









|
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| 1st Constitution Bancorp |
| Selected
Consolidated Financial Data |
| ( Unaudited ) |
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($ in thousands except per share amounts) |
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Three Months Ended |
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Six Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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June 30, |
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2010 |
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2009 |
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2000 |
1999 |
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2010 |
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2009 |
| Income
Statement Data : |
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Interest income |
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$7,076 |
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$7,591 |
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$5,850 |
$4,846 |
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$13,926 |
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$15,006 |
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Interest expense |
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2,227 |
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3,072 |
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2,488 |
2,174 |
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4,638 |
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6,287 |
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Net interest income |
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4,849 |
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4,519 |
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3,361 |
2,672 |
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9,288 |
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8,719 |
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Provision for loan losses |
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550 |
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325 |
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90 |
105 |
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850 |
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788 |
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Net interest income after prov.for loan losses |
4,299 |
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4,194 |
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3,271 |
2,567 |
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8,438 |
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7,931 |
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Non-interest income |
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1,007 |
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953 |
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558 |
816 |
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1,956 |
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1,800 |
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Non-interest expenses |
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4,279 |
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4,801 |
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2,616 |
2,302 |
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8,413 |
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8,822 |
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Income before income taxes |
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1,027 |
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346 |
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1,212 |
1,082 |
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1,981 |
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909 |
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Income tax expense |
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231 |
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(189) |
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444 |
399 |
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486 |
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(102) |
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Net income |
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796 |
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535 |
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$774 |
$683 |
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1,495 |
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1,011 |
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Preferred stock dividends and accretion |
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177 |
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177 |
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354 |
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365 |
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Net income available to common shareholders |
$619 |
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$358 |
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$1,141 |
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$646 |
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| Per Common
Share Data : |
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Earnings per common share - Basic |
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$0.14 |
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$0.08 |
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$0.61 |
$0.54 |
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$0.25 |
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$0.15 |
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Earnings per common share - Diluted |
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$0.14 |
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$0.08 |
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$0.59 |
$0.53 |
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$0.25 |
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$0.15 |
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Tangible book value per common share |
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$10.41 |
$9.47 |
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$10.54 |
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$9.96 |
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Average common shares outstanding : |
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Basic |
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4,526,811 |
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4,467,766 |
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4,528,001 |
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4,448,805 |
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Diluted |
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4,550,545 |
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4,471,357 |
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4,547,109 |
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4,452,102 |
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| Performance
Ratios : |
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Return on average assets |
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0.49% |
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0.35% |
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1.03% |
1.01% |
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0.46% |
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0.35% |
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Return on average equity |
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5.42% |
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3.81% |
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5.18% |
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3.65% |
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Net interest margin (tax-equivalent basis) |
3.17% |
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3.40% |
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4.81% |
4.21% |
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3.05% |
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3.34% |
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Efficiency ratio |
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73.1% |
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87.7% |
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63.8% |
69.1% |
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74.8% |
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83.9% |
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June 30, |
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December 31, |
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2010 |
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2009 |
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| Balance Sheet
Data: |
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Total Assets |
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$163,141 |
$138,247 |
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$714,798 |
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$677,996 |
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Investment securities |
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103,689 |
87,440 |
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227,144 |
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227,728 |
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Loans, including loans held for sale |
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(1,025) |
(872) |
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448,138 |
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401,461 |
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Allowance for loan losses |
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39,330 |
33,564 |
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(4,938) |
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(4,505) |
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Securities held to maturity |
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7,740 |
8,346 |
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35,400 |
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16,296 |
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Goodwill and other intangible assets |
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127,997 |
111,193 |
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628 |
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646 |
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Deposits |
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13,271 |
12,074 |
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533,470 |
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572,155 |
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Shareholders' equity |
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59,924 |
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57,401 |
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| Asset Quality
Data : |
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Loans
past due over 90 days and still accruing |
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$0 |
$0 |
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$4 |
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$146 |
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Nonaccrual loans |
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$61 |
$512 |
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7,303 |
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4,161 |
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OREO
property |
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1,714 |
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1,363 |
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Total non-performing assets |
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$6 |
$9 |
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9,021 |
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5,670 |
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Net charge-offs for the six-month period and
year, respectively |
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417 |
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1,732 |
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Allowance for loan losses to total loans |
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0.99% |
1.00% |
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1.14% |
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1.19% |
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Nonperforming loans to total loans |
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1.69% |
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1.13% |
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Nonperforming assets to total assets |
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1.26% |
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0.84% |
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| Capital Ratios
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1st Constitution Bancorp |
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Tier 1
capital to average assets |
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11.92% |
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10.99% |
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Tier 1
capital to risk weighted assets |
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15.29% |
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16.25% |
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Total
capital to risk weighted assets |
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16.27% |
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17.23% |
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1st Constitution Bank |
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Tier 1
capital to average assets |
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11.72% |
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10.78% |
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Tier 1
capital to risk weighted assets |
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14.99% |
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15.91% |
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Total
capital to risk weighted assets |
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15.96% |
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16.90% |
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| COMPARATIVE CONSOLIDATED |
| STATEMENTS OF CONDITION (unaudited) |
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June 30, |
| ASSETS |
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2009 |
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2008 |
| Cash and due from banks |
$48,079,083 |
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$18,481,595 |
| Federal funds sold / Short term investments |
11,375 |
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11,222 |
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Total cash and cash equivalents |
48,090,458 |
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18,492,817 |
| Investment securities |
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| Available for sale |
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89,129,081 |
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72,340,516 |
| Held to maturity |
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35,400,226 |
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16,295,970 |
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Total securities |
124,529,307 |
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88,636,486 |
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| Loans |
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428,662,908 |
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377,361,701 |
| Less - Allowance for loan losses |
(4,208,733) |
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(3,635,766) |
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Net loans |
424,454,175 |
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373,725,935 |
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| Premises and equipment, net |
2,118,608 |
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2,568,475 |
| Other assets |
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19,252,185 |
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20,621,582 |
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Total assets |
$618,444,733 |
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$504,045,295 |
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| LIABILITIES |
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| Non-interest-bearing deposits |
$86,778,192 |
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$87,632,653 |
| Interest-bearing deposits |
418,983,332 |
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308,771,142 |
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Total deposits |
505,761,524 |
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396,403,795 |
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| Securities sold under agreements to repurchase |
0 |
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0 |
| Borrowings |
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30,500,000 |
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43,600,000 |
| Redeemable subordinated debentures |
18,557,000 |
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18,557,000 |
| Accrued expenses and other liabilities |
6,922,458 |
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3,808,982 |
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Total liabilities |
561,740,982 |
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462,369,777 |
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| SHAREHOLDERS' EQUITY |
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| Preferred stock, no par value; 5,000,000 shares authorized of which |
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| 12,000 shares of Series B, $1,000 liquidation preference, 5% |
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| cumulative increasing to 9% cumulative on February 15, 2014, |
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| were issued and outstanding |
11,419,295 |
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| Common stock, no par value; 30,000,000 shares |
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| authorized; 4,273,314 and 4,191,955 shares issued and |
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| 4,264,396 and 4,191,234 shares outstanding |
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| as of June 30, 2009 and 2008, respectively |
35,426,806 |
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32,566,923 |
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| Retained earnings |
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10,299,588 |
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10,200,292 |
| Treasury stock, at cost :8,918 shares in 2009 and 721 shares in 2008 |
(62,252) |
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(10,999) |
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| Accumulated other comprehensive loss |
(379,686) |
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(1,080,698) |
| Total shareholders' equity |
56,703,751 |
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41,675,518 |
| Total liabilities and shareholders' equity |
$618,444,733 |
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$504,045,295 |
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| COMPARATIVE CONSOLIDATED |
| STATEMENTS OF INCOME (unaudited) |
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
| INTEREST INCOME |
2009 |
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2008 |
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2009 |
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2008 |
| Loans, including fees |
$6,261,650 |
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$6,127,318 |
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$12,301,251 |
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$12,136,418 |
| Securities |
1,305,618 |
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1,055,820 |
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2,671,828 |
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2,176,820 |
| Federal funds sold |
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| and short term investments |
24,071 |
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8,992 |
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32,665 |
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45,948 |
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Total interest income |
7,591,339 |
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7,192,130 |
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15,005,744 |
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14,359,186 |
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| INTEREST EXPENSE |
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| Deposits |
2,443,432 |
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2,494,237 |
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5,028,383 |
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5,032,330 |
| Securities sold under agreements |
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| to repurchase and other borrowed funds |
361,967 |
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402,929 |
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725,197 |
|
778,956 |
| Redeemable subordinated debentures |
266,740 |
|
284,191 |
|
532,975 |
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533,997 |
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Total interest expense |
3,072,139 |
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3,181,357 |
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6,286,555 |
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6,345,283 |
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Net interest income |
4,519,200 |
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4,010,773 |
|
8,719,189 |
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8,013,903 |
| Provision for loan losses |
325,000 |
|
195,000 |
|
788,000 |
|
360,000 |
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Net interest income after provision for loan losses |
4,194,200 |
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3,815,773 |
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7,931,189 |
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7,653,903 |
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| NON-INTEREST INCOME |
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| Service charges on deposit accounts |
216,235 |
|
197,556 |
|
454,754 |
|
383,444 |
| Gain on sale of securities |
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| Loss on sales of securities |
0 |
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0 |
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0 |
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0 |
| Gain on sales of loans |
340,993 |
|
285,559 |
|
613,186 |
|
595,603 |
| Income on Bank-owned life insurance |
102,305 |
|
92,818 |
|
193,327 |
|
184,645 |
| Other income |
293,391 |
|
228,971 |
|
538,709 |
|
427,589 |
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Total non-interest income |
952,924 |
|
804,904 |
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1,799,976 |
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1,591,281 |
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| NON-INTEREST EXPENSES |
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| Salaries and employee benefits |
2,294,066 |
|
2,073,066 |
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4,521,395 |
|
4,051,127 |
| Occupancy expense |
443,007 |
|
432,423 |
|
895,672 |
|
864,438 |
| Other operating expenses |
2,064,616 |
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1,111,653 |
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3,405,235 |
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2,115,927 |
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Total non-interest expenses |
4,801,689 |
|
3,617,142 |
|
8,822,302 |
|
7,031,492 |
| Income before income taxes |
|
345,435 |
|
1,003,535 |
|
908,863 |
|
2,213,692 |
| Income taxes |
(189,175) |
|
285,689 |
|
(102,437) |
|
693,649 |
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Net income |
$534,610 |
|
$717,846 |
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$1,011,300 |
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$1,520,043 |
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| Net Income Per Share - Basic |
$0.08 |
|
$0.17 |
|
$0.15 |
|
$0.36 |
| Net Income Per Share - Diluted |
$0.08 |
|
$0.17 |
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$0.15 |
|
$0.36 |
| Book Value Per Share |
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$10.46 |
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$9.78 |
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