 | ||||
First Quarter
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$ | 4.39 | $ | 4.00 |
Period
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Total
Number of
Shares
Purchased
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Average
Price Paid
Per Share
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Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs (1)
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Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans of Program (1)
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||||||||||||
October 1-31, 2012
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— | $ | — | — | $ | 29 | ||||||||||
November 1-30, 2012
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— | — | — | 29 | ||||||||||||
December 1-31, 2012
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— | — | — | 29 | ||||||||||||
Total
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— | $ | — | — | $ | 29 |
Years ended December 31,
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||||||||
2012
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2011
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|||||||
Return on average assets
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0.64 | % | 0.29 | % | ||||
Return on average stockholders’ equity
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6.26 | % | 2.29 | % | ||||
Average equity to average assets
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10.21 | % | 12.45 | % | ||||
Net interest margin
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3.12 | % | 3.21 | % |
Years ended December 31,
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||||||||||||||||||||||||||||||||||||
2012
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2011
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2010
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||||||||||||||||||||||||||||||||||
(dollars in thousands)
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Average
Balance
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Interest
Inc/Exp
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Yield
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Average
Balance
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Interest
Inc/Exp
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Yield
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Average
Balance
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Interest
Inc/Exp
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Yield
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|||||||||||||||||||||||||||
Assets
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||||||||||||||||||||||||||||||||||||
Interest earning deposits at other financial institutions
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$ | 52,026 | $ | 132 | 0.25 | % | $ | 71,119 | $ | 180 | 0.25 | % | $ | 54,896 | $ | 140 | 0.25 |
%
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||||||||||||||||||
U.S. Gov’t and Federal agency securities
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2,179 | 36 | 1.65 | % | 1,227 | 14 | 1.09 | % | 456 | 8 | 1.92 |
%
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||||||||||||||||||||||||
Debt securities issued by the States of the United States
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— | — | — | % | 981 | 17 | 1.76 | % | 215 | 4 | 1.72 |
%
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||||||||||||||||||||||||
Corporate notes
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26,084 | 556 | 2.13 | % | 2,545 | 30 | 1.19 | % | — | — | — |
%
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||||||||||||||||||||||||
Residential mortgage backed securities and CMOs
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132,762 | 2,837 | 2.14 | % | 80,333 | 2,418 | 3.01 | % | 42,122 | 1,732 | 4.11 |
%
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||||||||||||||||||||||||
Federal Reserve Bank stock
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1,307 | 78 | 6.00 | % | 1,258 | 75 | 6.00 | % | 1,376 | 83 | 6.01 |
%
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||||||||||||||||||||||||
Federal Home Loan Bank stock
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2,176 | 22 | 1.01 | % | 1,869 | 6 | 0.30 | % | 2,182 | 7 | 0.35 |
%
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||||||||||||||||||||||||
Loans (1) (2)
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234,875 | 11,378 | 4.84 | % | 191,874 | 9,467 | 4.93 | % | 172,177 | 8,891 | 5.16 |
%
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||||||||||||||||||||||||
Earning assets
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451,409 | 15,039 | 3.33 | % | 351,206 | 12,207 | 3.48 | % | 273,424 | 10,865 | 3.97 |
%
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||||||||||||||||||||||||
Other assets
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9,145 | 8,324 | 8,643 | |||||||||||||||||||||||||||||||||
Total assets
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$ | 460,554 | $ | 359,530 | $ | 282,067 | ||||||||||||||||||||||||||||||
Liabilities & Equity
|
||||||||||||||||||||||||||||||||||||
Interest checking (NOW)
|
$ | 22,730 | 40 | 0.17 | % | $ | 28,823 | 80 | 0.28 | % | $ | 26,409 | 62 | 0.23 |
%
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|||||||||||||||||||||
Money market deposits and savings
|
159,043 | 491 | 0.31 | % | 114,778 | 570 | 0.50 | % | 58,281 | 378 | 0.65 |
%
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||||||||||||||||||||||||
CDs
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45,939 | 134 | 0.29 | % | 50,624 | 181 | 0.36 | % | 61,185 | 320 | 0.52 |
%
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||||||||||||||||||||||||
Borrowings
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25,013 | 301 | 1.21 | % | 6,790 | 95 | 1.40 | % | 8,387 | 212 | 2.53 |
%
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||||||||||||||||||||||||
Total interest bearing deposits and borrowings
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252,725 | 966 | 0.38 | % | 201,015 | 926 | 0.46 | % | 154,262 | 972 | 0.63 |
%
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||||||||||||||||||||||||
Demand deposits
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157,525 | 111,328 | 78,858 | |||||||||||||||||||||||||||||||||
Other liabilities
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3,297 | 2,435 | 2,050 | |||||||||||||||||||||||||||||||||
Total liabilities
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413,547 | 314,778 | 235,170 | |||||||||||||||||||||||||||||||||
Equity
|
47,007 | 44,752 | 46,897 | |||||||||||||||||||||||||||||||||
Total liabilities & equity
|
$ | 460,554 | $ | 359,530 | $ | 282,067 | ||||||||||||||||||||||||||||||
Net interest income / spread
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$ | 14,073 | 2.95 | % | $ | 11,281 | 3.02 | % | $ | 9,893 | 3.34 |
%
|
||||||||||||||||||||||||
Net interest margin
|
3.12 | % | 3.21 | % | 3.62 |
%
|
Years ended December 31, 2012 Compared to 2011
Increase (Decrease) Due to Changes in:
|
||||||||||||
(in thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Interest income:
|
||||||||||||
Interest earning deposits at other financial institutions
|
$ | (48 | ) | $ | — | $ | (48 | ) | ||||
U.S. Gov’t and Federal agency securities
|
14 | 8 | 22 | |||||||||
Debt securities issued by the States of the United States
|
(17 | ) | — | (17 | ) | |||||||
Corporate notes
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484 | 42 | 526 | |||||||||
Residential mortgage backed securities and CMOs
|
1,261 | (842 | ) | 419 | ||||||||
Federal Reserve Bank stock
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3 | — | 3 | |||||||||
Federal Home Loan Bank stock
|
1 | 15 | 16 | |||||||||
Loans
|
2,086 | (175 | ) | 1,911 | ||||||||
Total increase (decrease) in interest income
|
3,784 | (952 | ) | 2,832 | ||||||||
Interest expense:
|
||||||||||||
Interest checking (NOW)
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(14 | ) | (26 | ) | (40 | ) | ||||||
Money market deposits and savings
|
178 | (257 | ) | (79 | ) | |||||||
CDs
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(16 | ) | (31 | ) | (47 | ) | ||||||
Borrowings
|
221 | (15 | ) | 206 | ||||||||
Total increase (decrease) in interest expense
|
369 | (329 | ) | 40 | ||||||||
Net increase (decrease) in net interest income
|
$ | 3,415 | $ | (623 | ) | $ | 2,792 | |||||
Years ended December 31, 2011 Compared to 2010
Increase (Decrease) Due to Changes in:
|
||||||||||||
(in thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Interest income:
|
||||||||||||
Interest earning deposits at other financial institutions
|
$ | 41 | $ | (1 | ) | $ | 40 | |||||
U.S. Gov’t and Federal agency securities
|
11 | (5 | ) | 6 | ||||||||
Debt securities issued by the States of the United States
|
13 | — | 13 | |||||||||
Corporate notes
|
30 | — | 30 | |||||||||
Residential mortgage backed securities and CMOs
|
1,245 | (559 | ) | 686 | ||||||||
Federal Reserve Bank stock
|
(8 | ) | — | (8 | ) | |||||||
Federal Home Loan Bank stock
|
(1 | ) | — | (1 | ) | |||||||
Loans
|
984 | (408 | ) | 576 | ||||||||
Total increase (decrease) in interest income
|
2,315 | (973 | ) | 1,342 | ||||||||
Interest expense:
|
||||||||||||
Interest checking (NOW)
|
6 | 12 | 18 | |||||||||
Money market deposits and savings
|
298 | (106 | ) | 192 | ||||||||
CDs
|
(49 | ) | (90 | ) | (139 | ) | ||||||
Borrowings
|
(35 | ) | (82 | ) | (117 | ) | ||||||
Total increase (decrease) in interest expense
|
220 | (266 | ) | (46 | ) | |||||||
Net increase (decrease) in net interest income
|
$ | 2,095 | $ | (707 | ) | $ | 1,388 |
December 31, 2010
|
||||||||||||||||
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
||||||||||||
Investments–Available for Sale
|
||||||||||||||||
U.S. Gov’t Treasuries
|
$ | 150 | $ | — | $ | — | $ | 150 | ||||||||
Debt issued by the states of the United States
|
2,012 | 3 | — | 2,015 | ||||||||||||
Residential Mortgage-Backed Securities
|
53,105 | 1,588 | (174 | ) | 54,519 | |||||||||||
Residential CMOs
|
1,783 | 7 | — | 1,790 | ||||||||||||
Total
|
$ | 57,050 | $ | 1,598 | $ | (174 | ) | $ | 58,474 |
December 31,
|
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2012 |
2011
|
2010
|
2009
|
2008
|
||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Amount Outstanding
|
Percent of Total
|
Amount Outstanding
|
Percent of Total
|
Amount Outstanding
|
Percent of Total
|
Amount Outstanding
|
Percent of Total
|
Amount Outstanding
|
Percent of Total
|
||||||||||||||||||||||||||||||
Commercial (1)
|
$ | 58,769 | 22.0 | % | $ | 70,945 | 30.4 | % | $ | 67,411 | 37.6 | % | $ | 84,721 | 46.6 | % | $ | 104,990 | 52.5 | % | ||||||||||||||||||||
Commercial real estate
|
110,031 | 41.3 | % | 70,269 | 30.2 | % | 54,456 | 30.4 | % | 59,403 | 32.7 | % | 56,682 | 28.3 | % | |||||||||||||||||||||||||
Residential
|
53,162 | 19.9 | % | 54,944 | 23.6 | % | 21,707 | 12.1 | % | 1,880 | 1.0 | % | 1,983 | 1.0 | % | |||||||||||||||||||||||||
Land and construction
|
19,080 | 7.2 | % | 16,670 | 7.2 | % | 15,462 | 8.6 | % | 16,777 | 9.3 | % | 17,371 | 8.7 | % | |||||||||||||||||||||||||
Consumer and other (2)
|
25,584 | 9.6 | % | 20,140 | 8.6 | % | 20,235 | 11.3 | % | 18,927 | 10.4 | % | 18,957 | 9.5 | % | |||||||||||||||||||||||||
Loans, gross
|
266,626 | 100.0 | % | 232,968 | 100.0 | % | 179,271 | 100.0 | % | 181,708 | 100.0 | % | 199,983 | 100.0 | % | |||||||||||||||||||||||||
Plus (Less) — net deferred costs (unearned fee income)
|
45 | 37 | 22 | 99 | (27 | ) | ||||||||||||||||||||||||||||||||||
Less — allowance for loan losses
|
(6,015 | ) | (5,284 | ) | (5,283 | ) | (5,478 | ) | (5,171 | ) | ||||||||||||||||||||||||||||||
Loans, net
|
$ | 260,656 | $ | 227,721 | $ | 174,010 | $ | 176,329 | $ | 194,785 |
(1)
|
Unsecured commercial loan balances were $10.0 million, $11.5 million, $11.0 million, $17.5 million, and $23.9 million at December 31, 2012, 2011, 2010, 2009, and 2008, respectively.
|
(2)
|
Unsecured consumer and other loan balances were $901,000, $2.8 million, $1.9 million, $1.8 million, and $4.1 million at December 31, 2012, 2011, 2010, 2009, and 2008, respectively.
|
December 31, 2012
|
||||||||||||||||
(in thousands)
|
One Year or
Less
|
Greater than
one year
through
|
Greater than
five years
|
Total
|
||||||||||||
Commercial Loans
|
||||||||||||||||
Floating rate
|
$ | 16,262 | $ | 22,525 | $ | 1,812 | $ | 40,599 | ||||||||
Fixed rate
|
6,725 | 10,449 | 996 | 18,170 | ||||||||||||
Real Estate Loans
|
||||||||||||||||
Floating rate
|
13,827 | 17,444 | 34,553 | 65,824 | ||||||||||||
Fixed rate
|
21,767 | 47,103 | 47,579 | 116,449 | ||||||||||||
$ | 58,581 | $ | 97,521 | $ | 84,940 | $ | 241,042 |
December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Commercial
|
$ | 1,509 | $ | 2,175 | $ | 1,693 | $ | 3,032 | $ | — | ||||||||||
Commercial real estate
|
— | 3,756 | 5,080 | 5,923 | 3,435 | |||||||||||||||
Residential
|
— | — | — | 845 | 607 | |||||||||||||||
Land and Construction
|
— | 1,330 | — | — | — | |||||||||||||||
Consumer and other
|
345 | 345 | 345 | 10 | 1,650 | |||||||||||||||
Total non-accrual loans
|
1,854 | 7,606 | 7,118 | 9,810 | 5,692 | |||||||||||||||
OREO
|
90 | — | 845 | — | 162 | |||||||||||||||
Total non-performing assets
|
$ | 1,944 | $ | 7,606 | $ | 7,963 | $ | 9,810 | $ | 5,854 | ||||||||||
Non-performing assets to total loans and OREO
|
0.73 | % | 3.26 | % | 4.42 | % | 5.40 | % | 2.92 | % | ||||||||||
Non-performing assets to total assets
|
0.39 | % | 1.88 | % | 2.58 | % | 3.60 | % | 2.26 | % |
|
●
|
the risk characteristics of various classifications of loans;
|
|
●
|
general portfolio trends relative to asset and portfolio size;
|
|
●
|
asset categories;
|
|
●
|
potential credit concentrations;
|
|
●
|
delinquency trends within the loan portfolio;
|
|
●
|
changes in the volume and severity of past due and other classified loans;
|
|
●
|
historical loss experience and risks associated with changes in economic, social and business conditions; and
|
|
●
|
the underwriting standards in effect when the loan was made.
|
(in thousands)
|
Commercial | Commercial Real Estate | Residential |
Land and Construction
|
Consumer and Other
|
Total
|
||||||||||||||||||
Year Ended December 31, 2012:
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,584 | $ | 1,252 | $ | 583 | $ | 516 | $ | 349 | $ | 5,284 | ||||||||||||
Provision for loan losses
|
(305 | ) | 485 | (75 | ) | (100 | ) | (5 | ) | — | ||||||||||||||
Charge-offs
|
(26 | ) | (400 | ) | — | (5 | ) | — | (431 | ) | ||||||||||||||
Recoveries
|
24 | 1,113 | — | — | 25 | 1,162 | ||||||||||||||||||
Ending balance
|
$ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | ||||||||||||
Year Ended December 31, 2011:
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,812 | $ | 888 | $ | 213 | $ | 995 | $ | 375 | $ | 5,283 | ||||||||||||
Provision for loan losses
|
(724 | ) | 894 | 370 | (209 | ) | (56 | ) | 275 | |||||||||||||||
Charge-offs
|
(223 | ) | (530 | ) | — | (270 | ) | — | (1,023 | ) | ||||||||||||||
Recoveries
|
719 | — | — | — | 30 | 749 | ||||||||||||||||||
Ending balance
|
$ | 2,584 | $ | 1,252 | $ | 583 | $ | 516 | $ | 349 | $ | 5,284 |
December 31,
|
||||||||||||
(in thousands)
|
2010
|
2009
|
2008
|
|||||||||
Beginning balance
|
$ | 5,478 | $ | 5,171 | $ | 2,369 | ||||||
Provision for loan losses
|
2,775 | 6,154 | 4,342 | |||||||||
Charge-offs:
|
||||||||||||
Commercial
|
(2,321 | ) | (1,528 | ) | (972 | ) | ||||||
Commercial real estate
|
(900 | ) | (2,674 | ) | (189 | ) | ||||||
Residential
|
— | (125 | ) | (368 | ) | |||||||
Consumer and other
|
(190 | ) | (1,642 | ) | (12 | ) | ||||||
Total Charge-offs
|
(3,411 | ) | (5,969 | ) | (1,541 | ) | ||||||
Recoveries:
|
||||||||||||
Commercial
|
386 | 92 | — | |||||||||
Commercial real estate
|
20 | — | — | |||||||||
Consumer and other
|
35 | 30 | 1 | |||||||||
Total Recoveries
|
441 | 122 | 1 | |||||||||
Ending balance
|
$ | 5,283 | $ | 5,478 | $ | 5,171 |
December 31,
|
||||||||||||||||||||||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Balance of Allowance
for Loan Losses
|
Percentage of Loans in
Each
Category
|
Balance of Allowance
for Loan Losses
|
Percentage
of Loans in Each
Category
|
Balance of Allowance
for Loan Losses
|
Percentage of Loans
in Each Category
|
Balance of Allowance
for Loan Losses
|
Percentage
of Loans in Each
Category
|
Balance of Allowance
for Loan Losses
|
Percentage of Loans in
Each
Category
|
||||||||||||||||||||||||||||||
Commercial and real estate loans
|
$ | 5,646 | 90.4 | % | $ | 4,935 | 91.4 | % | $ | 4,994 | 88.7 | % | $ | 5,237 | 89.6 | % | $ | 4,962 | 90.5 | % | ||||||||||||||||||||
Consumer and other loans
|
369 | 9.6 | 349 | 8.6 | 289 | 11.3 | 241 | 10.4 | 209 | 9.5 | ||||||||||||||||||||||||||||||
Total
|
$ | 6,015 | 100.0 | % | $ | 5,284 | 100.0 | % | $ | 5,283 | 100.0 | % | $ | 5,478 | 100.0 | % | $ | 5,171 | 100.0 | % |
December 31, 2012
|
December 31, 2011
|
|||||||||||||||
(dollars in thousands)
|
Amount
|
Percent of
Total
|
Amount
|
Percent of
Total
|
||||||||||||
Non-interest bearing demand deposits
|
$ | 196,026 | 47.0 | % | $ | 122,843 | 37.0 | % | ||||||||
Interest bearing checking
|
23,233 | 5.6 | % | 20,739 | 6.2 | % | ||||||||||
Money market deposits and savings
|
152,094 | 36.5 | % | 142,061 | 42.7 | % | ||||||||||
Certificates of deposit
|
45,328 | 10.9 | % | 46,811 | 14.1 | % | ||||||||||
Total
|
$ | 416,681 | 100.0 | % | $ | 332,454 | 100.0 | % |
(in thousands)
|
||||
Due within 3 months or less
|
$
|
36,982
|
||
Due after 3 months and within 6 months
|
3,810
|
|||
Due after 6 months and within 12 months
|
2,967
|
|||
Due after 12 months
|
228
|
|||
Total
|
$
|
43,987
|
December 31,
|
||||||||||||
Maturity Date
|
Interest Rate
|
2012
|
2011
|
|||||||||
May 23, 2013
|
0.63 | % | $ | 2,500 | $ | 2,500 | ||||||
May 23, 2014
|
1.14 | % | 2,500 | 2,500 | ||||||||
December 29, 2014
|
0.83 | % | 5,000 | 5,000 | ||||||||
December 30, 2014
|
0.74 | % | 2,500 | 2,500 | ||||||||
May 26, 2015
|
1.65 | % | 2,500 | 2,500 | ||||||||
May 23, 2016
|
2.07 | % | 2,500 | 2,500 | ||||||||
December 29, 2016
|
1.38 | % | 5,000 | 5,000 | ||||||||
December 30, 2016
|
1.25 | % | 2,500 | 2,500 | ||||||||
Total
|
$ | 25,000 | $ | 25,000 |
(in thousands)
|
December 31, 2012
|
December 31, 2011
|
||||||
Commitments to extend credit
|
$ | 74,230 | $ | 56,964 | ||||
Commitments to extend credit to directors and officers (undisbursed amount)
|
$ | 561 | $ | 367 | ||||
Standby/commercial letters of credit
|
$ | 1,900 | $ | 2,533 | ||||
Guarantees on revolving credit card limits
|
$ | 217 | $ | 219 | ||||
Outstanding credit card balances
|
$ | 67 | $ | 54 |
(a)
|
The following documents are filed as part of this Annual Report on Form 10-K:
|
|||
1.
|
Consolidated Financial Statements.
Reference is made to Part II, Item 8, of this Annual Report on Form 10-K.
|
|||
2.
|
Consolidated Financial Statement Schedules.
These schedules are omitted as the required information is inapplicable or the information is presented in the consolidated financial statements or related notes.
|
|||
3.
|
Exhibits.
The exhibits to this Annual Report on Form 10-K listed below have been included only with the copy of this report filed with the Securities and Exchange Commission. Copies of individual exhibits will be furnished to shareholders upon written request to 1
st
Century Bancshares, Inc. and payment of a reasonable fee.
|
Incorporated by Reference
|
||||||||||||||
Exhibit
Number
|
Exhibit Description
|
Filed
Herewith
|
Form
|
File No.
|
Exhibit
|
Filing
Date
|
||||||||
2.1
|
Plan of Reorganization, dated December 18, 2007, by and between 1st Century
Bancshares, Inc. and the 1st Century Bank, N.A.
|
8-K
|
333-148302
|
2.1
|
01/11/08
|
|||||||||
3.1
|
Certificate of Incorporation of 1
st
Century Bancshares, Inc.
|
8-K
|
333-148302
|
3.1
|
01/11/08
|
|||||||||
3.2
|
Bylaws of 1
st
Century Bancshares, Inc.
|
8-K
|
333-148302
|
3.2
|
01/11/08
|
|||||||||
4.1
|
Form of Common Stock certificate.
|
8-A
|
000-53050
|
4.1
|
01/30/08
|
|||||||||
10.1
|
Lease Amendment #1 by and between 1875/1925 Century Park East Company and 1
st
Century Bank, N.A., dated June 9, 2006.
|
10-K
|
000-53050
|
10.3
|
03/17/08
|
|||||||||
10.2
|
Lease Amendment #2 by and between 1875/1925 Century Park East Company and 1
st
Century Bank, N.A., dated October 9, 2007.
|
10-K
|
000-53050
|
10.4
|
03/17/08
|
|||||||||
10.3
|
Lease Amendment #3 by and between 1875/1925 Century Park East Company and 1
st
Century Bank, N.A., dated December 4, 2012.
|
8-K
|
001-
34226
|
10.1
|
12/06/12
|
|||||||||
10.4
|
Amended and Restated 2005 Equity Incentive Plan.
|
S-8
|
333-148303
|
4.3
|
12/21/07
|
|||||||||
10.5
|
Equity Incentive Plan Form of Stock Option Grant Agreement.
|
S-8
|
333-148303
|
4.4
|
12/21/07
|
|||||||||
10.6
|
Severance Agreement between J. Kevin Sampson and 1
st
Century Bancshares, Inc. dated November 4, 2011.
|
10-Q
|
001-34226
|
10.4
|
11/08/11
|
|||||||||
10.7
|
Form of Resale Restriction Agreement.
|
10-K
|
000-53050
|
10.8
|
03/17/08
|
|||||||||
10.8
|
Form of Restricted Stock Grant Agreement.
|
S-8
|
333-148303
|
4.5
|
12/21/07
|
|||||||||
10.9
|
Director and Employee Stock Option Plan.
|
S-8
|
333-148302
|
4.3
|
12/21/07
|
|||||||||
10.10
|
Director and Employee Stock Option Agreement.
|
S-8
|
333-148302
|
4.4
|
12/21/07
|
|
Incorporated by Reference
|
|||||||||||
Exhibit
Number
|
Exhibit Description
|
Filed
Herewith
|
Form
|
File No.
|
Exhibit
|
Filing
Date
|
||||||
10.11
|
|
Founder Stock Option Plan.
|
10-K
|
000-53050
|
10.12
|
03/17/08
|
||||||
10.12
|
|
Founder Stock Option Agreement.
|
10-K
|
000-53050
|
10.13
|
03/17/08
|
||||||
10.13
|
|
Employment Agreement between Alan I. Rothenberg and 1
st
Century Bancshares, Inc. dated November 4, 2011.
|
10-Q
|
001-34226
|
10.1
|
11/08/11
|
||||||
10.14
|
|
Employment Agreement between Jason P. DiNapoli and 1
st
Century Bancshares, Inc. dated November 4, 2011.
|
10-Q
|
001-34226
|
10.2
|
11/08/11
|
||||||
10.15
|
|
Severance Agreement between Bradley S. Satenberg and 1
st
Century Bancshares, Inc. dated November 4, 2011
|
10-Q
|
001-34226
|
10.3
|
11/08/11
|
||||||
10.16
|
|
Severance Agreement between J. Kevin Sampson and 1
st
Century Bancshares, Inc. dated November 4, 2011.
|
10-Q
|
001-34226
|
10.3
|
11/08/11
|
||||||
14
|
Code of Ethics.
|
10-K
|
000-53050
|
14
|
03/17/08
|
|||||||
21
|
|
Subsidiary of the Registrant.
|
X
|
|||||||||
23
|
|
Consent of Independent Registered Public Accounting Firm
|
X
|
|||||||||
31.1
|
|
Rule 13a-14(a) Certification of the Chief Executive Officer
|
X
|
|||||||||
31.2
|
Rule 13a-14(a) Certification of the Chief Financial Officer
|
X
|
||||||||||
32
|
|
Section 1350 Certification of the Chief Executive Officer and Chief Financial Officer
|
X
|
|||||||||
101.INS
|
XBRL Instance Document.
|
X
|
||||||||||
101.SCH
|
XBRL Taxonomy Extension Schema Document
.
|
X
|
||||||||||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
X
|
||||||||||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
X
|
||||||||||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
X
|
||||||||||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
X
|
(b)
|
Exhibits - See exhibit index included in Item 15(a)3 of this Annual Report on Form 10-K.
|
(c)
|
Financial Statement Schedules - See Item 15(a)2 of this Annual Report on Form 10-K.
|
1
ST
CENTURY BANCSHARES, INC.
|
||
By:
|
/s/ Alan I. Rothenberg.
|
|
Alan I. Rothenberg
|
||
Chairman and Chief Executive Officer
|
||
By:
|
/s/ Jason P. DiNapoli.
|
|
Jason P. DiNapoli
|
||
President and Chief Operating Officer
|
Signature
|
Title
|
Date
|
||
/s/ William W. Brien |
Director
|
March 6, 2013
|
||
William W. Brien, M.D. | ||||
/s/ Dave Brooks.
|
Director
|
March 6, 2013
|
||
Dave Brooks
|
||||
/s/ Joseph J. Digange.
|
Director
|
March 6, 2013
|
||
Joseph J. Digange
|
||||
/s/ Jason P. DiNapoli.
|
President and Chief Operating Officer, Director
|
March 6, 2013
|
||
Jason P. DiNapoli
|
||||
/s/ Eric M. George.
|
Director
|
March 6, 2013
|
||
Eric George
|
||||
/s/ Alan D. Levy.
|
Director
|
March 6, 2013
|
||
Alan D. Levy
|
||||
/s/ Robert A. Moore.
|
Director
|
March 6, 2013
|
||
Robert A. Moore
|
||||
/s/ Barry D. Pressman.
|
Director
|
March 6, 2013
|
||
Barry D. Pressman, M.D.
|
||||
/s/ Alan I. Rothenberg.
|
Chairman of the Board and Chief Executive Officer
|
March 6, 2013
|
||
Alan I. Rothenberg
|
(Principal Executive Officer)
|
|||
/s/ Bradley S. Satenberg.
|
Executive Vice President and Chief Financial Officer
|
March 6, 2013
|
||
Bradley S. Satenberg
|
(Principal Financial and Accounting Officer)
|
|||
/s/ Nadine I. Watt.
|
Director
|
March 6, 2013
|
||
Nadine I. Watt
|
||||
/s/ Lewis N. Wolff.
|
Director
|
March 6, 2013
|
||
Lewis N. Wolff
|
||||
/s/ Stanley R. Zax.
|
Director
|
March 6, 2013
|
||
Stanley R. Zax
|
||||
|
Page
|
|
|
Consolidated Balance Sheets as of December 31, 2012 and 201
1
|
43
|
|
|
Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2012 and 201
1
|
44
|
|
|
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2012 and 201
1
|
45
|
|
|
Consolidated Statements of Cash Flows for the years ended December 31, 2012 and 201
1
|
46
|
|
|
Notes to Consolidated Financial Statements
|
47
|
|
|
Report of Independent Registered Public Accounting Firm
|
73
|
|
|
|
|
December 31, 2012
|
December 31, 2011
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 6,967 | $ | 9,785 | ||||
Interest-earning deposits at other financial institutions
|
43,588 | 32,141 | ||||||
Total cash and cash equivalents
|
50,555 | 41,926 | ||||||
Investment securities — Available for Sale (“AFS”), at estimated fair value
|
181,225 | 129,906 | ||||||
Loans, net of allowance for loan losses of $6,015 and $5,284 at December 31, 2012 and 2011, respectively
|
260,656 | 227,721 | ||||||
Premises and equipment, net
|
1,020 | 1,095 | ||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock
|
3,778 | 2,962 | ||||||
Accrued interest and other assets
|
1,939 | 1,664 | ||||||
Total Assets
|
$ | 499,173 | $ | 405,274 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Non-interest bearing demand deposits
|
$ | 196,026 | $ | 122,843 | ||||
Interest bearing deposits:
|
||||||||
Interest bearing checking (“NOW”)
|
23,233 | 20,739 | ||||||
Money market deposits and savings
|
152,094 | 142,061 | ||||||
Certificates of deposit less than $100
|
1,341 | 1,956 | ||||||
Certificates of deposit of $100 or greater
|
43,987 | 44,855 | ||||||
Total deposits
|
416,681 | 332,454 | ||||||
Other borrowings
|
29,475 | 25,000 | ||||||
Accrued interest and other liabilities
|
3,844 | 2,769 | ||||||
Total Liabilities
|
450,000 | 360,223 | ||||||
Commitments and contingencies (Note 10)
|
||||||||
Stockholders’ Equity:
|
||||||||
Preferred stock, $0.01 par value — 10,000,000 shares authorized, none issued and outstanding at December 31, 2012 and 20111, respectively
|
— | — | ||||||
Common stock, $0.01 par value — 50,000,000 shares authorized, 10,965,560 and 10,841,033 issued at December 31, 2012 and 2011, respectively
|
110 | 108 | ||||||
Additional paid-in capital
|
65,038 | 64,488 | ||||||
Accumulated deficit
|
(10,899 | ) | (13,841 | ) | ||||
Accumulated other comprehensive income
|
2,436 | 1,567 | ||||||
Treasury stock at cost — 1,828,432 and 1,769,248 shares at December 31, 2012 and
2011, respectively
|
(7,512 | ) | (7,271 | ) | ||||
Total Stockholders’ Equity
|
49,173 | 45,051 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 499,173 | $ | 405,274 |
Years Ended December 31,
|
||||||||
2012
|
2011
|
|||||||
Interest and fee income on:
|
||||||||
Loans
|
$
|
11,378
|
$
|
9,467
|
||||
Investments
|
3,429
|
2,479
|
||||||
Other
|
232
|
261
|
||||||
Total interest and fee income
|
15,039
|
12,207
|
||||||
Interest expense on:
|
||||||||
Deposits
|
665
|
831
|
||||||
Borrowings
|
301
|
95
|
||||||
Total interest expense
|
966
|
926
|
||||||
Net interest income
|
14,073
|
11,281
|
||||||
Provision for loan losses
|
—
|
275
|
||||||
Net interest income after provision for loan losses
|
14,073
|
11,006
|
||||||
Non-interest income
|
1,986
|
934
|
||||||
Non-interest expenses:
|
||||||||
Compensation and benefits
|
6,944
|
5,766
|
||||||
Occupancy
|
1,288
|
1,053
|
||||||
Professional fees
|
698
|
610
|
||||||
Technology
|
691
|
641
|
||||||
Marketing
|
328
|
280
|
||||||
FDIC assessments
|
325
|
353
|
||||||
Loss on sale of other real estate owned (“OREO”)
|
21
|
329
|
||||||
Other operating expenses
|
2,711
|
1,812
|
||||||
Total non-interest expenses
|
13,006
|
10,844
|
||||||
Income before income taxes
|
3,053
|
1,096
|
||||||
Income tax provision
|
111
|
71
|
||||||
Net income
|
$
|
2,942
|
$
|
1,025
|
||||
Other Comprehensive Income:
|
||||||||
Net change in unrealized gains on AFS investments, net of tax
|
869
|
729
|
||||||
Comprehensive Income
|
$
|
3,811
|
$
|
1,754
|
||||
Basic earnings per share
|
$
|
0.35
|
$
|
0.12
|
||||
Diluted earnings per share
|
$
|
0.33
|
$
|
0.11
|
||||
Common Stock
|
Accumulated Other
|
Treasury Stock
|
Total
|
|||||||||||||||||||||||||||||
Issued
Shares
|
Amount
|
Additional
Paid-in Capital
|
Accumulated
Deficit
|
Comprehensive
Income
|
Number of
Shares
|
Amount
|
Stockholders’
Equity
|
|||||||||||||||||||||||||
Balance at December 31, 2010
|
10,672,676 | $ | 107 | $ | 64,069 | $ | (14,866 | ) | $ | 838 | (1,370,385 | ) | $ | (5,810 | ) | $ | 44,338 | |||||||||||||||
Restricted stock issued
|
206,604 | 2 | (2 | ) | — | — | — | — | — | |||||||||||||||||||||||
Forfeiture of restricted stock
|
(38,247 | ) | (1 | ) | (74 | ) | — | — | — | — | (75 | ) | ||||||||||||||||||||
Compensation expense associated with restricted stock awards, net of estimated forfeitures
|
— | — | 495 | — | — | — | — | 495 | ||||||||||||||||||||||||
Shares surrendered to pay taxes on vesting of restricted stock
|
— | — | — | — | — | (15,681 | ) | (62 | ) | (62 | ) | |||||||||||||||||||||
Common stock repurchased
|
— | — | — | — | — | (383,182 | ) | (1,399 | ) | (1,399 | ) | |||||||||||||||||||||
Net income
|
— | — | — | 1,025 | — | — | — | 1,025 | ||||||||||||||||||||||||
Other Comprehensive Income
|
— | — | — | — | 729 | — | — | 729 | ||||||||||||||||||||||||
Balance at December 31, 2011
|
10,841,033 | $ | 108 | $ | 64,488 | $ | (13,841 | ) | $ | 1,567 | (1,769,248 | ) | $ | (7,271 | ) | $ | 45,051 | |||||||||||||||
Restricted stock issued
|
164,152 | 3 | (3 | ) | — | — | — | — | — | |||||||||||||||||||||||
Forfeiture of restricted stock
|
(39,625 | ) | (1 | ) | (69 | ) | — | — | — | — | (70 | ) | ||||||||||||||||||||
Compensation expense associated with restricted stock awards, net of estimated forfeitures
|
— | — | 622 | — | — | — | — | 622 | ||||||||||||||||||||||||
Shares surrendered to pay taxes on vesting of restricted stock
|
— | — | — | — | — | (15,337 | ) | (75 | ) | (75 | ) | |||||||||||||||||||||
Common stock repurchased
|
— | — | — | — | — | (43,847 | ) | (166 | ) | (166 | ) | |||||||||||||||||||||
Net income
|
— | — | — | 2,942 | — | — | — | 2,942 | ||||||||||||||||||||||||
Other Comprehensive Income
|
— | — | — | — | 869 | — | — | 869 | ||||||||||||||||||||||||
Balance at December 31, 2012
|
10,965,560 | $ | 110 | $ | 65,038 | $ | (10,899 | ) | $ | 2,436 | (1,828,432 | ) | $ | (7,512 | ) | $ | 49,173 |
Years ended December 31,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
2,942
|
$
|
1,025
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of premises and equipment
|
459
|
371
|
||||||
Amortization of premiums on investment securities, net
|
1,597
|
489
|
||||||
Provision for loan losses
|
—
|
275
|
||||||
(Accretion) amortization of deferred loan fees and costs, net
|
(78
|
)
|
74
|
|||||
Non-cash stock compensation, net of forfeitures
|
552
|
420
|
||||||
Loss on sale of OREO
|
21
|
329
|
||||||
Other, net
|
—
|
(2
|
)
|
|||||
(Increase) decrease in accrued interest and other assets
|
(185
|
)
|
44
|
|||||
Increase (decrease) in accrued interest and other liabilities
|
467
|
(1,777
|
)
|
|||||
Net cash provided by operating activities
|
5,775
|
1,248
|
||||||
Cash flows from investing activities:
|
||||||||
Activity in AFS investment securities:
|
||||||||
Purchases
|
(90,778
|
)
|
(92,294
|
)
|
||||
Maturities and principal reductions
|
39,339
|
21,473
|
||||||
Proceeds from sale of securities
|
—
|
140
|
||||||
Proceeds from sale of OREO
|
29
|
516
|
||||||
Increase in loans, net
|
(32,997
|
)
|
(54,060
|
)
|
||||
Purchase of premises and equipment
|
(384
|
)
|
(478
|
)
|
||||
(Purchase) redemption of FRB stock and FHLB stock
|
(816
|
)
|
365
|
|||||
Net cash used in investing activities
|
(85,607
|
)
|
(124,338
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
84,227
|
74,465
|
||||||
Proceeds from other borrowings
|
4,475
|
25,000
|
||||||
Repayment of other borrowings
|
—
|
(2,000
|
)
|
|||||
Purchase of treasury stock
|
(166
|
)
|
(1,399
|
)
|
||||
Shares surrendered to pay taxes on vesting of restricted stock
|
(75
|
)
|
(62
|
)
|
||||
Net cash provided by financing activities
|
88,461
|
96,004
|
||||||
Increase (decrease) in cash and cash equivalents
|
8,629
|
(27,086
|
)
|
|||||
Cash and cash equivalents, beginning of year
|
41,926
|
69,012
|
||||||
Cash and cash equivalents, end of year
|
$
|
50,555
|
$
|
41,926
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
$
|
936
|
$
|
890
|
||||
Income taxes
|
$
|
151
|
$
|
—
|
||||
Supplemental disclosure of non-cash investing activity:
|
||||||||
Transfer of commercial real estate to OREO
|
$
|
140
|
$
|
—
|
||||
Years ended December 31,
|
||||||||
(dollars in thousands)
|
2012
|
2011
|
||||||
Net income
|
$ | 2,942 | $ | 1,025 | ||||
Average number of common shares outstanding
|
8,520,420 | 8,772,331 | ||||||
Effect of dilution of restricted stock
|
265,144 | 160,462 | ||||||
Average number of common shares outstanding used to calculate diluted earnings per common share
|
8,785,564 | 8,932,793 |
Level 1
|
Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets.
|
|
Level 2
|
Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets.
|
Level 3
|
Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
||||||||||||
At December 31, 2012:
|
||||||||||||||||
Investments — Available for Sale
|
||||||||||||||||
U.S. Gov’t Treasuries
|
$ | 2,136 | $ | 71 | $ | — | $ | 2,207 | ||||||||
Corporate Notes
|
34,534 | 741 | — | 35,275 | ||||||||||||
Residential Mortgage-Backed Securities
|
140,416 | 3,345 | (18 | ) | 143,743 | |||||||||||
Total
|
$ | 177,086 | $ | 4,157 | $ | (18 | ) | $ | 181,225 | |||||||
At December 31, 2011:
|
||||||||||||||||
Investments — Available for Sale
|
||||||||||||||||
U.S. Gov’t Treasuries
|
$ | 2,102 | $ | 37 | $ | — | $ | 2,139 | ||||||||
Corporate Notes
|
6,280 | 43 | (2 | ) | 6,321 | |||||||||||
Residential Mortgage-Backed Securities
|
118,170 | 2,624 | (38 | ) | 120,756 | |||||||||||
Residential Collateralized Mortgage Obligations (“CMOs”)
|
692 | — | (2 | ) | 690 | |||||||||||
Total
|
$ | 127,244 | $ | 2,704 | $ | (42 | ) | $ | 129,906 |
Less than Twelve Months
|
Twelve Months or More
|
|||||||||||||||
(in thousands)
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
At December 31, 2012:
|
||||||||||||||||
Investments-Available for Sale
|
||||||||||||||||
Residential Mortgage-Backed Securities
|
$ | (18 | ) | $ | 7,584 | $ | — | $ | — | |||||||
At December 31, 2011:
|
||||||||||||||||
Investments-Available for Sale
|
||||||||||||||||
Corporate Notes
|
$ | (2 | ) | $ | 2,157 | $ | — | $ | — | |||||||
Residential Mortgage-Backed Securities
|
(38 | ) | 11,188 | |||||||||||||
Residential CMOs
|
(2 | ) | 690 | — | — | |||||||||||
Total
|
$ | (42 | ) | $ | 14,035 | $ | — | $ | — |
December 31,
|
||||||||||||||||
2012 |
2011
|
|||||||||||||||
(dollars in thousands)
|
Amount
Outstanding
|
Percent
of Total
|
Amount
Outstanding
|
Percent
of Total
|
||||||||||||
Commercial (1)
|
$ | 58,769 | 22.0 | % | $ | 70,945 | 30.4 | % | ||||||||
Commercial real estate
|
110,031 | 41.3 | % | 70,269 | 30.2 | % | ||||||||||
Residential
|
53,162 | 19.9 | % | 54,944 | 23.6 | % | ||||||||||
Land and construction
|
19,080 | 7.2 | % | 16,670 | 7.2 | % | ||||||||||
Consumer and other (2)
|
25,584 | 9.6 | % | 20,140 | 8.6 | % | ||||||||||
Loans, gross
|
266,626 | 100.0 | % | 232,968 | 100.0 | % | ||||||||||
Net deferred costs
|
45 | 37 | ||||||||||||||
Less — allowance for loan losses
|
(6,015 | ) | (5,284 | ) | ||||||||||||
Loans, net
|
$ | 260,656 | 227,721 | ) |
(in thousands)
|
Commercial
|
Commercial
Real Estate
|
Residential
|
Land and Construction
|
Consumer
and Other
|
Total
|
||||||||||||||||||
For the Year Ended December 31, 2012:
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,584 | $ | 1,252 | $ | 583 | $ | 516 | $ | 349 | $ | 5,284 | ||||||||||||
Provision for loan losses
|
(305 | ) | 485 | (75 | ) | (100 | ) | (5 | ) | — | ||||||||||||||
Charge-offs
|
(26 | ) | (400 | ) | — | (5 | ) | — | (431 | ) | ||||||||||||||
Recoveries
|
24 | 1,113 | — | — | 25 | 1,162 | ||||||||||||||||||
Ending balance
|
$ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | ||||||||||||
As of December 31, 2012:
|
Ending balance: individually evaluated for impairment
|
$ | 500 | $ | — | $ | — | $ | — | $ | — | $ | 500 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
1,777 | 2,450 | 508 | 411 | 369 | 5,515 | ||||||||||||||||||
Total
|
$ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 |
Loans:
|
||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 1,799 | $ | — | $ | — | $ | — | $ | 345 | $ | 2,144 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
56,970 | 110,031 | 53,162 | 19,080 | 25,239 | 264,482 | ||||||||||||||||||
Total
|
$ | 58,769 | $ | 110,031 | $ | 53,162 | $ | 19,080 | $ | 25,584 | $ | 266,626 |
For the Year Ended December 31, 2011:
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$ | 2,812 | $ | 888 | $ | 213 | $ | 995 | $ | 375 | $ | 5,283 | ||||||||||||
Provision for loan losses
|
(724 | ) | 894 | 370 | (209 | ) | (56 | ) | 275 | |||||||||||||||
Charge-offs
|
(223 | ) | (530 | ) | — | (270 | ) | — | (1,023 | ) | ||||||||||||||
Recoveries
|
719 | — | — | — | 30 | 749 | ||||||||||||||||||
Ending balance
|
$ | 2,584 | $ | 1,252 | $ | 583 | $ | 516 | $ | 349 | $ | 5,284 | ||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 700 | $ | — | $ | — | $ | — | $ | — | $ | 700 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
1,884 | 1,252 | 583 | 516 | 349 | 4,584 | ||||||||||||||||||
Total
|
$ | 2,584 | $ | 1,252 | $ | 583 | $ | 516 | $ | 349 | $ | 5,284 | ||||||||||||
Loans:
|
||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 2,175 | $ | 3,756 | $ | — | $ | 1,330 | $ | 345 | $ | 7,606 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
68,770 | 66,513 | 54,944 | 15,340 | 19,795 | 225,362 | ||||||||||||||||||
Total
|
$ | 70,945 | $ | 70,269 | $ | 54,944 | $ | 16,670 | $ | 20,140 | $ | 232,968 |
(in thousands)
|
30-59
Days Past
Due
|
60-89
Days Past
Due
|
> 90 Days
Past Due
|
Total
Past Due
|
Current
|
Total
|
||||||||||||||||||
As of December 31, 2012:
|
||||||||||||||||||||||||
Commercial
|
$ | 599 | $ | 577 | $ | 812 | $ | 1,988 | $ | 56,781 | $ | 58,769 | ||||||||||||
Commercial real estate
|
4,828 | — | 2,300 | 7,128 | 102,903 | 110,031 | ||||||||||||||||||
Residential
|
— | — | — | — | 53,162 | 53,162 | ||||||||||||||||||
Land and construction
|
— | — | — | — | 19,080 | 19,080 | ||||||||||||||||||
Consumer and other
|
— | — | 345 | 345 | 25,239 | 25,584 | ||||||||||||||||||
Totals
|
$ | 5,427 | $ | 577 | $ | 3,457 | $ | 9,461 | $ | 257,165 | $ | 266,626 | ||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
Commercial
|
$ | 364 | $ | 4 | $ | 683 | $ | 1,051 | $ | 69,894 | $ | 70,945 | ||||||||||||
Commercial real estate
|
— | — | 540 | 540 | 69,729 | 70,269 | ||||||||||||||||||
Residential
|
— | — | — | — | 54,944 | 54,944 | ||||||||||||||||||
Land and construction
|
— | — | — | — | 16,670 | 16,670 | ||||||||||||||||||
Consumer and other
|
50 | — | 345 | 395 | 19,745 | 20,140 | ||||||||||||||||||
Totals
|
$ | 414 | $ | 4 | $ | 1,568 | $ | 1,986 | $ | 230,982 | $ | 232,968 |
December 31,
|
||||||||
(dollars in thousands)
|
2012
|
2011
|
||||||
Non-accrual loans:
|
||||||||
Commercial
|
$ | 1,509 | $ | 2,175 | ||||
Commercial real estate
|
— | 3,756 | ||||||
Land and construction
|
— | 1,330 | ||||||
Consumer and other
|
345 | 345 | ||||||
Total non-accrual loans
|
1,854 | 7,606 | ||||||
OREO
|
90 | — | ||||||
Total non-performing assets
|
$ | 1,944 | $ | 7,606 | ||||
Non-performing assets to gross loans and OREO
|
0.73 | % | 3.26 | % | ||||
Non-performing assets to total assets
|
0.39 | % | 1.88 | % |
(in thousands)
|
Commercial
|
Commercial
Real Estate
|
Residential
|
Land and Construction
|
Consumer
and Other
|
|||||||||||||||
As of December 31, 2012:
|
||||||||||||||||||||
Grade:
|
||||||||||||||||||||
Pass
|
$ | 49,717 | $ | 109,397 | $ | 53,162 | $ | 19,080 | $ | 25,190 | ||||||||||
Special Mention
|
6,609 | — | — | — | — | |||||||||||||||
Substandard
|
2,443 | 634 | — | — | 394 | |||||||||||||||
Total
|
$ | 58,769 | $ | 110,031 | $ | 53,162 | $ | 19,080 | $ | 25,584 | ||||||||||
As of December 31, 2011:
|
||||||||||||||||||||
Grade:
|
||||||||||||||||||||
Pass
|
$ | 64,838 | $ | 65,837 | $ | 54,944 | $ | 12,933 | $ | 19,745 | ||||||||||
Special Mention
|
1,245 | — | — | 2,407 | — | |||||||||||||||
Substandard
|
4,862 | 4,432 | — | 1,330 | 395 | |||||||||||||||
Total
|
$ | 70,945 | $ | 70,269 | $ | 54,944 | $ | 16,670 | $ | 20,140 |
(in thousands)
|
Recorded Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded Investment
|
||||||||||||
As of and for the year ended December 31, 2012:
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Commercial
|
$ | 988 | $ | 1,303 | $ | — | $ | 1,098 | ||||||||
Commercial real estate
|
— | — | — | 3,113 | ||||||||||||
Residential
|
— | — | — | — | ||||||||||||
Land and construction
|
— | — | — | 1,155 | ||||||||||||
Consumer and other
|
345 | 345 | — | 345 | ||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial
|
$ | 811 | $ | 1,990 | $ | 500 | $ | 1,084 | ||||||||
Commercial real estate
|
— | — | — | — | ||||||||||||
Residential
|
— | — | — | — | ||||||||||||
Land and construction
|
— | — | — | — | ||||||||||||
Consumer and other
|
— | — | — | — | ||||||||||||
Totals:
|
||||||||||||||||
Commercial
|
$ | 1,799 | $ | 3,293 | $ | 500 | $ | 2,182 | ||||||||
Commercial real estate
|
$ | — | $ | — | $ | — | $ | 3,113 | ||||||||
Residential
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Land and construction
|
$ | — | $ | — | $ | — | $ | 1,155 | ||||||||
Consumer and other
|
$ | 345 | $ | 345 | $ | — | $ | 345 | ||||||||
As of and for the year ended December 31, 2011:
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Commercial
|
$ | 1,029 | $ | 1,291 | $ | — | $ | 699 | ||||||||
Commercial real estate
|
3,756 | 7,950 | — | 3,892 | ||||||||||||
Residential
|
— | — | — | — | ||||||||||||
Land and construction
|
1,330 | 1,600 | — | 111 | ||||||||||||
Consumer and other
|
345 | 345 | — | 173 | ||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial
|
$ | 1,146 | $ | 2,225 | $ | 700 | $ | 1,288 | ||||||||
Commercial real estate
|
— | — | — | 478 | ||||||||||||
Residential
|
— | — | — | — | ||||||||||||
Land and construction
|
— | — | — | — | ||||||||||||
Consumer and other
|
— | — | — | 172 | ||||||||||||
Totals:
|
||||||||||||||||
Commercial
|
$ | 2,175 | $ | 3,516 | $ | 700 | $ | 1,987 | ||||||||
Commercial real estate
|
$ | 3,756 | $ | 7,950 | $ | — | $ | 4,370 | ||||||||
Residential
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Land and construction
|
$ | 1,330 | $ | 1,600 | $ | — | $ | 111 | ||||||||
Consumer and other
|
$ | 345 | $ | 345 | $ | — | $ | 345 |
For the Years Ended December 31,
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
(dollars in thousands)
|
Number of Loans
|
Pre Modification Outstanding Recorded Investment
|
Post Modification Outstanding Recorded Investment
|
Number of Loans
|
Pre Modification Outstanding Recorded Investment
|
Post Modification Outstanding Recorded Investment
|
||||||||||||||||||
Troubled Debt Restructurings:
|
||||||||||||||||||||||||
Commercial
|
3 | $ | 988 | $ | 988 | 1 | $ | 1,146 | $ | 1,146 |
|
December 31, 2012
|
|||||||
(in thousands)
|
Notional
Amount
|
Estimated
Fair Value
|
||||||
Non-hedging interest rate derivatives:
|
|
|||||||
Commercial loan interest rate swaps
|
$ | 2,800 | $ | 107 | ||||
Commercial loan interest rate swaps
|
$ | (2,800 | ) | $ | (107 | ) |
|
Weighted-Average
|
|||||||
|
Interest
Rate
Paid
|
Interest
Rate
Received
|
||||||
Non-hedging interest rate swaps
|
|
3.41
|
%
|
4.85
|
%
|
|||
Non-hedging interest rate swaps
|
|
4.85
|
%
|
3.41
|
%
|
(in thousands)
|
Year Ended
December 31, 2012
|
|||
Non-hedging interest rate derivatives:
|
||||
Other non-interest income
|
$
|
151
|
||
Other non-interest expense
|
$
|
107
|
For the Years Ended December 31,
|
||||||||
(in thousands)
|
2012
|
2011
|
||||||
Net income
|
$ | 2,942 | $ | 1,025 | ||||
Other comprehensive income:
|
||||||||
Increase in net unrealized gains on investment securities available for sale, net of tax expense of $608 and $509, respectively
|
869 | 730 | ||||||
Reclassification for net gains included in earnings, net of tax expense of none and $1, respectively
|
— | (1 | ) | |||||
Comprehensive income
|
$ | 3,811 | $ | 1,754 |
December 31,
|
||||||||
(in thousands)
|
2012
|
2011
|
||||||
Beginning balance
|
$ | 987 | $ | 1,893 | ||||
Credits granted
|
23 | — | ||||||
Repayments
|
(218 | ) | (906 | ) | ||||
Ending balance
|
$ | 792 | $ | 987 |
(7)
|
Premises and Equipment
|
December31,
|
||||||||
(in thousands)
|
2012
|
2011
|
||||||
Leasehold improvements
|
$ | 973 | $ | 973 | ||||
Furniture & equipment
|
2,191 | 1,907 | ||||||
Software
|
661 | 561 | ||||||
Total
|
3,825 | 3,441 | ||||||
Accumulated depreciation
|
(2,805 | ) | (2,346 | ) | ||||
Premises and equipment, net
|
$ | 1,020 | $ | 1,095 |
December 31, 2012
|
December 31, 2011
|
|||||||||||||||
(dollars in thousands)
|
Amount
|
Percent of Total |
Amount
|
Percent of Total
|
||||||||||||
Non-interest bearing demand deposits
|
$ | 196,026 | 47.0 | % | $ | 122,843 | 37.0 | % | ||||||||
Interest bearing demand deposits
|
23,233 | 5.6 | % | 20,739 | 6.2 | % | ||||||||||
Money market deposits and savings
|
152,094 | 36.5 | % | 142,061 | 42.7 | % | ||||||||||
Certificates of deposit
|
45,328 | 10.9 | % | 46,811 | 14.1 | % | ||||||||||
Total
|
$ | 416,681 | 100.0 | % | $ | 332,454 | 100.0 | % |
(dollars in thousands)
|
Six months
and less
|
Greater than
six months
through one year
|
Greater than
one year
|
|||||||||
0.00% to 0.99%
|
$ | 38,484 | $ | 3,255 | $ | 371 | ||||||
1.00% to 1.99%
|
3,158 | 20 | 40 | |||||||||
Total
|
$ | 41,642 | $ | 3,275 | $ | 411 |
December 31,
|
||||||||||||
Maturity Date
|
Interest Rate
|
2012
|
2011
|
|||||||||
May 23, 2013
|
0.63 | % | 2,500 | 2,500 | ||||||||
May 23, 2014
|
1.14 | % | 2,500 | 2,500 | ||||||||
December 29, 2014
|
0.83 | % | 5,000 | 5,000 | ||||||||
December 30, 2014
|
0.74 | % | 2,500 | 2,500 | ||||||||
May 26, 2015
|
1.65 | % | 2,500 | 2,500 | ||||||||
May 23, 2016
|
2.07 | % | 2,500 | 2,500 | ||||||||
December 29, 2016
|
1.38 | % | 5,000 | 5,000 | ||||||||
December 30, 2016
|
1.25 | % | 2,500 | 2,500 | ||||||||
Total
|
$ | 25,000 | $ | 25,000 |
Years ending December 31,
|
||||
2013
|
$
|
706
|
||
2014
|
644
|
|||
2015
|
655
|
|||
2016
|
675
|
|||
2017
|
696
|
|||
Thereafter
|
5,057
|
|||
Total
|
$
|
8,433
|
Years ending December 31,
|
||||
2013
|
$
|
520
|
||
2014
|
298
|
|||
2015
|
138
|
|||
2016
|
48
|
|||
2017
|
9
|
|||
Total
|
$
|
1,013
|
Fair Value Measurements Using
|
||||||||||||||||
(in thousands)
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
||||||||||||
At December 31, 2012:
|
||||||||||||||||
Investments-Available for Sale
|
||||||||||||||||
U.S. Gov’t treasuries
|
$ | 2,207 | $ | 2,207 | $ | — | $ | — | ||||||||
Corporate Notes
|
35,275 | — | 35,275 | — | ||||||||||||
Residential Mortgage-Backed Securities
|
143,743 | — | 143,743 | — | ||||||||||||
Derivative Assets –
Interest Rate Swaps
|
107 | — | 107 | — | ||||||||||||
Derivative Liabilities –
Interest Rate Swaps
|
107 | — | 107 | — | ||||||||||||
At December 31, 2011:
|
||||||||||||||||
Investments-Available for Sale
|
||||||||||||||||
U.S. Gov’t treasuries
|
$ | 2,139 | $ | 2,139 | $ | — | $ | — | ||||||||
Corporate Notes
|
6,321 | — | 6,321 | — | ||||||||||||
Residential Mortgage-Backed Securities
|
120,756 | — | 120,756 | — | ||||||||||||
Residential CMOs
|
690 | — | 690 | — |
Fair Value Measurements Using
|
||||||||||||||||
(in thousands)
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
||||||||||||
At December 31, 2012:
|
||||||||||||||||
Impaired loans
|
||||||||||||||||
Commercial
|
$ | 889 | $ | — | $ | — | $ | 889 | ||||||||
OREO
|
||||||||||||||||
Land and construction
|
90 | — | — | 90 | ||||||||||||
Total
|
$ | 979 | $ | — | $ | — | $ | 979 | ||||||||
At December 31, 2011:
|
||||||||||||||||
Impaired loans
|
||||||||||||||||
Commercial
|
$ | 1,127 | $ | — | $ | — | $ | 1,127 | ||||||||
Commercial real estate
|
3,756 | — | — | 3,756 | ||||||||||||
Land and construction
|
1,330 | — | — | 1,330 | ||||||||||||
Total
|
$ | 6,213 | $ | — | $ | — | $ | 6,213 |
(dollars in thousands)
|
Carrying
Amount
|
Estimated
Fair Value
|
||||||
As of December 31, 2011
|
||||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 41,926 | $ | 41,926 | ||||
Investment securities
|
129,906 | 129,906 | ||||||
FRB stock
|
1,265 | N/A | ||||||
FHLB stock
|
1,697 | N/A | ||||||
Loans, net
|
227,721 | 228,044 | ||||||
Accrued interest receivable
|
996 | 996 | ||||||
LiabilitiesF
|
||||||||
Non-interest bearing deposits
|
$ | 122,843 | $ | 122,843 | ||||
Interest bearing deposits
|
209,611 | 209,612 | ||||||
Other borrowings
|
25,000 | 25,020 | ||||||
Accrued interest payable
|
127 | 127 |
Years ended December 31,
|
||||||||
(in thousands)
|
2012
|
2011
|
||||||
Loan arrangement fees
|
$ | 1,461 | $ | 676 | ||||
Service charges and other operating income
|
374 | 258 | ||||||
Interest rate swap income
|
151 | — | ||||||
Total non-interest income
|
$ | 1,986 | $ | 934 |
Years ended December 31,
|
||||||||
(in thousands)
|
2012
|
2011
|
||||||
Loan expenses
|
$ | 1,012 | $ | 437 | ||||
Board of Directors fees/non-cash stock expenses
|
261 | 224 | ||||||
OCC assessments
|
120 | 98 | ||||||
Branch/customer expense
|
451 | 393 | ||||||
Interest rate swap expense
|
107 | — | ||||||
Stationery and supplies
|
74 | 64 | ||||||
Insurance
|
76 | 86 | ||||||
Dues, memberships and subscriptions
|
129 | 82 | ||||||
Stockholders expense
|
74 | 58 | ||||||
Telephone
|
76 | 69 | ||||||
Delaware Franchise Tax
|
64 | 105 | ||||||
Other expenses
|
267 | 196 | ||||||
Total other operating expenses
|
$ | 2,711 | $ | 1,812 |
Years Ended December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Restricted Shares
|
Number
of
Shares
|
Weighted Avg Fair Value at
Grant Date
|
Number
of
Shares
|
Weighted Avg
Fair Value at
Grant Date
|
||||||||||||
Beginning balance
|
536,733 | $ | 4.03 | 449,768 | $ | 4.40 | ||||||||||
Granted
|
164,152 | 4.83 | 206,604 | 3.71 | ||||||||||||
Vested
|
(97,744 | ) | 4.23 | (81,392 | ) | 5.16 | ||||||||||
Forfeited and surrendered
|
(39,625 | ) | 4.05 | (38,247 | ) | 4.25 | ||||||||||
Ending balance
|
563,516 | $ | 4.23 | 536,733 | $ | 4.03 |
Shares Reserved
|
Less Shares Previously
Exercised/Vested
|
Less Shares
Outstanding
|
Total Shares
Available for
Future Issuance
|
|||||||||||||
2004 Founder Stock Option Plan
|
150,000 | 8,000 | 133,700 | 8,300 | ||||||||||||
Director and Employee Stock Option Plan
|
1,434,000 | 216,924 | 1,045,673 | 171,403 | ||||||||||||
|
||||||||||||||||
Equity Incentive Plan
|
1,200,000 | 497,507 | 563,516 | 138,977 |
(in thousands)
|
2012
|
2011
|
||||||
Current:
|
||||||||
Federal
|
$ | 84 | $ | 3 | ||||
State
|
27 | 68 | ||||||
Deferred:
|
||||||||
Federal
|
1,169 | 312 | ||||||
State
|
212 | 79 | ||||||
1,492 | 462 | |||||||
Valuation allowance
|
(1,381 | ) | (391 | ) | ||||
Income tax provision
|
$ | 111 | $ | 71 |
2012
|
2011
|
|||||||||||||||
(dollars in thousands)
|
Amount
|
Percent of
Pretax
|
Amount
|
Percent of
Pretax
|
||||||||||||
Federal income tax provision at statutory rate
|
$
|
1,038
|
34
|
%
|
$
|
373
|
34
|
%
|
||||||||
Changes due to:
|
||||||||||||||||
State franchise tax, net of federal income tax
|
218
|
7
|
%
|
78
|
7
|
%
|
||||||||||
Effect of meals and entertainment
|
47
|
2
|
%
|
42
|
4
|
%
|
||||||||||
Alternative minimum tax
|
111
|
4
|
%
|
9
|
1
|
%
|
||||||||||
Valuation allowance
|
(1,381
|
)
|
(45
|
)%
|
(391
|
)
|
(35
|
)%
|
||||||||
Other, net
|
78
|
2
|
%
|
(40
|
)
|
(4
|
)%
|
|||||||||
Total income tax provision
|
$
|
111
|
4
|
%
|
$
|
71
|
7
|
%
|
(in thousands)
|
2012
|
2011
|
||||||
Deferred tax assets:
|
||||||||
Net operating losses
|
$ | 1,883 | $ | 3,502 | ||||
Allowance for loan losses
|
1,254 | 1,477 | ||||||
Equity compensation
|
562 | 603 | ||||||
Depreciation
|
180 | — | ||||||
Alternative minimum tax credits
|
122 | 9 | ||||||
Other
|
425 | 236 | ||||||
Valuation allowance
|
(4,308 | ) | (5,689 | ) | ||||
Total deferred tax assets
|
118 | 138 | ||||||
Deferred tax liabilities:
|
||||||||
Prepaid expenses
|
61 | 81 | ||||||
Federal Home Loan Bank stock dividends
|
57 | 57 | ||||||
Net unrealized gains on investment securities
|
1,704 | 1,095 | ||||||
Total deferred tax liabilities
|
1,822 | 1,233 | ||||||
Net deferred tax liabilities
|
$ | (1,704 | ) | $ | (1,095 | ) |
Company
|
Bank
|
For Capital Adequacy
Purposes
|
For the Bank to be Well
Capitalized Under
Prompt Corrective
Measures
|
|||||||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||||||||
December 31, 2012:
|
||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio
|
$ | 50,823 | 15.65 | % | $ | 49,635 | 15.29 | % | $ | 25,977 | 8.00 | % | $ | 32,470 | 10.00 | % | ||||||||||||||||
Tier 1 Risk-Based Capital Ratio
|
$ | 46,738 | 14.39 | % | $ | 45,549 | 14.03 | % | $ | 12,988 | 4.00 | % | $ | 19,482 | 6.00 | % | ||||||||||||||||
Tier 1 Leverage Ratio
|
$ | 46,738 | 9.47 | % | $ | 45,549 | 9.22 | % | $ | 19,748 | 4.00 | % | $ | 24,696 | 5.00 | % | ||||||||||||||||
December 31, 2011:
|
||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio
|
$ | 46,777 | 17.91 | % | $ | 45,258 | 17.32 | % | $ | 20,899 | 8.00 | % | $ | 26,123 | 10.00 | % | ||||||||||||||||
Tier 1 Risk-Based Capital Ratio
|
$ | 43,484 | 16.64 | % | $ | 41,965 | 16.06 | % | $ | 10,450 | 4.00 | % | $ | 15,674 | 6.00 | % | ||||||||||||||||
Tier 1 Leverage Ratio
|
$ | 43,484 | 10.92 | % | $ | 41,965 | 10.54 | % | $ | 15,935 | 4.00 | % | $ | 19,914 | 5.00 | % |
(in thousands)
|
December 31, 2012
|
December 31, 2011
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 1,206 | $ | 1,577 | ||||
Investment in subsidiary bank
|
47,985 | 43,532 | ||||||
Total Assets
|
$ | 49,191 | $ | 45,109 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Other liabilities
|
$ | 18 | $ | 58 | ||||
Common stock
|
110 | 108 | ||||||
Additional paid-in capital
|
65,038 | 64,488 | ||||||
Accumulated deficit
|
(10,899 | ) | (13,841 | ) | ||||
Accumulated other comprehensive income
|
2,436 | 1,567 | ||||||
Treasury stock at cost
|
(7,512 | ) | (7,271 | ) | ||||
Total Stockholders’ Equity
|
49,173 | 45,051 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 49,191 | $ | 45,109 |
Years ended December 31,
|
||||||||
(in thousands)
|
2012
|
2011
|
||||||
Interest income
|
$ | — | $ | — | ||||
Interest expense
|
— | — | ||||||
Net interest income
|
— | — | ||||||
Compensation and benefits
|
(32 | ) | (59 | ) | ||||
Other operating expenses
|
(58 | ) | (201 | ) | ||||
Loss before taxes
|
(90 | ) | (260 | ) | ||||
Income tax provision
|
— | — | ||||||
Loss before equity in undistributed income of subsidiary bank
|
(90 | ) | (260 | ) | ||||
Equity in undistributed income of subsidiary bank
|
3,032 | 1,285 | ||||||
Net income
|
$ | 2,942 | $ | 1,025 | ||||
Comprehensive income
|
$ | 3,811 | $ | 1,754 |
Years ended December 31,
|
||||||||
(in thousands)
|
2012
|
2011
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 2,942 | $ | 1,025 | ||||
Adjustments to reconcile net income to net cash used in operations:
|
||||||||
Equity in undistributed net income of subsidiary bank
|
(3,032 | ) | (1,285 | ) | ||||
Decrease in other liabilities
|
(40 | ) | (48 | ) | ||||
Net cash used in operating activities
|
(130 | ) | (308 | ) | ||||
Cash flows from financing activities:
|
||||||||
Purchase of treasury stock
|
(166 | ) | (1,399 | ) | ||||
Shares surrendered to pay taxes on vesting of restricted stock
|
(75 | ) | (62 | ) | ||||
Net cash used in financing activities
|
(241 | ) | (1,461 | ) | ||||
Net change in cash and cash equivalents
|
(371 | ) | (1,769 | ) | ||||
Cash and cash equivalents, beginning of year
|
1,577 | 3,346 | ||||||
Cash and cash equivalents, end of year
|
$ | 1,206 | $ | 1,577 |
/s/ Crowe Horwath LLP
|
Sherman Oaks, California
|
March 6, 2013
|
1 Year 1ST Century Bancshares, Chart |
1 Month 1ST Century Bancshares, Chart |
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