x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the fiscal year ended December 31, 2008
|
|
OR
|
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the transition period from
to
|
Maryland
|
35-2085640
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
110
E. Charles Street, Muncie, Indiana
|
47305-2419
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
Common
Stock, par value $.01 per share
|
The
NASDAQ Stock Market LLC
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
|
Smaller
reporting company filer x
|
|
(Do
not check if smaller
|
|||
reporting company)
|
December
31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Real
Estate Loans:
|
||||||||||||||||||||||||||||||||||||||||
One-
to four-family
|
$ | 521,364 |
(1)
|
46.11 | % | $ | 431,018 |
(2)
|
53.02 | % | $ | 433,123 |
(3)
|
53.01 | % | $ | 451,914 |
(4)
|
54.00 | % | $ | 385,678 |
(5)
|
52.96 | % | |||||||||||||||
Multi-family
|
2,698 | 0.24 | 3,929 | 0.48 | 5,073 | 0.62 | 5,505 | 0.66 | 4,657 | .64 | ||||||||||||||||||||||||||||||
Commercial
|
250,693 | 22.17 | 82,116 | 10.10 | 73,912 | 9.05 | 77,270 | 9.23 | 68,067 | 9.35 | ||||||||||||||||||||||||||||||
Construction
and development
|
12,232 | 1.08 | 13,560 | 1.67 | 14,451 | 1.77 | 22,938 | 2.74 | 20,745 | 2.85 | ||||||||||||||||||||||||||||||
Total
real estate loans
|
$ | 786,987 | 69.60 | $ | 530,623 | 65.28 | $ | 526,559 | 64.45 | 557,627 | 66.63 | 479,147 | 65.80 | |||||||||||||||||||||||||||
Other
Loans:
|
||||||||||||||||||||||||||||||||||||||||
Consumer
Loans:
|
||||||||||||||||||||||||||||||||||||||||
Automobile
|
$ | 22,715 | 2.01 | $ | 22,917 | 2.82 | $ | 31,336 | 3.84 | 39,802 | 4.76 | 39,475 | 5.42 | |||||||||||||||||||||||||||
Home
equity
|
66,460 | 5.88 | 27,232 | 3.35 | 30,051 | 3.68 | 31,962 | 3.82 | 29,464 | 4.05 | ||||||||||||||||||||||||||||||
Home
improvement
|
45,339 | 4.01 | 45,156 | 5.55 | 38,546 | 4.72 | 31,933 | 3.82 | 23,289 | 3.20 | ||||||||||||||||||||||||||||||
Manufactured
housing
|
727 | 0.06 | 992 | 0.12 | 1,422 | 0.17 | 2,106 | 0.25 | 2,879 | .40 | ||||||||||||||||||||||||||||||
R.V.
|
79,884 | 7.07 | 77,805 | 9.57 | 71,321 | 8.73 | 64,222 | 7.67 | 58,643 | 8.05 | ||||||||||||||||||||||||||||||
Boat
|
46,928 | 4.15 | 47,816 | 5.88 | 46,311 | 5.67 | 40,631 | 4.85 | 38,382 | 5.27 | ||||||||||||||||||||||||||||||
Other
|
6,339 | 0.56 | 3,593 | 0.44 | 3,986 | .48 | 4,305 | .51 | 3,325 | .46 | ||||||||||||||||||||||||||||||
Total
consumer loans
|
268,392 | 23.74 | 225,511 | 27.74 | 222,973 | 27.29 | 214,961 | 25.68 | 195,457 | 26.84 | ||||||||||||||||||||||||||||||
Commercial
business loans
|
75,290 | 6.66 | 56,764 | 6.98 | 67,476 | 8.26 | 64,353 | 7.69 | 53,620 | 7.36 | ||||||||||||||||||||||||||||||
Total
other loans
|
343,682 | 30.40 | 282,275 | 34.72 | 290,449 | 35.55 | 279,314 | 33.37 | 249,077 | 34.20 | ||||||||||||||||||||||||||||||
Total
loans receivable, gross
|
1,130,669 |
(1)
|
100.00 | % | 812,898 |
(2)
|
100.00 | % | 817,008 |
(3)
|
100.00 | % | 836,941 |
(4)
|
100.00 | % | 728,224 |
(5)
|
100.00 | % | ||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Undisbursed
portion of loans
|
4,372 | 3,984 | 5,520 | 7,724 | 9,237 | |||||||||||||||||||||||||||||||||||
Deferred
loan fees and costs
|
(3,484 | ) | (3,519 | ) | (3,623 | ) | (3,453 | ) | (3,814 | ) | ||||||||||||||||||||||||||||||
Allowance
for losses
|
15,107 | 8,352 | 8,156 | 8,100 | 6,867 | |||||||||||||||||||||||||||||||||||
Total
loans receivable, net
|
$ | 1,114,674 | $ | 804,081 | $ | 806,955 | $ | 824,570 | $ | 715,934 |
December
31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Fixed-Rate
Loans:
|
||||||||||||||||||||||||||||||||||||||||
Real
estate:
|
||||||||||||||||||||||||||||||||||||||||
One-
to four-family
|
$ | 261,969 |
(1)
|
23.17 | % | $ | 254,235 |
(2)
|
31.28 | % | $ | 271,405 |
(3)
|
33.22 | % | $ | 305,911 |
(4)
|
36.55 | % | $ | 262,716 |
(5)
|
38.08 | % | |||||||||||||||
Multi-family
|
2,401 | 0.21 | 3,610 | 0.44 | 4,488 | 0.55 | 4,587 | 0.55 | 3,427 | .47 | ||||||||||||||||||||||||||||||
Commercial
|
115,922 | 10.25 | 17,281 | 2.13 | 9,408 | 1.15 | 9,375 | 1.12 | 6,918 | .95 | ||||||||||||||||||||||||||||||
Construction
and development
|
9,724 | 0.86 | 10,197 | 1.25 | 8,310 | 1.02 | 12,690 | 1.52 | 15,191 | 2.09 | ||||||||||||||||||||||||||||||
Total
real estate loans
|
390,016 | 34.49 | 285,323 | 35.10 | 293,611 | 35.94 | 332,563 | 39.74 | 288,252 | 39.58 | ||||||||||||||||||||||||||||||
Consumer
|
229,326 | 20.28 | 198,068 | 24.37 | 192,715 | 23.59 | 182,784 | 21.84 | 165,895 | 22.78 | ||||||||||||||||||||||||||||||
Commercial
business
|
37,865 | 3.35 | 19,842 | 2.44 | 27,093 | 3.32 | 20,000 | 2.39 | 16,347 | 2.24 | ||||||||||||||||||||||||||||||
Total
fixed-rate loans
|
657,207 | 58.12 | 503,233 | 61.91 | 513,419 | 62.85 | 535,347 | 63.97 | 470,494 | 64.61 | ||||||||||||||||||||||||||||||
Adjustable-Rate
Loans:
|
||||||||||||||||||||||||||||||||||||||||
Real
estate:
|
||||||||||||||||||||||||||||||||||||||||
One-
to four-family
|
259,395 | 22.94 | 176,783 | 21.75 | 161,718 | 19.79 | 146,003 | 17.44 | 122,962 | 16.89 | ||||||||||||||||||||||||||||||
Multi-family
|
297 | 0.03 | 319 | 0.04 | 585 | .07 | 918 | 0.11 | 1,230 | .17 | ||||||||||||||||||||||||||||||
Commercial
|
134,771 | 11.92 | 64,835 | 7.98 | 64,504 | 7.90 | 67,895 | 8.11 | 61,149 | 8.40 | ||||||||||||||||||||||||||||||
Construction
and development
|
2,508 | 0.22 | 3,363 | 0.41 | 6,141 | .75 | 10,248 | 1.22 | 5,554 | .76 | ||||||||||||||||||||||||||||||
Total
real estate loans
|
396,971 | 35.11 | 245,300 | 30.18 | 232,948 | 28.51 | 225,064 | 26.88 | 190,895 | 26.21 | ||||||||||||||||||||||||||||||
Consumer
|
39,066 | 3.46 | 27,443 | 3.38 | 30,258 | 3.70 | 32,177 | 3.85 | 29,562 | 4.06 | ||||||||||||||||||||||||||||||
Commercial
business
|
37,425 | 3.31 | 36,922 | 4.53 | 40,383 | 4.94 | 44,353 | 5.30 | 37,273 | 5.12 | ||||||||||||||||||||||||||||||
Total
adjustable-rate loans
|
473,462 | 41.88 | 309,665 | 38.09 | 303,589 | 37.15 | 301,594 | 36.03 | 257,730 | 35.39 | ||||||||||||||||||||||||||||||
Total
loans
|
1,130,669 |
(1)
|
100.00 | % | 812,898 |
(2)
|
100.00 | % | 817,008 |
(3)
|
100.00 | % | 836,941 |
(4)
|
100.00 | % | 728,224 |
(5)
|
100.00 | % | ||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Undisbursed
portion of loans
|
4,372 | 3,984 | 5,520 | 7,724 | 9,237 | |||||||||||||||||||||||||||||||||||
Deferred
loan fees and costs
|
(3,484 | ) | (3,519 | ) | (3,623 | ) | (3,453 | ) | (3,814 | ) | ||||||||||||||||||||||||||||||
Allowance
for loan losses
|
15,107 | 8,352 | 8,156 | 8,100 | 6,867 | |||||||||||||||||||||||||||||||||||
Total
loans receivable, net
|
$ | 1,114,674 | $ | 804,081 | $ | 806,955 | $ | 824,570 | $ | 715,934 |
Real
Estate
|
||||||||||||||||||||||||||||||||||||||||||||||||
One- to
Four-Family(1)
|
Multi-family
and
Commercial
|
Construction
and Development(2)
|
Consumer
|
Commercial
Business
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
Amount
|
Weighted
Average
Rate
|
|||||||||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Due
During
Years
Ending
December
31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
2009(3)
|
$ | 385 | 7.02 | % | $ | 69,196 | 5.28 | % | $ | 1,326 | 6.34 | % | $ | 8,492 | 6.74 | % | $ | 35,314 | 3.34 | % | $ | 114,713 | 4.81 | % | ||||||||||||||||||||||||
2010
|
401 | 6.38 | 16,578 | 5.85 | 438 | 6.37 | 10,804 | 6.80 | 2,701 | 6.37 | 30,922 | 6.24 | ||||||||||||||||||||||||||||||||||||
2011
|
532 | 6.02 | 26,635 | 6.38 | 274 | 7.34 | 17,780 | 7.23 | 7,209 | 5.34 | 52,430 | 6.53 | ||||||||||||||||||||||||||||||||||||
2012
and 2013
|
10,706 | 5.88 | 46,989 | 6.32 | 496 | 7.97 | 38,110 | 7.08 | 20,507 | 6.73 | 116,808 | 6.61 | ||||||||||||||||||||||||||||||||||||
2014
to 2015
|
9,351 | 6.11 | 21,562 | 6.76 | 104 | 8.62 | 18,685 | 7.17 | 4,798 | 6.57 | 54,500 | 6.78 | ||||||||||||||||||||||||||||||||||||
2016
to 2030
|
151,119 | 5.84 | 69,821 | 6.68 | 1,248 | 6.06 | 173,986 | 7.02 | 4,761 | 6.26 | 400,935 | 6.50 | ||||||||||||||||||||||||||||||||||||
2031
and following
|
347,329 | 5.90 | 2,610 | 4.95 | 8,346 | 6.13 | 535 | 5.97 | — | — | 358,820 | 5.90 | ||||||||||||||||||||||||||||||||||||
Total
|
$ | 519,823 | 5.89 | % | $ | 253,391 | 6.13 | % | $ | 12,232 | 6.28 | % | $ | 268,392 | 7.03 | % | $ | 75,290 | 4.95 | % | $ | 1,129,128 | 6.16 | % |
Year
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(In
thousands)
|
||||||||||||
Originations by type:
|
||||||||||||
Adjustable
rate:
|
||||||||||||
Real
estate - one- to four-family
|
$ | 33,083 | $ | 28,275 | $ | 40,838 | ||||||
- multi-family
|
1,323 | — | 96 | |||||||||
- commercial
|
7,132 | 11,557 | 7,398 | |||||||||
- construction or
development
|
5,617 | 4,894 | 9,396 | |||||||||
Non-real
estate - consumer
|
43 | 56 | 148 | |||||||||
- commercial
business
|
2,061 | 2,026 | 4,507 | |||||||||
Total
adjustable-rate
|
49,259 | 46,808 | 62,383 | |||||||||
Fixed
rate:
|
||||||||||||
Real
estate - one- to four-family
|
78,040 | 58,338 | 59,794 | |||||||||
- multi-family
|
2,052 | — | — | |||||||||
- commercial
|
12,737 | 2,171 | 351 | |||||||||
- construction or
development
|
9,171 | 11,687 | 9,623 | |||||||||
Non-real
estate - consumer
|
42,465 | 44,423 | 56,086 | |||||||||
- commercial
business
|
5,409 | 3,153 | 8,017 | |||||||||
Total
fixed-rate
|
149,874 | 119,772 | 133,871 | |||||||||
Total
loans originated
|
199,133 | 166,580 | 196,254 | |||||||||
Purchases:(1)
|
||||||||||||
Real
estate - one- to four-family
|
213,441 | 16,058 | 5,447 | |||||||||
- commercial
|
93,479 | — | — | |||||||||
- construction or
development
|
1,770 | — | — | |||||||||
Non-real
estate - consumer
|
9,677 | — | 1,242 | |||||||||
- commercial
business
|
75,496 | — | — | |||||||||
Total
loans purchased
|
393,863 |
(2)
|
16,058 | 6,689 | ||||||||
Sales and Repayments:
|
||||||||||||
Sales:
|
||||||||||||
Real
estate - one- to four-family
|
92,914 | 24,113 | 50,853 | |||||||||
Total
loans sold
|
92,914 | 24,113 | 50,853 | |||||||||
Principal
repayments
|
179,187 | 162,159 | 174,743 | |||||||||
Total
reductions
|
272,101 | 186,272 | 225,596 | |||||||||
Increase
(decrease) in other items, net
|
(3,124 | ) | (476 | ) | 2,720 | |||||||
Net
increase (decreases)
|
$ | 317,771 | $ | (4,110 | ) | $ | (19,933 | ) |
Loans
Delinquent For:
|
||||||||||||
60-89
Days
|
||||||||||||
Number
|
Amount
|
Percent
of
Loan
Category
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Real
Estate:
|
||||||||||||
One-
to four-family
|
63 | $ | 4,848 | .93 | % | |||||||
Multi-family
|
1 | 95 | 3.50 | |||||||||
Commercial
|
10 | 2,096 | .84 | |||||||||
Construction
and development
|
— | — | — | |||||||||
Consumer
|
133 | 1,764 | .66 | |||||||||
Commercial
business
|
3 | 328 | .44 | |||||||||
Total
|
210 | $ | 9,131 | .81 | % |
December
31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Non-accruing
loans:
|
||||||||||||||||||||
One-
to four-family
|
$ | 7,917 | $ | 2,997 | $ | 2,762 | $ | 2,967 | $ | 1,326 | ||||||||||
Multi-family
|
— | — | — | — | — | |||||||||||||||
Commercial
real estate
|
7,723 | 2,656 | 356 | 569 | 370 | |||||||||||||||
Construction
and development
|
— | — | — | — | — | |||||||||||||||
Consumer
|
1,851 | 1,294 | 983 | 628 | 498 | |||||||||||||||
Commercial
business
|
2,507 | 2,002 | 1,468 | 1,257 | 1,791 | |||||||||||||||
Total
|
19,998 | 8,949 | 5,569 | 5,421 | 3,985 | |||||||||||||||
Accruing
loans delinquent 90 days or more:
|
||||||||||||||||||||
One-
to four-family
|
1,284 | — | — | 67 | — | |||||||||||||||
Multi-family
|
— | — | — | — | — | |||||||||||||||
Commercial
real estate
|
189 | 1,421 | — | 1,858 | — | |||||||||||||||
Construction
and development
|
— | — | — | — | — | |||||||||||||||
Consumer
|
— | — | — | 35 | 119 | |||||||||||||||
Commercial
business
|
— | — | — | — | — | |||||||||||||||
Total
|
1,473 | 1,421 | — | 1,960 | 119 | |||||||||||||||
Total
nonperforming loans
|
21,471 | 10,370 | 5,569 | 7,381 | 4,104 | |||||||||||||||
Restructured
loans
|
293 | 107 | 111 | 116 | 120 | |||||||||||||||
Foreclosed
assets:
|
||||||||||||||||||||
One-
to four-family
|
1,786 | 927 | 947 | 912 | 285 | |||||||||||||||
Multi-family
|
— | — | — | — | — | |||||||||||||||
Commercial
real estate
|
1,193 | 437 | 326 | 595 | 55 | |||||||||||||||
Construction
and development
|
— | — | — | — | — | |||||||||||||||
Consumer
|
1,861 | 1,137 | 1,322 | 978 | 894 | |||||||||||||||
Commercial
business
|
— | — | — | — | — | |||||||||||||||
Total
|
4,840 | 2,501 | 2,595 | 2,485 | 1,234 | |||||||||||||||
Total
non-performing assets
|
$ | 26,604 | $ | 12,978 | $ | 8,275 | $ | 9,982 | $ | 5,458 | ||||||||||
Total
as a percentage of total assets
|
1.92 | % | 1.35 | % | 0.86 | % | 1.03 | % | 0.65 | % |
Year Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Balance
at beginning of period
|
$ | 8,352 | $ | 8,156 | $ | 8,100 | $ | 6,867 | $ | 6,779 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
One-
to four-family
|
480 | 645 | 526 | 303 | 249 | |||||||||||||||
Multi-family
|
— | — | — | — | — | |||||||||||||||
Commercial
real estate
|
1,548 | 44 | 102 | 6 | 34 | |||||||||||||||
Construction
and development
|
— | — | — | — | — | |||||||||||||||
Consumer
|
2,174 | 1,731 | 1,288 | 1,276 | 1,093 | |||||||||||||||
Commercial
business
|
230 | 303 | 387 | 954 | 616 | |||||||||||||||
4,432 | 2,723 | 2,303 | 2,539 | 1,992 | ||||||||||||||||
Recoveries:
|
||||||||||||||||||||
One-
to four-family
|
42 | 121 | 81 | 22 | 21 | |||||||||||||||
Multi-family
|
— | — | — | — | — | |||||||||||||||
Commercial
real estate
|
558 | — | — | 120 | 326 | |||||||||||||||
Construction
and development
|
— | — | — | — | — | |||||||||||||||
Consumer
|
556 | 357 | 199 | 194 | 176 | |||||||||||||||
Commercial
business
|
57 | 201 | 11 | 15 | — | |||||||||||||||
1,213 | 679 | 291 | 351 | 523 | ||||||||||||||||
Net
charge-offs
|
3,219 | 2,044 | 2,012 | 2,188 | 1,469 | |||||||||||||||
Amount
acquired in acquisitions
|
2,954 | — | — | 1,646 | — | |||||||||||||||
Provisions
charged to operations
|
7,020 | 2,240 | 2,068 | 1,775 | 1,557 | |||||||||||||||
Balance
at end of period
|
$ | 15,107 | $ | 8,352 | $ | 8,156 | $ | 8,100 | $ | 6,867 | ||||||||||
Ratio
of net charge-offs during the period to
average loans outstanding during the period
|
0.34 | % | 0.25 | % | 0.24 | % | 0.29 | % | 0.21 | % | ||||||||||
Allowance
as a percentage of non-performing
loans
|
69.41 | % | 79.72 | % | 143.59 | % | 109.74 | % | 167.32 | % | ||||||||||
Allowance
as a percentage of total loans (end
of period)
|
1.34 | % | 1.03 | % | 1.00 | % | 0.98 | % | 0.95 | % |
December
31,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in
thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount
of
Loan
Loss
Allowance
|
Loan
Amounts
by
Category
|
Percent
of
Loans
in
Each
Category
to
Total
Loans
|
Amount
of
Loan
Loss
Allowance
|
Loan
Amounts
by
Category
|
Percent
of
Loans
in
Each
Category
to
Total
Loans
|
Amount
of
Loan
Loss
Allowance
|
Loan
Amounts
by
Category
|
Percent
of
Loans
in
Each
Category
to
Total
Loans
|
Amount
of
Loan
Loss
Allowance
|
Loan
Amounts
by
Category
|
Percent
of
Loans
in
Each
Category
to
Total
Loans
|
Amount
of
Loan
Loss
Allowance
|
Loan
Amounts
by
Category
|
Percent
of
Loans
in
Each
Category
to
Total
Loans
|
||||||||||||||||||||||||||||||||||||||||||||||
One-
to four-family
|
$ | 1,997 | $ | 521,364 |
1)
|
46.11 | % | $ | 1,200 | 431,018 |
(2)
|
53.02 | % | $ | 1,219 | 433,123 |
(3)
|
53.01 | % | $ | 1,267 | $ | 451,914 |
(4)
|
54.00 | % | $ | 1,013 | 385,678 |
(5)
|
52.96 | % | ||||||||||||||||||||||||||||
Multi-family
|
73 | 2,698 | .24 | 20 | 3,929 | 0.48 | 61 | 5,073 | 0.62 | 68 | 5,505 | .66 | 62 | 4,657 | .64 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial
real estate
|
6,869 | 250,693 | 22.17 | 2,158 | 82,116 | 10.10 | 2,000 | 73,912 | 9.05 | 2,039 | 77,270 | 9.23 | 1,479 | 68,067 | 9.35 | |||||||||||||||||||||||||||||||||||||||||||||
Construction
or development
|
12 | 12,232 | 1.08 | 14 | 13,560 | 1.67 | 72 | 14,451 | 1.77 | 115 | 22,938 | 2.74 | 104 | 20,745 | 2.85 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer
|
3,990 | 268,392 | 23.74 | 3,885 | 225,511 | 27.74 | 3,801 | 222,973 | 27.29 | 3,605 | 214,961 | 25.68 | 3,155 | 195,457 | 26.84 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial
business
|
2,166 | 75,290 | 6.66 | 1,075 | 56,764 | 6.99 | 1,003 | 67,476 | 8.26 | 1,006 | 64,353 | 7.69 | 1,054 | 53,620 | 7.36 | |||||||||||||||||||||||||||||||||||||||||||||
Unallocated
|
— | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total
|
$ | 15,107 | $ | 1,130,669 | 100.00 | % | $ | 8,352 | $ | 812,898 | 100.00 | % | $ | 8,156 | $ | 817,008 | 100.00 | % | $ | 8,100 | $ | 836,941 | 100.00 | % | $ | 6,867 | $ | 728,224 | 100.00 | % |
For
the Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(In
thousands)
|
||||||||||||
Investments
in Pedcor low income
housing projects
|
$ | 4,561 | $ | 3,246 | $ | 3,461 | ||||||
Equity
in losses, net of income tax effect
|
$ | (104 | ) | $ | (66 | ) | $ | (109 | ) | |||
Tax
credit
|
1,214 | 811 | 801 | |||||||||
Increase
in after-tax income from
Pedcor Investments
|
$ | 1,110 | $ | 745 | $ | 692 |
December
31,
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Investment securities
available-for-sale:
|
||||||||||||||||||||||||
Mutual
funds
|
$ | 1,635 | $ | 1,497 | $ | 16,382 | $ | 15,914 | $ | 16,206 | $ | 15,817 | ||||||||||||
Government
sponsored entities
|
570 | 572 | 608 | 605 | 1,117 | 1,099 | ||||||||||||||||||
Mortgage-backed
securities
|
14,771 | 15,163 | 2,310 | 2,352 | 3,146 | 3,156 | ||||||||||||||||||
Collateralized
mortgage obligations
|
43,821 | 43,639 | 8,327 | 8,322 | 6,860 | 6,762 | ||||||||||||||||||
Corporate
obligations
|
18,797 | 15,527 | 16,655 | 16,399 | 14,332 | 14,236 | ||||||||||||||||||
Municipal
obligations
|
857 | 857 | — | — | — | — | ||||||||||||||||||
Total
investment securities held for sale
|
80,451 | 77,255 | 44,282 | 43,592 | 41,661 | 41,070 | ||||||||||||||||||
Investment
securities held to maturity:
|
||||||||||||||||||||||||
Mortgage-backed
securities
|
5,498 |
4,983
|
— | — | — | — | ||||||||||||||||||
Collateralized
mortgage obligations
|
4,178 |
3,545
|
— | — | — | — | ||||||||||||||||||
Total
investment securities held to maturity
|
9,676 |
8,528
|
— | — | — | — | ||||||||||||||||||
Investment
in limited partnerships
|
4,561 | N/A | 3,246 | N/A | 3,461 | N/A | ||||||||||||||||||
Investment
in insurance company
|
590 | N/A | 590 | N/A | 590 | N/A | ||||||||||||||||||
Federal
Home Loan Bank stock
|
18,632 | N/A | 10,037 | N/A | 9,938 | N/A | ||||||||||||||||||
Total
investments
|
$ | 113,910 | $ |
85,783
|
$ | 58,155 | $ | 43,592 | $ | 55,650 | $ | 41,070 |
Due in
|
||||||||||||||||||||||||
Less Than
1 Year
|
1 to 5
Years
|
5 to 10
Years
|
Over
10 Years
|
Total
Investment Securities
|
||||||||||||||||||||
Amortized
Cost
|
Amortized
Cost
|
Amortized
Cost
|
Amortized
Cost
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Available-for-sale:
|
||||||||||||||||||||||||
Corporate
obligations
|
$ | 1,800 | $ | 8,009 | $ | — | $ | 8,988 | $ | 18,797 | $ | 15,527 | ||||||||||||
Government
sponsored entities
|
— | — | 560 | 867 | 1,427 | 1,429 | ||||||||||||||||||
Mutual
funds
|
1,635 | — | — | — | 1,635 | 1,497 | ||||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
Freddie
Mac
|
— | 22 | 39 | 28,055 | 28,116 | 28,708 | ||||||||||||||||||
Fannie
Mae
|
— | 1,126 | 1,197 | 15,642 | 17,965 | 21,076 | ||||||||||||||||||
Ginnie
Mae
|
— | — | — | 164 | 164 | 167 | ||||||||||||||||||
Other
|
— | 279 | 2,618 | 9,450 | 12,347 | 8,851 | ||||||||||||||||||
$ | 3,435 | $ | 9,436 | $ | 4,414 | $ | 63,166 | $ | 80,451 | $ | 77,255 | |||||||||||||
Weighted
average yield
|
3.23 | % | 5.24 | % | 5.58 | % | 5.66 | % | 5.55 | % | ||||||||||||||
Held-to-maturity:
|
||||||||||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
Freddie
Mac
|
$ | — | $ | — | $ | — | $ | 856 | $ | 856 | $ | 847 | ||||||||||||
Fannie
Mae
|
— | — | — | 2,597 | 2,597 | 2,554 | ||||||||||||||||||
Other
|
— | 206 | — | 6,017 | 6,223 | 5,127 | ||||||||||||||||||
$ | — | $ | 206 | $ | — | $ | 9,470 | $ | 9,676 | $ | 8,528 | |||||||||||||
Weighted
average yield
|
5.31 | % | 4.68 | % | 4.71 | % |
December
31,
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Amount
|
Percent
of
Total
|
Amount
|
Percent
of
Total
|
Amount
|
Percent
of
Total
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Transactions and Savings
Deposits:
|
||||||||||||||||||||||||
Noninterest
bearing accounts
|
$ | 93,393 | 9.70 | % | $ | 47,172 | 7.08 | % | $ | 47,142 | 6.70 | % | ||||||||||||
Passbook
accounts
|
79,111 | 8.22 | 50,388 | 7.56 | 55,750 | 7.93 | ||||||||||||||||||
Interest-bearing
NOW and demand accounts
|
156,787 | 16.29 | 117,863 | 17.69 | 107,963 | 15.35 | ||||||||||||||||||
Money
market accounts
|
47,584 | 4.94 | 22,664 | 3.40 | 27,788 | 3.95 | ||||||||||||||||||
Total
non-certificates
|
376,875 | 39.16 | 238,087 | 35.73 | 238,643 | 33.93 | ||||||||||||||||||
Certificates:
|
||||||||||||||||||||||||
0.00
- 1.99%
|
55,064 | 5.72 | 8,627 | 1.29 | 15,772 | 2.24 | ||||||||||||||||||
2.00
- 3.99%
|
359,899 | 37.39 | 47,500 | 7.13 | 82,621 | 11.75 | ||||||||||||||||||
4.00
- 5.99%
|
170,611 | 17.73 | 372,145 | 55.84 | 366,284 | 52.07 | ||||||||||||||||||
6.00
- 7.99%
|
65 | 0.01 | 48 | 0.01 | 39 | 0.01 | ||||||||||||||||||
8.00
- 9.99%
|
— | — | — | — | — | — | ||||||||||||||||||
10.00%
and over
|
— | — | — | — | — | — | ||||||||||||||||||
Total
certificates
|
585,639 | 60.84 | 428,320 | 64.27 | 464,716 | 66.07 | ||||||||||||||||||
Total
deposits
|
$ | 962,514 |
(1)
|
100.00 | % | $ | 666,407 | 100.00 | % | $ | 703,359 | 100.00 | % |
1.00-
1.99%
|
2.00-
3.99%
|
4.00-
5.99%
|
6.00-
7.99%
|
Total
|
Percent
of
Total
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Certificate
accounts maturing
in quarter ending:
|
||||||||||||||||||||||||
March
31, 2009
|
$ | 30,049 | $ | 70,961 | $ | 44,084 | $ | — | $ | 145,094 | 24.78 | % | ||||||||||||
June
30, 2009
|
8,900 | 58,986 | 14,569 | — | 82,455 | 14.07 | % | |||||||||||||||||
September
30, 2009
|
7,618 | 60,772 | 7,454 | — | 75,844 | 12.95 | % | |||||||||||||||||
December
31, 2009
|
8,497 | 40,677 | 4,363 | 8 | 53,545 | 9.15 | % | |||||||||||||||||
March
31, 2010
|
— | 36,167 | 11,972 | — | 48,139 | 8.22 | % | |||||||||||||||||
June
30, 2010
|
— | 16,061 | 10,659 | — | 26,720 | 4.56 | % | |||||||||||||||||
September
30, 2010
|
— | 2,422 | 5,224 | — | 7,646 | 1.31 | % | |||||||||||||||||
December
31, 2010
|
— | 3,729 | 2,015 | — | 5,744 | 0.98 | % | |||||||||||||||||
March
31, 2011
|
— | 6,329 | 1,299 | — | 7,628 | 1.30 | % | |||||||||||||||||
June
30, 2011
|
— | 16,117 | 2,263 | — | 18,380 | 3.14 | % | |||||||||||||||||
September
30, 2011
|
— | 18,255 | 2,766 | — | 21,021 | 3.59 | % | |||||||||||||||||
December
31, 2011
|
— | 21,628 | 5,672 | 58 | 27,358 | 4.67 | % | |||||||||||||||||
Thereafter
|
— | 7,795 | 58,270 | — | 66,065 | 11.28 | % | |||||||||||||||||
Total
|
$ | 55,064 | $ | 359,899 | $ | 170,610 | $ | 66 | $ | 585,639 | 100.00 | % | ||||||||||||
Percent
of total
|
9.40 | % | 61.46 | % | 29.13 | % | 0.01 | % | 100.00 | % |
Maturity
|
||||||||||||||||||||
3
Months
or
Less
|
Over
3
to 6
Months
|
Over
6
to 12
Months
|
Over
12
months
|
Total
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Certificates
of deposit less than $100,000
|
$ | 96,596 | $ | 57,228 | $ | 79,434 | $ | 159,936 | $ | 393,194 | ||||||||||
Certificates
of deposit of $100,000 or more
|
35,759 | 25,209 | 48,851 | 67,036 | 176,855 | |||||||||||||||
Public
funds(1)
|
12,740 | 18 | 1,105 | 1,727 | 15,590 | |||||||||||||||
Total
certificates of deposit
|
$ | 145,095 | $ | 82,455 | $ | 129,390 | $ | 228,699 | $ | 585,639 |
Year
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(In
thousands)
|
||||||||||||
Maximum Balance:
|
||||||||||||
Federal
Home Loan Bank advances
|
$ | 300,147 | $ | 191,675 | $ | 193,345 | ||||||
Notes
payable
|
1,123 | 1,427 | 1,784 | |||||||||
Other
borrowings
|
15,967 | 4,311 | — | |||||||||
Average Balance:
|
||||||||||||
Federal
Home Loan Bank advances
|
$ | 224,822 | $ | 157,309 | $ | 168,001 | ||||||
Notes
payable
|
718 | 1,160 | 1,635 | |||||||||
Other
borrowings
|
7,967 | 155 | — |
December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Federal
Home Loan Bank advances
|
$ | 263,113 | $ | 191,675 | $ | 157,425 | ||||||
Notes
payable
|
647 | 1,055 | 1,427 | |||||||||
Other
borrowings
|
15,345 | 3,908 | —— | |||||||||
Total
borrowings
|
$ | 279,105 | $ | 196,638 | $ | 158,852 | ||||||
Weighted
average interest rate of FHLB advances
|
4.27 | % | 4.88 | % | 4.67 | % | ||||||
Weighted
average interest rate of notes payable(1)
|
— | — | — | |||||||||
Weighted
average interest rate of other borrowings(2)
|
5.28 | % | 6.48 | % | — |
|
·
|
cash
flow of the borrower and/or the project being
financed;
|
|
·
|
in
the case of a collateralized loan, the changes and uncertainties as to the
future value of the collateral;
|
|
·
|
the
credit history of a particular
borrower;
|
|
·
|
changes
in economic and industry conditions;
and
|
|
·
|
the
duration of the loan.
|
|
·
|
an
ongoing review of the quality, size and diversity of the loan
portfolio;
|
|
·
|
evaluation
of non-performing loans;
|
|
·
|
historical
default and loss experience;
|
|
·
|
historical
recovery experience;
|
|
·
|
existing
economic conditions;
|
|
·
|
risk
characteristics of the various classifications of loans;
and
|
|
·
|
the
amount and quality of collateral, including guarantees, securing the
loans.
|
|
·
|
actual
or anticipated quarterly fluctuations in our operating and financial
results;
|
|
·
|
developments
related to investigations, proceedings or litigation that involve
us;
|
|
·
|
changes
in financial estimates and recommendations by financial
analysts;
|
|
·
|
dispositions,
acquisitions and financings;
|
|
·
|
fluctuations
in the stock prices and operating results of our
competitors;
|
|
·
|
regulatory
developments; and
|
|
·
|
other
developments related to the financial services
industry.
|
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
Stock
Price
|
Dividends per Share
|
|||||||||||
2008
Quarters:
|
High
|
Low
|
||||||||||
First
Quarter (ended 03/31/08)
|
$ | 13.98 | $ | 12.80 | $ | .16 | ||||||
Second
Quarter (ended 06/30/08)
|
$ | 13.66 | $ | 9.81 | $ | .16 | ||||||
Third
Quarter (ended 09/30/08)
|
$ | 11.00 | $ | 9.34 | $ | .16 | ||||||
Fourth
Quarter (ended 12/31/08)
|
$ | 10.50 | $ | 6.20 | $ | .16 | ||||||
Stock
Price
|
Dividends
per Share
|
|||||||||||
2007
Quarters:
|
High
|
Low
|
||||||||||
First
Quarter (ended 03/31/07)
|
$ | 21.20 | $ | 19.42 | $ | .15 | ||||||
Second
Quarter (ended 06/30/07)
|
$ | 20.00 | $ | 18.30 | $ | .15 | ||||||
Third
Quarter (ended 09/30/07)
|
$ | 19.00 | $ | 16.52 | $ | .15 | ||||||
Fourth
Quarter (ended 12/31/07)
|
$ | 18.58 | $ | 13.89 | $ | .15 |
Item
6.
|
Selected
Financial Data
|
At
or For the Year Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Selected
Financial Condition
Data
|
||||||||||||||||||||
Total
assets
|
$ | 1,388,827 | $ | 962,517 | $ | 960,842 | $ | 971,829 | $ | 839,387 | ||||||||||
Cash
and cash equivalents
|
39,703 | 23,648 | 24,915 | 22,365 | 19,743 | |||||||||||||||
Loans,
net
|
1,113,132 | 802,436 | 805,625 | 822,547 | 713,022 | |||||||||||||||
Investment
securities:
|
||||||||||||||||||||
Available-for
-sale, at fair value
|
77,255 | 43,592 | 41,070 | 39,788 | 39,409 | |||||||||||||||
Held
to maturity
|
9,676 | — | — | — | — | |||||||||||||||
Total
deposits
|
962,514 | 666,407 | 703,359 | 684,554 | 600,407 | |||||||||||||||
Total
borrowings
|
279,104 | 196,638 | 158,852 | 187,791 | 141,572 | |||||||||||||||
Total
stockholders’ equity
|
130,515 | 87,014 | 87,264 | 88,794 | 87,860 | |||||||||||||||
Selected
Operations Data
|
||||||||||||||||||||
Total
interest income
|
$ | 65,179 | $ | 56,374 | $ | 56,119 | $ | 48,478 | $ | 44,400 | ||||||||||
Total
interest expense
|
31,639 | 32,227 | 29,890 | 21,170 | 17,476 | |||||||||||||||
Net
interest income
|
33,540 | 24,147 | 26,229 | 27,308 | 26,924 | |||||||||||||||
Provision
for loan losses
|
7,020 | 2,240 | 2,068 | 1,775 | 1,557 | |||||||||||||||
Net
interest income after provision for loan losses
|
26,520 | 21,907 | 24,161 | 25,533 | 25,367 | |||||||||||||||
Service
fee income
|
6,257 | 4,831 | 4,370 | 4,026 | 3,193 | |||||||||||||||
Gain(loss)
on sale of loans and
investment
securities
|
(2,277 | ) | 391 | (669 | ) | 228 | 727 | |||||||||||||
Other
non-interest income (loss)
|
2,542 | 2,549 | 2,941 | 2,478 | 2,304 | |||||||||||||||
Total
non-interest income
|
6,522 | 7,771 | 6,642 | 6,732 | 6,224 | |||||||||||||||
Salaries
and employee benefits
|
19,118 | 14,759 | 14,617 | 13,792 | 16,167 | |||||||||||||||
Other
expenses
|
44,508 | 10,397 | 10,402 | 9,620 | 8,149 | |||||||||||||||
Total
non-interest expense
|
63,626 | 25,156 | 25,019 | 23,412 | 24,316 | |||||||||||||||
Income
(loss) before taxes
|
(30,583 | ) | 4,522 | 5,784 | 8,853 | 7,275 | ||||||||||||||
Income
tax expense (benefit)
|
(8,485 | ) | 296 | 1,028 | 2,401 | 1,753 | ||||||||||||||
Net
income (loss)
|
$ | (22,098 | ) | $ | 4,226 | $ | 4,756 | $ | 6,452 | $ | 5,522 |
At
or For the Year Ended December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Selected
Financial Ratios and Other Financial
Data:
|
||||||||||||||||||||
Performance
Ratios:
|
||||||||||||||||||||
Return
on average assets (ratio of net income to average total
assets)
|
(1.91 | )% | 0.44 | % | 0.49 | % | 0.73 | % | 0.67 | % | ||||||||||
Return
on average tangible equity (ratio of
net income to average tangible
equity)
|
(28.04 | ) | 5.86 | 6.43 | 7.79 | 5.90 | ||||||||||||||
Interest
rate spread information:
|
||||||||||||||||||||
Average
during the period
|
3.01 | 2.50 | 2.70 | 3.13 | 3.46 | |||||||||||||||
Net
interest margin(1)
|
3.22 | 2.79 | 2.96 | 3.37 | 3.57 | |||||||||||||||
Ratio
of operating expense to
average total assets
|
5.49 | 2.64 | 2.57 | 2.89 | 2.94 | |||||||||||||||
Ratio
of average interest-earning
assets to average interest-bearing
liabilities
|
107.14 | 107.92 | 107.65 | 109.30 | 106.06 | |||||||||||||||
Efficiency
ratio(2)
|
158.81 | 78.81 | 76.11 | 68.78 | 73.26 | |||||||||||||||
|
||||||||||||||||||||
Asset
Quality Ratios:(3)
|
||||||||||||||||||||
Non-performing
assets to total
assets
|
1.92 | 1.35 | 0.86 | 1.03 | 0.65 | |||||||||||||||
Non-performing
loans to
total loans
|
1.93 | 1.29 | 0.70 | 0.90 | 0.57 | |||||||||||||||
Allowance
for loan losses to
non-performing loans
|
69.41 | 79.72 | 143.59 | 108.04 | 167.32 | |||||||||||||||
Allowance
for loan losses to
loans receivable, net
|
1.34 | 1.03 | 1.00 | 0.98 | 0.95 | |||||||||||||||
Capital
Ratios:
|
||||||||||||||||||||
Equity
to total assets(3)
|
9.40 | 9.04 | 9.08 | 9.14 | 10.47 | |||||||||||||||
Average
equity to average assets
|
8.89 | 9.16 | 9.08 | 9.90 | 11.50 | |||||||||||||||
Share
and Per Share Data:
|
||||||||||||||||||||
Average
common shares outstanding:
|
||||||||||||||||||||
Basic
|
5,249,135 | 4,103,940 | 4,196,059 | 4,328,965 | 4,625,437 | |||||||||||||||
Diluted
|
5,253,477 | 4,151,173 | 4,274,039 | 4,439,686 | 4,772,036 | |||||||||||||||
Per
share:
|
||||||||||||||||||||
Basic
earnings
|
$ | (4.22 | ) | $ | 1.03 | $ | 1.13 | $ | 1.49 | $ | 1.19 | |||||||||
Diluted
earnings
|
$ | (4.22 | ) | $ | 1.02 | $ | 1.11 | $ | 1.45 | $ | 1.16 | |||||||||
Dividends
|
$ | 0.64 | $ | 0.60 | $ | 0.58 | $ | 0.49 | $ | 0.47 | ||||||||||
Dividend
payout ratio(4)
|
(15.20 | )% | 58.25 | % | 52.25 | % | 36.55 | % | 40.52 | % | ||||||||||
Other
Data:
|
||||||||||||||||||||
Number
of full-service offices
|
33 | 21 | 21 | 20 | 18 |
(1)
|
Net
interest income divided by average interest earning
assets.
|
(2)
|
Total
non-interest expense divided by net interest income plus total
non-interest income.
|
(3)
|
At
the end of the period.
|
(4)
|
Dividends
per share divided by diluted earnings per
share.
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operation
|
|
·
|
Continuing
as a Diversified Lender. We have been successful in
diversifying our loan portfolio to reduce our reliance on any one type of
loan. From 1995 through 2000, approximately 36% of our loan
portfolio consisted of loans other than one-to four- family real estate
loans. Since that time to the end of 2008, that percentage has
increased to 53%.
|
|
·
|
Continuing
as a Leading One- to Four-Family Lender. We are one of
the largest originators of one- to four-family residential loans in our
five-county market area. During 2008, we originated $111.1
million of one- to four-family residential
loans.
|
|
·
|
Continuing
To Focus On Asset Quality. Non-performing assets to
total assets was 1.92% at December 31, 2008, up from 1.35% at December 31,
2007. We believe that our underwriting standards will provide for a
quality loan portfolio.
|
|
·
|
Continuing
Our Strong Capital Position. As a result of our
consistent operating profitability, we have historically maintained a
strong capital position. At December 31, 2008, our ratio of
stockholders’ equity to total assets was
9.4%.
|
Year
ended December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||||||||||||||
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||
Interest-Earning
Assets:
|
||||||||||||||||||||||||||||||||||||
Interest
-bearing deposits
|
$ | 8,711 | $ | 118 | 1.35 | % | $ | 2,982 | $ | 115 | 3.86 | % | $ | 1,918 | $ | 67 | 3.49 | % | ||||||||||||||||||
Mortgage-backed
securities available-for-sale(1)
|
28,648 | 1,596 | 5.57 | % | 8,875 | 467 | 5.26 | % | 10,532 | 481 | 4.57 | % | ||||||||||||||||||||||||
Investment securities
available-for-sale(1)
|
28,987 | 1,303 | 4.50 | % | 31,234 | 1,644 | 5.26 | % | 30,055 | 1,440 | 4.79 | % | ||||||||||||||||||||||||
Investment
securities held-to-maturity
|
3,360 | 314 | 9.35 | % | ||||||||||||||||||||||||||||||||
Loans(2)
|
956,788 | 61,128 | 6.39 | % | 811,991 | 53,686 | 6.61 | % | 834,321 | 56,673 | 6.43 | % | ||||||||||||||||||||||||
Stock
in FHLB of Indianapolis
|
14,010 | 720 | 5.14 | % | 9,939 | 462 | 4.65 | % | 10,128 | 459 | 4.53 | % | ||||||||||||||||||||||||
Total
interest-earning assets
|
1,040,504 | 65,179 | 6.26 | % | 865,021 | 56,374 | 6.52 | % | 886,954 | 56,120 | 6.33 | % | ||||||||||||||||||||||||
Non-Interest
Earning Assets (net of allowance for loan losses and unrealized
gain/loss)
|
118,673 | 87,879 | 85,641 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 1,159,177 | $ | 952,900 | $ | 972,595 | ||||||||||||||||||||||||||||||
Interest-Bearing
Liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand
and NOW accounts
|
$ | 148,703 | 1,564 | 1.05 | % | $ | 126,034 | 2,841 | 2.25 | % | $ | 101,627 | 1,662 | 1.64 | % | |||||||||||||||||||||
Savings
deposits
|
66,315 | 317 | 0.48 | % | 54,975 | 281 | 0.51 | % | 60,253 | 301 | 0.50 | % | ||||||||||||||||||||||||
Money
market accounts
|
34,000 | 615 | 1.81 | % | 24,588 | 621 | 2.53 | % | 34,920 | 690 | 1.98 | % | ||||||||||||||||||||||||
Certificate
accounts
|
492,405 | 18,920 | 3.84 | % | 444,271 | 20,755 | 4.67 | % | 461,678 | 19,372 | 4.20 | % | ||||||||||||||||||||||||
Total
deposits
|
741,423 | 21,416 | 2.89 | % | 649,868 | 24,498 | 3.77 | % | 658,478 | 22,025 | 3.34 | % | ||||||||||||||||||||||||
Borrowings
|
229,768 | 10,223 | 4.45 | % | 151,636 | 7,729 | 5.10 | % | 165,465 | 7,866 | 4.75 | % | ||||||||||||||||||||||||
Total
interest-bearing accounts
|
971,191 | 31,639 | 3.26 | % | 801,504 | 32,227 | 4.02 | % | 823,943 | 29,891 | 3.63 | % | ||||||||||||||||||||||||
Non-Interest
Bearing Accounts
|
66,746 | 48,589 | 45,597 | |||||||||||||||||||||||||||||||||
Other
Liabilities
|
18,138 | 15,478 | 14,759 | |||||||||||||||||||||||||||||||||
Total
Liabilities
|
1,056,075 | 865,571 | 884,299 | |||||||||||||||||||||||||||||||||
Stockholders’
Equity
|
103,102 | 87,329 | 88,296 | |||||||||||||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$ | 1,159,177 | $ | 952,900 | $ | 972,595 | ||||||||||||||||||||||||||||||
Net
Earning Assets
|
$ | 69,313 | $ | 63,517 | $ | 63,011 | ||||||||||||||||||||||||||||||
Net
Interest Income
|
$ | 33,540 | $ | 24,147 | $ | 26,229 | ||||||||||||||||||||||||||||||
Net Interest Rate
Spread(3)
|
3.01 | % | 2.50 | % | 2.70 | % | ||||||||||||||||||||||||||||||
Net Yield on Average
Interest-Earning Assets(4)
|
3.22 | % | 2.79 | % | 2.96 | % | ||||||||||||||||||||||||||||||
Average
Interest-Earning Assets to Average Interest-Bearing
Liabilities
|
107.14 | % | 107.92 | % | 107.65 | % |
(1)
|
Average
balances were calculated using amortized cost, which excludes FASB 115
valuation allowances.
|
(2)
|
Calculated
net of deferred loan fees, loan discounts and loans in
process.
|
(3)
|
Interest
rate spread is calculated by subtracting weighted average interest rate
cost from weighted average interest rate yield for the period
indicated.
|
(4)
|
The
net yield on weighted average interest-earning assets is calculated by
dividing net interest income by weighted average interest-earning assets
for the period indicated.
|
Year
Ended December 31,
|
||||||||||||||||||||||||
2008
vs. 2007
|
2007
vs. 2006
|
|||||||||||||||||||||||
Increase
(decrease)
Due
to
|
Total
Increase
(decrease)
|
Increase
(decrease)
Due
to
|
Total
Increase
(decrease)
|
|||||||||||||||||||||
Volume
|
Rate
|
Volume
|
Rate
|
|||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Interest-bearing
deposits
|
$ | 114 | $ | (111 | ) | $ | 3 | $ | 40 | $ | 8 | $ | 48 | |||||||||||
Investment
securities available-for-sale
|
1,259 | (157 | ) | 1,102 | (24 | ) | 214 | 190 | ||||||||||||||||
Loans
receivable
|
9,302 | (1,860 | ) | 7,442 | (1,456 | ) | 1,469 | 13 | ||||||||||||||||
Stock
in FHLB of Indianapolis
|
205 | 53 | 258 | (9 | ) | 12 | 3 | |||||||||||||||||
Total
interest-earning assets
|
$ | 10,880 | $ | (2,075 | ) | $ | 8,805 | $ | (1,449 | ) | $ | 1,703 | $ | 254 | ||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
deposits
|
$ | 55 | $ | (19 | ) | $ | 36 | $ | (27 | ) | $ | 7 | $ | (20 | ) | |||||||||
Money
market accounts
|
199 | (205 | ) | (6 | ) | (233 | ) | 164 | (69 | ) | ||||||||||||||
Demand
and NOW accounts
|
442 | (1,719 | ) | (1,277 | ) | 458 | 721 | 1,179 | ||||||||||||||||
Certificate
accounts
|
2,097 | (3,932 | ) | (1,835 | ) | (751 | ) | 2,134 | 1,383 | |||||||||||||||
Borrowings
|
3,576 | (1,082 | ) | 2,494 | (683 | ) | 546 | (137 | ) | |||||||||||||||
Total
interest-bearing liabilities
|
$ | 6,369 | $ | (6,957 | ) | $ | (588 | ) | $ | (1,236 | ) | $ | 3,572 | $ | 2,336 | |||||||||
Change
in net interest income
|
$ | 9,393 | $ | (2,082 | ) |
Payments
due by period
|
||||||||||||||||||||
Less
than
|
1-3 | 3-5 |
More
than
|
|||||||||||||||||
Total
|
1 year
|
years
|
Years
|
5 years
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Contractual
Obligations
|
||||||||||||||||||||
Federal
Home Loan Bank Advances
|
$ | 263,113 | $ | 102,152 | $ | 153,716 | $ | 5,535 | $ | 1,710 | ||||||||||
Notes
Payable
|
647 | 421 | 226 | — | — | |||||||||||||||
Other
Borrowings
|
15,345 | 500 | 6,000 | 5,000 | 3,845 | |||||||||||||||
Total
|
$ | 279,105 | $ | 103,073 | $ | 159,942 | $ | 10,535 | $ | 5,555 |
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market
Risk
|
|
·
|
Originate
and purchase adjustable rate mortgage loans and commercial business
loans,
|
|
·
|
Originate
shorter-duration consumer loans,
|
|
·
|
Manage
our deposits to establish stable deposit
relationships,
|
|
·
|
Acquire
longer-term borrowings at fixed rates, when appropriate, to offset the
negative impact of longer-term fixed rate loans in our loan portfolio,
and
|
|
·
|
Limit
the percentage of long-term fixed-rate loans in our
portfolio.
|
December 31, 2008
|
|||||||||||||||||||||
Net
Portfolio Value
|
|||||||||||||||||||||
Changes
|
NPV as % of PV of Assets
|
||||||||||||||||||||
In
Rates
|
$
Amount
|
$
Change
|
%
Change
|
NPV
Ratio
|
Change
|
||||||||||||||||
+300
|
bp | 168,752 | -16,815 | -9 | % | 12.65 | % | -50 | bp | ||||||||||||
+200
|
bp | 178,643 | -6,924 | -4 | % | 13.12 | % | -3 | bp | ||||||||||||
+100
|
bp
|
185,612 | 45 | 0 | % | 13.37 | % | 22 | bp | ||||||||||||
0
|
bp
|
185,567 | 13.15 | % | |||||||||||||||||
-100
|
bp
|
NM
|
NM
|
NM
|
NM
|
NM
|
|||||||||||||||
-200
|
bp
|
NM
|
NM
|
NM
|
NM
|
NM
|
|||||||||||||||
-300
|
bp |
NM
|
NM
|
NM
|
NM
|
NM
|
December 31, 2007
|
|||||||||||||||||||||
Net
Portfolio Value
|
|||||||||||||||||||||
Changes
|
NPV as % of PV of Assets
|
||||||||||||||||||||
In
Rates
|
$
Amount
|
$
Change
|
%
Change
|
NPV
Ratio
|
Change
|
||||||||||||||||
+300
|
bp
|
64,185 | -40,736 | -39 | % | 7.27 | % | -380 | bp | ||||||||||||
+200
|
bp
|
79,394 | -25,527 | -24 | % | 8.77 | % | -230 | bp | ||||||||||||
+100
|
bp
|
91,904 | -13,017 | -12 | % | 9.93 | % | -114 | bp | ||||||||||||
0
|
bp
|
104,921 | 11.07 | % | |||||||||||||||||
-100
|
bp
|
111,493 | 6,572 | 6 | % | 11.56 | % | 49 | bp | ||||||||||||
-200
|
bp
|
111,662 | 6,741 | 6 | % | 11.44 | % | 36 | bp | ||||||||||||
-300
|
bp
|
117,557 | 12,636 | 12 | % | 11.80 | % | 73 | bp | ||||||||||||
Item
8.
|
Financial
Statements and Supplementary Data
|
2008
|
2007
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 21,654,283 | $ | 21,003,114 | ||||
Interest-bearing
demand deposits
|
18,049,169 | 2,645,057 | ||||||
Cash
and cash equivalents
|
39,703,452 | 23,648,171 | ||||||
Interest-bearing
deposits
|
- | 100,000 | ||||||
Investment
securities available for sale
|
77,254,925 | 43,592,485 | ||||||
Investment
securities held to maturity
|
9,675,891 | — | ||||||
Total
investment securities
|
86,930,816 | 43,592,485 | ||||||
Loans
held for sale
|
1,541,110 | 1,644,615 | ||||||
Loans,
net of allowance for loan losses of $15,107,000 and
$8,352,000
|
1,113,132,480 | 802,436,497 | ||||||
Premises
and equipment
|
36,500,979 | 16,168,434 | ||||||
Federal
Home Loan Bank stock
|
18,631,500 | 10,036,900 | ||||||
Investment
in limited partnerships
|
4,560,690 | 3,246,468 | ||||||
Deferred
income tax benefit
|
21,237,513 | 5,174,082 | ||||||
Cash
value of life insurance
|
42,637,240 | 30,350,760 | ||||||
Core
deposit and other intangibles
|
7,406,572 | 1,005,703 | ||||||
Goodwill
|
— | 14,187,725 | ||||||
Other
assets
|
16,545,134 | 10,925,172 | ||||||
Total
assets
|
$ | 1,388,827,486 | $ | 962,517,012 | ||||
Liabilities
and Stockholders’ Equity
|
||||||||
Liabilities
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$ | 93,393,362 | $ | 47,172,012 | ||||
Interest-bearing
|
869,120,808 | 619,235,341 | ||||||
Total
deposits
|
962,514,170 | 666,407,353 | ||||||
Federal
Home Loan Bank advances
|
263,112,728 | 191,675,155 | ||||||
Other
borrowings
|
15,991,690 | 4,962,827 | ||||||
Other
liabilities
|
16,693,959 | 12,457,827 | ||||||
Total
liabilities
|
1,258,312,547 | 875,503,162 | ||||||
Commitments
and Contingencies
|
||||||||
Stockholders’
Equity
|
||||||||
Preferred
stock, $.01 par value
|
||||||||
Authorized
- 5,000,000 shares
|
||||||||
Issued
and outstanding – 32,382 and 0 shares;
liquidation
preference $1,000 per share
|
324 | — | ||||||
Common
stock, $.01 par value
|
||||||||
Authorized
- 20,000,000 shares
|
||||||||
Issued
and outstanding – 6,984,754 and 4,226,638 shares
|
69,847 | 42,266 | ||||||
Additional
paid-in capital – preferred stock
|
31,461,848 | — | ||||||
Additional
paid-in capital – common stock
|
72,610,939 | 32,567,085 | ||||||
Retained
earnings
|
29,989,003 | 56,725,785 | ||||||
Accumulated
other comprehensive loss
|
(2,027,956 | ) | (414,380 | ) | ||||
Unearned
benefit plan shares
|
(1,589,066 | ) | (1,906,906 | ) | ||||
Total
stockholders’ equity
|
130,514,939 | 87,013,850 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 1,388,827,486 | $ | 962,517,012 |
2008
|
2007
|
2006
|
||||||||||
Interest
and Dividend Income
|
||||||||||||
Loans
receivable
|
$ | 61,127,725 | $ | 53,686,297 | $ | 53,672,382 | ||||||
Investment
securities
|
3,213,272 | 2,110,916 | 1,920,823 | |||||||||
Federal
Home Loan Bank stock
|
719,886 | 461,949 | 459,255 | |||||||||
Deposits
with financial institutions
|
118,064 | 114,596 | 67,143 | |||||||||
Total
interest and dividend income
|
65,178,947 | 56,373,758 | 56,119,603 | |||||||||
Interest
Expense
|
||||||||||||
Deposits
|
21,416,502 | 24,498,471 | 22,024,156 | |||||||||
Federal
Home Loan Bank advances
|
9,698,795 | 7,656,748 | 7,803,817 | |||||||||
Other
interest expense
|
523,793 | 71,833 | 62,424 | |||||||||
Total
interest expense
|
31,639,090 | 32,227,052 | 29,890,397 | |||||||||
Net
Interest Income
|
33,539,857 | 24,146,706 | 26,229,206 | |||||||||
Provision
for loan losses
|
7,020,000 | 2,240,000 | 2,068,000 | |||||||||
Net
Interest Income After Provision for Loan Losses
|
26,519,857 | 21,906,706 | 24,161,206 | |||||||||
Other
Income
|
||||||||||||
Service
fee income
|
6,256,694 | 4,831,161 | 4,369,508 | |||||||||
Net
realized losses on sales of available-for-sale securities
|
(3,715,531 | ) | — | — | ||||||||
Commissions
|
1,796,332 | 1,000,687 | 682,432 | |||||||||
Equity
in losses of limited partnerships
|
(157,575 | ) | (99,654 | ) | (181,366 | ) | ||||||
Net
gains (losses) on sales of loans
|
1,438,626 | 390,778 | (669,389 | ) | ||||||||
Net
servicing fees
|
(298,473 | ) | 81,033 | 62,122 | ||||||||
Increase
in cash value of life insurance
|
1,322,724 | 1,230,000 | 1,075,403 | |||||||||
Other
income (loss)
|
(120,503 | ) | 336,554 | 1,303,778 | ||||||||
Total
other income
|
6,522,294 | 7,770,559 | 6,642,488 | |||||||||
Other
Expenses
|
||||||||||||
Salaries
and employee benefits
|
19,117,989 | 14,758,489 | 14,617,254 | |||||||||
Net
occupancy expenses
|
1,911,495 | 1,549,331 | 1,507,067 | |||||||||
Equipment
expenses
|
1,629,898 | 1,318,932 | 1,221,991 | |||||||||
Data
processing fees
|
1,191,655 | 1,058,357 | 897,998 | |||||||||
Advertising
and promotion
|
1,461,225 | 887,237 | 966,224 | |||||||||
Automated
teller machine expense
|
968,078 | 723,128 | 699,435 | |||||||||
Professional
fees
|
1,133,012 | 764,007 | 992,984 | |||||||||
Supplies
|
791,579 | 314,846 | 278,403 | |||||||||
Goodwill
impairment
|
28,968,993 | — | — | |||||||||
Other
expenses
|
6,451,461 | 3,781,096 | 3,837,923 | |||||||||
Total
other expenses
|
63,625,385 | 25,155,423 | 25,019,279 | |||||||||
Income
(Loss) Before Income Tax
|
(30,583,234 | ) | 4,521,842 | 5,784,415 | ||||||||
Income
tax expense (credit)
|
(8,485,000 | ) | 295,700 | 1,027,900 | ||||||||
Net
Income (Loss)
|
$ | (22,098,234 | ) | $ | 4,226,142 | $ | 4,756,515 | |||||
Earnings
Per Share
|
||||||||||||
Basic
|
$ | (4.22 | ) | $ | 1.03 | $ | 1.13 | |||||
Diluted
|
(4.22 | ) | 1.02 | 1.11 |
Accumulated
|
||||||||||||||||||||||||||||||||
Other
|
Unearned
|
|||||||||||||||||||||||||||||||
Paid-in
|
Paid-in
|
Comprehensive
|
Benefit
|
|||||||||||||||||||||||||||||
Preferred
|
Capital
|
Common
|
Capital
|
Retained
|
Income
|
Plan
|
||||||||||||||||||||||||||
Stock
|
Preferred
|
Stock
|
Common
|
Earnings
|
(Loss)
|
Shares
|
Total
|
|||||||||||||||||||||||||
Balances,
January 1, 2006
|
$ |
—
|
$ |
—
|
$ |
45,522
|
$ |
33,889,584
|
$ |
57,968,477
|
$ |
(374,701
|
) | $ | (2,735,262 | ) | $ |
88,793,620
|
||||||||||||||
Comprehensive
income
|
|
|||||||||||||||||||||||||||||||
Net
income
|
|
4,756,515
|
|
|
4,756,515
|
|||||||||||||||||||||||||||
Other
comprehensive income, net of tax - unrealized holding gains on
securities
|
19,967
|
19,967
|
||||||||||||||||||||||||||||||
Comprehensive
income
|
|
4,776,482
|
|
|||||||||||||||||||||||||||||
Cash
dividends ($.58 per share)
|
|
(2,359,547
|
) |
|
(2,359,547
|
) | ||||||||||||||||||||||||||
Exercise
of stock options
|
474
|
686,826
|
|
687,300
|
||||||||||||||||||||||||||||
Stock
repurchased
|
(2,330
|
) |
(1,825,273
|
) |
(3,107,881
|
) |
|
(4,935,484
|
) | |||||||||||||||||||||||
RRP
shares earned
|
150,564
|
|
150,564
|
|||||||||||||||||||||||||||||
Tax
benefit on stock options and RRP shares
|
45,400
|
|
45,400
|
|
||||||||||||||||||||||||||||
ESOP
shares earned
|
347,161
|
|
317,840 |
665,001
|
||||||||||||||||||||||||||||
Reclassification
of unearned RRP shares
|
(192,676
|
) |
|
192,676 |
—
|
|||||||||||||||||||||||||||
Cumulative
effect of applying SAB No. 108
|
(559,018
|
) |
|
(559,018
|
) | |||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Balances,
December 31, 2006
|
43,666
|
33,101,586
|
56,698,546
|
(354,734
|
) | (2,224,746 | ) |
87,264,318
|
||||||||||||||||||||||||
Comprehensive
income
|
|
|
|
|||||||||||||||||||||||||||||
Net
income
|
|
4,226,142
|
|
4,226,142
|
||||||||||||||||||||||||||||
Other
comprehensive income, net of tax - unrealized holding losses on
securities
|
|
(59,646
|
) |
(59,646
|
) | |||||||||||||||||||||||||||
Comprehensive
income
|
|
|
4,166,496
|
|||||||||||||||||||||||||||||
Cash
dividends ($.60 per share)
|
|
(2,440,121
|
) |
|
(2,440,121
|
) | ||||||||||||||||||||||||||
Exercise
of stock options
|
154
|
208,459
|
|
208,613
|
||||||||||||||||||||||||||||
Stock
repurchased
|
(1,554
|
) |
(1,032,936
|
) |
(1,758,782
|
) |
|
(2,793,272
|
) | |||||||||||||||||||||||
RRP
shares earned
|
21,056
|
|
21,056
|
|||||||||||||||||||||||||||||
Tax
benefit on stock options and RRP shares
|
3,382
|
|
3,382
|
|||||||||||||||||||||||||||||
ESOP
shares earned
|
265,538
|
|
317,840 |
583,378
|
||||||||||||||||||||||||||||
Balances
December 31, 2007
|
42,266
|
32,567,085
|
56,725,785
|
(414,380
|
) | (1,906,906 | ) |
87,013,850
|
||||||||||||||||||||||||
Comprehensive
loss
|
|
|
|
|||||||||||||||||||||||||||||
Net
loss
|
$ |
(22,098,234
|
) |
(22,098,234
|
) | |||||||||||||||||||||||||||
Other
comprehensive income, net of tax - unrealized holding losses on
securities
|
(1,503,877
|
) |
(1,503,877
|
) | ||||||||||||||||||||||||||||
Comprehensive
loss
|
(23,602,111
|
) | ||||||||||||||||||||||||||||||
Preferred
stock issued
|
324
|
31,461,848
|
919,828
|
32,382,000
|
||||||||||||||||||||||||||||
Common
stock issued in acquisition, net of costs
|
29,117
|
39,758,791
|
39,787,908
|
|||||||||||||||||||||||||||||
Cash
dividends ($.64 per share)
|
(3,489,747
|
) |
(3,489,747
|
) | ||||||||||||||||||||||||||||
Stock
repurchased
|
(1,536
|
) |
(660,334
|
) |
(1,148,801
|
) |
(1,810,671
|
) | ||||||||||||||||||||||||
RRP
shares earned
|
21,056
|
21,056
|
||||||||||||||||||||||||||||||
Tax
expense on stock options and RRP shares
|
(20,529
|
) |
(20,529
|
) | ||||||||||||||||||||||||||||
ESOP
shares earned
|
25,042
|
317,840 |
342,882
|
|||||||||||||||||||||||||||||
Other
adjustment
|
(109,699
|
) |
(109,699
|
) | ||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Balances
December 31, 2008
|
$ |
324
|
$ |
31,461,848
|
$ |
69,847
|
$ |
72,610,939
|
$ |
29,989,003
|
$ |
(2,027,956
|
) | $ | (1,589,066 | ) | $ |
130,514,939
|
(As Restated)
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Operating
Activities
|
||||||||||||
Net
income (loss)
|
$ | (22,098,234 | ) | $ | 4,226,142 | $ | 4,756,515 | |||||
Items
not requiring (providing) cash
|
||||||||||||
Provision
for loan losses
|
7,020,000 | 2,240,000 | 2,068,000 | |||||||||
Impairment
of goodwill
|
28,968,993 | — | — | |||||||||
Depreciation
and amortization
|
2,812,118 | 2,554,786 | 2,863,255 | |||||||||
Deferred
income tax
|
(9,121,613 | ) | (758,000 | ) | (192,509 | ) | ||||||
Loans
originated for sale
|
(41,018,545 | ) | (24,427,954 | ) | (25,124,598 | ) | ||||||
Proceeds
from sales of loans held for sale
|
41,737,644 | 24,262,686 | 26,303,525 | |||||||||
(Gain)
loss on loans held for sale
|
(1,438,626 | ) | (390,778 | ) | 669,389 | |||||||
Loss on
investments available for sale
|
3,715,531 | — | — | |||||||||
Other
equity adjustments
|
384,467 | 601,052 | 770,165 | |||||||||
Change
in
|
||||||||||||
Interest
receivable and other assets
|
1,811,318 | 10,356 | (940,346 | ) | ||||||||
Interest
payable and other liabilities
|
(387,104 | ) | 1,463,546 | 639,550 | ||||||||
Cash
value of life insurance
|
(1,322,724 | ) | (1,230,000 | ) | (1,075,403 | ) | ||||||
Other
adjustments
|
547,009
|
434,930 | 939,706 | |||||||||
Net
cash provided by operating activities
|
11,610,234 | 8,986,766 | 11,677,249 | |||||||||
Investing
Activities
|
||||||||||||
Net
change in interest earning deposits
|
100,000 | 193,000 | — | |||||||||
Purchases
of securities available for sale
|
(59,806,429 | ) | (7,810,905 | ) | (5,658,192 | ) | ||||||
Proceeds
from redemption-in-kind – investments
|
2,282,409
|
— | — | |||||||||
Proceeds
from maturities and paydowns of investments
|
||||||||||||
Available
for sale
|
9,342,878 | 4,357,422 | 3,946,193 | |||||||||
Held
to maturity
|
348,629 | — | — | |||||||||
Proceeds
from sales of securities available for sale
|
21,519,205
|
802,748 | 395,949 | |||||||||
Net
change in loans
|
4,435,817 | (2,214,872 | ) | (6,082,431 | ) | |||||||
Proceeds
from sales of loans transferred to held for sale
|
51,577,741 | — | 23,442,643 | |||||||||
Purchases
of premises and equipment
|
(3,422,071 | ) | (2,146,757 | ) | (2,752,106 | ) | ||||||
Proceeds
from real estate owned sales
|
1,781,701 | 1,314,027 | 1,126,224 | |||||||||
Cash
received (paid) in acquisition, net
|
331,065 | (515,257 | ) | 3,894,267 | ||||||||
Other
investing activities
|
(61,895 | ) | 100,671 | 1,350,350 | ||||||||
Net
cash provided by (used in) investing activities
|
28,429,050 | (5,919,923 | ) | 19,662,897 | ||||||||
Financing
Activities
|
||||||||||||
Net
change in
|
||||||||||||
Noninterest-bearing,
interest-bearing demand and savings deposits
|
(19,540,396 | ) | (543,777 | ) | 15,877,096 | |||||||
Certificates
of deposits
|
(16,808,138 | ) | (36,407,524 | ) | (9,399,360 | ) | ||||||
Proceeds
from FHLB advances
|
500,225,000 | 466,550,000 | 514,450,000 | |||||||||
Repayment
of FHLB advances
|
(521,337,084 | ) | (432,014,627 | ) | (542,731,831 | ) | ||||||
Proceeds
from other borrowings
|
11,500,000 | 3,907,394 | — | |||||||||
Repayment
of other borrowings
|
(4,383,382 | ) | (433,760 | ) | (419,506 | ) | ||||||
Proceeds
from issuance of preferred stock
|
32,382,000 | — | — | |||||||||
Stock
repurchased
|
(1,810,671 | ) | (2,793,272 | ) | (4,935,484 | ) | ||||||
Cash
dividends
|
(3,489,747 | ) | (2,440,121 | ) | (2,359,547 | ) | ||||||
Other
financing activities
|
(721,585 | ) | (157,857 | ) | 728,775 | |||||||
Net
cash used in financing activities
|
(23,984,003 | ) | (4,333,544 | ) | (28,789,857 | ) | ||||||
Net
Change in Cash and Cash Equivalents
|
16,055,281 | (1,266,701 | ) | 2,550,289 | ||||||||
Cash
and Cash Equivalents, Beginning of Year
|
23,648,171 | 24,914,872 | 22,364,583 | |||||||||
Cash
and Cash Equivalents, End of Year
|
$ | 39,703,452 | $ | 23,648,171 | $ | 24,914,872 | ||||||
Additional
Cash Flows Information
|
||||||||||||
Interest
paid
|
$ | 31,989,878 | $ | 31,589,021 | $ | 29,684,516 | ||||||
Income
tax paid
|
900,000 | 445,000 | 1,225,000 | |||||||||
Transfers
from loans to foreclosed real estate
|
3,138,785 | 1,970,782 | 1,484,766 | |||||||||
Mortgage
servicing rights capitalized
|
823,032 | 241,131 | 437,194 | |||||||||
Redemption
in kind – investments
|
9,934,943 | — | — |
Note
1:
|
Nature
of Operations and Summary of Significant Accounting
Policies
|
Note
2:
|
Impact
of Recently Adopted Accounting
Pronouncements
|
Note
3:
|
Acquisitions
|
Cash
and cash equivalents
|
$ | 11,179 | ||
Investments
|
23,490 | |||
Loans
|
378,075 | |||
Premises
and equipment
|
18,565 | |||
Core
deposit intangible
|
6,645 | |||
Goodwill
|
14,781 | |||
Other
assets
|
19,263 | |||
Total
assets acquired
|
471,998 | |||
Deposits
|
332,075 | |||
Borrowings
|
97,361 | |||
Other
liabilities
|
5,346 | |||
Total
liabilities assumed
|
434,782 | |||
Net
assets acquired
|
$ | 37,216 |
Year Ended December 31
|
2008
|
2007
|
||||||
Net
Interest Income
|
$ | 42,151 | $ | 42,056 | ||||
Net
Income (Loss)
|
$ | (21,202 | ) | $ | 8,244 | |||
Net
Income per Share - Combined
|
||||||||
Basic
|
$ | (3.04 | ) | $ | 1.20 | |||
Diluted
|
$ | (3.04 | ) | $ | 1.19 |
Cash
and cash equivalents
|
$ | 204 | ||
Loans
|
6,502 | |||
Premises
and equipment
|
803 | |||
Core
deposit intangible
|
313 | |||
Goodwill
|
842 | |||
Total
assets acquired
|
8,664 | |||
Deposits
|
12,327 | |||
Other
liabilities
|
27 | |||
Total
liabilities assumed
|
12,354 | |||
Net
liabilities assumed
|
$ | 3,690 |
Note
4:
|
Restriction
on Cash
|
Note
5:
|
Investment
Securities
|
2008
|
||||||||||||||||
Available for Sale Securities
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Mortgage-backed
securities
|
$ | 14,771 | $ | 393 | $ | (1 | ) | $ | 15,163 | |||||||
Collateralized
mortgage obligations
|
43,821 | 786 | (968 | ) | 43,639 | |||||||||||
Federal
agencies
|
499 | 3 | — | 502 | ||||||||||||
Municipals
|
857 | — | — | 857 | ||||||||||||
Small
Business Administration
|
71 | — | (1 | ) | 70 | |||||||||||
Corporate
obligations
|
18,797 | 9 | (3,279 | ) | 15,527 | |||||||||||
Marketable
equity securities
|
1,635 | — | (138 | ) | 1,497 | |||||||||||
Total
investment securities
|
$ | 80,451 | $ | 1,191 | $ | (4,387 | ) | $ | 77,255 | |||||||
Held
to Maturity Securities
|
||||||||||||||||
|
||||||||||||||||
Mortgage-backed
securities
|
$ | 5,498 | $ | 247 | $ | (762 | ) | $ | 4,983 | |||||||
Collateralized
mortgage obligations
|
4,178 | 138 | (771 | ) | 3,545 | |||||||||||
Total
investment securities
|
$ | 9,676 | $ | 385 | $ | (1,533 | ) | $ | 8,528 |
2007
|
||||||||||||||||
Description of Available
for Sale Securities
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Mortgage-backed
securities
|
$ | 2,310 | $ | 45 | $ | (3 | ) | $ | 2,352 | |||||||
Collateralized
mortgage obligations
|
8,327 | 38 | (43 | ) | 8,322 | |||||||||||
Federal
agencies
|
500 | — | (2 | ) | 498 | |||||||||||
Small
Business Administration
|
108 | — | (1 | ) | 107 | |||||||||||
Corporate
obligations
|
16,655 | 11 | (267 | ) | 16,399 | |||||||||||
Marketable
equity securities
|
16,382 | — | (468 | ) | 15,914 | |||||||||||
Total
investment securities
|
$ | 44,282 | $ | 94 | $ | (784 | ) | $ | 43,592 |
2008
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Available for Sale
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
Mortgage-backed
securities
|
$ | 228 | $ | (1 | ) | $ | — | $ | — | $ | 228 | $ | (1 | ) | ||||||||||
Collateralized
mortgage obligations
|
3,841 | (516 | ) | 1,559 | (452 | ) | 5,400 | (968 | ) | |||||||||||||||
Federal
agencies
|
— | — | — | — | — | — | ||||||||||||||||||
Small
Business Administration
|
— | — | 71 | (1 | ) | 71 | (1 | ) | ||||||||||||||||
Corporate
obligations
|
9,407 | (2,100 | ) | 2,265 | (1,179 | ) | 11,672 | (3,279 | ) | |||||||||||||||
Marketable
equity securities
|
— | — | 1,497 | (138 | ) | 1,497 | (138 | ) | ||||||||||||||||
Total
temporarily impaired securities
|
$ | 13,476 | $ | (2,617 | ) | $ | 5,392 | $ | (1,770 | ) | $ | 18,868 | $ | (4,387 | ) | |||||||||
Held
to Maturity
|
||||||||||||||||||||||||
Mortgage-backed
securities
|
$ | 3,356 | $ | (762 | ) | $ | — | $ | — | $ | 3,356 | $ | (762 | ) | ||||||||||
Collateralized
mortgage obligations
|
2,394 | (771 | ) | — | — | 2,394 | (771 | ) | ||||||||||||||||
Total
temporarily impaired securities
|
$ | 5,750 | $ | (1,533 | ) | $ | — | $ | — | $ | 5,750 | $ | (1,533 | ) |
2007
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Available
for Sale Securities
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
Mortgage-backed
securities
|
$ | — | $ | — | $ | 270 | $ | (3 | ) | $ | 270 | $ | (3 | ) | ||||||||||
Collateralized
mortgage obligations
|
— | — | 3,720 | (43 | ) | 3,720 | (43 | ) | ||||||||||||||||
Federal
agencies
|
— | — | 498 | (2 | ) | 498 | (2 | ) | ||||||||||||||||
Small
Business Administration
|
107 | (1 | ) | — | — | 107 | (1 | ) | ||||||||||||||||
Corporate
obligations
|
2,730 | (231 | ) | 5,463 | (36 | ) | 8,193 | (267 | ) | |||||||||||||||
Marketable
equity securities
|
— | — | 15,520 | (468 | ) | 15,520 | (468 | ) | ||||||||||||||||
Total
temporarily impaired securities
|
$ | 2,837 | $ | (232 | ) | $ | 25,471 | $ | (552 | ) | $ | 28,308 | $ | (784 | ) |
2008
|
||||||||||||||||
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Description Securities
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||
Within
one year
|
$ | 1,800 | $ | 1,803 | $ | — | $ | — | ||||||||
One
to five years
|
8,009 | 7,824 | — | — | ||||||||||||
Five
to ten years
|
499 | 502 | — | — | ||||||||||||
After
ten years
|
8,988 | 5,900 | — | — | ||||||||||||
19,296 | 16,029 | — | — | |||||||||||||
Mortgage-backed
securities
|
14,771 | 15,163 | 5,498 | 4,983 | ||||||||||||
Collateralized
mortgage obligations
|
43,821 | 43,639 | 4,178 | 3,545 | ||||||||||||
Municipals
|
857 | 857 | — | — | ||||||||||||
Small
Business Administration
|
71 | 70 | — | — | ||||||||||||
Marketable
equity securities
|
1,635 | 1,497 | — | — | ||||||||||||
Totals
|
$ | 80,451 | $ | 77,255 | $ | 9,676 | $ | 8,528 |
Note
6:
|
Loans
and Allowance
|
2008
|
2007
|
|||||||
Real
estate loans
|
||||||||
One-to-four
family
|
$ | 519,822 | $ | 429,373 | ||||
Multi-family
|
2,698 | 3,929 | ||||||
Commercial
|
250,693 | 82,116 | ||||||
Construction
and development
|
12,232 | 13,560 | ||||||
785,445 | 528,978 | |||||||
Consumer
loans
|
||||||||
Auto
|
22,715 | 22,917 | ||||||
Home
equity
|
66,460 | 27,232 | ||||||
Home
improvement
|
45,339 | 45,156 | ||||||
Mobile
home
|
727 | 992 | ||||||
Recreational
vehicles
|
79,884 | 77,805 | ||||||
Boats
|
46,928 | 47,816 | ||||||
Other
|
6,339 | 3,593 | ||||||
268,392 | 225,511 | |||||||
Commercial
business loans
|
75,290 | 56,764 | ||||||
Total
loans
|
1,129,127 | 811,253 | ||||||
Undisbursed
loans in process
|
(4,372 | ) | (3,984 | ) | ||||
Unamortized
deferred loan costs, net
|
3,484 | 3,519 | ||||||
Allowance
for loan losses
|
(15,107 | ) | (8,352 | ) | ||||
Net
loans
|
$ | 1,113,132 | $ | 802,436 |
2008
|
2007
|
2006
|
||||||||||
Allowance
for loan losses
|
||||||||||||
Balances,
January 1
|
$ | 8,352 | $ | 8,156 | $ | 8,100 | ||||||
Provision
for losses
|
7,020 | 2,240 | 2,068 | |||||||||
Allowance
acquired in acquisition
|
2,954 | — | — | |||||||||
Recoveries
on loans
|
1,213 | 679 | 291 | |||||||||
Loans
charged off
|
(4,432 | ) | (2,723 | ) | (2,303 | ) | ||||||
Balances,
December 31
|
$ | 15,107 | $ | 8,352 | $ | 8,156 |
Note
7:
|
Related
Party Transactions
|
Balances,
January 1, 2007
|
$ | 4,215 | ||
Change
in composition
|
3,303 | |||
New
loans, including renewals
|
3,421 | |||
Payments,
etc., including renewals
|
(3,364 | ) | ||
Balances,
December 31, 2008
|
$ | 7,575 |
Note
8:
|
Premises
and Equipment
|
2008
|
2007
|
|||||||
Cost
|
||||||||
Land
|
$ | 13,248 | $ | 5,624 | ||||
Buildings
and land improvements
|
25,272 | 13,609 | ||||||
Equipment
|
14,381 | 11,622 | ||||||
Total
cost
|
52,901 | 30,855 | ||||||
Accumulated
depreciation and amortization
|
(16,400 | ) | (14,687 | ) | ||||
Net
|
$ | 36,501 | $ | 16,168 |
Note
9:
|
Investment
In Limited Partnerships
|
2008
|
2007
|
|||||||
Pedcor
Investments 1990-XIII (99.00 percent ownership)
|
$ | 625 | $ | 625 | ||||
Pedcor
Investments 1997-XXVIII (99.00 percent ownership)
|
2,145 | 2,309 | ||||||
Pedcor
Investments 1987-XXXI (49.50 percent ownership)
|
361 | — | ||||||
Pedcor
Investments 2000-XLI (50.00 percent ownership)
|
862 | — | ||||||
Pedcor
Investments 2001-LI (9.90 percent ownership)
|
268 | 312 | ||||||
Pedcor
Investments 2008-CIII (21.50 percent ownership)
|
300 | — | ||||||
$ | 4,561 | $ | 3,246 |
2008
|
2007
|
|||||||
Combined
condensed balance sheets
|
||||||||
Assets
|
||||||||
Cash
|
$ | 7,487 | $ | 179 | ||||
Land
and property
|
43,038 | 29,243 | ||||||
Other
assets
|
4,693 | 1,642 | ||||||
Total
assets
|
$ | 55,218 | $ | 31,064 | ||||
Liabilities
|
||||||||
Notes
payable
|
$ | 46,189 | $ | 28,228 | ||||
Other
liabilities
|
1,835 | 847 | ||||||
Total
liabilities
|
48,024 | 29,075 | ||||||
Partners'
equity (deficit)
|
||||||||
General
partners
|
(3,120 | ) | (2,885 | ) | ||||
Limited
partners
|
10,314 | 4,874 | ||||||
Total
partners’ equity
|
7,194 | 1,989 | ||||||
Total
liabilities and partners' equity
|
$ | 55,218 | $ | 31,064 |
2008
|
2007
|
2006
|
||||||||||
Combined
condensed statements of operations
|
||||||||||||
Total
revenue
|
$ | 5,994 | $ | 4,007 | $ | 3,400 | ||||||
Total
expenses
|
(6,833 | ) | (4,647 | ) | (4,293 | ) | ||||||
Net
loss
|
$ | (839 | ) | $ | (640 | ) | $ | (893 | ) |
Note
10:
|
Core
Deposit Intangible
|
2008
|
2007
|
|||||||
Core
deposits
|
$ | 6,797 | $ | 909 | ||||
Other
|
610 | 97 | ||||||
$ | 7,407 | $ | 1,006 |
2009
|
$ | 1,525 | ||
2010
|
1,348 | |||
2011
|
1,160 | |||
2012
|
962 | |||
2013
|
782 | |||
Thereafter
|
1,630 | |||
$ | 7,407 |
Note
11:
|
Goodwill
|
2008
|
2007
|
|||||||
Balance
as of January 1
|
$ | 14,188 | $ | 13,787 | ||||
Goodwill
acquired during the year
|
14,781 | 401 | ||||||
Impairment
losses
|
(28,969 | ) | — | |||||
Balance
as of December 31
|
$ | — | $ | 14,188 |
Note
12:
|
Deposits
|
2008
|
2007
|
|||||||
Noninterest-bearing
demand
|
$ | 93,393 | $ | 47,172 | ||||
Interest-bearing
demand
|
156,787 | 117,863 | ||||||
Savings
|
79,111 | 50,388 | ||||||
Money
market savings
|
47,584 | 22,664 | ||||||
Certificates
and other time deposits of $100,000 or more
|
192,445 | 127,277 | ||||||
Other
certificates
|
393,194 | 301,043 | ||||||
Total
deposits
|
$ | 962,514 | $ | 666,407 |
2009
|
$ | 356,942 | ||
2010
|
88,248 | |||
2011
|
74,384 | |||
2012
|
27,930 | |||
2013
|
37,505 | |||
Thereafter
|
630 | |||
$ | 585,639 |
Note
13:
|
Federal
Home Loan Bank Advances
|
Maturities Years Ending December 31
|
||||
2009
|
$ | 102,152 | ||
2010
|
88,923 | |||
2011
|
34,486 | |||
2012
|
30,307 | |||
2013
|
5,075 | |||
Thereafter
|
2,170 | |||
$ | 263,113 |
Note
14:
|
Other
Borrowings
|
Note Payable Principal Payments Due in Years Ending December 31
|
||||
2009
|
$ | 921 | ||
2010
|
2,226 | |||
2011
|
2,000 | |||
2012
|
2,000 | |||
2013
|
5,000 | |||
Total
notes payable
|
$ | 12,147 |
2008
|
2007
|
|||||||
Notes
payable
|
$ | 12,147 | $ | 1,552 | ||||
Subordinate
debentures
|
3,845 | — | ||||||
Other
|
— | 3,411 | ||||||
Total
|
$ | 15,992 | $ | 4,963 |
Note
15:
|
Loan
Servicing
|
2008
|
2007
|
2006
|
||||||||||
Loans
serviced for
|
||||||||||||
Freddie
Mac
|
$ | 384,808 | $ | 137,973 | $ | 139,571 | ||||||
Fannie
Mae
|
2,148 | 1,936 | 3,180 | |||||||||
Federal
Home Loan Bank
|
37,070 | 33,998 | 25,914 | |||||||||
Other
investors
|
4,064 | 4,757 | 7,708 | |||||||||
$ | 428,090 | $ | 178,664 | $ | 176,373 |
2008
|
2007
|
2006
|
||||||||||
Mortgage
Servicing Rights
|
||||||||||||
Balances,
January 1
|
$ | 1,126 | $ | 1,261 | $ | 1,175 | ||||||
Servicing
rights capitalized
|
823 | 241 | 437 | |||||||||
Servicing
rights acquired
|
1,844 | — | — | |||||||||
Amortization
of servicing rights
|
(517 | ) | (376 | ) | (351 | ) | ||||||
|
3,276 | 1,126 | 1,261 | |||||||||
Valuation
allowance
|
(500 | ) | — | — | ||||||||
Balances,
December 31
|
$ | 2,776 | $ | 1,126 | $ | 1,261 |
2008
|
2007
|
|||||||
Mortgage
Servicing Rights
|
||||||||
Fair
value, beginning of period
|
$ | 1,629 | $ | 1,660 | ||||
Fair
value, end of period
|
2,776 | 1,629 |
2008
|
2007
|
2006
|
||||||||||
Balance,
beginning of year
|
$ | — | $ | — | $ | — | ||||||
Additions
|
500 | — | — | |||||||||
Reductions
|
— | — | — | |||||||||
Balances,
end of year
|
$ | 500 | $ | — | $ | — |
Note
16:
|
Income
Tax
|
2008
|
2007
|
2006
|
||||||||||
Income
tax expense
|
||||||||||||
Currently
payable
|
||||||||||||
Federal
|
$ | 281 | $ | 1,012 | $ | 960 | ||||||
State
|
356 | 42 | 260 | |||||||||
Deferred
|
||||||||||||
Federal
|
(7,781 | ) | (691 | ) | (279 | ) | ||||||
State
|
(1,341 | ) | (67 | ) | 87 | |||||||
Total income tax expense
(credit)
|
$ | (8,485 | ) | $ | 296 | $ | 1,028 | |||||
Reconciliation
of federal statutory to actual tax expense
|
||||||||||||
Federal
statutory income tax at 34%
|
$ | (10,398 | ) | $ | 1,537 | $ | 1,967 | |||||
Effect
of state income taxes
|
(650 | ) | (17 | ) | 229 | |||||||
Low
income housing credits
|
(1,214 | ) | (811 | ) | (801 | ) | ||||||
Tax-exempt
income
|
(539 | ) | (525 | ) | (459 | ) | ||||||
Goodwill
impairment
|
4,280 | — | — | |||||||||
Other
|
36 | 112 | 92 | |||||||||
Actual tax
expense (credit)
|
$ | (8,485 | ) | $ | 296 | $ | 1,028 | |||||
Effective
tax rate
|
(27.74 | )% | 6.50 | % | 17.8 | % |
2008
|
2007
|
|||||||
Assets
|
||||||||
Unrealized
loss on securities available for sale
|
$ | 1,095 | $ | 276 | ||||
Allowance
for loan losses
|
6,072 | 3,108 | ||||||
Deferred
compensation
|
3,102 | 2,858 | ||||||
Business
tax and AMT credit carryovers
|
4,891 | 1,936 | ||||||
Capital
loss carryover
|
1,627 | — | ||||||
Net
operating loss carryover
|
1,940 | — | ||||||
Goodwill
impairment
|
5,682 | — | ||||||
Other
|
2,265 | 789 | ||||||
Total
assets
|
26,674 | 8,967 | ||||||
Liabilities
|
||||||||
Depreciation
and amortization
|
(468 | ) | (951 | ) | ||||
FHLB
stock
|
(738 | ) | (510 | ) | ||||
State
income tax
|
(525 | ) | (199 | ) | ||||
Loan
fees
|
(184 | ) | (387 | ) | ||||
Investments
in limited partnerships
|
(1,649 | ) | (1,279 | ) | ||||
Mortgage
servicing rights
|
(1,152 | ) | (467 | ) | ||||
Total
liabilities
|
(4,716 | ) | (3,793 | ) | ||||
Valuation
Allowance
|
||||||||
Beginning
balance
|
— | — | ||||||
(Increase)
decrease during period
|
(720 | ) | — | |||||
Ending
balance
|
(720 | ) | — | |||||
Net
deferred tax asset
|
$ | 21,238 | $ | 5,174 |
Note
17:
|
Other
Comprehensive Income (Loss)
|
2008
|
||||||||||||
Before-Tax
Amount
|
Tax
Benefit
|
Net-of-Tax
Amount
|
||||||||||
Unrealized
losses on securities
|
||||||||||||
Unrealized
holding losses arising during the year
|
$ | (6,206 | ) | $ | 2,458 | $ | (3,748 | ) | ||||
Less:
reclassification adjustment for losses realized in net
income
|
(3,716 | ) | 1,472 | (2,244 | ) | |||||||
Net
unrealized losses
|
$ | (2,490 | ) | $ | 986 | $ | (1,504 | ) |
2007
|
||||||||||||
Before-Tax
Amount
|
Tax
Benefit
|
Net-of-Tax
Amount
|
||||||||||
Unrealized
losses on securities
|
||||||||||||
Unrealized
holding losses arising during the year
|
$ | (99 | ) | $ | 39 | $ | (60 | ) | ||||
Less:
reclassification adjustment for losses realized in net
income
|
— | — | — | |||||||||
Net
unrealized losses
|
$ | (99 | ) | $ | 39 | $ | (60 | ) |
2006
|
||||||||||||
Before-Tax
Amount
|
Tax
Expense
|
Net-of-Tax
Amount
|
||||||||||
Unrealized
gains on securities
|
||||||||||||
Unrealized
holding gains arising during the year
|
$ | 33 | $ | (13 | ) | $ | 20 | |||||
Less:
reclassification adjustment for losses realized in net
income
|
— | — | — | |||||||||
Net
unrealized gains
|
$ | 33 | $ | (13 | ) | $ | 20 |
2008
|
2007
|
2006
|
||||||||||
Net
unrealized loss on securities available
for sale
|
$ | 3,176 | $ | 686 | $ | 588 | ||||||
Net
loss relating to benefit liability
|
182 | — | — | |||||||||
3,358 | 686 | 587 | ||||||||||
Tax
effect (benefit)
|
(1,330 | ) | (272 | ) | (233 | ) | ||||||
Net
of tax amount
|
$ | 2,028 | $ | 414 | $ | 355 |
Note
18:
|
Commitments
and Contingent Liabilities
|
2008
|
2007
|
2006
|
||||||||||
Loan
commitments
|
$ | 164,922 | $ | 93,662 | $ | 82,146 | ||||||
Standby
letters of credit
|
7,065 | 4,160 | 6,492 |
Note
19:
|
Stockholders’
Equity
|
Note
20:
|
Capital
Purchase Program
|
Note
21:
|
Regulatory
Capital
|
Actual
|
Required for Adequate
Capital
|
To Be Well
Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As
of December 31, 2008
|
||||||||||||||||||||||||
Total
risk-based capital (to risk-weighted assets)
|
$ | 150,164 | 13.8 | % | $ | 87,091 | 8.0 | % | $ | 108,864 | 10.0 | % | ||||||||||||
Tier
1 risk-based capital (to risk-weighted assets)
|
136,556 | 12.5 | % | 43,546 | 4.0 | % | 65,318 | 6.0 | % | |||||||||||||||
Core
capital (to adjusted total assets)
|
136,556 | 9.9 | % | 55,393 | 4.0 | % | 69,242 | 5.0 | % | |||||||||||||||
Core
capital (to adjusted tangible assets)
|
136,556 | 9.9 | % | 27,697 | 2.0 | % | N/A | N/A | ||||||||||||||||
Tangible
capital (to adjusted total assets)
|
136,556 | 9.9 | % | 20,773 | 1.5 | % | N/A | N/A | ||||||||||||||||
As
of December 31, 2007
|
||||||||||||||||||||||||
Total
risk-based capital (to risk-weighted assets)
|
$ | 77,968 | 10.9 | % | $ | 57,236 | 8.0 | % | $ | 71,546 | 10.0 | % | ||||||||||||
Tier
1 risk-based capital (to risk-weighted assets)
|
70,440 | 9.9 | % | 28,618 | 4.0 | % | 42,927 | 6.0 | % | |||||||||||||||
Core
capital (to adjusted total assets)
|
70,440 | 7.5 | % | 37,785 | 4.0 | % | 47,231 | 5.0 | % | |||||||||||||||
Core
capital (to adjusted tangible assets)
|
70,440 | 7.5 | % | 18,892 | 2.0 | % | N/A | N/A | ||||||||||||||||
Tangible
capital (to adjusted total assets)
|
70,440 | 7.5 | % | 14,169 | 1.5 | % | N/A | N/A | ||||||||||||||||
Note
22:
|
Employee
Benefits
|
2008
|
2007
|
2006
|
||||||||||
Allocated
shares
|
256,089 | 207,274 | 186,637 | |||||||||
Suspense
shares
|
158,922 | 190,709 | 222,492 | |||||||||
Committed-to-be
released shares
|
31,783 | 31,783 | 31,783 |
2008
|
||||||||
Shares
|
Weighted-
Average
Grant-Date
Fair Value
|
|||||||
RRP,
beginning of year
|
9,834 | $ | 25.66 | |||||
Vested
|
4,917 | 25.66 | ||||||
RRP,
end of year
|
4,917 | $ | 25.66 |
Note
23:
|
Stock
Option Plan
|
2008
|
|||||||||||||
Options
|
Shares
|
Weighted-
Average
Exercise Price
|
Weighted-
Average
Remaining
Contractual Life
|
Aggregate
Intrinsic
Value
|
|||||||||
Outstanding,
beginning of year
|
385,613 | $ | 16.98 | ||||||||||
Exercised
|
— | 22.00 | |||||||||||
Issued
in acquisition
|
296,555 | 9.90 | |||||||||||
Forfeited/expired
|
(38,670 | ) | — | ||||||||||
Outstanding,
end of year
|
643,498 | $ | 13.99 |
5.7 years
|
$ | — | |||||||
Options
exercisable at year end
|
643,498 |
Note
24:
|
Stock
Repurchase Plan
|
Note
25:
|
Earnings
Per Share
|
2008
|
||||||||||||
Loss
|
Weighted-
Average
Shares
|
Per-Share
Amount
|
||||||||||
Basic
Earnings Per Share
|
||||||||||||
Net
loss
|
$ | (22,098 | ) | 5,249,135 | $ | (4.21 | ) | |||||
Dividends
and amortization on preferred stock
|
(31 | ) | ||||||||||
Income
available to common stockholders
|
(22,129 | ) | 5,249,135 | $ | (4.22 | ) | ||||||
Effect
of Dilutive Securities
|
||||||||||||
Stock
options
|
— | |||||||||||
Diluted
Earnings Per Share
|
||||||||||||
Income
(loss) available to common stockholders and assumed
conversions
|
$ | (22,129 | ) | 5,249,135 | $ | (4.22 | ) |
2007
|
||||||||||||
Income
|
Weighted-
Average
Shares
|
Per-Share
Amount
|
||||||||||
Basic
Earnings Per Share
|
||||||||||||
Income
available to common stockholders
|
$ | 4,226 | 4,103,940 | $ | 1.03 | |||||||
Effect
of Dilutive Securities
|
||||||||||||
Stock
options
|
47,233 | |||||||||||
Diluted
Earnings Per Share
|
||||||||||||
Income
available to common stockholders and assumed conversions
|
$ | 4,226 | 4,151,173 | $ | 1.02 |
2006
|
||||||||||||
Income
|
Weighted-
Average
Shares
|
Per-Share
Amount
|
||||||||||
Basic
Earnings Per Share
|
||||||||||||
Income
available to common stockholders
|
$ | 4,757 | 4,196,059 | $ | 1.13 | |||||||
Effect
of Dilutive Securities
|
||||||||||||
Stock
options
|
77,980 | |||||||||||
Diluted
Earnings Per Share
|
||||||||||||
Income
available to common stockholders and assumed conversions
|
$ | 4,757 | 4,274,039 | $ | 1.11 |
Note
26:
|
Fair
Values of Financial Instruments
|
Level 1
|
Quoted
prices in active markets for identical assets or
liabilities
|
Level 2
|
Observable
inputs other than Level 1 prices, such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other
inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or
liabilities
|
Level 3
|
Unobservable
inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or
liabilities
|
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Available-for-sale
securities
|
$ | 77,255 | $ | — | $ | 70,938 | $ | 6,317 |
Available-for-sale
securities
|
||||
Beginning
balance
|
$ | 9,923 | ||
Total
realized and unrealized gains and losses
|
||||
Included
in net income
|
(1,350 | ) | ||
Included
in other comprehensive income
|
(2,745 | ) | ||
Purchases,
issuances and settlements
|
(11 | ) | ||
Transfers
in and/or out of Level 3
|
500 | |||
Ending
balance
|
$ | 6,317 | ||
Total
gains or losses for the period included in net income attributable to the
change in unrealized gains or losses related to assets and liabilities
still held at the reporting date
|
$ | 1,350 |
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Impaired
loans
|
$ | 5,997 | $ | — | $ | — | $ | 5,997 | ||||||||
Mortgage
servicing rights
|
2,776 | — | — | 2,776 | ||||||||||||
Acquisition
|
||||||||||||||||
Loans
|
378,075 | — | — | 378,075 | ||||||||||||
Deposits
|
332,075 | — | — | 332,075 | ||||||||||||
Borrowings
|
97,361 | — | — | 97,361 |
2008
|
2007
|
|||||||||||||||
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
|||||||||||||
Assets
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 39,703 | $ | 39,703 | $ | 23,648 | $ | 23,648 | ||||||||
Interest-bearing
deposits
|
— | — | 100 | 100 | ||||||||||||
Securities
available for sale
|
77,255 | 77,255 | 43,592 | 43,592 | ||||||||||||
Securities
held to maturity
|
9,676 | 8,528 | — | — | ||||||||||||
Loans
held for sale
|
1,541 | 1,574 | 1,645 | 1,662 | ||||||||||||
Loans
|
1,113,132 | 1,144,394 | 802,436 | 808,387 | ||||||||||||
Stock
in FHLB
|
18,632 | 18,632 | 10,037 | 10,037 | ||||||||||||
Interest
receivable
|
5,205 | 5,205 | 3,693 | 3,693 | ||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
962,514 | 974,072 | 666,407 | 666,986 | ||||||||||||
FHLB
advances
|
263,113 | 273,853 | 191,675 | 194,854 | ||||||||||||
Other
borrowings
|
15,345 | 16,173 | 3,907 | 3,907 | ||||||||||||
Notes
payable
|
647 | 640 | 1,055 | 994 | ||||||||||||
Interest
payable
|
2,116 | 2,116 | 2,467 | 2,467 | ||||||||||||
Advances
by borrowers for taxes and insurance
|
3,229 | 3,229 | 1,464 | 1,464 | ||||||||||||
Off-balance
sheet commitments
|
— | — | — | — |
Note
27:
|
Condensed
Financial Information (Parent Company
Only)
|
Condensed Balance Sheets
|
||||||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Cash
on deposit with Bank
|
$ | 2,896 | $ | 25 | ||||
Cash
on deposit with others
|
— | 26 | ||||||
Total
cash
|
2,896 | 51 | ||||||
Investment
in common stock of Bank
|
142,417 | 86,507 | ||||||
Investment
in affiliate
|
— | 800 | ||||||
Deferred
and current income tax
|
669 | 143 | ||||||
Other
assets
|
40 | 9 | ||||||
Total
assets
|
$ | 146,022 | $ | 87,510 | ||||
Liabilities
|
||||||||
Other
borrowings
|
$ | 15,345 | $ | 496 | ||||
Other
liabilities
|
162 | — | ||||||
Total
liabilities
|
15,507 | 496 | ||||||
Stockholders'
Equity
|
130,515 | 87,014 | ||||||
Total
liabilities and stockholders' equity
|
$ | 146,022 | $ | 87,510 |
Condensed Statements of Operations
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Income
|
||||||||||||
Interest
income from Bank
|
$ | 10 | $ | 29 | $ | 111 | ||||||
Dividends
from Bank
|
3,000 | 2,200 | — | |||||||||
Other
income
|
— | 56 | 317 | |||||||||
Total
income
|
3,010 | 2,285 | 428 | |||||||||
Expenses
|
1,221 | 383 | 368 | |||||||||
Income
before income tax and equity in undistributed income of the
Bank
|
1,789 | 1,902 | 60 | |||||||||
Income
tax benefit
|
(412 | ) | (118 | ) | (8 | ) | ||||||
Income
before equity in undistributed income (distributions in excess of income)
of the Bank
|
2,201 | 2,020 | 68 | |||||||||
Equity
in undistributed income (distributions in excess of income) of the
Bank
|
(24,299 | ) | 2,206 | 4,689 | ||||||||
Net
income (loss)
|
$ | (22,098 | ) | $ | 4,226 | $ | 4,757 |
Condensed Statements of Cash Flows
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Operating
Activities
|
||||||||||||
Net
income (loss)
|
$ | (22,098 | ) | $ | 4,226 | $ | 4,757 | |||||
Item
not requiring cash
|
||||||||||||
ESOP
shares earned
|
343 | 583 | 665 | |||||||||
Deferred
income tax benefit
|
(251 | ) | — | 26 | ||||||||
Distributions
in excess of income (equity in undistributed income) of the
Bank
|
24,299 | (2,206 | ) | (4,689 | ) | |||||||
Other
|
(13 | ) | 620 | (345 | ) | |||||||
Net
cash provided by operating activities
|
2,280 | 3,223 | 414 | |||||||||
Investing
Activities
|
||||||||||||
Proceeds
from sale of investment
|
431 | — | — | |||||||||
Loss
on sale of investment
|
329 | — | — | |||||||||
Investment
in bank
|
(29,144 | ) | — | — | ||||||||
Cash
paid in acquisition, net
|
(9,115 | ) | — | — | ||||||||
Maturity
of certificate of deposit
|
— | 100 | — | |||||||||
Net
cash provided by (used in) investing activities
|
(37,499 | ) | 100 | — | ||||||||
Financing
Activities
|
||||||||||||
Repayment
of other borrowings
|
(496 | ) | — | — | ||||||||
Proceeds
from issuance of long-term debt
|
11,500 | — | — | |||||||||
Proceeds
from issuance of preferred stock
|
32,382 | — | — | |||||||||
Stock
repurchased
|
(1,811 | ) | (2,793 | ) | (4,935 | ) | ||||||
Cash
dividends
|
(3,490 | ) | (2,440 | ) | (2,360 | ) | ||||||
Proceeds
from stock options exercised
|
— | 209 | 687 | |||||||||
Tax
benefit on stock options and RRP shares
|
(21 | ) | 3 | 45 | ||||||||
Net
cash provided by (used in) financing activities
|
38,064 | (5,021 | ) | (6,563 | ) | |||||||
Net
Change in Cash
|
2,845 | (1,698 | ) | (6,149 | ) | |||||||
Cash,
Beginning of Year
|
51 | 1,749 | 7,898 | |||||||||
Cash,
End of Year
|
$ | 2,896 | $ | 51 | $ | 1,749 |
Note
28:
|
Quarterly
Results of Operations (Unaudited)
|
Quarter
Ended
|
Interest
Income
|
Interest
Expense
|
Net
Interest
Income
|
Provision
for
Loan
Losses
|
Net
Income
(Loss)
|
Basic
Earnings
Per
Common
Share
|
Diluted
Earnings
Per
Common
Share
|
|||||||||||||||||||||
2008
|
||||||||||||||||||||||||||||
March
|
$ | 13,757 | $ | 7,397 | $ | 6,360 | $ | 612 | $ | 1,215 | $ | 0.30 | $ | 0.30 | ||||||||||||||
June
|
13,489 | 6,689 | 6,800 | 733 | 1,175 | 0.30 | 0.30 | |||||||||||||||||||||
September
|
18,825 | 8,989 | 9,836 | 913 | 359 | 0.06 | 0.06 | |||||||||||||||||||||
December
|
19,108 | 8,564 | 10,544 | 4,762 | (24,847 | ) | (3.65 | ) | (3.65 | ) | ||||||||||||||||||
Total
|
$ | 65,179 | $ | 31,639 | $ | 33,540 | $ | 7,020 | $ | (22,098 | ) | (4.22 | ) | (4.22 | ) | |||||||||||||
2007
|
||||||||||||||||||||||||||||
March
|
$ | 13,809 | $ | 7,814 | $ | 5,995 | $ | 332 | $ | 1,044 | $ | 0.25 | $ | 0.25 | ||||||||||||||
June
|
14,056 | 7,941 | 6,115 | 533 | 1,129 | 0.27 | 0.27 | |||||||||||||||||||||
September
|
14,128 | 8,277 | 5,851 | 532 | 1,161 | 0.28 | 0.28 | |||||||||||||||||||||
December
|
14,380 | 8,195 | 6,185 | 843 | 892 | 0.22 | 0.22 | |||||||||||||||||||||
Total
|
$ | 56,373 | $ | 32,227 | $ | 24,146 | $ | 2,240 | $ | 4,226 | 1.03 | 1.02 |
Note
29:
|
Federal
Deposit Insurance Corporation (FDIC) Special
Assessment
|
Item
9.
|
Changes
In and Disagreements With Accountants on Accounting and Financial
Disclosure.
|
Item
9A.
|
Controls
and Procedures.
|
Date:
March 23, 2009
|
By:
|
/s/ David W.
Heeter
|
David
W. Heeter
|
||
President
and Chief Executive Officer
|
||
By:
|
/s/ Timothy J.
McArdle
|
|
Timothy
J. McArdle
|
||
Treasurer
and Chief Financial
Officer
|
Item
9B.
|
Other
Information
|
Item
10.
|
Directors,
Executive Officers and Corporate
Governance
|
Item
11.
|
Executive
Compensation
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
Plan Category
|
Number of securities to
be issued upon exercise
of outstanding options
warrants and rights
|
Weighted-average
exercise price of
outstanding options
warrants and rights
|
Number of securities
remaining available for
future issuance under
equity compensation plans
|
|||||||||
Equity
compensation plans approved by security holders
|
643,498 | $ | 13.99 | 357,902 |
(1)
|
|||||||
Equity
compensation plans not approved by security holders
|
— | — | — |
Item
13.
|
Certain
Relationships and Related
Transactions
|
Item
14.
|
Principal
Accountant Fees and Services
|
Item
15.
|
Exhibits
and Financial Statement Schedules
|
Annual
Report Section
|
Report
of Independent Registered Public Accounting Firm
|
Consolidated
Balance Sheets at December 31, 2008 and 2007
|
Consolidated
Statements of Operations
for the Years Ended December 31, 2008, 2007 and 2006
|
Consolidated
Statements of Stockholders’ Equity for the Years Ended December 31,
2008,
2007 and 2006
|
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2008, 2007
and 2006
|
Notes
to Consolidated Financial Statements, December 31, 2008, 2007 and
2006
|
Regulation
S-K
Exhibit
Number
|
Document
|
Reference to
Prior Filing
or
Exhibit
Number
Attached
Hereto
|
||
2.1
|
Agreement
and Plan of Merger, dated as of January 7, 2008, by and among MutualFirst
Financial, Inc., MutualFirst
Acquisition Corp. and MFB Corp.
|
#
|
||
3.1
|
Articles
of Incorporation
|
*
|
||
3.2
|
Articles
Supplementary for the Series A Preferred Stock
|
+
|
||
3.3
|
Amended
Bylaws
|
###
|
||
4.1
|
Form
of Common Stock Certificate
|
*
|
||
4.2
|
Form
of Certificate for the Series A Preferred Stock
|
4.2
|
||
4.3
|
Warrant
for Purchase of Shares of Common Stock
|
*
|
||
9
|
Voting
Trust Agreement
|
None
|
||
10.1
|
Employment
Agreement with David W. Heeter
|
+++
|
||
10.2
|
Employment
Agreement with Patrick C. Botts
|
+++
|
||
10.3
|
Employment
Agreement with Timothy J. McArdle
|
**
|
||
10.4
|
Form
of Supplemental Retirement Plan Income Agreements for Steven
|
**
|
||
10.5
|
Campbell,
Patrick C. Botts, David W. Heeter, Timothy J. McArdle and Stephen C. Selby
|
|||
10.6
|
Form
of Director Shareholder Benefit Program Agreement, as amended, for Jerry
D. McVicker
|
++
|
||
10.7
|
Form of Agreements for Executive Deferred Compensation Plan for
Patrick C. Botts, Steven Campbell, David W. Heeter
Timothy J. McArdle and
Stephen C. Selby
|
**
|
||
10.8
|
Registrant’s
2001 Stock Option and Incentive Plan
|
***
|
||
10.9
|
Registrant’s
2001 Recognition and Retention Plan
|
***
|
||
10.10
|
Named
Executive Officer Bonus Arrangements for 2009
|
10.10
|
||
10.11
|
Director
Fee Arrangements for 2009
|
10.11
|
||
10.12
|
Director
Deferred Compensation Plan
|
##
|
||
10.13
|
MutualFirst
Financial, Inc. 2008 Stock Option and Incentive
Plan
|
10.13
|
||
10.14
|
MFB
Corp. 2002 Stock Option Plan
|
10.14
|
||
10.15
|
MFB
Corp. 1997 Stock Option Plan
|
10.15
|
||
10.16
|
Employment
Agreement with Charles J. Viater
|
10.16
|
||
10.17
|
Salary
Continuation Agreement with Charles J. Viater
|
10.17
|
||
10.18
|
Letter
Agreement (including Schedule A, Securities Purchase Agreement, dated
December 23, 2008 between MutualFirst
Financial, Inc. and United States Department of the Treasury with respect
to the issuance and sale of the Series A Preferred Stock and
Warrant
|
+
|
Regulation
S-K
Exhibit
Number
|
Document
|
Reference to
Prior Filing or
Exhibit Number
Attached
Hereto
|
||
10.19
|
Form
of compensation modification
|
+
|
||
11
|
Statement
re computation of per share earnings
|
None
|
||
12
|
Statements
re computation of ratios
|
None
|
||
14
|
Code
of Ethics
|
+++
|
||
16
|
Letter
re change in certifying accountant
|
None
|
||
18
|
Letter
re change in accounting principles
|
None
|
||
21
|
Subsidiaries
of the registrant
|
21
|
||
22
|
Published
report regarding matters submitted to vote of security
holders
|
None
|
||
23
|
Consents
of Experts and Counsel
|
23
|
||
24
|
Power
of Attorney
|
None
|
||
31.1
|
Rule
13(a)-14(a) Certification (Chief Executive Officer)
|
31.1
|
||
31.2
|
Rule
13(a)-14(a) Certification (Chief Financial Officer)
|
31.2
|
||
32
|
Section
1350 Certification
|
32
|
#
|
Filed
as an exhibit to the Company’s Form 8-K filed on January 8, 2008 (File No.
000-27905). Such previously filed document is incorporated
herein by reference in accordance with Item 601 of Regulation
S-K.
|
*
|
Filed
as an exhibit to the Company’s Form S-1 registration statement filed on
September 16, 1999 (File No. 333-87239) pursuant to Section 5 of the
Securities Act of 1933. Such previously filed document is
incorporated herein by reference in accordance with Item 601 of Regulation
S-K.
|
**
|
Filed
as an exhibit to the Company’s Annual Report on Form 10-K filed on March
30, 2001 (File No. 000-27905). Such previously filed document
is incorporated herein by reference in accordance with Item 601 of
Regulation S-K.
|
***
|
Filed
as an Appendix to the Company’s Form S-4/A Registration Statement filed on
October 19, 2001 (File No. 333-46510). Such previously filed
document is incorporated herein by reference in accordance with Item 601
of Regulation S-K.
|
++
|
Filed
as an exhibit to the Company’s Annual Report on Form 10-K filed on April
2, 2002 (File No. 000-27905). Such previously filed document is
incorporated herein by reference in accordance with Item 601 of Regulation
S-K.
|
+++
|
Filed
as an exhibit to the Company’s Annual Report on Form 10-K filed on March
15, 2005 (File No. 000-27905). Such previously filed document
is incorporated herein by reference in accordance with Item 601 of
Regulation S-K.
|
##
|
Filed
as an exhibit to the Company’s Annual Report on Form 10-K filed on March
16, 2007 (File No. 000-27905). Such previously filed document
is incorporated herein by reference in accordance with Item 601 of
Regulation S-K.
|
+
|
Filed
as an exhibit to the Company’s Form 8-K filed on December 23, 2008 (File
No. 000-27905). Such previously filed document is incorporated
herein by reference in accordance with Item 601 of Regulation
S-K.
|
###
|
Filed
as an exhibit to the Company’s Form 8-K filed on October15, 2007 (File No.
000-27905). Such previously filed document is incorporated
herein by reference in accordance with Item 601 of Regulation
S-K.
|
####
|
Filed
as an Appendix to the Company’s Form S-4 Registration Statement filed on
April 8, 2008 (File No. 333-150138). Such previously filed
document is incorporated herein by reference in accordance with Item 601
of Regulation S-K.
|
MutualFirst Financial,
Inc.
|
|||
Date: March
23, 2009
|
By:
|
/s/ David W.
Heeter
|
|
David
W. Heeter, President and Chief Executive Officer
|
|||
Duly
Authorized Representative)
|
/s/ David W.
Heeter
|
/s/ Wilbur R.
Davis
|
|
David
W. Heeter, President and Director
|
Wilbur
R. Davis, Chairman of the Board
|
|
(Principal
Executive Officer)
|
||
Date: March
23, 2009
|
Date: March
23, 2009
|
|
/s/ Patrick C.
Botts
|
/s/ Edward J.
Dobrow
|
|
Patrick
C. Botts, Director
|
Edward
J. Dobrow, Director
|
|
Date: March
23, 2009
|
Date: March
23, 2009
|
|
/s/ Linn A.
Crull
|
/s/ James D.
Rosema
|
|
Linn
A. Crull, Director
|
James
D. Rosema, Director
|
|
Date: March
23, 2009
|
Date: March
23, 2009
|
|
/s/ William V.
Hughes
|
/s/ Jerry D.
McVicker
|
|
William
V. Hughes, Director
|
Jerry
D. McVicker, Director
|
|
Date:
March 23, 2009
|
Date: March
23, 2009
|
|
/s/ Jon R.
Marler
|
/s/ Jonathan E. Kintner,
O.D.
|
|
Jon
R. Marler, Director
|
Jonathan
E. Kintner, O.D.,
Director
|
|
Date: March
23, 2009
|
Date: March
23, 2009
|
|
/s/ Edward C. Levy
|
/s/ Michael J. Marien
|
|
Edward
C. Levy,
Director
|
Michael
J. Marien,
Director
|
|
Date: March
23, 2009
|
Date: March
23, 2009
|
|
/s/ Charles J. Viater
|
/s/ Timothy J. McArdle
|
|
Charles
J. Viater,
Director
|
Timothy
J. McArdle, Senior Vice President
|
|
Treasurer
and Controller
|
||
(Principal
Financial and Accounting Officer)
|
||
Date: March
23, 2009
|
Date: March
23,
2009
|
Number
|
Description
|
4.2
|
Form
of Certificate for the Series A Preferred Stock
|
10.10
|
Named
Executive Officer Bonus Arrangements for 2009
|
10.11
|
Director
Fee Arrangements for 2009
|
10.13
|
MutualFirst Financial,
Inc. 2008 Stock Option and Incentive Plan
|
10.14
|
MFB
Corp. 2002 Stock Option Plan
|
10.15
|
MFB
Corp. 1997 Stock Option Plan
|
10.16
|
Employment
Agreement with Charles J. Viater
|
10.17
|
Salary
Continuation Agreement with Charles J. Viater
|
21
|
Subsidiaries
of the Registrant
|
23
|
Consent
of Accountants
|
31.1
|
Rule
13(a)-14(a) Certification (Chief Executive Officer)
|
31.2
|
Rule
13(a)-14(a) Certification (Chief Financial Officer)
|
32
|
Section
1350
Certification
|